Wednesday, June 5, 2013

Future Bitcoin: Currency for Better World – or Not?

Future Bitcoin Currency for Better World – or Not- new bitcoin world, rent bitcoin miner, bitcoin news, latest bitcoin news, new bitcoin world, asic miner, asic bitcoin, free bitcoins
03 JUNE 2013. More recently, there has been a lot of “noise” around bitcoin (BTC), defined on its official website as “an open source P2P digital currency”. Bitcoin has got notable (mixed) media attention; bitcoin start-ups have started to attract VC funds; bitcoin enthusiasts seem to be gathering around the world; bankers and central bankers are paying attention. Wow. That’s a buzz!

Popularity of bitcoin among its enthusiasts and die-hard fans builds on the well-known issues of the current monetary system which:

(a) is centralized and based on “fiat money”, i.e. supervised by governments and central banks that have taken the authority (and responsibility) to control the money supply;

(b) is heavily reliant on the banks that can and from time to time do fail, causing losses both for the depositors (in first order, amounts above the guaranteed deposits) and for the tax payers (when banks are being bailed out or kept on the artificial life support);

(c) has no privacy, that is a banker can see every transaction of her or his customer.

Apparently, many people do not like the idea of being controlled and monitored by the “money masters”. Instead, they (we) want a monetary system that is: secure, decentralized, based on worldwide consensus, politically neutral, and protecting individual rights and freedom. That’s what die-hard fans of bitcoin believe this crypto-currency* to be; that has been the basic promise to the bitcoin enthusiasts.

Yet bitcoin is not fit to live up these noble expectations and promises. I’m not talking about the technology which in one or another way is going to change the financial industry. (Banks would just love certain technological advantages that bitcoin offers; they’d just love this dedicated developers like technological visionaries who are developing bitcoin infrastructure.) I’m talking about the conceptual design of the monetary system in the “bitcoin economy”, and the interactions between bitcoin economy and the world of finance as we know it.

Another major cause of concern is of course legal aspect. Obviously this kind of initiatives and financial innovations are intervening to the aims and tasks and potentially also the authority of central banks and governments. Obviously too, a new and immature currency with bitcoin features is attractive for guys with skewed motivations. I will not go into details with this; it’s more for the lawyers to analyze. Just to note: my guess is that venture capital is going to reconfigure bitcoin in a way that it is generally in line with the legislation. - Read more here: http://blog.logicoffinance.com/2013/06/future-bitcoin-currency-for-better.html

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