Bitcoin Hearings Day 1: Bitcoin Hits 'Tipping Point' with New York Regulators

Bitcoin Hearings Day 1: Bitcoin Hits 'Tipping Point' with New York Regulators

The full video of the 28th January New York bitcoin hearing can be viewed here. Stay tuned to CoinDesk for more updates on today's hearing, and be sure to follow us on Twitter for live tweets. Fear, uncertainty and doubt (FUD) is a term often used in bitcoin circles to describe feelings about the prospect of regulation concerning virtual currencies, and there may be no better phrase to convey the mood at the start of the New York Department of Financial Services' (NYDFS) first day of public hearings on virtual currencies. Following a prolonged and palpable excitement in the boardroom, an....


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Quotes

While the sheer difficulty of mining assures Bitcoin users that there won't ever be a massive supply shock in the digital market, the way that Bitcoins are created causes one enormous problem. Primarily, it incentivizes miners to hoard the currency upon receiving it. This is one of the main causes of Bitcoin's price volatility (it's estimated that up to 25% of Bitcoins mined have never even entered the marketplace). The only way to alleviate this issue is to mandate that miners have to exchange all newly-mined Bitcoins for another currency of their choice. Otherwise, volatility will end up killing this currency's potential, and a group of Bitcoin miners will control the supply. Is that really any better than a central bank?

Jake Mann, Editor on Insider Monkey, Financial Professional