Bitcoin Rollercoaster Ride Sees Currency Soaring to New High of $32/Coin
February 28, 2013 3:39 PM
comment(s) - last by
Bitcoins are accepted by a growing number of merchants, even used to pay some employees
heralded some exciting news. The
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 --
, and $250,000 USD worth of Bitcoins were stolen. But despite that, the currency continued to creep upwards.
Bitcoins values have soared in the last six months. [
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
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 (
) "Wuala" and Kim Dotcom's new "Mega" file sharing services both accept Bitcoins as a means of payment.
Mt. Gox remains the most popular place to buy and sell Bitcoins.
Domain registrar Namecheap is
BitCoin. And WordPress.com is
BitCoin payments for various services.
This article is over a month old, voting and posting comments is disabled
RE: Not for me
2/28/2013 5:37:42 PM
Bitcoins are like any commodity you can trade. The price is determined by supply and demand. What backs gold? Nothing, just the demand people have for it, and the scarcity.
The second part of your comment is incorrect. The software adjusts the difficulty of solving a block of transactions to maintain a near-constant generation rate.
What bitcoins actually are is a data entry in a history of transactions, associating a balance with an account number. They are just like checking account balances. How much is in the account now is just the sum of previous deposits and withdrawls.
New coins are created as a reward for solving a difficult cryptographic problem based on a set of new transactions (a block). Once solved, it is easy to check the solution is correct. The difficulty makes it hard to fake transactions, because if you change any part of a block, even by one bit, the resulting hash will be different. So it is a security measure to ensure the history of transactions has not been messed with.
There will never be more than 21 million bitcoins, no matter how fast future computers get, or how many people try to generate them.
RE: Not for me
3/1/2013 3:33:39 PM
This is a bubble just waiting to burst. A worse ponzi scheme than even debt based currency.
Its a currency promoted as a commodity valued in debt based REAL currency.
Thanks, but I'll pass on that. I actually don't need to obfuscate debt-laden currency even further.
"Folks that want porn can buy an Android phone." -- Steve Jobs
President Barack Obama is on Reddit Until 5 p.m.
August 29, 2012, 4:35 PM
"Pirateat40" Makes Off $5.6M USD in BitCoins From Pyramid Scheme
August 28, 2012, 4:11 PM
"Devil Robber" Trojan Infects Macs, Leeches Their GPUs for Bitcoin Profit
November 1, 2011, 10:59 AM
GPU Roaring? You May Be Infected With a Bitcoin Trojan Says Symantec
August 17, 2011, 4:47 PM
EDITORIAL: Don't Count on Bitcoin for Safe Haven in Recessionary Economy
August 8, 2011, 7:00 PM
Quick Note: Google Drive 100GB, 1TB Plans See Major Price Cuts
March 13, 2014, 2:45 PM
Target Missed Early Warning Signs of Holiday Data Breach
March 13, 2014, 1:45 PM
Amazon Increases Prime Subscription to $99/year Starting March 19
March 13, 2014, 8:23 AM
Bitcoin King's American Accounts Get Frozen
March 13, 2014, 3:00 AM
Time Warner Cable CEO Says Merger with Comcast is a "Dream Combination", Will Increase Innovation
March 12, 2014, 2:37 PM
North Carolina-based Company to Offer Gigabit Internet Before Google
March 12, 2014, 2:31 PM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Tesla Motors Calls New Jersey Out on New Rule Against Its Direct Sales Model
March 11, 2014, 12:01 PM
NASA Considering SpaceX "Red Dragon" for Returning Mars Samples to Earth
March 10, 2014, 2:43 PM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information