Download here : Bitcoin: An Innovative Alternative Digital Currency
Bitcoin is novel digital currency that has the potential to be a significant player in the micropayment and virtual world commerce markets. It is also a great alternative currency for gold bugs who prefer to hold currencies fully backed by commodities. Furthermore,because it is anonymous and decentralized, and therefore difficult to shut down, it may allow organisations hated by governments whether these are morally commendable or detestable organisations—to be funded without risk of monetary seizure or sanctions on financial contributors.
While the history of currencies such as the Iraqi Swiss Dinar that had no backing by either commodities or government entities indicates that Bitcoin may succeed, potential users and investors should be aware of the many risks inherent in using such a young technology. Most importantly, Bitcoin currently operates in a legal grey area. The federal government’s supposed monopoly on issuing currency is somewhat narrow and statutes that impose that monopoly do not seem to apply to Bitcoin due to its digital nature. However, a bitcoin may be a “security” within the meaning of the federal securities laws, subjecting bitcoins to a vast regime of regulations, including general antifraud rules. Although the best argument is that a bitcoin is not a security, Bitcoin’s proponents will have to await an SEC or court interpretation for certainty. Furthermore, other legal issues that have not been analyzed in this Article are probably significant, including tax evasion, banking without a charter, state escheat statutes, and money laundering.
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