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Bitcoin is the most popular virtual currency in the world today and is widely accepted by online sports betting sites and casinos around the globe. Over the last 12 months over $200m in bets have been placed on the currency and it is up over 50% against the US dollar.
A lot of people get really mad when Bitcoin gets attacked, and often that happens to Bitcoin. It happened to the first, but Bitcoin was then taken down, it happened to Gold and it happened to e-Gold – which is also not Bitcoin, but it was attacked, so we see that this is not a one-off, this is a growing thing. I think these attacks happen to Bitcoin in order to scare people away from Bitcoin – because a lot of people are very nervous about cryptocurrency and that worries them. So they attack it, then a month or two later it’s okay, we’re back to business.
So this is the problem and this is why Bitcoin can’t really do something about this problem. If this attack were to happen to Gold – Gold is a big commodity and it’s quite stable. If Bitcoin got attacked like that, it wouldn’t affect the price of gold. It would, of course, take away Bitcoin and people would get very uncomfortable about it and then it would become difficult to use bitcoin, because Bitcoin needs an exchange to take that transaction.
I have to say I don’t think that we can do much about it. It’s inevitable. One thing you can do is you can use other virtual currencies. There are actually some alternatives, I mean there are e-Gold. I don’t recommend it because I think it’s really hard to store Bitcoins securely. If you do store it securely it’s probably best to transfer it to a wallet which guarantees the safety.
I think there is a lot of room for innovation and I think that with Bitcoin there are still good ways to improve it. A lot of people want more privacy and more anonymity. One of the things that is being talked about is to make the transaction in Bitcoin more anonymous or harder to trace, is not to move it around the world in real time as fast as you can use it because someone can try and figure out your identity with Bitcoin. If it goes through in real time at least you don’t need to know where Bitcoin is going to, and if somebody does know where it is going to they could be able to send you some money that they’ve stolen.
A number of people have started to develop wallets that don’t want their Bitcoins to be in a wallet so that it may be a little harder for people to figure out who you really
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