Bitcoin's decentralized nature is part of its appeal for Chinese investors. Because the government does not allow the yuan to float freely, analysts say the flock of funds into bitcoin may be less a vote of confidence in digital currencies than a no confidence vote for the yuan.
While the outcome of the Third China plenum earlier this month indicates that the government may be leaning towards a more liberal yuan policy, itBit CEO Richmond Teo doesn't believe it will dent demand for cryptocurrencies.
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"The liberalization of the yuan could actually help the adoption as people seek fast and low cost methods to transact," he told CNBC.
Star power is also keeping bitcoin at the forefront of the public imagination. The Winklevoss twins, of Facebook fame, are heavily invested in bitcoin and have lodged an SEC filing to establish the first ever bitcoin trust. More recently, Sir Richard Branson told CNBC's "Squawk Box" of his willingness to accept the virtual currency on Virgin Galactic, his space travel endeavor.
These public discussions are helping legitimize bitcoin, Murck says.
"The key imperative now is for companies and entrepreneurs to go about establishing the infrastructure necessary to make bitcoin a safe and reliable investment. Among exchanges, we're starting to see a move away from quantity to quality. Exchanges are becoming higher quality, better backed and offer safer and more secure infrastructure," Murck added.
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itBit, which recently raised $3.25 million to launch a NASDAQ-powered platform offering "bitcoin trading for serious investors," is part of this new wave of exchanges that appeal to investor preference for safety. itBit holds customers' bitcoins in an offline bitcoin wallet and offers security features including two-factor authorization and withdrawal delays.
Still, the million-dollar question remains – what is fair value for this fledgling currency that seems to know no limits?
"Fair value is difficult to determine... we believe it could be a multiple of what it is now," Murck said.
- By CNBC's Julia Wood. Follow her on Twitter @JuliaCNBC