The Bitcoin is a rather interesting form of currency. It’s a virtual currency not issued by any government and can only be spent online. The currency has been very hot with the total value of Bitcoin passing $1 billion late last month. However, things haven’t been going so well for Bitcoin recently.
This week the value of Bitcoin crashed significantly after reaching $265 per unit on Wednesday before crashing to $105 per unit the same day. The price eventually stabilize at around $150 per unit, still making it worth $100 less than where it started the day. To help preserve the market, Mt. Gox, the largest Bitcoin exchange in the world halted trading recently to allow the market to cool down in the wake of the price drop.
Another interesting thing about Bitcoin has come to light recently and has to do with the Winklevoss twins. You may recognize the name from the Facebook battles where the twins attempted to lay claim to some Facebook technology. The twins have now claimed that they own 1% of all Bitcoins in circulation.
There are currently 10.8 million Bitcoins in circulation meaning that the Winklevoss duo owns approximately 108,000. With a significant price drop this week, it probably doesn’t seem like the best time to own such a huge chunk of the virtual currency. However, reports indicate that the duo begin purchasing the digital currency last summer when the highest value reached was $15.40. That means the twins are still doing very well with their virtual currency investment.
[via Business Insider]