Bitcoin Shows Promising Future

23 May

Bitcoin online currency is stabilizing at $120 per Bitcoin.
Image: Zach Copley / Flickr CC

Born out of online shopping habits and the desire for less regulatory control in finance, the Bitcoin is making some pretty serious progress with early adopters.  Although the currency is four years old, Bitcoin recently gained public attention when the trading price skyrocketed to over $230 dollars each.  The online currency has now stabilized to $120 dollars per bit coin, a massive increase over this time last year when it traded around $5.00 per Bitcoin.

Last weekend, about 1,000 Bitcoin enthusiasts gathered for Bitcoin 2013, a conference on the virtual currency in Silicon Valley. Attendees included a flood of start-ups, venture capitalists, Bitcoin vendors and exchange providers, and libertarians looking for more freedom in commerce.  Rather than using credit cards to make online purchases and deal with having to give companies personal information, Bitcoin works like a virtual cash, where only the money is verified rather than your identity.  Other benefits of using Bitcoin include the ability to back up your cash funds, a reduced risk of fraud, and short verification time for transactions.

Cameron and Tyler Winklevoss were on site at the conference as star investors in the new currency.  The twin brothers are credited with giving Mark Zuckerberg the idea for Facebook.  Along with the director of the Bitcoin Foundation Peter Vessenes, they called for the standardization, support and regulatory policies necessary to make Bitcoin thrive.  Right now, about $45 million in Bitcoin transactions take place daily, and that number is only expected to increase.  As more people adopt the currency, the price is expected to stabilize. For now, the Bitcoin foundation is preparing to hire a lawyer to work with Congress on better regulation for the new currency.


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