Your question comes at a time when cryptocurrency is a hot topic in banking and government circles. Indeed, the Treasury Department views cryptocurrency as potentially leading to economic instability due to increased fraud risk in the absence of sufficient government regulation. The Washington Post reports:
“The Treasury Department will warn the White House that cryptocurrencies could pose significant financial risks that outweigh their benefits unless the government rolls out major new regulations, according to two people familiar with the matter.”
I speak with DC political types all the time, and I can tell you that a good percentage of them do not know what cryptocurrency is, let alone how to regulate it. Sometimes I wonder if they only just recently figured out how to send an email. Several of them are oblivious to how the Internet works, so I suppose they think it works by magic.
But, there is no mystery to cryptocurrency. It’s not magic.