Digital Currency

By Kerry Lutz

I confess to being a Bitcoin (digital currency) skeptic. I had an opportunity to get in on the ground floor when the digital alternative currency was trading at just $7 per Bitcoin, but didn't bite. Today, the exchange rate hit $400. Trading Bitcoin is not for the faint of heart. Daily fluctuations of 25% or more are not uncommon. For those not in the know, the currency is open source, the number of units issued is fixed and those who hold it are anonymous. Many misconceptions about it continue, which is hampering its adoption. Governments are extremely hostile to its acceptance as money.  No surprise there. It's not like you expect the Federal Reserve to welcome alternative currencies with open arms. [more...]