Bitcoin survival relies on community ‘growing up’
ISLE OF MAN – The cryptocommunity needs to “grow up” if Bitcoin is going to flourish, according to a prominent member of the security community.
Interest in Bitcoin exploded after the 2008 recession. In 2012, there was a sharp rise in Bitcoin-based merchant services. Since this time, the cryptocurrency has become monetized due to rising demand, which peaked last year at over $1,000 for a single BTC. Many attempted to cash in, but the price fell by over 50 percent following the decimation of major Bitcoin trading post Mt. Gox.
Despite this, faith in virtual currency remains strong – but could the lure of cryptocurrency’s unstructured and unregulated system also be its undoing?
There are endless possibilities for cryptocurrency, and this is not limited to Bitcoin. Litecoin, Dogecoin and Peercoin – to name but a few – are also in the mix, and many individuals and businesses are working out how virtual currency will fit in to our future. Traditional financial institutions may underpin transactions using virtual currency, more individual power and privacy could end up in the hands of consumers, and underdeveloped nations may be able to use crypto to circumvent corrupt governments or to allow for easier payments and reduced transfer costs where traditional economies are volatile.
This post was published at ZDNet on October 14, 2014.