Secret Agent jumps on the Bitcoin bandwagon

Melbourne buyers advocate Secret Agent has accepted its first Bitcoin payment and intends to accept future payments made with the digital currency.

Bitcoin is a decentralised, peer-to-peer electronic cash system that launched in 2008.

The payment was made by web entrepreneur Cosmo (pictured below) for services relating to a single-fronted terrace house in Carlton.

Secret Agent managing director Paul Osborne said Bitcoin transactions could become much more common.

"We think it could take off," he said.

"Especially with people working in the space of web entrepreneurship. These people are often early adopter markets and they are often being paid for work in countries all over the world - so a Bitcoin currency works for them.

"The volatility of the currency, however, we are careful of."

Osborne said Secret Agent planned to keep small amounts of Bitcoin and would look for potential suppliers who might accept the currency as payment.

"For larger amounts, however, we will be converting back into Australian dollars.  The currency isn't stable enough to keep in large amounts."

Osborne said Secret Agent negotiated its fee for services to Cosmo based on two principles.

"We had a minium fee if we went through our research on the property, and a second fee if we negotiated the success of the property.

"After our advice and recommendation, the end price of the property was too high.

"Cosmo only had to pay our research and advice fee.  We agreed to a set fee of $1,300 for the first stage, this meant 10 Bitcoins were paid."

The exchange rate at the time of the payment was 1 Bitcoin = AU$130.