Senate Wading Through Bitcoin’s Benefits, Dark Side

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Nov. 18 (Bloomberg) -- Bloomberg chief Washington correspondent Peter Cook reports on today’s Senate hearing on Bitcoin in what may be the first step to legitimacy for the virtual currency and looks the large number of government organizations may be in charge of oversight. He speaks on Bloomberg Television's "Market Makers.”

Bitcoin?

It is not necessarily taking aim, at least not yet.

It is more a sign that the coin has arrived in washington.

There are two senate hearings over the next two days and they are informational.

They're looking for the risk and promise posed by online currency.

They're going to hear from supporters of the currency and people who are hoping to profit off of bitcoin.

Witnesses include these -- include patrick mark.

This is the day that bitcoin arrive.

It has gained legitimacy.

It is a payment system.

The digital economy is real.

It is going to provide vast benefits and opportunities for people come and not just here in the u.s., but around the world.

Lawmakers will hear from law enforcement officials who will detail how bitcoin is being abused.

Last month, the government shut down the website for drugs and other listed goods.

It is that dark side of bitcoin that has washington worried.

In their testimony today, law- enforcement officials will acknowledge the benefits from bitcoin.

They have no interest in shutting it down at this point.

Who is responsible for regulating bitcoin?

It is not clear.

It does not fit into the regulatory tag --. it is proposing to allow bitcoin as payment and federal campaign.

That would be a first.

Bitcoin is required to register with the federal government, but users do not have to at this point.

The irs is going to issues on its own guidance on how to treat virtual coin -- currency transaction.

It is a relief to know that i am not the only confused one out

This text has been automatically generated. It may not be 100% accurate.

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