Shares of the cyber-currency bitcoin have surged in the past week as investors seek safe havens following the unprecedented bailout of Cyprus’ banks. Bitcoin is an unusual place investing in bitcoin cash seek security.
It’s a four-year-old digital currency developed by a hacker who still remains anonymous. Depositors in the tiny island nation of Cyprus are struggling to gain access to cash stored in the nation’s banks, and some face losses on their deposits. The situation has caused investors all over Europe to question the safety of the banking system. Cyprus began discussing tapping deposits as part of the bailout by the EU and IMF.
47 on March 16, 2013, according to data from Mt. Gox, the currency’s main trading exchange. That compares with just 5 cents per bitcoin in mid-July 2010, when Mt. Between 60,000 and 110,000 bitcoins have changed hands per day recently, according to Mt. That’s double to triple the amount traded a few weeks ago. He’s not worried about the safety of the global banking system, but he sees bitcoins as a lucrative investment.
I think the currency is maturing,” Hendriks said. It’s risky, but I think more and more people are starting to trust it. Some vendors are starting to accept the coins too, including the blog hosting site WordPress and the online community Reddit. Jeff Berwick, a media entrepreneur who runs the website Dollar Vigilante, hopes to open one of the world’s first bitcoin ATMs in Cyprus in the next few weeks. The ATM there would allow individuals to retrieve cash for their digital bitcoins or put cash into the machine to add to their bitcoin collection.