Bitcoin, the virtual currency, crossed the $1,000 level again after Zynga Inc (NASDAQ:ZNGA) accepted the currency as a mode of payment. On Monday, Bitcoin was trading close to $1,030 on MTGox, which is one of the major exchanges of virtual currencies.
Bitcoin gaining acceptance
The social game maker has started accepting Bitcoin as a mode of payment for its selected web based games, which took cryptocurrency to new levels, according to exchange Mt. Gox.
Prior to Zynga Inc (NASDAQ:ZNGA), Ouya, an Android-based video games console maker, accepted payments in Bitcoin for its hardware last month. Also, in 2013, the Humble Bundle, which is an organization dealing in changing selections of Indie games started accepting payments in Bitcoins.
Bitcoin has received major backing from some institutions that are trying to make use of Bitcoin more popular. Last year, Bitcoin received support from a US Senate Committee, who approved the currency as a “legitimate financial service.” This year, Zynga Inc (NASDAQ:ZNGA) entered into a deal with BitPay, a Bitcoin payment service that will let users buy virtual goods in selected games by making payments in Bitcoin.
“In response to Bitcoin’s rise in popularity around the world, Zynga, with help from BitPay, is testing expanded payment options for players to make in-game purchases using Bitcoin,” the firm said in a post on Reddit.
Concerns over Bitcoin popularity
Back in November, Bitcoin achieved the $1000 mark, but soon deflated after a series of setbacks including a new set of regulations for BTC China, the world’s largest exchange. On December 18, the currency touched a low of $435.
Some have expressed their concerns over risks related to the use of virtual currency. In its statement, last week, European Banking Authority said in a cautious tone that at present there are no tailored regulatory protections exist in the European Union that are capable of safeguarding the consumers from financial losses if a platform that manages the transactions of virtual currency fails.
China also placed restrictions on its banks from dealing in Bitcoin or handling transactions as the country recognizes that the virtual currency has no legal backing and thus the use should be avoided. The South China Morning Post reported earlier that the currency shed major value and traded as low as 2,560 Yuan in December after China took certain steps.