As its popularity has soared, so has its price. On Wednesday it breached the $1,000 (£614) mark on Japan's MtGox exchange for the first time. That's nearly five times the price it was at earlier in the month."
The reasons for this increase in popularity can be linked to:
* The fact that there is no central bank regulating Bitcoin and transaction processing can be carried out by anyone, unlike real-world currencies.
* Individuals can purchase a fraction of a bitcoin (0.00000001 being the smallest unit) and still make a profit from the value of their investment.
* High speculation due to a Senate hearing into the Bitcoin Market.
* China is playing a major role as Chinese citizens are using Bitcoin to invest outside of China.
I guess it's a wait and see game. Some say the bubble will eventually burst, while others think that an upward
trend is here to stay.
In the meantime many are speculating and considering Bitcoin Options which allows traders to make money regardless of where the market ends up.
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