Like you’ve probably not heard of Google Wallet, you’ve probably not heard of Bitcoins either. Just like contactless cards and paypal, Bitcoins are going to become mainstream and I’m starting out as an investor.
Bitcoins are the world’s first decentralized digital currency. What that means is that there’s no one organisation that governs or set the exchange rate. The currency generated is by devoting computing power to solving an algorithm, every time the algorithm is solved that computer (or user) is rewarded with 25BTC (Bitcoins). To fight inflation, the currency has safeguards in place. For example, eventually all the Bitcoins will be ‘mined’ and at certain points the difficultly in earning the currency doubles.
Currently Bitcoins are mostly used on the fringes of the internet society, with black markets and hackers accepting them as payment options. However, they’re rapidly growing in popularity. Bitcoins were big business at this years Consumer Electronics Show and mostly recently an online casino started accepting the currency and began making big money by doing so.
So why I am getting into all of this now? If I’d be smart I would have gotten into it along time ago. The value of Bitcoins has been shooting up and in the time that I’ve been closely following the exchange rate one Bitcoin has gone from being worth £8 to now being worth around £21. For the time being, I don’t see it as a business venture, rather a better investment than bonus bonds.