A Bitcoin backlash?

October 15, 2013

Governments and established financial institutions are likely to launch a campaign to quash the decentralized digital currency Bitcoin, according to a leading economist and academic. Simon Johnson, a professor of entrepreneurship at MIT’s Sloan School of Management, expects Bitcoin to face political pressure and aggressive lobbying from big banks because of its disruptive nature, MIT Technology Review reports.

The code that supports and regulates the Bitcoin network is built into the software needed to use the currency. It works in a distributed network across the Internet to confirm transactions and prevent counterfeiting. Adding to the mystique, the technical expert or experts who developed the Bitcoin protocol are still unknown.

After several years as a nerdy curiosity, the currency has recently gained momentum as a legitimate means of payment. Many Bitcoin-based businesses are springing up, some backed by major Silicon Valley venture capitalists.