The value of Bitcoin has started to rise so much that it is becoming alarming. Its price has reached around 200 dollars in some markets forex this week and this happened right after its recent close Silk Road. It's a bubble, and how long will it last?
The founder of BitPOS, Jason Williams, told ZDNet that, in his view, there are two main factors for the recent rise of the digital coin.
Last week the Chinese company Baidu started accepting Bitcoins as a form of payment. Williams said many consider the Baidu service to be its Chinese equivalent Google στην Ασία. Αυτό προσθέτει εμπιστοσύνη και αξιοπιστία στο ψηφιακό currency, since it is now clear that it is not only used for illegal activities.
Williams also mentioned that the shutdown of Silk Road has affected the value of Bitcoin. Silk Road was one of the most notorious users of Bitcoin, preferring it because transactions are untraceable under certain conditions and because it does not have a system charge. The currency is not illegal, although it is not yet recognized by all governments.
When Silk Road was closed, Bitcoin 's value according to Mt Gox suffered a mini crash, but in a few days, it returned to its original levels and continued to climb.
According to Williams, the mainstream of the media was presenting his actions Silk Road, was likely to provoke the interest of many people who had never heard of it Bitcoin. So they began to be interested, strengthening its value.
As for whether it is a bubble, Williams said a similar situation existed six months ago. Although its value was rising very fast, the fall that followed is not as sharp as it had been in the past and "came from a much stronger base". Williams suggested that the community may notice a bubble, but no one can say when or when it will burst.
Right now, Bitcoin is worth about 210 dollars according to Mt Gox.
