13 Feb 2014 / IT Web Security – The use of Bitcoin in SA – as an alternative to the rand – is set to take off as more services are created, awareness grows, and mainstream online stores start accepting the virtual currency.
This will disrupt traditional financial payment systems, which are seen as costly and outdated. Yet, wide-spread adoption of Bitcoin is not without its hindrances, such as the time a transaction takes to settle, hack attacks, and possible interference by government regulators.
Bitcoin was created as an alternative to physical currency in January 2009 by Satoshi Nakamoto, although there are doubts as to whether this is his real name. The virtual currency allows users to send payments within a decentralised, peer-to-peer network without the need for a clearing house. However, unlike banks, Bitcoin third-party accounts are not regulated.
By design, the supply of Bitcoins cannot exceed 21 million and there are more than 12.4 million units currently in circulation, according to Bitcoincharts, a Web site that tracks activity across exchanges.
Early days
Sonya Kuhnel, founder of local entity Bitcoin Payments, says the fact that it is so cheap, secure and quick to do Bitcoin transactions is appealing to developing countries, such as SA…… Read more
