News / Science & Technology

Bitcoin Surges on Zynga Announcement

FILE - Mike Caldwell, a 35-year-old software engineer, holds a 25 Bitcoin token at his shop in Sandy, Utah.
FILE - Mike Caldwell, a 35-year-old software engineer, holds a 25 Bitcoin token at his shop in Sandy, Utah.
VOA News
The value of the battered virtual currency, Bitcoin, surged again in trading to over $1,000 as popular gaming company Zynga Inc. announced it would test allowing users to pay for the games using it.

In a post on Reddit, the company said it would be working with BitPay to offer “payment options for players to make in-game purchases using Bitcoin.”

Zynga is among the first widely known companies to accept Bitcoin, which has yet to become a viable form of payment with major retailers such as Amazon.com.

In late December, multiple bitcoin exchanges in India shut down operations after the country’s central bank warned about the currency.

Earlier that month, the value of the currency plummeted to below $500 when China announced it would no longer allow the deposit of yuan for the cyber currency. Much of the value of the currency had been pumped in China due to the feeling that the virtual money could be a way for Chinese to move their money offshore.

The Bank of France has also warned about the risks of the unregulated virtual money.

Bitcoin is not backed by any central bank or government. The value depends on public confidence in the currency.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month More

This forum has been closed.
Comment Sorting
Comments
     
by: Rashid Ahmed from: Mumbai
January 07, 2014 2:05 AM
I think the value depends more on the availability of the currency vs. the demand for it (as against people's confidence in it). Bitcoins have a limited availability and an upper threshold for coins issued. The Bitcoins are churned out through a process of mining (solving intricate and difficult math problems by people who dedicate computer time to this). Meaning that a bitcoin has a viable value based on multiple variables (including the time, energy and computing cost). Essentially, this puts Bitcoins into the 'classical' economic monetary model (which most of the world's banks do not support - because the banks can not issue new currency to 'regulate' and control Bitcoins). Look at it like the value associated with 'limited issue' comics, cars, jewelry, or even food (like the Cronut: a croissant-doughnut pastry attributed to chef Dominique Ansel who makes only 300 a day).

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Refugees Living in Kenya Long for Peace in the Home Countriesi
X
December 16, 2014 2:14 PM
Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.
Video

Video Indonesian Province to Expand Sharia Law

Indonesia has the world’s largest Muslim population and a legal system based on Dutch civil law and Indonesian government regulations. But in a 2001 compromise with separatists, Aceh province in Sumatra island’s north was allowed to implement Sharia law. Since then, religious justice has become increasingly strict. VOA correspondent Steve Herman reports from Banda Aceh.
Video

Video Some Russian Businesses Thrive in Poor Economy

Capital flight, the fall in oil prices and Western sanctions are pushing Russia's staggering economy into recession. But not companies are suffering. The ruble’s drop in value has benefited exporters as well as businesses targeting increasingly frugal customers. VOA's Daniel Schearf reports from Moscow.

All About America

AppleAndroid