There are doubters of course even in the face of the irony: That while the Internet has affected almost every part of our lives as promised, it has done little to affect the traditional assets of commercial exchange.
This is not the place nor the space to explain how bitcoin price has come to be, how they are mined, the complex math algorithm behind their control or how they have both skyrocketed in value one day and plummeted the next.
Bitcoin Price and its history :
In 2011 the value of one bitcoin rapidly rose from about $30 to $32, before falling back down to $2. Then on 19 November 2013, the value of bitcoin on the Mt. Gox exchange soared to a peak of USD 900 following a United States Senate meeting where it was announced that virtual currencies were a legitimate financial service. There are roughly 12 million bitcoins in existence as of November 2013. And yet it is both, the public opinion and the economic meaning of what constitutes money that will determine bitcoin price acceptance.
Successful Transactions and Currency Manipulations :
Any article, bitcoin, gem or device that is broadly accepted as a form of a ‘third party exchange’ – meaning other than direct barter – and has the means of ‘holding value’ constitutes money. Now the value may rise or fall as we often hear of foreign and domestic currency manipulations, but the “money,” be it the US dollar, the euro, gold, etc.