Bitcoin – the future of money?

Bitcoin is a digital currency which Satoshi Nakamoto invented in 2008. At 7th March in 2014 one bitcoin was worth of 462.5 million euro so bitcoin is the world’s most valuable currency. One bitcoin can be divided into 100 million smaller units which are called Satoshi. Bitcoin is not issued by the central bank or any other concentrated quarter so according to the Bank of Finland bitcoin does not meet the formal criteria for the single currency. It is not counted as cash just a mean of exchange. (http://en.wikipedia.org/wiki/Bitcoin)

The Bitcoin is a system which allows you to do anonymous currency transactions and no one will come to know about the payment or about all other info related to the payment, including who sent it, who received it, etc. New bitcoins come to exist to bitcoin–network by mining process.So you get bitcoins by mining or exchanging them. If you want bitcoins, you need a bitcoin-wallet which you can install to your computer or you can use a web-wallet. (http://startbitcoin.com/)

Recently bitcoin has been very much in public and its popularity is growing all the time. I think the idea of ​​Bitcoin is really interesting, because it has a predefined maximum which is 21 million bitcoins. And because of this limited amount inflation does not affect to the bitcoin and the saving is so profitable. I think bitcoin will be in people’s everyday use of payment in the future.

In Finland, one of the software company SC5 has put bitcoin into operation and employees can choose to take part of the salary in bitcoin. The company’s customers can also pay in bitcoin. One worker told that he takes a couple of hundred per month in Bitcoin of his salary. He thinks it is a profitable investment because bitcoin value is on the rise all the time. (http://www.talouselama.fi/uutiset/palkat+virtuaalirahana++suomalaisyhtio+kokeilee+bitcoinvaluutalla+palkkojen+maksamista/a2175143)

However I would not dare to invest in bitcoin yet, because it is still such a new thing. I am not able to be sure does the value rise in the long term or how the money goes.Also, I am not sure about that bitcoin is not practical at all, it’s only available online currency. I am looking forward with great interest how the bitcoin develop in the future.

More about bitcoin:

https://bitcoin.org/en/getting-started

http://www.businessweek.com/news/2014-03-12/goldman-sachs-sees-bitcoin-s-promise-in-payments-over-currency

Video: What is bitcoin?

https://www.weusecoins.com/en/

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2 Responses to Bitcoin – the future of money?

  1. anttivuo says:

    The exchange rate for BitCoin was at close to 1000 € late last year, now it’s at ~300 €. MtGox going down probably means it won’t be coming back up any time soon.

  2. anttihnurmi says:

    Interesting thoughts. I believe that Bitcoin can not become a realistic alternative to current currencies until it becomes more stable.

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