SPRINGFIELD, Mass. (WWLP) – Bitcoin, a worldwide cryptocurrency, has surged to a record high on Monday.
Bitcoin is a digital currency that was once called the future of money. It was created less than a decade ago, and is used to buy merchandise anonymously.
Many people buy bitcoin, in hopes the value will go up, which is exactly what happened on Monday.
The cryptocurrency jumped to an all time high of more than $9600 dollars. Over the past year alone, the digital currency has risen 869 percent.
“It has gone up dramatically based on this theory that this thing is going to evolve to some alternative currency to the US dollar,” said Mark Teed, of Raymond James Financial. “I don’t see that unless the federal government figures out a way to back it, because there’s no backing right now.”
Bitcoins are stored in a digital wallet, which acts like a virtual bank account. Since bitcoin isn’t backed by the government, it’s value is determined by what other people will pay for it.
Teed told 22News despite bitcoin’s success, he still tells clients it’s a speculation, and anyone who buys it should be careful.