The Bitcoin: history and evolution 2/2

Acquiring bitcoins
Bitcoins can be bought and sold (ie. exchanged for real currency) to and from individuals or companies. Most known platforms like Bitstamp, Mt.Gox, Btc-e and BtcChina use a bid / ask system.
Today’s value is $461 US for 1 BTC, but this is subject to high fluctuation.
We have seen this exchange rate going from $5 in May 2012 to $1150 in December 2013.
The only country where Bitcoin is illegal is Iceland. However, many other states decided to restrict its use. For instance in China, since December 5, 2013, financial institutions are forbidden to handle Bitcoin transactions. They cannot give pricing in Bitcoin or buy and sell the currency. This statement was the cause of a crash of the bitcoin exchange rate.
In Germany, bitcoin has become an official currency, a way for the German government to perceive tax on it. Profits from this money are subject to an income tax granted at a 25% level and businesses that would use this money will be required to pay a VAT amount for each transaction.
In the United States, the Internal Revenue Service announced in March 2014 that bitcoin would be a form of property rather than a currency, meaning that every transaction where Bitcoin is used as payment would be subjected to capital gains tax and that bitcoin mining would be taxed as well. (suite…)

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The Bitcoin: history and evolution 1/2

  • What is the Bitcoin?

The bitcoin, literally a coin made of bits, is a decentralized digital cryptocurrency created in 2009 by an anonymous developer known under the pseudonym Satoshi Nakamoto. Its symbol is BTC.

  • Decentralized because there is no dependency on one central emitter.
  • Digital because it is created and stored electronically.
  • Crypto because cryptography is used to control the creation and transfer of money.

The bitcoin is a currency while Bitcoin is the payment system used to exchange it.
The bitcoin is very similar to gold. Only 21,000,000 Bitcoins will ever be created as only X amount of gold will ever be discovered on Earth. This is different from usual currencies where central banks can print money at their discretion. (suite…)

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Sudden rise of the virtual money “Bitcoin”

Euros, Dollars…the powerful currencies in the world are in a trusted crisis. These situations create a lot of uncertainty among people and some of them prefer trust the virtual currency “Bitcoin”. With the years the value of this new type of money has strongly increased.
What is « Bitcoin »?
The Bitcoin (BTC) is a decentralized digital currency created in 2009 by a developer known under the pseudonym Satoshi Nakamoto. It is based on an open source solution of peer to peer internet protocol. You can directly exchange your Bitcoins from your personal computer without a financial intermediate. Indeed this currency is distributed on the nodes of the network and uses a strong security with cryptography process. Everything is done to avoid the dependence from one central emitter.
Why this phenomena?
The main advantages of the Bitcoins are the anonymity for the payment and the apolitical nature of the currency. To pay something, you must use a dedicated software using cryptography keys. The money is transferred from a Bitcoin account to another. With the loss of trust and the fluctuation on the actual values (gold, national currencies…), more and more people are using Bitcoins. Recently a Canadian have released his house for 405 000 dollars or…6 750 Bitcoins (at the rate of 1 Bitcoin for 60 Dollars). He hopes to be the first to realize a property transaction with this currency.

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