The banking system in the United States has come under scrutiny by people all over the world in the last year, particularly after reports that the NSA tracks not only telephone conversations and emails, but also the spending habits of the American people and businesses after their registration. As such, there is some speculation that Bitcoins may become the currency of the future. Is this really the case, however?

What are Bitcoins?

Bitcoins are something of a cryptocurrency because they are virtually untraceable and cannot be double-spent like traditional currency can. While Bitcoins are currently denominated in dollars, there is no reason that they have to be. The dollar is the US denomination because there are laws in place that define it, and laws can always be changed. The Bitcoins really aren’t a new thing, even though their registration is fairly recent. These are digital, much like the digital transactions that occur between consumers and businesses by the thousands every single day via bank wires and credit cards. However, Bitcoins provide a way for freedom-loving Americans to process transactions that cannot be tracked.

Who Can Accept Them?

While the federal government is cracking down on businesses that choose to accept Bitcoins after their registration (such as the shutdown of the Silk Road website), there is no law that says businesses cannot accept currencies other than dollars or their equivalent. The problem is that since they are still unregulated, they are accessible by terrorists, criminals and drug traffickers – pretty much anyone who wants to get away from leaving a so-called “paper trail” behind. It is anticipated that this activity is what will eventually lead to the monitoring and regulation of Bitcoins by the federal government, and while this truly is necessary to prevent acts of terrorism, it goes against everything that the Bitcoins stand for.

The Future of Bitcoins

Since the government is serious about cracking down on the use of unregulated currencies such as Bitcoins, the future looks bleak for those who love the idea. It is anticipated that they will eventually become regulated just like credit cards, electronic wallet service providers like PayPal and other similar transaction methods due to forced registration by the federal government. Of course, they won’t die completely. They will simply become an alternative form of currency for people who want to get away from the traditional dollar. The formation of new currency is simply a way for the American people to express their need to escape the scrutiny of groups like the NRA and have a more stable form of currency in the international markets.

With all of this in mind, are Bitcoins the future of money? The answer is unclear, but probably not. It must be considered that since unregulated currencies bring in a host of criminal activity, the federal government is going to step in and make sets of laws to govern them. This means that, in the future, even this will be able to be traced just as dollars after their registration with the government.

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