A statement from Alix Resources Corp confirmed that payment for exploration work to be carried out at a property that contains tungsten would be done using the online currency Bitcoin. Alix said it would be paying its contractor, Ridge Resources Ltd in Bitcoins currency. The said work would be conducted at Alix's Windy Property located about 15 kilometers or 9 miles north of Cassiar, British Columbia.
The agreement stipulated that as Ridge Resources completes the work, it would send a quotation for payment in Canadian dollars. From there, Alix, which is based in Vancouver, would convert the Canadian currency into the Bitcoin digital currency. This payment scheme was confirmed through a phone interview by Alix Chief Executive Officer Michael England.
England added, "We are a mining exploration company so yes this is a bit different. There's a lot of expectations that Bitcoins are going higher, so why not start accumulating.?"
Alix's share values increased by 33% to CAD0.04 per share in trading volume 17 times the average rate of trading for the past three months. At this valuation, Alix is worth CAD2 million or USD1.9 million.
Alix had teamed up with a software company to operate a Bitcoin exchange. The company may eventually shift its focus to Bitcoins in its entirety, depending on the success of the venture according to its CEO.
England added, "We want to take advantage of this niche, the explosive sector." There are those who oppose this and Amongst its naysayers is Red Sky Capital Management Ltd Managing Director Brian Huen, who said, "I'm surprised someone's willing to take payment through Bitcoins."
The Bitcoin phenomenon has exploded this year. The value of Bitcoins was at USD343.63 and had traded as high as USD347 at Bitstamp, another online exchange. This currency was introduced to the market four years ago and is actually software designed to be untraceable. This has made Bitcoins very attractive tender for those that seek to trade anonymously onlne.
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