Monday, June 13, 2011

BitCoins, the borderless digital currency of the future?

I don't know if you have ever heard of BitCoins or not, but it is a virtual currency. This virtual currency is just like your country's currency since it is used to buy or sell goods or services or essentially basic trade. It is also a currency that is backed by something that is finite unlike the US dollar which the Federal Reserve creates out of thin air. BitCoins are backed with actual cryptographic meta data that will eventually cease new BitCoins from being issued.

There can only be about 21 million BitCoins, but the going rate at any BitCoin exchange at the moment will cost you about $20 for one BitCoin. After 21 million BitCoins have been issued, it will be quite an economics experiment to see how the BitCoins market will stablize. Obviously for sure, this market isnt mature yet, but the real eye opener here is that its a growing market. More & more businesses are accepting BitCoins everyday.

The real thing here is that BitCoins are a great currency alternative, and is quite remarkable in its nature in both economics and long term valuation. It would be better to invest in something like BitCoins then it would be to invest in the stock market as it is real money. Everyone knows how bad the stock market can be... remember just a few years ago?

It would be great if BitCoins would be allowed to catch on and grow, but the Fed & the banks will most likely do everything in their power to kill BitCoins.

No comments:

Post a Comment