We’ve talked a couple of times recently about how Bitcoin value has exploded over the past few months and that growth has continued till today, where it reach a new high of $91, over four times that of its value at the end of 2012. This has seen the entire currency hit a value of over a billion dollars, but it’s caused a little fluctuation that has some worried it’s a bubble waiting to pop.
The meteoric rise of Bitcoin really has been just that. If you looked back a couple of years ago when the value crashed from a then-high-point of $30, down to a tenth of that in just a day, you’d assume its days were numbered and that the anonymous digital currency was set to languish in a few geeky corners of the internet. It certainly found its home in some, becoming famous for its usage on drug marketplace, the Silk Road, but it’s found increasing usage elsewhere in the past six months, with many citing that as a reason for the currency’s growth.
Reddit and WordPress both accept it as donations now and there’s been much talk of the fact that where banks have failed in countries like Cyprus, locking people out from their hard earned funds, that with Bitcoin that might be less likely to happen.
However, despite today being the day where Bitcoin turns $1 billion, this legitimacy could be its down fall. As Techcrunch points out, it seems likely that governments will start to take notice the more Bitcoin grows and with its de-restricted natured, authorities may take a disliking of it. Of course you could draw the comparison that cash is exactly the same: a decentralised, potentially anonymous currency option, but I doubt they’d take much notice of you.
KitGuru Says: Have any of you guys invested in Bitcoin in the last few months? I wouldn’t encourage it due to the volatile nature of the currency, but if you did, you’re probably sitting on at least twice what you invested right now.