Bitcoins: New Wave in Currency?

Posted July 21st, 2015 by .

Categories: Criminal Defense.

bitcoins anthony carboneWe think of automated teller machines (ATMs) as staples in modern day society.  They allow us to access and deposit cash in an extremely convenient fashion.  Is there another way to conduct money transfers?  Welcome Bitcoins, the new wave in currency.

What are Bitcoins?

Although it might sound as though bitcoins are a tangible item, they are actually a form of digital currency.  They are not minted coins or paper money produced by any government.  Instead, they represent private currency, created and used online for goods and services.  One of the concerns with bitcoins is that  pricing can change, and either rise or diminish in value after purchase.  Some enjoy the anonymity of bitcoins, while others are concerned that they facilitate unlawful transactions.  These include money laundering, tax evasion, and illegal drug traffic.

How to Buy Bitcoins

You do not have to go far to purchase bitcoins.  The first New Jersey Bitcoin Automated Teller Machine has set up right here in Jersey City.  According to a recent article, the machine is located in a local business in Journal Square.  Want to try the Bitcoins machine?  To use it, you first must sign up for an electronic wallet.  Then, you merely insert cash into the new machine to transfer bitcoins to your account.  You use the bitcoins to conduct business.  Wonder who accepts bitcoins as payment?  Check out this list of business entities, including Target, CVS and Amazon.

Although automated bitcoin machines are convenient and anonymous, there are other ways to purchase bitcoins.  There are private companies that will even allow you to use a credit card to buy the alternative currency.  Bitcoins can also be purchased and sold via money transfers.  To some, bitcoins are the cash of the internet age.

The Danger of Bitcoins

The first concern about bitcoins is that they are traded as a commodity and can change in value.  Unfortunately, bitcoins alliance with technology puts it at another risk.  The alternative currency is subject to hackers, which can mean invasion into personal accounts.  Hackers can also have enormous effects on the bitcoin price, as they buy and sell erroneous amounts.  There are even reports of Ponzi schemes associated with bitcoins.

What about Bitcoins Machines?  In recent months, we have learned of the theft of bank ATMs.  Is there a danger of the same with bitcoins machines?  Earlier this year, there were reports of the theft of two Bitcoins ATMs in Amsterdam.   Not only are the machines valuable, but they are also similar to standard ATMs as they contain cash inserted by bitcoins buyers.

We realize that this article is not our usual call to action to offer legal assistance.  Of course, if you are accused of criminal activity associated with bitcoins machines or purchase, we at the Law Offices of Anthony Carbone would like to help you.  We think it is important to keep our readers advised of local news.  Contact us if we can help you with your legal concerns.

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