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Moneywise

Bitcoin: The realities of virtual currency

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  • Jamescmeyer Midwest City, USA, OK
    April 10, 2014 7:21 a.m.

    I agree with your concerns about using bitcoins, but legally there's no real restriction to it. Only the U.S. government can mint official U.S. currency, but there's nothing to stop individuals from recognizing and using a currency outside the sanction of a governening body.

    I just don't place value in something that I can't carry with me to the store and buy food with.

  • wrz Phoenix, AZ
    April 8, 2014 11:00 p.m.

    The creation of bitcoin and other kinds of cyber-money is unconstitutional. The US Constitution Article 1.8 tells us that 'The Congress shall have power... to coin money and regulate the value thereof.' Article 1.9 says that 'no state shall... coin money.'

    These two Articles seem to say that only the federal government can create money. The Federal Attorney General should get busy and bring bitcoin creators to justice... if he can find them. They could be foreigners.

    Furthermore, only governments are entitled to Seigniorage (Right to mint money), which is the difference between the value of money and the cost to produce and distribute it. This should accrue to the government only, not to individuals. It's not wise to invest in bitcoins who's value could drop to zero overnight and without notice.