Cryptocurrencies are becoming a popular form of currency, especially with young investors, which has led some businesses like Tesla, Inc., and others to accept payments in crypto as an alternative to cash or credit.
Currently, no local businesses accept Bitcoin, but a new Bitcoin ATM has been installed at Hutch’s Convenience Stores which indicates this new fringe currency is making its way into rural America.
Unlike credit card networks like Visa and payment processors like Paypal, Bitcoin is not owned by an individual or company. Anyone with an Internet connection can participate. Bitcoin was designed to be used on the Internet and doesn’t depend on banks or private companies to process transactions, according to Coinbase which is a website and app to purchase and sell cryptocurrencies, also known as an exchange.
Bitcoin was the first cryptocurrency introduced and as of right now remains at the top of the charts for price per coin. The price per Bitcoin as of press time Friday was $59,525 which is close to the all-time high of about $60,000. When purchasing Bitcoin, individuals do not have to buy a whole Bitcoin, any individual can purchase a fraction of a Bitcoin for whatever price they prefer, according to Coinbase.
The creator of Bitcoin remains anonymous. Bitcoin was established with two concepts which consist of a private key and block chain ledger. The private key is a string of randomized numbers and letters which unlock a virtual vault containing individuals’ purchases. Each private key is tracked on the virtual ledger called the block chain, According to Coinbase.
Although Bitcoin seems unlimited, there is a finite amount which is called the market cap. Bitcoin as of press time Friday had a market cap of about $1.1 trillion. The market cap is based off of the price of a Bitcoin at the time and how much total Bitcoin is available. According to Coinbase there only will ever be 21 million Bitcoin in circulation.
Southwestern Oklahoma State University Computer Science Instructor Hayden Harrington said he believes investing in Bitcoin is dangerous and risky because it is not backed by insurance and if individuals are to lose their Bitcoin due to hackers, it’s gone without anything being paid back to that individual.
SBS Cyber Security Vice President Jeff Stann said he believes cryptocurrency is a great investment, but not a good payment method.
13itcoin uses a block chain process and there is no proof of ownership. If I want to use Bitcoin to purchase anything it has to be validated, but it’s only validated by the block chain which isn’t reliable. A bank validates purchases for a debit card through various validations including time and place of the transaction,” Stann said.
Stann said he believes cryptocurrency is a good investment because there is a lot to gain.
“Cryptocurrency is a lot like the stock market when it comes to investing. I think cryptocurrency has a higher risk, but the reward has possibilities of being much more. A big difference between the stock market and cryptocurrency is cryptocurrency is unpredictable. I have no explanation of why Bitcoin numbers are so high and I have no prediction of what it will do from this point forward,” Stann said.
Hutch’s in Weatherford recently installed a Bitcoin ATM which could entice more individuals to invest in Bitcoin.
Harrington said he is a little weary about Bitcoin ATMs because they offer new opportunities for criminal payment transactions.
‘There is no way to trace money which goes in and out of a Bitcoin ATM. This gives criminals opportunities to deal money without any record of what took place,” Harrington said.
Harrington also said the ATMs offer more opportunities to students and individuals who invest in Bitcoin.
Stann said since Tesla has started accepting Bitcoin as payment he could see other big companies start accepting it as well.
“I think other companies will feed off of this and start accepting Bitcoin as another payment method. This will be good for investors who have Bitcoin right now,” Stann said.
Along with Bitcoin several other cryptocurrencies are available on websites and apps such as Coinbase. Bitcoin also has its own website for purchasing.