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Dear Lifehacker, Everywhere I go, I see Bitcoin popping up more and more. Many web services accept payments in the form of Bitcoin, and some even sell their homes for the stuff . I know it's a digital currency, but where does it come from and how is its value determined? More importantly, should I bother earning it and using it for any reason?
The Beginners Guide To Bitcoin – Everything You Need To Know - Monetarism - A UK Money and Personal Finance BlogIn February 2013, version 0.8.0 of Bitcoin was released . This virtual payments system is the financial equivalent of Latin, the language with no native speakers. In the case of Bitcoin, though, what you are dealing with is a financial structure with no central bank, no one regulatory body as such, and no physical form. That may sound odd – so let’s look in more detail at Bitcoin, how it works, and what its future might be. What is Bitcoin?
About a year ago I wrote an article, published on this site, titled " Understanding Bitcoin ". It was an attempt at introducing Bitcoin technology and analysing its social implications. Now Bitcoin markets are trading at record prices of over $40. This increase, along with a series of recent developments, marks a new overall state of affairs for this project. To make better sense - beyond the mere market numbers - of the current state of the Bitcoin economy, it is worth it to make a brief recount of the way Bitcoin has evolved in recent months.
With the growing popularity and perhaps relevance of a globally decentralized currency system in a world adrift in fiat devaluation death-matches, it is perhaps interesting to understand just who these Bitcoin'ers are? The ongoing survey of Bitcoin users (here) has some intriguing results already : The 'average Bitcoin user' is male (96%), 32.7 years old, libertarian / anarcho-capitalist (37%), non-religious (61%), with a full time job (43%), and is in a relationship (56%) . The biggest motivation for new users are curiosity, profit, and politics; and 39% of users do not drink, smoke, gamble, or take drugs. Just over half of users have mined bitcoins and the greatest community fear for Bitcoin is “regulatory/legal intervention” followed by ”reputation problems”.
This week, BitCoin (BTC), the virtual cryptocurrency that is not supported by any national bank or government, reached an all-time trading record, selling at $33.22 for a single BTC. Kim Dotcom’s cloud hosting website Mega has recently started accepting BitCoins as a form of payment, following the example set by WordPress , Reddit and countless other online businesses. But how do you begin working with BitCoins? CBT Nuggets, an American IT training company, has published a series of free online training videos , which cover a variety of BitCoin-related topics from setting up and using a BitCoin wallet to updating company websites for accepting payments in virtual currency.
***Originally published in Freedom's Phoenix Magazine - April 13, 2012*** Republish, copy, and distribute at will. What it is, how it's used, and why you should care. Erik Voorhees - April 11, 2012 "When a state currency is challenged, the state itself is challenged,
A student start-up launched in July gives consumers easy access to new digital currency that is quickly spreading across cyberspace. Thomas McCabe ’12 founded Get-Bitcoin.com this summer after struggling to find websites that sell Bitcoins, a digital currency created in 2009 that people can use to anonymously trade and buy products from select companies. McCabe said traffic on the website is increasing daily — the site earned over $8,500 in revenue on Monday alone — but the company could potentially face restrictions from the U.S. government. Since Bitcoin trading is anonymous, people often use them to buy or sell illegal drugs and services, and this illegal activity has prompted U.S.
One bitcoin will get you this nerd merit badge. eagleapex's posterous / Flickr In 2009, a programmer who called himself "Satoshi Nakamoto" created bitcoin . The virtual currency took off, but Satoshi's identity has remained a mystery.
<img alt="Illustration: Martin Venezky" src="/magazine/wp-content/images/19-12/mf_bitcoin_f.jpg" title="The story of the virtual currency you can actually spend—if it doesn't get stolen first." width="660" height="595" /> Illustration: Martin Venezky In November 1, 2008, a man named Satoshi Nakamoto posted a research paper to an obscure cryptography listserv describing his design for a new digital currency that he called bitcoin. None of the list’s veterans had heard of him, and what little information could be gleaned was murky and contradictory.
I first heard about Bitcoins seven months ago on the radio. I understood them to be some sort of alternative, online “currency” but it sounded a little too esoteric to me at the time. A few months later I heard about them again in a story covering an underground website called Silk Road that sold drugs, including illicit drugs, and people used Bitcoins to pay for these drugs. Bitcoins were real and being used to buy real products.
The answer is simple. It is because most modern people are prisoners of The Cave. ( http://en.wikipedia....ory_of_the_Cave ) How is this related to biticoin (and gold standard) ? The Richter Report explains here http://www.therichte...&menu_item_id=0
If you haven't already heard about bitcoin , the first popular cypto-currency, you soon will. The idea for the currency is simple. It's a software system that makes it possible to manufacture and trade (P2P), in a public and decentralized way, a limited digital resource.
MILTON FRIEDMAN famously called for the abolition of the Federal Reserve, which he thought ought to be replaced by an automated system which would increase the money supply at a steady, predetermined rate. This, he argued, would put a lid on inflation, setting spending and investment decisions on a surer footing. Now, Friedman's dream has finally been realised—albeit not by a real-world central bank. Bitcoin, the world's "first decentralised digital currency" , was devised in 2009 by programmer Satoshi Nakomoto (thought not to be his—or her—real name). Unlike other virtual monies—like Second Life's Linden dollars, for instance—it does not have a central clearing house run by a single company or organisation.
Global, private and untraceable, it’s the monetary system of choice for libertarians, geeks, businesspeople and, apparently, drug kingpins Earlier this week, two senators sent a letter to the US Attorney General, copied to the Drugs Enforcement Agency, alerting them to the existence of an underground website called Silk Road. Like a lawless eBay, Silk Road users can, according to the senators, “freely purchase and sell illegal drugs . . . from cocaine and heroin, to ecstasy and marijuana”. For this they are using the digital currency Bitcoin. Created in 2009 by an anonymous Japanese computer science student using the pseudonym Satoshi Nakamoto, Bitcoin was initially adopted by hackers as a means of bartering services. Now it is fast becoming the unofficial currency of the web. Anyone can buy virtual “coins” at a variety of online exchanges, using major global currency – but they aren’t just used for drugs.