Because of the recent unpredictable demand of Bitcoins, its exchange rate started to fluctuate wildly. Some binary options brokers realizing that the wild fluctuating value of Bitcoin itself represents an opportunity for them and the traders are now offering Bitcoins as a traded asset. Currently, only a handful of brokers are offering Bitcoin to their clients. They include leading binary options brokers like:
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Since the concept of Bitcoin as a crypto currency was introduced into the internet community in 2008, it has started to gain acceptance within the ecommerce community. However, it truly made its mark as an alternative safe haven currency during the Cyprus banking crisis early this year. This was when the exchange rate of Bitcoin skyrocketed to more than $200 per Bitcoin. Since the beginning of the credit crunch in 2008, many investors have begun to lose confidence in the integrity of traditional financial instruments like bonds and fiat currencies as a store of value. Hence, they turned to precious metals and unorthodox alternatives like Bitcoin.
Uses of Bitcoins
Because the supply of Bitcoin is limited, its value can only appreciate as the demand for it rises. Bitcoin is gaining popularity because the transactional cost of using it as a mode of payment for online transactions is virtually nil. Compared to other forms of online payments like Paypal or eWallets, the processing fee charged by these payment processors can run up to a few percent of the amount transacted. One other factor which helps to make Bitcoin popular is the fact that the user remains totally anonymous making an online transaction very secure.
Formerly another pioneer broker, IG Group, also offered Bitcoin as one of their traded asset. However in recent months, this broker has withdrawn this asset as one of their trading portfolio. Despite the withdrawal by IG Group, it is interesting to note that even Forex brokers are beginning to join the bandwagon.