Reference no: EM133045936

We are now aware that bitcoin is a digital currency where transactions can be done without any 'central bank'. Transactions are increasingly widespread. e-Businesses appear to accept bitcoins as well as companies and private individuals. In fact it is now also accepted in a few countries. Given that Bitcoin is a digital currency, it is well understood that security could be a key issue. In fact, the security aspect was so serious that in 2013, a company Inputs.io lost over a million dollars worth of bitcoins and many others also went through a similar experience.

Many national banks are concerned about bitcoins as well. They believe that it can be a threat to their control of 'money' and they clearly do not like that! However, in recent times, bitcoins appear to have had more traction and it looks like it may get better.

In your thinking, do you believe that bitcoins are going to make a lot more headway and get accepted at a mass level given that bitcoins are much more than merely printing currency in the press. Would you consider bitcoin as 'money' and to what extent do you believe they qualify as 'money' in the context of 'a medium of exchange and store of wealth' and also 'divisible' much like any other currency? What are the barriers, if any for bitcoin to take hold on the world stage?