Bitcoin media coverage distracting from its true potential says Deloitte

potential01 July 2014 / City AM – Overzealous media coverage of the controversial aspects of Bitcoin, such as criminal activity, price volatility and exchange collapses could be distracting governments and private businesses from the long-term potential of the cryptocurrency, according to a new report from Deloitte University Press.

The report highlights the evolutionary nature of Bitcoin and its potential to be much more than just a new way to make purchases. Since Bitcoin is a protocol for exchanging value over the internet without an intermediary, Deloitte UP believes the digital currency could disrupt other systems including those that rely on intermediaries, such as “transfer of property, execution of contracts, and identity management”.

The field provides both new opportunities and challenges for Bitcoin. There are three key factors that contribute to the success of Bitcoin. The first being that it is peer-to-peer, transferring value through a decentralised network. Second, Bitcoin is open and securely authenticated through cryptography. Thirdly, Bitcoin does not require the traditional overhead payment systems do because Bitcoin miners are rewarded for providing the computing power is needed for the transaction verification system.

Despite the possible upside for the cryptocurrency there are a host of challenges confronting its progress. Price volatility, hostile regulators and security, could all play a part in preventing Bitcoin’s widespread adoption. However, the report adds, “as governments begin to issue consistent guidance on Bitcoin, businesses may become more willing to accept it as a form of payment”….. Read more


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