Crypto-currencies like Bitcoin have been creating quite a buzz online and in the financial world, and now there's one with a New Zealand connection.
Megacoin is a digital currency with a New Zealand domain name, but it's a mystery as to who is behind it.
Its makers call it the next big thing, but Megacoin trader Matt Meek is already enjoying the benefits of buying in early.
"I've made a 7,500 percent return on that investment," says Mr Meek. "Yeah it's pretty ridiculous."
That's a 7,500 percent rise in value from $2,000 six months ago, to $150,000 currently.
"I told a lot of my friends beforehand about it but obviously no one listens until they see the result."
Megacoin is just one of many decentralised digital or crypto-currencies similar to the now widely used Bitcoin.
Its website uses the .co.nz domain name and there's widespread speculation that the man behind Mega, Kim Dotcom, is also behind the digital currency. But Dotcom denies involvement.
3 News has been in touch with Alien Walker, who is part of the Megacoin team. He says the lead developer goes by the name Kimoto but is anonymous even to those working on Megacoin.
Crypto-currencies are becoming increasingly traded and accepted for payments by retailers worldwide. They are usually traded at much lower transaction costs than traditional money.
"What [we] are seeing here is a monumental shift of power away from the banks and into the consumer," says equity analyst Joeri Sels.
But crypto-currencies are notoriously volatile and many say there's no safety net.
"We are backed up by the New Zealand economy," say's Forex Trader Hao Sun. "But with this type of currency there's no backup."
But as Mr Meek will say, while there's no backup it seems there's no ceiling either.
3 News
source: newshub archive
