By studying the web activity and social media chatter generated by Bitcoins, a group of Swiss computer scientists have come to the conclusion that four key variables govern the way the virtual currency behaves. First is the size of the user base; second is the number of searches for information; third is the amount of information shared; fourth is the price. Using these four factors, the team at the Federal Institute of Technology in Zurich managed to find two positive feedback loops that steadily influence how much each bitcoin was worth. The first “reinforcement cycle” involves a spike in the amount of online searches being carried out around the currency. This leads to more chatter about Bitcoins, and in turn prompts a rise in its value. This makes a lot of sense — the more public attention something gets, the more people will invest and the more its price will surge.
Why Bitcoin’s Growth Should Explode – Yahoo Finance
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CFPB Says Bitcoin Is ‘Wild West’ of Finance World – Yahoo Finance
Consumer Financial Protection Bureau outlined several of bitcoins potential dangers, including vulnerability to hackers, limited security, excessive costs and scams. It also announced a system that accepts virtual currency complaints . Though virtual currencies have become increasingly integrated into society, with states , companies , political organizations and even schools approving their use, the Internal Revenue Service has not granted it legal tender status in any U.S.
The Government Tries to Explain Bitcoin to Normal People – TIME
There are no implementation fees, no approvals are required and the required technical skill is relatively low. When useful services roll out, bitcoin adoption should soar because it costs nothing for users to engage and close to nothing for platforms to become part of the ecosystem. But when will this happen? Useful services are currently being tested: remittances, tipping and notary services. As soon as one of those services (or something like them) becomes a best-in-class solution, bitcoin growth should explode to dominate that market.