The new virtual currency, BitCoin, is seen to be creating a lot of buzz over the past months. At the moment, BitCoin can easily amaze you with its $1 billion milestone surpassing. Just a few days ago, its exchange rate for the currency beat $92, while only a few weeks ago it was $49 worth. Such a huge increase sounds really insane.
Frankly speaking, Bitcoin supporters and financial experts expected neither the currency’s explosion in value nor its sudden plunge over at some point.
Nevertheless, the increase in question can’t be clearly explained, because the number of services that use BitCoin as a payment currency has increased recently as well. Aside from WordPress, Mega, and Reddit, there were other names which have already adopted the new currency. According to statistics, there is 11 million BitCoins in circulation at the moment.
Financial experts believe that another key factor in the currency’s rise to “fame” has something to do with the lack of restrictions and control from the government. For instance, you might have heard from the news that a large number of citizens of Cyprus had had their bank accounts blocked and only allowed to withdraw $300 per day. These people have turned their attention to BitCoin in which they saw a currency having a huge potential of being safe from the reach of the authorities.
Undoubtedly, BitCoin has made a statement to be regarded serious with its billion dollar milestone hit. However, its viability to large investors is yet to be established. For example, Michael Kagan, Senior Portfolio Manager at Clearbridge Investments, says that he isn’t likely to feel safe when being involved with the currency vulnerable to being hacked or manipulated, without recompense if it is.
Statistics published by BitPay, which is considered as one of the most popular Bitcoin payment processors, revealed that in March 2013 the company processed $2 million worth of BitCoin transactions, which equals to 66% of all the transactions it managed in 2012. Daily BitCoin transactions have increased from about 200,000 BitCoins to a total of 50% higher.
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