Bitcoin appears to be hanging in there as the U.S. dollar price of the virtual currency is surging anew today, no doubt influenced by geopolitical unrest and some certainty about the fate of its once number one exchange Mt. Gox that has now officially gone belly-up.
This story in China Daily doesn’t hold out much hope for the currency over the long run, noting the current mania looks “worse than the Dutch tulip bubble that peaked in 1637, when tulip bulb prices skyrocketed before suddenly collapsing“. Interestingly, there are some critical comments about the virtual currency from an official from China’s central bank along with this curious cartoon where it’s not entirely clear what the gold bar is thinking.
According to the latest data from Coindesk, Bitcoins are worth nearly 20 percent more this afternoon than they were this morning and that’s a big part of the reason why its hard to take this currency very seriously as anything other than a grand experiment that has resulted in a speculative boom and partial bust.
From $13 last year to over $1,200 and then back to $0 if you happened to have dealt with Mt. Gox, the ongoing demand for Bitcoins is probably more a testament to how much people dislike government money than how much they like Bitcoin.