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The Missing Ingredient to Bitcoin’s Legitimacy

Let’s face it. In this stage of the game, Bitcoin is an amazing and interesting anomaly. It came out of nowhere – it used to be worth of few fractions of a penny and now it is worth thousands of dollars. It makes for great online newspaper headlines and target of curiosity.
But, it may still have its fringes. It is a currency that favors most people who don’t want to be defied online. Who are these people? These are often those who are engaged in activities that are otherwise illegal– they can become easy to detect and track if they’re using a credit card or other real digital currencies. As a result, they turned to Bitcoin.

Thus, they can download child pornography, buy illegal drugs, take assassination contracts, arrange that websites taken out and all sorts of nefarious activities. Of course we exaggerate as the list of perfectly legitimate e-commerce players accepting Bitcoins is growing by the day. Still, you cannot ignore the fact, that Bitcoin is powerful mostly because it is untraceable, undetectable and nontaxable. That is the bottom line. And it is like the glue that keeps the global underground economy going. While there are many other copycat crypto currencies in circulation, the 800 pound money invested in the room in this of these crypto currencies is mostly because of Bitcoin. Yet, it still operates with a lot of stigma. Can you actually make money buying and trading Bitcoin? Probably. You might be able to beat inflation by storing some of your wealth in Bitcoin.

But, in terms of Bitcoin truly coming to its own, it needs to have a sort of regulation and that is what is missing in the Bitcoin marathon. In fact, it has a decentralized organization much like the way the internet is governed. Its legitimacy might skyrocket and it can do a good job providing people, the world over, with a means to circumvent central bankers. Central bankers, according to some orders are part to be blamed in the world problems – inflation, economic roller coaster rides, forced depreciation, you name it – this can be all traced to central bank. But, Bitcoin transcends central banks and central banks cannot control Bitcoin.

Unlike central bank created currencies like the US dollar, the Euro, the Yen and many others, Bitcoins have a fixed life – there is only a certain amount in circulation. If you’re hard drive crashes, or if you erase the Bitcoin, guess what – it’s gone forever. And value of the remaining amount of Bitcoin increases thanks to its anonymity and its intrinsic value, it becomes very interesting indeed.
However, the lack of a governing body is what truly holds it back from reaching its maximum potential. Unless people can get together in an anonymous and effective way, Bitcoin may be a big marginal player. Think of the coin as the drug dealer of the global currency market. Just as people depend on drug dealers to feed on their habits, these people also detest them.