In a move that means a lot to both eToro and Bitcoin, it was announced last week that eToro will now allow users to begin trading the digital-only currency. The digital coin that is getting so much publicity is now available to be invested in through eToro Open Book. Bitcoin is being listed by eToro as a stock rather than as a currency, which speaks to the risks associated with the digital-only currency. Importantly though, eToro listing Bitcoin makes it far more accessible to amateur traders and investors.
eToro CEO Yonia Assia said, “Both eToro and Bitcoin were born out of the social revolution. It’s therefore very apt for us to take the lead in making Bitcoin, essentially the world’s first crowdsourced currency, available to the masses.” eToro will execute Bitcoin orders four times each day. Analysts say they will be watching to see what this new move does to the volatility of Bitcoin, which has been considered one of its major downfalls in recent months.
What is Bitcoin? Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009. Users send payments by broadcasting digitally signed messages to the network. Just as a currency is minted, a Bitcoin is created through a process called “mining.” It is estimated that a little more than 12 million Bitcoins (currently worth about $9 billion USD) are in circulation around the world.
It’s hard to see this as anything other than a big positive for both Bitcoin and eToro. Bitcoin gets a chance to become more widely accepted as a currency and eToro is the first to make investing in a Bitcoin widely available. It will be interesting to see if other brokers, like iForex, start to support trading of the currency XBT.
For more information on what Bitcoin is click here.
For detailed information about eToro’s offering of Bitcoin click here.