Bitcoin Explained

Last week New York State started looking into Bitcoin, this week the Germans have recognized it as a private currency.  But just because government entities have heard of the decentralized digital money doesn’t mean they understand it.

George Mason University’s Mercatus Center tries to help make sense of it all for lawmakers, regulators, and/or people wondering how compatible Bitcoin is with their stuff-it-in-the-mattress savings strategy:

A new Mercatus Center at George Mason University study addresses many of the common misconceptions about Bitcoin and describes how the digital currency works. The study also analyzes current laws and regulations that may already cover digital currencies and warns against preemptively placing regulatory restrictions on Bitcoin that could stifle this new technology before it has a chance to grow. In addition, the paper gives policymakers several recommendations on how to treat Bitcoin going forward in a way that helps the free market and provides clarity for law enforcement.

The paper is available in digital form here.


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