For those of you not keeping up with this new online currency, scroll to the bottom for a little recap prior to reading this article.
Every business has their ups and downs. But this here is the outlaw currency. No governing body, no country, or area to tie it to. It has been used to buy sex, drugs, and hell probably even rock and roll. It’s new, it’s controversial, and someone just got real rich off of it!
If you haven’t gathered by now, I am talking about Bitcoin. It made headlines yet again last week when millions in Bitcoin went missing. The currency is facing a lot of scrutiny after this little mishap, and lots of Bitcoin owners are quite enraged. Some say that this should serve as a warning, while Anthony Di Iorio, the executive director at the non-profit organization, insisted that “the great thing about Bitcoin is that you can be your own bank and nobody has access to your funds.”
This incident, which was a mere website shutdown, appears to be an isolated incident. That being said, it still left many traders with empty Bitcoin ‘bank’ accounts.
One of the downfalls of this occurrence is the instability that some people may associate with Bitcoin. Lisa Kramer from the Rotman School of Management at the University of Toronto mentioned that “A centre point of any currency’s existence is that users have faith in the stability as a medium of exchange. This will decrease trust in Bitcoin.”
A startup downtown Kitchener has created an app for bitcoin. Terry MacLeod who is a founder said that “the startup developed an app that allows anyone with a internet connection and a credit card to buy bitcoin in a few minutes with six clicks of the mouse.” The app is called Tinkercoin, and it’s easier to use than amazon.com according to MacLeod. Of course such innovation doesn’t come without a price. The new, and one of a kind app will only cost you 6% of your transaction.
At this point buyer beware; bitcoins are easier than ever to acquire, but they still aren’t generally accepted in the area. I know, because I tried to pay for my meal the other day with them. There was some confusion.
RECAP – Bitcoin was stated in 2009 as an unregulated currency free of control from governments and central banks. There are an estimated 21 million bitcoins in circulation, but statistics on their usages are unavailable.
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