I reckon that Bitcoin is one of the most ‘unpopular’ forms of trading around several years ago. However, Bitcoin has suddenly caught the attention of people, given that anyone who has even a single Bitcoin is comparable to a person having thousands of dollars in their possessions. Congratulations to people who bought Bitcoins when it was the underdog.
Bitcoin is, simply, a currency. Bitcoins are able to be spent in order to trade other materials with similar value. However, it is not e-money, which are your country’s currency money that are turned into an electronic ‘value’ which then can be used similarly to money. Bitcoins are a form of currency called Cryptocurrency, which is also an asset existing only in the digital world, but is very secure due to the practice of using cryptography for every transaction done using the currency.
As of 17th September 2017, Bitcoin is worth approximately US$3550.00, which roughly translates to MYR15,500.00! If you have invested into Bitcoins in 2013, you would know that Bitcoins only cost US$22, which would result in 16,100% profit in just 4 years! I do wish that I have a time machine so I can tell my younger self to invest in Bitcoins.
The question of how does Bitcoin gets its value in such a short time rises. First , as the so called Cryptocurrencies are getting better known, it gets even easier to access the currency. This allows Cryptocurrencies (not just Bitcoins) to acquire more value as it gets easier. Secondly, of course, the traditional sense of money is starting to change, leaving papers and coin behind. The need for faster cycles and easy management of currencies encourages people to allow Bitcoins to be used as a currency, thus increasing Bitcoins’ circulation in companies.
Currently, Bitcoins can be used for payment in certain companies. From December 2014, companies such as Microsoft, and Dell have been accepting Bitcoins as a payment for several of their products. Bitcoin also works well with Paypal, which allows the bitcoins to be transferred to other people and/or companies.
Unfortunately, Bitcoin, with its high value, is also currently used as a ransom in the cybercrime territory. Recently, the attack of Petya Ransomware will prevent any access to any part of your computer. It will then demand a certain amount of bitcoin to be sent at a certain account in order for the creator of the malware to send a key to ‘open’ access into your computer. A reminder to update your operating system and security i.e. antivirus!