On-line and mobile transactions (m-commerce), and other electronic commerce (e-commerce) continue to show accelerating growth. Even the most pessimistic forecasts show a continuing increase. Electronic commerce has been a key driving force in the growth of telecom networks and specifically the internet. As a result, Bitcoin, the electronic cryto-currency has ballooned last year.
But Mt. Gox, where an estimated 70% of all Bitcoin transactions took place, has a blank web site. Its Tokyo offices are empty, and its president cannot be found. 744,000 Bitcoins, in excess of $390 million, or about 6% of Bitcoins in circulation are missing. Hackers appear to have stolen the money over a period of months. Financial regulators seem reluctant to step in. In fact, one of the main selling points of Bitcoin has always been that it was beyond regulation. Does this signal the end of Bitcoin?
If that were to happen, I personally would not be impacted. A rumoured 90% of all Bitcoin transactions are used for money laundering and purchasing of illegal drugs on the now closed Silk Road web site.
It seems that an unregulated crypto-currency that is developed by mostly anonymous hackers, can also be compromised by anonymous hackers.
If you are involved with money laundering or other illegal activities, my advice is to jump on the start of the next electronic currency, and then get out as the price is driven up by the suckers to follow.
If you are involved with normal law-abiding transactions, my recommendation is stick with existing (PayPal) or evolving (NFC – Near Field Communication) methods and standards of payments. Maybe the tax department can track your trail, but so can the regulators in the event of a scam or heist.
For those of you who are not convinced of the demise of Bitcoin, TruePulse has an extremely important announcement: TruePulse will be launching a digital currency, the TP. Initially, TP will be sold for US$1 million, and restricted to only 250,000 units. As we anticipate the value of the currency to rise before the exchange opens in a few months, you should buy yours now. To provide a unique level of financial assurance to our users, TPs are backed by tangible assets: at any time you can exchange each TP for any Fujitsu FlashWave or Ciena CoreStream board in-stock in our inventory!