As cryptocurrency is on the rise, so is its popularity on a grander scale. Where it was first a novelty for early adopters and investors, the use and the way people can use them bring to light the advantages. For example, Bitcoin, since its arrival more than 10 years ago, went in value from just a few cents to the recent all-time high of 35,000 EURO.
And now a new trend is emerging in the business realm, where companies transfer their capital from their traditional bank account into cryptocurrency. An example is Twitter CEO Jack Dorsey, who shared how and why (his own) digital payments company Square bought 4,700 Bitcoins worth of $50 million. According to Constantin Rotariu (founder of Bitcoin Romania), „the reason for this migration is the growth in the capital they foresee in the long term. Basically, they are reasoning that a fixed amount of money in a traditional bank account gives the security that, when untouched, a few years later this amount remains on the same level. I say the same level, as the cost, combined with the little to no interest they receive, makes it so that the purchasing power of that money is of lesser value than at the initial deposit. The value of the money is kind of melting away. But by putting it in the «right» cryptocurrency, that amount is bound to be growing, leaving you a profit. So, they un-bank themselves.”
NRCC: This un-banking yourself sounds interesting. But is that something which only companies should do? Or individuals should/can also reconsider where to put their money? And where is the security that this upgoing trend remains?
Constantin Rotariu: People should do a bit of research. Bitcoin is based on scarcity. There is a limited amount of them in circulation, so the more people using them, the higher the rate will be. Since the introduction of Bitcoin more than 10 years ago, its value went up from just a few cents to recently 35,000 EURO. That information is out there for anybody to find. Companies like PayPal have introduced it as a means of paying, and at the New York Stock Exchange, you can find companies (and their performances) who migrated from Bank to Bitcoin. These companies have doubled in value overnight. So, if you ask me if only companies should apply the `un-bank yourself` concept, then my answer would be no. It applies to everyone.
NRCC: What else can people see from the once in mystery shrouded Bitcoin?
C.R.: Bitcoin has been around for a while. And we at Bitcoin Romania are making efforts to stimulate the use of the coin and to promote the ways of dealing with it. For example, we have now over 30 Bitcoin ATM’s placed in Romania, connecting the online world and offline world. These Bitcoin ATM`s handle Bitcoin and other cryptocurrencies. You can buy and sell on the spot cryptocurrency, using cash money. In that respect: if you have a bitcoin account, you can just use cash money to increase (buying) your bitcoin amounts. And if you need money, you can just sell through the machine and take cash from it directly. We believe that the visibility of the machines contributes to the demystification of Bitcoin.
NRCC: What should we take from the news reports of people that lost their Bitcoins, or that cannot access them anymore, etc.? Should that be a worry?
C.R.: No. At the beginning of Bitcoin, there were some cowboy traders that went for fast money. They did not invest in infrastructure, nor safety, and thus their clients were vulnerable to, for example, hacker attacks (read: lose your bitcoin). However, Bitcoin Romania offers its clients the possibility to place their bitcoin in highly secured vaults, where no hacker can access them. It`s an alternative to the traditional storing of the bitcoin on your PC or in a digital wallet. Your PC can be hacked, your digital wallet can be infiltrated.