Re: Downside to the Digital Money Boom
Right now BTC is more of a commodity than a currency - and it's a digital commodity. The price is going up daily due to hype and more people wanting to buy it than there is new BTC being created. To say that is is being used 'widely now' is so far off the mark it's funny. There are a few places that accept BTC for payment, but until there are some merchant services that accept BTC as a payment method, then I can't see it gathering momentum for actual payments. The majority of the currency movement is through exchanges, not through transactions using the currency.
The value of the BTC right now reflects market sentiment as to what it's worth. This could change at any point, and for any reason. It could keep going up as the number of BTC's mined continually reduces, or it could come crashing back down as a large BTC holder takes their profit and starts a run on selling.
The problem with BTC is there is nothing backing it, so it's not possible to determine what's it actually worth. With hard currencies, their worth is to a degree linked to that countries GDP, debt etc. With BTC it's all in the mind of the trader.
30th Jan 2015 - I was diagnosed with a brain tumor today, will have an op next week, but will be out of action for a few weeks, hopefully back on deck in 3 week's time.