Visitors to restaurants and cafes all over the UK are used to paying for their drinks with cash and card, but now they are being offered another payment method: Bitcoin.
Since its mysterious creation, the Bitcoin has become many things to many different people, according to the folks at BITBROKER. One of them is a payment option — and another is an investment.
What is a Bitcoin? Is it something worth considering as an investment vehicle?
The Origins of the Bitcoin
Bitcoin is a cryptocurrency. Cryptocurrencies are virtual currency that uses cryptography. Like all other cryptocurrencies, such as Amazon coins, it does not exist in any physical sense. These are not linked to any single country or economy as well.
It was invented in 2009 by a mysterious developer or group of developers called Satoshi Nakamoto, but only became popular in recent years since the golden age of the Silk Road website. Bitcoin was the only way of paying for goods in the online marketplace as it offered a secure means of payment and anonymity.
The Bitcoin as the Ultimate Investment
The big question with Bitcoin is can it be used as an investment vehicle — and, more pertinently, is it a good idea?
Despite the roller coaster price swings, Bitcoin has gained popularity among hedge funds investors and tech-billionaires, and for good reason. The cryptocurrency shows considerable promise, according to The Bank of England, as it may replace the US dollar as the primary currency of international trade. Chancellor George Osborne also aims to make the UK the global Bitcoin hub in the future.
Bitcoin is also a good investment as it offers numerous uses. It may be used as a payment for customer rewards, for remittances, for settlement between financial institutions, and for crowdfunding. Like diamond and gold, Bitcoin is a scarce asset as well, because there is a limit to the maximum number of coins that can be created.
The Bitcoin, to put it simply, is the ultimate investment, because the world is at the tipping point of a major financial technology revolution and this virtual currency is likely to play a major role.