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For many people the thought of using an online e-currency can be a scary thing. We have all heard the horror stories of people being scammed and money being stolen by dishonest companies, but there are some companies out there that have worked hard to build up a good reputation for being honest and do what they can to fight frauds and scams that use e-currencies. The alleged problem is that when bitcoin surges in value people stop spending. What…

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On BTC-e, the exchange rate between bitcoin and USD dropped from 124 to a low of 75 in a period of two hours, and on MtGox, the exchange rate dropped from 139 to a low of 110 in the same period of time.

I have to be honest. In a perfect world, I would not even be considering using Bitcoin. I do not match the first adopter profile (and in fact, I am not a first adopter. I probably count as second or even third tier). In terms of investing, I would be far happier with an investment of bonds making a safe 4 percent a year. I would be perfectly happy sitting in an office working towards a secure retirement, doing my…

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