Any currency has its acronym, so it could be easily used in charts, analysis and calculation. Imagine a Forex where pairs would be British Pound/American Dollar =1.4563. Instead, all the currencies are known in the international finance world after their acronyms. Everybody knows what USD or GBP are, so it is normal for the last newcomer on the international financial stage to have its acronym. The most suited for Bitcoin was considered BTC by many bloggers and people that were passionate about this currency even since its beginning.
How was BTC chosen?
Actually, there is not an official story about the acronym of Bitcoin. It was not even initially used by the inventor of Bitcoin. Maybe a blogger found it interesting, deciding to use it in his analysis. However, people use it currently today, and the bitcoin is already recognized as the BTC in the international currency trading world.
Besides the fascination that it provokes to the world, the bitcoin is interesting from another point of view. It is the only one currency that is traded freely on the open market, even if it is not regulated, and even if it does not belong to any country. Sure, Satoshi Nakamoto, the inventor of bitcoin is Japanese, but this does not means that we are talking about another Yen. The bitcoin belongs to the internet, and this is the reason why it can’t even be regulated by the laws of any country.
Is the future safe for the bitcoin?
Everybody thought that the US dollar was the most solid currency in the world since 2008, and that the price of real estates would go over the roof, and the mysterious karma of Capitalism showed us that nothing is safe. This is why we can’t say that the bitcoin will be successful, or if it would be generally accepted everywhere as a payment method. However, there are some signs that make the bitcoin if not accepted, at least interesting for the international markets.
During the crisis in Cyprus, at the beginning of 2013, the economies and deposits of people made in banks of this country were taxed by the government of this country with 40%, without any prior consent of those people, and even without them knowing about this. Cyprus is the financial paradise of Europe, so we are not only talking about Cypriots, but more about the Russian billionaires and other important people in Europe that kept their savings in those banks. Moreover, in order to prevent major money “leaks” from those accounts until the measure was implemented, the average citizens also suffered because of those restrictions.
In the context in which even ATM withdrawals were limited at 150 Euros a day, citizens and companies found the internet as the only viable method to save a part of those economies. Some of those magnates were really irritated about the forced tax, not only because of lost money, but also because those accounts would raise other complicated questions for them. This is why they found the internet as the only way to save that money.
The bitcoin was found as the perfect method, because they are untraceable, totally anonymous and safe. This is how the price of the bitcoins increased from 2-10$ at the beginning of the year, to almost 90$ at 1st April 2013, and to a maximum of 250 on 9 April. However, after this date, the price went down dramatically to 170$. Such huge variations were never met, even during the most severe financial crises. The investors that rushed to buy bitcoins two days before asked themselves what happened, and the BTC was brought in the attention of the entire world.
The bitcoin suffered such variations because it is new, because it is not regulated, and because the internet is more powerful than any government. You can’t apply Forex or Binary Options to the Bitcoin, as Doji’s, support and resistance, or moving averages mean nothing for this spoiled currency. This does not make it good or bad. In the future, when people would understand it better, the BTC will be more stable.
One thing is certain: it will surely suffer many of those chart-twisting periods, driving investors crazy, bringing them from the bottom of hell to the highs of heaven in a few days. The Bitcoin should be seen as an interesting phenomenon, something that should be exploited today, knowing that it will surely produce a lot of buzz in the future.
The most important part of bitcoin remains the producers, not the speculators. For the moment, many people prefer to produce bitcoins with the help of their computers, mining them with the help of their graphical cards. Those can never lose, as any computer that started mining three months ago worth its every penny, even if the price of the BTC would go even lower. Those people have the majority of bitcoins, and the majority of them prefer to keep it, not to use it for speculative reasons. Because of them, we are sure that the future of Bitcoin is bright.