Buying Bitcoin in Australia [& Canada update 2020]
Originally released to the general public in October 2008, Bitcoin is a form of digital currency that functions in much the same way as many other payment methods; albeit on a value-by-demand basis. Unlike other forms of currency (i.e. the dollar, euro and pound), this digital equivalent is considered to be as valuable as the market demands.
Update Nov 2017 – you can now buy the digital currency Bitcoin in Canada.
See the updates here: Wayne Saman
How do Bitcoins work?
The simplest way to understand this unique form of currency is to consider it a tool that can be used to pay for a variety of services. Where real money is exchanged in return for a particular product or service; digital coins are instead sent to cover costs – without any financial value beyond trading for other forms of the same currency.
Imagine for a moment that a person wanted to purchase the services of a web developer. In most instances, cash would change hands and then the service would ensue. Bitcoin digital currency is an additional form of payment that the website developer may accept and if so, they will define what they value to be the cost of their services.
Can Bitcoins be used like real cash in Australia?
Once the web developer has received the digital currency, they will be free to store them to trade for another service, or save until the demand for the currency itself increases. It will then be possible to trade the accumulated coins for real cash, buy services, swap for goods, or simply transfer to another user.
This activity takes place via an electronic cash system, in which peers are able to transfer sums for particular activities. Although the coins themselves aren’t considered legal tender, there are many that make a living by trading them across their own network of peers. In its early days, this system was originally intended to allow those with internet careers to receive payment that could be exchanged for other services, or simply traded for real cash to turn a profit.
These days, thousands of businesses within Australia rely on this electronic system to transfer the digital currency nationally and internationally – and with so many service providers accepting this form of payment, there has never been a better time to invest in the coins to receive services or goods.
These days, there are over a dozen individual platforms that make it easy to store, transfer, receive and trade bitcoins, so there’s minimal need to rely on the open-source software originally introduced in 2008. There are even people that pursue careers in the trading and investment of these digital coins and when practiced properly, it’s entirely possible to make a fortune.
It is important to note that bitcoins themselves will never truly have their own value – but as long as people are willing to trade for them, they will always be worth money in the real world.