Bitcoin: A currency that works beyond the control of the government
Donald Trump, an American business magnate and billionaire, warned Americans last year that America is hanging off the cliff of financial ruin. Furthermore, recent crashes in the price of gold has increased panic on world financial markets.
However, the Bitcoin may offer a lifeline in the long term as it functions beyond the reach of government and law. The Bitcoin not backed by a nation state but is instead supported by a series of mathematical rules. When it comes down to it Bitcoins are nothing more than strings of computer code and there are only 21 million coins in existence ever. This is all regulated by maths.
No bank has certified Bitcoins are legal tender and users are acting out of a shared belief that the Bitcoin is worth something. However, considering this is the same psychology that supports the traditional currencies it seems like only a matter of time before Bitcoins increase in use. This is particularly poignant considering Lamassu announced today that they are rolling out Bitcoin machines that will exchange cash for Bitcoins across the globe.
Yet, if the currency was to stabilise and was supported by a large user base then cash flows will be forever out of the hands of governments and law.
The Bitcoin looks like a viable alternative to the more traditional currencies backed by nation states.