What is bitcoin? A look at the digital currency

What is bitcoin? A look at the digital currency

Australian police raided a home and office Wednesday that, according to technology websites, belongs to the founder of the virtual currency, bitcoin. However, the origin of the currency remains murky, as is the identity of the founder. Here’s a brief explanation of what bitcoins are, how exchanging the digital money works and why it’s popular among some denizens of the web.

BITCOINS ARE VIRTUAL MONEY

Bitcoin is an online currency that permits people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit card issuers or other third parties. Transactions can be made anonymously, making the currency popular among people who want to conceal their financial activity. As a result, this exotic form of money has become popular with libertarians as well as tech enthusiasts, speculators—and criminals. Bitcoins are basically lines of computer code that are digitally signed each time they travel from one possessor to the next.

HOW BITCOIN CAME TO BE

It’s a mystery. Bitcoin was launched in two thousand nine by a person or group of people operating under the name Satoshi Nakamoto and then adopted by a puny clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention, but proponents say that doesn’t matter; the currency obeys its own, internal logic.

ALL I Truly WANT IS A PACK OF GUM. WILL THIS BITCOIN COVER THAT?

Like any other currency, bitcoins are only worth as much as you and your counterpart want them to be. In its early days, boosters interchanged bitcoins back and forward for minor favors or just as a game. One website even gave them away for free. As the market matured, the value of each bitcoin grew. At its height in late 2013, a single bitcoin was valued above $1,100. On Wednesday, it was worth about $415.

I’VE ALWAYS HATED PENNIES AND I CAN THINK OF NOTHING BETTER THAN TO TRADE IN ALL MY CASH FOR BITCOINS RIGHT NOW

That would be a questionable decision. Businesses ranging from blogging platform WordPress to retailer Overstock have hopped on the bitcoin bandwagon amid a flurry of media coverage, but it’s still not as prevalent as cash. On the one palm, leading bitcoin payment processor BitPay works with more than 60,000 businesses and organizations—roughly three times more than it did last year. The total number of bitcoin transactions has climbed to over 200,000 per day, more than dual the number at the embark of this year, according to bitcoin wallet site blockchain.info.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals’ greed for the collective good. A network of tech-savvy users called miners keep the system fair by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn’t be an issue.

HOW BITCOIN IS VULNERABLE

Much of the mischief surrounding bitcoin occurs at the places where people store their digital cash or exchange it for traditional currencies, like dollars or euros. If an exchange has messy security, or if a person’s electronic wallet is compromised, then the money can lightly be stolen. The fattest scandal involved Japan-based bitcoin exchange Mt. Gox, which went offline in February 2014. Its CEO, Mark Karpeles, said ems of thousands of bitcoins worth several hundred million dollars were unaccounted for. He was arrested on suspicion of inflating his cash account in August.

A RAID DOWN UNDER

Technology publications Wired and Gizmodo published reports this week claiming an Australian businessman is bitcoin’s likely inventor. The Australian Federal Police said a search of the man’s home and office Wednesday was related to a tax investigation and not latest media reports on bitcoin.

© two thousand fifteen The Associated Press. All rights reserved.

Explore further

Australia says Bitcoin not taxable as currency

Crypto-currencies such as Bitcoin should not be considered as money or a foreign currency when it comes to taxation, Australia’s tax authority ruled Wednesday.

Bitcoin virtual currency users and motivations

A fresh examine uses Google Trends data in an attempt to understand who uses the anonymous crypto-currency Bitcoin, and for what purposes.

Trading in bitcoin made simpler through fresh exchange

Investors can for the very first time bet on the value of bitcoins through an established stock exchange after Nasdaq launched an index based on the cybercurrency in Stockholm, Sweden.

Overstock.com installs bitcoin ATM at Utah headquarters

Online retailer Overstock.com has installed a bitcoin ATM at its corporate headquarters in Salt Lake City.

Australian identified as possible Bitcoin founder: reports (Update)

Australian entrepreneur Craig Wright has been identified by tech publications as possibly the mysterious founder of online cryptocurrency Bitcoin, shortly before his Sydney home was reportedly raided in a tax probe Wednesday.

Top EU court rules Bitcoin exchange tax-free in Europe

The EU’s top court ruled Thursday that the exchange of Bitcoin and other virtual currencies should be treated just like traditional money in Europe and not incur any sales tax.

What is bitcoin? A look at the digital currency

What is bitcoin? A look at the digital currency

Australian police raided a home and office Wednesday that, according to technology websites, belongs to the founder of the virtual currency, bitcoin. However, the origin of the currency remains murky, as is the identity of the founder. Here’s a brief explanation of what bitcoins are, how exchanging the digital money works and why it’s popular among some denizens of the web.

BITCOINS ARE VIRTUAL MONEY

Bitcoin is an online currency that permits people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit card issuers or other third parties. Transactions can be made anonymously, making the currency popular among people who want to conceal their financial activity. As a result, this exotic form of money has become popular with libertarians as well as tech enthusiasts, speculators—and criminals. Bitcoins are basically lines of computer code that are digitally signed each time they travel from one proprietor to the next.

HOW BITCOIN CAME TO BE

It’s a mystery. Bitcoin was launched in two thousand nine by a person or group of people operating under the name Satoshi Nakamoto and then adopted by a puny clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention, but proponents say that doesn’t matter; the currency obeys its own, internal logic.

ALL I Indeed WANT IS A PACK OF GUM. WILL THIS BITCOIN COVER THAT?

Like any other currency, bitcoins are only worth as much as you and your counterpart want them to be. In its early days, boosters interchanged bitcoins back and forward for minor favors or just as a game. One website even gave them away for free. As the market matured, the value of each bitcoin grew. At its height in late 2013, a single bitcoin was valued above $1,100. On Wednesday, it was worth about $415.

I’VE ALWAYS HATED PENNIES AND I CAN THINK OF NOTHING BETTER THAN TO TRADE IN ALL MY CASH FOR BITCOINS RIGHT NOW

That would be a questionable decision. Businesses ranging from blogging platform WordPress to retailer Overstock have hopped on the bitcoin bandwagon amid a flurry of media coverage, but it’s still not as prevalent as cash. On the one palm, leading bitcoin payment processor BitPay works with more than 60,000 businesses and organizations—roughly three times more than it did last year. The total number of bitcoin transactions has climbed to over 200,000 per day, more than dual the number at the embark of this year, according to bitcoin wallet site blockchain.info.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals’ greed for the collective good. A network of tech-savvy users called miners keep the system fair by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn’t be an issue.

HOW BITCOIN IS VULNERABLE

Much of the mischief surrounding bitcoin occurs at the places where people store their digital cash or exchange it for traditional currencies, like dollars or euros. If an exchange has filthy security, or if a person’s electronic wallet is compromised, then the money can lightly be stolen. The thickest scandal involved Japan-based bitcoin exchange Mt. Gox, which went offline in February 2014. Its CEO, Mark Karpeles, said ems of thousands of bitcoins worth several hundred million dollars were unaccounted for. He was arrested on suspicion of inflating his cash account in August.

A RAID DOWN UNDER

Technology publications Wired and Gizmodo published reports this week claiming an Australian businessman is bitcoin’s likely inventor. The Australian Federal Police said a search of the man’s home and office Wednesday was related to a tax investigation and not latest media reports on bitcoin.

© two thousand fifteen The Associated Press. All rights reserved.

Explore further

Australia says Bitcoin not taxable as currency

Crypto-currencies such as Bitcoin should not be considered as money or a foreign currency when it comes to taxation, Australia’s tax authority ruled Wednesday.

Bitcoin virtual currency users and motivations

A fresh examine uses Google Trends data in an attempt to understand who uses the anonymous crypto-currency Bitcoin, and for what purposes.

Trading in bitcoin made simpler through fresh exchange

Investors can for the very first time bet on the value of bitcoins through an established stock exchange after Nasdaq launched an index based on the cybercurrency in Stockholm, Sweden.

Overstock.com installs bitcoin ATM at Utah headquarters

Online retailer Overstock.com has installed a bitcoin ATM at its corporate headquarters in Salt Lake City.

Australian identified as possible Bitcoin founder: reports (Update)

Australian entrepreneur Craig Wright has been identified by tech publications as possibly the mysterious founder of online cryptocurrency Bitcoin, shortly before his Sydney home was reportedly raided in a tax probe Wednesday.

Top EU court rules Bitcoin exchange tax-free in Europe

The EU’s top court ruled Thursday that the exchange of Bitcoin and other virtual currencies should be treated just like traditional money in Europe and not incur any sales tax.

What is bitcoin? A look at the digital currency

What is bitcoin? A look at the digital currency

It’s worth more than an ounce of gold right now, it’s fully digital and it’s the currency of choice for the cyberattackers who crippled computer networks around the world in latest days.

When the attackers’ “ransomware” sprang into activity, it held victims hostage by encrypting their data and requesting they send payments in bitcoins to regain access to their computers. Bitcoin has a fuzzy history, but it’s a type of currency that permits people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.

Here’s a brief look at bitcoin:

HOW BITCOINS WORK

Bitcoin is a digital currency that is not tied to a bank or government and permits users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies.

HOW MUCH IS IT WORTH?

One bitcoin recently traded for $1,734.65, according to Coinbase, a company that helps users exchange bitcoins. That makes it more valuable than an ounce of gold, which trades at less than $1,230.

The value of bitcoins can sway sharply, however. A year ago, one was worth $457.04, which means that it’s almost quadrupled in the last twelve months. But its price doesn’t always go up. A bitcoin’s value plunged by twenty three percent against the dollar in just a week this past January. It fell by the same amount again in ten days during March.

WHY BITCOINS ARE POPULAR

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one proprietor to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators—and criminals.

IS IT Indeed ANONYMOUS?

Yes, to a point. Transactions and accounts can be traced, but the account owners aren’t necessarily known. However, investigators might be able to track down the owners when bitcoins are converted to regular currency.

For now, the three accounts tied to the ransomware attack emerge untouched—and it’ll be difficult for perpetrators to cash in anytime soon without getting traced.

Security experts say the amount of ransom collected so far emerges puny relative to the extent of the outbreak. Tom Bossert, President Donald Trump’s adviser for homeland security and counterterrorism, says it emerges less than $70,000 has been paid in ransoms.

It’s possible, however, that there are unknown accounts beyond the three identified.

WHO’S USING BITCOIN?

Some businesses have leaped on the bitcoin bandwagon amid a flurry of media coverage. Overstock.com accepts payments in bitcoin, for example.

The currency has become popular enough that more than 300,000 daily transactions have been occurring recently, according to bitcoin wallet site blockchain.info. A year ago, activity was closer to 230,000 transactions per day.

Still, its popularity is low compared with cash and cards, and many individuals and businesses won’t accept bitcoins for payments.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals’ greed for the collective good. A network of tech-savvy users called miners keep the system fair by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn’t be an issue.

HOW BITCOIN CAME TO BE

It’s a mystery. Bitcoin was launched in two thousand nine by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a puny clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesn’t matter: The currency obeys its own internal logic.

An Australian entrepreneur last year stepped forward and claimed to be the founder of bitcoin, only to say days later that he did not “have the courage” to publish proof that he is.

© two thousand seventeen The Associated Press. All rights reserved.

Explore further

What is bitcoin? A look at the digital currency

Australian police raided a home and office Wednesday that, according to technology websites, belongs to the founder of the virtual currency, bitcoin. However, the origin of the currency remains murky, as is the identity of .

Factbox: What is Bitcoin?

Australian entrepreneur Craig Wright on Monday exposed himself as the creator of the virtual Bitcoin currency to media outlets, the Big black cock, The Economist and GQ magazine.

Trading in bitcoin made simpler through fresh exchange

Investors can for the very first time bet on the value of bitcoins through an established stock exchange after Nasdaq launched an index based on the cybercurrency in Stockholm, Sweden.

Australia says Bitcoin not taxable as currency

Crypto-currencies such as Bitcoin should not be considered as money or a foreign currency when it comes to taxation, Australia’s tax authority ruled Wednesday.

Bitcoin ‘mining pool’ promises to stay puny

The largest group of bitcoin miners, which maintains and processes transactions in the digital currency, is promising to avoid majority control of the currency as a makeshift measure to maintain the payment system’s credibility.

Fresh system makes it stiffer to track Bitcoin transactions

Researchers from North Carolina State University, Boston University and George Mason University have developed a Bitcoin-compatible system that could make it significantly more difficult for observers to identify or track .

What is bitcoin? A look at the digital currency

What is bitcoin? A look at the digital currency

It’s worth more than an ounce of gold right now, it’s fully digital and it’s the currency of choice for the cyberattackers who crippled computer networks around the world in latest days.

When the attackers’ “ransomware” sprang into activity, it held victims hostage by encrypting their data and requiring they send payments in bitcoins to regain access to their computers. Bitcoin has a fuzzy history, but it’s a type of currency that permits people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.

Here’s a brief look at bitcoin:

HOW BITCOINS WORK

Bitcoin is a digital currency that is not tied to a bank or government and permits users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies.

HOW MUCH IS IT WORTH?

One bitcoin recently traded for $1,734.65, according to Coinbase, a company that helps users exchange bitcoins. That makes it more valuable than an ounce of gold, which trades at less than $1,230.

The value of bitcoins can sway sharply, tho’. A year ago, one was worth $457.04, which means that it’s almost quadrupled in the last twelve months. But its price doesn’t always go up. A bitcoin’s value plunged by twenty three percent against the dollar in just a week this past January. It fell by the same amount again in ten days during March.

WHY BITCOINS ARE POPULAR

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one possessor to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators—and criminals.

IS IT Indeed ANONYMOUS?

Yes, to a point. Transactions and accounts can be traced, but the account owners aren’t necessarily known. However, investigators might be able to track down the owners when bitcoins are converted to regular currency.

For now, the three accounts tied to the ransomware attack show up untouched—and it’ll be difficult for perpetrators to cash in anytime soon without getting traced.

Security experts say the amount of ransom collected so far shows up puny relative to the extent of the outbreak. Tom Bossert, President Donald Trump’s adviser for homeland security and counterterrorism, says it emerges less than $70,000 has been paid in ransoms.

It’s possible, however, that there are unknown accounts beyond the three identified.

WHO’S USING BITCOIN?

Some businesses have hopped on the bitcoin bandwagon amid a flurry of media coverage. Overstock.com accepts payments in bitcoin, for example.

The currency has become popular enough that more than 300,000 daily transactions have been occurring recently, according to bitcoin wallet site blockchain.info. A year ago, activity was closer to 230,000 transactions per day.

Still, its popularity is low compared with cash and cards, and many individuals and businesses won’t accept bitcoins for payments.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals’ greed for the collective good. A network of tech-savvy users called miners keep the system fair by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn’t be an issue.

HOW BITCOIN CAME TO BE

It’s a mystery. Bitcoin was launched in two thousand nine by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a petite clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesn’t matter: The currency obeys its own internal logic.

An Australian entrepreneur last year stepped forward and claimed to be the founder of bitcoin, only to say days later that he did not “have the courage” to publish proof that he is.

© two thousand seventeen The Associated Press. All rights reserved.

Explore further

What is bitcoin? A look at the digital currency

Australian police raided a home and office Wednesday that, according to technology websites, belongs to the founder of the virtual currency, bitcoin. However, the origin of the currency remains murky, as is the identity of .

Factbox: What is Bitcoin?

Australian entrepreneur Craig Wright on Monday exposed himself as the creator of the virtual Bitcoin currency to media outlets, the Big black cock, The Economist and GQ magazine.

Trading in bitcoin made simpler through fresh exchange

Investors can for the very first time bet on the value of bitcoins through an established stock exchange after Nasdaq launched an index based on the cybercurrency in Stockholm, Sweden.

Australia says Bitcoin not taxable as currency

Crypto-currencies such as Bitcoin should not be considered as money or a foreign currency when it comes to taxation, Australia’s tax authority ruled Wednesday.

Bitcoin ‘mining pool’ promises to stay puny

The largest group of bitcoin miners, which maintains and processes transactions in the digital currency, is promising to avoid majority control of the currency as a improvised measure to maintain the payment system’s credibility.

Fresh system makes it tighter to track Bitcoin transactions

Researchers from North Carolina State University, Boston University and George Mason University have developed a Bitcoin-compatible system that could make it significantly more difficult for observers to identify or track .

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