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Currency Events, Financial Fundamentals

Bitcoin Business

Bitcoin

Bitcoin has been popping up in the news a lot lately.

Recently a Canadian mining company agreed to pay a contractor in Bitcoin. Alix Resources Corp. will pay Ridge Resources Ltd. for some work. “As Ridge completes the work, it will quote payment in Canadian dollars and Vancouver-based Alix will convert the price into the digital currency”

Along with that older news, “Bitcoin currency has been hitting some record highs. The price of a Bitcoin climbed to near US$700 this week, a price that is 50 times higher than a year ago.”

Bitcoin Chart
Who knows whether that value will hold. The exchange rate for Bitcoins is extremely volatile and the virtual, digital currency has attracted some negative attention. A notorious example would be its use as a means of exchange on Silk Road, an online marketplace for illegal goods that was closed by the FBI in October.

Yet Bitcoins aren’t going away. Governments are coming to terms with the fact that Bitcoins are emerging as a means of legitimate exchange.  An official with the U.S. Department of Justice this week told a U.S. Senate committee hearing that Bitcoins and other virtual currencies can be a “legal means of exchange.” A Bitcoin ATM opened in Vancouver last month.

Some people are still skeptical though. “I’m surprised someone’s willing to take payment through Bitcoins,” Brian Huen, managing partner with Red Sky Capital Management Ltd. in Toronto, which manages about C$220 million, said by phone. “I certainly personally wouldn’t take that currency for services I’m rendering.”

What is your take on Bitcoin?

Excerpts of this article were taken from Canadian miner to pay contractor in Bitcoins by Eric Lam of the Bloomberg News, and Governments ponder legitimacy of Bitcoins by Drew Hasselback of Legal Post; a branch of The Financial Post.

Tyler Brown
Financial Security Advisor
Life Insurance Broker
tylerb@riskman.ca
(519) 212-9859
@tbrown_101

Office: (519) 648-9580
Fax: (519) 489-2740
http://www.riskman.ca
244 Woolwich St. South, Unit #1 ~ P.O. Box 261 Breslau, ON ~ N0B 1M0

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