Is Bitcoin the currency of the future? A recent Bank of America research report touted the “many benefits” of Bitcoin including low transaction costs and built-in anti-money laundering features.
But others have focused on the negatives. The Chinese government recently restricted its banks from using Bitcoin as currency, citing concerns about money-laundering and stating that Bitcoin is “not a currency in the real meaning of the word.”
And Alan Greenspan says that Bitcoin is a bubble that has no intrinsic value because there is no government standing behind it. Others have likened the recent interest in Bitcoin as currency to tulipmania.
The question is whether Bitcoin can turn from a tulip (an idea of value that is fleeting) to gold (an idea of stored value). The value of gold is really just an idea, a construct of the mind, just as government is a construct of the mind. Gold and government are readily accepted as having real value, but their value is derived from their universal acceptance as symbols of value. There is no a priori reason why gold should hold value or why there should be a government that centers our society. These are outcomes that are are a result of human thought. New symbols of value, such as Bitcoin, may also gain wide acceptance.
In fact, the U.S. government’s move to regulate Bitcoin, if done with haste and reason, may accelerate Bitcoin’s acceptance as a “currency in the real meaning of the word.”
Felicello Law is available to assist you in this new world of transcontinental, non-government issued currency. Contact us today.