Bitcoin prices continue to rise, approaching April bubble levels

Nevada based company Robocoin has installed its first Bitcoin ATM machine in Vancouver.

Prices for the digital currency Bitcoin keep on steadily rising, as it did not seem to lose its luster after the Silk Road debacle and kept marking new recent highs at the end of October helped in part by a Chinese major corporation accepting it for payments. Quite on the contrary – the witch hunt by government authorities to minimize illegal transactions through digital wallets has been in the end interpreted as a formal legalization and resulted in a swift rebound and Bitcoin is slowly approaching April’s bublle levels with when it hit highs of more than $260.

The world’s first Bitcoin ATM has started operating on Canadian soil and we consider this to be an important milestone, as the event will further validate its ability to be legal tender. The event makes Bitcoins way more accessible to the public that is still in the process of becoming aware of this alternative investment and store of value. With more than 10 000 merchants using Bitpay’s services, hence providing real goods and services for Bitcoins, the feasibility of cryptocurrencies is on the rise.

As we have already mentioned a couple of CFD brokers like Plus500 being the first, followed by AvaTrade are already offering the digital currency for trading. With the business journal Upstart recently reporting that Bitpay have processed the largest bitcoin transaction so far, totaling $1 mln, one can draw the conclusions that we are getting into a “this is a real deal” environment.

After the German government formally legalizing Bitcoin, the digital currency is very likely to be soon an essential trading pair for forex brokers and binary option trading providers. The immense volatility in the USDBTC pair has all the potential to lure in some trading volume. The currency traded above $230 for the first time since April with transactions currently settling on one of the largest Bitcoin exchanges, Bitstamp at just about $215 per Bitcoin.

Bitcoin Chart

Challenges remain, as Bitcoin Magazine cited a paper by New York’s Cornell University researchers Ittay Eyal and Emin Gun Sirer that Bitcoin mining is vulnerable, due to the possibility of an “economic attack” which can threaten the decentralization of the currency. For more information – this is a link to the research paper. As we await the reaction of the community to these news, we can safely say that the currency is fast gaining more credibility by the public and very soon, settling in it might not going to be a strange life event anymore.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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