Bitcoin value spikes after hacker demands ransom in the currency

Sometimes a hack has unexpected outcomes. Today, a hacker who claims to have obtained Mitt Romney’s tax returns is demanding a ransom of $1 million in Bitcoins. The hacker probably didn’t expect to improve the market for Bitcoins overall, but that’s exactly what happened, as the value of Bitcoins spiked about 6 percent today, from $10.40 per Bitcoin to about $11 per Bitcoin at the end of the day.

Bitcoins are an electronic currency unregulated by any central authority. Users are self-policed and receive instant payments of Bitcoins through an encrypted process that verifies each transaction and does not allow it to be undone. Bitcoins are difficult to exchange for actual dollars, but are otherwise a very private way of exchanging cash. This makes the currency preferable for those who don’t wish to be identified.