Let’s talk about BitCoin for a second. You have recently heard people talking about it, newspapers writing about it? That is exactly the reason why you should read about it today!
BitCoin is a digital currency, a mix between an antique system to do business and a technological breakthrough that was introduced in 2009. BitCoin is not backed by any government or central bank. In fact, the BitCoin network is designed to mathematically generate no more than $ 21 million, thus the network is set up to regulate itself to deal with inflation. As Bitcoin becomes more popular and demand increases, is for the currency to increase in value, or deflate, until demand stabilizes. This is why, at the moment, the BitCoin price index is skyrocketing.
Even if most people are still distrustful, we should acknowledge that BitCoin is gaining momentum with an increasing popularity and legitimacy. Indeed, BitCoin offers a currency that is truly liquid, yet completely secured. This feature is inspiring entrepreneurs who are finding new products to develop and are launching new startups. But it also attracts existing corporations, which see in BitCoin new business models and new ways to gain more revenue.
- There is an ever-increasing number of start-ups that want to explore the possibility of such a currency. Gliph is inventing the wire tranfer 2.0, Bitwall enables consumers to withdraw bitcoins from actual ATMs, BitPagos believes BitCoin can protect Latin Americans from inflation, BitPay aims at easing instantaneous transactions from anywhere in the world. Only to name a few! But the ultimate proof that BitCoin is on the verge of radically disrupting the financial sector is the success of CoinBase. In December, the start-up that provides a digital wallet for BitCoin transactions, raised an impressive $25 million in Series B.
- More and more existing corporations are considering BitCoin as a valid way to make purchases. The process has accelerated over the past few weeks with several companies implementing changes in this way. Starting in February, the Chicago Sun-Times will give its readers access to its website if they donate some BitCoins to the TapRoot Foundation. The Sacramento Kings just announced that they will accept payment in BitCoin in their team retail store of Sacramento and online. Kings’ fans will be able to buy tickets and merchandise with their BitCoins. And this is just beginning, we should see an increasing number of retailers accepting virtual currencies to buy real goods and services.
But a lot remains to be achieved: consumers to be convinced, Institutions to be involved. Start-ups are definitely paving the way for the democratization of BitCoin. They will actually be the ones that will determine if BitCoin and other digital currencies are a technology that will be part of our daily life like the World Wide Web. And who knows, maybe you will soon be able to pay the IRS with BitCoins!
Still lost about what BitCoin is? Here is a simple explanation https://medium.com/future-of-currency/73b4257ac833