If you are reading this, unless you have been hiding under a rock recently, you are probably already aware that the price of
bitcoin exploded to new heights, hitting $750 overnight. That, apparently is
due to a surge in trading over in Asia as reported by CNBC
and also an expectation that the Senate hearings into digital currency, held by
US Homeland Security, will have a favourable outcome for bitcoin.
On that note, and as expected, much of the bitcoin news around today, is
related to those hearings of course and so far, according to Timothy B. Lee
at The Washington Post, it has been a bit of a bitcoin love fest.
The Senate Committee on Homeland Security and Governmental Affairs, chaired
by Sen. Tom Carper (D-Del.), is holding the first congressional hearing on the
future of Bitcoin. The first panel features senior figures from the Obama
administration. And their comments about Bitcoin have been remarkably positive.
After the officials gave their opening statements, Carper's first question
drew a parallel to the Internet. He pointed out that in the early days of the
Internet revolution, many people raised concerns about illicit use of Internet
technologies. Yet in the long run, he argued, the Internet has had a hugely
beneficial effect on peoples lives, making possible previously unimagined
services like Facebook and YouTube. Carper wanted to know if the witnesses saw
Bitcoin in the same light.
One of the people testifying at this week's hearings is Jerry Brito,
who believes if the US come down too harshly on bitcoin, it will go elsewhere.
In his piece for The Guardian, he looks at how the debate over the
growth of bitcoin hinges on US regulation and if they try to exert too much
control, the States will end up losing out to countries such as China and
Canada.
If the United States does
not foster a reasonable regulatory environment for Bitcoin, the country might
soon lose its head start in what could be the next great technological
revolution. That's the message policymakers should hear today and tomorrow when
the US Senate holds hearings on the virtual currency.
While Bitcoin is an international phenomenon, the
United States has been central to its growth to date. Bitcoin's lead developer,
Gavin Andresen, is an American based in the United States, as is the Bitcoin
Foundation that employs him. The most innovative startups building out
Bitcoin's infrastructure are also US-based. These include the merchant services
provider Bitpay in Atlanta, backed by PayPal founder and early Facebook
investor Peter Thiel, and the consumer-friendly wallet service Coinbase in
Silicon Valley, backed by early Twitter funders Union Square Ventures.
What these Senate hearings and price rise have done, if nothing
else, is suddenly push bitcoin into the spotlight in mainstream press. The
Telegraph in the UK published this article about the price surge and the hearings are also covered by Ryan Tracy in The Wall
Street Journal here.
In Australia, the Sydney Morning Herald mentions
how the Senate Committee have been told bitcoin is “a legal means of exchange.”
And, yes, all of the above, comment on the price
of bitcoin, which, you will now know
soared ahead of the hearings. When everyone starts talking about the new highs
reached, China usually comes into the conversation. This article on CNN by Stan Stalnaker explains why China wants to dominate bitcoin.
China is
quietly positioning itself to dominate the brave new world of Bitcoin.
Until
recently the digital cyrptocurrency was considered a joke by the financial
mainstream, but the view is starting to shift now that prices have surged above
their April peak and are now hovering around $600.
Bitcoins
are still being viewed cautiously by lawmakers and regulators in the United
States. In fact, there are two Senate hearings this week about the risks
Bitcoin poses. But that is decidedly not the case in China. There has been a
steady drumbeat of positive news in the Chinese press this year, including a
landmark report on CCTV, China's national television network.
China's
fascination with the currency upstart resulted in an estimated 40,000 client
downloads a day and a burgeoning acceptance rate from online retailers down to
physical traders standing in Tiananmen Square.
A very Senate hearing and bitcoin-price centric
roundup today but it’s what the world is talking about right now and I am not
sure that will change much this week!
