A unit of the digital cryptocurrency Bitcoin has exceeded the value of an ounce of gold for the first time.It closed at $1,268 on Thursday while a troy ounce of gold stood at $1,233.The current high is being attributed to surging demand in China, where authorities warn it is used to channel money out of the country.The past months' surge is a major reversal for Bitcoin, which plummeted in value in 2014 after the largest exchange collapsed.The value of Bitcoin has been volatile since it was first launched in 2009, and many experts have questioned whether the crypto-currency will last.Earlier this year, Chinese authorities cracked down on Bitcoin trading in an attempt to stop money flowing out of the country illegally.But the closer scrutiny from Beijing only briefly sent the currency lower.After it had soared to record highs in January, it has since picked its steady rise in value.Bitcoin is attractive to some users because of its anonymity, as well as its lack of government control.The website Silk Road was closed in 2013 following raids by the FBI and other agencies amid allegations of drug dealing.

Authorities seized millions of dollars worth of Bitcoin during the raids.Bitcoin is often referred to as a new kind of currency.Yet like all currencies its value is determined by how much people are willing to exchange it for.To process Bitcoin transactions, a procedure called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.For each problem solved, one block of Bitcoins is processed.In addition the miner is rewarded with new Bitcoins.To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.There are currently about 15 million Bitcoins in existence.To receive a Bitcoin, a user must have a Bitcoin address - a string of 27-34 letters and numbers - which acts as a kind of virtual post-box to and from which the Bitcoins are sent.Since there is no register of these addresses, people can use them to protect their anonymity when making a transaction.These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.

The value of the Bitcoin virtual currency has hit a three-year high with each one now worth about $900 (£730).At the start of 2016, single coins were only worth around $435 but their value has climbed steadily all year.The steady upward progress has continued despite regular hack attacks on virtual currency exchanges in which coins have been stolen.Experts said the rise in value was linked to the long-term depreciation of the Chinese Yuan.The Chinese currency has dropped about 7% in value during 2016, said Reuters.The majority of Bitcoin currency trading takes place in China as it allows people to skirt restrictive local laws that limit how much money Chinese people can swap.Charles Hayter, founder of the Cryptocompare website that watches virtual currencies, said global political uncertainty and Indian moves to control paper currency were also driving people to buy Bitcoins.If those trends continued, he told Reuters, many more people may be tempted to buy Bitcoins as they could be seen as a "flight to safety".

Hackers have also been tempted by the rising value of the virtual coins.In August Hong Kong-based digital currency exchange Bitfinex suffered a major hack attack in which bitcoins worth $65m were thought to be taken.Bitcoin values dropped about 10% when the news of the hack attack was made publicThe virtual currency has yet to reach the heights it managed in late 2013 when each coin was worth more than $1,000.ethereum forum redditThe total value of all bitcoins in circulation has now surpassed $14bn.bitcoin kaufen börseTech Drew Llewellyn bought his first Bitcoin in 2011.Over the years, he has paid up to £899 ($1,100) and as little as £14.70 ($18) for one Bitcoin, as the value of the digital currency has dramatically risen and crashed.But now, for the first time, one Bitcoin has topped the value of an ounce of gold.And Drew, who owns 18, is pretty happy about it.On Thursday night, the value of a Bitcoin closed at £1,036 ($1,268) while an ounce of gold stood at $1,233."Forbitcoin mining in uae

years critics have said Bitcoin will never last - that its value will drop, that it will never be adopted, and even that it's some kind of ponzi scheme," he told Newsbeat."Today's all time high is another example of how, year on year, Bitcoin is becoming more prevalent, reliable and valuable."Whatbitcoin bow faucetcan you buy with Bitcoin?Drew, who works in IT in North Lincolnshire, has used his Bitcoin to buy everything from a steam link (to play video games), to Amazon vouchers, to computer parts.He has an app called a Mycelium Wallet on his phone to buy things with Bitcoin, and a secure Trezor Bitcoin Wallet which stores most of his Bitcoin on a separate device (see photo below).But Drew mainly sees his stash as a savings pot and tries not to spend too much.bitcoin discarded sharesSo he's hoping this latest rise in the value is just the start of a bigger trend.He lost money in 2013, when the price crashed.bitcoin raw block data

But overall, says that he's made around £6,500.How does Bitcoin work?Bitcoin is a type of digital currency that operates completely online - the coins you see are just a novelty.Each Bitcoin is basically a computer file which is then stored in a 'digital wallet' app on a smartphone or computer.People can send a Bitcoin (or part of one) to a digital wallet, and to other people, and each transaction is recorded in a public list called a blockchain.Why do people want to use it?Like Drew, many people like the fact there's no central bank and that you own your money: "Any Bitcoin I own is entirely mine, it can never disappear."Hebuy bitcoin adelaidepoints to people who lost huge amounts of money in Venezuela and even in Britain, during the financial crisis.bitcoin symbol vectorBut he acknowledges that there are risks.ethereum fork