Bitcoin prices today leapt by five per cent, breaking records for the overall value of the digital currency in existence and taking its price to the highest level for three years.
Around 12.5 new Bitcoins come into circulation every 10 minutes. And this meant today the today market capitalisation of bitcoins broke through the $14bn barrier – equivalent to the average market cap of a FTSE 100 company.
One bitcoin traded for $875 on the Europe-based Bitstamp exchange, the strongest since January 2014. After starting the year at $435, the price of the currency has more than doubled during his year alone.
Because the majority of Bitcoin trading takes place in China, there is an inverse relationship between the value of the crytocurrency and the Chinese yuan – it has fallen by nearly seven per cent over the year.
Despite a surge during the year, prices are still well off late 2013 peaks $1,163. But despite prices remaining below all time highs the amount in existence broke records as increasing volumes of bitcoins are added to the system.