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Katerina Merzlova

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BitCoins: Why You Should Be Skeptical

Three things that don't let Bitcoins become popular

Last week, the youngest electronic currency - Bitcoin - set a record value, exceeding the value of $1,000 per a bitcoin. Economists, marketers and experts in several other areas, which are somehow related to finance, think that Bitcoins still shouldn't be recognized as the real currency like the dollar or pound. In many ways, it depends on consumers who do not fully trust Bitcoins.

Evaluating the reaction of ordinary people to Bitcoins, there are three main reasons why not everyone will accept this currency.

1. The main factor is the confidence that Bitcoins are not recognized as a real currency. Yes, some companies already accept them for payment, but their number isn't so big. Online shops also prefer to get paid for the goods with accepted-by-all money, that is not very good for Bitcoins. Therefore, consumers think that buying this online currency is not a good way to invest real money. In addition, the fate of Bitcoins is not yet well defined. Experts assure that the next year will increase the popularity of Bitcoin, but it is obvious that it will happen in not all countries. People's inertness is a very important factor that must be considered .

2. Another reason is the actual  insecurity of the network currency. Yes, its transfer from one PC to another occurs over an encrypted protocol, and you need to know the password to decrypt it. People, as always, ignore safety rules and keep these passwords directly on their computers, or (which is even worse) in cloud services. It sometimes is very easy to get access to them.

3. Probably Bitcoins spread would be much more effective if they had the support of banks. However, classical financial institutions are extremely skeptical about this new "currency" and the number of banks that support it is critically low. Of course, it will gradually become larger, but, again, not in all countries.

On this basis, many experts have come to the conclusion that there are prospects for Bitcoin, but they are very, very vague now. However, Bitcoins are increasingly referred to in the news that clearly plays into their hands - the Internet users have got actively interested in them.

More Stories By Katerina Merzlova

Katerina Merzlova is a marketing manager at Sumatosoft, an Agile Ruby on Rails company developing custom web solutions for enterprise, mid-sized and startup companies. We specialize in top quality solutions on a SaaS model - CRM, HRM, ERP, etc. We're also eager to provide software development and QA services separately. We have a professional team which provides manual (functional and non-functional) and automated testing services.