In the wake of the Bitcoin price crash of 2014, Bitcoiners began buying and selling goods and sending Bitcoin back and forth across the globe.
But as of last month, they were faced with a shortage of supply and a lack of trust in their currency.
“Bitcoin is a very risky currency, and you need to trust your currency,” says one Bitcoiner, who asked to remain anonymous.
“You’re trusting the exchange rate to fluctuate.
It’s a lot like the Internet.
There’s a good amount of speculation, and there’s a little bit of fraud.
But I think you need a little more trust.”
Many of these Bitcoiners were frustrated by the price of Bitcoin and its potential to be used as a currency to buy illegal goods and to transfer money across borders.
But while many Bitcoiners are frustrated with the volatility of the price, many also believe that Bitcoin can become a safer and more secure alternative to the US dollar, the world’s dominant fiat currency.
The Bitcoin price crashed last year, but it didn’t affect Bitcoin’s ability to get a hold of new users, the people who use it most.
“We’re seeing people switching to Bitcoin, especially in Europe,” says Michael Vos, cofounder and CEO of digital currency exchange Bitpay.
“The people who were buying Bitcoin are switching to bitcoin, because of the volatility.
But we also see more people who are buying Bitcoin because they’re worried about it being used for terrorism or drugs.”
Vos says that in the US, the US Dollar is the dominant fiat monetary system, and people who buy Bitcoin for illegal purposes have more of a choice.
“In the US the government wants to control the currency, so people are buying bitcoin for a different reason,” Vos explains.
“They’re buying it for the same reason that they were buying it in the past.
They want to buy something that they can trust.”
But Bitcoin’s volatility and its lack of widespread acceptance as a store of value have raised concerns about its long-term viability as a safe haven for the virtual currency.
While there’s no central authority regulating Bitcoin as a financial instrument, the exchange is regulated by the U.S. Commodity Futures Trading Commission (CFTC), which has a policy of banning any currency or asset that has been used as “a medium of exchange” within the U!
S. since 2006.
The CFTC’s enforcement has been limited, though.
In 2016, it issued a report concluding that Bitcoin was a “strategic investment” for the CFTC.
But in 2018, the CFTF released a report that found that Bitcoin had “no clear market impact” and that its use as a “store of value” is limited to “a limited number of high-risk activities, such as the transfer of money from one person to another.”
And in January 2019, the FTC announced it would be expanding its oversight of Bitcoin to include the use of “virtual currencies.”
However, Bitcoin has not yet been formally recognized by the CFTA.
“It’s kind of a wild goose chase,” Voos says.
“There’s a lack and a lot of speculation about Bitcoin.”
In February, Vos and his cofounders, Michael Antonov and Alexei Vovanov, released a proposal for an online platform that would make it easier for Bitcoiners to trade virtual currencies for real goods and other goods and the services they need.
The platform would be built on the Bitcoin blockchain, which is an open source and decentralized ledger.
Unlike other blockchain systems, the Bitcoin protocol doesn’t have a set of rules or consensus rules.
“As soon as we start to develop a product that is going to be really useful to people in the world,” Vomans says, “we’ll get regulatory approval and we’ll be able to start shipping it.”