What is Bitcoin?
The Reserve Bank of Australia defines Bitcoin as a “digital representation of value that may be accepted by some parties as a means of payment and can be transferred, stored or traded electronically.” The integrity of bitcoin lies in a blockchain – a transparent, distributed ledger that everyone in the network can view in real time and which tracks all transaction history. The Bitcoin network is based on this distributed system where everyone agrees on its value and the protocol evolves by consensus. Unlike fiat currency or standard assets, it is not controlled by a central government, bank or authority, making all transactions direct, public, peer-to-peer acts.
Developed by the pseudonymous Satoshi Nakamoto, the conception of the Blockchain platform provided a decentralised solution to the problems faced by earlier attempts to create digital currencies. By operating on the peer-to-peer Blockchain network, Bitcoin bypasses the issues of double spending and institutional trust.
For more detailed information on Bitcoin, please see our Resources page.
BITCOIN IN SUPER
The Australian Government classifies Bitcoin as an asset, and legislation allows Bitcoin investment in Self-Managed Super Funds (SMSFs). Due to its low correlation across standard asset classes, it instantly diversifies investment portfolios whilst increasing the fund’s standard return.
Bitcoin Trader is partnered with independent SMSF administrator Xpress Super, providing a new and easy avenue for Xpress Super’s clients to migrate away from conventional retail super funds, increasing their control over future retirement income.