The cryptocurrency fell as much as 8 percent on Thursday on the Luxembourg-based Bitstamp exchange to hit $9,000 exactly, marking a fall of well over $2,000 in under 24 hours.

Bitcoin blasted past $11,000 to hit a record high for the sixth day in a row on Wednesday after gaining more than $1,000 in just 12 hours, stoking concerns that a rapidly swelling bubble could be set to burst in spectacular fashion.

Bitcoin which is the first cryptocurrency to hit the market was launched in the year 2009. It was invented by a person or group using the alias Satoshi Nakamoto, after which the US Treasury has categorized it as a decentralized cryptocurrency.

Bitcoin, the oldest and the largest circulated currency, was launched after the subprime mortgage crisis in 2008. To bail out their financial institutions, governments of developed countries printed their currencies in billions.

Bengaluru-based bitcoin exchange Unocoin on Thursday announced India's largest Bitcoin partnership with Blockchain, the software platform behind the digital currency.

The circulation of VCs has been a cause of concern among central bankers the world over for quite a while now. Reserve Bank of India had also cautioned the users, holders and traders of VCs, including bitcoins.

The cryptocurrency industry, markets and investors are anticipating the event of a 'flippening' when a competing blockchain network replaces the current largest blockchain or Ethereum surpassing the market of Bitcoin.

Even as economies like Japan and Russia move to legalize the use of Bitcoins, India, despite being at the cusp of a digital revolution is yet to officially recognize the cryptocurrency.

It is called ether and it is a cryptocurrency just like the very popular Bitcoin.

Banks and other financial institutions are increasingly investing in blockchain technology as it cuts their costs and make their operations faster and more transparent.

Cryptocurrencies banned, RBI's July 5 deadline now in place