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Bitcoin exceeds $1,000 mark after Zynga accepts virtual currency

January 5
7:28 PM 2014

The price of Bitcoin on the Mt. Gox Exchange exceeded $1,000 once more, after Zynga Inc said it would be adopting the virtual currency for payment for some of its online social games, Bloomberg reported. Bitcoins were priced at $1,119 today on the exchange which trades the virtual money for dollars, euros and other currencies.

In late November, the price of Bitcoins first surpassed the $1,000 mark and reached a high of $1,238 on Mt. Gox on December 4. It dropped to as low as $640 after the biggest online market for the virtual money in China halted acceptance of deposits. However, as more merchants start to adopt Bitcoins to pay for different kinds of stuff like Gummi bears and smartphones, the price has since rebounded. The report said Zynga is the latest merchant to accept the digital currency.

In an email to Bloomberg, ConvergEx Group Chief Market Strategist Nicholas Colas said, "Bitcoin has been remarkably resilient in the face of all the bad news out of China. The strength shows a continued interest, which is a very positive sign."

The company's plan to test Bitcoin payments was first unveiled on a post on the reddit.com community website. This plan was confirmed by Spokeswoman Dani Dudeck of San Francisco-based Zynga, the report said. Zynga said players will be able to pay through BitPay. Zynga added, "We look forward to hearing from our players about the Bitcoin test so we can continue in our efforts to provide the best possible gaming experience."

The report also said that Victoria's Secret Stores has already signed up with Gyft, an application that allows users to purchase gift cards using Bitcoins. Overstock.com Inc also intends to start adopting Bitcoins next summer, according to its Chief Executive Officer Patrick Byrne. In an interview last month, Byrne told Bloomberg, "We think there's an underserved part of the market that wants to use Bitcoins and can't." 

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