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Is Bitcoin the future of business?

Posted by on 13 Oct 2014

If you haven’t heard of Bitcoin, it’s time to buckle in and read this blog because it might very well be the way of the future and another mode in which to conduct business.

Bitcoin is a digital currency stemming from an online based software payment system where transactions are performed without the need of a central bank. Bitcoin has been around since about 2009. But don’t be surprised if you have only just heard the term as it was only recently that it really kicked off.

We won’t delve too much into the way in which Bitcoin works because it is quite a complex system. Essentially anyone can buy or sell Bitcoins, but the creation of Bitcoins is from users competing to “mine” Bitcoins by solving complex math puzzles. If you are able to solve these puzzles you are rewarded with Bitcoins. Bitcoins are then stored in a digital wallet working as a virtual bank account.

In line with the increased interest and use of Bitcoin, Australia recently introduced its first Bitcoin ATM in Sydney CBD. Let’s not forget that Bitcoin is currency so it was only a matter of time before a Bitcoin ATM came around.

The use of Bitcoin gives users more control as it has no centralised system – users are in complete control of payments. Furthermore, transactions do not contain personal information which makes identity theft very difficult.

What is most welcomed is the fact that international payments are easy because Bitcoin is not regulated or owned by a certain country or any bank. So for businesses performing regular international transactions the use of Bitcoin could make conducting business a whole lot smoother and potentially more secure.

The fact is, more and more people are using Bitcoin – as at August 2013 there were $1.5 billion worth of Bitcoins in circulation and before we know it this digital currency might be a way in which we most of us conduct business. But before you decide to transact with Bitcoins you should do some research, there’s a lot of information that should be understood before dealing with Bitcoin.

If you would like to know more about Bitcoin or about new technology and how it can affect your business please contact our Digital Media & Technology team in Parramatta and Norwest.