New York lawmakers bite hard on Bitcoin: why that’s good for investors (+video)

bitebitcoin30 Jan 2014 / Christian Science Monitor – As two days of hearings on the future of digital currencies – think Bitcoin – wrapped up Wednesday in the New York State Legislature, fans of the cyber-cash were getting both bad and good news.

Supporters who are drawn to Bitcoin because it largely functions outside governmental control may have been dismayed at the attempt to corral the currency inside state guidelines for the handling of money.

But, at the same time, say experts, the simple act of enacting regulations bestows the legitimacy the digital currency needs to become widely used.

“Most of the folks in this market who are not anti-establishment or fringe elements understand what’s necessary for this market to grow,” says Kevin McIntyre, an economics professor at McDaniel College in Westminster, Md., who specializes in the study of virtual currency. “And for virtual currency to have a future, some level of oversight – and the cache and legitimacy that come with that – is necessary.”

At the moment, says Professor McIntyre, “there is this wild unchecked market out there” in the online world of transactions using Bitcoin, noting that “the potential for abuse is too large to be ignored.” This includes the use of Bitcoin and other virtual currencies – through transactions that that are largely anonymous – for terrorism and money laundering…. Read more

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