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Virtual currency Bitcoin The virtual currency Bitcoin is attracting attention. Bitcoin allows one application to be completed simply and quickly on the Internet without the intervention of financial institutions. In addition, fees are low, it is not affected by exchange rates, and it can be used without a bank account or credit card.

These conveniences have been highly evaluated, and the places that can be used for payment are expanding not only to online stores but also to real stores. Bitcoin-compatible ATMs have also appeared in Canada and the United States. As of February 2014, the circulation volume was about 12 million bit coins (about 1.2 trillion yen), and it is said that the number of users has reached millions worldwide.

Credit building and dealing with price fluctuation risk are different issues unlike currency and electronic money, Bitcoin does not have the credit of the issuer such as a country or a company. Therefore, in order for Bitcoin to become widely used as a payment method for business in the future, it is most important to ensure credibility and stability as a currency.

 

Bitcoin itself is created by combining security technologies such as public key cryptography, digital signatures, and hash functions with the computational processing power of a computer, and by virtually confirming transaction records stored in a distributed database with each other.

However, the enhancement of reliable peripheral services is indispensable for building credit for the entire system. For example, even if a bitcoin itself cannot be tampered with, once it is invaded by an electronic wallet and a transaction with a personal ID is successfully established, it cannot be restored or cannot be identified because of its high anonymity.

In some cases, the exchange system that can convert into yen, dollar, and other currencies actually went down due to an external attack. In order for the entire Bitcoin usage environment to be trusted, the efforts of companies involved in these peripheral services are in the stage of being necessary. The bitcoin freedom website is secure and trusted for bitcoin trading


 
Speculative moves will also be a barrier to the spread of Bitcoin. Bitcoin, which has no controlling body, has a face as a financial product in which the price fluctuates only by the majority vote of users, regardless of the evaluation of the intrinsic value. In fact, the price of 1 bitcoin, which was around 1,000 yen in the fall of 2012, jumped to 120,000 yen in December 2013.

On the other hand, after that, when it was found that the system of the exchange went down due to an external attack and that new regulations were established in some countries, it plummeted to 56,000 yen as of February 13, 2014. However, it is still declining even now. In the current situation, it may be perceived as a dangerous currency with a high risk of price fluctuations, which is easily confused by speculation. The reality is that it cannot be used as a payment method for business as it is.

Even though the convenience of Bitcoin is very attractive, it is difficult to judge at present whether it will become a currency that can be used in business as a credible and stable currency. Companies considering business use must continue to pay close attention to the response status of each country and the status of enhancement of peripheral services, etc., so as not to miss the timing.

It possible to become a credible and stable currency

Each country's response is related to credit and speculation, and it should be further noted. Bitcoin, which enables free settlement beyond national frameworks, has been banned from use in China, Russia and India from the perspective of preventing the risk of money laundering and other effects on its own currency. On the other hand, in Germany and Singapore, the policy is to charge tax after allowing Bitcoin. So far, Japan and the United States have not made a clear decision, but if the country is involved in terms of user protection, it will improve credit, but if regulations are strengthened, bitcoins greatest value is convenience. There is also a risk of impairing sex.
 

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Bitcoin in the real world

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