What Is Digital (Crypto) Currency-How Does It Work

What is digital money? It is defined as: cash kept and also transferred in electronic form. Seems simple enough, yet how does it all job?

This type of money is believed to be good to use for making acquisitions on the net considering that if it functions the way it was meant to, transactions need to be instead anonymous and untraceable back to the payer or user.

This implies that cyberpunks would no more manage to gather individual information from individuals which use their credit cards to make on-line purchases. This would certainly lower the number of taken identifications that occur everyday.

That can help you understand even more of, “just what is digital money?” I have actually done a fair bit of study on the subject as well as have discovered that there are many different types around, each with it’s very own special qualities.

Below are merely a few with their descriptions adhering to:

Digital Gold Money– This kind is backed by gold saved in vaults. The gold offers an additional step of security and also if you hold this kind of money, you can perhaps straight trade it for strong gold bullion.
Central Money Systems– these resemble PayPal as well as these business enable you to send out money throughout the globe as long as you have cash in the account. For some services offered by these sorts of firms, you obtain asked for a fee on the receivers end of the purchase.

Decentralized Currency Units– Like Bitcoin are all based upon cryptography and/or rely on networks. Also called Hard Electronic Money, it is planned to be more like utilizing money to make your purchase but your transaction is non-refundable as soon as made. This sort of system simply works in one direction.

The E-cash suggestion has advanced along with the development of the Net. Individuals simply do not really feel comfortable with giving their individual credit card info over the Web when making a purchase.

A lot of bad factors could happen like identification burglary. Nobody desires their identification swiped.

So, numerous business have actually tried to produce this kind of payment or monetary system to lessen the dangers of shopping online.

Many nations have actually successfully created systems for “internal” use such as Hong Kong’s Octopus card. This card functions just like a type of debit card where the user loads money onto the card then all the cash is placed into a financial institution. They could then utilize the card for anything they need to use it for.

Some countries are dealing with or have systems that enable the individual to move money via mobile devices. I believe this is rather like what Chase permits their consumers do. Their consumers can take a photo of their check, front and back, with their phone and also make their deposit electronically.

I do hope that this offers you some suggestion of what is electronic currency as well as how it is trying to take it’s area on the planet of e-commerce. There may be a little additional to it compared to I could describe in simply one little post but I believe you can acquire a smart idea.

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What Is Digital (Crypto) Currency-How Does It Work

What is digital money? It is specified as: money kept and moved in digital type. Seems basic enough, yet how does it all job?

This kind of currency is thought to excel to make use of for making purchases on the web considering that if it functions the way it was suggested to, deals ought to be rather confidential and also untraceable back to the payer or individual.

This implies that hackers would certainly no more be able to collect personal info from folks which utilize their charge card to make online investments. This would certainly reduce the variety of swiped identities that happen daily.

To help you realise even more of, “what is digital money?” I have done quite a bit of research on the subject as well as have actually discovered that there are numerous various kinds around, each with it’s very own one-of-a-kind high qualities.

Right here are merely a few with their descriptions complying with:

Digital Gold Money– This kind is supported by gold kept in vaults. The gold provides an added step of security and also if you hold this type of currency, you could possibly straight exchange it for strong gold bullion.
Central Money Systems– these are like PayPal and also these business allow you to send cash throughout the globe as long as you have money in the account. For some solutions provided by these sorts of business, you acquire billed a cost on the receivers end of the purchase.

Decentralized Currency Equipments– Like Bitcoin are all based on cryptography and/or rely on networks. Additionally called Hard Electronic Currency, it is planned to be more like using cash to make your purchase yet your transaction is non-refundable as soon as made. This type of system simply operates in one direction.

The E-cash suggestion has advanced together with the development of the Net. Folks just do not feel comfy with offering their personal charge card information over the Net when purchasing.

Too many bad points could take place like identification theft. No one desires their identification stolen.

So, numerous firms have tried to create this sort of settlement or financial system to lessen the dangers of purchasing online.

Numerous nations have successfully produced systems for “in-house” usage such as Hong Kong’s Octopus card. This card functions just like a kind of debit card where the individual lots money into the card then all the money is placed into a bank. They can then make use of the card for anything they should use it for.

Some nations are working with or have systems that allow the individual to move cash through cell phones. I think this is rather like just what Chase lets their customers do. Their customers could take an image of their check, front and also back, with their phone as well as make their down payment digitally.

I do hope that this gives you some idea of exactly what is electronic currency and also how it is attempting to take it’s location in the world of e-commerce. There could be a little more to it than I could explain in simply one little write-up but I believe you can obtain a great idea.

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The Ultimate Bitcoin Black Friday Guide

 

Bitcoin

The Ultimate Bitcoin Black Friday Guide

by Alyssa Hertig 

Want to enjoy lavish Black Friday discounts with Bitcoin without the lines, camping out for several days, and the risk of violence?

Maybe Bitcoin Black Friday is the extravaganza for you. Last year was huge. In fact, it was the “most popular day in the history of Bitcoin commerce.” BitPay broke records, the official website BitcoinBlackFriday.com pulled in 100,000 unique visitors, and even Ashton Kutcher participated.

You can check out a nicely compiled infograph of last year’s figures here.

Thus, expectations are high for 2014. From Newegg electronics to bear calendars, there’s plenty to choose from. Here’s a guide to the best deals for Bitcoin.

BitcoinBlackFriday.com

The official Bitcoin Black Friday made its debut a couple years ago. Rumors are swirling that a coalition of 1,200 merchants will be participating, which is twice as many as last year and 24 times more than the year before.

“We’re really excited for this year’s event because it has all the opportunity to be much bigger than last year’s event” says Jon Holmquist, the founder of Bitcoin Friday, ”Even though the Bitcoin prices might be lower than last year, the quantity and caliber of merchants participating this year has improved greatly. Consumers should be able to do most, if not all, of their holiday shopping with Bitcoin this year.”

Cruise over to BitcoinBlackFriday.com to participate. They’ve already launched a preview of the items for sale. A mix of merchants big and small, international and local, are eager to offer discounts for Bitcoin users.

Holmquist told CNBC that they have special things planned for this year:

“We have two things planned. First is the ability to instantly purchase Bitcoin with your credit card: a small amount, like US$25 worth. For most people, that’s not too much of a risk. And we’re also going to have a section [of the site] where you can purchase something for a small amount of money.”

Mixed Tees

Mixed Tees, the company with witty graphic tees fueled by artists, will sell T-shirts for as low as US$5. Those purchasing with Bitcoin and participating in the Thunderclap campaign will get an extra 10% off.

Unique Bitcoin wallets

Bitcoin storage is getting creative. With Cryptoart, bitcoins can be stored in some fancy limited edition pieces. It’s reminiscent of the classic store-a-fortune-behind-a-painting trick, though you can skip digging a hole in your wall to fill a cumbersome safe.

All Cryptoart is 50% off for the big day. In addition, the art retailer will give away 100 paintings.

Woodwallets: If you are picturing wallets made of wood, you have the right idea. They’re rock-solid and water proof cards. All products will be 50% off.

Newegg

Newegg is also participating for the first time since they got onboard the Bitcoin merchant bandwagon.

Bitcoin Black Friday starts in full on November 28, but NewEgg has kicked off the Bitcoin shopping event by offering fourteen deals at discounts past those you can get by paying with a credit card. If you use Bitcoin you can get an Xbox One Console bundle for only US$299.99. Additionally most of the deals going live on Friday are now viewable on the Bitcoin Black Friday website. The table below lists some of the hot deals currently available to Bitcoin users.

Black Friday Preview from BitPay

Today, BitPay posted a sneak preview of its merchants that are offering great Bitcoin Black Friday deals for BTC shoppers. Here’s a few of the many BitPay merchants (list excludes merchants already mentioned) with sales on Bitcoin Black Friday:

  • SchiffGold is listing 1-Oz silver bars for only 79 cents over spot, in addition to lowering their minimum order and offering free shipping for their Bitcoin customers.

  • BitcoinBowlPackages.com will be selling select Bitcoin Bowl ticket and hotel packages at a discounted rate of 25% off. Learn how to travel to the world’s largest Bitcoin event for less here.

  • Gyft will be listing deals for gift card buyers at BitcoinBlackFriday.com.

  • Black Country Rock Media will offer Bitcoin-exclusive mixtape sales as well 50% off of five different vinyl records when purchased with Bitcoin.

  • SurfEasy will allow Bitcoin users to protect their privacy for less with its no-log VPN service, available on Friday for 50% off.

  • Amagi Metals is providing free shipping on domestic Bitcoin orders of US$75 or more with code “BBF2014.”

  • Fangamer will reward bitcoin purchases of its gaming-themed apparel and merchandise with gift cards of up to US$50 as well as free or discounted shipping.

  • Silver Gold Bull will be taking 1% off of the price all products and providing Bitcoin shoppers free shipping for orders over US$250.

  • Soundwallet, which allows Bitcoin users to record their private keys on vinyl, is offering 25% off of its unique storage solution for shoppers using the code “Bitcoin.”

More deals to keep in mind

Purse.io – buy discounted Amazon products with a workaround

Purse.io offers big savings on Amazon products—the average savings is 17%. “Finally, a reason to use Bitcoin,” is Purse.io’s slogan. It’s confusing, but all you have to do is put the link to the Amazon product in Purse.io, and wait to see if it’ll go through. Making cheaper stuff a reality is definitely a reason to use it.

- Purse.io price comparison for BTC shoppers

Signed Bitcoin book

CNBC’s Brian Kelly, once a Bitcoin skeptic, is launching a new book about Bitcoin: “The Bitcoin Big Bang: How Alternative Currencies Are About to Change the World.” If you purchase the book with Bitcoin on his website, Kelley will personally sign the copy.

Beepi cars

Beepi is a car marketplace that accepts Bitcoin. In case you missed it, you can now buy cars with the digital currency. From Black Friday to Cyber Monday, all Bitcoin purchases are 10% off.

eGifter gift cards

Gift cards are a pretty solid holiday gift for people running out of ideas. eGifter is giving Bitcoin users 7X points for every dollar through Cyber Monday. Users can redeem points for gift cards in the future. 100 points is equivalent to US$1 in savings. You can buy gift cards to Target, Old Navy, and Chili’s, among many others.

And there may be others. While Overstock is not participating in the official Bitcoin Black Friday, users can still use BTC to partake in the same deals as everyone else. Remember that Overstock will also take 4% of proceeds and send them to digital currency non-profits.

Discounted Bitcoin trading services

A few companies are reducing fees for Bitcoin payment and trading services.

BitQuick offers fast BTC trades and, like last year, is offering some fee reductions for the event. Normally they charge 2% to BTC buyers, but Friday the fee will be reduced to just 1%. They’ll also give customers US$10 for free similarly to the campaigns held by Circle and Coinbase.

Moreover, the derivatives platform BTC.sx is reducing trading fees by 20% and reducing daily interest charges on leveraged positions by 50%. Happy trading.

Additionally, Coinbase is waiving 1% buyback fees until Sunday for orders made with their merchants.

Happy Shopping…and Donating

Many are excited to see if this year’s BTC sales volume will exceed last year’s. So far, it certainly seems like Bitcoin is picking up momentum in the run up to the event. Just comparing the trading volume on Locatlbitcoins.com is a cause for excitement for any Bitcoin enthusiast.

Expect some surprises as well such as Dogecoin Black Friday?

Finally, if your altruistic side gets the better of you while you’re shopping, consider donating to these Bitcoin-accepting non-profits as posted on BitPay’s blog:

If you know of any other big Black Friday deals, drop us an email at drop@cointelegraph.com or mention them in the comments section below!

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What Is Digital (Crypto) Currency-How Does It Work

Exactly what is digital money? It is specified as: cash saved and moved in electronic form. Sounds simple sufficient, but just how does it all job?

This sort of currency is believed to excel to make use of for making purchases on the net because if it works the method it was meant to, purchases must be rather anonymous and untraceable back to the payer or user.

This means that hackers would certainly no longer be able to compile individual information from individuals who use their bank card to make online acquisitions. This would undoubtedly reduce the number of taken identifications that occur daily.

To help you realise additional of, “what is electronic currency?” I have done quite a bit of research on the subject and also have discovered that there are numerous different kinds out there, each with it’s own one-of-a-kind top qualities.

Right here are merely a couple of with their descriptions complying with:

Digital Gold Money– This type is supported by gold saved in safes. The gold gives an additional measure of protection and also if you hold this sort of currency, you could possibly straight trade it for strong gold bullion.
Centralized Money Systems– these resemble PayPal and also these firms permit you to send out cash throughout the world as long as you have cash in the account. For some services provided by these types of firms, you acquire charged a cost on the receivers end of the purchase.

Decentralized Money Units– Like Bitcoin are all based upon cryptography and/or trust networks. Likewise called Hard Electronic Currency, it is intended to be a lot more like making use of cash money to make your deal yet your purchase is non-refundable as soon as made. This sort of system only operates in one instructions.

The E-cash idea has developed together with the evolution of the Net. Individuals just do not really feel comfortable with providing their personal credit card information over the Internet when making a purchase.

Too many bad factors can occur like identification burglary. No one desires their identification stolen.

So, numerous firms have attempted to produce this type of repayment or financial system to lessen the dangers of buying online.

Many nations have effectively created systems for “internal” usage such as Hong Kong’s Octopus card. This card works similar to a type of debit card where the individual lots cash into the card then all the cash is placed right into a banking. They could then use the card for anything they have to use it for.

Some countries are working with or have systems that allow the customer to move cash through mobile devices. I assume this is somewhat like exactly what Chase lets their clients do. Their clients could take a photo of their check, front and back, with their phone and also make their down payment electronically.

I do wish that this offers you some concept of what is electronic currency and exactly how it is trying to take it’s location worldwide of e-commerce. There could be a little additional to it compared to I could explain in merely one small write-up but I assume you can obtain a good idea.

    Bitcoin Hub

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What Is Digital (Crypto) Currency-How Does It Work

Just what is digital currency? It is specified as: cash saved as well as transferred in digital form. Sounds basic sufficient, but exactly how does it all work?

This type of currency is thought to excel to make use of for making acquisitions on the web because if it works the method it was implied to, deals ought to be instead anonymous and untraceable back to the payer or user.

This indicates that cyberpunks would not manage to collect individual information from individuals who utilize their charge card to make on-line purchases. This would undoubtedly reduce the number of stolen identities that take place each day.

To help you understand more of, “exactly what is electronic money?” I have done quite a bit of study on the subject as well as have actually located that there are many different types out there, each with it’s very own distinct high qualities.

Here are simply a few with their descriptions adhering to:

Digital Gold Currency– This kind is backed by gold saved in vaults. The gold provides an added action of safety and security as well as if you hold this type of money, you might perhaps directly trade it for strong gold bullion.
Centralized Currency Equipments– these are like PayPal and also these firms allow you to send out money across the globe as long as you have cash in the account. For some solutions offered by these sorts of business, you obtain asked for a cost on the receivers end of the deal.

Decentralized Money Equipments– Like Bitcoin are all based upon cryptography and/or count on networks. Likewise called Hard Electronic Money, it is planned to be more like using money to make your purchase but your purchase is non-refundable once made. This kind of system just works in one instructions.

The E-cash suggestion has progressed together with the progression of the Web. Folks merely do not feel comfortable with offering their individual bank card information over the Internet when buying.

A lot of bad factors can occur like identity burglary. No person wishes their identification taken.

So, many companies have attempted to develop this sort of repayment or monetary system to lessen the dangers of purchasing online.

Lots of countries have actually efficiently created systems for “internal” usage such as Hong Kong’s Octopus card. This card works similar to a type of debit card where the customer tons money onto the card then all the cash is deposited into a financial institution. They could then utilize the card for anything they have to utilize it for.

Some nations are dealing with or have systems that permit the customer to move money through cell phones. I assume this is rather like what Chase permits their clients do. Their consumers could take an image of their check, front and also back, with their phone and also make their down payment electronically.

I do wish that this gives you some suggestion of what is digital currency and also how it is trying to take it’s place in the world of e-commerce. There may be a little additional to it than I could describe in simply one tiny short article but I think you can acquire a great idea.

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Crypto Currencies

Crypto currencies

 

The term ‘cryptocurrency’ refers to online or digital cash that can be traded online for goods as well as solutions.

While this might appear dangerous by itself, cryptocurrencies are called such because they are safeguarded making use of cryptography (translated into an essentially solid code) and traded over peer-to-peer networks (file-sharing straight in between celebrations).

Using public and also exclusive tricks is applied to securely move the currency from one celebration to an additional.

When you own cryptocurrency, it behaves much like gold– that is, it has value similarly physical cash does. Much like bodily money, cryptocurrencies are subject to fluctuations in value.

The very first as well as most prominent instance of cryptocurrency is Bitcoin, which was introduced in 2009. Based upon its popularity, numerous alternate cryptocurrencies have entered circulation since then.

Some of the most prominent among them consist of Namecoin, Peercoin, and Litecoin.

A lot of manufacturers will decline Bitcoin or any type of cryptocurrency as payment, nonetheless, the rise in popularity has viewed a variety of online firms start to acknowledge Bitcoin as a viable choice, such as Etsy.com, Overstock.com, and also Reddit.com.

Criticisms

Similar to the majority of internet experiences, cryptocurrencies have their doubters. Being anonymous and practically untraceable, they come to be an easy technique for criminals to make prohibited transactions, such as the purchase of illegal compounds and also hazardous services.

One of the most significant example of this was Silk Road, an online underground market that used Bitcoin as currency. When it was finally closed down in 2013, the FBI confiscated 144,000 bitcoins (worth roughly $28 million).

While cryptocurrencies themselves are intensely shielded, it’s still possible to lose your entire digital lot of money. Merely losing a password or shedding access to your online budget can result in the effective deficiency of your cryptocurrency.

Being a decentralised system of exchange, such points are not safeguarded under insurance provider; users accountable for their own security.

Benefits

Being digital money and also consequently dispersed online as opposed to in any physical kind, cryptocurrencies are not associateded with any type of one nation.

Because of this, their value could not be had an effect on by a centralised financial institution. Their worth is commonly established by supply and also demand (basically, the amount of individuals want to pay for them). Some see this as a change in power from the government as well as economic establishments, back to individuals; nevertheless, it’s not unusual for mainstream users to locate the absence of rule behind cryptocurrencies to be upsetting.

Unlike regular financial purchases, cryptocurrency does not produce deal costs, and, as it is not checked by a 3rd party, it does not have a taxation system in place. Moreover, as soon as a transaction has occurred, it can not be reversed or traced back.

The online budgets which contain Bitcoins are private: Unless one chooses to make their online pocketbook public, no-one can see the number of Bitcoins they have.

Cryptocurrency is a fast-growing means of transaction that makes it possible for customers to continue to be completely anon

ymous whilst acquiring products online. Whilst it has both advantages and also drawbacks, it’s showing no sign of decreasing and also is rapidly becoming a much more traditional method of payment.

Crypto currencies

 

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How Digital Currency Could Transform Our Lives


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Susan Athey On How Digital Currency Could Transform Our Lives

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This article is the first installment in a three-part series on digital currencies, such as Bitcoin, Litecoin, Ripple and others. Part 2 covers the security advantages and disadvantages of cryptocurrencies, as well as the obstacles to their adoption, and Part 3 explains how MIT students, the poor and criminals will all benefit from Bitcoin.

Insofar as this is possible, Susan Athey is a rockstar economist.

At age 36, the Stanford Graduate School of Business professor became the first woman to receive the prestigious John Bates Clark Medal, awarded to an American economist under age 40 who has made the most significant contribution to economic thought and knowledge. The former MIT and Harvard professor has a whole host of other accolades to her name: member of the National Academy of Sciences, member of the American Academy of Arts and Sciences, plus many more. She also was the first chief economist hired at Microsoft MSFT +0.59%, as a consultant, and she now serves on the board of Ripple Labs, the creator of the Ripple protocol, a more bank-friendly alternative to Bitcoin.

Her work has focused on the cutting edge of technology. One theme in particular has been how complex platforms and marketplaces, such as internet search advertising and online advertising auctions, can be designed to make them work more efficiently — for instance, using big data to predict how advertisers would react if online ad prices were changed and how that would change the users’ experience of and interaction with ads.

She also has concentrated on how technology enables the creation of new platforms, and how that affects the industries involved — for instance, how the internet has affected news media. “This is a new frontier of statistics and econometrics — the statistics of economics: to try to combine tools that are geared toward large data sets with lots and lots of covariates and not a lot of structure with the ability to answer very structured questions,” she says.

Stanford business school professor Susan Athey (Peter Tenzer)

Because of her interest in the effect technology has on our lives, cryptocurrency immediately piqued her interest for its potential to disrupt financial services. I recently met with her at her office at Stanford GSB to talk about what digital currency is, its potential, the hurdles it faces and other related issues, including an exciting new project involving Bitcoin. Because of the length of our interview, I’ve separated them into individual stories in a series. In this first installment, we discuss what Bitcoin is and applications for digital currencies.

What is digital currency?

At its core, the new technology that’s been invented in the last few years is a way to maintain a ledger or spreadsheet that keeps track of who has what. So if there’s an entry in that spreadsheet that says a certain address has 10 bitcoins and you know that address and the password, you can authorize a new entry on the spreadsheet that moves that digital currency to someone else. So Bitcoin is just a big spreadsheet that keeps track of who owns what,  and what’s really innovative about it is that, first, it is secure. It uses decentralized maintenance of that spreadsheet, so there are copies all over the world. There’s not just one computer that can be hacked.

Second, the fact that it’s purely electronic means that if the spreadsheet says I have some bitcoins, and I have the key for those bitcoins, I can authorize a movement to someone else simply by entering my security code, which then immediately makes another entry on the spreadsheet and allows someone else to control this thing of value without any banks or companies or other types of middlemen. With just a password, I can almost instantly transfer something of value to someone else, purely digitally and without any promises from companies to honor it. It’s a piece of open-source software.

So digital currencies are a technological innovation for moving value digitally and securely and quickly, just like the internet was a fundamental technology for moving information somewhat securely and quickly.

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How might digital currencies change our everyday lives?

Like the internet, digital currency is a technology that enables lots of applications to sit on top of it. One thing that’s hard to do today is to move money internationally, especially quickly. If you useWestern Union WU -0.05%, there’s a large fee, and if you want to move money between two banks internationally, it costs you $60 or $70. For regular consumers doing small transactions, it’s often too expensive. So digital money makes it easy to move money at the speed of information rather than a week or longer.

Digital currency also makes it easy for anybody to move money between one person to another. There are applications today that allow you to do that, like Venmo, but there are fees to getting money in and out of applications, and these apps are not that broadly adopted. So I expect that either people will directly use applications built on top of digital currency to move money, or that competition from digital currency might induce banks and other financial institutions to lower their fees. There are actually a lot of countries in the world, where, if two consumers want to send money to one another, that money becomes immediately available to the receiver, and there’s no fee. But that’s not the case in the United States.

Where is this available?

Europe, Australia. Person-to-person bank transfers are free and instant in a lot of the world. So when you talk about the benefits of digital currencies to people in other parts of the world, they are surprised that they are not available to us already in the U.S.

Why not?

The backend system that banks use to send money to one another, ACH, is an old system coordinated by the federal government. It takes time for the banks to actually receive the money. There’s a delay built in. The cost the banks are charged is very low but the banks charge the fees to the consumers and they don’t always make the money available to consumers as soon as they receive it.

The banks still have a delay in Europe but they just go ahead and make the money available to consumers even before the money moves between the banks once they know that it’s coming. You might wonder, can’t Chase and Bank of America work something out between them? Can’t Bank of America check you have the money in Chase and Chase says they’re sending it and then make the money available to you? They could but they don’t.

Digital currency, by its very nature, makes that very easy, so if the banks don’t provide those services to us, we expect that services built on top of digital currency will provide those services, and that would hasten the arrival of those services. It’s just basic nuts and bolts competition.

Do you see it already happening?

What brings down prices is competition. Currently, all the banks charge these fees and impose these delays, so competition doesn’t seem to be working to bring the price down to cost. Competition from outside services might have that effect, but so far it’s been too small. Digital currencies haven’t been large enough to put price pressure on the banks, and the banks are making a lot of money from those fees. Fees are charged to consumers and businesses — even large companies. These fees are problematic for the efficiency of society because they make certain kinds of transactions cost-prohibitive or less productive.

It might be easier to just move money electronically but since you can’t do it instantly, instead you use cash. There might be small transactions, like in-app purchases or charges in an app store, where the credit card fee might be very large in proportion to the value of the transaction, so those just get priced out. If a newspaper wanted to do micropayment for content, then the credit card charges might be cost-prohibitive because there’s a fixed fee for every credit card transaction, so we see lots of types of transactions not possible in a system when you have to pay credit card fees or bank fees to process the transaction. What digital currencies do is remove a lot of these minimum fees and make it easier and cheaper to move small amounts of money.

What are some other ways digital currency will change our lives?

We’ve talked about sending money internationally, which could include person-to-person payments and remittances. Formal and informal remittances are maybe $1 trillion, so that’s a big application. We’ve talked about digital currency putting pressure on person-to-person transfers within a country, which today could happen quickly but don’t. And we’ve talked about a payment system, so a merchant could accept bitcoins for payment, bypassing applications.  So that’s four applications we’ve talked about.

People can also use the digital currency technology to create more complex contracts or instruments. For example, today people use escrow accounts when buying a house: You put money into escrow, but it only goes to the seller when the seller hands the title to the property to you. We use escrow accounts when we have trust issues around a big important transaction and we want the money to move at the exact same time the property moves.

But we only use that for big transactions because escrow is expensive. With digital money, you can write costless computer programs that create escrow services,  so I can put digital currency in an escrow account and have a computer program only release that money to a seller when certain conditions are met. You can call it programmable money: It’s money that we can write computer programs on, and these computer programs check when certain conditions are met. In situation one, the money gets sent to one person. In situation two, the money gets sent back to the original holder of the money. In situation three, it might go to someone else. We can write contracts that are enforced by a computer, instead of a relying on an escrow agent and paper signing and these horribly old-fashioned things. We can use escrow for goods of much smaller value and without interacting physically across borders.

People are also investigating using programmable money for financial contracts, like for instance, financial contracts in derivatives which involve multiple parties. You might put some money in a financial contract which will pay out according to what happens to certain stock prices. So you could have a computer program that took in as an input stock prices from the Bloomberg terminal feed and then, depending on what happens to certain stocks or certain combinations of stocks, certain individuals get paid back.

Like a buy or sell order?

Yes, but you could set up more complex derivatives that might pay out to certain people, as a complicated function of what happens to multiple stock prices. Derivatives are financial instruments that pay investors according to complicated functions of what happens to stock prices. For example, it might be a lot if the stock falls by more than a certain percentage, or not at all if it goes up.

People have proposed to create more complicated derivatives where any individual could make up a contract, and people all over the world could invest in them and the people would know a computer program would follow the rules of who gets paid when. So they could be complex multi-person derivatives, financial instruments, and instead of trusting an individual or an institution to make the payments according to the rules, the computer program would spit out the money to the right people.

A little more abstractly, smart contracts with digital money allow you to write a set of rules that tell you in what circumstances different people get paid. These could be very complicated contracts that could depend on lots and lots of prices and lots and lots of information and could involve people who don’t know each other or trust each other and live in different countries all over the world. All these people could read the rules of the transaction, participate and trust that the computer program would carry out the rules. So as long as everybody put their money in, it could be held in escrow by this computer program and they would know that it would get spit out according to the rules.

So it’s a substitute for people you paid like escrow agents and title companies or services that would be provided by a financial institution, where the financial institution would create an instrument, but you’d have to trust them to follow the rules and so only certain trusted institutions could convince people to give them money and trust they would give it out according to the instructions. Now this can all be done in a computerized way.

People are very excited about this possibility, but part of the reason this sounds abstract is that we haven’t seen a really productive use case. It’s just a possibility now. This is just like beginning of the internet. When I was in college, I’d say, wow, you could send information all over the world. I can write a message to my boyfriend. People would say, you’re sending email to your boyfriend? Why don’t you just call him?  People couldn’t understand why it would be so much more useful to email information than use traditional methods. In the early days of the Internet, people would say, yes, I can send messages through text and files, but they couldn’t envision YouTube or Twitter or Google. The applications that were going to come later weren’t completely clear.

Digital money is similar. The first thing you do with technology is do what you were already doing better and faster, like sending money internationally, sending money to our friends, paying for things on the Internet. Many people believe that the best is yet to come, and new things are possible, but we’re not sure which of those possibilities have the most value. We have this new technology that allows money to be allocated with computer programs according to specified rules. We haven’t quite figured out what to do with it, but it seems like a powerful technology.

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BitcoinEXPO 2015 in London

BitcoinEXPO

BitcoinEXPO 2015 in London to Focus on Startups and Investors

 

by Allen Scott 

BitcoinEXPO 2015 London will take place in the UK capital on January 24-25, 2015.

After the previous successes of the Central European Bitcoin Expo Vienna, the BitcoinExpo 2014 Shanghai, and the Bitcoin 2 Business Congress Brussels, the CryptoEvents team is now bringing you BitcoinExpo London 2015.

“The year of 2015 will begin in a grand style in London!”

—CryptoEvents team

CoinTelegraph is also proud to announce that it will be the official media sponsor of BitcoinEXPO 2015.

BitcoinExpo London

The conference will take place in the capital of the United Kingdom, London, on January 24–25, 2015.

The event will serve as a launch pad for speeches, debates, networking and exhibitions, as well as the first ever startups show.

Commenting on his experience at previous events, Bastian Brand of the Pathfinder Cryptocurrency Fund remarked:

“The organizers did a very good job to bring together the most important Bitcoin experts and entrepreneurs from Continental Europe.”

The BitcoinExpo 2015 will be particularly focused on startups and new technologies, which makes it the perfect venue not just for crypto users, professionals, startups, and investors, but also for anyone else who wants to discover and learn about the burgeoning Bitcoin economy and the rapidly expanding world of cryptocurrency.

The speakers confirmed so far include:

Startups at any stage of development are welcome, as the event will  offer an opportunity to showcase the ideas behind new startup companies, as well as to discuss and find potential opportunities for your business to get the funding you need.

Speakers of BitcoinEXPO 2015 London

Tickets

The £99 startup ticket will give you the opportunity to present your project to investors during the BitcoinExpo 2015’s Startup Show. Venture capitalists, investors, entrepreneurs, and big businesses are also encouraged to attend.

It is free to attend the conference. Early-bird registration is required, which will grant you full access to the exhibitors’ floor. You can also buy an attendee VIP ticket, which will guarantee you the best seats in the house. The price for a one-day VIP ticket is £109; a two-day ticket costs £129.

All attendees can register for free. Purchase tickets if you are a startup or investor here.

Tickets can be purchased with either Bitcoin (via BitPay) or credit card.

Don’t miss your chance to be a part of this conference. See you all in London!

For more information, go to: www.bitcoinexpo2015.com and www.cryptoevents.net


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Agora Commodities Will Rebrand to Focus on Bitcoin

Bullion Dealer Agora Commodities Will Rebrand to Focus on Bitcoin

 |

Agora Commodities

Precious metals dealer Agora Commodities has announced that it will rebrand to emphasize its increasing interest in digital currency.

The company expects to adopt the name Crypto Bullion Group, a process that will include the launch of a new online platform. Crypto Bullion Group will continue serving precious metals customers that want access to bitcoin.

The move continues Agora’s long-standing involvement in the digital currency industry, which in recent weeks has inspired the company to forge partnerships with other precious metals-focused startups like crypto 2.0-powered bitcoin-to-gold exchange DigitalTangible.

CEO Joseph Castillo told CoinDesk that rebranding affirms what he called the company’s growing focus on bitcoin. This process, he said, grew out of the grassroots support of customers and advocates.

Beyond rebranding to demonstrate what he called the company’s “philosophical grounding in bitcoin”, Castillo said that Crypto Bullion Group is actively moving to utilize the technology not just as a currency but as a mechanism for smart contracts and transactions.

He added:

“We’re committed to the idea of the implementation of bitcoin beyond just a source of revenue.”

According to the company, the platform is still underdevelopment, and while there is no set date in place, Crypto Bullion Group hopes to launch before the end of the year.

Focus on cryptocurrency

Castillo said that the rebranding will allow the company to provide a resource for precious metals collectors and investors who want access to bitcoin while, in turn, enabling broader adoption of the technology in general.

Commenting that many other companies are tapping bitcoin as “just another revenue source”, Castillo said that an increased focus on digital currency would enable Agora to more directly support the bitcoin ecosystem as a whole.

He told CoinDesk:

“Rebranding is just a reaffirmation to our commitment to bitcoin, and a thank you. This new technology has created wealth for us and a new service, and we just want to make that our focus.”

“Not that we are going to stop taking US dollars,” he added, referencing competitor Amagi Metals’expected transition to take place by 2017.

Interest in crypto 2.0 capabilities

Notably, Crypto Bullion Group is looking into advanced bitcoin protocol applications in the form of smart contracts. While this process is still in the conceptual stage, Castillo shared insights into how crypto 2.0 processes could be integrated into the precious metals business.

Castillo said that he and his team are looking at how the bitcoin blockchain can be leveraged to both build greater trust among investors and create decentralized contractual mechanisms that reduce costs and reinforce agreements through the use of bitcoin’s globally distributed ledger.

He cited the colored coins project as one concept his team is looking at, noting that a recent meeting with that development team was promising. Ultimately, the company’s goal is to build new tools to make their business run more efficiently, which he sees as a key promise in bitcoin itself.

“I don’t think people are looking at the protocol and thinking, wait a second, there’s more at work here. We can do many more things with it,” he said.

Image via Shutterstock

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BitFury Group

 

BitFury

Samsung Electronics President and CSO Young Sohn Joins BitFury’s Strategic Advisory Board

by Diana Ngo @ 2014-11-25 12:01 PM

Bitcoin infrastructure provider and Bitcoin transaction processing startup BitFury Group adds Samsung Electronics President and Chief Strategy Officer to its strategic advisory board.

BitFury CEO Valery Vavilov stated in an official announcement:

“We are excited to welcome Young Sohn to our strategic advisory board which is composed of some of the most distinguished technology and venture industry leaders.”

Sohn is joining BitFury’s advisors board, which was initially composed of semiconductor industry veteran Dr. Jackson Hu and Binary Capital founder Jonathan Teo. Vavilov also noted that:

“Young’s extensive experience in semiconductors and consumer electronics will enable us to explore business opportunities in the consumer electronic devices market.”

Sohn has been working as President and Chief Strategy Officer for South Korean multinational electronics company Samsung Electronics since mid-2012. Previously, the executive had served as CEO and President for multiple enterprises including public companies Quantum Corporation, Oak Technologies, Agilent Semiconductor, and Inphi Corporation.

Young Sohn

Sohn shared his excitement in joining BitFury’s team and in supporting the startup’s ambitious goals. He stated:

“BitFury is well positioned with its custom design chip and data center technology. The company’s commitment to delivering results through strong and consistent execution of its business and growth strategy has not only allowed BitFury to become a highly respected global Bitcoin company, but to also see new opportunities.”

Founded in 2011, BitFury Group is a leading provider of semiconductors, servers and datacenter solutions to the cryptocurrency industry. The startup is currently constituted of an international team of 70 professionals located in San Francisco, Amsterdam and Riga.

In May, BitFury Group closed a US$20 million funding round from VC firms, which included Binary Financial, Crypto Currency Partners, Georgian Co-Investment Fund (GCF), Queensbridge Venture Partners and ZAD Investment Company, as well as renowned angel investors Bill Tai and Jonathan Teo. The investment was said to build out its facilities in strategic international locations and accelerate its production of next generation semiconductors, or ASICs and servers.

In early September, the startup announced a partnership with Bitcoin security and multisig leader BitGo. The partnership included a significant undisclosed investment into BitGo. Last month, BitFury made another similarstrategic investment into payment platform GoCoin, which was then selected to process digital currency payments for BitFury’s vendors.


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