Last year was the year of the crypto-currency. "Virtual" P2P (peer to peer) currencies such as Bitcoin, Litecoin, and the meme-inspired, Dogecoin surged into popularity in the span of just one year. Last year has also seen the dramatic rise, and subsequent notoriety, of Bitcoin. From just US$15 at January 2013, the value of a single bitcoin surged past the US$1000 mark by November 2013. It was a phenomenal rise that few people had ever imagined for a financial entity that is freely unregulated and not backed by a government or any other hard asset such as gold.
Tightening the Noose on Crypto-currency
While Bitcoin is the darling of libertarians,
But why the animosity? First off, the Feds don't like it when people do things
that make them invisible to the tax radar. Crypto-currencies have no governing
bodies and are all completely anonymous, so there's no way that the IRS can
figure out who's earning how much. Just recently, the IRS has released IRS
And the recent state of setbacks for Bitcoin even encourages the
Despite these very public setbacks, the fact still remains that people want minimal government intervention when it comes to financial matters. Small establishments, from neighborhood cafes to sidewalk lemonade stalls, have started to embrace the advantages of Bitcoin. While there is a slim possibility that Bitcoin may be dissolved in use if problems such as the Mt. Gox fiasco will continue, people will still manage to find their own ways of making their own crypto-currencies. In fact, the native American tribe Oglala Lakota Nation, has officially formed and adopted their own virtual currency called the MazaCoin. This is something that could radically reshape tribal economies.
With the numerous advantages that crypto-currencies offer the consumer, there is little doubt that there is little government can do to stem their ever increasing use.