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Bitcoin Hits $1B Milestone in Total Value


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Guest Ethan
Bitcoin Hits $1B Milestone in Total Value

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Bitcoin has been creating a lot of buzz over the past few months but now, the virtual currency has amazed everyone with its $1 billion milestone surpassing. Last week, Bitcoin’s exchange rate for the currency beat $92. If you take into consideration that just a couple of weeks ago the currency was only $49 worth, its increase sounds indeed…insane.

Neither Bitcoin supporters nor financial analysts could anticipate the currency’s explosion in value (or its sudden plunge over at some point).

However, this increase is not totally unexplainable since the number of services using Bitcoins as a payment currency has increased also. Other names have already joined WordPress, Mega, and Reddit among those which have adopted the new currency (which reportedly, currently has 11 million Bitcoins in circulation).

Another key factor in Bitcoin’s rise to ‘fame’ has been linked to the lack of restrictions and control from Government. For example, according to reports, a large number of citizens of Cyprus who had their bank accounts blocked and were allowed to withdraw only $300 daily, have directed their attention to Bitcoin in which they saw a currency with the great potential of being safe from the reach of the government.

While Bitcoin has undeniably made a statement to be taken serious with its billion dollar milestone hit, to major investors its viability is yet to be established. According to Michael Kagan, Senior Portfolio Manager at Clearbridge Investments is not likely to feel safe “getting involved with something vulnerable to being hacked or manipulated, and with no recompense if it is.”

Figures published by BitPay, one of the most popular Bitcoin payment processors, show that last month the company processed $2 million worth of Bitcoin transactions, this representing 66% of all the transactions it managed last year. Daiy Bitcoin transactions have gone from around 200,000 Bitcoins per day, to a total of 50% higher.

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