Bitcoin, the virtual or digital currency, has been generating substantial public interest. Bitcoin prices has practically doubled since the outbreak of the Cyprus crisis.
Notes the Zero Hedge, (bold emphasis original)
From a January 2nd price of $13.16, the price of a Bitcoin in USD had risen to $46 on March 16th - right before the Cyprus 'solution' was announced. Since then, in two short weeks, the price of a Bitcoin has more than doubled, reaching $101 today. This 'exuberance' in non-fiat currency, should perhaps warrant caution as we noted here, the US is now not only actively monitoring but has commenced regulating the Bitcoin market and those who participate should be well aware that when uncle Sam is involved, things tend to have an unhappy ending for pretty much everyone involved.
Events in Cyprus seem to be prompting people to look for currency alternatives to safeguard their savings from the predations of government, and thus Bitcoin's newfound popularity.
I would even suspect that some of the interest in gold and precious metals may have been diverted to bitcoins.
[Note: I am not in anyway promoting bitcoins. I have no exposure in bitcoin yet. But considering how political events have been unfolding, the search of safehaven means bitcoins as an alternative should be explored]
[Note: I am not in anyway promoting bitcoins. I have no exposure in bitcoin yet. But considering how political events have been unfolding, the search of safehaven means bitcoins as an alternative should be explored]
Neverthelesss here is an insightful audio interview of Erik Voorhees of Bitinstant who spoke with Austrian economist Tom Woods on the basics of bitcoins.
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