Mittwoch, 20. November 2013

Legitimate Bitcoin

News from US Senate Committee Hearing

Trade in Bitcoin is small compared with that in countries' official currencies. But since its creation in 2008, Bitcoin has become a popular way to pay for things online. There are currently more than 12 million bitcoins in existence according to Bitcoincharts, a website that provides financial information about the currency.

On one exchange site, Mt. Gox, the value of the currency rose to $900 (£559) on Monday before falling back to $727 (£452). This compares with a price of $200 (£124) in late October.

The closing down of Silk Road and hearings in front of US government committees have led some to believe that prices are increasing as investors think Bitcoin will gain more mainstream acceptance.

Garrick Hileman
"Lots of factors are driving the price action in Bitcoin, including pure speculation," said Garrick Hileman, an economic historian at the London School of Economics.

"Regulatory interest in Bitcoin also traditionally has a positive effect on the price of Bitcoin," he added.

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