Jul 212014

By Mohammed Waseem

Amidst the arguments on whether Bitcoin will replace the paper currency or not and amidst the fluctuations in value of a Bitcoin, small companies and coffee shops had begun accepting Bitcoin. Now, larger organizations have started to accept the virtual currency, probably seeing the potential it has. It has seen a high of over $1000 and a low below $200. At this moment, it is fluctuating between $621 and $622.

Multinationals including Dell, have started accepting Bitcoin for their products. With this, Dell has become the world’s largest ecommerce acceptor of Bitcoin. In addition, New York has proposed Bitcoin trading, called BitLicence, according to which, companies would require license to trade in Bitcoin. This is how they intend to regulate the virtual currency, which is otherwise unregulated.

Rebit.PhIt is not surprising to know that money transfer companies have begun offering Bitcoin transfers, in fact, few companies have begun offering “Bitcoin transfers only”. Rebit is one such company which allows people from around the world to transfer money to the Philippines through their Bitcoin wallets.

To send money, senders have to logon to Rebit.Ph, define the amount to be sent in ? (Philippine Pesos) and select the delivery option. After this, recipient’s details have to be provided along with the details of the sender. Delivery options available are in-person pickup (charged between ?5 and ?8), bank account transfer (free of cost), home delivery (between ?59 and ?120) or pickup at Rebit.Ph headquarters (free of cost). These are the third party fees charged.

Rebit charges 1% of the transfer amount as the fee. So, if one wants to send money to the recipient’s bank account, they are only charged 1% of the amount, but if they want it delivered to their home, they are charged 1% of the amount, plus a charge between ?59 and ?120. The maximum amount senders can send in ?50000 and minimum they can send is ?1000.

Once the sender completes the transaction, the recipient receives a text message about the transfer. The next day, they can collect the money or has it deposited into the bank account.

Although Bitcoin is gaining popularity and adaptability, it is not yet stable. Fluctuations and crises are common in the Bitcoin market; even experts make losses and wrong assumptions. This is mostly true due to the fat that the virtual currency is not regulated. New York has taken a step to regulate it, let us see who joins them and how far the virtual currency goes.