The price of the virtual currency Bitcoin is surging after interest from China and Wall Street which has helped to lock off a new speculative frenzy. The price of a single Bitcoin has been gradually increasing in recent weeks.
Reports on Wednesday showed that the price of Bitcoin increased sharply, making it to reach above $500 at some exchanges. This rise brought the value of a single coin up by over 100% from a month ago.
Reports showed that by the end of Wednesday, price of the Bitcoin again dropped back closer to $400. The recent rally has been the biggest since the currency entered a sustained decline after the collapse of Mt. Gox, in early 2014, which was once the biggest Bitcoin exchange.
It has been told that the use of Bitcoin for sale of drugs caused many people to write off the virtual money. However, several banks and financial firms have been continuously studying the technology behind the scenes.
Some of them have recently showed their interest in technology and have also announced new investments in the technology underlying Bitcoin.
A surge in demand has also been noted in China. The country’s growing interest in Bitcoin has been due to a number of factors, including the drop in the stock market, and the emergence of a new Ponzi scheme tied to Bitcoin.