BitCoin the New Currency
By Azam on June 10, 2011
BitCoin is the ultimate currency in the modern and well connected world. BitCoin has recently been in the spotlight to news of being tied to the nefarious purposes. The growing interest in the currency offers a real the validation on the power of BitCoin and threat to other forms of currency widely held and in circulation.
Currency is ultimately the means of exchange of value. In a global and connected world, currency that is mostly used to exchange all goods and services is going to be used and be in demand.
Bitcoin is a decentralized digital currency that instead of relying on a central authority to issue new money relies on individuals “mining” their own coins and trading them via peer-to-peer networks.
The people running San Francisco start-up conference Launch say Bitcoin could “topple governments, destabilize economies and create uncontrollable global bazaars for contraband”.
The illicit industry and black market despite being illegal contributes a large portion of the international market and economic activity involved in world trade. Money laundering is widely being used to convert illicit gains into common for of currency that can be used and protected, BitCoin may offer the perfect solution or indicate a ne for of currency that will become a serious threat to current system of monetary exchange controlled by central banks and their respective currencies.
The Silk Route
Wired revealed an underground market called Silk Route using an underground website that lets you buy any drug imaginable. The BitCoin connection is the currency used allowing the anonymous buying and selling of any goods such as contraband. The peer to peer system on an encrypted network allows for the secure and trusted network to thrive in the market.
Hackers
The future of BitCoin may evolve due to hacker community and their need to utilize currency in their operations. The recent hacker community LulzSec involved in attack on Sony has been financed through BitCoin currency. The hacker community will likely use BitCoins as a favored currency to trade goods and services in their line of work. Carders are hackers that specialize in stealing personal data such as credit card info and trade info online for profit. Bitcoin will likely be the type of currency used and reduce the need of drops and involving potential physical tracking money and people involved.
Bit Coin currency is being compared to Napster for money (Nap$ter?) of digital currency, by circumventing the banking system and allowing people to trade seamlessly across borders. But we all know what happened to Napster and it might be difficult for Bitcoin to avoid the same fate, except Bitcoin will be going up against central banks rather than private music labels.
The Government
Senator Charles Schumer is asking federal authorities to shut down a secretive narcotics market operated online with anonymous sales and untraceable currency.
“Literally, it allows buyers and users to sell illegal drugs online, including heroin, cocaine, and meth, and users do sell by hiding their identities through a program that makes them virtually untraceable,” Schumer said at a news conference Sunday. “It’s a certifiable one-stop shop for illegal drugs that represents the most brazen attempt to peddle drugs online that we have ever seen. It’s more brazen than anything else by lightyears.
“It’s an online form of money laundering used to disguise the source of money, and to disguise who’s both selling and buying the drug,” said Schumer.
BitCoin is Very Real
The thing to note is that Bitcoin has real, and actual, value. Currently a Bitcoin (BTC) is trading at around $15.
The best performing currency of the past year isn’t Brazil’s real, up 15% versus the U.S. dollar, or Australia’s dollar, up 27%. It’s the Bitcoin. A year ago one was worth half a penny and is currently trading it hit $15 that’s a gain of more than 300,000%.
Brief Video on BitCoin
Categories : Tech, Wireless, World, viral
Tags : BitCoin, Charles Schumer, Encryted, LulzSec, PayPal, Peer-to-Peer, Sony, wikileaks