Bitcoin is the virtual money
phenomenon that is sweeping the internet, but what exactly is it? Bitcoin describes itself on its website as “a
consensus network that enables a new payment system and a completely digital
money. It is the first decentralized
peer-to-peer payment network that is powered by its users with no central
authority or middlemen.”
What that basically means for
users is that it’s cash for the internet that is not subject to the exorbitant
fees that you encounter with typical online payment options. With no central authority, Bitcoin users are
able to exchange payments online virtually free of charge. It’s an encrypted digital currency that
retains its value through the limited number of bitcoins that are made
available.
The Bitcoin software and
protocol is completely open-source. Any
developer around the world can obtain the code and make their own version of
the software to compete against Bitcoin, with desired modifications or
improvements. According to The New York
Times, 36 so-called crypto-currencies are currently listed on
coinmarketcap.com, a website devoted to tracking the digital currency
market. Ripple has emerged as a popular
alternative to Bitcoin with strong backing from Google. Ripple operates a currency as well as a
unique system on which any currency, including bitcoins, can be moved around or
traded.
According to Bitcoin’s website
(bitcoin.org), as of August 2013, the value of all bitcoins in circulation was
more than 1.5 billion US dollars, with millions of dollars in bitcoins
exchanged on a daily basis, but a recent article by The New York Times pegs the
recent market value at around $4.1 billion.
Some notable online services that use Bitcoin include Wordpress and
Reddit, and Bitcoin is also keen to point out that many “brick and mortar
businesses like restaurants, apartments and law firms” use bitcoins as well.
A recent article published on
Wired.com reports that the University of Nicosia in Cyprus — an eastern
Mediterranean island-country off the southern coast of Turkey – recently
announced that students will now be able to pay their tuition with the popular
digital currency “bitcoins.” The
university’s decision to accept bitcoins is part of an effort to support their
new Masters of Science in Digital Currency program.
Also, according to Bitcoin Magazine, BYU Idaho recently
began accepting student housing payments in the form of bitcoins for select
properties. The two properties — the
Nauvoo House for Men and the Mountain Pines Apartment for Women — are the first
university-approved student housing facilities to accept bitcoins.
“This is a huge step forward
for cryptocurrency, especially Bitcoin,” says the article. “Although someone can pay
bills with Bitcoin using services like BillPayForCoins, the recent news at
BYU-Idaho will bring ease of use and practicality of accepting Bitcoin to the
forefront.”
Bitcoin is still in the
early-adopter stage of its innovation.
Whether or not the crypto-currency will go mainstream still remains to
be seen. Saying that developers need to
modify their payment options to accept bitcoins at this point is
premature. But, there is a message to
take away here, and that message is that technology is not stopping anytime
soon.
While developers don’t need
to be early adopters, they need to know what the early adopters are doing, so
that they can be part of the early majority when it comes to providing the
latest in technological support and features for their tenants. They need to be aware of the early adopters,
so that they’re not blindsided when these things go mainstream.
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