In 1999, Professor Milton Friedman, a Nobel Prize winner in economics stated:
“I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed, is a reliable e-cash.”
Nine years later, Bitcoin was born.
But who created it? Is it legal? How can I buy coins? What is the conversion rate? What can I buy using Bitcoin? here, We shall hope to answer some of your many question surrounding the new currency.
The name is Satoshi Nakamoto. Who this person is, no-one knows! Even the name has been considered an algorithm - “Satoshi” means "clear thinking, quick witted; wise". “Naka” can mean “medium, inside, or relationship”. “Moto” can mean “origin”, or “foundation”. But is this just over thinking, quite possibly! Many people have had the finger pointed at them but no-one has come clean. It looks like this shall remain a mystery for many years to come.
As of 14:54 on 08/03/2016 1 Bitcoin would cost you £288.94.,
Every country has a slightly different approach, but in the UK it is considered as private money. The bitcoins themselves will not be subject to VAT but when used in exchange for services the usual rules shall apply, any losses or gains on cryptocurrency shall be subject to the normal capital gains tax.
The bitcoin protocol specifies that the reward for adding a block will be halved approximately every four years. Eventually, the reward will be removed entirely when an arbitrary limit of 21 million bitcoins is reached c. 2140, and record keeping will then be rewarded by transaction fees solely.
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services.Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete agreementamong all users. Therefore, all users and developers have a strong incentive to protect this consensus.
No more than the Dollar, Pound or Euro. Like any currency it can be used for nefarious purposes, it may have become synonymous with the dark web but unlike other currency money has always been used for all intent and purposes. Bitcoin has actually been a major step forward in securing money and also making it much more resistant to financial crime and counterfeiting.