Is the Bitcoin an Alternative to Fiat Forex?
Recently there has been a lot of talk about a brand new digital currency called the Bitcoin that’s growing quite quickly, its gaining a lot of media focus and its value has increased radically.
The present financial turmoil in Europe and around the world has also made individuals invest in options to fiat currency such as the Bitcoin. For most people it’s strange that someone can take seriously a currency which isn’t endorsed by a Government or central institution, but that is the precise advantage of this coin.
Bitcoin developers spoke to the Guardian’s James Ball in their home in central London and those were a few of their remarks:
Bitcoin is a digital currency just like dollars, pounds, euros but in precisely the exact same time we have a sort of currency that is not control by central associations, its entirely decentralized. I can send money to whoever I want, whenever I want, where I want in the world and nobody can stop me.
The Bitcoin is a really interesting concept that is gaining acceptance by many businesses on the internet like PayPal, WordPress, Reddit, Microtronix and many others.
Some of those critics of Bitcoins state they are facilitating buying drugs on the internet, the developers state that the digital currency is only a tool and you may use it for good or bad.
Fiat currency has the disadvantage that central institutions can print just as much as they want, therefore it is always losing purchasing power. The identical principle applies in the event that you have cash in the bank. Instead what you should do is put your cash in an asset that retains its value or increase it.
At this moment the Bitcoin looks a fantastic alternative because its increasing its worth, but this can change in the future. Another alternative is to invest your cash on something productive like a company or property that increases in value or invest it in gold.
Even though the virtual currency is a great way to diversify your portfolio, not rely on paper cash or bank deposits, then you have to look for a way to store value that is protected against financial hedge as well as the best option is Gold, since its the ultimate cash.