What makes a Currency? -- The Bitcoin Phenomenon
As the digital crypto-currency known as Bitcoin enjoys growing acceptance and popularity in the mainstream digital economy, policymakers, regulators, law enforcement, and consumers will make important decisions regarding the role of this new medium of exchange in the international financial system. Some of this work has begun, and the policy decisions are decidedly mixed. The near-term history of bitcoin will play out at the confluence of consumer preference, regulatory oversight, monetary policy, and law enforcement strategies. Whatever the outcome, the Bitcoin phenomenon promises to bring important changes to the way we transmit value, and to the work of the middlemen who own and operate the infrastructure of the legacy financial system. For entrepreneurs and executives the digital currency phenomenon presents a new set of opportunities and questions. Decisions regarding the acceptance and use of digital currencies may become critical to the success of smaller enterprises trying to create or grow markets for their products and services.