Online Gambling Currency Bitcoin Hits New Heights

Published Wednesday, April 10, 2013 -

We have been hearing a lot about the fate of Bitcoins of late and the latest news is it has taken off surpassing unexpected values. Bitcoin, the digital currency that trades outside the control of central banks on the internet reached new heights recently, surpassing the $200 mark. That level comes just five days after Bitcoin approached $150. The US company Mt. Gox the largest exchange service for the currency which as of 2011 was already handling eighty percent of Bitcoin transactions called this rise in value to be “epic” Only two months ago that exchange rates put a single bitcoin's value at around $20. That’s truly more thatn just an epic rise. The last huge rise was when the Greek economy started to falter the bitcoin started to see more interest and now with the Cyprus crisis and the Spanish economic sputter the bitcoin is making major leaps. Fear is generating a need basically that is based on massive withdrawal fees and the loss of billions if the funds are left in bank controlled traditional currencies.

There are detractors to the theory such as Jon Matonis of the Bitcoin Foundation who told Der Spiegel,"Most transactions are still coming from affluent regions, like the United States and Northern Europe," Matonis maintains, "What we are seeing is not a Cyprus bubble."

The $ 240 Bitcoin value is linked in part to the currencies small size giving it a volatility like nothing seen before. When gold prices rocketed from $35 per once to over seven hundred when the banks un-pegged its value there was the same panic and profit being made. Mt.Gox, which says it conducts more than 420,000 bitcoin trades each month and has had to limit the maximum amount of monthly withdrawals to between $50,000 and $500,000, depending on customers' "verified" or "trusted" status. Bitcoins who would have thought that it would be this interesting.

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