Investing.com - The price of virtual currency Bitcoin rose above 1100 dollars on Thursday, as indications that the currency is gaining a broader legitimacy fuelled speculative buying.
BTC/USD touched an all-time high of 1100.00 on the Tokyo based online exchange MT Gox before falling back to 1094.00 In early November Bitcoin was trading at approximately USD215.
Bitcoin is digital cash for the internet. Its value is highly speculative since it is not backed by a government or central bank to regulate or issue it. It can be used to purchase real goods and services. Its growing popularity has raised questions over whether and how it should be regulated.
Bitcoin gained wider public acceptance following last month’s closure of the Silk Road, an online marketplace for drugs, which used it as a currency.
Last week the price of the digital currency jumped above USD900 for the first time after U.S. officials told a Senate committee hearing that virtual currencies are a "legitimate financial service".
“The Department of Justice recognizes that many virtual currency systems offer legitimate financial services and have the potential to promote more efficient global commerce,” Mythili Raman, the acting assistant attorney general of the Justice Department, said.
“We all recognize that virtual currencies, in and of themselves, are not illegal,” he added.
Bitcoin advocate Jon Holmquist has launched a website called Bitcoin Black Friday, aimed at raising awareness about the digital currency, by offering deals on the biggest U.S. shopping day of the year.
A number of businesses including Reddit, CheapAir.com, the first online travel agency to accept Bitcoin, and Gyft, which offers gift cards for retailers such as Amazon and Target are listed on the site.
BTC/USD touched an all-time high of 1100.00 on the Tokyo based online exchange MT Gox before falling back to 1094.00 In early November Bitcoin was trading at approximately USD215.
Bitcoin is digital cash for the internet. Its value is highly speculative since it is not backed by a government or central bank to regulate or issue it. It can be used to purchase real goods and services. Its growing popularity has raised questions over whether and how it should be regulated.
Bitcoin gained wider public acceptance following last month’s closure of the Silk Road, an online marketplace for drugs, which used it as a currency.
Last week the price of the digital currency jumped above USD900 for the first time after U.S. officials told a Senate committee hearing that virtual currencies are a "legitimate financial service".
“The Department of Justice recognizes that many virtual currency systems offer legitimate financial services and have the potential to promote more efficient global commerce,” Mythili Raman, the acting assistant attorney general of the Justice Department, said.
“We all recognize that virtual currencies, in and of themselves, are not illegal,” he added.
Bitcoin advocate Jon Holmquist has launched a website called Bitcoin Black Friday, aimed at raising awareness about the digital currency, by offering deals on the biggest U.S. shopping day of the year.
A number of businesses including Reddit, CheapAir.com, the first online travel agency to accept Bitcoin, and Gyft, which offers gift cards for retailers such as Amazon and Target are listed on the site.