Bitcoin surged past $30,000-mark on Saturday as the ongoing rally in the digital currency's value continued in the new year. After crossing the new record high, Bitcoin almost touched $31,000 during the day, before settling down around $30,800.
The most popular cryptocurrency had dipped more than 25 per cent in March amid the coronavirus condition. Since then, Bitcoin has staged a marvelous recovery, rising to record highs during the latter end of 2020. In December, Bitcoin surged 50 per cent, breaching $20,000 for the first time.
Bitcoin has seen an unprecedented rise this year, with its value witnessing a 240 per cent jump in 2020, giving investors better returns than other traditional mainstream investment platforms.
The main reason behind the rise of Bitcoin may be bulk buying by big US investors. They expect to make quick gains amid some positive developments around the cryptocurrency, including speculations that it could become a mainstream payment method.
A major jump in Bitcoin price - from $5,000 to $25,000 - was seen after online payment major PayPal announced in March that it'll enable its account holders to use Bitcoin. This marks a colossal 400 per cent increase in the past eight months. ZebPay, one of India's largest cryptocurrency exchanges, has predicted that Bitcoin's value could hit over $135,000 by 2030.
As Bitcoin grows in popularity, Indian government is planning to impose 18 per cent GST on its transactions. The Central Economic Intelligence Bureau (CEIB), an arm of Finance Ministry, has put forward a proposal to impose 18 per cent GST, saying it could potentially gain Rs 7,200 crore annually on bitcoin trading. The CEIB came to the conclusion based on a study on levying GST on cryptocurrencies.
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