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Thursday, August 7, 2014

Current status and future of Bitcoins

Bitcoin is basically a virtual currency developed by Mt.Gox and once it was predicted to be one of the largest traded virtual currencies of the world. The system is based on peer to peer exchange system and its value fluctuates with the advent of time. The currency is first global decentralized currency and it is not controlled by a single party. The value of money revolves around two parties without the intervention of third part that would act as an intermediary. Through this individuals can acquire this system at a relatively low price and they can transfer the funds easily within the shortest span of time.
Initially, the Japan based currency gained the acceptance of people and people initially embraced it with open arms. However, bitcoin experts in the current scenario depicts that it would abruptly shut down in the near future. The company’s website is shutdown and the twitter feed has been cleared. Analysts were suggesting that the portal of the company might get hacked and it happened several times when numerous bitcoins were stolen from the system.

The future of this currency that is virtual in nature is a bit gloomy. This is mainly because of hacking threats and people stealing bitcoins. Strategists are planning to enhance the security of exchange and educate people regarding this scenario. However, banks and other related intermediaries are negating this scenario as they believe that this would not result in a financial stability of the economic system. Reports suggest that the in the near future all exchanges might close and this currency would evade from internet. A viable approach currently is to sell the bitcoins and convert the amount into liquid cash so that it would be viable for the customers in both the short and the long run. 

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