Bitcoin’s Price Fluctuations Shouldn’t Obscure Its Value As A Payments System

terminalbitcoin11 Apr 2014 / Business Insider – Bitcoin’s price has been plummeting lately, giving plenty of ammunition to Bitcoin’s many naysayers. But all the talk about Bitcoin’s price fluctuations misses what we at BI Intelligence think is the real value of Bitcoin — as a payments network that could provide merchants with an extremely low-cost, virtually frictionless payments system.

In  a recent report from BI Intelligence, we explain how Bitcoin works for making transactions, from the moment when local currency is exchanged for bitcoins, to the moment when it reaches the electronic wallet of a receiving party. We look at the key advantages of Bitcoin compared to the legacy players in the payments industry and examine the challenges and vulnerabilities that Bitcoin faces as a payment network.

Here are some of the key elements from the report:

  • Unlike government-backed currencies, Bitcoin’s elegant design places a strict limit on how many units can be created — 21 million. But each coin can be divided into 100 million pieces, which will allow it to scale as a payments technology.

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