Whither Bitcoin trading?

So, where is Bitcoin in the aftermath of several events that have tended to undermine the currency? These events include the U.S. government’s celebrated arrest of a big Bitcoin trader in January of 2014, the Chinese government’s clamp-down on Bitcoin trading in the government-controlled banks in that country last year, and the dissolution last year […]

So, where is Bitcoin in the aftermath of several events that have tended to undermine the currency? These events include the U.S. government’s celebrated arrest of a big Bitcoin trader in January of 2014, the Chinese government’s clamp-down on Bitcoin trading in the government-controlled banks in that country last year, and the dissolution last year of Mt Gox, the flagship Tokyo-based Bitcoin exchange that filed for bankruptcy, taking down with it almost half a billion dollars-worth of people’s Bitcoins. (The Bitcoins in Mt Gox’s exchange had been fraudulently transferred out of people’s accounts.)
These events have not killed the interests in Bitcoin. In fact, many governments, including the U.S., Canada, Germany, France, Hong Kong, Italy, Japan, Spain, and the United Kingdom have given Bitcoin trading a legal status in their countries.
You might ask why folks are interested in Bitcoin over a government-controlled currency such as the dollar, Euro, or Naira? There are many reasons, one of which is the ability to carry out global transactions without going through all those “barriers” that the banks and, sometimes, the governments, represent. You do not need bank accounts or credit cards to get and spend Bitcoin. The currency also offers privacy and an easy, fee-free way to transact business across international borders. The currency cannot easily be confiscated by any government, implying some kind of security!
On the flip side, the main issue with Bitcoin is its volatility. (The one-week average exchange rate two days ago was 1 Bitcoin = $235.) Somebody coughs, and the currency takes a nose dive in value. Moreover, Bitcoin is not backed by any currencies, so there are no verifiable assets that can be liquidated to pay users should something go wrong. So, you can literally lose all of your Bitcoin wealth in a wink of an eye. A problem with Bitcoin is the lack of regulation, as the currency is not under the direct influence of any country. Thus, the currency is quite convenient for paying for anything, including illicit drug trafficking and for money laundering. Another problem with Bitcoin has to do with the lack of security on the web. If anyone gets hold of your private key, they can gain access to your Bitcoins and move (steal) them. In response to these concerns, in November of 2013, the U.S. Congress developed the “Know Your Customer” (KYC) laws for Bitcoin exchange businesses. Refer to this column in the Daily Trust of 2 December 2013 for these laws.
Bitcoin ATMs have now simplified Bitcoin exchange a great deal. You can walk up to an ATM and have Bitcoins (in exchange for the world’s major currencies) in less than 1 minute! Moreover, with these ATMs, you can exchange Bitcoins for any of these currencies. All these ATM transactions take place without a bank or any governments involved. In principle, with these ATMs, you may actually be able to exchange, for example, dollar for Pound Sterling, and vice-versa, without going through a bank. This represents some real freedom, if you ask me.
You also do not have to deal with the exorbitant (30%) rate hike at the “black market,” when you transfer money across international borders. Want to send money to Germany from the US? Convert your dollar to Bitcoin at a Bitcoin exchange in the US, and the person at the other side in Germany collects his money in Euro or Bitcoins, without going through any banks. If you had sent dollars to Germany, instead, you would have needed to fill out a form or two and pay transaction fees to at least one bank; not to mention the time it takes to fully complete the transactions. Any country can benefit from Bitcoin’s easier, cheaper, and faster way of moving money across International borders. As Nathaniel Popper pointed out in his 29 April 2015 New York Times article on a related topic, “A Hong Kong firm called Bitspark recently opened a shop in a mall popular with Filipino domestic workers, through which they can send money back home using Bitcoin. Another firm, BitPesa, allows customers to convert Bitcoins into Kenyan shillings and deliver them into mobile wallets within Kenya.” (Remember MPisa?)
In terms of acceptance of Bitcoin, the outlook seems quite good in deed. Unlike the commercial banks in America who, understandably, do not like Bitcoins, the U.S. government seems to give a tacit approval of Bitcoin, as a potential welcome approach, with an eye toward updating the arcane U.S. payment networks, which could take up to  three days to complete a simple money transfer task. While banks are intrigued by the ledger system for Bitcoin transactions, which is called “blockchain,” the U.S. government is looking into understanding blockchain technology, with an eye toward to utilizing it. (The Bitcoin ledger is updated and maintained by everyone on the network!)
As to which major companies (organizations) now accept Bitcoin as methods of payment for purchases of its goods; well, try Microsoft, Dell Computers, Mozilla, Paypal, Wikimedia Foundation, Square market (founded by the founder of Twitter), Amazon, Target (An American retailing company), Subway, Victoria’s Secret – A lingerie outlet, Virgin Galactic – Richard Branson’s company that includes Virgin Mobile and Virgin Airline, Tesla – The car company, Expedia.com – Online travel booking agency, Bloomberg.com – Online newspaper, Home Depot – Office supplies store, Kmart – Retail products store, Apple Store, and the Massachusetts Institute of Technology (MIT) student bookstore. With this kind of list, it seems that Bitcoin is unstoppable.