Bitcoin crosses $4,000 in value even after its split off into a new virtual currency 'Bitcoin Cash'

In an astounding record-setting feat, global cryptocurrency and digital payment system Bitcoin has crossed the $4,000-threshold in value terms, a media report said.

Representational image. Reuters

Representational image. Reuters

The cryptocurrency, which has been in existence for only seven years, reached a new high of $4,224 (approximately Rs 270,642) to a Bitcoin on Sunday, CNET reported.

Bitcoin passed the $3,000-mark for the first time at the start of this month that also marked the split off of a new virtual currency called 'Bitcoin Cash' from Bitcoin proper effective 1 August.

The split was designed to deal with the growing popularity of Bitcoin, which was struggling to support an increasing number of transactions using existing blockchain technology, the report said.

PHD Chamber of Commerce and Industry President Gopal Jiwarajka, in a bid to boost digital economy, said Bitcoins can act as a potential transaction and payment mechanism for businesses.

However, Bitcoins are fraught with risks in the absence of proper monitoring and regulatory framework for the currency.

"Absence of the information about counterparties in the bitcoins transaction is a major drawback and may lead to unintentional transactions such as money laundering," Jiwarajka warned.

Updated Date: Aug 14, 2017 19:00 PM