Current Trends InBitcoin

Bitcoin is focused on the premise that currency is an item, or some type of ledger, recognized as payment for products and services and debt repayment or socio-economic classification in a given world. Bitcoin uses cryptography, or mathematical equations, to regulate the production and movement of capital, instead of depending on governments and central for more info Transfers can be processed by anyone for loans, sales, purchases or any other method of payment, using a desktop, smart phone, tablet or laptop. This is all feasible without a financial entity being needed to serve as an intermediary or a recording agent.

Bitcoin, created in 2009, is a digital currency introduced by an MIT student named Satoshi Nakamoto as open source software. There’s a lot of speculation about whether Satoshi is a real person, or a collection of people using a pseudonym. Bitcoin is minted by a mining process in which specialized computer hardware completes complex mathematical equations and is rewarded with a block of bitcoins. That process takes about 10 minutes and 25 bitcoins are rewarded by the current block. In 2017, the block reward will be halved to 12.5 bitcoins, and again roughly every four years later. By 2140 around 21 million bitcoins will be in existence.

This week, Bitcoin has seen a flurry of action with company owners from all sides getting on board. Bitcoin is showing up anywhere from small companies in New Orleans to the NBA’s Sacramento Kings embracing Bitcoin for ticket purchases and squad paraphernalia, to casinos in Las Vegas. Venture Capitalist Chris Dixon predicts that Bitcoin might hit $100,000 if it is the main ecommerce (Wired) process. A major online retailer’s CEO was quoted as saying “Other retailers won’t want to miss out, Bitcoin market is growing by 30 percent per month.” That same retailer saw a 5 percent increase in sales on the first day that Bitcoin was accepted. Zynga Games, one of the largest online gaming companies with responsibility for Farmville, Castleville, and a host of others also started accepting Bitcoin for financial transactions in games. Colorado’s medical weed cultivation business switched to Bitcoin (ZeroHedge) after five Major Banks said no to funds from pot retailers and farmers. Only lately the IRS has introduced a program that requires Bitcoin to pay taxes. Bitcoin ATMs have popped up in cities like Vancouver, Ottawa and a shopping mall in Bratislava Slovakia. The New York City Bitcoin ATM was recently put on hold until a public hearing can be held under the jurisdiction of the New York State Department of Financial Services.

Since flirting with the $1,000 mark only after the New Year, Bitcoin has been consistently selling at about $950 during the past fortnight on the Mt. Gox exchange and is wonderfully backed by the 50-day moving average that suggests Bitcoin is indeed firmly bullish. This shocked several observers who claimed the regulatory news coming from China, India , and Russia would break the bubble of bitcoins. But with over 30 years of market analytics experience, Michael Robinson believes most analysts are wrong. He suggests that the strong correction we saw at the beginning of December, coupled with the consistent support of the moving average of 50 days, indicates that Bitcoin is an extremely healthy market and should only continue to increase value.