As you may know, we have recently installed a bitcoin machine in our café located in downtown Red Deer. This is the first bitcoin service of its kind here in the city of Red Deer, Alberta! So far it has had a lot of attention even drawing coverage of the CTV news crew.
A lot of people do not know what bitcoins are or what they are all about so please let us explain the basics. Bitcoin to some may be a new way to process payments similar to PayPal or Visa, but you don't need a third party to enable a transaction. To other people there can be a bit of skepticism, looking at bitcoin as a fad, the same way people might have viewed the internet or the telephone back in the day perhaps. But what is it really? How does it work and why do we have a need for such a thing?
To start with Bitcoin is a currency like the Canadian dollar but with a few variables thrown into the works. Part of the problem with a currency like the dollar is inflation and one of the main causes of inflation is the endless ability to print money. This can get out of control fast! A good example of this is Germany's hyperinflation during the 20’s when people started burning money, as it was the cheapest fuel source! I know it sounds crazy to a lot of us but google it! It really happened. With bitcoin this ability to just keep printing money is limited however as bitcoins are mathematically controlled and there is a limit to twenty one million bitcoins and this will never be increased nor decrease and not being attached to a country the bitcoin is border-less and allows for trading everywhere in the world.
Bitcoins are available as any other currency would be, you can buy things with them, sell something and get bitcoins in return. More and more you’ll see all kinds of businesses accepting payments with bitcoins. All kept in your laptop, mobile devise, on line or even get a portable drive to just store your bitcoin in, the options are plenty and do a transaction with bitcoins is just as easy as sending an Email.
From the perspective of a currency bitcoins are still in their infancy and I’m sure we will see them go up and down as any new product or form of trade would. So in the end where is Bitcion headed? That's the real question. It has the ability to change the way we spend our money as dramatically as the internet has changed the way we rent movies and listen to music. Bitcoin could be the revolutionary tool to start a new frame work in our economy. Or it may fizzle out in a few years... what do you think? It has no inherent value, it sorta looks pretty on a screen, there nothing that makes it more valuable than another product … oh wait that’s gold.
If you have more technical questions we'd offer you a chance to talk to the experts. www.btcsolutions.ca or tweet them @btcsolutionsca. They are very helpful and always around to answer your questions. They are also the people that provided us with the service we now offer you!
What's your thoughts and feelings on Bitcoin. Is it something our local community would use or is it just for the global economy we'd like to know your thoughts..