Bitcoin Crosses $1000; NYT Predicts It is Doomed to Fail

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Bitcoin Crosses $1000; NYT Predicts It is Doomed to Fail
Bitcoin Crosses $1000; NYT Predicts It is Doomed to Fail

Bitcoin Crosses $1000; NYT Predicts It is Doomed to Fail

ForexMinute has been reported repeatedly that Bitcoin will be crossing the benchmark of $1000 by the end of this year; however, it could not wait that long, instead, it happened even before November ended. The value of the crypto-currency surged above $1,000 yesterday and traded at $1,073 recently.

The extraordinary jump in the exchange value of Bitcoin has surprised a lot of market observers; in fact, Edward Hadas of the New York Times says that the virtual currency is doomed to fail. However, for now there is no indication that Bitcoin is going down any time soon. Mt.Gox, the biggest Bitcoin exchange is offering the best prices for Bitcoin where after touching $1000 mark, it is now trading at $930.

Several New Merchants Accepting Bitcoin

The major reason behind the rise in the popularity of Bitcoin is that new merchants are coming up with open arms to accept the digital currency. The latest to jump on the Bitcoin roller coaster is Gyft, a mobile gift card company backed by Google Ventures. According to the source from the company it will give four percentage points back on gift-card purchases made on Thanksgiving Day and Black Friday using Bitcoin.

Gyft will offer “Gyft points” that can be exchanged for new gift cards from more than 200 retailers like Gap, Target and Amazon’s Zappos. Apart from Gyft, the recent decision on the part of billionaire Richard Branson that his space start-up Virgin Galactic will accept payment in the virtual currency has given new impetus to Bitcoin.

Similarly, the University of Nicosia, a private school in Cyprus, started accepting Bitcoin for its course on digital currency. Arguably, Bitcoin is getting a lot of attention from unconventional areas; however, a major source that is helping the digital currency is that investors in China are looking at it with hope as they realize that it is a better investment tool.

**relatedarticle**

After Baidu of China started accepting Bitcoin, a lot of attention is being paid to the digital currency in China.

Edward Hadas of New York Times Question the Concept of Bitcoin

In his blog he says Bitcoin exemplifies some of the problems of private money. He says its value is uncertain, its legal status is unclear, and it could easily become valueless if users lose faith. Edward Hadas believes that even if Bitcoin ever really started to take off, governments would either ban it or take over the system.

According to Edward Hadas a major problem with Bitcoin is that tax evasion would be too easy in a right-money parallel economy and the authorities might be motivated by a genuine concern about it as well as the stability of a shadow monetary system.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

  • JoeC

    Mr. Hadas is apparently unclear on the concept. Governments can’t “take over” bitcoin any more than they can “take over” people breathing.