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Bitcoins are accepted by a growing number of merchants, even used to pay some employees

Bitcoin Magazine this week heralded some exciting news. The popular cryptocurrency that's free of regulation by any nation state has hit a new high of $32 USD/Bitcoin on Mt. Gox, the world's largest exchange.  The previous high had been $31.9099 on June 8, 2011.

Right after hitting that previous high, Bitcoin values began a freefall, which we covered in our piece "Digital Black Friday: First Bitcoin "Depression" Hits".  It was unclear whether the plunge was due merely to profit taking or other issues.  Shortly thereafter, the currency was further devalued when MtGox was hit with a database dump attack and users accounts were compromised due to the service's weak MD5 hashing of passwords.  It took the site months to rebuild trust, beef up security, and unwind the trail of fraudulent transfers.

The Bitcoin rollercoaster ride bottomed out at $2 USD/coin in November 2011.  And last fall BitFloor -- another major exchange -- was hacked, and $250,000 USD worth of Bitcoins were stolen.  But despite that, the currency continued to creep upwards.

Bitcoins on the rise
Bitcoins values have soared in the last six months. [Chart]

Inflation remains a serious concern for Bitcoins, as do scammers using classic techniques like Ponzi schemes.  And there's the issue of Bitcoin-mining malware that's afflicted PC and Mac users alike.  However, the currency's utility as an (relatively) untraceable and easy to use digital currency is keeping it sailing high.

Popular social media site Reddit recently gave Bitcoins a boost, by accepting the cryptocurrency as a means of paying for "Gold" premium memberships.  LaCie Group SA's (EPA:LAC) "Wuala" and Kim Dotcom's new "Mega" file sharing services both accept Bitcoins as a means of payment.

MtGox
Mt. Gox remains the most popular place to buy and sell Bitcoins.

Domain registrar Namecheap is also considering BitCoin.  And WordPress.com is currently accepting BitCoin payments for various services.

Source: BitCoin Magazine



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RE: Not for me
By Ammohunt on 2/28/2013 5:24:58 PM , Rating: 2
I am positive 20 years from now when bitcoins are valued in the thousands we will all be kicking ourselves saying why didn't i buy them all up at $32. Hell $2 -> $32 is a hefty return it only matters how valuable others think they are in real currency not the actual value.


RE: Not for me
By Solandri on 2/28/2013 5:45:00 PM , Rating: 1
Heh, the same thing happened with a friend and Pokemon cards in the 1990s. I and most of my adult friends thought they were stupid and ignored them (parents were forced to buy them by their kids). But one of my friends (who thought they were stupid) realized their value wasn't what we thought it was worth, it was what its fans though it was worth. He made a small fortune importing them and selling them to retailers.


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