When a virtual currency becomes more valuable than any other currency on the planet then many have to worry or celebrate, starting from the US congress’s meetings about the issue of Bitcoin and the coin’s ban from some countries. Was this due to its lack of Government control? Definitely, the same reason the Bitcoin has rose to a peak value of $900 on Mt Gox, Bitcoin’s largest exchange market, a day after it hit the $500 mark. We have to ask ourselves whether this is about to come to an end. The currency might not come to real life if it stays at that price
But as the coin gains value and popularity, the anonymity of its users is slowly declining and this encouraged researchers to work together to make the currency more secure. Remember the SilkRoad incident where the suspected owner and several drug dealers on the website were apprehended after the shutdown of silkroad.
The coin which was launched in 2009 has seen rapid growth and there about 12 million bitcoins which are valued at roughly $12 billion and for some has been a lucky bet as compared to forex exchange, Just In case you bought a bitcoin last month at its about $250 then you have hit a jackpot if you trade it today. But will the curve keep looking towards the sky?
No, honestly the coin will or has hit its peak and soon or later drop and the drop could take its worst hit, and the coin leaves several questions whose answers we shall soon see. Will the value keep at that price? Will the bitcoin keep the anonymity of its users? Will the coin survive the war against national currencies and governments?
Anonymity remains an issue of the wallet, because some wallets let you check out from you mobile phone mobile number (Kipochi), others let you check out using your bank, a few let you use your atm, and just in case the FBI cracks down on any wallet/check out service then the information where you cash out your bitcoin could have your personal information which kills your anonymity. Recently the FBI shut down a bitcoin exchange service for investigations on Silk Road, I can’t guarantee that the users’ information was secure.
Will there be a panic attack, that will see most users cash out their virtual wealth for fear of drops in the value? This might just be the thing that actually leads to decline in the value of the virtual currency.
Hard facts, we still need the bitcoin for what everybody else calls ‘dirty’ transactions, making donations to those charities, journalists of activists whose bank accounts have been frozen. We still need the coin, so its up to the developers and users to make sure the coins stays strong, because it might not be today, tomorrow the day after that, but sometime you might need the Bitcoin.