Bitcoin Is the New Gold: Goldman Sachs

Lloyd Doyle
January 13, 2018

The North American Bitcoin Conference is due to kick off in Miami next week, but anyone hoping to spend their Bitcoin on tickets, costing $1,000 (£738) each, will have to purchase one using traditional credit cards or PayPal.

"This mechanism is not functioning at present because, rather than for payments/remittances, now the main reason to trade and own cryptocurrencies is speculation (to take profit from price increases)". In return, they are rewarded bitcoin.

With that in mind, here's a rundown of the latest prices and news in the cryptocurrency world.

To be clear, the incident was by no means a pump and dump scheme lanced by the software company. If a massive sell-off from highly overvalued ICO projects and digital asset occurs, the money will not flow into fiat currencies.

The cryptocurrency market has always been a source of frantic ups and downs. Only a day after that, however, Microsoft released a statement claiming that the announcement was inaccurate and "inadvertently posted", before promptly reinstating bitcoin as a payment method.

Relatively slow transaction times and high processing fees for bitcoin payments have led to many merchants rethinking their decisions to accept cryptocurrencies.

After all, end-users trying to pay with bitcoin or other cryptocurrencies would be confused when a large part of their transaction total is lost to network fees. Last month, gaming platform Steam also stopped accepting payments in bitcoin, citing "high fees" and "volatility".

The conference certainly isn't the only merchant that's been forced to rethink cryptocurrency payments.

The Seattle-based firm added the option for payments in Bitcoin around three years ago, in December 2014. Many countries had stable currencies and inflation rates before bitcoin came along.

According to industry site BitInfoCharts, in the last three months, the average bitcoin transaction fee was as high as $55. The fees have skyrocketed from what was a few cents per transaction a few years back. The cryptocurrency has regularly reached new highs and has almost doubled in value over the course of the young year.

Bitcoin may seem like a solution in search of a problem in the USA, where transaction costs are already low and the dollar stable. While some argue that this goes against the cryptocurrency's original ideology as laid down in its whitepaper, others believe that it is a natural evolution for bitcoin.

Other reports by Iphone Fresh

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