$500 in bitcoin in June 2010 now worth almost $125 million

After soaring nearly 65 percent in the last month, the digital currency  bitcoin smashed the historic $2,000 mark on Saturday. The total market  cap of the asset has likewise climbed to $41 billion.       

 he cryptocurrency has reached a new high on Saturday, trading at $2,507.82 as of 07:58 am GMT.The  world's most popular virtual currency first broke the $1,000 valuation  four years ago, but later dropped in price as a result of factors,  including the implosion of the major exchange Mt. Gox.Since then  bitcoin has regained lost ground, more than doubling its value since the  beginning of the year partly due to global political uncertainty and  increased interest in Asia. Investors turned to the asset as a "safe haven" against geopolitical risks.Early  investors in bitcoin would stand to benefit the most if they held on to  the currency. Those who bought $100 of bitcoin at the 0.01 cent price  on June 22, 2010, would now be sitting on around $125 million.While  some market observers think the rally will continue, others express  concerns the asset may have entered a speculative bubble. 

 Daniel Masters, director of the regulated investment vehicle Global  Advisors Bitcoin Investment Fund told Coindesk that even  cryptocurrencies with smaller market caps like litecoin, ether, namecoin  and ripple have all experienced strong gains over the last few months.He said"sentiment [is] too strong," noting that between this and record prices for cryptocurrencies, a bubble may be forming.Meanwhile,  bitcoin is surging in popularity as the digital payment system that  allows users anywhere in the world to transact directly without  interference from intermediaries, governments, regulators or central  banks.On Monday Japanese carrier Peach Aviation said that by the  end of this year it would start accepting the electronic currency as  payment for airline tickets. Latvian airline airBaltic also said it  would start accepting payment using bitcoin as it focuses on the  customer.