Bitcoins Traded At $1,000 At Mt. Gox

Bitcoins Traded At $1,000 At Mt. Gox

Wednesday saw the price of a bitcoin rising to $1,000, which indicates increasing interest in the digital currency that was trading at around $30 near the start of the year.

The $1,000 level was exceeded at the Mt. Gox exchange in Tokyo. At the Bulgaria-based BTC-E, the currency was traded at $916 while Slovenia-based Bitstamp saw the currency trading at $949. The increase in the price of the currency was noted since last week. In contrast, volatility and huge price swings saw the currency trading at around $30 last March.

Bitcoin is a digital currency purchased and traded through computer networks. It has no regulatory authority or central bank and has a minimal transaction fee. Some people see the currency as an investment and universal payment form. Although the currency can be considered as a dot-com stock due to its huge price swings, it is not easy to understand why it is accepted as a form of payment by merchants.

There are around 12,000 merchants that use Bitcoin according to BitPay, an electronic payment processing firm. However, these merchants do not offer an option for converting the payments into cash.

Although the reasons behind the increase in the price remain uncertain, the demand and support for the currency shows that it may continue to exist. The endorsement by federal officials in the potential benefits of the currency to international commerce and the financial system is a major sign of change in the currency.

Since payments for Bitcoins are done anonymously, concerns were raised on the acquisition of illegal products through the use of the currency. However, a number of these concerns were suppressed after Silk Road was shut down.

Experts indicate the increasing price of the currency resulted from these developments that include an increasing interest of China on the currency. Supporters of the currency saw hope for it after support for its use in international commerce increased.

Since the number of people using the currency is still small, dramatic changes are noted each tome it is traded. However, its price may stabilize as this number increases. However, the volatility in the price of the Bitcoin will continue until it will stabilize or crash.

Posted by Melanie Mendoza on Friday November 29 2013, 3:06 AM EST. Ref: PC World. Link. All trademarks acknowledged. Filed under Featured News, Shopping. Comments and Trackbacks closed. Follow responses: RSS 2.0