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| Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. REUTERS-Yonhap |
The price of digital currency Bitcoin hit a 2020 high Monday, peaking at over $19,800 per digital coin, after dropping below $17,000 on Friday.
The price of the crypto token has been rallying for several weeks, increasing by more than 170% in value in this year.
"Our thesis is that Bitcoin is gold 2.0, that it will disrupt gold," Tyler Winklevoss, co-founder of crypto exchange Gemini, told CNBC Monday. Winklevoss said he believes that Bitcoin could rise to $500,00 per digital coin.
"At $18,000 Bitcoin, it's a hold or at least if you don't have any it's a buy opportunity, because we think there's a 25x from here," Winklevoss added.
The digital currency hit an all-time peak of $19,864.15, breaking its prior record set in December, 2017.
Three years ago, the cryptocurrency shot up in value approaching $20,000 per digital coin before dropping to less than $4,000 over the next year.
Since the U.S. presidential election, enthusiasm and the willingness of online payment systems such as PayPal, Square and Facebook to venture into cyber currencies have given Bitcoin a new lift, analysts said.
But billionaire hedge fund investor Ray Dalio said earlier this month that he still saw problems with Bitcoin, including the fact that the cyber coin is "too volatile for most merchants to use," and that the coins were "not very good as a store-hold of wealth ... so owning it doesn't protect my buying power." Nevertheless, Dalio said he "might be missing something" about the cryptocurrency.
The digital currency has risen and crashed multiple times since its introduction in 2008, when "coins," a virtual token with records maintained in a permanent blockchain ledger, cost about $10 each. (UPI)
