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Virtual currency: Bits and bob

Virtual currency: Bits and bob

http://www.economist.com/blogs/babbage/2011/06/virtual-currency

Related:  Understand BitcoinsBitcoin

THE BITCOIN BUBBLE 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. That's it. So why the interest in bitcoin? Simple. Digital Black Friday: First Bitcoin "Depression" Hits Much like the New York Stock Exchange, Bitcoin exchanges have suffered from their first massive loss -- a virtual "Black Friday", so to speak. (Source: Google Images) Some say Bitcoins could make buying illegal drugs easier. However, in reality Bitcoins are far from "untraceable".

Bitcoin-Central and Instawallet Hacked As the price for bitcoin soars to new heights it seems that it has gained some unwanted attention. It seems that the black hat fraternity has decided that the time was right to hack a slew of affiliated sites including Bitcoin-Central, Instawallet and Paytunia bringing all sites offline, permanently in the case of Instawallet. You may remember Bitcoin-Central from the news a few months back as the first bitcoin exchange to start down the road to banking legitimacy when they announced that they had partnered with Aqoba and Credit Mutuel to begin operations as Payments Service Provider (PSP). Bitcoin-Central reports that all 41,854.5915 BTC of customer funds (some $5,315,951.67 USD at today’s rates) is stored in bitcoin address 1LrPYjto3hsLzWJNstghuwdrQXB96KbrCy and is fully under control by them. They also report that “Due to the recent and important price fluctuations we will cancel some outstanding orders before reopening. Like this:

Bitcoin’s Collusion Problem Yesterday I questioned whether we should expect demand for Bitcoins to be stable over the long run. Today I want to look at the supply side. A constrained supply of money is important to a currency’s stability. One of Bitcoin’s key selling points is that the number of Bitcoins issued will never exceed 21 million. Digital Black Friday: First Bitcoin "Depression" Hits Much like the New York Stock Exchange, Bitcoin exchanges have suffered from their first massive loss -- a virtual "Black Friday", so to speak. (Source: Google Images) Some say Bitcoins could make buying illegal drugs easier. However, in reality Bitcoins are far from "untraceable". (Source: YouTube/Beardo/Dirt Nasty)

Did A Reporter Just Solve A Bitcoin Mystery? : Planet Money hide caption One bitcoin will get you this nerd merit badge. eagleapex's posterous/Flickr Login Area Friday, August 5th, 2011 From the desk of Tom Williams, operator of MyBitcoin.com For immediate release.

Oleg Andreev : Bitcoin Isn't Evil, and Here's What Gives it Value American economist Paul Krugman recently asked a valid question that is on the minds of many other bitcoin sceptics: where does the value of bitcoin as a unit (BTC) comes from? Yes, bitcoin can be a wonderful technology to transfer ownership of these units, but why should they be worth $1, $1,000 or $1,000,000? Krugman wrote in his piece titled ‘Bitcoin Is Evil’: What Bitcoin Is, and Why It Matters Unlike other currencies, Bitcoin is underwritten not by a government, but by a clever cryptographic scheme. For now, little can be bought with bitcoins, and the new currency is still a long way from competing with the dollar. But this explainer lays out what Bitcoin is, why it matters, and what needs to happen for it to succeed. Where does Bitcoin come from? In 2008, a programmer known as Satoshi Nakamoto—a name believed to be an alias—posted a paper outlining Bitcoin’s design to a cryptography e-mail list.

Bitcoin is not decentralized : Inside 1712B Bitcoin was designed by Satoshi Nakamoto, and the primary client is developed by a bunch of folks at bitcoin.org. Do you care who these people are? In theory, you shouldn’t: all they do is develop an open source client for an open source protocol.

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