Demand Surges As Risk Appears Minimal
Old Fitzroy Pub is the First in Australia to Accept Bitcoins (Photo: Getty IMages)
With both the popularity and value of Bitcoin soaring (in spite of rapid, fierce price corrections that quickly subside), central banks around the world have taken notice. While some banks feel threatened by what is described as an alternative currency, the central banks around the globe this week were busy making waves in the world of Bitcoin. However, no central bank has outlawed transactions in Bitcoin, although the Chinese central bank this week issued a ruling that the country’s banks shouldn’t get involved in Bitcoin.
This caused another fierce selloff on the major Bitcoin exchanges. Bitcoin proponents welcomed the brief decline as a buying opportunity.
The Wall Street Journal reports:
“While the Chinese government doesn’t officially recognize bitcoin, buyers there are nonetheless helping to fuel a boom in the four-year-old virtual currency. Bobby Lee of BTC China, the country’s largest bitcoin exchange, tells Jake Lee what is fueling the high demand.
At the same time, a currency analyst issued a positive outlook for bitcoin investors, while a university in Cyprus announced it had accepted its first tuition payment in bitcoin.”
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