“Bitcoin IMG_4443” (CC BY 2.0) by btckeychain
To some it’s the mysterious currency that only exists on the Internet, to others it was a financial experiment that didn’t really take off; however, to those in the know, Bitcoin is a glimpse into the future of currencies around the world.
For the naysayers that can’t see past the current system of government controlled currencies, Bitcoin was nothing more than a fad that didn’t catch on with the masses. In some respects this has been true.
Due to the complex nature of Bitcoins’ creation, existence and production, the general public (especially those that aren’t tech savvy) has overlooked it as a viable payment method through a combination of ignorance and fear.
Resurgence of Bitcoin
“Bitcoin, bitcoin coin, physical bitcoin,” (CC BY-SA 2.0) by antanacoins
However, things appear to be changing. Thanks to a myriad of factors, not least the dissemination of information that’s accessible to the layman, Bitcoin is now enjoying a resurgence.
Of course, those in the industry will assert that it never went away, but there’s no doubt that in the last 12 months the cryptocurrency reached new heights as the price of the Bitcoin hit $400 in November 2015.
One of the main reasons Bitcoin bounced back last year was the proliferation of Bitcoin products and services. According to Gil Luria, an analyst at Wedbush Securities, the primary price driver in 2015 was an increase in “Bitcoin applications.”
Indeed, today when you survey the online world you’ll find a host of Bitcoin related products. From gaming sites and payment processors to ecommerce options, Bitcoin can now be used in a variety of ways and it’s this that’s driving up its value according to Luria.
More ways to spend Bitcoin online
“bitcoin accepted here” (CC BY-SA 2.0) by Francis Storr
Naturally, for most consumers, the presence of Bitcoin in the gaming industry is the most significant. It’s estimated that 1.2 billion people play games online and a large percentage of those games are of the casino variety.
Tapping into this market and exposing the value of Bitcoin in the gaming world has been sites such as https://vegascasino.io/. Offering a range of virtual and live dealer casino games, this site is one of the first to operate solely in Bitcoin and it’s given gamers a new take on the industry; not least in terms of the security of their financial transactions.
Another company that’s given people a new way to use Bitcoin online is Tealet.com. Although it may not be everyone’s cup of tea, the site basically allows you to purchase tea from a range of family run businesses using Bitcoin.
Of course, not everyone will want to purchase tea or play casino games using Bitcoin, but these examples of just the tip of a very large iceberg.
Bitcoin tech driving a revolution
“Bitcoin Chart” (CC BY-SA 2.0) by Fabian Figueredo
Another driver pushing Bitcoin to prominence in recent months is its technology. In a recent interview with Bloomberg, Peter Smith of the company Blockchain explained that the implementation of Bitcoin technology large banks is also fuelling the increase in its value.
Explaining that Bitcoin is simply the token which results from the Bitcoin protocol, Smith stated that the technology that goes into powering the process is something banks are now trying to harness in order to make their own process more efficient.
In practical terms, debit and credit cards were never designed to be used online (mainly because the Internet wasn’t a consumer entity when they were first invented) and, despite certain safety measures, they aren’t ideal in the virtual arena.
This is something banks are looking to address and something Bitcoin technology could help with. This fact, coupled with the increase in Bitcoin products, is giving the cryptocurrency a new lease on life and why analysts now believe a single Bitcoin could be worth more than $600 in 2016.
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