When CNN wrote recently, “Bitcoin, a virtual online ‘currency,’ seems to be gaining traction and legitimacy among those who need to transfer or launder their cash outside of the prying eyes of regulators,” they were elevating convenient prejudices over reality. For, although the prying eyes of regulators are something most people would rather avoid, the destructive policies of central bankers lead people to alternatives that may attract those eyes just the same. CNN referred to Bitcoin as “sketchy” and in so doing used a technique of identifying anything outside the purview of official transactions as “black market,” “gray market” or otherwise shady. The press outlet whittles Bitcoins’ userbase down to Iranians, hit men and drug dealers and others “who prefer to be paid in an untraceable currency.”
Flip that statement on its head, and what is it Bitcoin users prefer? A banking system in which every little thing they do is not scrutinized and reported.
Bitcoin is swiftly becoming a legitimate instrument on the fringe of the dominant financial world, as people the world over turn to the system for its practicality and convenience—and, let’s face it, security. You’re not going to get much of that from the Western-based financial system, and that’s no lie. According to the FDIC website:
From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction accounts are fully insured, regardless of the account balance and the ownership capacity of the funds. This coverage is available to all depositors, including consumers, businesses, and government entities. The unlimited coverage is separate from, and in addition to, the insurance coverage provided for a depositor’s other accounts held at an FDIC-insured bank.