Tags: bitcoin | mining | experts

Bitcoin Mining: Is It Here to Stay? Experts Have Mixed Opinions

Image: Bitcoin Mining: Is It Here to Stay? Experts Have Mixed Opinions A man sits next to a Bitcoin mining machine, at a Bitcoin mining office in Feng Yupeng in Chongqing, China.

Tuesday, 04 Feb 2014 08:51 AM

By Clyde Hughes

Bitcoin is continuing to make a space for itself among global currencies, with some experts going as far as claiming it's the future of money.

Marc Andreessen, a venture capitalist and Internet browser pioneer, told an audience at the Open Compute Summit in San Jose, Calif. last week that he sees Bitcoin replacing banks and stock exchanges one day, according to eWeek.com. 

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

"Bitcoin mining is the heart of Bitcoin, which is all the computation that is done to maintain the trust network," Andreessen said. "The press reports on mining as a waste of time, but in reality it's all the proof of work computation that makes a distributed trust network work."

David Furlonger, vice president and fellow at the research group Gartner, said that he believes Bitcoin is "overhyped." However, it is leading the conversation on how value is calculated.

"Bitcoin is a massively overhyped piece of noise in the marketplace in and of itself," Furlonger said, per TechWeekEurope. "That said, it evidences something more fundamental, which is a shift in the notion of how value is calculated and how value is transferred between entities."

Bitcoin is a peer-to-peer virtual currency that removes the government as a middle man in financial transactions. Bitcoin miners use special software to solve math problems and are issued a certain number of Bitcoins in exchange. Bitcoinmining.com says the software provides a fair way to issue the virtual currency and encourages others to mine as well. 

TheVerge.com reported last week that the U.S. Treasury has decided not to regulate virtual currencies like Bitcoin as long as it complies with financial regulations.

"Though the ruling does not let all Bitcoin and virtual currency businesses off the hook from regulation, it's good news for the bulk of users who are interested solely in acquiring and trading a currency," TheVerge.com reported.

"Many have been concerned that Bitcoin's increased popularity would lead to regulation and hamper the ability to use it anonymously — a sizable part of what makes it so appealing. Virtual currency exchanges will still be required to register with FinCEN and comply with money-laundering regulations though, whether they exchange with legal tender or just another virtual currency," the article added.

Editor's Note: Do You Support Obamacare? Vote in Urgent National Poll

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

The 2016 'Book Race': GOP Candidates Like Ben Carson, Huckabee Sell Like Hotcakes

Friday, 30 Jan 2015 20:50 PM

If potential Republican presidential candidates' recent book sales are a strong indication of their electability, then B . . .

Smoke on Boston Train Scares Passengers Who Bust Out Windows to Escape

Friday, 30 Jan 2015 19:37 PM

A commute on Boston's Red Line Thursday morning turned into chaos as smoke filled the train and passengers broke out win . . .

Seth Jackson Sentence: Foster Dad Gets 32 Months in Hot Car Death

Friday, 30 Jan 2015 18:50 PM

Kansas foster dad Seth Jackson was sentenced to 32 months in prison Friday for the July death of a 10-month-old girl who . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved