Bitcoin is the digital currency exchanged online that has taken a bad rap. News abound of the currency being used for nefarious ends, such as drug running, illegal gun sales, human smuggling and terrorist activities. In the past couple of years, the value of the currency has been on a roller coaster ride, making millionaires of some and paupers of many investing in the currency. Now Bitcoin is undergoing a bit of a renaissance, with its values seemingly stabilized but still retaining the notoriety for its use online.
Opening doors for Bitcoin
British financial authorities, in a recent Reuters report, have announced its open support for the digital currency. It is now opening its doors for the open trade and use of Bitcoin, albeit under a slew of regulatory edicts to protect users of Bitcoin. London is now in the midst of competing with other financial tech hubs such as New York and San Francisco in creating a system where Bitcoin?s can be openly used as if it were regular shares or currency in the stock market.
One of the first moves the London financial authorities made was to make bitcoin trading exempt from value added taxation. Others have followed suit, with Australia has included bitcoin transactions to be covered by its goods and services tax.
The Competition of Bitcoin
With Bitcoin gaining legitimacy in some financial areas, some others have chosen to tread a path to improve on what bitcoin had started. In a recent report from TechnologyReview.com, a professor from Stanford University had announced the creation of a form of digital currency able to manage payments at a faster rate with a number of better security features. Professor David Mazieres, in a white paper recently released on Stellar.org, is a better system to how Bitcoin operates.
Bitcoin uses software linked together via the Internet. This network determines the rules and principles that verify the transactions, thus there is no single controller of value or volume, unlike what central financial authorities have in countries and nations.? Now, with the cryptocurrency rules, which Maziers instituted, the use of computer generated financial services would become more widespread and more secure.
Image courtesy of Creative Commons contributor Zach Copley.