One man’s pizza bought with eight bitcoins in 2011 was worth a few cents back then.
Now, that very little amount of virtual currency is equal to approximately $480,000. But that is just how much Bitcoin has skyrocketed, hitting an all-time high of $60,000 on Saturday.
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The surge is mainly driven by a growing number of institutional companies embracing the virtual currency.
It is also thought to be driven by the approval of President Joe Biden’s $1.9 trillion stimulus package in the United States.
It is feared the pandemic relief bill will push inflation higher and the digital currency is seen as a good hedge against that.
But critics warn cryptocurrencies are a bubble that is on track to burst. The money asset has a record of price swings, falling sharply several times.
So, could it one day become a real currency and tool of payment?
Presenter: Peter Dobbie
Guests:
John Biggs – editor of Gizmodo, a technology website
Glen Goodman – financial investor and author of The Crypto Trader
Gavin Brown – senior lecturer in financial technology at the University of Liverpool