Bitcoin is an evolutionary leap forward in how we view currencies, money and payment methods. Decentralized, secure and transparent, it provides for a global network of immediate and almost free transactions. Bitcoin transactions take place over a network which operates via a free and open source framework, making it transparent, collaborative, highly adaptable and very resilient to all types of attacks. Bitcoin ignores borders and middlemen to provide secure and instant transfers at exceedingly low costs, regardless of the amount sent or received. At the same time, they cannot be counterfeited or duplicated. Unlike conventional currencies or precious metals, they can be backed up, and several copies of them can be secured from physical theft or destruction. With increasing adoption, extensive media interest, and the rising introduction of financial, human and organizational capital, the network effect of bitcoins increases daily, and so does their usefulness and value. This virtuous cycle pushes Bitcoin to explore the limits of its developing infrastructure and grow further, adapting beyond them. A number of new challenges exist in these edges: technological, security, transparency, regulatory, compliance, risk management. Acquiring actual ownership of ones own funds mandates an increased responsibility for their management. We would never leave our wallet in the middle of a busy street. In the same manner, those that wish to privately store their bitcoins, need to make sure they are using a secure computer free of malware and viruses. One of our aims is to provide the infrastructure so that your bitcoins can be stored securely and effectively, without worrying for their individual exposure since the bitcoins are kept in full reserve, and can be audited by you, at any time and place. You are always in full control of your bitcoins and you can access them at any point through our ePortal. Whether buying products with your Bee card or sending bitcoins to family abroad, your transactions are secured by above industry-standard cryptography, stronger than those most banks, military and telecommunication organizations use globally. If the cryptography in the Bitcoin network was compromised somehow, all of the above would be equally vulnerable. At the same time, Bitcoin is scarce. Only 21,000,000 coins will ever exist and only 25 new ones are created by the network, approximately every 10 minutes. Currently about half of the total have been produced, with the rest introduced at a decreasing rate until 2140. They are highly divisible though, to the point that one can own 0.00000001 of them. Usefulness and Scarcity = Value. The exchange rate of each bitcoin to conventional currencies, has been increasing significantly over the 5 years the system has been in operation. This does not mean of course that this will continue to be the case in the future. A part of this increase has been due to utility and in part due to speculation on its future. The volatility observed so far is in large part due to the price discovery taking place, as it rises to accommodate increasing adoption rates, the slowly deepening market and the unprecedented proximity between supply and demand, as they are the only means of exchange that can travel to every market at the speed of light. While the transactional value always increases with increasing adoption due to the network effect, the speculative side of it is responsible for abrupt rises and falls in exchange rate. At the same time, the exchange rate has significant divergence in different exchanges. The regulators of major states (USA, Germany, UK, Singapore) are becoming increasingly aware and comfortable with the technology, slowly recognizing the transformational potential of an idea whose time has come. As a technology unattached to any single business, person, organization and country, it does not fall under most conventional securities metrics. The fundamental value of bitcoins can only be measured by measuring the potential impact they may have, and we believe that is far, far beyond its current exchange rate.
Posted on: Sat, 15 Mar 2014 19:59:19 +0000
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