The Bitcoin currency or the virtual money is still holding its head up in spite of the negativity it has been receiving in the news lately. First, there is the news about the bankruptcy and hacking of the first Bitcoin bank, Flexcoin, and the suicide of the business executive in Singapore.
The question now is how strong is the Bitcoin? As of now, the Bitcoin exchange rate is still high at 647 dollars for every Bitcoin. There were predictions that the value of Bitcoin will drop drastically brought about by the many negative news about Bitcoin, but apparently, the value is still high.
Bitcoin users do still have faith in the system. They believe that each Bitcoin is safely protected by a cryptographic code that is very difficult to tamper with. It was in the news lately how the Bitcoins placed in the hot wallet were lost from theft because a hacker successfully transferred funds. Those Bitcoins that were placed in the cold storage were not touched because the cold storage remained off line. Despite the hacking incident, Bitcoin exchange rate is still at its highest and the users are still showing that their faith in the system has not faltered.
Why People Use Bitcoin
The use of the digital currency or Bitcoin is becoming very appealing to more and more people. This is because of the convenience of wiring funds from one person to the other. There is also the convenience of not having to divulge too much information about themselves. In a regular bank, a person will be asked to fill up a form and expose sensitive information such as his monthly income, and so on and so forth. At Bitcoin, all it takes is to download the software or the app and the user can now start to acquire Bitcoins in many different ways.
The most appealing feature of the Bitcoin software is that the user can do financial transaction with the use of his computer or smartphone with no additional charges. PayPal users pay a certain amount of surcharge for transfer of funds, at Bitcoin, it is totally free. Additionally, there is no limit as to the amount of Bitcoins a user wants to transfer. Thus, the system is very vulnerable to illegal activities. It is this very reason that the government in some countries are working to regulate the