Bitcoin Could Strengthen The World Economy If Washington Doesn’t Destroy It

capitolhill03 Apr 2014 / Forbes – “You can avoid reality, but you cannot avoid the consequences of avoiding reality.” Ayn Rand

Sometimes our greatest strengths are also our greatest weaknesses.  In the case of Bitcoin, the decentralized nature of the network plays to both sides, creating great freedoms, which in turn create great opportunities for rogue players.  If you’re one of the “76 percenters” who don’t have a clue what Bitcoin is, you can read my introduction to Bitcoin Basics here.  In short, Bitcoin is a disruptive technology that has the potential to transform the global financial services industry and raise the standard of living for all.  Through decentralized cryptography, Bitcoin eliminates the need for banking intermediaries, significantly lowering transaction costs and could liberate poverty stricken economies around the globe by providing access to capital to the one-third of humanity that is excluded from the financial world.  However, some of the most transformational innovations of Bitcoin have been exploited by bad actors.  These nefarious players give Bitcoin a negative reputation.  This reputation leads to perception and perception becomes reality, especially in the nation’s capital and among regulators.

With decentralization at the core of the Bitcoin culture, there are few leaders in the industry providing any explanation to the regulators or the public about the scandals that have plagued Bitcoin, how Bitcoin works, and how it can benefit consumers. Additionally, Bitcoin faces a highly uncertain regulatory environment in the U.S., with multiple government departments and agencies working in an uncoordinated fashion. The regulatory risk Washington could impose on Bitcoin threatens the seamless payment system of those it could benefit most, people who don’t have access to banks and small businesses. The recent guidelines published by the IRS on digital currencies that contradict the FinCEN guidelines on virtual exchanges are a perfect case in point…. Read more

http://www.forbes.com/sites/perianneboring/2014/04/02/bitcoin-could-strengthen-the-world-economy-if-washington-doesnt-destroy-it/

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