How high will Bitcoin go?

One man’s pizza bought with eight bitcoins in 2011 was worth a few cents back then.

Now, that very little amount of virtual currency is equal to approximately $480,000. But that is just how much Bitcoin has skyrocketed, hitting an all-time high of $60,000 on Saturday.

The surge is mainly driven by a growing number of institutional companies embracing the virtual currency.

It is also thought to be driven by the approval of President Joe Biden’s $1.9 trillion stimulus package in the United States.

It is feared the pandemic relief bill will push inflation higher and the digital currency is seen as a good hedge against that.

But critics warn cryptocurrencies are a bubble that is on track to burst. The money asset has a record of price swings, falling sharply several times.

So, could it one day become a real currency and tool of payment?

Presenter: Peter Dobbie

Guests:

John Biggs – editor of Gizmodo, a technology website

Glen Goodman – financial investor and author of The Crypto Trader

Gavin Brown – senior lecturer in financial technology at the University of Liverpool