Before looking at how Bitcoin is doing in Malaysia, it is important that you first understand what Bitcoin is.
What is Bitcoin?
Bitcoin is a fairly new payment system invented and published by Satoshi Nakamoto in 2008 and was released as an open-source, peer-to-peer system. Bitcoin is so unique because of how it works as users transact directly without requiring the services of a middle-man or intermediary. All transactions are verified by a network node and are recorded in a publicly distributed ledger known as a block chain.
Bitcoin requires no central repository or administrator. As such, it is categorized as a decentralized form of virtual currency. Basically, users offer their computing skills to verify and record payments in the public ledger and are rewarded with newly created Bitcoins and through transaction fees. This is known as mining.
The beauty of the currency – bitcoin is that it has exceptionally low transaction fees; meaning that users can save more trading with it than the traditional monetary system. And while it is not fully legalized, the use of Bitcoin is fast taking root in the commerce world and is fast being embraced as a reliable form of trade.
Global Penetration and Legality
Since 2009, Bitcoin has slowly been penetrating the global market with many individuals in many nations taking it up as a reliable form of money transfer and trading. Its penetration and ever spreading use shows how effective the monetary system is and shows the potential it has to become a trusted monetary form in the near future; considering that it has been causing ripples in the financial world like in the instance the price of a single Bitcoin soared above the price of a troy ounce of gold.
Bitcoin’s legal status substantially varies from country to country and is yet to be fully defined. Some countries explicitly allow its use and trade while other countries have banned it or severely restrict its use. All in all, the Bitcoin system is proving to be here to stay despite the many regulations and bans that seem to be setup against it.
Bitcoin In Malaysia
The Bitcoin is fast taking root in Malaysia with so many starting to realize its value. Bitcoin’s influence is so heavy that in 2013 one of Malaysia’s major banks met with local Bitcoin advocates to learn more about the monetary system. Whilst this significant move bore no fruits, the fact that they were interested in what it is all about shows how influential the system is.
Bitcoin usage in Malaysia is not regulated by the Central bank. And while users are advised against using the system considering the risks associated, more and more people in the nation are taking up the use and trade of the Bitcoin.
Since its entrance into the Malaysian market, the use of the Bitcoin has significantly grown with several individuals have gone ahead to start local Bitcoin trading companies that have a global outreach. These include companies like BitX Malaysia, coinbox.biz and a couple more.
As Bitcoin trading and usage is rather restricted in the nation, getting to buy and use Bitcoins can be rather complicated but is not that hard. The good thing is that there is an approach that users can use to trade with this virtual coin. As Bitcoin is yet to be traded in Malaysian Ringgit, this often presents a limitation.
Users can still get to trade by simply converting their currency to the accepted currencies, which include the Singapore Dollar, the Hong Kong Dollar or the U.S Dollar. Once converted, they can transfer the money to any of the above Bitcoin trading companies to start buying Bitcoins.
Now, you may be wondering what you will do with Bitcoins once you have purchased them, right? You could opt to buy or pay for stuff using the currency and the good thing is that there are a handful of companies and businesses in Malaysia that accept Bitcoin as a form of payment. On the other hand, you could opt to become a Bitcoin seller or trader and sell your virtual coins for cash.