Investors believe their new currency will shine

  • Nation
  • Sunday, 30 Mar 2014

PETALING JAYA: Is Bitcoin the new gold? Its investors think so.

In November last year, Forbes reported that while gold shares lost close to 25% of its value, Bitcoins had tripled in value despite the latter’s “erratic pattern”.

Bitcoin investors have seen its value grow from US$30 (RM98) to as high as US$1,000 (RM3,291) each but they have also seen it fluctuate – as all currencies do.

According to Coinbase, a US-based company that’s building services around the digital currency, Bitcoins are currently trading at US$559 (RM1,839).

However, prices were expected to rise even higher, predicted Bitcoin Malaysia founder Colbert Low.

He claims that the value could soar up to US$10,000 (RM32,595) “in the coming few months”, in a posting on on Jan 5 when the price was US$919 (RM3,020).

According to the Bitcoin services and consultancy website, there are over 250 people in Bitcoin Malaysia’s chat groups “making over 100% return on investment” with digital coins, trading advice and news.

When contacted, Low described Bitcoin as a “good payment system”.

“All transactions are permanently recorded in the Bitcoin network through files called blocks.

“Even billionaire Richard Branson’s commercial space startup Virgin Galactic recognises Bitcoin and accepts it as payment,” Low claimed.

Low also runs, a company providing a Bitcoin escrow service that “protects both buyers and sellers”.

BTC-Asia, on its website, guarantees to cover the first RM100, or the total value of Bitcoins in escrow (if less than RM100).

It covers against losses arising from theft, hacking and unauthorised access from its servers, lost or misplaced Bitcoins by its system or staff and any loss of Bitcoins arising from its negligence but is not responsible for “user actions beyond our control”.

Nook, a shared working space in Bangsar, started accepting Bitcoins since November.

Its owner Daniel Yap said while Bank Negara did not recognise Bitcoins as a currency, the Central Bank had not made it illegal to own and accept the virtual currency.

“So until such a time, we will continue to accept Bitcoins.

“Think of it as good old fashion barter. If it isn’t illegal, why shouldn’t we encourage these exchanges?” founder Arsyan Ismail started accepting Bitcoins three months ago on its online marketplace as “an additional payment system” to make it more convenient for shoppers.

Admitting that not many are paying with Bitcoins yet, Arsyan believes its popularity will grow.

He also runs, a Bitcoin exchange.

“I have full confidence in Bitcoins because I know the technology behind it.”

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Nation

Floods: 60 evacuated in Taiping
Floods: 114 victims have yet to go home in Batu Pahat
Floods: 179 victims evacuated to four PPS in Larut Matang, Selama
Perikatan MPs to Anwar: Explain why there was no Msia-Saudi meeting of PMs
Transport operators want improvements
Baking at a frenzied pace
Only accredited Muslim preachers can hold talks
Senior citizen being probed for obstructing dog catchers
Review of destitute law ready in September
Enforcement officers nabbed for human trafficking

Others Also Read