Prior to examining Bitcoin’s current status in Malaysia, it pays to get a good understanding of what Bitcoin truly is.
Facts About Bitcoin
In essence, Bitcoin is a new type of payment system developed in 2008 by Satoshi Nakamoto. Bitcoin was launched as a peer-to-peer, open-source system. Part of Bitcoin’s novelty is in the way it operates and the way in which users are able to transact on a direct basis instead of using middlemen. Each transaction involving Bitcoin is verified via network node and documented publicly in a block chain ledger.
There is no system administrator or centralized repository needed for Bitcoin. Thus, it is defined as being a decentralized currency. Users employ their computer abilities to record and provide verification for payments in the publicly available ledger. They are in turn compensated with new Bitcoins and transaction fee payments. This is what is referred to as mining.
Many love Bitcoin because it involves amazingly low transactions costs. Those using the system have the freedom to save more money by using Bitcoin for transactions than traditional currency. Though Bitcoin is not legalized everywhere, it is gaining popularity worldwide and is achieving credibility as a reliable payment system.
Worldwide Reach And Legal Considerations
Starting in 2009, the payment system known as Bitcoin has been expanding its global reach, as more and more individuals begin to use it as a routine method of making transactions. Its growing popularity demonstrates the system’s effectiveness and illustrates its real potential for becoming a valued currency going forward. Bitcoin’s splash in the financial realm has been so significant that at one time, the price of one Bitcoin surpassed that of one Troy ounce of gold.
The legal acceptance and status of Bitcoin varies among locality, and is not at all universal in nature. There are certain countries that have specifically approved the use of Bitcoin, whereas others have explicitly disallowed it or restricted it substantially. Overall, however, Bitcoin is a payment system that seems to have real longevity, even in the face of some serious hurdles that have been placed in its way.
Bitcoin Use In Malaysia
The Bitcoin system is quickly gaining a foothold in Malaysia as countless individuals start to recognize its real value. The influence of Bitcoin is so notable that 2013 saw a meeting between Malaysian Bitcoin supporters and one of the country’s major banking institutions. Though nothing concrete came of the summit, the mere fact of the meeting highlights the interest traditional banking players have in Bitcoin and bodes well for the future.
In Malaysia, the use of the Bitcoin system is not subject to Central Bank regulation. Though warnings are regularly issued about the possible risks of using the system, greater numbers of Malaysians are beginning to see for themselves how efficient Bitcoin can be.
Ever since making its initial appearance in Malaysian markets, Bitcoin has made real gains, with localized Bitcoin trading groups having formed. Among the entities with true global influence include localbitcoins.com, BitX Malaysia, Mtgox.com and even more.
Because the Bitcoin system does not operate unfettered in Malaysia, purchasing and using Bitcoins in the country can be challenging, but not impossible. Fortunately, there are tried and true methods available to make trading with Bitcoin easier. But, Bitcoin is not yet available to be traded in Ringgit, making things somewhat harder.
The good news is that interested parties can trade by changing currency to one of several acceptable currency types, including U.S. Dollars, Singapore Dollars and Hong Kong Dollars. After this occurs, it is possible to transfer funds to whichever Bitcoin company is desired in order to begin purchasing Bitcoins.
Perhaps you are curious about what you can do with your Bitcoins after buying them. You can purchase items or even pay for services with them, as there are growing numbers of Malaysian firms willing to accept the Bitcoin system. Or, you may decide to start selling Bitcoins yourself, converting your own coins into whatever type of currency you prefer. The choice of how to make the Bitcoin system work best really is yours and yours alone. The options are vast and expanding by the day.