Bitcoin: Seven reasons to be wary

The bitcoin logo
(Photo credit: Wikipedia)

By Maria Korolov – Of all the virtual currencies out there, BitCoin is the most interesting from a technical perspective – and the least interesting from the business point of view. BitCoin is a peer-to-peer virtual currency that uses cryptography to control the creation and transfer of money.

Many BitCoin enthusiasts are attracted by BitCoin’s independence, and the fact that its value comes directly from its network of users. But aside from its status as a technical marvel, it has little practical benefit for business users or consumers. Here are seven reasons why.

• Nobody has to accept it
• No critical mass
• No switching costs
• There’s nobody to police it
• There’s no real need for it
• It’s volatile
• BitCoin is unfair

BitCoins are created when users run complex algorithms on their computers, with fewer and fewer BitCoins generated as times goes on. more> http://tinyurl.com/czpj8wf

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