The Rise Of Bitcoin

Bitcoin is a virtual currency without physical form or governmental authorization. It trades freely via electronic means. Although rare, bitcoin may also be transferred in person, by a laptop or tablet computer. Bitcoins come in whole or in fractional form – i.e. 0.000001 of a bitcoin is a microbit. There are a finite number of bitcoins. A limit of 21 million bitcoins can be unlocked – more than half of which have already been ‘mined.’

The number of initial bitcoin users in 2009 was small. By 2010, daily worldwide bitcoin transactions were generally under a thousand a day.1 In late 2010, the total worldwide ‘market value’ of all bitcoin first exceeded $1 million. In 2013, bitcoin is in the news on a daily basis, especially in light of heightened uncertainty toward traditional financial systems such as that resulting from the restrictive actions taken by the government of Cyprus. Interest in bitcoin also increased from fear that select governmental authorities wish to track civilian transactions. Lastly, much press attention has focused on the rise in the value (per unit) of bitcoin. In response to the increase in volume and market value, FinCEN (the Financial Crimes Enforcement Network of the U.S. Treasury) issued advisory guidance on March 18, 2013 concerning virtual currencies. The new rules became effective immediately.

Originally Published in Transaction World Magazine - July 2013

Please see full Article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Pepper Hamilton LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.