Category Archives: Bitcoin

A new product, technology, or innovation such as Bitcoin has the potential to give rise both to frauds and high-risk investment opportunities. U.S. Securities and Exchange Commission

Bitcoin, the first cryptocurrency on the virtual block, has garnered much attention since it was first created in the year 2009. It is an internet currency involving a person to person payment and operates without a third party (bank or central authority) and do not enjoy government backing. Despite not being legal tender, Bitcoin charts high on popularity and its has triggered the launch of many virtual currencies collectively referred to as Altcoins. Thus Bitcoin has played the role of a trend setter for the likes ofLitecoin, Feathercoin, Dogecoin, Zetacoin, Peercoin, MazaCoin, Novacoin, etc.

Those who endorse this digital currency are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. The virtual currency can be exchanged for traditional currencies and its exchange rate against the dollar attracts potential investors. While this new investment space promises high returns, it still has many risks tagged to it, which should be considered before purchasing Bitcoins. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies to make inventors aware of the potential risks involved in Bitcoin investment. The major risks associated with Bitcoins are listed below:

The concept of a virtual currency introduced by Bitcoin is novel and cutting edge but because of being a recent invention, there is no track record or history of credibility to back it. Bitcoins along with otherdigital currencies are in a development phase, still evolving. That said, with their increasing use, Bitcoins are becoming less experimental. Still, they carry high risk and are not meant for risk averse investors. (See: Basics For Buying And Investing In Bitcoin)

There is high speed in the technology space and there is huge competition for Bitcoin already, with more than 100 such currencies. Though Bitcoin has a huge lead (because of its brand recognition andventure capital money),technological break-through in the form of a better digital currency is a big threat to this cryptocurrency.

Theunpredictable price movement of Bitcoin over a short period of time adds to its riskiness. The factors that cause volatility are high volume buying and selling on exchanges instigated by hidden motives, news regarding its acceptance with merchants, government regulations and laws. The digital currency has high sensitivity to news as it tends to guide the peoples reaction and outlook towards it. According to the Consumer Financial Protection Bureau (CFPB), the price of Bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%. (Related reading: Why Is Bitcoin's Value So Volatile?)

Different approaches are being applied by various countries indealing with Bitcoin. The lack of properly laid out, uniform regulations about Bitcoins (and other virtual currency) increases the uncertainty regarding their future. Many government authorities are concerned about the use of Bitcoins for speculative trading,money laundering, andcrime (like buying and selling of drugs and other illegal items).

However, with the growing popularity of Bitcoins, government agencies are coming up with proposals regarding Bitcoin and other virtual currencies. The New York State Department of Financial Services proposed regulations that would require companies dealing with the buy, sell, transfer or storage of Bitcoins to record the identity of customers. The Bitcoin transactions will have to be recorded and reported in case of transactions are worth $10,000 or more. In March 2014, the Internal Revenue Service (IRS) decided that Bitcoins will be treated as property for tax purposes.

Tax laws and regulations regarding Bitcoins are still involving and will witness many metamorphoses before the final version is decided. The riskiness in holding Bitcoins is because of the uncertainty of the course that the authorities may take to deal with it, which raises questions over its longevity and usability. (See: Bitcoin IRS Tax Guide For Individual Filers)

Bitcoin does not offer consumer protection, as they are not insured by theFederal Deposit Insurance Corporation (FDIC). When any transaction is carried out with Bitcoins, it can only be reversed if the person who has received them refunds them. There is no involvement of a third party or a payment processor as in the case of a debit or credit card. Bitcoins are in a way similar to cash transactions involving two parities - giver and taker. Thus it is a good idea to use Bitcoinswith organizations or people who are known and trusted.

Read the original post:
The Risks Of Buying Bitcoin

Investing.com -

Investing.com - Bitcoin prices rallied sharply on Monday to hit the highest level in more than two weeks as a wave of technical buying kicked in after prices broke above a key resistance level.

Bitcoin (BTC/USD) touched a session high of $376.04 on Slovenia-based BitStamp earlier in the day, the most since October 23.

Prices last traded at $374.35 during U.S. morning hours, up $16.35, or 4.57%.

The price of a bitcoin on Bulgaria-based BTC-e added $14.39, or 4.04%, to trade at $370.51, while prices on Singapore-based itBit advanced $6.26, or 1.74%, to trade at $366.24.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency tacked on 2.45% to trade at $372.19.

Bitcoin's gains accelerated after prices broke above key resistance close to the $370-level, triggering fresh buy orders amid bullish chart signals.

Over the past couple of weeks, the price of Bitcoin has remained relatively stable, with prices consolidating in a narrow range between the $320-and $360-level.

Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) rallied 6.39, or 2.22%, to trade at 294.89 on U.S.-based Kraken Exchange.

Elsewhere, yuan-denominated Bitcoin prices on Shanghai-based BTC China edged up 37.20 yuan, or 1.68%, to trade at 2,245.54 yuan, while prices on Beijing-based OKCoin increased 69.79 yuan, or 3.2%, to trade at 2,249.79 yuan.

Excerpt from:
Bitcoin prices rally 5% to hit 2-week high on technical buying

Mining Bitcoin. SuperPeople Mavrocoin.
I welcome SuperPeople community. My name #39;s Musliman HT , my hyperlink to validator http://super-ppl.com/profile/1099/ SuperPeople community http://bit.ly/spplgoogle http://bit.ly/spplworld...

By: Musliman HT

See the original post here:
Mining Bitcoin. SuperPeople Mavrocoin. - Video

#HackerKast Drupal Compromise, Verizon #39;s #39;Perma-Cookie, #39; Tor + Bitcoin Decloaking and Formula One
This week Jeremiah Grossman, Robert Hansen and Matt Johansen discuss the latest around the recent compromise to Drupal which affects any Drupal 7 site that w...

By: WhiteHat Security

Originally posted here:
#HackerKast Drupal Compromise, Verizon's 'Perma-Cookie,' Tor + Bitcoin Decloaking and Formula One - Video

BitPay Brings NFC to Bitcoin in new Bitcoin Checkout App
BitPay #39;s newest Point-Of-Sale Bitcoin Checkout App now available on the Google Play Store is the first to use NFC technology for Bitcoin payments. This short...

By: BitPay

Read more from the original source:
BitPay Brings NFC to Bitcoin in new Bitcoin Checkout App - Video

The Non Dutch Bitcoin Mining Operation -Super big Asic mining rig!1
Start Mining Today in the Cloud Whit Genesis Mining https://www.genesis-mining.com/a/447 By usig the promo code MOON you will get an ...

By: EpicNorthKorea

Read more from the original source:
The Non Dutch Bitcoin Mining Operation -Super big Asic mining rig!1 - Video

#Bitcoin discussed and questioned: Why do we not work on limitations and weaknesses? 1/2.
Content: bitcoin weakness, question crypto currency, currency alternatives, marketing bitcoin, bitcoin push, peanne boring bitcoin, self sustainable growth, ...

By: Klaus-Dieter Hinck

Read more here:
#Bitcoin discussed and questioned: Why do we not work on limitations and weaknesses? 1/2. - Video

BITCOIN RUSH | episode 26 - THE crypto show
Circle, BTCsx, DarkCoin, TheOpenMinute w/Mr.ChrisEllis, ShillingCoin, Money 20/20, TweetOfTheWeek w/BitcoinBlog Btc donations will be used wisely: 17vPhPit8cZP3sspyFw57f4Tj98ab9Hm3g ...

By: World Crypto Network

Read the original post:
BITCOIN RUSH | episode 26 - THE crypto show - Video

Oportunidade Bitcoin - Fernando Bitti Loureiro no Innovation Experts #39;14
Convite para palestra #39; #39;Oportunidade Bitcoin - como aproveitar a revoluo das criptomoedas nos negcios #39; #39; -- http://www.innovationexperts.com.br.

By: Silvia Pahins

Here is the original post:
Oportunidade Bitcoin - Fernando Bitti Loureiro no Innovation Experts'14 - Video

ItBit Bitcoin exchange banned in the USA BTC to Euro - Bobby Cho interview at Money 20/20
Quick Bit Interview with Bobby Cho of itBit.com. itBit the Global digital crypto currency exchange is not for USA customers because of violent threats from the US government. Unlike other exchanges...

By: Bit n Mortar

Here is the original post:
ItBit Bitcoin exchange banned in the USA BTC to Euro - Bobby Cho interview at Money 20/20 - Video