While the Investors trying to earn money through the global bitcoin jackpot and running after this quasi currency itself, instead they should follow Li Ka-shing lead who bought the firms providing the services that bitcoin traders use. Richest man in Asia, Li Ka-shing has invested in BitPay, using his venture capital company, Horizons Ventures. A spokeswoman for Horizons Ventures denied to comment on the details of the investment.
BitPay confirmed the investment of Horizons Ventures and said that they are fortunate to have the benefit of the company. BitPay was founded in May 2011. It handles transactions for 14,000 companies across 200 countries with 25 per cent in Europe and 25 per cent in the rest of the world.
Bitcoin first appeared in 2009 as a method of trading money electronically at a cheap rate. Piping money through third parties, such as banks or card payment processors are not needed in this service. At present there are more than 11 million bitcoins in circulation, free of any kind regulation from Central Bank. They can be bought and sold on online and also can be “Mined” using a high performance computer.
According to Greenwood, the bitcoin was failure as a reliable global currency as it failed to fulfil three basic requirements: be an operative mode of trading; be a long-term store of value; or be a universal unit of account.
Bitcoin enabled individuals to get around Beijing’s controls on the movement of capital across its national borders, which made the virtual currency very popular. It is currently limited to a maximum of US$50,000 equivalent without any regulation.
Greenwood said that this was the reason that got the price of the Bitcoin market to skyrocket, and probably made China authority to ban Bitcoin trading in national currency.
Earlier this month, the mainland’s central bank inhibited financial institutions to provide services for virtual currencies through third-party payment platforms to stop providing clearing services to bitcoin, litecoin and other crypto-currencies before the end of January.
The bitcoin price exceeded US$1,242 (HK$9,630) per coin on the Japan-based Mt Gox exchange, at the end of November. It fell to HK$4,187 after the probation of Beijing. Many financial advisor predicted this outcome as the Bitcoin was receiving no help at all from the national currency.