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Many people have heard about Bitcoin operating in the shadowy corners of the Internet. Bitcoin is an electronic currency. The value of a single Bitcoin began as only a few cents. Over the years, this price surged to thousands of dollars, and the value of a single Bitcoin has bounced around ever since. It’s important to note that the value of the currency is not backed by any government or corporation. The value of a Bitcoin is only determined by what another person is willing to pay for it. This makes investing in Bitcoins both a risky and exciting venture.
However, the days of Bitcoin being admired from the sidelines of investors may be ending. This is because the Depository Trust and Clearing Corporation will adopt key parts of Bitcoin’s technology. This New York corporation has the responsibility to record nearly every stock and bond trade in America. Naturally, this is a difficult task. Executives at the corporation now believe Bitcoin may be able to help out.
It should be stated that the Depository Trust and Clearing Corporation will not be actually using or investing in Bitcoin. Rather, the corporation will be adopting technology inspired by Bitcoin to keep track of trades more effectively. Bitcoin is appealing to investors because the electronic currency can not be traced. Instead of a central location storing all of the data on Bitcoins in the world, each Bitcoin carries a code that is modified by a network of computers around the world each time it is traded. Executives at the Depository Trust and Clearing Corporation hope a slightly modified version of this tracking technology can be used to track stock and bond trades.
What do you think of this news? Do you think it will increase the effectiveness of stock and bond trades? Let us know!