China fuels Bitcoin surge to record high By Ben Rooney
China fuels Bitcoin surge to record high
Bitcoin prices have soared in the past month, defying skeptics who thought the bubble burst in April.
NEW YORK (CNNMoney)
Bitcoin has been surging to new highs as investors, especially those in China, become increasingly optimistic about the digital currency’s potential growth.
The price of one bitcoin hit a record of a record of $395 on Saturday on the Mt. Gox exchange. The virtual currency trades 24/7 on Mt. Gox and other exchanges around the world. Bitcoin was approaching $400 again Tuesday, reaching a high for the day of $391.53 in early morning trading.
Bitcoin was created anonymously in 2010 as an experimental form of money that exists only online. It is not managed by any central authority and is “mined” by solving complex math problems using powerful computers. There is also a finite amount for the number of bitcoins that will ever be in circulation.
It’s been an extremely volatile year for Bitcoin, which traded at $20 in December.
The price shot up to $266 in early April, when fears about a bank run in the tiny island nation of Cyprus led to worries about the stability of the euro currency. Once the Cyprus crisis was resolved, Bitcoin prices crashed back to $50 later in April.