Bitcoin continues to maintain its position as king of cryptocurrency by touching new heights of $1293.47, in a matter of minutes on Tuesday, According to analysts, it could hit $3,000 by Dec 2018. This means that there is a possibility of 130% rise in its value, in comparison to the current price.

"In terms of price this year, I think it will go up to $3,000. As it becomes more pervasive and more generally accepted, I think you'll see rapid growth in adoption," Adam Davies, of Altus Consulting, told CNBC in an interview on Tuesday.

"The Bitcoin price will continue to rise this year although it's difficult to say by exactly how much," said Thomas Glucksmann, head of marketing, Gatecoin.

Even if Bitcoin doesn't touch the $3000 mark, still Bitcoin will tower over other cryptocurrencies such as Dogecoin, Namecoin, and Peercoin. Because of its nature, Bitcoin will continue to hold an overwhelming presence in the online community allowing both illegal and legal purchases.

Bitcoin ETF

The market right now volatile, as Bitcoin is awaiting approval for the Winklevoss Bitcoin ETF, a fund that would allow investors to trade Bitcoins. Approval of the fund, reassures that investors are trading a legitimate currency. Once approved, Bitcoin will slowly establish itself as a modern day currency.

What is Bitcoin

For those unfamiliar with Bitcoin, it was made in 2009 by someone who went by Satoshi Nakamoto.

It’s a virtual currency used to purchase many online products and services. The currency is a piece of information stored in a device.

Bitcoins are earned through mining. Users are rewarded with Bitcoins in exchange for using their computers to mine the virtual currency. With increasing time, the difficulty of earning a Bitcoin has increased.

Earlier, you would be able to earn several Bitcoins in a couple of months. Currently, it may take several months or even a year to earn a single Bitcoin. As of now, there are 15 million Bitcoins.

Bitcoin vs gold

Bitcoin has existed for nearly eight years. March 3rd marked an important date for the digital currency. As the most popular virtual currency, Bitcoin has surpassed the value of gold.The value of a Bitcoin continues to increase reaching $1,270 per unit compared to $1,233 per ounce of gold.

High demand for the cryptocurrency aids in increasing its value.

Rise of Bitcoin

Since last year, it has doubled in value after plummeting to $500 per unit in 2015. A lot of instability within the value of the cryptocurrency can be traced to strict Chinese inspection. Bitcoin saw an upward surge after the news died down.

Instability of Bitcoin

Because of the anonymity with Bitcoin purchases, the currency can be used to purchase products like illegal drugs and other substances. Bitcoin has had an unstable past whether with the FBI’s crackdown on Silk Road, an online black market selling illegal goods and services, or Chinese attempt to control the currency. Such activities resulted in instability of its value.

However, many countries have started to accept the use of the cryptocurrency.

Bitcoin continues to remain popular with many online users. Its popularity only continues to grow with the growth of the virtual world.