The BitCoin Auction - Watch this space!

Currency of the near future?

'Wild' is one word than can be used justifiably to describe fluctuations in the value of a Bitcoin.
Regardless, there is no doubting that for the medium and long term this value will only increase as the use of the Bitcoin for retail purposes becomes more mainstream.

China with it's recent decision to ban trading, underwriting or offering insurance in Bitcoin by its financial institutions did have an impact on the value however in retrospect, this has been only temporary in nature.

Still held predominantly by investors speculating on prices,  Bitcoin is fast entering the market.  Examples such as Virgin Airlines accepting Bitcoin are percolating through the ecommerce world.

It was not that long ago that many commentators noted the speculative nature of Bitcoin and quoted its demise - today this seems very unlikely.

What makes Bitcoin attractive for commerce is a number off things.  Firstly, there are no transaction charges involved that are associated with more traditional forms of exchange such as credit cards.  Secondly, exchanges of Bitcoin are secure and almost instantaneous.  On a third count, exchanges are pretty well anonymous in nature.

Mining Bitcoins

The source of all Bitcoin has been Bitcoin Mining and just a quick look at eBay for Miners can confirm that this is a popular endeavor however it leaves this writer bewildered as, even with the currently relatively high price of Bitcoin, most if not all offered will not give a positive return on investment?  Frankly to be successful here requires a substantial outlay of many thousands of dollars on equipment that has to be pre-ordered months in advance.

True, those who have invested in this 'high end' equipment have in general profited but those using inferior product generally lose money on their investment.

'Difficulty' is another important factor here.  For the lay person - the more coins that are mined, the harder mining for them becomes.  What this means in effect is that 'high end' mining equipment has a limited life where it is profitable to operate, approximately three to six months.

This article is still being drafted as of 14th January 2014 so come back in the next few days with the article hopefully complete and more comprehensive plus more relevant pages and links.