Download now: Gold and Silver Mining Stocks

Virtual Currency Hurting Central Banks?

Bitcoin Gains Popularity

Written by Swagato Chakravorty
Posted January 29, 2013 at 5:08PM

Bitcoin, the world’s biggest virtual currency, may be becoming a serious player. Its value has been increasing, leading to concerns that it could actually pull down the value of real-world central banks.

In the past year, per Bloomberg, bitcoin value has gone from $5.88 to $16.37. A report by the European Central Bank last October indicated such virtual currencies can have a detrimental effect on central banks and their effect on the real-world market.

Remarkably, bitcoin value shot up 55 percent after that report’s publication.

Johns Hopkins University professor Steve Hanke thinks “the ECB obviously is concerned,” as he told Bloomberg, considering how easy it can be to use a virtual currency like the bitcoin.

More intriguingly, bitcoin gained a lot of popularity in Iran last year, Bloomberg reports, due largely to the difficulty of acquiring dollars and the low value of the rial.

It’s hard to say where this is going, but we’ll definitely be keeping an eye on the bitcoin.

Related Articles

Bank of Japan Stimulus Pushes Gold Higher
The Bank of Japan announced it would add the equivalent of $126.7 billion to its asset purchases, sending gold higher on Wednesday...
Government Condones Banking Crimes
What HSBC, UBS, and all the rest do to you and millions of others on a daily basis is far worse than any shooting could ever be. Those in power know it, and condone it.
Germany Starts a Central Bank Run
Everything the Bundesbank does is close to perfection. The very fact that it is calling in its gold is monumental in terms of questioning the "full faith and credit" of the United States Treasury...


What is the benefit of the email subscription?
While the Wealth Daily website offers access to the articles and reports, as a newsletter subscriber you will be among the first to receive access to the valuable advice, delivered directly to your inbox daily, and you will have access to deals on our exclusive services.
Who Owns Most of the World's Gold?
4% of the World Controls 12.6% of the Gold
Volkswagen: The Dumbest Car Company on the Planet
Will Volkswagen Expedite the Demise of the Internal Combustion Engine?
Organic Farmland Investing
Marc Faber and the Millionaire Farmer
There's No Escaping Austrian Economics
Fed Bubble is Popping
The World's Biggest Cash Crop