Bitcoin falls $400 in first 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.

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Source: www.flickr.com
Source: www.flickr.com

Bitcoin steadily declined in value in Q1 2014, with the price of a single bitcoin dropping from more than $900 in early January to less than $500 by March 31. Prices were stable in the $800 to $900 range from January until early February.

The relative stability of Bitcoin in January contrasts with the rapid increase in value it experienced in the final months of 2013, when it went from around $100 in October 2013 to more than $1,200 in November 2013.

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 briefly surpassed the value of gold on Nov. 29, with the value of a single bitcoin reaching $1,242 to a single ounce of gold's $1,241.98. Bitcoin's value hovered around $1,000 during the first week of December 2013 before dropping below $800 amid the new restrictions placed upon it by China's government.

"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.

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