Bitcoin — the Internet currency, payment system and technology — is about the birth of a new “digital” monetary ecosystem. Bitcoin bypasses traditional banks and clearinghouses with blockchain technology. Like every innovation it creates new regulatory and compliance challenges. There is growing interest in knowing where the money has come from and at the same time the anonymity of bitcoin makes creating an data trail a tricky task, but it’s possible to say whether certain bitcoin addresses are involved in mining, or have been associated with gambling transactions.
More recently, nationally known merchants like Overstock.com, Zynga and the Sacramento Kings basketball team have begun to accept Bitcoin payments. Even political candidates are taking donations through the system. Worldwide transaction volume keeps growing, as does the number of Bitcoin users.
Bitcoin is built on some heavy and complex data-crunching. Like any ecosystem, it will have its share of winners and losers. The Bitcoin “Innovative Disrupters” are those that have the best odds at being winners. Read more
Do Bitcoin and other cryptocurrencies provide opportunities for innovative entrepreneurs to create real value? Bitcoin has proponents and naysayers. What is it really about?
The 18th century philosopher Voltaire, a proponent of the separation of church and state, is known to have said that the Holy Roman Empire was neither Holy, nor Roman nor an empire. We could say the same about Bitcoin as a virtual cryptocurrency.
Cryptology has an important role to play in Bitcoin, but that is not its defining feature. Currency is historically built on the recognition of national boundaries and their associated political constructs. Moreover, the words “crypto” and “fiat” are not opposites.