Bitcoin, the cryptocurrency on everyone’s mind, is booming in value.Currently trading around $645 per coin, it has never been worth more, or generated more headlines that I can recall.The two are likely connected.If you can remember April, Bitcoin enjoyed a firm rally, spiking to around $275 per coin on the Mt.Gox market.It then fell to the $60s.That was the second Bitcoin rally.The first was quite a while ago, in June of 2011 according to the same dataset, with Bitcoin spiking to a then sky-high $30 or so.It later fell to the single digits.And so, in the first two Bitcoin rallies, we saw short-term spikes followed by sharp declines and price troughs.The gap between Bitcoin Rally 1 and Bitcoin Rally 2 was far longer than the distance between Rally 2 (April) and Rally 3 (now), but the pattern appears to be about the same.And oh, darling is Bitcoin putting on a show.For perspective, here’s a weekly Bitcoin chart, starting around July in 2010, to today: Kaboom, essentially.The current rally is being fueled by the usual combination of presumed scarcity, an overzealous investor class, and truckloads of optimism.

So, things will calm down in a bit, with a decent price correction.History teaches us that much.Also, can I sell you this tulip bulb.Bitcoin was given a boost of sorts recently from the words of Ben Bernanke, chairman of the Federal Reserve, speaking to Congress in epistolary format: [T]hese types of innovations [such as Bitcoin] may pose risks related to law enforcement and supervisory matters, there are also areas in which they may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.ethereum next stepSo that didn’t hurt.trade bitcoin to dogecoinThere is fear in the market that regulation of Bitcoin by the government could make it less anonymous, stripping it of one of its most important tenets.bitcoin multiple btc

For now, however, on goes Bitcoin.Buy another monitor, toss a chart on it.This is going to get fun.Top Image Credit: FlickrA UK water company is reeling in huge loss as a fraud ring have been discovered to have disappeared with at least USD645,000 from the coffers of the company.Using various tactics and tools, the funds were taken from the company’s account and converted into Bitcoin.bitcoin irc logsAccording to The Merkle, a further investigation revealed all affected accounts have been subject to a refund request for previous transactions.litecoin price fallingThe total funds are worth over 500,000 GBP, all of which were sent to two different UK bank accounts.litecoin wikiInterestingly enough, the two banks were a victim as well, as someone tricked them into sending over 90% of all the funds overseas.pb mining bitcoin

Transfers were made to international banks located in the Bahamas and Dubai.From here on out, the entire ordeal only becomes even more confusing.Somehow, the money was converted into Bitcoin and sent through an undisclosed tumbler service to erase the “taint” associated with the money.It is unclear whether or not the money has been retrieved right now, although it seems fair to assume the police have no idea where to look.bitcoin sierra chartBitcoin is not anonymous by any means, yet tumblers provide a certain degree of anonymity to help cover up tracks.litecoin coreAll of this goes to show Bitcoin is not necessarily facilitating organized crime by any means.The scamming itself was done using traditional bank accounts, which were then later used to buy Bitcoin and anonymize it through a tumbling service.Although this makes it harder to recover the stolen funds in question, it is doubtful the water supply company would have been able to retrieve funds through the banking system either.

The identity of the UK water company is still protected for investigative reasons.The challenge with this crime is that it might be difficult to get back the funds since they have been converted into Bitcoin.Open a trading account with AvaTrade 2.Fund your account 3.Choose between Bitcoin contracts 4.Start trading Bitcoin is the world’s first digital currency and it is expanding in popularity worldwide.Now, traders can trade Bitcoin with AvaTrade as the ideal asset in CFD trades.With our platforms – AvaTradeAct and MetaTrader 4 - you can trade this rapidly growing currency against the greenback, 24/5.Bitcoin is highly regarded among currency traders, and its volatile nature makes it ideal for CFD trading.Trade Bitcoin and cryptocurrencies at AvaTrade, and enjoy a generous welcome bonus up to 10,000 £/$/€.Bitcoin was the first digital currency to be created.It is also the most respected, capitalized and traded cryptocurrency in the world.Bitcoin trading is booming, and a big reason for this is the volatility of this cryptocurrency.

Currency trading allows for maximum yield when it is volatile – lots of ups and downs.This is precisely the reason global traders enjoy trading Bitcoin.Plenty of profitable opportunities are available when markets are volatile, and Bitcoin ranks highly with currency traders.The media plays a big part in the volatility of Bitcoin.Whenever a breaking story surfaces, Bitcoin volatility increases, and traders cash in.History has shown that Bitcoin traders and speculators routinely push this digital currency to the forefront of CFD trading.It is increasingly being used as the preferred payment option at merchants, for money transfers and for trading purposes.More traders are turning to Bitcoin trading than ever before, and that is why this cryptocurrency is inherently valuable.It is a high demand financial trading instrument, despite no association with governments or central banks.Bitcoins are mined with powerful computer hardware and software.A maximum of 21 million Bitcoin will be available, after which no further bitcoins will be produced.

The algorithm which governs the production of Bitcoin limits the quantity that will be produced, and the rate at which they will be produced.It is a finite commodity – there is a fixed amount, and that ensures that greater demand will always prop up the price.In this way, it is similar to other finite commodities such as crude oil, silver, or gold.Around 2008, Satoshi Nakamoto founded Bitcoin.At the time a paper was published through the Cryptography Mailing List.The first Bitcoin software client was released in 2009, and he collaborated with many other developers on the open-source team, careful never to reveal his identity.By 2011, the enigmatic Bitcoin founder had disappeared.His peers understood how valuable this cryptocurrency was, and worked feverishly to develop it to its maximum potential.By October 2009, the world’s first Bitcoin exchange was established.At the time, $1 was the equivalent of 1,309 Bitcoin.Considering how expensive Bitcoin is today, that was a real steal.Bitcoin traded at a fraction of a penny for quite some time, however things changed in 2010.