Bitcoin's USD1000 mark on Mt Gox signals windfall for early investors

By Rizza Sta. Ana

Nov 27, 2013 11:27 AM EST

November is an amazing month for virtual currency Bitcoin. On the most popular exchange for trading Bitcoins for dollars, Mt Gox, the value of the Bitcoin reached its highest level ever, trading at USD1,000 on the virtual currency exchange. The thousand-dollar record was deemed psychologically significant by The Washington Post, as it will signal a massive windfall for early investors of the virtual currency.

Gavin Andresen, who is lead developer of the Bitcoin, for example, acquired 10,000 bitcoins for USD50 early on, and had been known to give away one Bitcoin at one point on Bitcoin Faucet. The newspaper deduced that Andresen's Bitcoin lot would now be worth USD10 million should he had held on to his coins.

Olympic rowers the Winklevoss brothers, who were famous due to a high-profile dispute about the establishment of social networking company Facebook Inc, was able to amassed a total of USD11 million in Bitcoins in April of this year, when the value of the Bitcoin then was around USD120. Early this month, the Winklevoss brothers's Bitcoin trove would have swelled to around USD32 million based on the current trading price then. For today's trading price, the value of the twins' holdings would be tripled to around USD90 million.

The value of the Bitcoin in November was just over USD200, the Washington Post said. By the middle of this month, trading value soared to USD400. Around the time when regulations about virtual currencies like the Bitcoin were discussed in US Senate hearings, the value of the Bitcoin rose to USD900 briefly.

On the other hand, The newspaper noted that prices of bitcoins in tradng exchanges varies. The paper highlighted the fact that Mt Gox, despite being the go-to trading exchange of bitcoins, did not make it easy to withdraw actual dollars from the conversion of bitcoins. This, said Washington Post, was deduced that trading prices on Mt Gox are at a premium relative to other exchanges. On Bitstamp, the second most popular trading exchange for virtual currencies, current trading of Bitcoins had put the value of the digital currency at USD950. China's BTC-e trading exchange saw trading value of the Bitcoin at USD915.

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