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That is to say that many users (likely traders) despite the quantifiable known risks of trusting exchanges still prefer to store bitcoins on virtual currency exchanges. Or to look at it another way: exchanges end up with many stagnant bitcoins and what this likely means.
Find out more Copyright, Metaquot;s Ltd. Metaquot;s Software Corp. is a software development company and does not provide investment or brokerage services.
The recent surge in bitcoin has been attributed to a growing sense of legitimacy, demand in China, venture capital investments in bitcoin companies, and an open-ended bitcoin trust run by SecondMarket. Bitcoin has no central bank and is created through a process called mining in which a computer solves a cryptographic problem, which become more difficult over time. That is key because the supply is capped at 21 million. Bitcoin traded around 13 at the beginning of 2013 and its rise has come even as gold has fallen this year.
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