Using metaphors for cryptocurrencies helps people feel more familiar with the technology. But there’s a downside – we expect it to work just like regular money.
If Bitcoin is a bubble, it will be because its price rises are too great and can’t continue. If it isn’t, it will be because the Bitcoin market is still expanding. We just don’t know which one yet.
The astronomic rise of the price of bitcoin over the past 12 months raises fears that the cryptocurrency is set to crash which could see many people lose money.
A digital Australian dollar could remove the role of middlemen and creates a cheaper electronic currency system, while at the same time enabling the government to fully regulate the system.
The development of distributed trust technologies is making traditional institutions like banks, corporations and governments nervous. Those who have power like to hold onto it. What’s next?
As cryptocurrency systems improve, they will better protect criminals’ identities and even allow people to offer anonymous rewards for crimes they want committed.
Despite its name, cryptocurrency isn’t just money. It could also be debt or equity and so it should be regulated and taxed in the same way as other finance.
Nir Kshetri, University of North Carolina – Greensboro
Cybercriminals increasingly depend on e-currencies to profit from their misdeeds. They, and their potential victims, could be driving some of the growth in cryptocurrency markets.