Bitcoin Skyrockets To $900, Then Plummets To $650 In 30 MinutesMonday Government Hearing Sends Currency Soaring |
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On Monday, there was a hearing on Capitol Hill to talk about the benefits and risks associated with virtual currencies, most notably bitcoin, and reports of the meeting sent bitcoin’s value on a huge upswing. In the hours after the hearing had ended, bitcoin had reached an all-time high of $900 on Mt. Gox exchange.
As Geekwire.com pointed out, bitcoin had reached the $400 level for the first time just last week. Its gains have been astonishing.
The massive gains around the hearing were a bit short-lived, as after reaching $900 bitcoin plunged to $650 in just about a half an hour.
As of Tuesday morning, the currency was trading at around $735.
The hearing was pretty positive for bitcoin, as officials testified that virtual currencies aren’t illegal, even though some use it for shady activity, but just probably need to be regulated. In other words, bitcoins gained some legitimacy thanks to the three-hour hearing.
Bitcoins have found some use in the online poker community.
“Smart regulation” was preached by Jennifer Shasky Calvery, Director of the Financial Crimes Enforcement Network of the U.S. Department of the Treasury.
The nefarious uses of bitcoin have been scandalous.
In October, the FBI arrested the founder of Silk Road, an online marketplace allegedly used to buy and sell illicit products, including drugs. The U.S. claimed that 29-year-old Texan Ross Ulbricht took out a hit on a former user, in addition to committing a slew of other crimes. Ulbricht also is accused of wanting a former employee killed for fear he would rat on him to the cops. In the latter case, the supposed hitman was an undercover agent. Silk Road users used bitcoins.
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