Today, Bitcoin is a decentralized peer to peer crypto-currency. It is one of the most fascinating innovations in finance in at least the last hundred years. Bitcoin is completely determined by an algorithm and everything is open-source so there are no surprises. No central agency can control the supply of Bitcoin and the flow of transactions, it is all based on the math. The algorithm is well known and nothing can be stolen, only found. The amazing thing about Bitcoin is that no one knows the future of it, and the history of it, and who will be lucky enough to get in at a bargain in the future. But we sure can mine it, so long as the mining difficulty is known.
The future of Bitcoin is fantastic, and it is amazing how the people who understand it are able to make it so valuable. At the moment, Bitcoin is worth about ¼allion, and people spend a lot of time surfing the charts, trying to find where the price is going, and just how high it will go. It is incredible how few people bother with such a topic. People who understand digital currency realize that the price and value of Bitcoin is much easier to understand, and they can track the changes within a snap of a button.
Digital cash technology is about to make its debut on a global scale: The electronic money market known as the Bitcoin market will be introduced in major European and American stock exchanges this week, and the first Bitcoin ATM is set to go into circulation. Bitcoin is still in its infancy, but it is growing at a rapid rate, and things are sure to get a lot more interesting in the coming years.
I’ve always been a fan of the Internet and of course virtual currency since they first came onto the scene, back in 1999. I was so excited when bars started accepting Bitcoin as a form of payment. I thought it was the future of money. Bitcoin is so easy to use and track, and it doesn’t take a computer to track and store your account. You don’t need a credit card, iPhone, Visa, MasterCard, AmEx, or any other plastic money. There are few banks and credit card companies that Bitcoin doesn’t interact with.
At this point in Bitcoin’s development, it still isn’t too big. It’s increasing at about 25% per annum, but that increase in itself is quite static. The reason for the lack of Transaction volume is again the reason why I prefer online. I can give you an assurance that when you make your online purchase, that you’re happy it will be delivered to you via the internet. It works the other way too, as I bought some books online and so far have had no issues with delivery issues.
There’s a few things to explore with Bitcoin. I challenge the users to find out for themselves the advantages and disadvantages of Bitcoin. The first thing I’d like to see is how people engage with each other and how this new peer-to-peer style collaboration network handles spam emails.
OK, last time’s topic, the number of which soars to almost at unbelievable orbit, how many people invest their hard-earned money in this virtual currency? Your guess is as good as mine, but I’d venture a guess that a large percentage of holders of these virtual currency are truly invested, and some are borrowed money. To give you an idea of the financial risk, consider that if you put all your money in one account, you’re then exposed to 50 per cent risk of inflation – and all your money will be worth less in 6 months time.
Another issue is that Bitcoin isn’t regulated. Unlike real-world currencies, Bitcoin isn’t subject to any kind of official body. Unlike financial services, Bitcoin isn’t regulated by anything. There’s no central bank to monitor the system, there’s no Escrow System in place to protect your coins from theft, and there’s no registered identity to protect your privacy. Take a look at your wallet, and you’ll see your private address. This is your virtual address, and it shows everywhere alike. Websites likewallet. cryptsy.com show the most popular virtual currency wallets, and those that have a few too many.
Bitcoin mining happens where you connect your computer to the network. You’ll be mining for Bitcoin – just like with any other currency. You’re not doing it alone, though. As I said, there are many, many people who are taking part, and exchanges are thriving with the supply of Bitcoins. So get involved, if you’re that way inclined. It could be fun!