The value of cryptocurrency Bitcoin has moved beyond that of gold for the first time in history. Yesteday markets closed at $1,268 per bitcoin unit against $1,233 for a troy ounce of the precious metal.
Bitcoin’s enhanced performance reportedly has to do with a rising demand for the virtual currency in China. However, local authorities have enforced stricter regulations as regards bitcoin operations in an effort to prevent massive leakages of money out of the country.
A Forbes report reveals that the market capitalization of Bitcoin is at an all-time high level, currently standing at over $20 billion. Despite amplitudinal highs and lows, the value of Bitcoin has been consistently rising since the beginning of this year.
The American Securities and Exchange Commission (SEC) is currently considering an application for a bitcoin ETF submitted by Tyler and Cameron Winklevoss who are in charge of the Gemini cryptocurrency exchange.
If regulatory clearance for the ETF is obtained, a minimum of $300 million is estimated to be converted into virtual currency only during the first week of operation of the prospect fund.