State University of New York Institute of Technology
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Fed will steer clear of bitcoin Ethics

The latest craze in money making has gone to the new internet currency bitcoin. Bitcoin has gained popularity over the tears to be used as a new form of money used in internet transactions. The problem currently is that the price of bitcoins is not stable and fluctuates with no known reason. Recently the largest exchange site for bitcoins, Mt.Gox, went down driving the price from $1,151 to $418.78. Normally this sudden drop of value is regulated by the Federal Reserve but in the case of Bitcoins it isn’t.

With no regulation by the reserve that means that bitcoins can be bought and sold at any price without having to follow the normal regulation of normal currency. That means that a common use of this unregulated money is for illegal sales such as for drugs. Websites like the Silk Road could use bitcoins to sell drugs without a true money trail behind it. This comes to the ethical dilemma of leaving bitcoin unregulated while letting it be used for illegal activities. The article that most of this information comes from also states that if any regulation was to occur that congress would have to due something to require it.

Source: http://finance.fortune.cnn.com/2014/02/27/bitcoin-janet-yellen/


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