The digital currency Bitcoin exchange rate appreciated above the 1,000 USD for the first time in three years. It overtakes all other currencies with appreciation of 125% recorded in 2016. The crypto-currency does not have a central monetary authority and relies instead on thousands of computers around the world that validate transactions and add new Bitcoin system. The Bitcoin rose by 2.5% to 1,022 USD based in Europe exchange Bitstamp. This is the highest level of the crypto-currency since December 2013.
The news agency warned that Bitcoin is highly volatile currency and recalls that two months at the end of 2013 it rose to over 1,100 USD, and then for a few weeks collapsed to below 400 USD because of a hacker attack on Tokyo-based electronic exchange trading Bitcoin Mt.Gox.
In 2016, the biggest daily movement of the currency was within 10% and although the last two years it is quite stable, having serious volatility compared to other currencies. In 2013, however, the fluctuations of the crypto-currency reached 40%.
During the last year Bitcoin boosted due to the accelerating demand mainly from China, amid a 7% decline in yuan last year. The crypto-currency is interesting for the Chinese customers because they do not fall under the control of any authority so they can circumvent capital controls in the country.
Now digital currency might be interesting for Indian customers after Prime Minister Narendra Modi withdrew high-value banknotes from circulation in November. Moreover, in circulation are increasingly added new Bitcoins, as 12.5 are added to the system every 10 minutes. The total value of Bitcoin is estimated at 16 billion USD, which is about the average of companies in the FTSE 100 index.
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