Bitcoin 'hard to cheat,' says PH digital currency firm

Bitcoin 'hard to cheat,' says PH digital currency firm

bitcoins have been on a tear lately and just this week soaring to a new high one Bitcoin equals eight thousand two hundred dollars now some are even tipping for a 10k finish this year yes that's ten thousand dollars now traded like a foreign currency according to some this red-hot cryptocurrency has been called many things digital gold the future of money some even fraud well it has gained a lot of traction and attention recent years is it ready to go mainstream here in Manila joining us this morning is Miguel Antonio cuneta the co-founder of Satoshi citadel industries which builds a blockchain ecosystem in the country good morning Miguel thanks for joining us good morning Michelle so this is your bread and butter it's a very complicated you know it's a very complicated process how do you explain very simply bitcoins and its use of the blockchain technology so yeah so it could be a little bit difficult to explain it in like a minute but I'm gonna try my best okay Bitcoin is actually two things the most popular side of it is the money side which is online currency it's a digital currency it allows people to send money to each other online and this is why it's in the news you know the price like I said it's it's almost $10,000 for one Bitcoin right now another thing is that it's a technological platform so it's actually a new invention invented in 2008 by an anonymous programmer named Satoshi Nakamoto and he basically before Bitcoin was invented we had to transfer value online using a third party but with Bitcoin you can transfer from person a to person B without anyone in the middle so that's what makes it kind of a groundbreaking new technology and of course the blockchain technology you can imagine there's a lot of math that go into that for example every transaction has its own code I I believe right yes so blockchain is actually the way Bitcoin keeps track of all the Tran sections so this is like a ledge to one big public ledger yes that but Miguel you mentioned that you this technology basically takes out the middlemen no regulators no sec no Bangko Sentral no government no banks no credit card companies is that you know some are worried that there's just too much there's just too little rather too little safeguards in the process I'm sorry because you take out because in the use of bitcoins you take out the middlemen who are the regulator's the banks you got government regulators there I'm some are worried that it's just not regulated at all but I mean any person can use it for scam and nobody can go after them because there is no regulator so it's actually the technology behind Bitcoin is kind of like hard to regulate itself it's just like trying to regulate the internet what you can do is what the central bank has done in the Philippines and what a lot of people are following suit in other central banks in the world is they're regulating the companies that are exchanging Bitcoin into the local currencies so that's what happened to us the central bank said that okay we will make sure that the business is dealing with bitcoins are regulated businesses okay of course you are just one of two Bitcoin exchanges that have gotten the license from Banco central congratulations on that but Miguel I want to ask what safeguards does the Bitcoin system have the Bitcoin system itself is probably the most secure online network in the world because it's public and all the records are viewable by anybody in the world it's really hard to cheat so if you try to make a fake Bitcoin transaction everyone will see it and they will not approve it what about hacking are you not is that not a big concern because everything is virtual everything's just so virtual that you know hacking could be a big threat the threat of hacking well it's been nine years since Bitcoin was invented and so far you know it hasn't been hacked so we're on a good track right there anything online is actually vulnerable to hacking Bitcoin is using a different system than what we're used to today there's no central point of failure in Bitcoin so you're gonna have to have every computer thousands of computers around the world that are running the Bitcoin software okay so just so our audience will have a clearer picture for example you and me we have a I want to pass on some bitcoins to you I have a wallet a digital wallet with it with its own code a numerical code you have yours when I pass it on thousands of computers will verify the deal that exchanged before and then that transaction goes into a ledger right there are multiple Ledger's and a central ledger that is open to everyone right yes there's actually no central ledger it's just one ledger that everybody shares oh wow okay so everybody's updating and syncing their Ledger's this is all done automatically by the way there's no one manually doing this oh wow and it's all done by computers who'd do the math yes whoo crunch the numbers III know that there are many Filipinos who have been into Bitcoin mining what exactly do the miners do they're the ones who verify right how do they verify so Bitcoin mining you actually just run a software you install it in your computer and you turn it on and that's it you don't really do anything it it just contributes your computer's computing power into the network and in it it helps process transactions and transmit data of about what's happening in the network so if I send let's say bitcoins to someone I actually broadcast the signal mm-hmm to different nodes around the world and they say ok this is Miguel is sending one Bitcoin to Michel and then they will verify that I have the bitcoins to do that that you're the address I'm sending is valid so this is all they're doing Miguel let's talk about the value of Bitcoin the price has been very volatile this year alone Bitcoin values up more than eight times now some are concerned this is a bubble that will eventually burst you know I was going over some articles last night and he did see one no less than Warren Buffett already raising red flags saying if something is virtual does it exist in the real world really a word of caution from a very famous investor there what do you think well Warren Buffett's known to be kind of adversity ecology well you know the thing about Bitcoin is for the past I don't know ever since I got involved in it they've been calling it a bubble so when it went to from 0 to $1 people were already calling it a bubble when it went to $100 if people said it was a bubble when it went to $1,000 people said it was a bubble so I don't know about that that is that is a fair that is a very fair answer to the question Miguel so what are the risks that the bitcoins because the value has been very volatile and we don't really know I imagine this is still dictated by supply and demand right that's why the prices go up because demand is going up right so what is the risk that bitcoins will be another pump-and-dump scenario for example being used for price manipulation ok so right now when Bitcoin was new you could some people could control the market probably but right now it's about a hundred thirty five billion dollar market and it's the the most interesting thing about Bitcoin is not the price of Bitcoin compared to a dollar it's actually the technology behind it and this is why I don't know over 4 billion dollars have been invested in Bitcoin companies and Bitcoin startups and Bitcoin technology that's trying to solve real world problems that's for example in the Philippines you know like cheaper remittances or faster money transfers these are things a Bitcoin can enable and I have very valuable yes I have met people who actually use bitcoins and they're saying you know the the transaction fee is very small so they get more bang for their buck there but yeah so you mentioned that the Bitcoin market is estimated to 135 billion dollars but do we know how many of these bitcoins actually have economic value versus bitcoins that were used in scams because there is no shortage of scam strip involving bitcoins I think any kind of new technology you'll always have the criminals trying to take advantage of people who are new to it it's just like when the internet was new you had a lot of these email scams doesn't make email bad thing actually even now like online fraud is like rampant and it still is widespread and Bitcoin could actually help stop online fraud and online fraud in e-commerce okay now if you look at the government side the big banks some of them are actually getting into the Bitcoin action I know that Russia tried etherium and there are other governments who are trying to experiment with their own digital currencies what about the Philippines Miguel in your take how ready is the Philippines are filipinos are philippine banks and the central bank for the future that is Bitcoin well if number one our governor s madelia already said that they're not there yet they're not considering tapping into crypto currencies for local Philippine pesos but if anything were one of the first countries if not the first central bank in the world to actually have regulations for Bitcoin companies like us so we're actually leading leading the pack right now and a lot of people are looking at the Philippines as a hotbed for innovation in the crypto currency and blockchain industry but so far the crypto currency or bitcoins is still used in relation to its conversion to an actual currency do you ever see a future where transactions will just be bitcoins Bitcoin to Bitcoin i buy projects from you using bitcoins i get something like that right now possibly yes in the near future probably it could happen but people are used to pricing things in their own local currency so it's much easier for people to say hey pay me you know 1000 pesos in Bitcoin or you know I think that applications will be used where people are don't even know they're using Bitcoin but they're gonna be using let's say an app a wallet or a money app that uses between under the hood so you don't really need to understand the technology behind it when to use it and McGill do you have any idea how big the Bitcoin market is in the Philippines and what is your outlook what kind of growth will this market see over the next three to five years well the market has grown a lot in the last two three years since we've been in business we've seen in in our own business we've seen double-digit growth in terms of transaction volumes and user acquisitions there are some Bitcoin companies there's another Bitcoin company in the Philippines that has like over a million users you know it's it's growing quite fast and I don't even think we've reached the inflection point where it reaches the mainstream so there's still a lot of room for growth Wow exciting times indeed and you're in the middle of it thank you very much for joining us this morning Miguel thank you for your insights Thank You Michelle you

38 thoughts on “Bitcoin 'hard to cheat,' says PH digital currency firm”

  1. No banks, no banko central? Not a good idea the govt. Will see this as a scam again just like other investment here in the country that they forcefully shut down even though there's no evidence that they are. Meaning if the oligarchs are not earning it's a scam that's how simple it is.

  2. Problem with the Philippines is that, it'll be hard for people to be educated specially close minded people or people who think it's a scam.

  3. It's bad for the environment. We're already struggling with power crisis and miners in this country are sucking up power. This encourages more coal power plants to open up.

  4. here's an example: Blockchain technology could be used in our voting system in the future to avoid cheating…. thats a potential real world application especially in the Philippines. Most cryptocurrency investors aren't just investing for the gains/money but because they believe in the technology that the blockchain startups are trying to do. Siyempre do your own due dilligence and study it first before diving in. This is similar to when the internet was just starting out. Kung sino magiging next google, amazon, ebay among those blockchain startups today remains to be seen..

  5. Ok. You seem like a smart person. So here's a simple question. How do the central bank create money? 10 years ago our national budget is at 2 trillion plus pesos. Now it's 3.5 trillion plus. So how do they create money?

  6. Guys I swear I just got free $2615_real money from this_amazing website>>>> Try once.

  7. “Currency” – not backed by gold nor any commodity. The only thing that’s keeping its value is a select group of people still holding a lot of it. What’s to stop them to just suddenly sell?
    “Technology” – even paper money is “technology”. It’s nothing new.

  8. sa mga wala pa account jan use my referral, click u lng link para me 50 pesos kayu, pag meron kayu Valid ID at mag selfie kayu,

  9. this guy is a CEO of his company and it's a shame that he didn't do his homework. he should effectively explain what bitcoin is and how blockchain technology works. lol

  10. Be honest there vulnerability in the system is either u will loose it or gain it even the bitcoin enthusiat says it

  11. For now its not hack-able, but someday or soon an IT will make a trial and error just to hack bitcoin.

  12. <a href=""><img src="×250.gif" alt="" width="300" height="250" /></a>

  13. educating the masses is the key. less than 1% of the population is aware of this cryptocurrency boom. this may well be the vehicle that can ultimately uplift the lives of every JUAN.

  14. hoping to legalized this….common philippines lets show the world….that even in 4th developing country we can do this!!!!

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