11 Dec 2013 / Barrons – Bitcoin, the digital currency launched in early 2009, is being accepted by an increasing number of vendors worldwide, from car dealerships and online travel-planning firms to wine merchants and charities. Even though its value has swung wildly in recent days, each bitcoin has skyrocketed in value for the year overall, climbing from around $13.50 last Dec. 31 to above $1,000 as of yesterday, according to data from bitcoincharts.com.
But will bitcoin’s growing acceptance undermine the U.S. dollar? The short answer is no.
Certainly, there are investors out there who worry about the dollar, and especially how unintended consequences from easy monetary policy and massive government debt might undermine the U.S. currency. How could it be that the Federal Reserve’s balance sheet has risen by more than 300% since 2008 and the dollar has not been debased?….. Read more
