Electronic payment system Bitcoin is garnering praise, attention, and scrutiny in equal measure amidst claims the cryptocurrency could disrupt the entire global financial system.
The future of Bitcoin has never looked so important to so many people, as countries in the grips of financial difficulties turn to Bitcoin, while those with an interest in stocks and shares observe the growth of this new currency-commodity hybrid with intrigue.
Interest and uncertainty
Bitcoin garnered huge interest in 2014, which led the likes of Paypal co-founder Peter Theil to set up his own Bitcoin payment solutions company. Cameron and Tyler Winklevoss, of Facebook fame, also created the Winklevoss Bitcoin Trust to invest and trade in Bitcoin, which received more than $200 million in publicly disclosed 2014 VC investments.
But the payment system has endured a more uncertain time during 2015.
Johann Palychata, a research analyst at BNP Paribas – one of the world’s biggest banks – told the Independent that the open source nature of Bitcoin could lead to “total disruption” amongst the financial world, with the existing systems that allow people to buy and sell shares and debt being potentially overhauled by the rise of Bitcoin.
The teething problems as Bitcoin emerges