Tags: bitcoin | MtGox | currency | digital

Bitcoin Advocates Forced to Play Defense

By    |   Monday, 07 April 2014 09:38 AM

Given all of the bitcoin's recent woes, advocates of the currency have had to turn from offense to defense.

Perhaps the biggest problem was the collapse in February of Mt. Gox, once the dominant bitcoin exchange. The demise involved the loss of about $500 million of bitcoins, mostly owed to customers.

Law enforcement officials and regulators grew more concerned after the Mt. Gox debacle that the bitcoin is attracting numerous money launderers, tax scofflaws and high-tech pickpockets, The Wall Street Journal reports.

"This currency is custom-designed for fraud," a person briefed on the investigation of Mt. Gox tells The Journal.

Editor's Note: Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

The bitcoin has plummeted about 60 percent from its December peak to $456.54 early Monday, according to CoinDesk.

Some of bitcoin's supporters welcome the idea of regulation to legitimize the currency. Bitcoin can't "stay amateur. It has to be professionalized," Arjan Schütte, founder of venture capital firm Core Innovation Capital, tells The Journal. "It is stunning and aggravating how plentiful the bad actors are."

The firm has a significant investment in Ripple Labs, a digital network that conducts transfers between traditional and virtual currencies.

A digital currency isn't about to supplant the dollar anytime soon, says Peter Eavis of The New York Times. "It is not clear that virtual currencies will ever have the strengths and scope of the current system, which, let's face it, functions nearly all of the time," he writes.

Consumers appear perfectly content with the currency system as it is, Eavis argues.

Editor's Note: Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

Related Stories:

© 2021 Newsmax Finance. All rights reserved.


StreetTalk
Given all of the bitcoin's recent woes, advocates of the currency have had to turn from offense to defense.
bitcoin,MtGox,currency,digital
297
2014-38-07
Monday, 07 April 2014 09:38 AM
Newsmax Media, Inc.
 
Newsmax TV Live
 

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.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved