Miruna Codeanu

Bitcoin shall not fail

In espresso on December 2, 2013 at 7:38 am

Most of you believed it was a joke: an online currency. At the beginning I was: wow, this is pure genius, we needed this. We already live our lives online, therefore we needed an online currency. And there were some other people pretty excited about it. Then, the hype stopped. The Bitcoin was silenced and I thought I was wrong. Now the bitcoin is back and I’m starting to think that it will not go anywhere anymore. Sure, most people don’t want or trust a currency that is not issued or regulated by a form of government. However, I’ve been saying this and I’m not saying it for nothing: times are changing. Not only they are changing, but they are changing faster than at any other moment in history.

The hype about the digital currency is back:  A Cyprus University Is First In The World To Accept Bitcoin For Tuition and Virgin Atlantic to accept Bitcoin for space travel. Ok, a Cyprus university, we can understand, Cyprus is a country facing economic challenges. How about Virgin Atlantic? We all know Richard has his eccentricities but we tend to trust his business instinct. After all this man is rich enough to start a company that travels to space. Bitcoin is rising where the state has failed dealing with national currencies, but not only. For example: Cyprus. The first Bitcoin ATM was supposed to be installed in Cyprus. However, it was installed in Canada, Vancouver and it was a huge success: “On its 29th day of operation at the Waves Coffee House in Vancouver B.C., Robocoin’s Bitcoin ATM exceeded $1,000,000 CAD in volume from 1,576 transactions. (source: geekwire). The use of Bitcoin was related to the financial crisis in Cyprus and Spain. The Canadian example proves the contrary: we could all actually like the Bitcoin, from Cyprus, to Canada to Richard Branson. It might be that we’re all getting a bit sick of state-regulated currencies, that we would even take “random” instead of “regulated”. Remember “occupy” movements? They might be dead for the moment but there’s still social unrest in the world. Let’s watch Ukraine in the following days. I’m not saying “the people” will win. I’m saying we might be seeing a new “orange revolution” in Eastern Europe quite soon. Bulgarians were out protesting, Ukrainians are doing the same. It probably won’t be orange, people don’t actually know what they want, but they know they are sick and tired of what they had.

Along with the new world order we will also need a new currency . The Euro is falling.”Our euro area growth outlook for 2014 at 0.6% remains below the consensus of 1.0%.” (source: Business Insider ). As America is losing its influence on the world, its national currency will also loose its influence.  We all know, China is rising. China is ,still, a communist country. However,  I don’t see anybody very anxious to buy Yuans. Could it be that this new digital currency will not only be our digital currency? You know where the whole hype around the Bitcoin appeared? Uhum, exactly, China. Even Chinese people have a problem with the Chinese banking system. Can it replace the dollar or the euro? Anything is possible.  Are you fearing black market? Well, the only way to bring black market to the surface is to legalize it in order to be able to control it. Yes, I’m talking prostitution and drugs. Legalization is a recipe that proved itself quite successful for bringing black money to the surface. There are some other crypto-currencies too but Bitcoin is the most substantial in transactions (more $10 billion) and there are some rumors that the ones to contribute to the popularity of the Bitcoin were the Chinese rich people.

True, there a bubble around the Bitcoin The Bitcoin will fall again, but will rise again. If you are buying bitcoins right now, when they are on the rise, and complaining about its fall 2 months later, you shouldn’t be transacting anything in the first place. Key is to buy them when they’re low, sell them later. There is some fascination around the Bitcoin and this fascination will continue. This fascination will also inflict bubbles around the bitcoin. Momentarily, I’m fascinated, maybe I could even call myself a supporter.

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