bitcoin virtual currency, which has gained popularity especially since the banking crisis of Cyprus, exceeded the symbolic threshold of thousand dollars in Mt.Gox site, one of the largest for buying and selling this currency.
The bitcoin, whose value has large fluctuations over short periods of time, has been rising in recent days, following hearings in the U.S. Senate on the legality of the coin.
On day 18, the chairman of the U.S. Federal Reserve, Ben Bernanke, sent an open letter to Senators where, without referring directly to bitcoin, argued favorably regarding this type of electronic payment letter: “They can bring risks related to the implementation law and supervisory matters, [but] there are also areas that can be a long-term promise, particularly if the innovations promote a system for faster, safer and more efficient payment. “
Mt.Gox the bitcoins reached on Wednesday a historical high of $ 1,073, or 780 euros. On average, the currency was being traded throughout the day for about 712 euros. The Mt.Gox, headquartered in Japan, is defined as the greatest service in the world of buying and selling of bitcoins. A few months ago, U.S. authorities seized the funds of a subsidiary company of Mt.Gox the USA, because this was not authorized to provide financial services.
legality of bitcoins, and services that transact, has raised concerns. Moreover, the currency was also known to be used for illegal purchases on websites that sold guns and drugs. It is, however, also accepted as payment for various legitimate business. Last month, a cafe in Vancouver, Canada, installed a similar to an ATM that allowed the Canadian dollar exchange notes for bitcoins machine, and vice versa.
At the time of the crisis in Cyprus, the currency gained notoriety, particularly amongst media. On March 30, one bitcoin was worth 70 euros, a value at the time considered too high compared to history. Many stories have then realized that the loss of confidence in the banking system (particularly after the announcement of the rate on deposits in Cyprus) had led to an increased interest in an alternative form of money, although it is not clear how much demand also due to the media coverage itself.
bitcoins are a virtual currency that operate in a decentralized manner and that emerged in 2008, invented by someone under the pseudonym Satoshi Nakamoto. Instead of being issued by a central authority, are generated automatically by a system that anyone can plug a computer. The coins are released periodically in the network. For the win, it takes the computer to solve a kind of complex mathematical problem. The first to solve receives bitcoins, an operation that aims to reward those who have invested more resources (time, power, processing power of the computer) for a portion of a finite well. This causes the system is closer to the demand of a precious metal than the issuing money.
The system is designed to deliver a maximum of 21 million bitcoins – the maximum recovery of Wednesday, the euro would mean a little more than 16 billion in bitcoins. At the current pace, bitcoins will no longer be generated somewhere in the middle of the next century.
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