Ben Dickson

Ben Dickson is a software engineer and freelance writer. He writes regularly about business, politics and technology. Follow him on twitter at @bendee983

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Why is bitcoin despised by governments and popular among hackers?

Sep 23, 2015 — Ben Dickson

Ever since its advent, bitcoin has been the center of much debate and controversy. Its features and nature make it a phenomenon to be both appreciated and feared. For those of you who might not know what it is, bitcoin is a digital currency “coined” in 2009 while the financial crisis was raging. Its creation was centered on the idea of taking the power out of the hands of bankers and governments by allowing people to make digital payments in a peer-to-peer fashion without the involvement of a third-party broker. It works as simple as installing a “digital wallet” application on your computer or smartphone, through which you purchase bitcoins from exchange hubs or make transfers to and from other users.

Governments and financial institutions are in general mistrustful of bitcoin. They consider it a rogue currency because they have no control over it and it is subject to no regulation, and they fear that it opens up opportunities for users to conduct illegal activities, including tax evasion. Bitcoin is not backed by the FDIC.