Bitcoin climbs 40% in second quarter of 2014

Business -

The value of a single bitcoin continues to fluctuate amid currency exchange closures and increased interest from regulators around the world.

Get
Circa News
Source: www.flickr.com
Source: www.flickr.com

The value of a single bitcoin increased by about 40%, to around $630, in Q2 2014, according to CoinDesk's Bitcoin Price Index. That follows a drop of around 50%, from around $900 to $450, in Q1 2014. The value of a single bitcoin hovered between $600 and $640 in the first week of July.

Mt. Gox, at times one of the world's largest bitcoin exchanges, experienced a prolonged outage in February in which users were unable to withdraw their bitcoins. Mt. Gox filed for bankruptcy on Feb. 28. Uncertainty surrounding Mt. Gox contributed to bitcoin's decline in Q1 2014.

Bitcoin rapidly increased in value in the final months of 2013, going from around $100 in October 2013 to more than $1,200 in November 2013. The value of a single bitcoin briefly surpassed the value of gold on Nov. 29, 2013, reaching $1,242 to a single ounce of gold's $1,241.98.

"Clearly, bitcoin is no longer a penny stock. It's playing in the big leagues — a share being worth more than a share of Google or Apple, and even more then an ounce of gold." Erik Vorhees, SatoshiDice founder

Voorhees sold SatoshiDice, an online gambling website that accepts bitcoin as its primary payment method, for 126,315 bitcoins in July 2013 (worth about $11.5 million at the time). Voorhees was speaking in November 2013 as the value of a single bitcoin surpassed the value of gold.

Satoshi Nakamoto denied "being involved with Bitcoin." Newsweek reported on March 6 that the 64-year-old resident of San Bernardino, CA, created the digital currency.

View citations for this storyline
Close

Read this storyline and more on Circa for iPhone

Now available in the App Store

What is Circa? Get the App