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Bitcoin Jumps as Q.E. Continues in the U.S.

July 11, 2013 at 18:10 by BitcoinNews

Bitcoin traded as high as US$90 on Mt. Gox, after a huge rally of $13 Wednesday from a base around $77. It has settled back at $86, though a number of other exchange didn’t appear ever offer Bitcoin for more that than yesterday, diverging with the brief price-gouging at Mt. Gox, which, as the highest volume exchange, continues to hold appeal for speculators.

In the news, Fed Chairman Bernanke said in the monthly rate announcement that the U.S. continued to require support from Quantitative Easing, and markets rallied, with large jumps in the prices of precious metals as well. So, no surprises there, though as he hinted last month that Quantitative Easing would some day come to an end, bonds fell and interest rates climbed.

Of more importance to the Bitcoin network, the Genesis Block reported that a massive shipment of ASICs from Avalon would provide 150 TH/S, which is more than the entire network speed at the end of May, and provide a 40% increase over current hashing power of 225 TH/S. However, that was only an estimate for 24 boxes.

If TGB is correct that in fact 135 boxes were shipped, their estimate rises to 842 T/S, which would provide a 500% increase in the network speed. This represents a tremendous increase in processing power, but the chips have yet to be set in the boards, which have yet to developed. Finally, they’ll get tested and shipped to customers, which is probably as least a couple weeks away.

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