Published Mar. 15, 2014, in the Waterloo Region Record.
Recently, the news has been filled with stories about Bitcoin, a type of open-source digital currency that basically functions like money, but without any of the usual regulatory strings attached to regular currency.
Bitcoin is not managed by any government or central bank, but instead is controlled by all of its users in the marketplace. Much like regular money, the value of Bitcoin depends on a number of factors, including supply and demand, and the security of the currency and of the market.
Digital currency offers a number of important advantages. The primary one is that transactions occur directly between purchasers and sellers without having to go through a third party. As such, digital currency transactions are fast and cost substantially less in terms of processing charges and fees.
Recently, the Oglala Lakota Tribe in the United States became the first aboriginal group in North America to launch its own digital currency, the MazaCoin. Much like Bitcoin and other crypto-currencies, MazaCoins can be owned by anyone and can be used to purchase goods and services from any person or business that is willing to accept MazaCoin as payment.