Business in Latvia: Bitcoin - Fraud? Ponzi scheme?

Business in Latvia blog felt the need to write about this digital currency as more and more information kicks in.

In this Article we will answer on questions such as:

• What is Bitcoin?
• Where can you acquire one?
• What is the posibilities?
• What official institutions says about it? (probably scandalous)

 Read further to get answers.

What is Bitcoin

Official Bitcoin website states:

Bitcoin is a digital currency, a protocol, and a software that enables

1. Instant peer-to-peer transactions
2. Worldwide payments
3. Low or zero processing fees
4. And much more

Bitcoin uses peer-to-peer technology to operate with no central authority; managing transactions and the issuing of bitcoins is carried out collectively by the network. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment systems.

The software is a community-driven, free, open-source project released under the MIT license.

Baltic Legal offers a great possibilities for residency throgh investment in real estate. Residence permit in Latvia, Europe. Click here. Advertise with Bitcoins.

Where can you get a Bitcoin

There is two simple words - buy or mint.

Buying Bitcoins

To get bitcoins in this way first you have to find seller, a good starting point is official website, however you may want to find an online wallet for your Bitcoins to be stored.

Minting Bitcoins

This is a slang for actual computer generated transactions helping Bitcoin network to work and in the same moment adding a little bit more of a Bitcoins to network. This is not unlimited and is predicted to stop at 2040 year when there will be 21 million Bitcoins and no more. To mint Bitcoins use Google search and if you can not find how to do it then it is probably not for you.

Possibilities of using Bitcoin

Possibilities when using Bitcoin are endless, theoretically. Practically in present days it is being used as high risk investment with great return, however there has been reported major losses by some investors. In USA it is possible to buy coffee and pizza for Bitcoins.

Warning! It is speculated that many criminals use Bitcoins. Be aware.

Official institution commentary

A report by the European Central Bank found that bitcoin use shares some characteristics with Ponzi schemes, but also has characteristics which are distinct from the common aspects of Ponzi schemes as defined by the U.S. Securities and Exchange Commission.

Although ECB prints Euro based on debt what Bitcoin does not. In this case it makes it conflict of interest for ECB to comment because money is based on people willingness to accept it and if Bitcoin will gain major acceptance the Euro (or USD or any other currency) could fall.

Bitcoins have been described as lacking intrinsic value as an investment because their value depends only on the willingness of users to accept it. In addition, a study indicated that 45 percent of Bitcoin exchanges end up closing with many customers losing their money.

The part which says willingness of users to accept it is true to EVERY other currency around the world. So Bitcoin is not worthless more than dollar or euro.