Bitcoin Price Hits $500
A week ago we were celebrating bitcoin all time high price at $300. On that day it was clear that the prices will continue to increase, but still a new record is far beyond expectations. Today the value of 1 BTC has passed $500.
On the 7th of November trading on the Mt Gox gave 311 dollars for 1 BTC, and the price rose even during the day to a record 321 dollars. It was the first time since April when bitcoin prices were growing so rapidly and increased by 44.6%. During only one week bitcoin prices jumped from $400 to $500. In the early 2013 everybody could buy and sell bitcoin for approximately $10. It means that during only one year period the prices increased x50 times or for 5,000% per year. At 11.50am GMT on 17th of November the price already stood at $503.10 on Mt. Gox. According to the Bitcoin Price Index there are currently 12,003,175 bitcoins in existence and the total market cap is $5,581,140. Think about it that an average of 50,535 bitcoins is transacted every hour.
Despite all scandals and problems that bitcoin market had gone through, including the Silk Road black market reputation and its closure and unpleasant statements from government and bank representatives, bitcoins continue its way up to new horizons. It’s not that easy to determinate all factors of the rising popularity of bitcoin. For now Bitcoin has about 1.4 million of users. Bitcoins are based on the system that conducts transactions and generates new coins without any financial or regulatory center.
However, today we see more and more positive interviews from the government representatives. The news of different hearings about cryptocurrency now has no negative impact on bitcoin’s value. As we mentioned before, the US Senate Committee on Homeland Security and Governmental Affairs (HSGAC) will begin hearings on bitcoin on Monday 18th of November. Another Senate Committee on Banking, Housing and Urban Affairs will also hold a bitcoin hearing on Tuesday 19 November. Some experts suggested that the price of Bitcoin is growing due to the current instability of the euro, particularly in relation to the freezing of uninsured bank deposits in Cyprus. For more there are various marketplaces providing bitcoin exchange, including Mt. Gox, Coinbase, Bitinstant, LocalBitCoins and CoinLab. This year Asia is opened to welcome bitcoin as well. Recently BTC China has became the highest-volume bitcoin exchange. This factor also increases bitcoin market activity and popularity.
Nevertheless, experts agree that bitcoin becomes expensive, as is becoming increasingly popular among cryptocurrency users and merchandises ready to accept bitcoins as payment for their services and goods.