Recently there have been many talks about new virtual currencies called Bitcoin which grows very fast, the more media attention and its value increases dramatically.
Today’s financial turmoil in Europe and the rest of the world also makes people invest in alternatives for fiat currencies such as Bitcoin. For most people, it is strange that one can take serious currency that is not supported by the government or central agency, but it is the right advantage of this coin.
Bitcoin developers talk to Guardian’s James Ball in their homes in downtown London and these are some of their comments:
Bitcoin is a virtual currency such as the dollar, pound, euro but at the same time we have a type of currency that is not controlled by the Central Institution, this is completely decentralized. I can send money to anyone I want, whenever I want, wherever I want in the world and no one can stop me.
Bitcoin is a very interesting concept that gets reception by many companies on the internet such as Paypal, WordPress, Reddit, Microtronix and many others. Even the ATM machine has been traveled for use.
Some Bitcoin critics say that they facilitate the purchase of drugs on the internet, developers say that the virtual currency is just a tool and you can use it for good or bad.
Fiat currency has a loss that the Central Institution can print as much as they want, therefore always loses purchasing power. The same principle applies if you have money at the bank. Instead what you have to do is put your money on assets that maintain their value or add it.
At this time Bitcoin seems to be a good choice because it increases its value, but this can change in the future. Another alternative is to invest your money on something productive like a business or land that increases value or invests it with gold.
Even though the virtual currency is a good way to diversify your portfolio and not depend on banknotes or bank deposits, you need to find a way to save a safe value for financial hedges and the best choice is gold, because this is money. Gold has become a store of value for centuries and will always, because it is valuable, limited in number, easily exchanged and it is a value store.