Apr 20, 2018 1:30 PM
PT States and the federal government are increasing their scrutiny of cryptocurrencies in an attempt to bring more transparency to a market where buyers and sellers are anonymous and regulatory oversight is light. Cryptocurrencies such as Bitcoin, Ether, LiteCoin, and Ripple skyrocketed in value last year as investors sought to get in on what many see as the future of global currency – one that for trade and commerce knows no borders.
Bitcoin generated massive hype among investors as its value surged more than 1,900% to nearly $20,000 last year, before tumbling back down below $11,000. Today, it’s valued around $8,500.
Earlier this week, New York Attorney General Eric T. Schneiderman launched a fact-finding inquiry into the practices and policies of cryptocurrency exchanges – the online platforms where cryptocurrencies are bought and sold. Cryptocurrencies are created on blockchain distributed ledgers, peer-to-peer (P2P) electronic networks that are also used to dispense payments for all kinds of ecommerce.
Those open P2P networks operate with no central authority, such as banks or governments. And the marketplace can be highly speculative and volatile.
“Currently, as it stands, cryptocurrencies are not really regulated and I am not seeing that change any time soon,” said Marco Peereboom, new systems development lead at Decred, an open-source, blockchain-based cryptocurrency similar to Bitcoin. “The real fear is that government will try to turn cryptocurrencies into what cryptocurrencies were designed to resist, but crypto is a global technology and no amount of regulation can stomp it out,” Peereboom added. Read more from computerworld.com…
thumbnail courtesy of computerworld.com