Bitcoin Regains US$1,000 Level after Zynga Announcement

After weeks of sitting in the US$700-$800 range, on 6 January the value of digital currency Bitcoin moved back over US$1,000 on Tokyo-based exchange Mt.Gox, after an announcement by Zynga. The social gaming giant revealed that it would begin accepting payments via Bitcoin, sending the virtual currency soaring to a high of US$1,093.

Recognising Bitcoin’s popularity around the world, Zynga teamed up with Bitcoin payment processor BitPay to test Bitcoin payment for certain web games, the company explained in
a Reddit post
.

Players will be able to use Bitcoin to make in-game purchases in games such as FarmVille 2, CastleVille, Hidden Chronicles and CityVille.

Bitcoin first topped US$1,000 in late November, and last month hit an all-time high of US$1,238 on 4 December. However a series of actions by the People’s Bank of China (PBOC) sent its value plummeting. On 5 December, the Chinese central bank restricted banks from using Bitcoin in transactions, declaring that it is not a true currency.

Subsequently, on 18 December,
the PBOC blocked China’s Bitcoin exchanges
from accepting new inflows of cash. Bitcoin sank to as low as $455 at the time, although it has since recovered.

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