Bitcoin was first launched in early 2009 and is the world’s first digital only currency (it’s also been referred to as a cryptocurrency). The official creator remains unknown but has been attributed to the pseudonym Satoshi Nakamoto which could be an individual or a group of computer programmers. The purpose of bitcoin was to provide a system for peer-to-peer transactions that are quicker and more efficient than a traditional bank transfer. Bitcoin could potentially affect the currency markets as it has the advantage of not being connected to any existing currency which means there is no exchange rate to be considered if transactions are taking place between different countries.
In the seven short years of its existence bitcoin has received considerable amounts of funding and a many people are rapidly starting their own bitcoin company as it practically guarantees a sizeable investment. At this point it remains to be seen how many investors truly predict bitcoin to be successful or if they’re just throwing money at it as a way of willing it to succeed.
Bitcoin is beginning to grow in a number of different industries with a bitcoin only casino to make it easier for players to join in from all over the world. It is already possible to play online poker with bitcoin instead of regular currency. Consumers will be relieved to hear that bitcoin operators take their security measures very seriously and have spent vast amounts of money on security analysts and regulations.
General transactions are gradually increasing using bitcoin as a currency through companies like ZapChain, ChangeTip and Purse who enable customers to use bitcoin when making purchases through Amazon. This is just an early case of how bitcoin could simplify the way purchases are made moving forward, and anything that that makes things easier in day to life is bound to be an incentive for more people to use it.
The biggest concern at the moment is that not everybody is sure what bitcoin exactly is and how we should treat it in the future. Should it be embraced as another currency and serve as a competitor to PayPal and major credit cards? If it becomes an official current it will probably require a central bank somewhere in the world, this won’t happen overnight and so far no organisation has come forward and expressed interest in a possible deal.
Overall the future for bitcoin is looking increasingly positive. Generally it can take around ten years for any form of software to really find its feet and prove that it will be around for the long term, after seven years strong bitcoin is creeping ever closer to this window. Facebook, for example, has been around for over 12 years but it wasn’t an overnight success. It’s taken the time to be nurtured and has grown naturally to the point where it now has over a billion users. To truly imagine the potential of bitcoin it will take a number of years along with the right amount of nurturing and patience.