Technology

The future of Bitcoin

The vision of Bitcoin is slowly but surely making its way into our everyday vocabulary, generating heavy interest in the daily headlines, as well as the markets.

What was previously thought of as a bad investment with the potential to fail at any given moment, Bitcoin is being viewed increasingly as an alternative for those wishing to withstand the effects of the plumetting Dollar whilst potentially making some profit.

Many large venture firms as well as major financial institutions have been actively investing in the Bitcoin phenomenon, hoping to gain a competitive advantage in a fast changing market.

Bitcoin currency

Many believe that 2014 will be the year that Bitcoin solidifies itself on the world market.

 

 “I can say with confidence that 2014 will be the year of bitcoin on Wall Street,” Mr Silbert said during a conference call surrounding the issues of digital currency.

“I can’t tell you how many individuals I meet or meetings I go to where I’m asked to talk about bitcoin, but I can tell you it involves the most senior people at the some of the largest banks and funds here on Wall Street,” he said.

“While there is a lot skepticism on CNBC, some of the smartest and most well-known investors have invested in Bitcoin via the Bitcoin Trust,” said Mr. Silbert.

Yet the current state of Bitcoin remains heavily clouded with bad PR deterring new users away from the virtual currency.

Russia have recently become the second country to ban banks from trading in Bitcoin, following China’s move to regulate the virtual currency due to fears of money laundering. This bad publicity has raised fears regarding Bitcoin, yet analysts have indicated that these bans are simply precautionary measures to “protect the common user.”

“I would be cautious about jumping the gun and taking today’s announcement as indicative as how the space will be regulated in the future,” said Mark Natkin, of Beijing-based Marbridge Consulting.

Bitcoin has been heavily scrutinised for being a catalyst for major crime operations including money laundering, the buying and selling of drugs,online scams and pornography.

Current flaws of Bitcoin

  • Lack of security: Unlike banks which can recover your bank account balance if your credit card is stolen, there is currently no system in place to recover Bitcoins if you fall victim to a hacker or scam operation
  • Extremely Volatile: Stability is a desirable property for currency, and Bitcoins volatile nature makes it less attractive.
  • Buying with Bitcoin: Currently users are limited on where they can use Bitcoins to make purchases raising concerns over its need.

Bitcoin future accepted here

Future of Bitcoin

Whilst there are problems with the current Bitcoin system, the technology is still maturing, and there are systems in place working to address the current issues.

For Bitcoin to become an effective method for payment in the future it will require technological advancements as well as some ironing out of the flaws listed above in order to attract major financial institutions to adopt the virtual currency. The bad publicity surrounding Bitcoin will become old news as the major players hop on board the Bitcoin revolution.

Is virtual currency the way of the future? Would you use Bitcoin? Is it viable? Let us know your thoughts in the comment section below.

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