Jump to content

Bitcoin: Difference between revisions

Edit links
From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
ce
No edit summary
Line 36: Line 36:
'''Bitcoin''' is an [[open source]], [[peer-to-peer]] [[payment network]] and [[digital currency]] introduced in 2009 by [[pseudonym]]ous developer "[[Satoshi Nakamoto]]".<ref name=New_Yorker_Satoshi_Nakamoto>{{cite web | url=http://www.newyorker.com/reporting/2011/10/10/111010fa_fact_davis | title=The Crypto-Currency | author=Joshua Davis | publisher=The New Yorker |date=10 October 2011 |accessdate=19 November 2013 }}</ref> Bitcoin has been called a [[cryptocurrency]] because it uses [[public-key cryptography]] for security.<ref name="ars1">[http://arstechnica.com/business/2013/05/wary-of-bitcoin-a-guide-to-some-other-cryptocurrencies/ Wary of Bitcoin? A guide to some other cryptocurrencies], ars technica, 26-05-2013</ref> Users send payments using [[client software]] on a personal computer, mobile device, or web service. Transactions transfer ownership of bitcoins, the unit of currency. A [[decentralized]] network of specialized computers verifies and [[timestamp]]s all transactions using a [[proof-of-work]] system.<ref name="mercatus">{{cite web | url=http://mercatus.org/sites/default/files/Brito_BitcoinPrimer.pdf | title=Bitcoin: A Primer for Policymakers | publisher=George Mason University | work=Mercatus Center | year=2013 | accessdate=22 October 2013 | author=Jerry Brito and Andrea Castillo}}</ref> The operators of these computers, known as "[[Bitcoin mining|miners]]", are rewarded with transaction fees and newly minted bitcoins.<ref>{{cite web | url=http://www.bloomberg.com/news/2013-10-15/bitcoin-mining-rush-means-real-cash-for-hardware-makers.html | title=Bitcoin Mining Rush Means Real Cash for Hardware Makers | publisher=Bloomberg LP | work=bloomberg.com | date=14 October 2013 | accessdate=23 October 2013 | author=Kharif, Olga}}</ref>
'''Bitcoin''' is an [[open source]], [[peer-to-peer]] [[payment network]] and [[digital currency]] introduced in 2009 by [[pseudonym]]ous developer "[[Satoshi Nakamoto]]".<ref name=New_Yorker_Satoshi_Nakamoto>{{cite web | url=http://www.newyorker.com/reporting/2011/10/10/111010fa_fact_davis | title=The Crypto-Currency | author=Joshua Davis | publisher=The New Yorker |date=10 October 2011 |accessdate=19 November 2013 }}</ref> Bitcoin has been called a [[cryptocurrency]] because it uses [[public-key cryptography]] for security.<ref name="ars1">[http://arstechnica.com/business/2013/05/wary-of-bitcoin-a-guide-to-some-other-cryptocurrencies/ Wary of Bitcoin? A guide to some other cryptocurrencies], ars technica, 26-05-2013</ref> Users send payments using [[client software]] on a personal computer, mobile device, or web service. Transactions transfer ownership of bitcoins, the unit of currency. A [[decentralized]] network of specialized computers verifies and [[timestamp]]s all transactions using a [[proof-of-work]] system.<ref name="mercatus">{{cite web | url=http://mercatus.org/sites/default/files/Brito_BitcoinPrimer.pdf | title=Bitcoin: A Primer for Policymakers | publisher=George Mason University | work=Mercatus Center | year=2013 | accessdate=22 October 2013 | author=Jerry Brito and Andrea Castillo}}</ref> The operators of these computers, known as "[[Bitcoin mining|miners]]", are rewarded with transaction fees and newly minted bitcoins.<ref>{{cite web | url=http://www.bloomberg.com/news/2013-10-15/bitcoin-mining-rush-means-real-cash-for-hardware-makers.html | title=Bitcoin Mining Rush Means Real Cash for Hardware Makers | publisher=Bloomberg LP | work=bloomberg.com | date=14 October 2013 | accessdate=23 October 2013 | author=Kharif, Olga}}</ref>


Bitcoin has been a subject of scrutiny for its use in illicit activities.<ref name="econ">{{cite news |url=http://www.economist.com/node/21563752 | title=Monetarists Anonymous | publisher=The Economist Newspaper Limited | work=The Economist |date=29 September 2012 | accessdate=21 October 2013}}</ref> In 2013 the [[FBI]] shut down the [[Silk Road (marketplace)|Silk Road]] online [[black market]] and seized US$28.5 million worth of bitcoin from the alleged mastermind.<ref>{{cite web|url=http://www.forbes.com/sites/andygreenberg/2013/10/25/fbi-says-its-seized-20-million-in-bitcoins-from-ross-ulbricht-alleged-owner-of-silk-road/ |title=FBI Says It's Seized $28.5 Million In Bitcoins From Ross Ulbricht, Alleged Owner Of Silk Road |publisher=Forbes |date= |accessdate=2013-11-24}}</ref> Theft of bitcoins has been covered extensively in the media.<ref>{{cite web|url=http://dealbook.nytimes.com/2013/12/05/in-the-murky-world-of-bitcoin-fraud-is-quicker-than-the-law/?ref=business&_r=1 |title=In the Murky World of Bitcoin, Fraud Is Quicker Than the Law |publisher=The New York Times |author=Nathaniel Popper| date=2013-12-05| accessdate=2013-12-12}}</ref> The risk of theft can be mitigated by generating and storing keys offline.<ref>{{cite web|url=http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/19/12-questions-you-were-too-embarrassed-to-ask-about-bitcoin/ |title=12 questions about Bitcoin you were too embarrassed to ask |author=Timothy B. Lee |date=19 November 2013| accessdate= 12 December 2013 |publisher=The Washington Post}}</ref> It is now prohibited for [[China|Chinese]] financial banks to operate using bitcoins or for bitcoins to be used as legal tender currency.<ref name="中国人民银行等五部委发布《关于防范比特币风险的通知》">2013-12-05, [http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2013/20131205153156832222251/20131205153156832222251_.html 中国人民银行等五部委发布《关于防范比特币风险的通知》], [[People's Bank of China]]</ref>
Bitcoin has been a subject of scrutiny for its use in illicit activities.<ref name="econ">{{cite news |url=http://www.economist.com/node/21563752 | title=Monetarists Anonymous | publisher=The Economist Newspaper Limited | work=The Economist |date=29 September 2012 | accessdate=21 October 2013}}</ref> In 2013 the [[FBI]] shut down the [[Silk Road (marketplace)|Silk Road]] online [[black market]] and seized US$28.5 million worth of bitcoin from the alleged mastermind.<ref>{{cite web|url=http://www.forbes.com/sites/andygreenberg/2013/10/25/fbi-says-its-seized-20-million-in-bitcoins-from-ross-ulbricht-alleged-owner-of-silk-road/ |title=FBI Says It's Seized $28.5 Million In Bitcoins From Ross Ulbricht, Alleged Owner Of Silk Road |publisher=Forbes |date= |accessdate=2013-11-24}}</ref> Theft of bitcoins has been covered extensively in the media.<ref>{{cite web|url=http://dealbook.nytimes.com/2013/12/05/in-the-murky-world-of-bitcoin-fraud-is-quicker-than-the-law/?ref=business&_r=1 |title=In the Murky World of Bitcoin, Fraud Is Quicker Than the Law |publisher=The New York Times |author=Nathaniel Popper| date=2013-12-05| accessdate=2013-12-12}}</ref> The risk of theft can be mitigated by generating and storing keys offline.<ref>{{cite web|url=http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/19/12-questions-you-were-too-embarrassed-to-ask-about-bitcoin/ |title=12 questions about Bitcoin you were too embarrassed to ask |author=Timothy B. Lee |date=19 November 2013| accessdate= 12 December 2013 |publisher=The Washington Post}}</ref> It is now prohibited for [[China|Chinese]] financial banks to operate using bitcoins or for bitcoins to be used as legal tender currency.<ref name="中国人民银行等五部委发布《关于防范比特币风险的通知》">2013-12-05, [http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2013/20131205153156832222251/20131205153156832222251_.html 中国人民银行等五部委发布《关于防范比特币风险的通知》], [[People's Bank of China]]</ref> Many bitcoin users who bought at the peak of $1200 have resorted to suicide as the pump and dump becomes apparent.


Commercial use of Bitcoin, illicit or otherwise, is currently small compared to its use by [[Speculation|speculators]], which has fueled price volatility.<ref name=toomanyspecs>{{cite web | url=http://www.theatlantic.com/business/archive/2013/11/bitcoin-is-the-segway-of-currency/281625/ | title=Bitcoin Is the Segway of Currency | publisher=The Atlantic | date=21 November 2013 | accessdate=25 November 2013 | author=O'Brien, Matthew}}</ref> However, Bitcoin is also used to pay for products and services. Merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3% typically imposed by credit card processors.<ref>For growing acceptance, see {{cite web | url=http://techcrunch.com/2013/09/16/bitpay-10000-merchants/ | title=BitPay Passes 10,000 Bitcoin-Accepting Merchants On Its Payment Processing Network | publisher=Techcrunch.com | work=Techcrunch | date=16 September 2013 | accessdate=21 October 2013}}
Commercial use of Bitcoin, illicit or otherwise, is currently small compared to its use by [[Speculation|speculators]], which has fueled price volatility.<ref name=toomanyspecs>{{cite web | url=http://www.theatlantic.com/business/archive/2013/11/bitcoin-is-the-segway-of-currency/281625/ | title=Bitcoin Is the Segway of Currency | publisher=The Atlantic | date=21 November 2013 | accessdate=25 November 2013 | author=O'Brien, Matthew}}</ref> However, Bitcoin is also used to pay for products and services. Merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3% typically imposed by credit card processors.<ref>For growing acceptance, see {{cite web | url=http://techcrunch.com/2013/09/16/bitpay-10000-merchants/ | title=BitPay Passes 10,000 Bitcoin-Accepting Merchants On Its Payment Processing Network | publisher=Techcrunch.com | work=Techcrunch | date=16 September 2013 | accessdate=21 October 2013}}
* For cheap payment processing costs, see {{cite news | url=http://www.nytimes.com/2013/10/31/technology/bitcoin-pursues-the-mainstream.html?_r=0 | title=Bitcoin Pursues the Mainstream | work=The New York Times | date=30 October 2013 | accessdate=4 November 2013 | author=Wingfield, Nick}}</ref> Notable vendors accepting Bitcoin include [[OkCupid]], [[Reddit]], [[WordPress]], and [[Virgin Galactic]].<ref name="BitcoinsInSpace">{{cite web | url=http://www.virgin.com/richard-branson/bitcoins-in-space | title=Bitcoins in space | first=Richard | last=Branson | authorlink=Richard Branson | date=22 November 2013 | accessdate=18 December 2013}}</ref>
* For cheap payment processing costs, see {{cite news | url=http://www.nytimes.com/2013/10/31/technology/bitcoin-pursues-the-mainstream.html?_r=0 | title=Bitcoin Pursues the Mainstream | work=The New York Times | date=30 October 2013 | accessdate=4 November 2013 | author=Wingfield, Nick}}</ref> Notable vendors accepting Bitcoin include [[OkCupid]], [[Reddit]], [[WordPress]], and [[Virgin Galactic]].<ref name="BitcoinsInSpace">{{cite web | url=http://www.virgin.com/richard-branson/bitcoins-in-space | title=Bitcoins in space | first=Richard | last=Branson | authorlink=Richard Branson | date=22 November 2013 | accessdate=18 December 2013}}</ref> Unfortunately, it's use by child molestors and sperglords threatens its further expansion.


==Transactions==
==Transactions==

Revision as of 05:32, 19 December 2013

Bitcoin
A common Bitcoin logo[1]
Unit
Symbol BTC, XBT,[2] , ฿,[3][note 1]‎
Denominations
Subunit
 .00000001satoshi[4]
Demographics
Date of introductionJanuary 3, 2009 (2009-01-03)
User(s)International
Issuance
LedgerTransactions are verified and secured by decentralized peer-to-peer network.[5]
Valuation
Issuance25BTC every ten minutes
 SourceTotal BTC in Circulation
 MethodThe rate of new Bitcoin creation will be halved every four years until there are 21 million BTC[6]: 17 
This article contains special characters. Without proper rendering support, you may see question marks, boxes, or other symbols.

Template:Contains Chinese text

Bitcoin is an open source, peer-to-peer payment network and digital currency introduced in 2009 by pseudonymous developer "Satoshi Nakamoto".[7] Bitcoin has been called a cryptocurrency because it uses public-key cryptography for security.[8] Users send payments using client software on a personal computer, mobile device, or web service. Transactions transfer ownership of bitcoins, the unit of currency. A decentralized network of specialized computers verifies and timestamps all transactions using a proof-of-work system.[9] The operators of these computers, known as "miners", are rewarded with transaction fees and newly minted bitcoins.[10]

Bitcoin has been a subject of scrutiny for its use in illicit activities.[11] In 2013 the FBI shut down the Silk Road online black market and seized US$28.5 million worth of bitcoin from the alleged mastermind.[12] Theft of bitcoins has been covered extensively in the media.[13] The risk of theft can be mitigated by generating and storing keys offline.[14] It is now prohibited for Chinese financial banks to operate using bitcoins or for bitcoins to be used as legal tender currency.[15] Many bitcoin users who bought at the peak of $1200 have resorted to suicide as the pump and dump becomes apparent.

Commercial use of Bitcoin, illicit or otherwise, is currently small compared to its use by speculators, which has fueled price volatility.[16] However, Bitcoin is also used to pay for products and services. Merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3% typically imposed by credit card processors.[17] Notable vendors accepting Bitcoin include OkCupid, Reddit, WordPress, and Virgin Galactic.[18] Unfortunately, it's use by child molestors and sperglords threatens its further expansion.

Transactions

Further information: Bitcoin protocol

Blockchain

Integral to Bitcoin is a public transaction ledger and log known as the blockchain, which shows who owns how many bitcoins currently and records the participants in all prior transactions as well. By keeping a record of all transactions, the blockchain prevents double-spending (copying one bitcoin and spending it in multiple places) because the record shows that once a bitcoin has been spent, the previous owner no longer controls it.[19] The blockchain is maintained not by a central body but by a distributed network of computers that run a program to solve cryptographic puzzles relating to information in the blockchain.[19] Users who devote computing power to maintaining the blockchain this way are called "miners" because they are awarded in bitcoin when they are the first to solve such puzzles. This mining is how new bitcoins are generated.[19] The mathematical calculations performed by miners' computers serve to verify that each transaction is valid and add the information to the blockchain.[20] As more bitcoins come into circulation, the puzzles involved in mining them become increasingly difficult, and the rewards are halved at regular intervals, until 21 million bitcoins have been created and production stops.[19] As Bitcoin achieves wider recognition and more people compete to mine the coins, competition for the limited number of bitcoins awarded for solving the cryptographic puzzles becomes more steep and more powerful computers are needed in order to compete–a fact which has spawned a technology boom in sales of Bitcoin mining technology.[20]

Anonymity

The blockchain is a public ledger of every bitcoin transaction. Bitcoin does provide anonymity in that a bitcoin address does not directly identify its owner. Tracking the flow of bitcoins through the address can give clues as to who the owner is.[21] Bitcoin uses cryptography but does not do so to protect the identities of its users. Bitcoin is anonymous in that it's difficult to associate Bitcoin transactions with real-life identities.[22] In addition, Bitcoin intermediaries such as exchanges are required by law in many jurisdictions to collect personal customer data.[23]

Exchanges

Through various exchanges, bitcoins are bought and sold at a variable price against the value of other currencies.[24] While there may be a seemingly large number, exchanges regularly fail, taking client bitcoins with them.[25] A published research study showed that of 40 Bitcoin exchange markets studied, 18 ended up closing over a period of 3 years.[26]

Payment processing

A diagram demonstrating a bitcoin transfer

In order to make a payment, a user transfers an amount of bitcoins from his or her account into the account of the recipient, and then the transaction is validated by others in the network[27] and recorded in the blockchain ledger of all Bitcoin transactions. The time it takes others to validate the transaction means that there is a delay of about 10 minutes in processing a payment.[27]

Bitcoin payment processing fees are substantially lower than those of credit cards or money transfers.[28] The competitive advantage lower fees confer to Bitcoin may lessen or vanish in the future, however. Currently, doing the work of payment processing is rewarded with newly created bitcoins. But this reward is halved every few years,[29] meaning a sustained increase in the value of bitcoins relative to other currencies is necessary to keep fees low. In addition, once the Bitcoin ceiling, a hard limit on the number of bitcoins in existence, is reached, payment processing will only be incentivized with fees, not free bitcoins.

Wallets

Example wallets
Electrum - a digital Bitcoin wallet
A paper Bitcoin wallet
A stack of gold-colored coins with the Bitcoin logo, the B with two vertical lines through it
It is possible to buy physical representations of bitcoins; each of these coins can be broken open to reveal a piece of paper with the private key to a bitcoin wallet.[30]

Bitcoin functions using public-key cryptography, in which a user generates a pair of cryptographic keys: one public and one private.[31] Only the private key can decode information encrypted with the public key; therefore the keys' owner can distribute the public key openly without fear that anyone will be able to use it to gain access to the encrypted information. An example public wallet (owned by the FBI) demonstrates its structure, a string of 34 numbers and letters: 1FfmbHfnpaZjKFvyi1okTjJJusN455paPH.[32] (The private key, however, must be kept secret and secure).[31] The public key can be used as an "address" to which other users can send bitcoins. Anyone wishing to use Bitcoin can create one or more Bitcoin addresses, which are collected and tracked in "wallets". Anyone can send bitcoins to the public address provided by the owner of the wallet, while the private key must be entered by the wallet owner to send bitcoins. Securing and protecting the private key is the essence of wallet security. If the private key for an address is not kept secret, the bitcoins may be stolen; theft has been documented on numerous occasions,[26] and the practical day-to-day security of Bitcoin wallets remains an on-going concern.[33]

Wallets allow a user to complete transactions between addresses by requesting an update to the blockchain, the public transaction log. Wallets come in a variety of forms: apps for mobile devices and computers, hardware devices, and paper tokens. When making a purchase with a mobile device, the use of QR codes to simplify transactions is ubiquitous.

The four main ways to get Bitcoins are:[34]

  • Exchanges, where you can buy and sell Bitcoin for fiat currency
  • Mining
  • Transactions between individuals using Bitcoin Wallets
  • Online content or services paid through the site owner's Bitcoin Wallet

History

Main article: History of Bitcoin

First mentioned in a 2008 paper published under the pseudonym "Satoshi Nakamoto" (which roughly translates as "Thinking clearly inside the foundation"),[35] Bitcoin became operational in early 2009, with the release of the first open source Bitcoin client and the issuance of the first bitcoins.[36][37][38] The currency had early technical problems such as a 2009 exploit that allowed the creation of unlimited bitcoins.[39][40]

On average, bitcoins have appreciated rapidly in relation to other currencies including the US dollar, euro and British pound.[24] In 2011 the value of one bitcoin rapidly rose from about $0.30 to $32, before falling back down to $2.[41] Bitcoin began attracting media attention in late 2012, and numerous news articles have been written about it. In 2013, some mainstream services such as OkCupid, Baidu, Reddit, Humble Bundle and Foodler began accepting it.[42] That year also saw the first interventions by law enforcement. Assets belonging to the Mt. Gox exchange were seized, and the Silk Road drugs market was shut down.[43]

During November 2013, the China-based Bitcoin exchange BTC China overtook Japan-based Mt. Gox and Europe-based Bitstamp to become the largest Bitcoin trading exchange by trade volume.[44] On 19 November 2013, the value of Bitcoin on the Mt. Gox exchange soared to a peak of US$900 following a United States Senate committee hearing, at which the committee was informed that virtual currencies were a legitimate financial service.[45] On the same day, one bitcoin traded for over RMB¥6780 (US$1100) in China.[46] With roughly 12 million bitcoins in existence as of November 2013,[47] the new price increased the market cap for Bitcoin to at least US$7.2 billion.[48]

On 5 December 2013, the People's Bank of China announced in a press release regarding bitcoin regulation that whilst individuals in China are permitted to freely trade and exchange bitcoins as a commodity, it is prohibited for Chinese financial banks to operate using bitcoins or for bitcoins to be used as legal tender currency, and that entities dealing with bitcoins must track and report suspicious activity to prevent money laundering.[15] The value of bitcoin dropped on various exchanges between 11 to 20 percent following the regulation announcement.[49] A side-effect of this announcement was a subsidiary of the Chinese internet giant Baidu ceasing to accept bitcoins as payment.[50][51] On December 18, prices crumbled again after the Chinese government effectively banned Bitcoin.[52]

Economics

Large fluctuations in the value of Bitcoin have led some to question its ability to function as a currency[53] since people may be reluctant to hold onto their money in the form of bitcoin for fear that it might lose value. Stability in a currency's value plays an important role in people's willingness to use it.[54] However the volatility has little effect on the currency's utility as a medium of transfer from one currency to another since the amount of time money is stored as bitcoin is small so fluctuations would also be minor.[27][55] The fees and delays involved in transferring money across borders via bitcoin are small compared to those imposed by banks and their intermediaries in the standard way: pennies compared to dollars and minutes compared to days.[55] As of November 2013, the main use for bitcoins was likely for international money transferring purposes.[27]

Bitcoin's deflationary bias encourages hoarding.[56] However, currently Bitcoin does see some use as a currency.[57][58] By November 2013 there were about 1000 "brick and mortar" businesses willing to accept payment in bitcoin,[59] and more than twenty thousand merchants online.[60][61] A non-profit organization, the Boys and Girls Club of Santa Monica accepts donations in bitcoin.[62]

The price of a bitcoin reached previous all-time high of US$1124.76 on 29 November 2013, up from just US$13.36 of 5 January at the start of the year; however, the price has dropped 40% thereafter.

Alternative to national currencies

Bitcoins are accepted in this café in the Netherlands as of 2013

Some have suggested that Bitcoin is gaining popularity in countries with problem-plagued national currencies, as it can be used to circumvent inflation, capital controls, and international sanctions. Bitcoins are used by some Argentinians as an alternative to the official currency,[63] which is stymied by inflation and strict capital controls.[23] In addition, some Iranians use bitcoins to evade currency sanctions.[64]

Financial journalists and analysts have suggested that there was a link between higher Bitcoin usage in Spain and the 2012-2013 Cypriot financial crisis.[65]

Bubbles

Many have mentioned speculative bubbles in connection with Bitcoin.[66][67][68] Professor John Quiggin of the University of Queensland has noted that since Bitcoin by design has no intrinsic value, it is "perhaps the finest example of a pure bubble" currently known and "represent[s] the sharpest ever refutation of the efficient-markets hypothesis", but cautions that we have no way to predict when the value of bitcoins will return to zero.[69]

Nick Colas, a market strategist for ConvergEx Group, has remarked on the effect of increasing use of Bitcoin and its restricted supply, noting, "When incremental adoption meets relatively fixed supply, it should be no surprise that prices go up. And that's exactly what is happening to BTC prices."[70]

Speculation

Bitcoins are often traded as an investment[71] by speculators who expect the currency to increase in value as its popularity widens.[54][72] Bitcoins have been described as lacking intrinsic value as an investment because their value depends only on the willingness of users to accept them.[73] Their vulnerability to hacking also makes their use as an investment more questionable.[54]

Derivatives of bitcoins are thinly available. One organization offers futures contracts against multiple currencies.[74]

Certain investment funds have shown interest in Bitcoin with Peter Thiel's Founders Fund investing US$3 million, and the Winklevoss twins making a US$1.5 million personal investment.[75]

Legal issues

Bitcoin's association with criminal activities has historically hindered the currency from attaining widespread, mainstream use and has attracted the attention of financial regulators, legislative bodies, and law enforcement.[76] The Washington Post has labeled it "the currency of choice for seedy online activities,"[77] and CNN has called Bitcoin a "shady online currency."[78] Its links to criminal activities have prompted scrutiny from the FBI, US Senate, and the State of New York. The FBI stated in a 2012 report that "Bitcoins will likely continue to attract cyber-criminals who view it as a means to move or steal funds".[79]

In March 2013 the US Financial Crimes Enforcement Network (FinCEN) established regulatory guidelines for "decentralized virtual currencies" such as Bitcoin, classifying American "Bitcoin miners" who sell their generated bitcoins as money services businesses (or MSBs), that may be subject to registration and other legal obligations.[80][81][82] In August 2013 the German Finance Ministry characterized Bitcoin as a unit of account,[83][84] usable in multilateral clearing circles and subject to capital gains tax if held less than one year.[84] The New York State Department of Financial Services, citing its authority to regulate money transmissions and its concern with criminal activity (Silk Road in particular), announced an inquiry in late 2013 into possible regulations and guidelines for Bitcoin (a "BitLicense") and the holding of public hearings in New York City.[85] The US Internal Revenue Service has also stated that it is actively working on its own rules for Bitcoin.[54]

The Norwegian Tax Administration stated in December 2013 that they don't define Bitcoin as money but regard it as an asset. Profits are subjected to wealth tax. In business, use of Bitcoin falls under the sales tax regulation.[86]

At the same time, the European Banking Authority (EBA) gave a nuanced nod of approval to Bitcoin usage. Issuing what was formally a "warning" to consumers its about dangers inasmuch as Bitcoin businesses are not regulated or licensed as banks in EU and EFTA areas, they further admitted that these businesses are not currently required to operate under such regulations, thus acknowledging the status quo.[87]

Some have suggested that due to its close association with illegal purchases, governments could outlaw Bitcoin. This assertion has been made by Steven Strauss, a Harvard public policy professor, and was also mentioned in 2013 SEC filing made by a Bitcoin investment vehicle.[88] Bitcoins are not currently illegal, however. FBI Special Agent Christopher Tarbell has stated that "Bitcoins are not illegal in and of themselves and have known legitimate uses".[89]

Black markets

Several news outlets assert that the popularity of Bitcoin hinges on the ability to use them to purchase illegal substances.[11] In 2013 The Guardian reported that the currency was primarily used to purchase illegal drugs and for online gambling,[90] and The Huffington Post stated that "online gambling accounts for a huge portion of Bitcoin activity."[91] Legitimate transactions are thought to be far less than the number involved in the purchase of drugs,[92] and roughly one half of all transactions made using Bitcoin are bets placed at a single online gaming website.[93] In 2012, an academic from the Carnegie Mellon CyLab and the Information Networking Institute estimated that 4.5 to 9% of all bitcoins spent were for purchases of drugs at a single online market, Silk Road.[94] As the majority of the Bitcoin transactions were at this time speculative in nature, this academic asserts that drugs constituted a much larger percentage of the products and services bought using the currency, however.[94] The Huffington Post stated in 2013 that online gun dealers use Bitcoin to sell arms without background checks.[95]

Money laundering

While some regulatory authorities, including the European Banking Authority, feel Bitcoin may be used for money laundering,[96] a 2012 report by the FBI acknowledged such fears but stated that there were no known instances of this occurring.[79] Some say one obstacle to bitcoins becoming widely used to launder money may be the fact that the transaction history is public.[97] During the US Senate hearing in 2013, Jennifer Shasky Calvery, director of the Treasury Department's Financial Crimes Enforcement Network said that despite the possibility for using Bitcoin that "Cash is probably still the best medium for money laundering."[98]

Unauthorized mining

In June 2011, Symantec warned about the possibility of botnets engaging in covert mining of bitcoins,[99][100] consuming computing cycles, using extra electricity and increasing computer temperatures. Some malware used the parallel processing capabilities of the GPUs built into many modern video cards.[101] In mid-August 2011, bitcoin miner botnets were detected again,[102] and less than three months later Bitcoin-mining trojans infecting Mac OS X were also discovered.[103] In April 2013 electronic sports organization E-Sports Entertainment were accused of hijacking 14,000 computers to mine bitcoins; the case was settled in November with the organization fined US$1 million if it breaks the law within the following ten years, or $325,000 if it does not.[104]

Reception

Economists have had a mixed reaction to Bitcoin. Some have responded positively to Bitcoin, including François R. Velde, senior economist of the Federal Reserve in Chicago who described it as "an elegant solution to the problem of creating a digital currency."[105][106]

Other economists commenting on Bitcoin have been critical. Paul Krugman has suggested that the structure of the currency incentivizes hoarding[107] and that its value derives from the expectation that others will accept it as payment.[108] Larry Summers has expressed a "wait and see" attitude when it comes to Bitcoin.[109]

In November 2013 Richard Branson announced that Virgin Galactic would accept Bitcoin as payment, saying that he had invested in Bitcoin and found it "fascinating how a whole new global currency has been created", encouraging others to also invest in Bitcoin.[18][110] PayPal President David A. Marcus has said he thinks that Bitcoin is a "great place to put assets" but that it won't be a currency until its price volatility reduces.[111]

Governments

United States

On 18 November 2013 the United States Senate held a committee hearing titled Beyond Silk Road: Potential Risks, Threats and Promises of Virtual Currencies to discuss virtual currencies.[112] At this hearing, held by senator Tom Carper, Bitcoin and other currencies were received generally positively, with it being stated that Bitcoin was a "legal means of exchange" and that "online payment systems, both centralized and decentralized, offer legitimate financial services" by US officials such as Peter Kadzik and Mythili Raman.[47][113] It was noted, however, that the Justice Department's Criminal Division has seen an increased use of virtual currencies for illegal purposes such as drugs and child pornography.[114]

Switzerland

A proposal was put forth by 45 members of the Swiss parliamentary group for digital sustainability (Pardigli), that calls on the Swiss government to evaluate the opportunities for utilization of Bitcoin by the country’s financial sector. It also seeks clarification on the Bitcoin’s legal standing with respect to VAT, securities and anti-money laundering laws.[115]

Germany

On 19 August 2013 the German Finance Ministry announced that Bitcoin is now essentially a "Unit of account" and can be used for the purpose of tax and trading in the country. It is not classified as a foreign currency or e–money but stands as "private money" which can be used in "multilateral clearing circles", according to the ministry.[115]

United Kingdom

The Channel Island of Alderney has announced plans to become the first jurisdiction to produce physical Bitcoins, in partnership with the UK’s Royal Mint. The British crown dependency wants to become an international centre for Bitcoin transactions and establish services such as exchanges that meet anti-money laundering rules.[115]

Canada

In November, the Canada Revenue Agency issued a statement clarifying the tax treatment of Bitcoin. The statement is a brief outline which states that tax rules apply when Bitcoin is used to pay for goods and services in the same way the rules apply for barter transactions.[115]

Finland

Finland issued a regulatory guide to bitcoin in September 2013, which imposed capital gains tax on bitcoins, and taxes bitcoins produced by mining as earned income. [116]

China

On December 5, China Central Bank barred financial institutions from handling Bitcoin transactions, moving to regulate the virtual currency. The People's Bank of China said financial institutions and payment companies can’t give pricing in Bitcoin, buy and sell the virtual currency or insure Bitcoin-linked products, according to a statement on the central bank’s website.[117] On December 16 the People's Bank of China has issued a new ban on third-party payment processors from doing business with Bitcoin exchanges.[118]

See also

Notes

  1. ^ This also is the baht symbol

References

  1. ^ "Bitcoin Graphics in Vector Format (Illustrator)".
  2. ^ Jon Matonis (17 September 2013). "Bitcoin gaining market-based legitimacy as XBT". Coindesk. Retrieved 14 December 2013.
  3. ^ Matonis, Jon (22 January 2013). "Bitcoin Casinos Release 2012 Earnings". Forbes. New York. Archived from the original on 16 February 2013. Responsible for more than 50% of daily network volume on the Bitcoin blockchain, SatoshiDice reported first year earnings from wagering at an impressive ฿33,310. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  4. ^ "Cracking the Bitcoin: Digging Into a $131M USD Virtual Currency". Daily Tech. 12 June 2011. Archived from the original on 20 January 2013. Retrieved 30 September 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  5. ^ Barber, Simon; Boyen, Xavier; Shi, Elaine and Uzun, Esrin (2012). "Bitter to Better - how to make Bitcoin a better currency" (PDF). Financial Cryptography and Data Security. Lecture Notes in Computer Science. 7397. Springer: 399. doi:10.1007/978-3-642-32946-3_29. ISBN 978-3-642-32945-6.{{cite journal}}: CS1 maint: multiple names: authors list (link)
  6. ^ Ron Dorit (2012). "Quantitative Analysis of the Full Bitcoin Transaction Graph" (PDF). Cryptology ePrint Archive. Retrieved 18 October 2012. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  7. ^ Joshua Davis (10 October 2011). "The Crypto-Currency". The New Yorker. Retrieved 19 November 2013.
  8. ^ Wary of Bitcoin? A guide to some other cryptocurrencies, ars technica, 26-05-2013
  9. ^ Jerry Brito and Andrea Castillo (2013). "Bitcoin: A Primer for Policymakers" (PDF). Mercatus Center. George Mason University. Retrieved 22 October 2013.
  10. ^ Kharif, Olga (14 October 2013). "Bitcoin Mining Rush Means Real Cash for Hardware Makers". bloomberg.com. Bloomberg LP. Retrieved 23 October 2013.
  11. ^ a b "Monetarists Anonymous". The Economist. The Economist Newspaper Limited. 29 September 2012. Retrieved 21 October 2013.
  12. ^ "FBI Says It's Seized $28.5 Million In Bitcoins From Ross Ulbricht, Alleged Owner Of Silk Road". Forbes. Retrieved 24 November 2013.
  13. ^ Nathaniel Popper (5 December 2013). "In the Murky World of Bitcoin, Fraud Is Quicker Than the Law". The New York Times. Retrieved 12 December 2013.
  14. ^ Timothy B. Lee (19 November 2013). "12 questions about Bitcoin you were too embarrassed to ask". The Washington Post. Retrieved 12 December 2013.
  15. ^ a b 2013-12-05, 中国人民银行等五部委发布《关于防范比特币风险的通知》, People's Bank of China
  16. ^ O'Brien, Matthew (21 November 2013). "Bitcoin Is the Segway of Currency". The Atlantic. Retrieved 25 November 2013.
  17. ^ For growing acceptance, see "BitPay Passes 10,000 Bitcoin-Accepting Merchants On Its Payment Processing Network". Techcrunch. Techcrunch.com. 16 September 2013. Retrieved 21 October 2013.
  18. ^ a b Branson, Richard (22 November 2013). "Bitcoins in space". Retrieved 18 December 2013.
  19. ^ a b c d Wallace, Benjamin (23 November 2011). "The Rise and Fall of Bitcoin". Wired. Retrieved 4 November 2013.
  20. ^ a b Ashlee Vance (14 November 2013). "2014 Outlook: Bitcoin Mining Chips, a High-Tech Arms Race". Businessweek. Retrieved 24 November 2013.
  21. ^ McMillan, Robert. "How Bitcoin lets you spy on careless companies". Retrieved 16 December 2013.
  22. ^ The Economist. "Monetarists Anonymous". Archived from the original on 2 January 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help). 29 September 2012. Retrieved 1 April 2013.
  23. ^ a b Lee, Timothy B. (19 August 2013). "Five surprising facts about Bitcoin". Washington Post blog. Archived from the original on 22 August 2013.
  24. ^ a b "Bitcoin Markets (mtgoxUSD) - Bitcoin Charts". Quandl. Retrieved 20 November 2013.: 3 
  25. ^ Steadman, Ian (26 April 13). "Study: 45 percent of Bitcoin exchanges end up closing". Wired. Retrieved 28 April 2013. {{cite web}}: Check date values in: |date= (help); Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  26. ^ a b Moore, Tyler and Nicolas Christin (2013). "Beware the Middleman: Empirical Analysis of Bitcoin-Exchange Risk. In Proceedings of the 17th International Conference on Financial Cryptography and Data Security (FC'13)" (PDF). {{cite journal}}: Cite journal requires |journal= (help); Unknown parameter |month= ignored (help)
  27. ^ a b c d Hiltzik, Michael (24 November 2013). "Bitcoins: Widely known and widely misunderstood". LA Times. Retrieved 24 November 2013.
  28. ^ Wingfield, Nick (30 October 2013). "Bitcoin Pursues the Mainstream". The New York Times. Retrieved 4 November 2013.
  29. ^ Ritchie S. King Sam Williams David Yanofsky (17 December 2013). "By reading this article, you're mining bitcoins". qz.com. Atlantic Media Co. Retrieved 17 December 2013.
  30. ^ Bustillos, Maria. "The Future of Bitcoin". The New Yorker. Retrieved 3 December 2013.
  31. ^ a b "Bitcoin: Bitcoin under pressure". The Economist. 30 November 2013. Retrieved 30 November 2013.
  32. ^ [1]
  33. ^ Rubens, Paul. "BBC News - Cybercrime shopping list study points to falling prices". Bbc.co.uk. Retrieved 17 December 2013.
  34. ^ "How do I get Bitcoins? (For Beginners)". The Bitcoin Bulletin. 11 March 2011. Retrieved 13 December 2013.
  35. ^ "A Quick and Complete History of Bitcoin So You're Not Totally Lost". Gizmodo. Retrieved 16 December 2013.
  36. ^ "Block 0 – Bitcoin Block Explorer". Archived from the original on 9 July 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  37. ^ Nakamoto, Satoshi (9 January 2009). "Bitcoin v0.1 released". Archived from the original on 4 September 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  38. ^ "SourceForge.net: Bitcoin". Archived from the original on 16 July 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  39. ^ Wallace, Benjamin (23 November 2011). "The Rise and Fall of Bitcoin". Wired. Archived from the original on 9 February 2013. Retrieved 13 October 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  40. ^ "Vulnerability Summary for CVE-2010-5139". National Vulnerability Database. 8 June 2012. Archived from the original on 9 April 2013. Retrieved 22 March 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  41. ^ "When will the people who called Bitcoin a bubble admit they were wrong?". The Washington Post. 8 November 2013.
  42. ^ Van Sack, Jessica (27 May 2013). "Why Bitcoin makes cents". Boston Herald. Retrieved 15 August 2013.
  43. ^ For asset seizure, see Dillet, Romain (16 May 2013). "Feds Seize Assets From Mt. Gox's Dwolla Account, Accuse It Of Violating Money Transfer Regulations". TechCrunch. Retrieved 15 May 2013.
  44. ^ 2013-11-18, As Chinese Investors Pile Into Bitcoin, China's Oldest Exchange, BTC China, Raises $5M From Lightspeed, Techcrunch
  45. ^ 2013-11-19, 'Legitimate' Bitcoin's value soars after Senate hearing, BBC News
  46. ^ Lee, Cyrus (22 November 2013). "China no plans yet to legalize use of Bitcoins". ZDNet. Retrieved 27 November 2013.
  47. ^ a b Raskin, Max (18 November 2013). "U.S. Agencies to Say Bitcoins Offer Legitimate Benefits". Bloomberg. Retrieved 24 November 2013.
  48. ^ Wasserman, Todd. 18 November 2013 Mashable. "Bitcoin Tops $600, Up 60x Over the Last Year"
  49. ^ 2013-12-06, China bans banks from bitcoin transactions, The Sydney Morning Herald
  50. ^ "Baidu Stops Accepting Bitcoins After China Ban". Bloomberg. New York. 7 December 2013. Retrieved 11 December 2013.
  51. ^ "Bitcoin Says Goodbye To Silk Road And Hello To Baidu, China's Google". Forbes. New York. 10 October 2013. Retrieved 21 October 2013.
  52. ^ Lee, Danny and Angela Meng. "Bitcoin price slumps after Beijing bans clearing services". South China Morning Post. South China Morning Post Publishers Ltd. Retrieved 18 December 2013.
  53. ^ Moore, Heidi (3 April 2013). "Confused about Bitcoin? It's 'the Harlem Shake of currency'". The Guardian. London. Archived from the original on 29 April 2013. Retrieved 8 April 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  54. ^ a b c d Popper, Nathaniel (18 November 2013). "Regulators See Value in Bitcoin, and Investors Hasten to Agree". NYTimes.com. Retrieved 27 November 2013.
  55. ^ a b Roose, Kevin. "How Bitcoin Can Go Mainstream, in One Easy Step - Daily Intelligencer". Nymag.com. Retrieved 25 November 2013.
  56. ^ For The Atlantic article, see O'Brien, Matthew (11 April 2013). "Bitcoin Is No Longer a Currency". The Atlantic. Washington DC. Archived from the original on 29 April 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  57. ^ "Bitcoin: more than just the currency of digital vice". The Guardian. 4 March 2013. Archived from the original on 29 April 2013. Retrieved 20 April 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  58. ^ Popper, Nathaniel. (13 December 2012) "Never Mind Facebook; Winklevoss Twins Rule in Digital Money". Archived from the original on 29 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help). Dealbook.nytimes.com. Retrieved 20 April 2013.
  59. ^ Joon Ian Wong (28 November 2013). "CoinMap: Bitcoin-Accepting Merchants Increased 81% in November". CoinDesk. Retrieved 1 December 2013.
  60. ^ Timothy B. Lee, The Washington Post (24 November 2013). "Answers to Bitcoin questions: Largely unregulated, the Web currency is growing in popularity". The Columbian. Retrieved 1 December 2013.
  61. ^ Alex Williams (12 December 2013). "Coinbase Raises $25M Led By Andreessen Horowitz To Build Its Bitcoin Wallet And Merchant Services". TechCrunch. Retrieved 13 December 2013.
  62. ^ "Santa Monica Boys & Girls Clubs Partners With Bitcoin For Social Good". Santa Monica Mirror. 9 December 2013.
  63. ^ "Bitcoins gain traction in Argentina". Archived from the original on 29 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help). Blogs.ft.com (16 April 2013). Retrieved 20 April 2013.
  64. ^ Raskin, Max (29 November 2012). "Dollar-Less Iranians Discover Virtual Currency". BloombergBusinessWeek. Archived from the original on 17 April 2013. Retrieved 15 April 2013. {{cite journal}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  65. ^ Salyer, Kirsten (21 March 2013). "Fleeing the Euro for Bitcoins". Bloomberg L.P. Archived from the original on 10 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  66. ^ Salmon, Felix (3 April 2013). "The Bitcoin Bubble and the Future of Currency". medium.com. Retrieved 26 October 2013.
  67. ^ Isidore, Chris (12 April 2013). "Bitcoin bubble may have burst". CNNMoney. CNN. Retrieved 26 October 2013.
  68. ^ Franklin, Oliver (5 April 13). "When the Bitcoin Bubble will burst". GQ. Retrieved 27 October 2013. {{cite web}}: Check date values in: |date= (help)
  69. ^ Quiggin, John (16 April 2013). "The Bitcoin Bubble and a Bad Hypothesis". The National Interest. Archived from the original on 29 April 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  70. ^ Boesler, Matthew (7 March 2013). "ANALYST: The Rise Of Bitcoin Teaches A Tremendous Lesson About Global Economics". Business Insider. Archived from the original on 10 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  71. ^ Gustke, Constance (23 November 2011). "The Pros And Cons Of Biting on Bitcoins". CNBC. Archived from the original on 19 January 2013. Retrieved 4 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  72. ^ Gloria Goodale, Christian Science Monitor (17 September 2013). "The Rise Of Bitcoin: Is It A Solution Or Menace?". Business Insider. Retrieved 25 November 2013.
  73. ^ Hough, Jack (10 June 2011). "The Bitcoin Triples Again". The Wall Street Journal. New York. Archived from the original on 12 April 2013. To recap, it's is a purely online currency with no intrinsic value; its worth is based solely on the willingness of holders and merchants to accept it in trade. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  74. ^ Foxman, Simone (2 April 2013). "How to short bitcoins (if you really must)". Quartz. Archived from the original on 29 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  75. ^ Simonite, Tom (12 June 2013). "Bitcoin Millionaires Become Investing Angels". MIT Technology Review. Retrieved 13 June 2013.
  76. ^ For lack of mainstream use, see Chen, Adrian (1 June 2011). "The Underground Website Where You Can Buy Any Drug Imaginable". Archived from the original on 26 July 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help). Gawker.
  77. ^ Timothy B. Lee and Hayley Tsukayama (2 October 2013). "Authorities shut down Silk Road, the world's largest Bitcoin-based drug market". The Washington Post. Retrieved 21 October 2013.
  78. ^ Sanati, Cyrus (18 December 2012). "Bitcoin looks primed for money laundering". money.cnn.com. CNN. Retrieved 18 October 2013.
  79. ^ a b "Bitcoins Virtual Currency: Unique Features Present Challenges for Deterring Illicit Activity" (PDF). Cyber Intelligence Section and Criminal Intelligence Section. FBI. 24 April 2012. Retrieved 20 October 2013.
  80. ^ Lee, Timothy (20 March 2013). "US regulator Bitcoin Exchanges Must Comply With Money Laundering Laws". Arstechnica. Archived from the original on 7 April 2013. Bitcoin miners must also register if they trade in their earnings for dollars. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  81. ^ "US govt clarifies virtual currency regulatory position". Finextra. 19 March 2013. Archived from the original on 9 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  82. ^ "Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies" (PDF). Department of the Treasury Financial Crimes Enforcement Network. Retrieved 19 March 2013.
  83. ^ Vaishampayan, Saumya (19 August 2013). "Bitcoins are private money in Germany". Marketwatch. Archived from the original on 1 September 2013.
  84. ^ a b Nestler, Franz (16 August 2013). "Deutschland erkennt Bitcoins als privates Geld an (Germany recognizes Bitcoin as private money)". Frankfurter Allgemeine Zeitung.
  85. ^ "Virtual Money Draws Notice of Regulators". The New York Times. 14 November 2013.
  86. ^ Saleha Mohsin (13 December 2013) Bitcoins Fail Currency Test in Scandinavia’s Richest Nation Bloomberg. Retrieved 13 December 2013
  87. ^ Bitcoin Financial (15 December 2013) Bitcoin Officially Confirmed Legal and Unregulated in Europe Retrieved 16 December 2013
  88. ^ Strauss, Steven (04/14/201). "Nine Trust-Based Problems With Bitcoin". huffingtonpost.com. TheHuffingtonPost.com, Inc. Retrieved 20 October 2013. {{cite web}}: Check date values in: |date= (help)
  89. ^ McMillan, Robert (2 October 2013). "Bitcoin Values Plummet $500M, Then Recover, After Silk Road Bust". Wired. Retrieved 24 November 2013.
  90. ^ Ball, James (22 March 2013). "Silk Road: the online drug marketplace that officials seem powerless to stop". theguardian.com. Guardian News and Media Limited. Retrieved 20 October 2013.
  91. ^ Wyher, Tommy (19 October 2013). "The Rise and Rise of Bitcoin". The Huffington Post. Thehuffingtonpost.com, Inc. Retrieved 21 October 2013.
  92. ^ Mardlin, John Jeffrey (2 October 2013). "How Will The FBI Shut Down Of Silk Road Affect Bitcoins?". Quora. Forbes. Retrieved 21 October 2013.
  93. ^ Geuss, Megan (24 August 2013). "Firm says online gambling accounts for almost half of all Bitcoin transactions". Ars Technica. Retrieved 21 October 2013.
  94. ^ a b Christin, Nicolas (2013). Traveling the Silk Road: A Measurement Analysis of a Large Anonymous Online Marketplace (PDF). Carnegie Mellon INI/CyLab. p. 8. Retrieved 22 October 2013.
  95. ^ Smith, Gerry (15 April 2013). "How Bitcoin Sales Of Guns Could Undermine New Rules". huffingtonpost.com. TheHuffingtonPost.com, Inc. Retrieved 20 October 2013.
  96. ^ "EBA Warning on Virtual Currencies" (PDF). European Banking Authority. Retrieved 13 December 2013.
  97. ^ Meiklejohn, Sarah; et al. (23 October 2013 (formal publication)). "A Fistful of Bitcoins: Characterizing Payments Among Men with No Names" (PDF). Association for Computing Machinery (ACM). {{cite web}}: |archive-date= requires |archive-url= (help); Check date values in: |date= and |archivedate= (help); Explicit use of et al. in: |first= (help) Paper is explained by Kirk, Jeremy (28 August 2013). "Bitcoin offers privacy-as long as you don't cash out or spend it". PC World.
  98. ^ Leger, Donna (18 November 2013). "Bitcoin: What is it? What should government do?". USA Today. Retrieved 24 November 2013.
  99. ^ Peter Coogan (17 June 2011). "Bitcoin Botnet Mining". Symantec.com. Archived from the original on 14 September 2012. Retrieved 24 January 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  100. ^ "Researchers find malware rigged with Bitcoin miner". ZDNet. 29 June 2011. Archived from the original on 5 January 2013. Retrieved 24 January 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  101. ^ Goodin, Dan (16 August 2011). "Malware mints virtual currency using victim's GPU". Archived from the original on 23 December 2012. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  102. ^ "Infosecurity - Researcher discovers distributed bitcoin cracking trojan malware". Infosecurity-magazine.com. 19 August 2011. Archived from the original on 3 January 2013. Retrieved 24 January 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  103. ^ "Mac OS X Trojan steals processing power to produce Bitcoins - sophos, security, malware, Intego - Vulnerabilities - Security". Techworld. 1 November 2011. Archived from the original on 18 September 2012. Retrieved 24 January 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  104. ^ "E-Sports Entertainment settles Bitcoin botnet allegations". BBC News. 20 November 2013. Retrieved 24 November 2013.
  105. ^ Skoyles, Jan (20 November 2013). "Is bitcoin better than gold?". Resource Investor. Retrieved 24 November 2013.
  106. ^ Cawrey, Daniel (7 November 2013). "Federal Reserve economist says bitcoin is a remarkable technical achievement". CoinDesk. Retrieved 24 November 2013.
  107. ^ Krugman, Paul (7 September 2011). "Golden Cyberfetters". New York Times. Archived from the original on 11 April 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  108. ^ Krugman, Paul (14 April 2013). "The Antisocial Network". New York Times. Archived from the original on 29 April 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  109. ^ Myhrvold, Conor (28 March 2012). "Larry Summers and the Technology of Money". MIT Technology Review. MIT. Retrieved 27 October 2013.
  110. ^ Holpuch, Amanda (22 November 2013). "Virgin Galactic to accept Bitcoin for space flights". The Guardian. Retrieved 24 November 2013.
  111. ^ Shankland, Stephen (10 December 2013). "PayPal president David Marcus: Bitcoin is good, NFC is bad". CNET. Retrieved 10 December 2013.
  112. ^ Rushe, Dominic (18 November 2013). "Bitcoin hits $700 high as Senate stages hearing on virtual currency". The Guardian. Retrieved 24 November 2013.
  113. ^ Lee, Timothy (23 November 2013). "For Bitcoin, a successful charm offensive on the Hill". Washington Post. Retrieved 24 November 2013.
  114. ^ "'Legitimate' Bitcoin's value soars after Senate hearing". BBC News. 19 November 2013. Retrieved 24 November 2013.
  115. ^ a b c d "How Governments around the world are looking at Bitcoins? Its biggest strength is its weakness". Lets Talk Payments. 12 December 2013. Retrieved 16 December 2013.
  116. ^ "Is Bitoin Legal". 26 November 2013. Retrieved 18 December 2013.
  117. ^ "China Bans Financial Companies From Bitcoin Transactions". Bloomberg. 5 December 2013. Retrieved 16 December 2013.
  118. ^ "Bitcoin's Outlook In China Is Not Looking So Good Right Now". Business Insider. 16 December 2013. Retrieved 16 December 2013.

External links

Look up bitcoin in Wiktionary, the free dictionary.
Wikimedia Commons has media related to BitCoins.
The Wikibook Professionalism has a page on the topic of: BitTorrent and BitCoin
The Wikibook Strategy for Information Markets has a page on the topic of: Micropayments
Retrieved from "https://en.wikipedia.org/w/index.php?title=Bitcoin&oldid=586745110"