Authorities Analyze the Value of Bitcoin

  • Internet Fraud

Known to fuel transactions on Internet black markets, Bitcoin has the potential to open the digital economy to poor societies around the world. Not only has its value climbed to all-time highs in recent weeks, but also Bitcoin has caught the U.S. governments attention. Weve seen the steady growth and popularity of this digital currency since it debuted in 2009. Recent events, such as the FBIs closure of Silk Road, have brought Bitcoin into the spotlight.

The closure of Silk Road is said to be a major contributor in the surge of its value. Its boosted hopes that Bitcoin is quickly becoming a credible currency alternative. Another reason could be increased awareness Globally and individuals investing in them. The U.S. Senate Committee on Homeland Security and Governmental Affairs are trying to figure out how to handle Bitcoin while privacy advocates want Bitcoin to be free from governmental oversight. Advocates are saying that Bitcoin can provide a global transaction network that cannot be corrupted or abused by criminals.

Recently, the New York State Department of Financial Services decided to consider whether or not they should issue a certification called BitLicense to help manage the spread of online currencies like Bitcoin. This license would require consumer protection services and anti-money laundering requirements, designed to make the currency less useful to fraudsters. Of course, many worry that the introduction of regulations could make the currency less appealing, causing its value to decline.

As more consumers begin to understand Bitcoin and see its potential in the future, theyll want to be a part of it. Once a decision has been made, sophisticated fraud prevention tools can help regulate transactions and assist in monitoring fraudulent activity. It would be easier to fight crime with appropriate anti-money laundering and Know-Your-Customer controls.

[Contributed by EVS Marketing]