Each day brings a new article about the digital currency called bitcoins. As some commentators deride them as unsafe or a fad, bitcoins trade on bitcoin exchanges at values close to $1,000 and with a market capitalization of around $10 billion.1 Former Federal Reserve Chair Ben Bernanke told the U.S. Senate in November that currencies such as bitcoins “may hold long-term promise,” while two weeks later China’s central bank banned Chinese banks from accepting bitcoins.2 Meanwhile, Vancouver has the world’s first bitcoin ATM, and attempts are being made to bring one to New York City. And announcements by corporations such as Richard Branson’s Virgin Galactic that it will accept bitcoins as payment for space flights indicate that bitcoins, for the moment at least, undoubtedly have a certain cool cachet.
Bitcoins do, however, have a dark side, including serving as the exclusive form of payment for the infamous online narcotics bazaar known as Silk Road. Ironically, the greatest testament to the viability of bitcoins may be the fact that the U.S. Department of Justice’s Silk Road prosecution has included the seizure of bitcoins.
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