Bitcoin, the digital currency that started making the news back in 2009, is under heavy scrutiny. It’s been slowly gaining steam as a currency option among small companies and alternative currency investment firms, and now the New York Department of Financial Services wants to know more about it. About twenty-four companies have been subpoenaed for information regarding Bitcoin transactions, potential money laundering schemes using Bitcoin, Bitcoin investment strategies, and consumer protection.
Upon reading the article, I did a little digging to find out what exactly Bitcoin was. I knew it was a digital form of currency, but I didn’t quite understand how it fit together in the real world market, which I believe is what the New York Department of Financial Services is also trying to find out.
Suffice to say, I made little head way. It’s dressed up in a nice presentable bow, but Bitcoins are essentially pulled out of thin air – albeit through a ridiculously complex process that involves peer-to-peer networking.
Apparently, if all goes according to plan, there will be 21 billion Bitcoins by 2140 and no more will be “made” afterward.
I understand the simplistic idea of our currency being digital – it already is for the most part – but if we completely move over to Bitcoins then our money won’t technically be backed by anything!
Where do you stand on Bitcoins?
Source – The Verge