Bitcoins, the future of eCommerce?

on 10 February 2015

We're guessing you've heard of the Bitcoin millionaire? Way back in 2009 Kristoffer Koch, a Norwegian man spent $30 buying 5,000 units of new digital currency Bitcoin. Like many a whim, it was just for fun and he never really thought about it again, that is until the hype that is Bitcoin began to appear across the media as the latest digital revolution. An alternative to hard cash, credit cards and Paypal, indeed it was heralded as a new currency in its own right!

Koch , remembering he'd been one of the early adopters logged in to check how his $30 was doing discovering to his amazement they were now worth a rather cool $880! After cashing in some of his Bitcoins he bought an apartment whilst his remaining coins continue to grow in value, almost up to $1m, not bad for a $30 investment!

Bitcoins are big, there's no doubting it, and the value of the currency is reported as $1.5 billion so not to be sniffed at. Bitcoins have taken the tech world by storm, the technology behind them is pretty impressive and it can change the way electronic transactions are processed but it is really a global currency, personally we think not. Although you could strongly argue it is an IT and tech world currency.

Bitcoins are an open source currency that allows secure transactions. You send real money to your electronic wallet where it is converted into Bitcoins, much like exchanging your hard earned GBP into Euros, your Bitcoins can be spent on websites that accept them. So, how does it differ from Paypal, quite easily, lower transaction fees. There's no big payment processer sat behind Bitcoins so lower fees for everyone. The main downside is security and therefore consumer trust; with no official backing or standards to adhere to and a multitude of open source hackers out there some IT sources think it is only a matter of time.

However, with caution they are still one to watch.


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