China is hungry for bitcoins, as currency hits record high

BY newsdesk  November 12, 2013 at 5:22 PM EDT

Flickr user btckeychain

Photo by Flickr user btckeychain

CNNMoney reports that the price of one bitcoin hit a record $395 Saturday on the Mt. Gox exchange, which allows user to exchange their legal tender for the digital currency. (At the time of this writing, the currency rested at $365.) In December 2012, one coin was worth only $20.

And the cause for the dramatic increase in price is Chinese demand.

International Business Times reported that by the end of September, the amount of bitcoins traded in the country was up 24 percent from only three months earlier and China’s transactions accounted for 30 percent of bitcoin trading in the world.

Not all bitcoin-related news out of China has been good. RT reports that in October, the Chinese bitcoin trading platform Global Bond Limited suddenly shut down, causing an estimated $5 million worth of bitcoin to disappear along with it, showcasing the risks that can be associated with the digital currency that is currently unregulated.

Bitcoin has been having a good year. The digital currency has been making a name for itself. It was the currency used in the Silk Road drug marketplace. More recently, a Norwegian man found that his $27 bitcoin investment yielded $886,000 after four years.

H/T Justin Scuiletti