Blockchain

Bitcoin, I must have heard about that. But, what’s it all about?

Candela LabsSr. Marketing Manager (Digital Marketing & Branding)

For  a while now, we have been using real money centralized by the banks and backed by our respective Governments. Outside of real money based transaction world there is a virtual money based transaction world which is gaining popularity called Bitcoin. Bitcoin is a form of cryptocurrency found in 2008 and has since then survived and has been accepted by online merchants around the world as real currency.

To put it in simple words and yet say what Bitcoin is capable of, we can say “Bitcoin is to Banks what Email is to Post Offices.” Bitcoin has a mass appeal and due to its deregulation, irrespective of where you reside you can start using and trading through Bitcoins.

Bitcoins are traded on Bitcoin based exchanges just like how international and local currencies are traded at the exchanges. As of August, 2013 the value of 1 Bitcoin is equivalent to $110. Unlike other currencies the value of Bitcoin has not stabilized yet because of the controversies revolving Bitcoin usage.

In early 2013, Bitcoin based exchanges like Instawallet faced a severe outage which forced users of Bitcoin to go in to a panic mode and they started selling their Bitcoins in frenzy. Panic selling caused the devaluation of Bitcoin currency and the worth of Bitcoin currency got devalued by almost 50%.

Irrespective of all the outages, hacks, controversies surrounding Bitcoin, this currency form has survived and has been talked about by leading analysts and news media around the world. Taking cue from what virtual money which is decentralized is capable of companies like Amazon has introduced their own currency system called Amazon Coins. This new development has made me think, will this give birth to a Brand backed Currency system?

LTP View: Jumping on the bandwagon of trading Bitcoins is getting in to a high risk to rewards situation. There have been talks that the usage of Bitcoins will be banned but nothing significant has happened yet. If you’re a early adopter we would suggest you to take the risk and start mining the Bitcoin trend. If you’re of the cautious kind, this is a time to wait and watch as the security system around the trading of Bitcoins has not been stabilized yet.

Vaseem Khan

Candela LabsSr. Marketing Manager (Digital Marketing & Branding)

Vaseem Khan is a founding member and a primary author at MEDICI. He is a Payments enthusiast and an avid reader. He loves being involved on initiatives related to Technology, Startups & Payments. He has been associated with companies like Gallup as a Management Consultant and Oracle as an Account Manager.

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