There has been a lot of talk lately about a new virtual currency called Bitcoin, which is growing very quickly, receiving a lot of media attention, and its value has increased dramatically.
The current financial turmoil in Europe and around the world has also prompted people to invest in alternatives to fiat currencies like Bitcoin. For most people, it is strange that someone takes a currency seriously that is not supported by a government or central institution, but that is exactly the advantage of this coin.
Bitcoin The developers spoke to the Guardian's James Ball at their home in central London. Here are some of their comments:
Bitcoin is one virtual currency Just like dollars, pounds, euros, but at the same time we have a kind of currency that is not controlled by central institutions, but is completely decentralized. I can send money to anyone I want, whenever I want, wherever I want, and nobody can stop me.
Bitcoin is a very interesting concept that is accepted by many companies on the Internet such as PayPal, WordPress, Reddit, Microtronix and many others. In fact, ATMs are already on the way to being used.
Some of Bitcoins' critics say that they make it easier to buy drugs on the Internet, while developers say the virtual currency is just a tool and can be used for good or bad.
The disadvantage of fiat currency is that central banks can print as much as they want and therefore always loses purchasing power. The same principle applies if you have money in the bank. Instead, you should put your money in an asset that retains or increases its value.
At this moment, bitcoin seems to be a good option as it increases in value, but this may change in the future. Another alternative is to invest your money in productive things like a company or country that is gaining value, or to invest it in gold.
Even though the virtual currency is a great way to diversify your portfolio and not be dependent on paper money or bank deposits, you need to look for a way to store value that is secured against financial protection, and the best option is gold because the ultimate is money. Gold has been a store of value for centuries and always will be because it is valuable, limited in quantity, easy to replace and a store of value.