Industry insiders believe that the Winklevoss Trust, the first exchange traded fund that deals with Bitcoin, will become SEC approved on March 11th. The Winklevoss brothers applied for SEC registration four years ago, and now that investors believe it will be approved the value of bitcoin has skyrocketed. So far this year the value of the Bitcoin has increased by 30% due to the likelihood that the Winklevoss Trust will become SEC registered as well as other bitcoin entities.
Powell, governor of the Federal Reserve warns against investing in this surging currency. He worries about the cybersecurity and privacy risks that are involved in using digital currencies. Powell acknowledges, “there may be important trade-offs between payment and privacy”, and warns users might not want to give up their privacy to the FED who would use that information to track the currency.
I agree with Powell that privacy risks should be a real concern, but I think the bitcoin is protected from cybersecurity attacks. Blockchain, the mechanism that protects bitcoin’s integrity should be a legitimate defense against cyber criminals.
http://www.reuters.com/article/us-bitcoin-value-idUSKBN16A2FG
http://www.reuters.com/article/us-usa-fed-powell-idUSKBN16A23G