A bitcoin’s value is deter­mined by the people. So long as people buy into the bit­coin market, the value of bit­coins and the market grow. Busi­nesses around the world are offering the vir­tual option right next to cash or charge, but as North­eastern Uni­ver­sity Pro­fessor of Eco­nomics Alan Dyer sug­gests, it’s not close to uni­versal — not yet.
“I think until it becomes, what I call, more a store of value asset, rather than a medium of exchange asset,” Dyer says, “the future of Bit­coin is a little fuzzy right now.”
Dyer says it’s a niche market. Some people think bit­coins are cool, some are rebelling against the gov­ern­ment and some are even using bit­coins to hide their money. Per­son­ally, he doesn’t think bit­coins will stick very long after those groups lose interest.
“I don’t mean to say that they’re friv­o­lous or shallow,” Dyer says. “I would call it a dig­ital curi­ousity, that’s given rise to some spec­u­la­tive behavior.” And there’s a taint now. Dyer says crim­i­nals are inter­ested in bitcoins.

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