Inbound Debate #21 – Bitcoin Virtual Currency Goes AWOL

Bitcoin is the world’s first virtual currency. It was created from a bedroom by a so-called ‘Satoshi Nakamoto’ (true identity of the bitcoin creator yet to be revealed) in 2010 and served as a decentralised and unregulated currency where trades made with bitcoin were totally anonymous. Its anonymity resulted in widespread adoption; it sidestepped laws and opened black markets to a larger audience. Recently however, bitcoin’s increasing rate of adoption has led to high profile investors and speculators (including the Winklevoss brothers) purchasing the ‘currency’ to earn a quick buck. This rapid investment has forced the price to rise from around $20 to over $260 in the space of a month. This hyper-inflation put a huge amount of stress on the market resulting in what appears to be an enormous bubble… at the time of this post, bitcoin’s price has dropped by over 70% to $60.

The market is infamous, regulation is non-existant, and just recently this ‘currency’ has been taken seriously. James, Dan and Nick discuss: