Bitcoin – fad or the future?

Source: Jose Samuel Alonso Molina¸ PKF Malta¸ November 2013

Bitcoin is an electronic currency that functions without the intermediation of any central authority. This digital currency was designed by Japaneses in 2009 and was created to be used as a payment system exclusively on the Internet. It operates through encrypted alphanumeric addresses. To see how Bitcoin works¸ check below video:

The coin is not regulated by any financial institution; the value of this digital currency is determined by customer demand. In April 2013¸ the value of bitcoin peaked at $266 before crashing to a low of $50 soon after. In November 2013¸ it was traded at a record high of over $900 before falling to $502. Since then¸ bitcoin has seen many large fluctuations in its value. The U.S. Senate analyzes everything about Bitcoin¸ their pros and cons¸ but in no time dismissing it as an alternative to current foreign exchange system. This has helped to shoot up the price of the currency.

Note that China seeks to dominate the world¸ with the currency Bitcoin is an opportunity for a country eager for financial influence in the world. China’s fascination with the new currency is reflected in an estimated 40¸000 downloads per day and growing acceptance rate among a plurality of people¸ from online retailers to normal merchants located in Tiananmen Square. The largest stock exchange bitcoins in the world are in China¸ and one of the largest Internet companies in the world¸ Baidu¸ is integrating and using the Bitcoin.

There is much speculation about this currency. The fact is that its demand and popularity is on the rise. In addition¸ many investors have their eyes on it and like many businesses around the world are using it for their transactions. What is also a case for many companies in the gambling industry; it is use as a regular currency for their activities.

Some people have an opinion that Bitcoin is actually fulfilling a need for a new kind of currency¸ one that is as anonymous as cash but can be instantly transferred with no cost¸ hassle¸ or taxes anywhere in the world.

In the case of industry gambling there is an increasing demand and supply of sites that offer this digital coin to play and pay. Some of the most popular websites are¸¸¸¸¸¸¸ etc.

In just one weekend of gambling¸ a single Internet high rolled has taken home close to 11¸00 bitcoins (around 1.3 million). The man who is known online as Nakowa has tourned one of the Bitcoin’s most popular and profitable casinos into a loser.

Would you buy bitcoins?