Spirit Magazine - April 2014 - (Page 66)

Business energize Extended Stay Reimagined Being on top of your game requires energy. That's why Element offers everything you need to stay active and at your business best on the road. Discover all of the essentials of balanced travel. Book now for 20% off elementhotels.com ©2012-2014 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, SPG, Element and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its afﬁliates. For complete terms and conditions of this offer, please visit elementhotels.com Finally, there's the fact that Bitcoin is a decentralized currency with no connection to a government. Williams has fundamental issues with this point, and in his testimony at the New York State Department of Financial Services' hearings on the regulation of virtual currencies held in January, he emphasized how the dollar took centuries to earn respect and still relies on a sound central bank, regulation, and enforcement, while Bitcoin has none of that. "Economies are driven not by math models and equations, but by people," he says. "Bitcoin still has a long way to go before it should be relied upon as a mainstream means of transaction or even for investment speculation." It does appear that regulation is inevitable, and there are moves to clarify how both state and federal rules apply to virtual currency. In that vein, Benjamin Lawsky, the superintendent of New York's Department of Financial Services, recently announced plans to "adopt enhanced consumer disclosure rules, capital requirements, and a framework for permissible investments with consumer money." DON'T BLINK As Williams says, "In Bitcoin world, a week is equivalent to a decade in real life." To illustrate that point, consider what occurred over several weeks in early 2014. There was the perplexing disappearance of Mt. Gox; Charlie Shrem, founder and CEO of early Bitcoin player BitInstant, was arrested for laundering money for users of an Internet black market called Silk Road; Russia followed in China's footsteps by declaring Bitcoin illegal; and the price of 1 bitcoin dropped from around $1,000 to about $550. The instability, coupled with its unheard-of price spike (the price of 1 bitcoin this time last year was roughly $34), has convinced Williams that Bitcoin is in a soon-to-burst bubble. Imagine the money to be saved if merchants didn't have to pay fees, or if you could circumvent a bank when sending money. But Brito says the volatility will subside as more people engage with it. "It's volatile because it's a small economy; one trade or a news story can send the market moving." He says it's important to remember that Bitcoin is a platform, and soon "someone will build a killer application" for it and the technology "will be widespread," in part because it's cheaper and faster than debit and credit cards. Imagine the money to be saved if merchants didn't have to pay transaction fees, for example, or if you could circumvent a bank when sending money to your Dutch uncle. As for other potential uses, some believe there are many, though it's too soon to know exactly what will pan out. Maybe Ben Bernanke sums it up best. In a November letter to Congress, he wrote, "while these types of innovations may pose risks related to law enforcement and supervisory matters, there are also areas in which they may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system." That we can buy into. Jill Coody Smits is an Austin, Texas- based journalist. Find her online at blueseedcommunications.com. http://www.elementhotels.com http://www.elementhotels.com http://www.blueseedcommunications.com http://www.elementhotels.com

Table of Contents for the Digital Edition of Spirit Magazine - April 2014

Spirit Magazine - April 2014
Contents
Gary’s Greeting
Gary’s Greeting en Español
Star of the Month
Freedom Story
From the Editor
Your Words
Your Pictures
Media Center
Eat Drink Sleep
Rustle up ribs
shake up a summer sipper
Wise Guide
Take better snaps
Make finance a family affair
Numbers
Make time for sweets
Learn from the Bard
Business
Zen out with Russell Simmons
Store more on your iPhone
Chasing Beautiful Questions
Connection Error
Get out of your social comfort zone
Your Adventure In Santa Fe
Destination Texas
Calendar
Fun!
Spotlight
Community Outreach
Products & Services
Flight Service
Terminal Maps
Information
Rapid Rewards and A+ Rewards Partners
Route Map
The "If" List
Touch base with Tracy Morgan

Spirit Magazine - April 2014