September 04, 2012

Advocates of Bitcoin were surely elated to hear the virtual currency has gone mainstream -- at least a little. New Hampshire state Representative Mark Warden, a Republican, announced recently that his campaign is accepting Bitcoin donations.

The campaign has this to say about the e-currency:

"This is a cutting-edge technology that is market based, voluntary, and extremely innovative. I have constituents and vendors who prefer this medium of exchange, so it’s natural to want to respond to the marketplace,” said Warden.

Bitcoin allows users to make transactions with an alternative, decentralized form of currency that is not subject to the inflationary whims of the Federal Reserve or other central banks."

Bitcoin enthusiasts are usually very vocal about its value of not being associated with any central bank. It has steadily gained popularity since its release in January 2009, but it's not all positive news. According to one report while the number of Bitcoin transactions per day has increased roughly 400 percent since May, there have also been an increased number of "Madoff-esque" ponzi schemers luring Bitcoin users with "High Yield Investment Programs." In many ways, the increasing presence of Bitcoin scammers is even better proof of its potential mainstream acceptance than any politician's announcement.

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as ...