Filed Under:  U.S. & World

Improved Exchange May Pave the Way for Increased Use of Bitcoin

Contributed by on January 23, 2015 at 12:06 pm

BitcoinsBitcoin may be making the first moves away from a purely speculative commodity and into mainstream usage. Recently, two brothers, Cameron and Tyler Winklevoss, have announced their intention to finance the first major and legitimate bitcoin exchange. This type of development is seen as critical to bitcoin’s long term success, due to the fact that infrastructure for trading and using the virtual currency has been almost nonexistent up to now. The few bitcoin exchanges that have existed in the past have tended to come to bad ends, largely due to legal difficulties and frequent hacking attempts.

The new exchange proposed by the Winklevoss brothers is meant to be a secure and reliable platform on which bitcoin may be traded for other global currencies. In this regard, it will be something like a foreign exchange market trading platform, but with bitcoin as the basis for all trades. New security protocols similar to these employed by major online trading brokerages will be employed to avoid the hacking problems that other bitcoin exchanges have encountered.

This will also be the first major bitcoin exchange based in the United States. Up to now, all of the exchanges have been operated from overseas, which has kept bitcoin as a largely unusable currency in the United States. The creation of a fully regulated and normalized exchange may well be the first step toward bitcoin becoming a fully fledged currency that can be regularly traded for goods and services.