Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013Over the last decade, according to the evolution of the Internet, attemptsto achieve a coin cybernetics (cybercoin) or digital money, were numerousand mainly related to the growing use of the network for electroniccommerce (E-commerce).But in recent years, more precisely since 2009, a new attempt to marketa new virtual electronic money, seems to have taken the right directionand the sudden escalation of its use, seems to confirm success.Its called Bitcoin (digital currency) and its major peculiarity reside inanonymity and non-traceability.
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013Born a few years ago, is being heralded as a Bitcoin virtual currencywhose success is surrounded by numerous oddities. The first is itscreator: Satoshi Nakamoto.In an article published in October 2011 by The New Yorker, journalistJoshua Davis, who for years have started searching for the elusiveinventor of Bitcoin, asserts that "Satoshi Nakamoto" is nothing more thanjust a pseudonym behind which lurks a group consisting of hundreds ofexperts in cryptography, peer-to-peer systems and techniques fortransaction banking network.
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013The project has its origins in the architecture peer-to-peer(P2P), designed for applications requiring very high data transmissionspeed, allowing at the same time, sharing the same data among multipleusers (nodes) on the same network.With this type of architecture, any node is able to initiate or complete anytransaction.The nodes can differ among themselves in the localconfiguration, processing speed, in bandwidth and in the amount of storeddata.The database that contains the information is distributed among thenodes of the network.The transactions are all tracked and transfers of bitcoin, including publicaccounts of the nodes are encrypted through the use of the system ofpublic key cryptography, mathematical algorithm that provides securityand protection to the transmitted data
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013The purpose of Bitcoin is essentially to allow the possession and theanonymous transfer of digital money.Another important feature is that Bitcoin addresses do not contain anyinformation that could bring back to its rightful owner, which guaranteesthe anonymity function at any level.Regarding how to use Bitcoin, anyone can acquire the appropriatesoftware at no cost and downloading it from the network.After the download and installation is automatic and program, itautonomously proceeds to update all transactions on different nodes ofthe network. The application also provides the generation of a bitcoinaddress in readable form, with random sequences of digits long and onaverage 33 characters, which always start by 1, of the form1Ai83aafRLWYtMDNbP8b3uiWyquun6ot46..
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013Image of the software installation ...
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013Image generation of the address (in this case, for example, was addedthe name of Luigi Rossi, but the field can be left blank)
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013The Bitcoin you can buy on the Internet with any currency.The value of Bitcoin increases exponentially.In May, 2012, a Bitcoin was quoted at 03.05 U.S. dollars. In April2013, the value of a Bitcoin has come to 229 U.S. dollars.
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013The benefits of Bitcoin are:1. Limited. The amount of bitcoins in circulation is limited, and this allows you tomaintain the value. The higher value, the coin is more convenient to use interms of its exchange ratio. Moreover, being a coin "strong" can also beregarded as a "reserve" to be set aside. The most direct comparison is with thegold: there is less gold in circulation, the higher its value.2. Network Management software. The currency is exchanged on theInternet, directly in a peer-to-peer and without any supervisoryauthorities, banking and government.3. Forgery impossible. Contrary to what happens for the other currencies, bitcoincan not be falsified. The maximum amount outstanding is fixed andtransactions, with regard to the quantities of currency, are all checked andverified.4. Exchange and methods of use facilitated. The bitcoin can be exchanged easilyand quickly on the net.5. Custody and simplified reserved. The bitcoin may be stored individually (in theirown personal computers) without the aid of banks or bodies to ensure thehousing.6. Store of value. Being a very stable currency value (contrary to what happens inother currencies), can be a "safe haven."
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013Since bitcoins are routed through apeer-to-peer, it remains impossibleto trace the movements ofelectronic money and to disclosethe identity of those who carry outtransactions.These features make the currencyof bitcoins privileged for all thosetransactions illegal and criminalactivities, such as the sale ofweapons and drugs.For example, on-site Silk Road, youcan buy drugs using Bitcoin(everything is handled in acompletely anonymous)Bitcoin address
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013Very few would have bet on the simple existence in the life of this virtualmoney. Indeed, many had announced that its value would be returned tozero within a few months.Although the global economic scenario, more and more confused andchaotic, does not bode well for the near future, the existence of acryptomoneta as a form of payment and investment, it may be winningAnd not just because of the uncertainty in the currency markets, as wellas for the possibility of trade and financial transactions that might escapethe controls that government institutions in many countries are workingto combat rampant tax evasion.Bitcoin may actually represent a revolutionary tool in the world scenario.Last year, some have even claimed that if Bin Laden had been available atthe time of this prodigious cryptomoneta, would be able to equipthemselves with better weapons and a wider chain of acquisition ofinfrastructure and equipment!
Bitcoin: Lights and Shadows of Virtual MoneyMoscow, 23 May 2013