Why Bitcoin Came Out of the US Government Shutdown All the Better

bitcoin, bitcoins, US Government, shutdown, Silk Road, FBI, America, Thailand, Money, Currency, Virtual Currencey, Payment Technology, Payments,

It was only last week that the world was staring the greatest financial crisis it's ever seen right in the face. The US government had gone into lockdown, and a default on their spiralling debt ceiling was ever approaching.

While now, a week on, we know that they've pushed that cursory ceiling ever higher and come out of the shutdown, the real victor in this entire situation has been the bitcoin – its relevance looking even stronger than before.

Why you ask?

Well, thanks to its decentralised nature where no government or individual controls it, it's generally a safe currency that can't fall to the problems that the US dollar could have been facing.

It may still not be widely accepted as a currency around the world, but the same thing could be seen when Cyprus was in financial trouble earlier this year. Individuals were investing their money into the currency as it was far more certain than the banks and physical currency.

Of course, things aren't perfect in the bitcoin world – especially after the FBI shut down questionable marketplace Silk Road and seized millions in bitcoins. But it always manages to bounce back as those bitcoins will circulate back into the market and other, smaller, merchants will crop up and fill the hole of Silk Road without gaining the same notoriety – thus letting Bitcoin clean up its image.

There is still a fear that governments could just outlaw bitcoin outright, something that Thailand appears to have tried – and the US has thought of in the past – but in recent months those fears have subsided a little.

Still, during the US government shutdown, the value of bitcoins rocketed back up to a five-month high, going for nearly $156 each.

If anything this shows that bitcoin is still growing and financial fears around the world are only helping make it stronger.

 

[Image: antanacoins - Flickr]

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