The Daily Gamecock

Alternative currencies key for future

Bitcoin could solve country’s economic woes

As the U.S. economy recovers from the recession, many wonder what can be done to speed up recovery. And while the conversation has largely focused on things like what tax rates should be legislated, there are other important debates to be had regarding the basic fundamentals of economics: currency .

Until recently, the Federal Reserve System has had an enormous level of control over currency. However, this control is being weakened by the rise in popularity of alternative currencies, and this a very good thing. Just as competition in business is good for consumers, competition between currencies is good for the economy.

Alternative currencies, such as Bitcoin, give people the option of holding their money in a currency that, unlike the dollar, gains value over time. Things such as government bailouts don’t affect the value of alternative currencies the way they do traditional currencies like the U.S. dollar.

Besides being protected from inflation, alternative currencies have other benefits as well, such as privacy. Many alternative currencies operate through untraceable transactions. While untraceable transactions has the potential for abuse, they also allow legitimate and mutually beneficial transactions to take place between people that are sensitive about their information.

The more people that adopt alternative currencies, the more better they will be. The use of alternative currencies should be encouraged, not only for the individual benefits, but for how they help the economy as a whole.