Another vocal proponent of Bitcoin is Donald Norman, the co-founder of Bitcoin Consultancy, which advocates for Bitcoin's regulation and works with retailers to help them incorporate Bit coins. He blames the slew of negative media about Bitcoin on a lack of information about how the "currency" is distinct from the storage and trading of it. He says the theft of $500,000 of Bitcoins from one user has nothing to do with the currency's security, and everything to do with the firewalls on that user's computer. Bitcoins' bank account is your computer — and you're responsible for keeping it safe. But unlike a regular bank, there's no FDIC to protect your assets.

Norman is pushing to bring Bitcoin away from its roots and closer to a traditional currency — he is reaching out to regulators, looking to get legislation to oversee the system. He wants to create a system of accountability for Bitcoin, which would help protect assets if an exchange is hacked or a firewall penetrated. And yes, he even wants fraud protection.

The big question is if Bitcoin is successfully brought to the mainstream — with accountability and regulation — will it still have its appeal? Regulation and central oversight would quite likely bring with it some costs, which means the frictionless Bitcoin system — the ability to do transactions with incredibly low fees — could change. We'll see if Norman's plan works, and in the meantime, how the value of the currency fares as it battles with attacks from hackers and senators.

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