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The New Year is starting out well for the bitcoins. The digital currency is valued over $1000 for the first time in the past three years. This increase in value for bitcoins proves that it has outperformed all other central-bank issued currencies with a 125 percent climb.
What is a Bitcoin? Bitcoin is a web-based “cryptocurrency” and what makes it special is that it truly relies on thousands of computers across the world that validate transactions and add new bitcoins to the system. Bitcoins have no central authority.
The digital currency has been highly volatile given the Tokyo’s Gox exchange hack which saw it plunge under $400 in the following weeks although it has been stable for the past two years.
Bitcoins is used to move money around the world within no time and anonymously. It does not fall under any authority.
What makes it so attractive is that people can get the money around with no capital controls like China’s.
It can be helpful for countries that lack supply of cash. Like in India, where high valued currency note were banned by Prime Minister Narendra Modi to curb corruption and terrorism.
Reuters reports that there are more Bitcoins in circulation since bitcoin is still some way off the all-time high of $1,163.
It is also may appeal to those worried about a lack of supply of cash, such as in India, where Prime Minister Narendra Modi removed high-denomination bank notes from circulation in November. Its total worth is at a record-high above $16 billion, putting its value at around the same as that of an average FTSE 100 company.