Bitcoin: Will Govs Allow It To Stay Legal?Submitted by McWilly on Tue, 04/09/2013 - 13:49
Recent statistics for Bitcoin peg the upstart digital currency at exchange rates of over $200 per Bitcoin – a very impressive return for those who were in the game early, and an indicator of the rapid adoption and infatuation with it. For those not familiar with Bitcoin, it’s an online currency that allows anonymity for those (rightly) adverse to their monetary transactions being tracked and who favor currency separation from government dependence/control. Unlike the standard fiat currencies issued by governments around the globe, the value of Bitcoins are determined by market pressure rather than government decree. They can only be “mined” at a certain rate, which is pre-programmed in. Thus, there is a certain scarcity to Bitcoins as opposed to the nearly limitless ability of the world’s central banks to create new money.
Despite (or in fact, because of) the popularity of Bitcoin as an alternative currency, the question must be asked: Will Bitcoin stay legal? And by that, I mean, will governments used to being in control of their citizens monies allow the adoption of this currency to continue unabated, or will it become common practice globally to outlaw the exchange of standard currency for digital currency?
There would be numerous reasons for them to do this: Continue Reading