Do you think virtual currencies should exist in the first place? If so, should they be regulated at all, especially by USA, or be left as a free market?
I think virtual currencies should be regulated. The use of virtual currencies has spread across the globe, and many people have invested in bitcoins. Right now, the value of bitcoin is highly inflated, rising at surprisingly high rate. If there is no regulation, eventually it will crash and all those people who have invested in bitcoins will suffer greatly. If enough of the global population invested in bitcoins, this could in return cause the real economy to suffer. Therefore, I think the US government should try to regulate the prices of bitcoins.
Bitcoin is like other common goods, except Bitcoin has no physical form or use. The reason behind its rapid growth in value is due to the fact that other people might use it. The mere fact that other people are willing to invest their savings into this virtual currency lures more users into investing in Bitcoin. Most users are fully aware that Bitcoin is considered a high risk investment and a giant bubble waiting to pop, but they continue to invest in the hopes of acquiring huge profits. Not only this attitude towards Bitcoin is alarming, but Bitcoin itself had proven not reliable in the past. In the three years that Bitcoin came into existence, its exchange sites have been hacked at least six times, and nearly 15.1 million USD have been either lost or affected. Government regulation in Bitcoin is strongly recommended, however, those who use Bitcoin will oppose simply because the virtual economy will be more stable thus less profit will be generated. Without government regulation, the highly inflated Bitcoin will eventually crash and creates a recession.
I think virtual currencies should be regulated. The use of virtual currencies has spread across the globe, and many people have invested in bitcoins. Right now, the value of bitcoin is highly inflated, rising at surprisingly high rate. If there is no regulation, eventually it will crash and all those people who have invested in bitcoins will suffer greatly. If enough of the global population invested in bitcoins, this could in return cause the real economy to suffer. Therefore, I think the US government should try to regulate the prices of bitcoins.
ReplyDeleteBitcoin is like other common goods, except Bitcoin has no physical form or use. The reason behind its rapid growth in value is due to the fact that other people might use it. The mere fact that other people are willing to invest their savings into this virtual currency lures more users into investing in Bitcoin. Most users are fully aware that Bitcoin is considered a high risk investment and a giant bubble waiting to pop, but they continue to invest in the hopes of acquiring huge profits. Not only this attitude towards Bitcoin is alarming, but Bitcoin itself had proven not reliable in the past. In the three years that Bitcoin came into existence, its exchange sites have been hacked at least six times, and nearly 15.1 million USD have been either lost or affected. Government regulation in Bitcoin is strongly recommended, however, those who use Bitcoin will oppose simply because the virtual economy will be more stable thus less profit will be generated. Without government regulation, the highly inflated Bitcoin will eventually crash and creates a recession.
ReplyDelete