BitcoinBitcoin is a digital currency started in 2009. It is a digital representation of currency without an actual tangible representation. Bitcoin, commonly abbreviated to BTC or XBT, is globally distributed decentralized digital money (also called cryptocurrency). It is decentralized, meaning it is not controlled or supported by any government, country, or individual entity. Unlike traditional currencies, such as dollars and euros, bitcoins are issued and managed without any regulation by any central government. Therefore, it is more resistant to inflation and corruption. A Bitcoin derives its value fundamentally from the demand and usage of bitcoins, similar to a stock. Bitcoin does not derive its value from the government; derives its value from people. The more people use/accept it, the greater the demand for it and the more valuable it becomes. Bitcoin is controlled by people; you are your own bank. The terms of the transaction are determined by you. Bitcoins can be purchased with credit cards, PayPal, bank transfers, or even by going to a local bitcoin exchange and purchasing them with cash. A person can acquire bitcoins as payment for goods or services, purchase them with real money on a Bitcoin exchange, exchange bitcoins with someone you know, or earn bitcoins by performing mining services for the network. It has value and can be exchanged for real physical money, its exchange rate goes up and down like a stock and it is traded online like PayPal, but it is none of that. It is widely regarded as the future of the world's currency, but is also considered a gateway for illegal activities. So which is it? New bitcoins are created by intensive user activity called "mining". A miner solves mathematical algorithms with...... half of paper...... Np, nd Web. April 22, 2014.7. “Bitcoin Watch.” Bitcoin Watch. Np, nd Web. April 22, 2014.8. Brustein, Joshua. “If Bitcoin remains impractical, the Treasury will allow it.” Bloomberg Business Week. Bloomberg, March 18, 2014. Web. April 22, 2014.9. “Canada Taxes Bitcoin Users - CoinDesk.” CoinDesk RSS. Np, nd Web. April 22, 2014.10. "Cons." Bitcoin. Np, nd Web. April 22, 2014.11. “Goldman Sachs Sees Bitcoin’s Future in Cash Payments.” Bloomberg.com. Bloomberg and Web. 22 April 2014.12. “The Good, the Bad and the Ugly of Bitcoin Security.” Hongkiatcom RSS. Np, nd Web. April 22, 2014.13. Guru, technology. "Don't fight it. Bitcoin has a bright future." CNNMoney. Cable News Network, December 10, 2013. Web. April 22, 2014.14. Hill, Kashmir. “Congress is nervous about the whole Bitcoin issue.” Forbes. Forbes magazine, August 15, 2013. Web. April 22. 2014