bitcoinvancouver

The GoTo Site for all things Bitcoin in Beautiful Vancouver British Columbia Canada

Has Bitcoin Gone Establishment?

Has Bitcoin Gone Establishment?

I’m not sure if this news is welcome or distressing to Bitcoin’s hardcore libertarian ideologues, but the U.S. Justice Department and the SEC are about to give the virtual currency their blessing as offering a “legitimate” financial service, according to representatives from both agencies. That news helped to briefly drive the price of Bitcoin above $900 yesterday.

 

Of course, the U.S. government now has skin in the game. After shutting downSilk Road, an illegal drug trafficking website, the FBI walked away with the site’s Bitcoin stash, which amounted to about 1.5% of all Bitcoins in circulation.

If the government accepts Bitcoin as legitimate, half the gritty, underground appeal is gone. But for optimistic Bitcoin buyers, acceptance by the suits is a bullish sign of broadening demand for the anti-currency.

Demand from China helps, too. BTC China recently because the world’s largest Bitcoin exchange, overtaking Mt. Gox of Japan, and is using venture capital money to expand.

So, what’s the story here? Has the anti-currency come of age? Is Bitcoin “a thing” now?

No, it’s not. Frankly, it’s asinine, but I’ll get to that in a moment.

If you want to join the speculation party, be my guest. The “value” of a Bitcoin in dollar terms has tripled in the past month as the price has gone parabolic. Who’s to say it can’t triple again in the next month?

But don’t put any money in Bitcoin that you can’t afford to lose. Bitcoins lost about 75% of their value in April, and at the time its price was less than half what it is today.

Furthermore, the arguments backing the currency are flimsy at best.

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This entry was posted on November 19, 2013 by and tagged .

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bitcoinvancouver2013@gmail.com

bitcoinvancouver2013@gmail.com

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