Bitcoin is on everyone’s radar these days. Promises of a secure form of digital money are all the rage, and that can have an effect on gold news. However, like most new technology introductions, Bitcoin and other cryptocurrencies had some major stumbles in their early years: problems with user accounts, scandal and bankruptcies of exchanges (most notably Mt. Gox), accusations of criminal use for money laundering, and most recently countries stepping in with tightening regulations.
Growing pains are typical with new technologies. There are other arguments against the crypto-coins on very basic grounds. Traditionalists point at the lack of value underlying techno-money, saying that CPU cycles alone do not an asset make. Even fiat currencies have the backing of the “full faith and credit” of the country issuing them – which at the lowest level boils down to the power of governments to impose and collect taxes, and in extreme cases seize real property.