Bitcoin is a virtual currency that allows users to exchange online credits for goods and services. There is no central bank that issues them. Instead, bitcoins are created online using a computer to complete difficult tasks, in a process known as mining. The digital currency is renowned for its volatility and has been heavily criticized for facilitating illegal activity, given that it can be used anonymously.<\/p>\n
Jeffrey Robinson, the author of \"BitCon: The Naked Truth about Bitcoin\" is one such notable critic. He told CNBC previously that he believed it was a \"pretend currency masquerading as a pretend commodity.\" <\/p>\n
The insolvency of Japanese exchange Mt. Gox and the recent trading suspension at Bitstamp, the second-largest dollar-bitcoin exchange, has hurt the reputation of the cryptocurrency and has dented the price, which tanked by around 65 percent in 2014. <\/p>\n
Monday's news caused its value to spike, however, and is likely to inject some much-needed trust back into the digital currency. It saw a 16 percent jump on Monday morning and was trading close to $300 for one bitcoin, according to industry website CoinDesk. <\/p>\n
\"To be clear, it's insurance against bitcoin loss,\" said Ehrsam \"On top of the fact that we've been operating successfully in the U.S. for about 2 1\/2 years, the largest bitcoin company has insurance to back it all up.\" <\/p>\n
This is important news for the U.S.-based exchange marketplace, according to Jon Matonis, the founding director of the Bitcoin Foundation, which is a not-for-profit organization which aims to promote and protect the cryptocurrency. <\/p>\n
\"It will be a true floating-rate exchange with various order types,\" he told CNBC via email. \"U.S.-based floating-rate exchanges contribute less than one percent to overall global trading volume for bitcoin, so I would expect that percentage to increase significantly.\" <\/p>\n
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Bitcoin gets regulated US exchange<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin is a virtual currency that allows users to exchange online credits for goods and services. There is no central bank that issues them. Continue reading