10 Pages Posted: 25 Jul 2014 Last revised: 14 Aug 2017

Date Written: 2014

Abstract

Bitcoin is making near-daily headlines, whether about its volatile exchange rate, the regulatory issues is raises, or its criminal associations. As the public becomes familiar with the idea of virtual currencies, many people struggle to understand why users exchange government-backed (“real”) currencies for Bitcoin. This paper explores the appeal and danger of investing in Bitcoin for speculative gain, for moral purposes, for its spending power, and for its criminal applications.