The threat of bitcoins being hacked or stolen would need to be virtually eliminated.
This is in sharp contrast to what the world is now used to.
The appeal of digital currencies lies in their promise to circumvent this financial architecture.
Over the weekend, bitcoin "died" for the 200th time, but, to the ire of bears across the globe, the most prominent cryptocurrency refuses to acknowledge its supposed demise. It is believed that it was created by Satoshi Nakamoto, although no one knows if such a person/group of people actually exists.
The process of making bitcoin is known as mining.
The potentially highly disruptive nature of the cryptocurrency technology has inspired volumes of debate between its proponents and opponents.
How do we get bitcoin?
Skeptics, though, dismiss its significance. JPMorgan Chase Jamie Dimon has called bitcoin a "fraud". "It's a mirage basically".
It's also fed concern that bitcoin is on the edge of a bubble. Moreover, few businesses, online or otherwise, accept it for payment.
Bitcoins value has gone through the roof this year and crossed the $11,000 mark. IOTA is now less than $1.2 billion behind ripple in terms of total market cap. Amid a record high in the price of Bitcoin, Dr. Garrick Hileman, a Research Fellow at the Cambridge Judge Business School, told Radio Sputnik that so far regulation seems to have had a positive effect on prices.
"Judging by other stores of wealth such as gold, cryptocurrencies have the potential to grow further from here". We are seeing more and more countries announcing outright, complete bans on cryptocurrencies and obviously if that were to accelerate and some of the largest countries were to join in on that, then that would obviously be a huge problem for cryptocurrencies.
"Cryptocurrency mining is going to be one of the many components of our blockchain-focused revenue stream, and it goes to show our commitment to the cryptocurrency market". It's estimated that there are now over 1,000 digital currencies available over the internet, like Ethereum, Litecoin, Zcash, Dash and Ripple.
Despite the proliferation of these currencies, governmental attitudes toward them vary across the world. Miners use special software to solve math problems and are issued a fraction of a bitcoin as a reward. What it does mean is that other cryptocurrencies are likely to begin trading futures contracts of their own.
Control of a currency is one of the most powerful tools of a government and cryptocurrencies may undermine it.
This significant spike in the last 11 months has forced the European Union and the United Kingdom to make amendments to Bitcoin and cryptocurrency regulations and get them on the same page with anti-money laundering and counter-terrorism rules that other financial transactions must follow.
The digital currency's gains accelerated after crossing the psychologically key level.