As the days go on, it looks like the bitcoin fever is going mainstream. Yesterday, a conference was held in San Francisco focusing on bitcoin, the digital currency that is increasing in value and recognition.
Cups and Cakes Bakery located in San Francisco has decided to jump into the bitcoin network. They are one of the few offline vendors willing to exchange their delectable goods for the digital currency. But, they are not alone in looking to make use of bitcoin in their business. We have recently found out that the USPS is also considering installing bitcoin exchange currency into their system. The bitcoin fever is definitely going mainstream.
Bitcoin Fever: Opposing Interests
On the other side we have Andrew Rose, Professor of Economics at the Haas Business School at UC Berkeley, commenting on the online currency by stating, “It’s a speculative instrument. The one attribute it has going for it, is it’s scarce.” But, that is not necessarily the case. There is more to it than meets the eye. The value of bitcoin is increased and decreased by the faith and demand that people store in it. However, the scarcity aspect of it is for sure a key factor to the value of bitcoin.
“It’s a speculative instrument and the one thing we know about speculative financial assets is that they rise and fall in price. That’s going to happen to bitcoin for the foreseeable future,”
said Rose. At the same time, there is hesitancy in investing in bitcoin because of the recent campaigns against the digital currency. For example, the Russian Prosecutor General Office has just stated the banning of the digital currency in Russia. The ruble is the only official currency in the country as stated by the office.
Bitcoin promoter Sean Percival, resident of Silicon Valley, views bitcoin as a currency with a bright future ahead. He has invested real money into the digital currency. Percival comments, “Right now, we’re in the speculation phase. At some point though, very soon, we’re going move towards transactions and actually use the technology as it was intended. But you’re right; there’s no one to go to if your money is taken. There’s no recourse and it’s not backed by something like gold or something else… It is a little bit of a faith right now, but most people are bullish and feel this is just the beginning. It’s actually going be worth a lot more.”
Even though there is opposition, bitcoin fever is spreading through different means as people are further looking to invest in the digital currency.
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