BITCOIN the NEW VIRTUAL CURRENCY

15 Dec

Intro:

BITCOIN started in 2009 created by people for people a PEER to PEER system without any Bank or Central Bank interference.

It´s a FIAT CURRENCY as all our paper Currencies presently. Based on CRYPTOGRAPHY with an individual FOOTPRINT.

Safest form of Currency known to MAN so far! Created into existance by Supercomputing. A process called MINING like digging GOLD from a GOLDMINE!

Bitcoin Miner RIG

By design limited to MAX 21 million BITCOINS! Today approx. 11milj. in circulation. By it´s limited amount provide INFLATION SECURITY! Presently there is a WORLDWIDE presence of MINING POOLS for BITCOINS=EXCHANGES

Bitcoin Mining Pools

Largest production so far in ASIA and CHINA. In USA and Europe taking off at several new MINES.

REGULATIONS: The US Senate had a HEARING Nov. 19th this year on VIRTUAL CURRENCIES. Authorities no interest at this point in REGULATING as it indicate legitimizing of BITCOINS. Biggest concern is Money Laundering that have been taking place at SILKROAD site now under LEGAL charges. The new payment system BITCOIN is approved within US laws. In many US states payment of Salaries is considered.Today you can use Bitcoins to BUY GOODS and SERVICES online.

Is BITCOIN a new GOLD related Currency? Not now but it could be happening! Then it turns into a SOUND GOLD BACKED  Currency  like our old GOLD Std on FIAT CURRENCIES. In Europe Germany is advancing in approving BITCOIN transfers.

Holdings will be taxed as an asset only in Germany so far.  What is the driving forcé behind BITCOINS? It provide a PEER to PEER low cost transfer at lower rates than with Credit Cards(Invented in 1950s) and Paypal etc. It can turn into replacement for UNSAFE Credit Card transactions

Cost transfer Bitcoin

The transfer of BITCOIN is identified with a string of 32 random numbers. BITCOIN MINERS are specialized software and Hardware to solve Mathematical algorithms. The  exploding interest in BITCOINS have surged prices to now reach around 800 USD/Bitcoin. How high can Bitcoins surge? Nobody knows but potential seems astounding!

Bitcoin Chart

SUMMARY:

As an FX TRADER  I see this new type of Currency providing opportunity for SPECULATION OBS! This in short and longer term.

Today most of Western World Central Banks have lowered interest rates close to ZERO! A ll this action with extensive “Reckless” Money printing brings fear of coming INFLATION and DEVALUATION of Currencies. Now described as an ongoing CURRENCY WAR to achieve competetiveness at cost of OTHERS LOSING! In médium term the USD in it´s present form cannot sustain as the WORLDS RESERVE CURRENCY so a need for alternatives exists and demonstrated in actions against the PETRO DOLLAR from CHINA and others. The fear from Population seeing their Currency losing Credibility and Confidence drive INVENTIONS for alternatives like the 21st Centaury BITCOIN. Future is UNCLEAR depending on a BROAD ACCEPTANCE to reach everymans WALLET! As a start you can build yourself a SMALL BITCOIN WALLET and follow progress as myself.

A new lenfred  Finance insight with Future implications.!

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