BITNEWS: Apple Pay and BrainTree, PayPal, Bitcoin Plus Gem Launch at TechCrunch Disrupt – Video

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BITNEWS: Apple Pay and BrainTree, PayPal, Bitcoin Plus Gem Launch at TechCrunch Disrupt
BITNEWS: Details on Apple Pay, BrainTree, PayPal and Bitcoin Plus Gem, TechCrunch Disrupt #39;s First Bitcoin Company to Demo Like us on Facebook http://facebook.com/followthecoin Follow us on...

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BITNEWS: Apple Pay and BrainTree, PayPal, Bitcoin Plus Gem Launch at TechCrunch Disrupt - Video

Bitcoin could lay the groundwork for an international currency

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A fundamental aspect of any sovereign economy is the right to mint and value a currency. In the United States, the Constitution lays this out clearly. Section 8 permits Congress the right to coin money, and Section 10 denies the states or anyone else that right. Creating a physical alternative to the U.S. dollar isnt just difficult, its outright illegal.

Then came Bitcoin. What makes Bitcoin so unique (and legal) is that it is a digital currency and, thus, never minted. While its popularity has grown substantially in the past two years, the currency has actually been floating around since 2009, when it allegedly was created by clandestine developer Satoshi Nakamoto. Since that time, the currency has gone from little more than a theory to being worth as much as $1,200 per Bitcoin. At time of publication, it was trading just below $500.

Bitcoins are created through a process called mining, and they only exist in a computer file known as the blockchain, which is akin to a complex puzzle. After a computer works on the blockchain for a certain amount of time, a piece of the puzzle is solved, releasing 25 Bitcoins (rate halves in mid-2016) to the solver.

Seems easy, right? Buy a bunch of computers and get to mining! While this is how it worked early in Bitcoins existence, it isnt quite that simple any longer. Part of the genius of Bitcoin is how elegant it is as a functioning monetary base. As more Bitcoins come into existence, the blockchain puzzle becomes progressively more difficult. The monetary base of Bitcoin was built to grow by 3% annually. This number was not chosen randomly: A 3% inflation rate is considered a healthy target for developed economies, and is near the figure targeted by central banks around the world.

As Bitcoins popularity has exploded in the past two years, the mining has grown exponentially more difficult and expensive. Whereas in 2009 it was possible to utilize a standard home PC for mining purposes, today it takes highly specialized kits to mine profitably. One has to remember, computers cost money and run on electricity. So, if you are running a non-specialized PC, it may cost $100 in electricity to mine $25 worth of Bitcoins. While some hobbyists still engage in such operations (I tried it myself), it is obviously far from a sound business.

To seriously mine Bitcoins it takes a minimum of a $5,000 investment. Companies likeButterfly Labsbuild specialized graphic cards designed specifically for blockchain hashing. These cards cost several thousand dollars and are typically back-ordered for months. To be in the business of Bitcoin mining requires an entire fleet of this equipment, which can easily cost $100,000 or more. To further complicate mining, this equipment typically is obsolete in six to 12 months, meaning further capital outlays are constantly needed to stay profitable. Entrepreneurs who have been successful at mining have significant capital, both intellectual and dollar denominated. Cheap access to power also helpsdifferent parts of the country can have widely varying kilowatt costs.

If it is not profitable for the average person to mine Bitcoins any longer, then why has it exploded in popularity? The answer is twofold in my mind. First, and most importantly, central banks around the world have done very little to build confidence in paper currencies since the financial crisis in 2007. Furthermore, countries around the globe have taken on dramatic amounts of debt over the past seven years, resulting in an increase in the debt-to-GDP ratios of every developed market, and most of them have even doubled.

Open exchange rates have made fiat (paper) currencies viable since the removal of the gold standard in 1971. If one country practiced irresponsible monetary policies, the exchange rates punished them and devalued their currency. But what happens when everyone acts irresponsibly? Bitcoin is what happens.

The second reason Bitcoin has become so popular is that it has caught the attention of the investing community. The virtual currency has turned into a haven for speculators due to the extreme volatility of its exchange rate; at times it has doubled in the span of just a few weeks.

By design, there is a finite amount of Bitcoins that will ever be mined (20,999,839.77, to be exact). With a constrained supply, hedge funds have looked to corner the market on Bitcoin and have accumulated substantial holdings in the currency.

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Bitcoin could lay the groundwork for an international currency

BoE: Bitcoin could transform stock markets

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A ledger for stocks?

The BoE says that, since the majority of financial assets such as shares or bonds already exist only as digital records, distributed ledgers could possibly transform the financial system.

"It may be possible in the future in theory, at least for the existing infrastructure of the financial system to be gradually replaced by a variety of distributed systems," the BoE said, although it made no predictions that this would happen.

Read MoreWhat is bitcoin?

"This development could allow any type of financial asset, for example shares in a company, to be recorded on a distributed ledger. Distributed ledger technology could also be applied to physical assets where no centralized register exists, such as gold or silver."

Regulation eyed

Bitcoin is the most popular of the "virtual" currencies which allow users to exchange online credits for goods and services. While there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining. Some 13 million bitcoins are believed to be in circulation, with a cap of 21 million meaning no more bitcoins can be created after that point.

Read MoreLondon aims to become a bitcoin hub

In New York, regulators are currently weighing up a raft of new rules to regulate bitcoin and other virtual currencies. In China, the central bank has been busy warning people of the risks associated with holding bitcoin and online exchanges have been hit with a number of regulatory issues.

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BoE: Bitcoin could transform stock markets

Workington Comets can't repeat bonus-point show at Berwick

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By John Walsh

Last updated at 10:03, Thursday, 11 September 2014

BERWICK 55 COMETS 37: Workington Comets returned empty-handed from their trip to Berwick after being in contention for a bonus point for most of the match.

Leading the way: Comets Josh Grajczonek on the outside of Berwick's Alex Edberg, blue, and David Bellego. Below, Mason Campton heads Berwick's Bellego in the opening heat

In good heart from the point picked up at Peterborough the night before, the Comets were unable to repeat the trick.

Team manager Tony Jackson said: It was a good effort really and the final score doesnt really give a true reflection. We were in the mix for a bonus point for a long time and their two 5-1s in the last three heats rather took it away from us.

We seem to be in a situation where we cant get all the lads firing at the same time. However the encouraging thing recently has been the way Joe Jacobs has been riding.

Hes fitted in well at reserve and his win in heat 14 was against experienced rivals.

Ricky Wells is riding well and he top-scored again for us and he picked up two of our five race wins.

Workington had to make a late change at reserve where Simon Lambert pulled-out after feeling unwell during and after the Peterborough match.

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Workington Comets can't repeat bonus-point show at Berwick

Flavours of Greece at the World Travel Awards Europe Gala Ceremony 2014 special weekend – Video

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Flavours of Greece at the World Travel Awards Europe Gala Ceremony 2014 special weekend
A private tour of the Athens Acropolis Museum to a relaxing cruise across the Saronic Gulf were some of the activities for attendees to the World Travel Awar...

By: PhilBlizzardTVDubai

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Flavours of Greece at the World Travel Awards Europe Gala Ceremony 2014 special weekend - Video