“Bitcoin is a digital/virtual currency,” says Fox. “It is not an actual object, but a payment platform.”
When Fox asked those attending the presentation if anyone had ever used virtual currency, only one or two raised their hands.
But Fox had news for them, saying every credit/debit, ATM or internet transaction amounts to virtual currency, which the majority of the population uses without a second thought.
“Bitcoin launched after the financial collapse in 2008 and is the world’s biggest bank, but owns no cash.”
Discussing the history of money, Fox said it originally took the form of barter, person to person, peer to peer.
First, basics such as food and meat were traded for vegetables, flour for salt, etc.
“Then came shells and beads used as money, followed by gold, silver and copper coins.
“They were physical objects, so they were deemed to have tangible value and were traded, much like today.”
Bitcoin is a person to person, decentralised payment system without middlemen such as banks or governments, and with low or hardly any fees.
“It is underpinned by a revolutionary verification system called the blockchain.”
Bitcoin is the first cryptocurrency and has increased in value from US$0.01 (14c) to $6 281 (R90 410) as of November 13.
Over a million merchants worldwide accept bitcoin as payment, and the number is growing fast.
The bitcoin platform offers:
• low fees for sending money;
• low fees for receiving money;
• faster and more efficient transactions;
• zero exchange fees;
• no unauthorised charges;
• no charge-backs;
• no freezing; and
• no unauthorised withdrawals.
