It’s great that bitcoin gives you the power to “be your own bank”, with almost zero fees and full control over your finances. But even banks discover sometimes such power can backfire. Nothing can stop human error, technical glitches, human nature or a combination of all three from wreaking havoc on the balance sheet.

But bitcoin is also like a pocketful of cash. Like that time you shelled out $100 instead of $10, or two bills instead of one, a simple concentration lapse can see exponentially more bitcoin leave your wallet than you’d intended, never to be seen again. Continue reading →

Stashing money in a Swiss bank account is so passé.

Tomorrow’s tax havens could be fueled by new technology like Bitcoin and Litecoin — online currencies that can be used to purchase everything from coffee to illegal drugs.

The problem for government coffers: There’s no mechanism to ensure that people who make money through such digital currency report the income to the IRS.

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