[heading]What Will Come Of The Senate Hearing On Bitcoin? [/heading]
The meeting in Senate on November 18 will surely be historical, at the very least from Bitcoin’s perspective. Never before has the legislator gathered ’round in such a formal manner to discuss the darling of cyberpunks everywhere, the decentralized crypto-currency Bitcoin.
As they do so, Bitcoin is on the rise to $400, and perhaps even $1,500 by the beginning of the year. At the time of this writing, Bitcoin is at $350, according to BitStamp. (at the time of editing, $355.)
U.S. senators scheduled a hearing to discuss the future of the digital money and other virtual currencies, as well, to be certain. (WoW players hold onto your Gold!) The U.S. Senate Committee on Homeland Security and Governmental Affairs meets November 18 in order “to explore potential promises and risks related to virtual currency for the federal government and society at large.”
Just recently, members across multiple US agencies shutdown the drug bazaar Silk Road, only to find out just over one month later, a new one had risen. The Senate hearings, thus, will come as people are able to obtain drugs, guns and other illicit goods using bitcoins.
Since the Silk Road closure, bitcoins have doubled in price, as perhaps the Chinese are in buying frenzy, even maybe as high up as the Chinese government seeking some sort of Bitcoin Standard.
“Bitcoin is obviously getting a lot of attention from the federal government on the regulatory side,” says Nicholas Colas, an analyst at ConvergEx Group. “Given the involvement of the currency in illegal activities, that is entirely warranted. I expect these hearings to be largely informational, which is good for Bitcoin.”
The hearing will be called “Beyond Silk Road: Potential Risks, Threats, and promises of Virtual Currencies,” and invites witnesses to testify about the challenges facing law enforcement and regulator agencies when it comes to regulating virtual currencies. It will include perspectives from “non-governmental entities who can discuss the promises of virtual currency for the American and global economies.”
Bitcoin has, yet again, reached all time highs. But, as many people know, the all-time highs will last well after the current generation is gone. At present there are about 30 Bitcoin transactions per minute, and the average of those transactions are 16 bitcoins, according to report this week by the Federal Reserve Bank of Chicago.
So, what will come of the Senate Hearing on Bitcoin?
I don’t expect much to unravel from the hearing, but I do expect the hearing to bring greater understanding to the Senate regarding Bitcoin and other virtual currencies. I am particularly hopeful that Rand Paul will do the right thing.
Worst case scenario, the Senate announces sweeping legislation of virtual currencies, and in the weeks after the hearing new legislation appears: thousands of pages on virtual currencies. Best case scenario, the Senate announces a Bitcoin Standard and announces sweeping legislation to invest in Bitcoin businesses, and therefore save the world from utter destruction.