Bitcoin – currency or Fad ? You may have heard of Bitcoin and dismissed this as a bit of a fad, surely you may be thinking Bitcoin is an artificial currency, particularly as Bitcoin is derived from complex computer equations by people called “miners”. Transactions are verified also by “miners” using similar complex calculations to prove ownership before a transfer of money is made.
Bitcoin is now becoming more widely accepted as a valid form of currency by both major companies and many pubs restaurants. Even charities such as the RNLI are accepting donations by Bitcoins.
Originally Bitcoin was designed specifically to provide a more efficient means of making online purchases and money transfers. It works well for this type of transaction and enables people to make fast payments to each other, without any need for a third party such as a bank.
Part of Bitcoin’s appeal is that it is independent of government controls. At the height of the Greek financial crisis, Greece imposed limits on the amount of money that greeks could send abroad but using Bitcoin they were completely free of any restrictions.
Bitcoin has made a fortune for is early developers but for users at this stage in its development, it is quite a risk, however it may be worth considering if you want to spend small transfers of currency, before you do make sure all of the charges are fully explained.
If you have any opinions on Bitcoin, we would be pleased to hear from you …..