Bitcoin is now worth five times more than an ounce of gold, according to Coindesk an JM Bullion at 2pm GMT.
The cryptocurrency reached a new high on Wednesday when it peaked at at a record price of $6,629 (£4,988.99), as of 4.52pm GMT.
The user base of bitcoin has also seen incredible leaps in the last year, based on data collected by investor and entrepreneur Alistair Milne, who estimated nearly 12 million bitcoin owners in November 2017.
Mr Milne’s data further demonstrated the growing popularity of cryptocurrencies, with over 37.9 wallets in existence – this means that the average user could be owning at least three different tokens.
Why is bitcoin on the rise?
Jordan Hiscott, chief trader at ayondo markets, believes that bitcoin’s rapid growth model is a sign of shifting paradigms in the world of finance.
He told Express.co.uk: “We are in an age where technology is changing the dynamic of the business world.
“Older, traditional organisations are seeing their long-held dominance challenged by ‘disrupter’ companies.
“For me, it’s no surprise that another disrupter, this time in the form of an asset or currency, is picking up speed.”
Bitcoin price: Coindesk estimates suggest bitcoin could soon breach $7,000 per token
Coindesk analysis now points towards the possibility that bitcoin could soon reach an unimaginable $7,000 (£5,278) per token.
We are in an age where technology is changing the dynamic of the business world
If bitcoin’s upward trajectory in the markets continues, traders could expect to see these prices by the end of the month or start of December.
One factor that could explain bitcoin’s growth in popularity is the lack of external regulation and control from big banks.
Mr Hiscott said: “Bitcoin, with its decentralised exchange, means that all transfers and transactions are peer to peer.
“Importantly, no bank or government is involved in these transactions.
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“This will resonate hugely with those affected by the printing of money by governments after the 2008 credit crisis.
“In addition, Bitcoin is extremely secure, using dual-sided cryptography for each transaction, and there is also only a finite amount ever in existence.
With these “virtues” in mind, Mr Hiscott is not surprised that the price of bitcoin swelled over 500 per cent this year alone.
He said: “Not only that, but every week new avenues for trading and speculation come online, providing a wider audience with even more ways to trade the asset, helping to boost its success.”
But not everyone is convinced about the long-term viability of the token, and some experts are looking for the tell-tale signs of an inflated bubble about to burst.
Bitcoin price: The crypto token is continuing to grow this year
Kenneth Rogoff, professor of economics at Harvard University, argued in the Guardian that Wall Street could make a move to create its own digital currencies in a bid to tip the balance in its favour.
He said: “It is hard to see what would stop central banks from creating their own digital currencies and using regulation to tilt the playing field until they win.
“The long history of currency tells us that what the private sector innovates, the state eventually regulates and appropriates.
“I have no idea where bitcoin’s price will go over the next couple years, but there is no reason to expect virtual currency to avoid a similar fate.”