Bitcoin valuation surpasses that of gold for first time
Bitcoin’s valuation has crossed a significant psychological threshold with the digital currency now worth more than an ounce of gold for the first time.
The symbolic leapfrog occurred on Thursday when a single Bitcoin unit reached $1,268, topping the comparable figure of $1,233 for a troy ounce of gold, a landmark which analysts attribute to surging demand from China.
Bitcoin’s fortunes have fluctuated wildly in recent times amidst a succession of security scares, including a mammoth exchange theft just six months ago, which have periodically given investors cause to flee the crypto-currency for more traditional assets.
Despite this volatility, Bitcoin has been riding high of late on the back of rampant demand from China where authorities fear citizens are taking advantage of the system to send wealth out of the country, bypassing strict currency rules.
Bitcoin has become the currency of choice for internet seeking anonymity and a means of bypassing government oversight but its valuation is largely reliant on the degree of trust people place in it.
Bitcoin's reputation has been enhanced by the decision of Japanese e-commerce firm Rakuten to invest in a Belfast-based 'Blockchain research lab'.