Bitcoin's value has begun to rise so much that it is worrying. Its price has reached around 200 dollars in some currency markets this week, and this happened just after its recent closure 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.
The week we passed 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 in Asia. This adds trust and credibility to digital currency, since it is now clear that it is not only used for illegal activities.
Williams also said that closing Silk Road has affected Bitcoin's value. Silk Road was one of Bitcoin's most notorious users, who preferred it because transactions can not be detected under certain conditions and because it does not have a billing system. 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 from within informations that presented 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.
Όσον αφορά το αν είναι φούσκα, ο Williams ανέφερε ότι υπήρξε μια παρόμοια κατάσταση πριν από έξι μήνες. Αν και η αξία του ανέβαινε πολύ γρήγορα η πτώση που ακολούθησε δεν είναι και τόσο απότομη, όπως είχε συμβεί παλαιότερα και "προέρχονταν από μια πολύ ισχυρότερη βάση". Ο Williams πρότεινε ότι η κοινότητα μπορεί να παρατηρεί μια φούσκα, αλλά το αν και το πότε θα σκάσει δεν μπορεί κανείς να το πει.
Right now, Bitcoin is worth about 210 dollars according to Mt Gox.
