Bitcoins: Is it the currency of the future or is it just another scam?
Bitcoins (BTC), also known as digital Bitcoin wallet is a type of cryptocurrency. The majority of the Bitcoin is said to be using a peer network system which regulates Bitcoin transactions and balances. Bitcoins has been referred to as a “peer-to-peer” electronic cash system. The processing of Bitcoin transactions is said to be secured by servers called “bitcoin miners.” The Bitcoin concept is said to be developed in the year 2008 and it was formally introduced in year 2009 by a Japanese developer named Satoshi Nakamoto. The issuance of Bitcoin is said to be of limited release. However, there is a report claiming Bitcoin has no central issuing authority, making it a real concern for people that invest in Bitcoins currency. There were also previous reports suggesting Bitcoin tradings and Bitcoin exchanges have caught the attention of both law enforcements and some regulatory agencies because of the anonymity and suspicious activity that can be associated in the transfer and trading of Bitcoin currency as in money laundering by criminal elements. Furthermore, it has been said that the rate of new Bitcoin creation will be halved every four years until there are twenty-one million Bitcoins in circulation worldwide. Although Bitcoin is promoted as a digital currency of the future, there has been some concern about its volatile exchange rate, relatively low-supply, as well as high risk of loss for people investing on it. Through various exchanges, Bitcoins are said to be bought and sold at a valuable price against the value of other currency. It has been reported that the value of Bitcoin has appreciated rapidly in relation to other major currencies including the British pound, euro and the U.S. dollar. In May 2013, there was a report claiming one Bitcoin traded at around one hundred twenty-five U.S. dollar. Meanwhile, despite the fact that Bitcoin remains an unpredictable investment tool it has also been reported that some employees of international banks and some major financial organizations have shown interest in Bitcoin markets as well. There was a report that the monetary value of Bitcoin as of June 2013 is in the vicinity of around 1.5 billion U.S. dollars. However, there are people who says cryptocurrencies such as Bitcoin is only a scam. Whether Bitcoin loses its steam on popularity or it could become more valuable in the months and years to come is anyone’s guess and remains to be seen.