Bitcoin has undoubtedly divided both financial and technology commentators since its inception. Indeed with a marketplace value that has fluctuated in worth from between $100 and $1,100 within the space of 12 months, it would be easy to come to a relatively safe assumption that it is an unstable currency or investment.
However, whenever anything which is visionary and potentially groundbreaking in technology terms is released to the mass market, there are inevitably going to be teething problems across the first few years. But the smart money is now going on Bitcoin, with massive endorsements from established financial institutions across the US and beyond.
Just yesterday the former Goldman Sachs partner and current CIO of Fortress Investment Group, Michael Novogratz, has claimed that all the most intelligent people he knows, from financiers to programmers are investing heavily in both time and financial terms, in the virtual currency.
The prediction is that Bitcoin will essentially provide some form of democracy to the financial world, with the main victims being the banks. Peer to peer lending is likely to become far more commonplace due to the exorbitant fees and interest rates attached to borrowing from any of the well-established financial institutions, and this lending will most likely be in Bitcoin.
While there is an argument that with no discernible and measurable value, Bitcoin will struggle to establish itself as a serious currency, but demand dictates the value, and as demand grows….Well we all know the rest.
There is speculation that other virtual currencies which are backed by gold will soon be attempting to usurp the Bitcoin project, but with companies like Fortress holding $13 million worth of the virtual currency, and with many brilliant minds signing up to the visionary ideals of the project, Bitcoin is in a very promising position which will make it difficult to dislodge.
So will we see a complete revolution to the way in which currency is traded and spent? Not just yet, but things can move very quickly. Just 15 years ago the idea of being able to watch a video on a phone would have been written off as utter fantasy. Once the security issues have been ironed out and the fluctuating value stabilises, Bitcoin is a real contender. You’d be crazy to write it off….