Proponents of Bitcoin argue that it’s muscling in on gold as a hedge against US dollar weakness and inflation risk, citing evidence of growing interest among institutional investors. Skeptics view the digital asset’s more than 300% surge over the past year as a risky bubble fueled by investors chasing the momentum in cryptocurrency prices.
The digital currency Ether reached a record on Monday a day after Bitcoin breached US$34,000 ($44,818.80) for the first time as the surge in cryptocurrencies continues.
Ether touched a high of about US$1,010, its first foray past US$1,000, following a 30% surge on Sunday. Bitcoin held onto most of its weekend gains, dipping about 1.5% as of 10:40 a.m. on Monday in Tokyo to US$33,069. The largest cryptocurrency eclipsed its 2017 record late last year and only hit US$20,000 for the first time in the middle of December.
