Why bitcoin could fail

As the virtual currency goes mainstream, many of the reasons why investors embrace bitcoin could go away. By Sanjay Sanghoee FORTUNE -- Every few years the world of technology witnesses a revolution, the next big development with the potential to change how we function and to spawn a highly profitable new industry. There's been the explosion of personal computers, followed by the Internet, smartphones, tablets, cloud computing, and other large and small disruptive technologies. The latest such game-changer seems to be the arrival of virtual currencies, personified by the biggest player in that arena: bitcoin. On the surface, bitcoin seems like a great idea and maybe an inevitable one. Bitcoins (the actual units of this virtual currency) are a form of electronic money that can be traded directly between parties; do not require the physical backing of gold, dollars, or any o...

Full article: http://finance.fortune.cnn.com/2014/01/24/why-bitcoin-cou...

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