Members of the public browsing bitcoin information at home

Members of the public browse bitcoin information at home. A virtual currency worth 1000 dollars! Bitcoin is still on the road to a big appreciation. Yesterday, Bitcoin continued its recent rally and successfully topped 1000 dollars, the first to break the thousand dollar mark since the virtual currency was created.

Does this mean that Bitcoin is becoming more and more recognised, or is bitcoin becoming a huge bubble?

Since this year, Bitcoin has risen by more than 7,600%. This is a gain that is hard to see on any traditional investment. "This rise may really have a lot to do with Chinese investors," he said. "In fact, a lot of analysts thought that Bitcoin would have a round of declines, but unexpectedly there was such a crazy rally," said a head of the Bitcoin website.

Indeed, the influx of Chinese investors is indeed seen as the initiator of the recent surge in demand for Bitcoin.

"I opened a thousands of people have been full, the next new discussion group, also four or five days time, already 390 people came in." Said the head of a bitcoin website. But it is worth noting that there seems to be not many of these investors who really understand bitcoin. "It's estimated that half of them are novices in bitcoin." ”

While many analysts and investors have labeled the "bubble" of Bitcoin's madness, there has been a growing awareness of Bitcoin as a digital currency, and last week's Senate hearings paved the way for Bitcoin's rally.

The U.S. Senate held hearings on the virtual currency on November 18, hinting that it would accept Bitcoin as a legitimate means of payment. The result eased fears that the US government might take steps to prevent people from using Bitcoin. A major obstacle to the use of Bitcoin has been eliminated.

January 3, 2009, a hacker named "Zhong Ben", published the first version of the open source Bitcoin client on the network. How can a group of computer data circulate, or even be called a currency, that is not a central bank issued by the virtual currency how to ensure security, and how to avoid excessive and junk?

Unlike most current currencies, Bitcoin currency system is independent, its operation does not depend on the central bank, the government, the large enterprise's support or the credit guarantee, it is based on a set of cipher code, through the complex algorithm generation; This cryptography based system first capped the circulation of Bitcoin, That is, a maximum of 21 million, which eliminates the risk of monetary excess being inflationary; it also ensures that each bitcoin is not falsified and copied, and that it can trace the whereabouts of each bitcoin so that it is not used to repeatedly pay.

Bitcoin is now increasingly available in the real world. At present, the global acceptance of Bitcoin merchants and restaurants reached 7,500, especially in Europe and the United States, Bitcoin received a relatively high degree of recognition.

In theory, with the growing confidence in Bitcoin, markets are beginning to recognise their intrinsic value as a means of exchange, which will eventually stabilize the long-term value of the Bitcoin currency. But the sharp plunge in the price of Bitcoin is a mystery, and investors need to be wary of the risks while seeing huge gains.