Digital currency is beginning to become a defining feature of a new era in technological integration. Mobile devices are everywhere, more people are beginning to shop online rather than at physical stores, and physical currency is quickly losing its appeal as a symbol. Years ago, a person could flash a roll of cash and attract envious gazes. Now, however, the color of a credit card and a smartphone can say more about a person’s financial status that a pile of physical money. Mobile commerce is to blame for this trend.
Bitcoin is one of the most readily recognizable digital currencies. In the past, this currency was considered nothing more than a passing fancy among only the very tech-savvy and anti-establishment crowd. This is no longer the case. Bitcoin is gaining traction as a “legitimate” currency and is being accepted by large companies throughout the world as a viable payment option. This is because these companies are beginning to adapt to a world that is no longer tethered to physical currency that is inflexible and cumbersome to consumers.
Digital currency isn’t perfect, of course. In the case of Bitcoin, volatility is a major issue that can prove to be financially crippling. Most digital currencies are not heavily regulated, which means that their value can fluctuate wildly with the most modest of influences. This can be a problem for the digital world, as the emergence of a trend could bankrupt someone that has invested their finances into digital currency.
Despite the lack of regulation, every year that passes shows that digital currency can be resilient to trends cropping up throughout the world. In many cases, the value of digital currencies has dropped significantly only to bounce back a short time later. Businesses are seeing that these currencies can be reliable and are beginning to throw their support behind them. In the mobile commerce space, this is becoming especially important, as mobile payments rely entirely on digitized financial information.
Digital currencies do not hold imaginary value. They are like other currencies, only lack a physical representation that denotes their value in a readily understood way. A single Bitcoin has the approximate value of $586.
