Digital Underground

Bitcoins can be confusing. They have been around for awhile now, and this week in New York a plan was proposed to protect consumer rights where Bitcoins are concerned. There’s still a lot of mystery surrounding this new currency, or faux currency as some see it. Bitcoins are basically virtual currency. They are not backed by any federal bank, so they are seen as risky. Bitcoins are the first invention in what is known as cryptocurrency: the exchanging of money online through a secure information economy. Some retailers are already accepting bitcoins as a way to pay for goods, and it sounds like the technology is on the verge of breaking through to the more general public. If the New York Department of Financial Services gets their way, there will be consumer protection when using Bitcoins. This would be a big step in the digital money world. Now the rest of us just need to figure out what it all means.

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