Bitcoins in binary options

 

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One of the newest assets to be introduced into the binary option market place recently is the Bitcoin. A Bitcoin for those of you that have not heard of the name before is primarily a type of virtual currency that is decentralized, it has also been called a cryptocurrency as it uses cryptography to control transactions and prevent double spending which is a problem for a digital currency. A Bitcoin being decentralized is not supported by any or managed by any government or central bank. Since its inception in 2009 the price of a Bitcoin has varied dramatically and some say is open to fraud or manipulation in 2013 the price of Bitcoin has been volatile, once in the space of six hours in April 2013 the price dropped from $266 to $76 then back to $160 due to a payment processor experiencing processing difficulties. In November of 2013 the price of a Bitcoin hit a record high of $269.99.

One of the main reasons for the growth in popularity of Bitcoins when carrying out online transactions is that they incur minimal fees in comparison to other well known products such as credit cards or eWallets. Currently a eWallett or credit card payment processors charge sometimes excessive processing commissions where as Bitcoin customers are charged virtually no processing commission, making Bitcoin transactions probably the most cost effective way of transferring money, especially online. Another reason behind the increasing popularity of Bitcoins as an alternative method for carrying out online transaction payments is their innovative security features. When a user carries out an online payment using Bitcoins, each transaction is completed by implementing the usage of both private and public encryption keys. This process ensures that Bitcoin transactions are extremely secure. It is also possible to remain totally anonymous whenever you process payments over the internet using Bitcoins should you wish.

The recent Sovereign debt turmoil in Europe also provided another valuable benefit of Bitcoins, due to their issuance is not handled by any government or central bank, there is no possibility of seizure. One of the primary reason for the surging worth of Bitcoins during recent times was put down to investors in troubled countries like Cyprus where depositors where going to be imposed with a tax levy on deposits over a certain value transferring into Bitcoins as a safeguard for their funds.

The number of binary option brokers that provide trading in Bitcoins is small but is growing as its popularity increases. If you want to read a more detailed report on Bitcoin, the Chicago Federal Reserve have produced a detailed initial look at the digital currency. To read click on link below.

chicago_fed_letter_2013.pdf