Last week, the price of bitcoin overtook gold for the first time ever, but the cryptocurrency hasn’t stopped there.
The currency has risen further today – it was up $1,284.24 in afternoon trading.
Alan Davies, consultant at Altus, said he believes bitcoin will edge towards £3,000 by the end of the year.
“As more and more trade is taken up using bitcoin as the transaction medium, the then value of bitcoin rises to equal that trade.
“The normal way to stop this from having inflationary impact is for governments to control supply. However, governments cannot control the supply of bitcoin. Therefore, a continuous increase in the value of bitcoin is predicted,” Davies said, citing research by the World Economic Forum (WEF).
Davies last year predicted bitcoin would top the price of gold.
The cryptocurrency has already had a tumultuous year in 2017 as fears the Chinese government was moving to outlaw it dampened investor interest.
But now the currency’s price is growing rapidly as investors speculate over whether the US Securities and Exchange Commission (SEC) will approve one of three bitcoin-focused exchange-traded funds (ETFs).
The deadline for the decision is set for 11 March.