As it falls in and out of public view, Bitcoin is once again all the rage. However, rather than just tech blogs and internet culture sites covering the cryptocurrency, more mainstream sites and esteemed financial analysts are now weighing in on the matter.
Instead of just providing yet another explanation of what Bitcoin is, though, analysts are now wondering why the pseudo currency has caught on, and why it’s not illegal. As it turns out, it’s not illegal because of that “pseudo” moniker.
First, if you’re wondering why Bitcoin is back in the forefront of the news cycle, that’s because it always does that. Bitcoin comes and goes, generally in relation to its value. Currently, one Bitcoin (BTC) is worth quite a bit of actual money, sitting pretty at $92. Once upon a time — just three years ago — it famously took 10,000 BTC to buy $25 worth of pizza. However, while the actual current value is a new height, the rise of the peer-to-peer cryptocurrency is not. The value of Bitcoin ebbs and flows, like real currency, though due to the nature of it, ebbs and flows much faster and more drastically. Just two years ago the internet was abuzz with news about the Great Bitcoin Crash, which only came one year after the famous pizza purchase.
Now, here we are again, marveling at the strength of the BTC, salivating over all the Domino’s pizza you can buy in exchange for Bitcoin through a third-party service. If you know your country’s currency laws, though — in that it’s illegal to start a new form of currency in many countries, including the US — you might wonder why the government hasn’t come down on Bitcoin in response to all of the recent exposure. In what will no doubt anger some fans of the digital currency, financial services lawyer Dan Friedberg says it’s because the government doesn’t view Bitcoin as a real currency. Zing.