I've been writing a lot lately on blockchains and how
blockchain technology intersects with the law. It's interesting
stuff.
Now I want to write a bit about digital currencies, particularly
since there are now encrypted digital currencies – like
Bitcoin – that are enabled by blockchain technology. If you
don't know what blockchain technology is, take a peek at
one of my earlier posts on the subject. (Just don't operate
heavy equipment or drive after reading. I won't be
responsible.)
It's important to compare and contrast digital currencies
with real currencies in order to understand digital currencies
properly. Examples of "real" currencies (often called
"fiat" currencies) we all know about are the Canadian
dollar, the euro, the British pound and the Mexican peso. Fiat
currencies are regarded as "legal tender" that no one is
generally permitted to refuse as payment in the countries where
they are legal.
