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There has been a lot in the media lately on the rise of virtual currencies (technical term is cryptocurrencies), most prominently Bitcoin. Bitcoin's successes, with its astonishing value increase, as well as the trials and tribulations that it has experienced from the Silk Road issues to the collapse of Mt. Gox (which was the world's largest Bitcoin exchange) have all garnered attention. These experiences have left many wondering why and how virtual currencies should be regulated by the government.
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