Australian Bitcoin trading platform going global

Journalist:
March 24, 2014
Popular Australian trading platform Btc.sx is in negotiations with US and Asian investors.

Btc.sx is a Bitcoin derivatives trading platform, created in Australia. Operating from their office in Singapore and London, Sydney was more expensive; they offer derivatives. These can best be described as instruments that allow investors to trade in something indirectly. As the name implies, they are “derived” units of value. Btc.sx is currently the most popular platform for doing trades like this. The success of this website attracted major capital. The trading platform is on the brink of securing venture capital funding from investors as it seeks to go worldwide.

Gold rush

Negotiations are being held at this very moment. One side of the table is being occupied by a US-based hedge fund and Asian-based investors. At the other end, we find btc.sx founder Joseph Lee and chief operating officer George Samman. Samman will depart for New York later this week, where he will look to establish an office. Bitcoin is hot, and the people behind Btc.sx know that this is the ideal moment to expand. A shot at potential greatness, everybody would grab it with both hands.

“When you’re in a gold rush, you sell the picks and shovels.” Samman said in an interview. “Our business is growing hand over fist.”

The popularity of the btc.sx platform is being illustrated by its numbers. About $140,000 worth of Bitcoin trades are executed on a daily basis. This allows speculators to go long or short on the cryptocurrency with leverage bets of up to 10 times. To set its prices, btc.sx uses market data gathered from European exchange Bitstamp. Since May 2013, about $43 million worth of trades have been executed on the Australian platform.

The offices of Btc.sx are found in Singapore and London. Sydney was traded for the United Kingdom’s capital as London is cheaper in terms of technology development costs. The whole website is run by a team of no more than five people. After the investment, this number could very well rise.

Bright future for Bitcoin

When asked about Bitcoin’s volatility and if that scares them, Samman made sure to show his trust in cryptocurrencies once more. “Bitcoin is the future of money, many have lost faith in central banks and governments that have re-inflated an asset bubble by printing money, ultimately devaluing their own currencies.”, says Samman.

After the latest tragedies in the Bitcoin world, it’s sometimes strange to see that so much faith still remains in the virtual currency. Usually, big investors don’t like taking risks but Bitcoin seems to be a popular investment. That doesn’t mean that most investors are reckless cowboys who like a challenge. It means belief in a future for Bitcoin is greater than the fear for its downfall. Every week is bringing fresh news of some major firm ready to invest capital in a clever cryptocurrency startup. It’s nice and exciting to watch these developments. Especially when one takes into consideration that this type of deals is still relatively new. The world is starting to trust Bitcoin and 2014 has only just begun. Who knows what we will think about when reading news like this again in December?

Christoph Marckx @cryptomaniacs

Internet addict and virtual currency aficionado living in Belgium. I work in a school, where I am responsible for every computer and the entire network that keeps our students connected to the world. I love cryptocurrencies, mostly because it gives us a chance to take back our freedom. If we do this right, there are exciting times ahead!