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Why is the price of Bitcoin at an all-time high? And how is its worth calculated?

Bitcoin is still trading near its all-time high, which it reached earlier this month. Its current price is around US $34,000, up about 77 percent in the last month and 305 percent in the last year. Bitcoin, which was first introduced as a digital currency in 2009, was initially used as a form of digital money on the outskirts of the economy. 

It has since gained popularity. Today, it is almost entirely used as a form of "digital gold”. However, increasing the supply of money devalues it, causing people to seek out inflation-resistant assets to invest in. In this environment, Bitcoin has evolved into a hedge against impending inflation and low returns on other types of assets.

 

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