If you needed any proof of bitcoins power, you only need to pay attention to this latest bitcoin-related news item. Overstock, the major online mainstream retailer of beddings and Overstock items, recently announced that it would be taking bitcoin payment through the bitcoin wallet service, Coinbase. Within 24 hours of that announcement, in fact less than 24 hours, Overstock announced that it made 124,000 dollars. It was able to racked up this much revenue in the form of 780 bitcoin orders. If this isn’t a validation regarding bitcoins value as a medium of exchange, nothing will convince you. This is really a major development for bitcoin.
As we have mentioned earlier, bitcoin is a cryptocurrency that is completely artificial. Bitcoin is made by a computer software that you run on your computer. If you let your computer run long enough and it takes up enough resources, your computer will produce one bitcoin. What makes bitcoin very interesting is that the software that you use to create bitcoin can only create a fixed number of bitcoins. After that, regardless of how many times that software is run, there will be no new bitcoins created. Moreover, a lot of people use bitcoins to buy illegal stuff online. We’re talking of course about illegal drugs but also possibly illegal services like hacking attacks, virus based attacks, so on and so forth.
Bitcoin, for the longest time, has had this shady reputation. Well, it looks like Overstock’s approval and adoption of bitcoin is really opening the way for bitcoin to be a legitimate medium of exchange. This can only mean one thing, if you own bitcoins, it’s going to sky rocket in value. Remember it use to be only valued at 0.03 or 3 cents per coin. Now, it is valued at around 1000 dollars per coin. No wonder, many people are using bitcoin as an investment. Much like buying gold. But unlike gold which is traceable, bitcoin is not traceable. This is the reason why many people are parking their assets in the form of bitcoin. Bitcoins anonymity absent government regulation is one of its biggest draws.