That can happen. For now, Bitcoin remains by far the most popular decentralized virtual currency, but there can be no guarantee that it will retain that position. There is already a set of alternative currencies inspired by Bitcoin. It is however probably correct to assume that significant improvements would be required for a new currency to overtake Bitcoin in terms of … [Read more...] about What if someone creates a better digital currency?
It is a hen and egg state of affairs. For bitcoin's worth to stabilize, a big scale financial system must develop with extra companies and customers. For a big scale financial system to develop, companies and customers will look for worth stability. Fortuitously, volatility doesn't have an effect on the primary advantages of Bitcoin as a fee system to switch cash from level … [Read more...] about Isn’t speculation and volatility a problem for Bitcoin?
The deflationary spiral theory says that if prices are expected to fall, people will move purchases into the future in order to benefit from the lower prices. That fall in demand will in turn cause merchants to lower their prices to try and stimulate demand, making the problem worse and leading to an economic depression. Although this theory is a popular way to justify … [Read more...] about Won’t Bitcoin fall in a deflationary spiral?
Russian lawmakers have proposed new laws that seek to ban the use of bitcoin (BTC) and other cryptocurrencies in the country, local media reported. According to draft bills submitted by a group of deputies to the Russian parliament recently, individuals may face up to seven years in prison and fines of up to $7,000 for using BTC in financial transactions. People will also … [Read more...] about Russia Proposes Law That Criminalizes Buying Bitcoin With Cash, Offenders Face 7 Years in Jail
Chances are you hear the phrase “bitcoin mining” and your mind begins to wander to the Western fantasy of pickaxes, dirt and striking it rich. As it turns out, that analogy isn’t too far off. Far less glamorous but equally uncertain, bitcoin mining is performed by high-powered computers that solve complex computational math problems (that is, so complex that they cannot be … [Read more...] about What s bitcoin mining