Bitcoin was born as an idea of establishing a simplified and reliable virtual currency on the net. It was established in 2008 by Satoshi Nakamoto. Only one year later, more than 1.6 million bitcoins had been mined. The vast rise of bitcoin has continued to grab global heed as people examine its viability.
Bitcoin has came at the right time when people have lost faith in the world financial system. Many enthusiast hail the rise of bitcoin as the future of ecommerce. In dealing with ecommerce, people seek a currency that are low cost, low risk and more accessible form of payment.
The popular payment by credit card were never designed for internet market. Major issues like payment fraud and identity theft has made people reluctant to engage in online market.
Pros and Cons of Bitcoin
One of the user negligence in online transaction is personal data verification. In this regard, Bitcoin offer best solution where bitcoin holders not necessary to verified personal data when shopping online. On the flip side, this condition has also made speculation that Bitcoin will use for non legal transaction. The tax implication and the absence of regulation of the Bitcoin stand next as impediments.
There’s no same regulation applied to the use of Bitcoin. Germany and United States of America recognized Bitcoin as an option of private digital currency. This mean, Bitcoin only applies on limited community for limited transaction rules by the community. In Asia, People’s Bank of China has released a ban on the use of Bitcoin that deem it has no legal status.
The other cons is volatility and there is evidence of the volatility value of Bitcoin. In January 2013, one Bitcoin was worth around $13, then increasing in November to an astonishing high of more than $1,200, near the price of an ounce of gold. But since then, its value has decreased to around $910.
Despite of the kinks in the system of this online currency, Bitcoin’s nature makes it attractive for online business. Bitcoin might be a default system of payment on the net. Using Bitcoin we are not necessary convert currency to make trans-border transaction that involve two or more currencies. There’s also fact that the mechanism of payment using Bitcoin is a distributed network. This mechanism completely different with the conventional mechanism runs by credit card or even Paypal that use data center to process customers data.
What’s the Future of Bitcoin?
It is a digital payment system that has bright future in global ecommerce platform because it offers instantaneous payment mechanism. Bitcoin has to find a way to reach understanding within global payment system to provide simplicity and overcome the problems (the cons) that makes majority people reluctant using it as digital currency.