04 Oct '13, 10am

Bitcoin: what you need to know

When the Silk Road, the internet's biggest marketplace for illegal drugs, was taken down earlier this week , the price of Bitcoin plummeted . The two were "intrinsically linked", according to Jeremy Cook, chief economist at currency brokers World First, but with Silk Road gone, does Bitcoin have a future? What are Bitcoins? Bitcoins are an anonymous, decentralised, peer-to-peer digital currency. In contrast to older forms of electronic money, no company controls Bitcoin, nor ever could: all the rules about how it works are embedded into the very operation of trade, including the rate of inflation and how to verify transactions. How do I get them? For most users, the easiest way to get Bitcoins is to buy them. But due to strict anti-money laundering controls, even that is tricky. Most Bitcoin exchanges, such as Mt Gox , the best-known, require users to wire money from their...

Full article: http://www.theguardian.com/technology/2013/oct/04/bitcoin...

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