Bitcoin Popularity: A Currency Revolution?

November 29th, 2013 at 7:15 pm
 


bitcoin

Just a couple of years ago, most people in the financial sector may not have heard of Bitcoin, the digital currency that is currently becoming a rage. In a matter of months, this fledgling digital currency has received quite an amount of publicity that has driven its name at the forefront. Suddenly, this little-known digital currency became an attractive investment for many speculators. The sudden flood of publicity is the driving force behind Bitcoin’s popularity surge. It is funny how people became attracted to it based on publicity alone and not from the knowledge they have about it.

For those who still do not know a lot about Bitcoin, it is an open source peer-to-peer network of electronic currency and payment facility. It was just introduced just around 2009 and the idea eventually caught on with initially just a handful of people fascinated by its potential. Fast forward to the present, and you see that a lot of people suddenly find it appealing, even without understanding how it works. It now becomes an object of desire among investment speculators.

As a currency, bitcoins may currently be not that widely accepted yet. But slowly by slowly, more and more businesses are beginning to accept it as a means of payment for physical products and services. As its acceptance extends to other businesses, it will only become even more popular. But for now, only speculators and its ardent supporters try to see it as a worthwhile investment of sorts. And who wouldn’t be interested? Just days ago, the value of a bitcoin reached above $1,000. That is from a low of $0.30 per bitcoin from couple of years ago.

Its volatility and rapid price changes make bitcoin an area for speculators for now. But at this early stage, people are now seeing its potential, not only as an attractive investment but also as an accepted currency. An advantage that bitcoin currently enjoys is the lower fees that each transaction charges compared to the hefty ones charged for credit or debit card transactions. It becomes an interesting option for money transferring purposes.

With all this hoopla, there are some things that people should still be aware about bitcoin. Aside from its volatility, acceptance as a currency still remains to be seen. But the way this digital currency is structured, some businesses may have some qualms as to its function as a digital currency. After all, a bitcoin is basically all data, its value not really backed by something of physical value. Its value is currently being driven by demand and public interest. It is easy to become weary about its long-term worth and value. But for now, bitcoin remains to garner more and more interest in various international markets and even regulatory agencies. That somehow continues to give it some sense of credibility. But it is too early to tell whether this interesting idea of a digital currency will take off to new heights.

 

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