As you might already know Bitcoin is a decentralized digital currency/digital wallet. It is paperless, bank-less and state-less and allows people to pay directly for goods and services without any middlemen involvement (banks). Sounds amazing, isn’t it?
About Bitcoin, Points to Ponder!
Well to recognize the deep intent of topic under discussion, we suggest you read the following points:
- The existence of bitcoins and their transactions are based upon complex math algorithms.
- The design of bitcoin has an aim to outdo companies like Visa, MasterCard, PayPal and the banks.
- In contrast to Visa and other companies, bitcoin can render multiple swift transactions simultaneously and can provide convenience to users to spend money along with faster return on investments.
- Unlike banks, bitcoin does not have a central system to process all transactions. Instead, each transfer and purchase are processed by one of the many thousand volunteer networks of computers.
- The bitcoin transaction is recorded in the blockchain (central ledger).
While keeping the above points in mind, you need to know that more merchants are accepting to use bitcoins and it can range from buying web hosting services to pizza or be even a pedicure. In this case, though a lack of bitcoin regulation may appeal to some, the investment in this cryptocurrency isn’t for the fainthearted as a small proportion of money as bitcoin investment can bring swings in value. This means this digital currency is susceptible to volatility as it’s devoid of any stability mechanisms (yes, now you are allowed to panic).
Here Comes the Real Dilemma
The anonymous nature of bitcoin has become a curse for web hosting as the negligible identity of the person is known which becomes difficult to be tracked in case of a fraud. The transactions occurring through bitcoin are one to one transactions so spamming can be done easily. The issue here is that the converter could be an anonymous user on the network. So this means that they can’t be tracked through their IP addresses which make their tracking much harder.
Money laundering is also done through bitcoins. To continue hindering the launderers, the authorities have to keep up with the new trend and today bitcoins seem to be the trend.
As the price of bitcoin has skyrocketed in just a few years, more and more merchants are showing an inclination towards such digital currency that involves almost no to negligible transaction processing charges. Bitcoin’s momentum at this point of time seems to be undeniably high. This pattern brings in the transaction safety issues too along with the spamming that can be easily done to web hosts. Since the identity of the user is private and hidden with no regulatory body involved, it’s creating lots of challenges. The much hype that is associated with bitcoin ties to the uncertainties which thus make this new, accessible and highly convenient digital currency truly volatile.
Do you think webhosts should accept bitcoins? Your thoughts are welcome!