Bitcoin tops $10k, marks 10-fold rise in 2017

The value of the cryptocurrency known as bitcoin has soared to an all-time high of above $10,000 on major exchanges and digital currency indexes, including the widely followed Luxembourg-based trading platform BitStamp.

In the early hours of Wednesday, it was quoted around $10,115 on BitStamp, coming sharply off a high of $10,743.61, which was a rise of more than 5 percent on the day, Reuters reported.

Created in 2009, bitcoin uses encryption and a blockchain database that enables the fast and anonymous transfer of funds outside of a traditional centralized payment system.

It has increased more than 10-fold in value so far this year, posting the largest gain of all asset classes, amid increased institutional demand for crypto-currencies as financial and mainstream use has expanded, the report added.

The surge in its value comes in face of uncertainties about its legal standing, its identity, as well as skepticism from such financial heavyweights as J.P. Morgan CEO Jamie Dimon, who famously called bitcoin a “fraud.”

Bitcoin crossed $10,000 on smaller exchanges such as the CEX.IO exchange, and the crypto-currency index coinmarketcap.com long before it hit the milestone on BitStamp.

In some emerging markets, bitcoin had hit well over $10,000 previously. In Zimbabwe, bitcoin traded at $17,875 on Monday. Tuesday's price in Zimbabwe was not available.

In South Korean exchanges, bitcoin was already close to $11,000 or higher early this week.

It traded at nearly $12,000 on Tuesday on bithumb after hitting the $10,000 milestone on Monday. At Coinone, it traded at near $12,700, and it was up 10 percent in 24 hours at $12,792 on Korbit, Reuters concluded.

While Bitcoin’s rise this year has often been triggered by specific events, such as the Chicago Merchantile Exchange announcing plans to offer bitcoin futures, the crossing of the $10,000 mark appears to come from investors fearing that they’ll miss the boat, according to a report by Fortune.com.

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