Bitcoin's value has skyrocketed, jumping to a record-high $1,442.58 Tuesday, an all-time high for the electronic payment system.
The latest rise is credited to strong demand in Japan, where "50 percent of trading volume over the past 24 hours had been on the bitcoin/Japanese yen exchange rate," according to Reuters.
"The Japanese have recently warmed their approach towards bitcoin by treating it legally as a form of payment — a ratification and bringing into the regulatory fold," said Charles Hayter, the founder of Cryptocompare, a data website that tracks bitcoins' global trading activity, Reuters reported.
"The biggest driver right now is you're starting to see institutional investors take a keen interest in the entire sector," said Brian Kelly, founder of Brian Kelly Capital, according to CNBC.
Co-founder and president of Blockchain.info Nicolas Cary told Cointelegraph that Bitcoin has made major strides in the past year, which is what brought it to record highs.
"Over the past 12 months alone, Bitcoin has matured out of the volatility that has defined the currency to date," Cary said. "It has become a viable investment asset and we've started to see meaningful adaption on a personal level.”
David Motta, an investor and CEO of ACQUIRE Business Solutions, says governments will have to eventually get on board with digital currency as a way of making transactions, citing its evolution and success.
"What governments have to lose is the complete control of money," he told Cointelegraph. "I believe that just like the masses will eventually be forced to adapt to cryptocurrency, governments will also be forced to adapt and accept cryptocurrency as the next evolution."
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