Bitcoins could become the currency of the future

Production Of Bitcoins By Mike Caldwell of Casascius

Mexico City, February 18, 2014 – . Bitcoin is a virtual currency that is not backed by governments or central banks, it only exist online. No one really knows who is behind them.

 

Bitcoins can be accumulated by using computer algorithms to solve complex mathematical problems. Users coins are exchanged between them or used to buy items like tickets to basketball games or to make online purchases. Quickly, bitcoin went from being only for technology experts to be available for the general public.

 

After continuous technological failures, regulatory issues and general questions about its viability, the currency is in its worst crisis since it was proposed in an essay of 2008.

 

The way the virtual currency and its ecosystem react to problems could determine if the experiment becomes a historical technological innovation as email .

 

The Bitcoin is based on three qualities: it is anonymous, it is computationally hard to undermine and it eliminates financial intermediaries such as banks. But these defenses have caught the attention of regulators and law enforcement agencies due to suspicions that the virtual currency is being used for money laundering. In addition, its immunity to cyber attacks has been questioned.

 

In 2011, Bitcoins were worth a few cents and in 2013 each one amounted to US$1.100 per unit, which increased its acceptance.

 

Most banks refuse to accept or conduct e bitcoin transactions, which results in a limitation to the currency in the financial system.

 

Currently the price of the bitcoin is almost half of what it was at its peak, so people may prefer its use over the existing payment methods. The bitcoin could succeed and differenciate itself from companies like MasterCard, and stop people wondering whether the world really needs another currency.

 

There is a real possibility for the bitcoin to play a major role in the financial industry of the future and change the perception that it is only “a currency used to store value”. It could potentially be used as a method to store personal and financial information in an independent, reliable and secure manner.

 

Mexican Business Web, with media information

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