What Is the Future of Money?

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Dec. 11 (Bloomberg) -- MIT Technology Review Business Editor Antonio Regalado discusses the future of money in a digital world with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

She is with matt miller and i. joining us from cave -- cambridge.

Matt has been reporting on the 12 days of bitcoin.

I do not know if you have seen any -- of my fine cali's reporting -- reporting on how people keep sending him bitcoins.

How do you feel like it coin stacks up to competitors?

The price keeps going up.

It was at about $1000 today.

Bitcoin is a currency put on the internet anonymously and is starting to take off.

It is looking to go mainstream.

A lot of investors are interested.

It is as much a casino as it is a currency.

Very unpredictable.

Quest you are on the third day of 12 days of the klein.

Quest i have been -- i have gotten so many questions, and influx of questions on my twitter account.

I am explaining to people the basics of how it works.

I do not need to take you or antonio through that right now.

He makes a good point.

It has been volatile and i have heard from a lot of people who are big players.

The president of paypal himself, david marcus, has said, right now, it is more of a commodity and they think of it as more of an investment opportunity than a currency.

Both of them think it will get there eventually.

It is just in the early stages now.

Cracks are digital currencies here to stay or will they become mainstream?

What is a digital currency?

Is a credit card a form of it?

There are a lot of ways to transfer money digitally.

I think we're just going for bitcoin and competitors.

Quest the idea is i should be will to trans word value to you and anybody else instantaneous we thought all these intermediaries.

It is a great idea, the kind internet entrepreneurs really like.

There are obstacles.

What are they?

What are the obstacles?

Obviously, for people who want to get involved with it right now, you have got to educate yourself and it is not as easy as 123. what do you think long- term over the next years or decades, the obstacles are?

A great question or at one of the huge ox goals is the security of bitcoins.

Today, an article about a guy who lost his hard drive on that -- with the coins on it and then went to the dump and he lost it.

To get your bitcoins, you still have a password or key.

It is something you have to write down and people can and are stealing it.

It coin heist, losing bitcoins, it is a problem.

It does not happen with credit cards or bank because banks are insured and credit cards, if there is fraud, they are liable.

Quest putting $6 million, if you had it in cash, for example, in one place, would be silly.

Friday, we will go through this.

There are a number of different ways to keep bitcoins say.

Off-line while it's. if you have $6 million, you should diversify a little bit.

Anybody looking for invest in, i want to bring you back in on services.

There are tons of services, bitcoin ecosystem, and the idea is to kind of reduce some of this volatility.

Will that help digital currency payments become more mainstream.

It definitely could there there is a company, a second- generation bit line companies.

They are working with the kind -- bitcoin or things like it to improve the parts that are not working as well.

A lot of people want to see digital currencies.

You mentioned the wallah, another company.

More conventional, it wants to simplify bank transfers.

The result would be, digital money you could easily share and share from your mobile phone.

That is what people are looking at.

They are asking whether money is not of my phone and why can i not send it easily to anyone i want.

One of the advantages of bitcoin over that and other systems is that, you could transfer value from one prison to another anywhere in the world with no intermediary and very little, unemployed and amounts of transaction cost.

At some point, is there a tipping point?

How do we get to it where people are starting to accept it more and demanded more, rather than paying a $20 wire fee or working with the currency that has a central bank controlling it?

That is one of the great things about bitcoin.

It makes us think about what money is.

Money is a brief -- believe system.

We believe it will hold its value.

The volatility in the bitcoin price is totally related to how many people are believing it.

As more people get involved, the price keeps going up here it is fascinating.

It has to do with confidence in these currencies and it has to do with whether people believe they are secure.

The more people believe it, these things have a chance of really taking the chance of cash and credit cards.

I would guess people at m.i.t. have a higher concentration of it coin users.

Would that be the case?

It maybe.

M.i.t. is the place you walk around and people are wearing google glass, a lot of nerds and proud of it.

I went to the bitcoin meet up and founded on the internet and went up today for at 6:00 p.m. of the computer science building a manic -- and i could not find the meet up.

Bitcoin remains mysterious.

I cannot actually find them.

Cloak and dagger.

Thank you very much.

Joining us there, business editor at m.i.t. tech review.

And matt miller, with the 12 days of the coin.

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

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