The Financial Revolution That Is Bitcoin

bitvestment partners w3c conferenceBitcoin may be the beginning of a financial revolution that the Internet has long been awaiting.

Computers and smartphones now reside with over a third of the world’s population. However, online commerce is still leaning on a banking system that is outdated and uses computer code that existed before the Internet came into being. The introduction of Bitcoin is starting to change how online commerce operates. Bitcoin is a digital currency that does not rely on a centralized body, like the banking system, to handle transactions.

The CEO of the web payments company Digital Bazaar, Manu Sporny states, “The rise of Bitcoin has changed everyone’s idea of what a good payment system should be…Bitcoin raises the bar, so everyone’s got to come in and match that in some way.” The future of Bitcoin’s influence will be discussed at the World Wide Web Consortium (W3C) that will soon be held in Paris. The W3C is an important body in determining Internet standards. Big players at the conference will be Deutsche Telekom, Telefonica, AT&T, SWIFT, PayPal, Gemalto, and the Federal Reserve. They will discuss the future of web payment standards while in attendance.

Bitcoin was definitely a large topic of conversation at the conference. Bitcoin is interesting because it has skyrocketed in value from $30 last year to over $1000 at the end of the year. There are a few computer principles that make the currency work, namely decentralized time stamping, public key cryptography and a proof of work system. This combination guarantees to revolutionize online transactions. Bitcoin makes it cheaper to move money around and may cut out the money for companies like PayPal that get a cut for handling consumer’s transactions.

Even putting thoughts of revolutionizing finance aside, Bitcoin still has caused a stir by decentralizing transactions. Currency, or what we perceive as currency is just a form of ownership or dis-intermediated trust and Bitcoin is helping to change the game.