2014-Sustainable Industrial Processing Summit
SIPS 2014 Volume 1: Mining
| Editors: | Kongoli F |
| Publisher: | Flogen Star OUTREACH |
| Publication Year: | 2014 |
| Pages: | 424 pages |
| ISBN: | 978-1-987820-03-4 |
| ISSN: | 2291-1227 (Metals and Materials Processing in a Clean Environment Series) |
CD shopping page
Bitcoin - The " New Gold" for a " Safe - Haven" Investment?
Ricky Gu1; John Meech1;1UNIVERSITY OF BRITISH COLUMBIA, Vancouver, Canada;
Type of Paper: Invited
Id Paper: 242
Topic: 1
Abstract:
There are a fixed total of 21 million bitcoins available for trading with about half of this number currently in circulation. Each bitcoin is divisible to 10-8 which means a total number of units in the system of 2.1 million billion (2.1x10-15). A billion is the threshold for defining something as nano-scale. As such, a bitcoin may be considered a representative currency of a new nanoscale economy. There is nothing "real" about a bitcoin - rather, it is a virtual concept and so, is even smaller than the smallest entity of matter that we know about - a fermion! The value of a bitcoin is highly volatile fluctuating by several orders of magnitude in a day, and so, this represents a very risky investment at this point. However, their historical value over the last three and a half years has risen from the initial transaction price of a quarter of a cent to over 900 dollars - a value increase of over 26% per month. Bitcoin transactions are extremely difficult to trace and so, they are considered immune to taxation and currency control by governments. They are viewed by many as a convenient money-laundering vehicle which can be used by criminals to hide their nefarious ventures. Will Bitcoin just be a "bubble" that bursts like a tulip bulb coming to life? Or will it bloom into an annual plant that flowers and sustains itself well into the future. Only time and events will tell. This paper will explore the realm of Bitcoin and examine its potential to replace Gold as a "safe-haven" investment.