Has Faith in Bitcoin Been Restored?

Has Faith in Bitcoin Been Restored?

You might have heard negative reports or the views of cynics and thought Bitcoin was dead and buried, but you’d be wrong. Bitcoin is set to remain ever present in the financial industry, has defied pessimistic reports and, according to Juniper Research, received an investment surge of $290 million for the first half of 2016.

The assumption was that Bitcoin would become redundant due to the increasing ease with which we can handle our money electronically. This does not seem to be the case, as people appear to view Bitcoin as a more global, open and efficient system of financial dependability. It was also believed that Bitcoin was too volatile to get investors’ trust, but recent fluctuations of the Euro and Pound Sterling in the wake of the Brexit referendum have illustrated that Bitcoin’s global backing makes it less susceptible to localized financial variations.

" bitcoin " ( CC BY 2.0 ) by  Sean MacEntee

Availability grows

Another shot in the arm for Bitcoin users is that the number of businesses now accepting the most famous of all crypto-currencies is impressive and expanding. Companies have accepted that it would be a mistake not to facilitate payment of goods or services through this legitimate currency and are adapting to make Bitcoin payments effortless.

Online companies are at the frontier of this market and as you would expect, Apple’s App Store, Microsoft, PayPal, eBay and many other tech firms offer users the chance to trade with Bitcoin. Predictably, online gaming sites are enthusiastically ready to take all varieties of currency and Bitcoin is no exception as slots RNG meets the bitcoin algo  at sites such as Vegas Casino, where crypto-currencies are the only form of payment. The fact that some more unexpected companies such as Subway, Home Depot, Kmart and Sears offer this service just goes to show that the popularity of its use is not going to diminish any time soon.

" Bitcoin-accepted-here-printable " ( CC BY-SA 2.0 ) by  MamaDeFuego

Progress Stalling

Possibly the biggest factor holding up the progress of Bitcoin is that people know of it, but don’t really know what it is. The name has become implanted into the public consciousness with words such as derivative, sub-prime, prime rate and bull or bear markets, words everyone knows, but couldn’t explain with any confidence. The video below, provided by The Guardian, is a helpful and smartly displayed guide for those still not sure what Bitcoin is.

Another factor that could be contributing to the hold-up of Bitcoin becoming a more conventional currency is the safety people feel in having a central authority that verifies all of the transactions. Although a loathing of bankers and a distinct lack of trust in the banking industry  has grown over the years, mainly due to the financial crisis of 2008, people still like to know there is a building nearby, where supposedly, their money is securely held. Yet this attitude is not shared by millennials, who have a less nostalgic view of banks and bankers, which is of real concern to the financial sector.

Even though the use of Bitcoin remains limited, people are gradually becoming more acquainted with its advantages and the opportunities it provides, in terms of cutting out the middle men and making individual decisions about how money should be saved or spent. As more and more people realize they are not reliant on bankers, they don’t need to pay exorbitant administration fees or fill out endless forms, they can do it all themselves. There is no doubt that Bitcoin is undermining the authority of big banks and huge financial institutions and will continue to do so as this cryptocurrency continues to grow mainstream.