The exploding popularity of Bitcoins and other crypto currency is a matter of concern and intrigue for all economists.
One of the USPs of the Bitcoins for example is the ability to move it from one holder to another holder in about 10 to 15 minutes while international Bank transfers may take longer time.
Also Bank transfers are often revoked several days after the recipient is notified of the receipt while Bitcoin transfer is irrevocable. There have been many frauds committed only on account of “Chargebacks” and revocation of payment orders.
The other advantage of the use of Bitcoins for payments is the absence of transfer charges as against the exorbitant charges collected by Banks.
Lack of central authority or peer to peer nature that is under the control of politicians is said to be another positive feature of the cryptocurrency systems
If economists therefore are envious of the popularity of Bitcoins and are afraid of its power to destabilize the monetary regulations, there is perhaps a need to look at some monetary reforms that take away the consumer advantages enjoyed by cryptocoins.
Perhaps the “Mintchips” concept of the Canadian Government is an attempt in this direction which other monetary authorities may take a serious look at.
Naavi
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