Bitcoin Soars, Crosses $500 Mark in Exchange Market

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Bitcoin Soars, Crosses $500 Mark in Exchange Market
Bitcoin Soars, Crosses $500 Mark in Exchange Market

Bitcoin Soars, Crosses $500 Mark in Exchange Market

Bitcoin which was trading below $50 earlier in April this year has now gone up to above $500. The decentralized virtual currency hit a record high overnight and broke the earlier records to be sold at $520 at one point of time yesterday. However, Mt. Gox traded it for 588.5. Whereas the best bid is $580.2, the best Ask stands at $580.21.

The unprecedented growth in Bitcoin’s price is amazing. The market observers who had believed that after the seizure of Silk Road by the FBI, there will be downturn in the demand of the virtual currency; however, what they see happening now is contrary.

Many observers admit that it’s very hard to predict or explain why Bitcoin has spiked, particularly, when it does not have the liquidity of traditional financial assets.

The U.S. Senate Committee on Homeland & Government Affairs Meeting Today
As it was decided earlier the last week, the U.S. Senate Committee on Homeland Security and Governmental Affairs would meet on Nov. 18 so that they could explore potential promises and risks related to the virtual currency for the federal government and society at large, Bitcoin will be open for scrutiny today. It is learned that there will be pages and pages of explanations and definitions in today’s meeting.

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The hearing which has been titled, “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies,” is expected to be attended by the witnesses who will testify about the challenges facing law enforcement and regulatory agencies. It is also expected that several other ‘non-governmental entities who can discuss the promises of virtual currency for the American and global economies too will be participating.

The government is mulling plans to track down Bitcoin which according to it is being used for contraband activities including of drugs selling. Silk Road was seized precisely because it was undermining the existing law and selling drugs in exchange of Bitcoin with impunity as all transactions were anonymous. Now Bitcoin is going to be tracked by government and will be perhaps the least anonymous currency which is its major feature.

It is interesting that whereas the Treasury refuses to define Bitcoin as a currency, a couple of months ago a federal judge held that Bitcoin was indeed currency. The conflicting views within the government get even more conflicting when Internal Revenue Service comes to scene which is looking for an opportunity to detect virtual-currency tax heavens.

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