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SecondMarket makes push for bitcoin legitimacy in currency market

Investors have to recognize that even amid setbacks, Bitcoin may soon be an important trading tool.
Investors have to recognize that even amid setbacks, Bitcoin may soon be an important trading tool.
Photo by Spencer Platt/Getty Images

Bitcoin, the currency phenomenon of recent years, has had some volatile ups and downs over the last few months, and specifically this week. On February 27th, 2014, SecondMarket, a New York based trading company specializing in electronic currency without a liquid market, made a groundbreaking announcement relating to bitcoin. SecondMarket is planning to create an exchange for the digital currency. This announcement comes just days on the heels of the Mt. Gox bitcoin disaster, and it maybe enough to finally legitimize bitcoin as an alternative currency.

Mt. Gox closed unexpectedly on Tuesday, effectively losing hundreds of millions of dollars of currency for investors. According to a Reuters article, the Japanese exchange for bitcoin had come under many cyber attacks, and they made the decision to close their doors this week. The unfortunate fact is that without bitcoin being backed by any government, those who had invested at Mt Gox. may not be able to get any of their investment back. This is a huge setback for bitcoin and the digital currency market.

Enter SecondMarket. USAToday reports that this company has been in business for nearly a decade, and they know how to handle emerging assets and investments. The currency exchange company has been working with emerging investments and currencies over the last few decades. They were trading shares of Facebook and Twitter before the companies had gone public.

If bitcoin was looking for an environment to grow with investors, it looks like SecondMarket may be a strong option. This change can take bitcoin from a secondary currency used primarily for small or unscrupulous transactions, to something that may be seen side by side with dollars and euros in a few months time.

Online marketing could see some big changes as a result of this development. Businesses will need to be aware of any emerging payment methods, especially ones that will likely be a major currency soon. Individual investors and customers will need to keep track of these developments as well. It is beginning to look like bitcoin is less of an investing fad, and more of a legitimate currency vehicle.