posted on Nov, 1 2013 @ 03:06 PM
My mother text me this afternoon and told me to research bitcoins. "Bitcoins?" I asked, so off to google I went...
I remember hearing the word a few years ago and I knew it had something to do with virtual currency. I've even often thought what it would be like to
have virtual money in the future, electronic money similar to the electronic mail we send every day. The ability to tap your finger and complete a
monetary transaction faster than plugging nickles into a slot machine. However, little did I understand about how the currency system really works.
Little did I know about 'gold standards' and the backing of currency based on the country that prints it. Little did I understand too, how paper
money is printed endlessly without anything to really back it anyways. That was years ago.
I suppose all the skepticism surrounding the bitcoin can be summarized as the same skepticism that surrounded paper money when it was first
introduced. But we got over it. So, I got to reading this article:
Behold the power of the bitcoin
Bitcoin is a digital currency. It is essentially an open source piece of software that maintains a distributed, peer-to-peer accounting ledger of
all Bitcoin transactions. The Bitcoin network keeps track of who owns each Bitcoin, which prevents people from spending the same coin twice.
Bitcoins can be purchased using Canadian dollars, or any other traditional currency. Unlike loonies or dollar bills, Bitcoins are stored
electronically. When purchased from an ATM, the machine will print out a ticket that allows the purchaser to take possession of the Bitcoin by
inputting a digital key into an online wallet, computer or smart phone.
And so it would seem, Vancouver is the first city in the world to have a bitcoin ATM.
After reading both articles, I got to thinking. Not only can consumers circumvent the banks but also entire governments. Money laundering comes to
mind. Also, circumventing port authorities money declaration while travelling. Keep in mind, I'm not advocating any criminal activity, just pointing
out the wild wild west analogy regarding a virtual currency not held or controlled by an institution.
So what is a bitcoin worth? I don't know but this 4-year virtexCAD chart certainly looks impressive. Since May of this year the bitcoin has really
taken off. I don't quite understand how to read the market but could this be the beginning of a wonderful new way to do business? I did read $60 was
worth .27 bitcoin, not sure which though but you get the point.
Virtual money will never lose value because it isn't overly printed beyond its means like paper is, according to the article. It seems, once this
really takes off and virtual money ATMs are installed everywhere - like Leviton refueling stations for electric cars - the only direction for the
value of bitcoins is up. What do you think?