The New Year is already looking good for Bitcoin. The Bitcoin trades on Sunday clocked a record high of $34,800, thanks to the 800 percent surge. The trades on Monday were closed at $33,176 in Asia. This indicates the global trend of investors continuing to bet on digital currency as a mainstream payment method. Three weeks before, the world’s largest trending cryptocurrency had crossed $20,000 for the first time.

Investors believes that, just like the surge of gold rates during the pandemic, the scarce supply of bitcoin has been a predominant reason for the surge. Additionally, the cryptocurrency’s potential for quick gains has also gained demand from large U.S. investors, in addition to traders who usually stick to equities.

In India, the rate of bitcoin stands at Rs.24,17,939.56. The government, however, is planning to accept the proposal to impose 18 percent goods and services tax (GST) on bitcoin transactions. The amount is estimated to be around Rs 40,000 crore annually. The Central Economic Intelligence Bureau (CEIB), an arm of the finance ministry, has submitted a proposal to the Central Board of Indirect Taxes & Customs (CBIC), that the government could be able to collect Rs 7,200 crore annually as bitcoins trading tax in the country.