Bitcoin surged over 27 percent to a new high of $675 on Monday ahead of a U.S. government hearing on possible regulation of the digital currency. While not an official seal of approval, the hearing is giving some legitimacy to a payment mechanism that has been associated with illegal activities even as it gains acceptance by the general public and investment community. Witnesses at the Senate Homeland Security Committee hearing include officials from the Secret Service and Financial Crimes Enforcement Network and the Justice Department's Criminal Division. "The government is taking a very thoughtful and balanced approach to bitcoin and bitcoin regulation," said Barry Silbert, founder of the Bitcoin Investment Trust, launched in late September and valued at US$22.8 million on Friday. It holds around 53,000 Bitcoins. Bitcoin traded as high as US$675 on Monday on Tokyo-based exchange Mt. Gox, the best-known operator of a bitcoin digital marketplace. That was a rise of 27.7 percent
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