Paul Krugman – Caricature (Photo credit: DonkeyHotey)
Bitcoins are a new take on money. Generated and processed
in some arcane fashion by hackers, these “coins” have no government or commodity backing up their value, only user confidence. Not surprisingly, their value has varied widely, with frequent, dramatic ups and downs. Another new feature: supposedly they’re untraceable – you have to trust the hackers on this point – a form of digital cash leaving no payment trail, unlike credit cards, bank transaction, or PayPal. Other than speculators riding those ups and downs, the only users I’ve read about to date have been criminals.
Unsurprisingly, Paul Krugman does a far better job discussing this fascinating new world:
The Antisocial Network of Bitcoins – NYTimes.com.
English: Chart showing rapid rise and fall in price of bitcoins. (Photo credit: Wikipedia)
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- As Big Investors Emerge, Bitcoin Gets Ready for Its Close-Up – NYTimes.com (dealbook.nytimes.com)
- Will Bitcoins Make Me Rich? (slate.com)
- Cryptocurrency and Your Virtual Wallet (mi021.wordpress.com)
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