What is behind Bitcoin’s surge in value? – Inside Story

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The digital currency Bitcoin has moved from the fringes to more of the mainstream in the past few weeks, mostly because its value has risen at such an extraordinary rate. And just like a surging stock, it’s left a lot of people wishing they’d either got in earlier, or wondering how they can jump on board now.

But as ever, there are questions about how safe it is, how to regulate something which by its very nature is decentralised, and if it is just another bubble waiting to burst.

So, what is behind the sudden rise in value of Bitcoin?

Presenter: Kamahl Santamaria

Guests:

Garrett Hileman – Economic Historian at the University of Cambridge and London School of Economics.

David Vaile – Co-convenor of the Cyberspace Law and Policy Centre at the University of New South Wales.

Joerg Platzer – Owner of Room 77, a restaurant and bar that first accepted Bitcoin in 2011.

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40 COMMENTS

  1. world is changing.. world is growing fast and bigger
    i think we all accept the changing world.. technology growing..country changing and peaple are changing.. everything is changing we cant pull back we cant stop it

  2. People will want to know how it technically works before using it? Seriously? As if people knew how the fing banking system works. No, you only need to have early adopters, and from there, if it works, it will reach the rest.

  3. Would it not be better to buy a gold bar and keep it under my pillow? No matter the value I have a 101 uses for it. With bitcoin I feel i'm giving someone my money to use while i'm just holding a coin as an assurance. If the bitcoin is like shares in a company it makes sense BUT i need to be fully furnished on how it's operating, I need a paper trail. Now if you say it's paperless and anonymous, then I have just put a belt around a tree expecting to retrieve my pot-o-gold later

  4. Part of the system that will eventually kill Bitcoin currency is its finite amount that will peak at 21 million encrypted code. If 1 Bitcoin reached the hyped value of a $100,000.00 and buying a $1 burger will amount to Bitcoin currency 0.000001, then that deflationary valuation of counting how many negative zeros before paying will be the no-brainer. The consuming public will scratch their head first before completing a transaction. If this kind of second thoughts exists in the market, then the currency will eventually lose its appeal, because the success of an encrypted currency is the ease of its use among the common public…

  5. Yes first you all have to understand when you have a discussion in his general public like this people talking about Bitcoins, what they're really referring to is the entire cryptocurrency family. Now there are cryptocurrency in the market such as IOTA, which solves all the problems that previous cryptocurrency such as Bitcoin head such as transaction fee Network congestion and etc.
    Now let's talk about the usability when you ask a question why people are not using Bitcoin as much as they're using cash it is completely foolish and dumb, because you are comparing a technology which is about 5 to 6 years old with a form of payments which is ever more than a thousand years old. And I went to respond to that folk who said email is not as important as Bitcoin because you aren't dealing with $$. Let me tell you this, get a an email from Donald Trump, I'll give you more than what Bitcoin worth right now.

  6. Since blockchain can't be hacked meaning store of value is safe from any gov't control to seize, or increase to use for gov't purposes not told to us makes Bitcoin destined for real life success when inflation reoccures like in 2008.

  7. would you say the british pound or the american dollar are perfect for illicit payments. Would You? Since both are and have been for many many years now. what you fail to grasp is the fact that the central bank concept is flawed and promotes usury and global wars and striff

  8. Bitcoin "perfect for illicit sales" should be changed to worst currency for illicit sales. When will media stop playing ignorant that Bitcoin is public ledger technology? I like the piece mostly but I can think of many currencies better for illicit sales, both crypto and traditional.

  9. This sounds good, thanks to new technology. But I don't see any bubble if it's virtual in the first place. People have been using coins for ages out of fear of the king. But now they are using Bitcoin for better security. This has gained currency mainly because of it's growing acceptance monetary transactions. And the traditional institutions representing the king, fear this Bitcoin phenomenon.

  10. The most expensive part of Bitcoin is tranfer/send fee. Sometimes can be up to 100% of the bitcoin transfer itself. Always exchange to cheaper coins before transfer, usually I use Doge coins. Btc kept as a commodity only, use when really in need.

  11. I've been following Bitcoin for years now and I can tell you it is a horrible idea with an even more sleazy group of people around it. This is the 4th massive bubble this thing has gone through, each one has resulting in a >90% collapse. No one in their right mind should touch it.

  12. Most crypto currencies have very low, near free transaction fees. The problem with Bitcoin is that the network is currently overloaded due to the design/configuration of Bitcoin… the software. The network is very capable, but there needs to be changes to Bitcoin the software to make transactions cheaper. Right now, transactions go into a mempool and back up…. and highest fees get processed first. This is something that will be fixed.

  13. “People want to know how it works because it has to do with their money.” How does your bank account app work? How does an ATM work? What happens when you give your FIAT to the bank teller?

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