Cryptocurrencies and the Anonymous Nature of Transactions on the Internet

Bitcoin is a digital cryptocurrency, meaning that it is a currency that is not backed by any government, uses cryptography for security and is difficult to counterfeit. Bitcoin’s popularity stems from the fact that it has little regulation and affords some degree of anonymity in transactions. Bitcoin currently has little governmental regulation but greater regulation is expected, as Bitcoin has come under scrutiny from federal regulators because of its role as a medium of exchange for illicit activities and the high degree of anonymity it gives users. Some proponents of Bitcoin welcome regulation, but others feel that it inherently goes against the liberatarian aim of a cryptocurrency