Many remain wary of the Bitcoin market. A series of highly publicized Bitcoin “thefts” by hacking groups have left even Bitcoin veterans with concerns about the security of the online storage systems, referred to as “wallets”, used to house individual’s stores of the currency. Many national governments also fret over the “untraceable” nature of the currency, fearing that the surge in value may be bolstering the holdings of illicit drug dealers or terrorist organizations. Traders should look out for further attempts by national governments to regulate Bitcoin markets, as some fear that a successful attempt to do so would remove the novelty from Bitcoins as an instrument and pop what many see as an overvalued commodity bubble.
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William Randall
KOTM Contributor
wrandall1@luc.edu