Crossing virtual walls, Bitcoin exploded in real life

In the first few years, almost no one paid attention to Bitcoin virtual currency, but gradually people realized its importance and originality.

Virtual money in real life

According to estimates by Bitcoincharts , there are about 12.2 million bitcoins in circulation, worth 11 billion USD. In other words, the development of bitcoin is quite strong globally. In 2013, bitcoin was ranked as one of 10 economic events and is also one of the 4 most prominent technology events in the US.

On May 22, 2010, Laszlo Hanyecz was the first to use 10,000 bitcoin to buy two pizzas worth $ 25 ( equivalent to $ 10 million today ). In February 2011, when more than 5 million bitcoins were created, the value of the first dollar was equal to 1 USD.

Crossing virtual walls, Bitcoin exploded in real life Picture 1
The bakery accepts to buy with bitcoin in Singapore

But then, the price of bitcoin has since gradually increased, in early 2013, the value of a bitcoin unit only fluctuated around 15 USD, and in November it passed 200 USD and increased continuously, until November 27, price Bitcoin on Mt. Gox has surpassed the 1,000 USD / Bitcoin mark. Recently, Bitcoin price has dropped to about 820 USD / Bitcoin on Bitstamp trading floor. 1 year ago, Bitcoin price was about 15 USD / Bitcoin.

Virtual money is gradually moving into real life, using virtual currency Bitcoin in online payment for many goods and services that have become familiar. Since 2012, Bitcoin has been really feverish, when some well-known businesses in countries that accept this virtual currency are the means of payment. In 2013, Bitcoin prices increased sharply when some countries officially recognized this currency.

According to Bloomberg , within a month, CoinMap's business number, a website that lists a list of companies that accept Bitcoin payments, has tripled to more than 2,000. CoinMap statistics, there are 160 retailers in the UK accepting bitcoin.

Crossing virtual walls, Bitcoin exploded in real life Picture 2
Many transactions are accepted with this virtual currency.

In Canada, a special ATM allows customers to quickly change this currency into cash. Currently there are 4 Bitcoin ATMs in the world, 2 in Canada, Hong Kong produced by Robocoin Technologies and 2 by Lamassu in Saudi Arabia and Singapore. Lamassu set up to install 100 Bitcoin ATM plants before spring 2014. This incident has great implications for the Bitcoin money transfer system, a testament to the global position of Bitcoin.

The non-adventurous travel club for the billionaires - Virgin Galactic - has also accepted the bitcoin. In the town of Vicco, Kentucky ( USA ), there are also cases where the police chief asked for bitcoin pay and was approved.

Leading Chinese Internet company Baidu also recently approved some payment transactions with Bitcoin. Recently, Germany became the first country to recognize Bitcoin as a legal currency in the country.

Attractive investors

With the potential to create a cheaper and safer payment method than credit cards, Bitcoin makes investors begin to trust that it will be widely used by ordinary consumers in buying from legal retailers. Bitcoin is as practical as security and application for international payments and cross-border transactions.

Circle Internet Financial is one of the companies seeking to promote Bitcoin to become a popular currency for retail payment systems. With a $ 9 million investment in the company, Jim Breyer, Silicon Valley venture capitalist, believes it will be time for payment systems of major retailers around the world to accept Bitcoin.

Crossing virtual walls, Bitcoin exploded in real life Picture 3
The value of bitcoin is increasing

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According to analysts, they actually pay between 2-3% of each transaction if the customer uses a credit card or from 2.2% to 2.9% per transaction, and 0, 3 USD with buyers using paypay. These units said that Bitcoin payment system will have lower cost than card payment. This not only benefits store owners but also encourages consumers to shop and use more services.

Fred Ehrsam , co-founder of start-up Coinbase, said: " Virtual money makes a significant reduction in the cost of payment ." Many experts predict retailers will encourage customers to use Bitcoin virtual money through discount or attractive gifts.

On CNN, Fred Wilson, a high-tech investor, said: ' I think the monetary world changes rapidly every day and the reason for that change is Bitcoin. We will see money flows on the Internet the same way that information and images are transmitted on the Internet and this is a new trend to invest . '

Bitcoin has officially been backed by the US Federal Reserve. Chairman Ben Bernanke said: We will consider Bitcoin as a currency and used in international payment systems.

Germany is the first country to recognize Bitcoin as legal money, allowing use to pay taxes and purchase goods. However, Bitcoin is not classified as electronic money or foreign currency but is like a financial instrument, subject to German banking rules. According to the German newspaper Die Welt , the government stressed that Bitcoin's legal classification means that commercial benefits arising from the use of Bitcoin are taxable.

Bitcoin begins to have value for conversion, promising to penetrate deeper into real life, including hidden risks in an uncontrolled virtual currency market.