The Bitcoin price has continued its strong run on Wednesday and has smashed through the US$10,000 mark this afternoon.
At the time of writing the Bitcoin price has climbed to US$10,044, according to CoinDesk. This brings the cryptocurrency's year-to-date return to a staggering 930%.
Which gives Bitcoin a market capitalisation of approximately US$180 million, almost as large as the combined value of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO).
What has driven it higher?
The insatiable appetite for Bitcoin by investors has largely been the catalyst for this gain.
According to CNBC, U.S. Bitcoin exchange Coinbase recently reported over 13.3 million registered users. By comparison, leading broker Charles Schwab has 10.6 million active brokerage accounts as of the end of October.
It isn't surprising to see people flocking to Bitcoin. There has been talk of it reaching US$40,000 by the end of next year and US$100,000 in a decade. Even a figure of US$1 million per coin in the future has been bandied about.
Investors don't want to miss out on this gold rush and are fighting to get hold of a coin, driving the price higher and higher.
This has led many to compare its rise to the Tulip mania which swept through Amsterdam in the 1600s.
While it certainly is a risky asset, I wouldn't be betting against it climbing higher from here.
