Once again Bitcoin has been in the news for the wrong reasons again this time due to hackers stealing Bitcoin from a web site. It got me thinking is the whole idea of the Bitcoin is even worth the effort as since it’s creation it has caused more problems than it has solved ranging from excess power usage due to people mining it and the fact it is being used for illegal usage both by hackers and criminal because of it’s untraceable nature.
But what this highlights the major problem with virtual currencies is a lack of real control of these currencies as there are with so called real currencies mostly due to world governments and establishments total lack of understanding of the internet and it’s very nature.
This a control for virtual currencies makes them unsafe to use in so much as their very nature they are not backed up by real economy plus it makes them ideal for criminals to commit crimes including money laundering outside of the traceable real life money markets.
Of all the currencies Bitcoin has to be most insecure and least controlled virtual currency and anyone use uses it uses at their own risk and associate themselves with both hackers and criminals. Personally I would not use it as Bitcoin is not a secure way to store and use money because of it’s short comings.
I do use the virtual currency Linden Dollars within Second Life as they are limited to the virtual world and there has been some attempt to control them and they are actually backed by a working virtual economy.
But both Bitcoin and virtual currencies like Linden Dollars should start to be taken more seriously by world governments sooner than later as both are here to stay and need the same controls as real currencies to make them more secure and less attractive to criminals.
The BBC story which sparked this journal was: Major Bitcoin theft from website, claims owner
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