The Impact of Bitcoin

Dateline: December 27, 2013

Welcome to our Friday WRAP – one thought-provoking idea to think about over the weekend.

The topic this weekend is virtual currency and the rise of Bitcoin. Bitcoin, as you may know, is the hot virtual currency right now.  A Los Angeles Times article earlier this month described it’s use and it’s recent rise in value.

Consumers are using bitcoins at coffee shops, hotels, online stores and even, in some cases, to run their businesses. And every day, dozens more firms are deciding to use the virtual currency.

Forbes staffer Maggie McGrath questioned Bitcoin as an investment vehicle, saying,

Bitcoin can also be dangerous because it can be very opaque and difficult to understand, and one of the first rules of investing is don’t invest in what you can’t explain yourself.

But a slide show on described Bitcoin as this:

In recent weeks, the hype and interest around the Bitcoin virtual currency have risen to new heights as the value of a Bitcoin has now surpassed $1,000 US. Bitcoin, a virtual currency that was first introduced in 2009, is also known as a cryptocurrency. The term “cryptocurrency” refers to the fact that the currency is created, or “mined,” from cryptographic hashes. A cryptocurrency also leverages the same cryptography that creates virtual coins, to validate transactions and prevent fraud. The increased attention on Bitcoin has made it increasingly difficult to mine and create new Bitcoins. That’s because the cryptography behind Bitcoin only allows for 21 million Bitcoin (BTC) in total, with the incremental difficulty to create new coins increasing at a rapid rate.

Do you think virtual currencies take off anytime soon?  If so, what do you have to do for your company to be prepared to deal with Bitcoin and their peers?  What will be the impact of Bitcoin on your business? your industry?

That’s a WRAP!  Have a nice weekend.

Speak Your Mind