The Australian Financial Review’s inaugural Cryptocurrency Summit will put cryptocurrency under scrutiny. In just over a decade, we have seen the evolution of cryptocurrency and blockchain technology as it transformed from a digital medium of exchange to a store of wealth, investment class, and more recently, a critical source of value. It is imperative that those of us in the industry share what we have learned with the wider community here in Australia.


Bitcoin—the original cryptocurrency—was created by the pseudonymous Satoshi Nakamoto as a way of exchanging money between two people without an intermediary. The advantages of this technology are its low costs, transparency, unchangeability, near-instant speed and security. While many around the world use bitcoin for transactions, it has also become a store of value and often referred to as ‘digital gold’. Since its invention, thousands of cryptocurrencies have been born, all underpinned by blockchain technology that serve a wide array of user needs. Many of which have formed this new and exciting asset class.


The power of cryptocurrency has become so much more, as evidenced in recent times during the war in Ukraine—a country that despite its economic hardships, ranked 4th in the world for cryptocurrency adoption. Recently, the Ukrainian government passed a law to create a legal framework for cryptocurrency. They were also on the receiving end of crypto donations totalling more than 70 million USD to fund humanitarian aid and the fight against the Russian invasion. The benefits of cryptocurrency have extended to civilians also; in light of the banks collapsing and the inability for civilians to withdraw money for basic needs, the sending of cryptocurrency by family and friends has proved a lifesaver.


On the other side of the coin is the question about more negative issues. These may include connections to money-laundering and sources of energy consumption. Criminals have used stores of value like the USD or artwork to profit from their crimes for many years. Cryptocurrency is similar except for one stark difference. Unlike the traditional banking system, cryptocurrency exists on a transparent blockchain. This means authorities can track and trace all transactions, forever. Using these analytical tools, Chainalysis found in 2021 that illicit cryptocurrency activity totalled just 0.15% of crypto transactions; this, despite the significant increase in usage.


Bitcoin mining energy consumption is an ongoing issue. When it comes to energy sources, we want our homes, and lifestyles, to be as clean and green as technologically possible. Akin to the introduction of unleaded petrol, the onus of responsibility at that time wasn’t placed on vehicle owners. Rather, it was for the energy sector to address. The cryptocurrency industry joins the voices of others in our community. We recognise that efficient renewable energy use will reduce the impact of carbon emissions while also reducing costs. In fact, we are already seeing powerhouse players taking steps towards making this happen: Exxon Mobil is trialling the use of excess natural gas that would otherwise be burned off from US oil wells to power cryptocurrency-mining operations—a key step as our industry matures and innovates towards bigger and better things.


With an eye to the future, last week Australia hosted Blockchain Week organised by peak industry body Blockchain Australia. Headlining the event were Senator Bragg and Minister Hume, both champions and proponents of cryptocurrency regulation in Australia. Minister Hume compared cryptocurrency to a new virtual frontier, similar to the Victorian Gold Rush of the mid-1800s. In her speech, she stated that our digital economy could add “2.6 percent to GDP and create around 200,000 new jobs by 2030.” The Minister followed up to say that Australia is open for business and leaning into the digital opportunity. This includes crafting a suitable regulatory regime that is risk-based, and technology neutral. Senator Bragg announced the Digital Services Act, a principles-based piece of legislation, regulated by a government minister. The Senator also addressed the complex issues of Decentralised Autonomous Organisations (DAOs) and a review of the Australian tax code to reflect the digital economy. These ambitious targets are essential to future proof our economy for growth.


BTC Markets has held, and continues to hold, consultations at the highest levels with Treasury as our country looks to solidify its place as a key international cryptocurrency hub. One that will allow entrepreneurs to flourish, jobs to grow, and our education sector to expand.


The future of cryptocurrency is no longer coming—it has arrived. We are witness to the Commonwealth Bank providing crypto trading to customers, ANZ creating an Australian Stablecoin, and institutional and retail trading going from strength-to-strength. We are excited to see what the future holds for this rapidly growing sunrise industry.

A Look At Crypto: AFR Cryptocurrency Summit 2022

Bitcoin

Since its launch in 2009, Bitcoin has become a word synonymous with cryptocurrencies. As the first and largest digital currency, Bitcoin has transformed the way we interact online and has paved the way for a future cashless society. Early adopters of Bitcoin were drawn to the decentralised nature of the digital currency, with many eager to move away from the central authority of banks.

But despite the popularity of Bitcoin in the zeitgeist of cryptocurrencies, there is still a wider lack of understanding about where to use Bitcoin. You may have begun researching cryptocurrencies and started to ask yourself ‘what can Bitcoin be used for?’ and “How can I use Bitcoin?”. Once you’ve decided to purchase Bitcoin, you can begin to benefit from the many uses of cryptocurrency and how it can effectively change the way you manage your funds.

Why use BTC (Bitcoin) for your online payments? These days an increasing number of retailers and vendors are adopting cryptocurrencies as an accepted form of payment. If you’re unsure how to use Bitcoin to buy things there’s a very simple and safe process to follow that will revolutionise the way you purchase goods online.

Firstly you’ll need to set up a wallet via a designated marketplace — effectively, this will be your account that keeps track of your Bitcoins in a secure digital location. At 

 you’ll be able to create an account, deposit money to your wallet, purchase Bitcoins and start using Bitcoin to safely spend online. If the merchant you wish to purchase from accepts Bitcoin, all you need to do is copy their Bitcoin address to the designated field in your wallet, include the price and hit send. The transaction should then be securely completed within a matter of seconds.

The number of merchants accepting cryptocurrency is trending upwards, with plenty of retailers and businesses listening to customers requesting more diversity when it comes to payment options.

One of the many perks of Bitcoin is the ability to safely and quickly transfer funds anywhere in the world. Gone are the days of international money transfers chewing up costly fees, being unprotected and taking far too much time to hit the other account. As the Bitcoin founder Satoshi Nakamoto once noted, this form of digital currency is intended to act as a “peer-to-peer digital cash system”, thus alleviating many of the issues users once faced when transferring money to another party.

Traditionally these kinds of remittances will include clunky processes using electronic payment systems, wire transfers or physical mail — but with Bitcoin, you’ll be able to control your finances and transfer with ease without getting caught up in unnecessary fees and time delays. Through your BTC Market account, you’ll be able to spend as much money as you want, anywhere in the world, whenever it suits you. It’s the new flexible, cost-effective and reliable way to get your funds exactly where you want them.

Much like the stock market, there is an emerging trend in the world of crypto to make profits from day trading. So why use Bitcoin to trade? Jumping into the trading exchange of cryptocurrencies is not for the faint-hearted and requires a considerable amount of research and understanding to bolster the bold trades needed to turn a profit. There’s no denying that Bitcoin is highly volatile but if you can take your insights and create an effective trading strategy, you’ll be able to observe the crypto market and act quickly.

 and sell digital assets securely using market orders which will complete the transaction immediately at the best available 

. The use of Bitcoin in day trading is not without its complexities but can pay great dividends when approached with a keen eye for detail.

Whether you’re looking to create a self-managed

 or you’re interested in understanding how you can use Bitcoin to benefit your long-term financial goals, investing with cryptocurrencies could be a great way to finance your future.

At this stage it is widely understood that the number of Bitcoins available will cap at 21 million — so while the market may be volatile, if you purchase now then in a few years the assets may be more valuable as the demand will grow while scarcity increases.

Through your BTC Market account, we will help you manage your portfolio, where you’ll be able to purchase Bitcoin and build depth across 21 markets with ease.

What are the advantages of using Bitcoin?

If you’re still wondering ‘what is the use of bitcoin?’ and how it can benefit not only your day-to-day transactions but your long-term finances, let’s take a look at some of the advantages of using Bitcoin.

One of the driving forces behind Bitcoin’s creation was a real yearning to move away from a centralised system of banking and shift towards an entire network being responsible for the accuracy and validity of the currency — also known as decentralisation. Someone who uses Bitcoin can feel safe knowing all transactions are recorded via a ledger called a Blockchain — this is the main defence against fraud and hacking, which are often the main downfalls of traditional banking. Another issue people take umbrage with when it comes to how banks govern is their collective ability to manipulate the value of a currency. Bitcoin’s algorithm ensures that the value of the supply is tightly controlled within its ecosystem.

Bitcoin allows users the ability to have total control and autonomy over their money, making it an incredibly flexible way to manage funds. For example, if you need to get money to a second party overseas as a matter of emergency, you have the functionality to transfer funds securely within seconds. You can also be assured that the peer-to-peer interactions will be completely transparent via the Bitcoin Blockchain which adds another level of security to your transfers.

What are the disadvantages of using Bitcoin?

With any platform, some pros and cons need to be considered especially when it comes to your finances. So why use Bitcoin if there are downsides? It’s important to understand both the advantages and disadvantages of using Bitcoin before you invest. Once you’ve reviewed the variables you might find the advantages of investing in Bitcoin outweighs the disadvantages.

Given the limited number of Bitcoins available, the demand for stock makes it a volatile currency. For example, you’ll find the value of Bitcoin can increase and decrease quite rapidly throughout the day. For those wanting a safe bet when it comes to their investments this kind of volatility may not necessarily be appealing. Crypto commentators suggest that over time this kind of volatility will ease as the market evens out.

When you look at the impressive uptake of Bitcoin by the public, it’s hard to believe it was only launched in 2009. As with any emerging technology, it’s understandable that there have been some teething issues. Many of these have contributed to why the wider community has been reluctant to adopt Bitcoin. Despite tech and functionality issues constantly being developed and improved, there is still a way to go in changing the public perception of digital security. And whilst plenty of merchants and vendors have set up Bitcoin as accepted forms of payment, there will still be instances where this isn’t available and therefore users will need to select another way to purchase goods. Managing your funds across multiple digital platforms may seem annoying now but hopefully, we are moving towards a future where Bitcoin is widely accepted across the world.

 and learning more about our features, feel free to reach out. You can also learn more by visiting 

Why Use Bitcoin?

The days of cryptocurrency — and Bitcoin especially — as a futuristic and difficult-to-understand leading-edge technology are over. Bitcoin celebrated its 12th birthday in 2021, and the currency has been publicly traded for the vast majority of that time. In other words, plenty of investors are now reaping Bitcoin's benefits.

In fact, the days of Bitcoin as solely a vehicle for speculative investment are over, too. While many investors have earned serious returns from Bitcoin over the years, and the currency continues to be a source of revenue for large numbers of people across the world, this was never the primary intention of BTC's creators.

Instead, Satoshi Nakamoto — the mysterious creator, or group of creators, who gave us Bitcoin — envisaged the currency and the network as an 

. This was designed to be something that would revolutionise payments in the digital era, not simply drive the wealth of those who want to keep hold of the currency.

Happily, for Bitcoin's originators, a shift is taking place. As increasing numbers of payment providers and vendors begin to support the currency, and as more and more individuals opt to use Bitcoin in their transactions, BTC is becoming a genuine alternative payment network. In other words, the reasons to use 

But why use cryptocurrency to make purchases and payments? What are the Bitcoin pros and cons that are influencing the cryptocurrency's usage? Let's take a look in more detail.

Let's start by taking a look at some of the key advantages of blockchain and 

. This will give you some idea of how BTC offers a whole new way to pay for goods, transfer funds and complete transactions in the digital marketplace. These are the 

 that are changing the way we approach payments, wealth and money in the 21st century.

Bitcoin is based upon the original blockchain structure. Whenever a transaction is initiated, randomly selected nodes within the network automatically perform complex calculations in a process known as "mining." Once mining is complete, the transaction data is written into the blockchain and becomes part of the chain's very fabric.

This means there is no manual input beyond the peer-to-peer communication between the sender of the funds and the recipient. The mining process completes the transaction automatically, with no need for third-party supervision or assessment, which translates to a smooth, efficient and reliable experience for 

When you pay for something using Bitcoin or accept Bitcoin as payment, you are kept informed every step of the way. The transaction is initiated via the Bitcoin wallet or via another wallet that supports the currency. You will be able to see immediately when the funds have left the wallet, as well as when they are received.

The wallet interface allows you to check on the status of the payment, see when the block has been mined and keep track of the entire process. All of this data is delivered in real-time, so neither party is ever left in the dark. This is a welcome change from the familiar uncertainty of money leaving a traditional bank account and entering the limbo period of “pending transaction”.

There are no additional fees associated with 

. When we make a payment with a credit or debit card or send money via a bank transfer, it is common to encounter nasty surprises. Perhaps the sender or recipient's bank has applied an additional charge to the transaction, or the payment provider has fees of their own.

This is not the case with Bitcoin. When users make a 

, the full amount is transferred between the two parties with no extra charges for standard transactions.

We've already touched upon digital wallets as one of the key benefits of Bitcoin, but there is more to mention here. The modern world is a digitally focused one, and we expect to be able to use mobile technology and applications to conduct business and other aspects of our daily life.

The digital wallets used in Bitcoin transactions are highly convenient and can be used on the go. Download the wallet to your smartphone and eliminate the need for a physical wallet or cash. As long as you have an internet connection and available funds, you will be able to make a payment.

We have discussed pros up to now, but one of the cons of cryptocurrency used to be a lack of widespread adoption. Bitcoin was once considered unreliable as a payment method because most vendors and payment providers did not support it.

This is no longer the case. There is now a large number of vendors and providers who 

 and a wide range of individuals happy to accept Bitcoin as a form of payment. What's more, this number is increasing all the time, making Bitcoin more and more viable as a payment option.

Data protection and privacy are hot topics these days as public anxiety increases about the ways in which our information is used online. This makes privacy a key cryptocurrency benefit and a great reason to use Bitcoin for transactions.

You do not need to use your real name or any identifiable information when you engage in a transaction. Your personal data is not saved, and you can conduct transactions under a pseudonym. As a result, 

 to those seeking to protect their personal data online.

There are many advantages of blockchain, but perhaps the biggest is the fact that it is immutable. When a new block is mined and added to the chain, the entire blockchain ledger is updated and shared across all network nodes. This means there is a clear consensus regarding the status of a transaction, and no one can question the validity of the payment made.

Payment can only be reversed if the recipient decides to 

 back to the original sender. With no possibility of a transaction being cancelled or queried, product vendors are protected from fraudulent users.

As with any other form of payment, Bitcoin has its own quirks, pros and cons. It’s important to be aware of them both as a spender and an investor alike.

. This can be a problem, particularly when you want to buy something with a specific dollar amount. Let's say you buy something worth $50 — in a week, or even just a few days, you could find that the BTC you parted with is worth far more than $50. Traditional currencies don’t tend to have this issue as a central authority regulates them.

All of that said, if you receive Bitcoin as a payment from someone else, you may find yourself on the winning end of the deal.

It may take a while to complete your transaction, sometimes up to a few hours. You can pay more to have your transaction completed sooner, but this goes against the idea of Bitcoin as a fee-less payment system.

In some cases, it may be difficult to receive a refund on your transaction. Many vendors will not offer dollar refunds for BTC transactions and will instead offer store credit.

Start building wealth and making payments with BTC Markets

 makes it easy for people just like you to buy and sell Bitcoin on the open market. You can also use your digital wallet to complete payments and transactions using this innovative, trailblazing cryptocurrency. Set up your 

 today via our easy-to-use website or reach out to our team to learn more.

Advantages Of Paying With Bitcoin

Reserve Bank of Australia (RBA) statistics highlight the decline. In 2007, almost 75 per cent of payments were made with cash. In 2019, that figure was just 27 per cent. Further RBA data shows exponential growth of cashless payments since 2007.

Australia could become cashless in the future. Central banks govern a nation’s momentary system. Therefore, it is central banks that could innovate to create a comprehensive cashless system.

Stablecoins are an option to explore. They’re cryptocurrencies designed to maintain price stability, by pegging their value to an external reference asset. Reference assets could be fiat currencies like the US Dollar.

Tether is one example of a stablecoin. Valued at AU$21.6 billion, it’s the largest stablecoin by market capitalisation. Its price is pegged to the US Dollar. One Tether must always equal one US Dollar.

Stablecoins are borderless. They have no governing body. However, central banks have an opportunity to innovate to keep pace with the changes in digital finance.

Central bank digital currencies (CBDC) are a potential solution.

Central bank digital currency could be Australia’s monetary future

Ethereum

Decentralised finance, or DeFi, is one of the fastest growing areas in cryptocurrency.

While Bitcoin challenged the idea of electronic currency, DeFi looks to reimagine our broader financial infrastructure.

Investment in DeFi services has flourished in 2020. At the start of the year, DeFi’s total locked-in value was $US662.5 million. Today, that value is $US11.19 billion.

DeFi is an umbrella term for decentralised financial services. The sector develops new platforms for banking, trading, and insurance without intermediaries or paperwork. Therefore, service fees are lower than traditional providers. This is attractive for many people.

In that context, ‘decentralised’ refers to the distributed nature of the network. These networks are made up of many connected computers in numerous locations.

This differs from a centralised network such as those used by banks, which run their services through a single, central computer system.

DeFi’s rise to prominence is thanks to the 

Why Ethereum? Firstly, it is programmable: anyone can create decentralised applications (dApps) that run on the Ethereum blockchain network. Consequently, the vast majority of DeFi projects are Ethereum based.

Secondly, its network is active: Ethereum has one of the largest communities of participating programmers, developers, and users.

Thirdly, its network supports smart contracts: a fundamental part of DeFi.

Cryptocurrency explained: What is decentralised finance?

 was first revealed to the public in a 2008 

. That whitepaper outlined the potential of a digital currency and how transactions could be verified without needing to resort to a central, third-party authority while still retaining user anonymity. That solution was the Blockchain, a central ledger powered by the collective input of computers all over the globe. It was an obvious yet genius solution to a problem that stalled potential cryptocurrency for decades previously. If money only existed as a digital product, how did you exert control over it and avoid fraud?

Other attempts to create a cryptocurrency had failed, either because they relied too heavily on existing banking systems (negating the point of a cryptocurrency) or because they simply didn’t have an effective way of addressing the issue of fraud. Blockchain avoided all of these issues. The whitepaper itself also factored in the steady release of this theoretical currency, theoretically avoiding issues such as supply and inflation in the process. The potential was immediately obvious, and it garnered considerable attention in cryptography circles.

The author of that paper? One Satoshi Nakamoto.

Questions immediately started to follow in the wake of the whitepaper’s publication. “Satoshi Nakamoto'' was an unknown name in the tight-knit cryptography community, and even cursory online searches quickly revealed that it was likely a pseudonym. Nakamoto did nothing to clear up the mystery, refusing to answer any questions about himself and solely commenting on the nature of his technology. A number of people claim to have had contact with him via email, though it was reportedly erratic in nature and did nothing to confirm Satoshi Nakamoto’s identity.

Interest began to spike further in January 2009 when the first real Bitcoins became available to the public. It was proof of Nakamoto’s concept in action; one can presumably speculate that the technology was at least in development, if not completely ready to go before the initial whitepaper was launched. It would ramp up further in 2010, once the first real-world purchases with Bitcoin began to be made. But the Bitcoin creator was not forthcoming in the wake of this new interest from the press and the public. Indeed, he ceased all correspondence in December 2010, simply stating that he had moved on to other things. Nothing has been knowingly heard from him since, with Bitcoin seemingly being left to be steered without his input. Within certain circles, it’s still common for people to query “Where is Satoshi Nakamoto?” within certain circles, though his return looks increasingly unlikely after more than a decade.

Of course, Nakamoto’s disappearance was arguably always going to occur. With the currency released in the wake of a GFC that rivalled the Great Depression in its impact, Bitcoin represented a potential alternative to the government and back-banked currencies which had so recently floundered. Retaining an overseer would have been contrary to the goals outlined in Satoshi Nakamoto’s whitepaper.

Additionally, Nakamoto probably had — or has — several compelling reasons to keep his identity secret. One of cryptocurrency’s initial selling points was anonymity around transactions, so it makes sense that its founder would want to retain some of that ambiguity for themselves. Not to mention that although the question of “How many bitcoins does Satoshi Nakamoto have?” is estimated to be around the 1 million mark — that’s a lot of potential money in 2021, and it’s entirely likely that unwanted attention would soon follow from would-be hackers or other bad actors looking to get a slice of that pie.

Yet none of this has stopped people from coming out of the woodwork to claim that they are Nakamoto. Considerable ink has been spilled by journalists attempting to identify likely candidates. Dorian Nakamoto was the first major name identified by the press, though he denies any association. In contrast, Australian computer scientist (and noted eccentric) Craig Wright also maintains that he is Nakamoto despite considerable evidence to the contrary.

One of the more promising candidates, Hal Finney — who was the recipient of the first Bitcoin transaction from Nakamoto — died in 2014, so it’s entirely possible that Satoshi Nakamoto is dead. But it’s just as likely that he is still enjoying his anonymity quietly and enjoying the fruits of his creation.

For newcomers to the world of cryptocurrency, it’s understandable to ask questions like “Is Satoshi Nakamoto real?” Perhaps not, in the sense of being an individual. The possibility of Nakamoto being a collective rather than an individual has also been floated, and it’s one of the more compelling options. The work poured into both the whitepaper and Satoshi Nakamoto’s Blockchain would suggest the work of multiple parties rather than an individual, though it should be noted that similar concepts had existed in theory before its publication.

One thing that must be admired is Nakamoto’s consistent ability to avoid detection, particularly in a digital environment where all of us are so heavily connected. Even today, the internet becomes abuzz with speculation whenever Nakamoto is believed to have moved coins around from one of his (admittedly still unknown) accounts. It can have real-world implications, including drops in Bitcoin pricing or press speculation about whether an identity reveal is about to occur.

But nonetheless, Nakamoto’s identity is arguably a moot point at this juncture. Whoever he, she or they may be, Bitcoin is a creation that has grown far beyond its initial theoretical origins and grown into a currency and investment that has wowed the world. It’s set the template for countless other cryptocurrencies in its wake and helped introduce new ideas into a stagnant financial system. Perhaps it’s these facets that we should be focusing on, rather than looking to identify specific people — who, after all, created the currency with privacy in mind.

Discover more about Bitcoin today with BTC Markets

As one of the leading names in cryptocurrency investing, 

 is uniquely equipped to help you get started with building your portfolio. We’re ready to help you make decisions about the right kind of investments for your financial goals, and we regularly publish both 

 about the industry to help equip you as an investor. And we can help you keep up to date on crypto news — so if anyone does discover where is Satoshi Nakamoto or exactly how much bitcoin does Satoshi Nakamoto have, we’ll be sure to fill you in!

We can also help you with information about 

 — the key information you need to start 

. We provide you with a variety of options for your portfolio, including 

, as well as more short-term options too. Reach out to the team today to 

 — we’ll be able to get you started and reach your goals.

BTC Markets Blog

A Look At Crypto: AFR Cryptocurrency Summit 2022

Why Use Bitcoin?

Advantages Of Paying With Bitcoin

Central bank digital currency could be Australia’s monetary future

Cryptocurrency explained: What is decentralised finance?

Who Is Satoshi Nakamoto?

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Why Use Bitcoin?

Advantages Of Paying With Bitcoin

Central bank digital currency could be Australia’s monetary future

Cryptocurrency explained: What is decentralised finance?

Who Is Satoshi Nakamoto?

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A Look At Crypto: AFR Cryptocurrency Summit 2022