The rise of cryptocurrencies is indeed intriguing, given that it has not even been a decade since bitcoin came into existence in 2009. Now, there are at least more than a 1,000 active virtual currencies. (Image: Reuters)

Thomas Carper, a senior United States Senator once remarked, “Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” Initially, Bitcoin had caught the imagination of the investors, and seemed unassailable in its dominance of the cryptocurrency market, being the first digital currency to establish itself in the mainstream. However, a lot of other cryptocurrencies have emerged in the market ever since, each one vying with the other to seek dominance.

The rise of this alternative asset class is indeed intriguing, given that it has not even been a decade since bitcoin came into existence in 2009. Now, there are at least more than a 1,000 active virtual currencies out there. The organic nature of the currency and the fact that it is not issued by any central authority — some believe that it may be immune to government intervention or manipulation — makes it an alluring alternative to mainstream currency. Jen-Hsun Huang, CEO of Nvidia Corporation, recently said that cryptocurrency and blockchain are here to stay. “Over time, it will become quite large. It is very clear that new currencies will come to market,” said the CEO of the company which makes core processor and graphics processor for gaming devices and professional market.

Blockchain is like a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. According to the data from coindesk.com, the total value of all cryptocurrencies set a new all-time high on Thursday, rising above $126 billion for the first time in history. Cryptocurrencies market has seen a lot of activity, with the prominent currencies recording enormous price gains. Bitcoin has risen 250% so far this year. Bloomberg reported.

(Chart: Bloomberg)

However, not everybody is bullish on the prospects of cryptocurrencies going forward. In fact from the same semiconductor space, CEO of AMD (Advanced Micro Devices, Inc) Lisa Su said that cryptocurrency won’t be a long term growth driver for the company. Speaking about the company’s strategy, Lisa Su said, “It’s important to say we didn’t have cryptocurrency in our forecast, and we are not looking at it as a long-term growth driver. But we’ll certainly continue to watch the developments around the blockchain technologies as they go forward.”

Renowned investor Jim Rogers, sometimes referred to as commodities guru, sounds a note of caution on the prospects of cryptocurrencies, preferring to stay away from them at for now. “I wish I was smart enough to buy cryptocurrencies.” Jim Rogers said in a recent interview with Kitco news. Further, the commodities guru seemed to suggest that there might be a bubble building up in the cryptocurrency space. “It looks bubblish when you see the kind of price we see in bitcoins,” Jim Rogers said, adding that he doesn’t own any of the cryptocurrencies. “I certainly don’t know which one will come out on top, or if anyone comes out on top. But, I don’t own any.”