The shutdown of Silk Road was expected to negatively impact Bitcoin, but instead, the government shutdown and looming debt ceiling crisis only served to heighten demand for a virtual currency that is not subject to the instability of any political system. Governments have also appeared less likely to outlaw bitcoin in recent times, and with numerous alternatives to Silk Road appearing, the future of the virtual currency looks bright.
Nearly 5 years from its establishment Bitcoin has increased its harsh rate and this has been an effort by a number of companies at the background like the ASIC miners. This growth has really encouraged a number of companies especially ones connected with IT. Many investors will run to Bitcoin and will grow their companies based on the speed of operations in close to double the speed.
This is about a new currency called Bitcoin on whether it is legal or not and whether the government and financial institutions will start a campaign to stop this digital currency or not. What really started this warning was the fact that a market place used Bitcoin for the purchase of illegal drugs.
What should bitcoin currently be classified as? Currently, no one is quite sure! Because it is mined, it behaves much like money, yet it is also very similar to a commodity that can be bought and sold. Regardless of what it will eventually be classified as, bitcoin, bitcoin is becoming more and more useful to everyday consumers thanks to its safe nature.
While bitcoin users and traders generally insist that bitcoin is safe, many are not convinced – and with good reason. Criminals are noted for exploiting bitcoin’s anonymity, an activity highlighted by the recent closure of the Silk Road drug trading site. Additionally, computers are often hacked by bitcoin miners, harming even those who choose not to use the electronic currency.
This past week, everybody who is anybody in the bitcoin world converged in Las Vegas to attend Money2020 – the first time that such companies have showed up in a mainstream financial convention. While bitcoin did not dominate the scheduled panels, it was the word on everyone’s lips as attendees discussed the future of finance and this unique electronic currency.
A new bitcoin exchange bank has opened in Canada, but of course not without encountering some problems. The bank, Vault of Satoshi, has had to change names several times to avoid legal problems. Satoshi’s presence in Canada is expected to be a boon to Canadian bit-coin users, thanks to its low exchange rate of 0.5%
Bitcoin may have had a setback with the closure of the Silk Road by the FBI a few weeks ago, but bitcoin users happily report that the electronic currency is not going away. Rather, it is poised to grow. This is evidenced by how the value of bitcoin only dipped briefly after the Silk Road incident.
Privacy and fraud, two of the biggest issues facing the future of electronic transactions, were discussed in great detail at a recent bitcoin meet-up. The discussions revolved around criminal enterprises taking advantage of security loopholes in gift card purchases and digital payments. Bitpay was on hand to discuss its goals for the future of bitcoin as well.
The British has intensified the apprehension of internet drug trafficking with the use of bitcoins. Bitcoins are online currency that is used over the internet to purchase drugs. This particular bit coin operation is head by Silk Road founder Ross Ulbricht. Ross Ulbricht uses the public library to traffic drugs using bit coins.