During the current banking crisis in Cyprus, one currency is booming; the Bitcoin. The Bitcoin is the digital currency which is rapidly gaining popularity due to the few regulations within it functions. The online currency, which is unregulated and doesn’t rely on the banks, is the fastest growing currency in the world, now worth more than £500m.
Over the past two weeks, the Bitcoin has enjoyed a huge jump in value from $40 to $72. This growth is mainly due to the apprehensive European investors who are buying up the currency in the light of Cyprus’ economic crisis.
The Bitcoin first appeared in 2009 and the number of online companies who now accept the currency continues to grow. Without the involvement of a central bank, it makes payment transfers much quicker and easier to complete, and also makes transactions difficult to trace, thus offering privacy to users.
Of course being an online currency that isn’t regulated does make it susceptible to abuse. It has been used on the black market to sell illegal drugs and has experienced technical glitches. However, these only seem of minor importance to the widely used currency. The technical glitches are being smoothed out and it looks as though the Bitcoin is here to stay.