Skip to comments.Zynga Helps Build Bitcoin Buzz But Donít Get Carried Away Ė Yet.
Posted on 01/07/2014 6:35:05 AM PST by Errant
After taking a heavy blow in December when the Chinese government effectively blocked its citizens from buying bitcoin with yuan, the price of the digital currency has started out 2014 on a fresh push upward.
For that, bitcoin owners can partly thank online gaming company, ZyngaZNGA +1.73%, whose quiet announcement over the weekend that it is testing a system to allow players of certain online games to purchase items with bitcoin was portrayed as a vote of confidence in the digital currency. Coming after online retailer Overstock.com last month outlined plans to allow customers to transact in bitcoin later this year, the Zynga development adds another small piece to a payment network that needs to grow if the virtual currency is to become an accepted unit of exchange and a store of value.
But while theres no denying the PR benefits to bitcoin from brand-name merchants getting involved, its important to appreciate the limits to what they are doing. The fact is that virtually all businesses that accept bitcoin are severely limiting their exposure to the currencys volatile valuations. (Thanks in part to the Zynga news, that volatility has been on display these past few days: Bitcoin was last quoted at $952.86, according to an aggregated bitcoin price index provided by Coindesk, but was as high as $1,023.17 earlier Monday and as low as $829.85 at its close on Friday.)
That merchants are seeking to protect themselves from this volatility doesnt mean gains arent made in terms of network effects every time a retailer signs up to increase the shopping options for bitcoin owners. But their understandable caution is also a reminder of how far bitcoin needs to go to earn true currency status.
(Excerpt) Read more at blogs.wsj.com ...
please add my name..
I have been watching the live ticker on this site;
It is a day trader wet dream, 200+ swings, which is what has my interest, not that I live that life, just curious..
I can’t bring myself to believe in this as anything more that another bubble fad that will make millions in the musical chairs scenario, waiting for the music to stop..
Case in point:
"Is Bitcoin a threat?
Digital cryptocurrencies like Bitcoin went mainstream in 2013, with the value of a single bitcoin rising from $13 to over $1,000 at its high. Much of the hoopla surrounding Bitcoin is the idea that it could be used to transfer money around the world with significantly less friction than traditional means. This would be very bad news for Western Union.
But the promise of Bitcoin is quite a bit overdone. There are currently very few businesses that accept Bitcoin as payment, meaning the digital coins would need to be converted into the local currency to be of any use at all. While the act of transferring bitcoins can't really be regulated, the act of converting into another currency can be. Last month, the cental bank of China did exactly that, banning financial institutions from handling Bitcoin transactions. Other countries, including the United States, could eventually take similar steps."
Of course, I disagree with the author. I think cryptocurrency technology is such an improvement over the old ways of moving money, that any dinosaurs who don't climb onboard in some way will become extinct.
The absolutely BESTEST way to purchase the Emperor’s New Clothes!
The Rise of Bitcoin.
Bitcoin Protocol Infrastructure.