Bitcoin, the leading cryptocurrency, made a quantum leap as its price crossed $30,000 for the first time on Saturday.  The first decentralised cryptocurrency surpassed $30,823.30 at 1313 GMT,
according to data compiled by the Bloomberg news agency, having broken its
record of $20,000 on December 16.

Analyst Timo Emden noted that “the appetite for risk”, which
is reflected in buying of bitcoin, “remains unshakeable”.

In its 12 years, bitcoin witnessed a meteoric rise since March, when
it stood at $5,000, spurred by online payments giant PayPal saying it would
enable account holders to use cryptocurrency.

After PayPal’s announcement in October, analysts at investment banking
giant JPMorgan Chase compared the cryptocurrency to gold.

“Bitcoin could compete more intensely with gold as an ‘alternative’
currency over the coming years given that millennials will become over time a
more important component of investors’ universe,” they said.

Also Read | Man dupes people in 2.5 crore Bitcoin fraud, arrested

In view of the rise of use of cryptocurrencies and the dwindling use of
cash, many central banks all across the globe have announced plans for bank-backed
digital units.

Several central banks including those of China and Sweden — but also
the US Federal Reserve — are also testing digital applications in response to
Facebook’s recent moves to produce its own digital unit, Libra.

Unregulated by any central bank, bitcoin emerged as an attractive option
for investors with an appetite for the exotic — although criminals have also
picked up on its under-the-radar appeal.