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The price of one bitcoin surpasses $1,000 on Mt. Gox

Zach Miners | Nov. 28, 2013
The price of a single bitcoin reached US$1,000 Wednesday, possibly demonstrating a new level of interest -- some might say mania -- for the digital currency that earlier this year was trading for a measly $30.

Finally, China also seems to have taken a major interest in Bitcoin, possibly in an effort to drive down the value of the U.S. dollar.

All of those developments combined could be contributing to the rising price of bitcoins, experts said. The newfound support could give more hope to supporters who see bitcoins becoming more widely used in the future, said Jerry Brito, director of technology policy at the Mercatus Center at George Mason University.

The Silk Road shutdown specifically cleared a major hurdle, said Rob Banagale, CEO and co-founder at Gliph, which makes a messaging app that sends Bitcoin payments. Previously, a big perception hinged on the currency's underground nature, he said, but maybe not so much anymore.

Currently, the small number of people using Bitcoin causes every trade to create dramatic swings, but as more people use it, things could stabilize, Brito said.

But the volatility will probably continue. "There will be a series of bubbles going up and down," Brito said, "until Bitcoin either stabilizes or crashes."

 

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