Bitcoin Tops $1,000

11 months ago one Bitcoin worth a little over $10

The value of a bitcoin has topped $1,000, a mere 11 months after the fledgling digital currency was worth little more than a $10 bill.

As of 7:25 a.m. Pacific time this morning, bitcoins were trading at $1,041 on Mt. Gox, the world's most prominent bitcoin exchange, a place where you can swap federal monies, such as dollars and yen, for the digital currency.

The price of a bitcoin has surged in recent weeks, likely driven by heavy demand in China and by public statements from U.S. financial authorities that seemed to endorse the digital currency — at least in part. Bitcoin prices topped $1,000 on a Chinese exchange last week, before hitting that mark on Mt. Gox, which is based in Japan but is used worldwide, including here in the U.S.

Comments

[Ted Levy]

No doubt Dread Captain Roberts is feeling a little pissed...

[MasterDarque]

Congrats to the early adopters. Not sure where this will end up but I am sure it will be a hell of a ride.

[Kyfho Myoba]

Comparing bitcoin with gold/silver and fiat currencies yields the following: bitcoin is an inferior store of value than PMs but vastly superior to FRNs, more easily divisible than either PMs or FRNs, more easily transmitted than PMs or FRNs, less accepted as FRNs (for now) but more than PMs, easier/safer to store than PMs or FRNs. This tells us that bitcoin will definitely supersede fiat currencies, especially as hyperinflation kicks in in 2014. The replacement of all FRNs with bitcoin gives a price of ~$1 million per bitcoin. For more information search youtube for "bitcoin 101"