The virtual currency Bitcoin is at a record level of $9,700 after jumping 4.5 per cent so far on Monday.
The movement takes 20% above the level it stood at on Friday, according to the Luxembourg Bitcoin exchange, Bitstamp.
He started the year at around$1,000.
Virtual currencies are largely unregulated and of circumventing the traditional banking systems. Their growth is of increasing concern to the international regulatory agencies.
China and South Korea have banned any new virtual currency and the launches have been the closing of the exchanges on which they are traded.
JP Morgan Chase ceo, Jamie Dimon, has described Bitcoin in a recent conference as a “fraud”.
“It is simply not a real thing, eventually, it will be closed,” he said.
Currencies such as Bitcoin use blockchain, which is in line book of transactions maintained by a network of anonymous computers on the internet.
They are not backed by any government or central bank and, therefore, there is not a single person in charge of the safeguard of their value.
The european Central Bank policymaker Ewald Nowotny told Reuters news agency that Bitcoin “could easily jump, and the central bank could then be accused of doing nothing.
“So we’re trying to understand if the activity of the bank in relation to the crypto-currency trading needs to be better regulated.”
Analysis, Rory Cellan-Jones, technology correspondent:
This has felt like the last, the most insane speculative bubble, a tulip fever of the hi-tech of the time.
On his helter skelter ride in the direction of$ 10,000, there have been many occasions where Bitcoin seemed in trouble – divisions within the community on how it should be governed, flights to the trade, warnings from regulatory authorities.
But each time the experts have been warning the bubble was about to burst, the currency has stuttered for a few days and then went to higher load.
Read the rest of Rory, here:
Some banks are looking at whether the blockchain technology that underlies cryptocurrencies could be useful for them as the world moves away from cash transactions.
The world’s leading derivatives exchange, the CME, has recently said it planned to offer the trading of Bitcoin futures in the near future, even if it has not yet set a date.
The potential involvement of the CME has pushed the price of Bitcoin higher.
Jameel Ahmad, Cyprus online foreign exchange broker, FXTM, said: “This increase appears to have been triggered by the hope of the CME move will bring an investment of hedge funds and other large investors, and move Bitcoin into the mainstream.”
Bitcoin is particularly sensitive to the rumor. Mr. Ahmad said that there is also the issue that Amazon is planning to accept Bitcoins as means of payment.
There is also concern that the Bitcoin could be vulnerable to hackers.
Mr. Ahmad said that recently, he has lost almost 20% in value on fears that it was hacked.