To lower the costs, bitcoin miners have set up in places like Iceland where geothermal energy is cheap and cooling Arctic air is free.[204] Bitcoin miners are known to use hydroelectric power in Tibet, Quebec, Washington (state), and Austria to reduce electricity costs.[203][205][206][207] Miners are attracted to suppliers such as Hydro Quebec that have energy surpluses.[208] According to a University of Cambridge study, much of bitcoin mining is done in China, where electricity is subsidized by the government.[209][210]
The domain name "bitcoin.org" was registered on 18 August 2008.[15] In November 2008, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System[5] was posted to a cryptography mailing list. Nakamoto implemented the bitcoin software as open source code and released it in January 2009.[16][17][10] Nakamoto's identity remains unknown.[9]
Volatility. This very reason many speculators are attracted to Bitcoin is the same reason many potential users are hesitant to get involved. Users that look at Bitcoin as a speculative investment option are essentially gambling on the process, and the future price of Bitcoin is largely unknown. There are estimates that Bitcoin will both be worth pennies in a few years, while some predict that a single bitcoin will be worth $500k in three years. As new investors continue to invest and the market cap grows, Bitcoin’s price could become more stable.

According to the European Central Bank, the decentralization of money offered by bitcoin has its theoretical roots in the Austrian school of economics, especially with Friedrich von Hayek in his book Denationalisation of Money: The Argument Refined,[120] in which he advocates a complete free market in the production, distribution and management of money to end the monopoly of central banks.[121]:22

On 6 August 2013, Federal Judge Amos Mazzant of the Eastern District of Texas of the Fifth Circuit ruled that bitcoins are "a currency or a form of money" (specifically securities as defined by Federal Securities Laws), and as such were subject to the court's jurisdiction,[75][76] and Germany's Finance Ministry subsumed bitcoins under the term "unit of account"—a financial instrument—though not as e-money or a functional currency, a classification nonetheless having legal and tax implications.[77]
In case you haven't read any of my Bitcoin Value Indicator reports, you can get caught up here. The idea is that since Bitcoin is a log scale phenomenon, and the organic growth of the network can be modeled using several proxies, then we can estimate a range of values that may be appropriate by using this data and creating meaningful visualizations with it.
An official investigation into bitcoin traders was reported in May 2018.[175] The U.S. Justice Department launched an investigation into possible price manipulation, including the techniques of spoofing and wash trades.[176][177][178] Traders in the U.S., the U.K, South Korea, and possibly other countries are being investigated.[175] Brett Redfearn, head of the U.S. Securities and Exchange Commission's Division of Trading and Markets, had identified several manipulation techniques of concern in March 2018.
Speculation drives numbers. Many Bitcoin users are holding onto their bitcoins in hopes of selling them off for an enormous profit one day. With news articles portraying Bitcoin millionaires as lucky kids who got in early, you can’t really blame them. For example, if you had spent your $5 latte money on 2,000 bitcoins one morning in 2010, they would be worth about $5.4 million today. Makes you really wish you’d managed your Starbucks budget better, doesn’t it?
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