Bitcoin is a virtual currency that was created in 2009 as an alternative to traditional currencies. It allows for anonymous and untraceable transactions over the internet through a peer-to-peer network. While it offers benefits like limited supply and no central authority, it also enables illegal activities on websites like Silk Road due to its anonymity. Bitcoin has increased dramatically in value but its long term success is still uncertain given concerns about its use for criminal purposes and the unstable global economic environment.

1. Moscow, 23 May 2013

2. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
Over the last decade, according to the evolution of the Internet, attempts
to achieve a coin cybernetics (cybercoin) or digital money, were numerous
and mainly related to the growing use of the network for electronic
commerce (E-commerce).
But in recent years, more precisely since 2009, a new attempt to market
a new virtual electronic money, seems to have taken the right direction
and the sudden escalation of its use, seems to confirm success.
It's called Bitcoin (digital currency) and its major peculiarity reside in
anonymity and non-traceability.

3. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
Born a few years ago, is being heralded as a Bitcoin virtual currency
whose success is surrounded by numerous oddities. The first is its
creator: Satoshi Nakamoto.
In an article published in October 2011 by The New Yorker, journalist
Joshua Davis, who for years have started searching for the elusive
inventor of Bitcoin, asserts that "Satoshi Nakamoto" is nothing more than
just a pseudonym behind which lurks a group consisting of hundreds of
experts in cryptography, peer-to-peer systems and techniques for
transaction banking network.

4. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
The project has its origins in the architecture peer-to-peer
(P2P), designed for applications requiring very high data transmission
speed, allowing at the same time, sharing the same data among multiple
users (nodes) on the same network.
With this type of architecture, any node is able to initiate or complete any
transaction.
The nodes can differ among themselves in the local
configuration, processing speed, in bandwidth and in the amount of stored
data.
The database that contains the information is distributed among the
nodes of the network.
The transactions are all tracked and transfers of bitcoin, including public
accounts of the nodes are encrypted through the use of the system of
public key cryptography, mathematical algorithm that provides security
and protection to the transmitted data

5. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
The purpose of Bitcoin is essentially to allow the possession and the
anonymous transfer of digital money.
Another important feature is that Bitcoin addresses do not contain any
information that could bring back to its rightful owner, which guarantees
the anonymity function at any level.
Regarding how to use Bitcoin, anyone can acquire the appropriate
software at no cost and downloading it from the network.
After the download and installation is automatic and program, it
autonomously proceeds to update all transactions on different nodes of
the network. The application also provides the generation of a bitcoin
address in readable form, with random sequences of digits long and on
average 33 characters, which always start by 1, of the form
1Ai83aafRLWYtMDNbP8b3uiWyquun6ot46..

6. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
Image of the software installation ...

7. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
Image generation of the address (in this case, for example, was added
the name of Luigi Rossi, but the field can be left blank)

8. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
The Bitcoin you can buy on the Internet with any currency.
The value of Bitcoin increases exponentially.
In May, 2012, a Bitcoin was quoted at 03.05 U.S. dollars. In April
2013, the value of a Bitcoin has come to 229 U.S. dollars.

9. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
The benefits of Bitcoin are:
1. Limited. The amount of bitcoins in circulation is limited, and this allows you to
maintain the value. The higher value, the coin is more convenient to use in
terms of its exchange ratio. Moreover, being a coin "strong" can also be
regarded as a "reserve" to be set aside. The most direct comparison is with the
gold: there is less gold in circulation, the higher its value.
2. Network Management software. The currency is exchanged on the
Internet, directly in a peer-to-peer and without any supervisory
authorities, banking and government.
3. Forgery impossible. Contrary to what happens for the other currencies, bitcoin
can not be falsified. The maximum amount outstanding is fixed and
transactions, with regard to the quantities of currency, are all checked and
verified.
4. Exchange and methods of use facilitated. The bitcoin can be exchanged easily
and quickly on the net.
5. Custody and simplified reserved. The bitcoin may be stored individually (in their
own personal computers) without the aid of banks or bodies to ensure the
housing.
6. Store of value. Being a very stable currency value (contrary to what happens in
other currencies), can be a "safe haven."

10. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
Since bitcoins are routed through a
peer-to-peer, it remains impossible
to trace the movements of
electronic money and to disclose
the identity of those who carry out
transactions.
These features make the currency
of bitcoins privileged for all those
transactions illegal and criminal
activities, such as the sale of
weapons and drugs.
For example, on-site Silk Road, you
can buy drugs using Bitcoin
(everything is handled in a
completely anonymous)
Bitcoin address

11. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013
Very few would have bet on the simple existence in the life of this virtual
money. Indeed, many had announced that its value would be returned to
zero within a few months.
Although the global economic scenario, more and more confused and
chaotic, does not bode well for the near future, the existence of a
cryptomoneta as a form of payment and investment, it may be winning
And not just because of the uncertainty in the currency markets, as well
as for the possibility of trade and financial transactions that might escape
the controls that government institutions in many countries are working
to combat rampant tax evasion.
Bitcoin may actually represent a revolutionary tool in the world scenario.
Last year, some have even claimed that if Bin Laden had been available at
the time of this prodigious cryptomoneta, would be able to equip
themselves with better weapons and a wider chain of acquisition of
infrastructure and equipment!

12. Bitcoin: Lights and Shadows of Virtual Money
Moscow, 23 May 2013