With its value recently surpassing that of an ounce of gold, closing at $1,268 per coin on March 2nd to gold’s $1,233, it was perhaps inevitable that Bitcoin would eventually join the foreign exchange market. But does the cryptocurrency’s rise to global stardom have parallels in forex or is trading in the currency still something of a pipedream?
Bitcoin’s ascendency has been rapid but never assured. Approaching its tenth year of existence, the cryptocurrency is the brainchild of mysterious inventor Satoshi Nakamoto, an entity that vanished in 2010 and, despite numerous claims to his identity, doesn’t seem to have resurfaced. In 2017, Bitcoin is accepted in places as varied as Microsoft and cafés in London but it (arguably) wouldn’t be where it is today without early support from the casino niche.
As far as forex trading is concerned, Bitcoin has potential in trading, albeit as something of a novelty at present; it offers several advantages over fiat tokens but the need to convert from the cryptocurrency to dollars (for example) at some brokerages nevertheless adds an extra step in the trading chain. It’s also far from a well-supported option. For instance, forexbonus.com.au, a website that collates forex offers and rebates and has an exclusive array of offers for Australian traders, doesn't list any Bitcoin-accepting sites.
However, the salient point is that Bitcoin, over other cryptocurrencies like Litecoin, is still a viable option for currency trading and a potentially cheaper one.
Perhaps the most notable perk associated with trading in Bitcoin is the fact that it is decentralized, a trait that means the cryptocurrency has no association with banks or similar financial institutions. Consequently, its value isn’t influenced by inflation rates, political strife (Bitcoin usually gains during periods of unrest, such as after Brexit and in the recent crisis in Venezuela), and it is ring-fenced from bank bailouts and other financial ills.
Low transaction fees are another plus of Bitcoin trading. As the cryptocurrency’s records are managed and verified by the public, banks cannot levy charges on coins moved around. This particular perk is endemic to all transactions involving the cryptocurrency – or should be; the increasing size of the Bitcoin network has given rise to transaction fees. However, they’re almost universally significantly lower than the ones for major fiat currencies.
Bitcoin also allows forex traders to operate pseudo-anonymously, which is a peculiar quirk of the technology behind it – blockchain. While it is possible to hunt an individual down on the blockchain, it usually requires information from a number of sources. With that in mind, a regular Joe is as good as invisible. The main advantage of blockchain’s anonymity is not so much hiding transactions as being able to keep names and addresses secret; users simply send money to a Bitcoin address.
Finally, Bitcoin’s volatility has long been one of its major drawbacks. However, with increasing adoption throughout the world, peaks and troughs are less severe and the overall price has been stabilizing. In fact, Bitcoin’s value has been trending upwards since January 2015, adding almost 450% to its per-coin price since then. It’s still very much the choice of the more experimental forex trader but Bitcoin is worth keeping an eye on over the next few months and years.
Win a double pass to THE COMMUTER
Looking up Liams filmography I was astounded that the sheer number of films he has been in. 135!... Join the Discussion..
Win New Zealand by Rob Suisted $49.99
Id love to send this to one of my American relatives to let them see what they are missing! Join the Discussion..
Netflix or Lightbox?
Both. There are things I watch on both. If I had to choose one I'd pick Netflix, but I'm glad I... Join the Discussion..
Where do you get your caffeine hit?
Wish they brought back the black V drinks Join the Discussion..
Win Kiwiana Uniquely New Zealand $24.99
This book would be an excellent addition to my personal library. Join the Discussion..
Surrounded by nothing but tranquil water, SpringBreak Fiji brings together the best of everything
The Fijian Cup
The Pacific Touch Rugby festival (Fijian Cup and Kava Cup) is underway on November 2, 2017 and with support from Touch Fiji and...
Rock Island VANUATU
Rock Island is an all inclusive fully immersive travel experience which was brought into the music festival scene by The Rock and...
With seven years and growing under their belt; TourismHQ has established and continues to deliver on their extensive wealth of...
Bringing a new approach to Sport Tournaments
NZ Realtors Network Conference
NZRN Realtors Conference
- SPRING BREAK FIJI
- SPRINGBREAK FIJI
- SAFETY AT SPRING BREAK
- SPRING BREAK