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Bitcoin: A safe investment?
How to trade Bitcoin was discussed at a meeting attended by politicians and business leaders in Copenhagen today. The conference was part of "Social Media Week" in the Danish Capital, and Saxo TV was there to interview two of the key speakers.
Kicking off the debate was Michael Gronager, COO, Payward. He argues that "Bitcoin is money with wings". He explains: "Today on the internet we are very used to using credit cards for payments, but we don’t have a cash instrument. As a result, there's a huge market that’s building up and there’s not really any competition today."
He adds: “I think Bitcoin will double ten-folds this year but where it will land it the future is pretty hard to predict.”
But on the other hand, Karen Melchior, a candidate at the European Parliament, isn't convinced: “I wouldn’t put my pension in Bitcoin. It’s not seen as a financial service or a financial currency by for example the European Banking Association.
She adds: "It’s also quiet risky; you don’t have the consumer protections elements that you have both with currencies and with online products, you can’t get your money back if you change your mind."
Bitcoin had something of a dream ride last year; it rose by 8000 percent and traded at one point as high as USD 1200. But over the past few weeks hackers have stolen Bitcoin on various exchange platforms - notably Silk Road 2 - which has given investors cold feet.
This means that Bitcoin is currently trading at near USD 250 on MtGox, which used to be the largest platform for trading Bitcoin, although it's trading near USD 600 on other exchanges.
But speaking of this drop, Michael says it's more media hype than anything: “The actual hack we saw was not really a major concern. It has been known for most of the developer community for at least one year and a half”.
In fact, he adds that now is a time for investors to buy. “I say that it’s a good time to buy exactly now, instead of waiting to see whether it comes back or not. It will, it’s pretty certain.”
02:34 minutes
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