Even after the price of Bitcoin has fallen significantly due to Mt.Gox and government regulations, people still want the digital currency. Speaking to RT, a Russian news website, the CEO of BTC China, Bobby Lee, has said that the revolution known as Bitcoin will become larger than the Internet. He stated,
“I think over the next 25 years, we will see bitcoin evolve and become more mature. It will be a wild ride, it will be exciting.”
Bobby Lee believes in Bitcoin and doesn’t see it as just a fad that will fade into the background once the craze is over. This is because whenever the price of the digital currency falls, there are people who are waiting to buy it at the low price. This in turn will increase the demand and popularity of Bitcoin even though to many it seems like Bitcoin’s bubble has just burst. In his own words, Bobby Lee says,
“So that’s what’s amazing about bitcoin, it’s truly a global phenomenon, very resilient and the reason it is resilient is because many people want to buy into it. Whenever the price dips, we see people sitting on the sidelines eager to buy.”
Bitcoin’s price dropped rapidly when Mt. Gox, one of the world’s largest Bitcoin exchanges, had to halt withdrawals due to a major glitch. Mt. Gox later blamed its technical problems on the Bitcoin protocol itself.
Bobby Lee: Bitcoin is Like the Internet
BTC China’s CEO compares glitches in the Bitcoin system to the beginning years of the Internet. Just like the Internet, Bitcoin’s uses will develop over time. Bobby Lee mentions that when the Internet was 5 years old, just as how old Bitcoin is now, it was looked down upon and the media didn’t talk about it much. Look how much the world has changed since then. Speaking about Bitcoin, Bobby Lee says,
“It’s like the Internet. The reality is that internet penetration is a lot higher than it was 10-20 years ago.”
Bitcoin can work in two ways: either you can mine for the coins by using specialized hardware, or you find a seller who is willing to part with the coins for a price.
Regulations in China
After the Chinese government issued a band on trading and selling Bitcoin, it seemed like a tough call for Bitcoin traders in China. However, Bobby Lee’s BTC China found a loophole around the ban and reopened the Bitcoin exchange on January 31, 2014. Lee has explained that his Bitcoin exchange is in agreement with the new rules laid out by the government for virtual currencies.
Bobby Lee mentions, “Running an exchange is a very difficult job. Given that we are running an exchange for decentralized currencies and we make mistakes and people take their bitcoins away, we really lose it. There is no way to reverse a transaction”.
New York BitLicense
New York, unlike many other parts of the world, is accepting Bitcoin to an extent. The American state has said that it will adopt federal rules and regulations in order to oversee digital currency transactions.
Firms and businesses who are looking to use virtual currencies will have to get a “BitLicense” which will be issued and monitored by New York Department of Financial Services. The Department is noted to have said that it was hoping not to “stifle innovation.”
Bobby Lee is happy to see that New York is embracing the digital currency. He says, “I’m glad to see New York as a state is taking the leadership in proposing bit licences. I’m optimistic about that.”
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