ABOUT BITCOIN

The Price of Bitcoin Is About to Get a Little Government Help

Money Morning

MoneyMorning.com Report - The price of Bitcoin stands to get a boost this year from an unlikely source - state and local governments.

At least two states, New Hampshire and Utah, have bills under consideration that would make it possible for citizens to pay taxes and fees in Bitcoin. New York City has proposed similar legislation.

The reason? At least a few elected officials recognize the potential of Bitcoin to help government and citizens alike.

New York Councilman Mark Levine, the bill's sponsor there, said he saw accepting Bitcoin as a way to save Gotham a lot of money.

"It started with realizing how much money the city of New York is losing on transaction fees on credit cards, ultimately it's several million a year because of all sorts of fees and fines," Levine told CoinDesk last month.

New Hampshire Rep. Eric Schleien also sees a cost savings. He considers Bitcoin payments more secure than credit card payments.

The governments would not retain the Bitcoin. Instead, they would contract with third parties to convert the Bitcoin collected into U.S. dollars.

If it becomes law, the New Hampshire bill would take effect July 1, 2017. New York City's bill could beat that deadline; it would go into effect six months after its enactment. The Utah bill is more of a stepping stone. It merely creates a council to study the feasibility of accepting Bitcoin.

With regulatory treatment of the digital currency still up in the air, it's both surprising and encouraging that government at any level is looking seriously at adopting Bitcoin. If these pioneers have success - and especially if the use of Bitcoin saves their governments money - you can bet droves of state and local governments will follow suit over the next few years.

That kind of momentum will push wider adoption of Bitcoin among merchants and consumers alike. And the rise in use will keep nudging the price of Bitcoin higher. So will rising interest from venture capitalists and Wall Street.

The price of Bitcoin could use it. After soaring to more than $1,100 in 2013, Bitcoin prices plummeted 85% as of January of this year. Over the past two months, the price of Bitcoin has zig-zagged from lows around $217 to highs of about $295.

As of mid-day Tuesday, the CoinDesk Bitcoin Price Index was hovering around $243.

But there's another benefit to Bitcoin that in the long run could be the most important of them all...

The Dollar vs. Bitcoin Argument Revisited

One of the chief arguments Bitcoin critics use is that the cryptocurrency has no inherent value.

Now, Bitcoin enthusiasts will point out that its utility confers value. After all, bitcoin can transfer money instantly between any two parties anywhere in the world and without the need for any financial intermediary.

Plus, the underlying technology - the blockchain - adds value in its ability to associate data with transactions.

But let's just strip this down to the currency versus currency debate.

Bitcoin's critics have argued that since it is backed by no central bank or government (like the dollar), it can't have value.

But with some governments looking at accepting Bitcoin as payment, a big chunk of the fiat argument starts to get muddy.

That's because the underlying proof that the U.S. dollar has value boils down to this: Citizens must pay their taxes in dollars. Therefore, citizens must obtain dollars. Therefore, dollars have value.

This idea is at least as old as Adam Smith, the father of economics. In his 1776 book The Wealth of Nations , he wrote:

"A prince, who should enact that a certain proportion of his taxes should be paid in a paper money of a certain kind, might thereby give a certain value to this paper money, even though the term of its final discharge and redemption should depend altogether upon the will of the prince."

To be clear, having a few state and local governments accept Bitcoin would not undermine the value of the U.S. dollar. Most people would still pay their taxes and fees in dollars.

But having Bitcoin as an option to pay some government taxes and fees elevates the status of Bitcoin, giving it value it did not have before.

The more governments that jump on this bandwagon, the more value accrues to Bitcoin. And that could eventually include national governments in addition to state and local entities.

Just imagine the impact on the price of Bitcoin if the Internal Revenue Service were to start accepting it.

Yes, the IRS has ruled Bitcoin property rather than currency. But it could still choose to accept Bitcoin as payment and convert it to dollars, just as the pending legislation in New York and New Hampshire proposes.

"A significant obstacle to the growth in Bitcoin use is the perception of its legitimacy. If it were to be a form of payment accepted by the government, I could see Bitcoin achieve huge success in a relatively short period of time," Joel Valenzuela, a member of the New Hampshire Free State Project, told the PanAm Post in February.

The Bottom Line: State and local governments in the U.S. have begun to toy with the idea of accepting Bitcoin as payment for taxes and fees. Should this trend take off, the added legitimacy of government approval will push the price of Bitcoin higher.

How to Buy Bitcoin: As government and merchants adopt Bitcoin, consumers who want to use the digital currency will need more ways to get it. And the spread of Bitcoin ATMs will be one such way. While it's not quite as straightforward as using a bank ATM, it's easier than you might suspect...

Related Articles :

• • CoinDesk: New York Councilman: Bitcoin Could Save City Millions

  • PanAm Post : New Hampshire Bill Backs Bitcoin for State Taxes

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Why should I use Bitcoin?

Mobile payments made easy

Bitcoin on mobiles allows you to pay with a simple two step scan-and-pay. No need to swipe your card, type a PIN, or sign anything. And all you need to do to receive Bitcoin payments is to display the QR code in your Bitcoin wallet app and let your friend scan your mobile, or touch the two phones together (using NFC radio technology).

Security and control over your money

Bitcoin transactions are secured by military grade cryptography. Nobody can charge you money or make a payment on your behalf. So long as you take the required steps to protect your wallet, Bitcoin can give you control over your money and a strong level of protection against many types of fraud.

Works everywhere, anytime

Just like with email, you don't need to force your family to use the same software or the same service providers. Just let them stick to their own favorites. No problem there; they are all compatible as they use the same open technology. The Bitcoin network never sleeps, even on holidays!

Fast international payments

Bitcoins can be transferred from Africa to Canada in 10 minutes. There is no bank to slow down the process, level outrageous fees, or freeze the transfer. You can pay your neighbors the same way as you can pay a member of your family in another country.

Zero or low fees

Bitcoin allows you to send and receive payments at very low cost. Except for special cases like very small payments, there is no enforced fee. It is however recommended to pay a higher voluntary fee for faster confirmation of your transaction and to remunerate the people who operate the Bitcoin network.

THE BAD LIST

Protect your identity

With Bitcoin, there is no credit card number that some malicious actor can collect in order to impersonate you. In fact, it is even possible to send a payment without revealing your identity, almost just like with real money. You should however take note that some effort can be required to protect your privacy.

Bitcoin, Litecoin, Paycoin ? What is all this stuff...

You will probably by now heard of one, if not all of these. They are all examples of Cryptocurrency. We'll keep this loose, because it is evolving all the time, but they are a means to transfer a store of value directly from your 'wallet' to another person or organisations 'wallet' by means of the 'Blockchain'. Digital Currency, a bit like banks use, but decentralised, and not in the hands of any Central Bank, in fact YOU are your own Bank. How cool is that.

Bitcoin at the time of writing has a store of value at around $300 per Bitcoin. but you rarely send a whole one, you'll send say 0.00127 Btc for something.

All other cryptocurrencies apart from bitcoin, are referred to as 'AltCoins'. There seem to be new altcoins springing up daily, but most of them aren't worth being involved with. Litecoin is already established, and a few of them such as Dogecoin are gaining popularity. Dash - formerly DarkCoin is a big riser, and XPY / Paycoin is one to watch.

You are used to exchanging Dollars or other paper for goods or services. Cryptocurrency is no different, it has a value at which you can buy or sell using it.

Once you have some Bitcoin, you are very unlikely to want to change it back into the paper stuff. Many people are now paid in Bitcoin.

Btc or XBT is the abbreviation for bitcoin. Bitcoin is the protocol, bitcoin the currency.

You can now also get a Bitcoin Debit Card. I have mine via Bitstamp Just preload it and use it as you would any Mastercard Debit Card. How cool is that !! Bitstamp is a fully compliant European Bitcoin Exchange.

You can get all the basics about Bitcoin and wallets from Bitcoin.org This site also has up to date links for buying Bitcoin in your own country. Alternatively, choose an Exchange, but make sure you get your wallet first, so you have an address, like a digital deposit box, to get the Bitcoin sent to. The easiest and most popular wallet is an online wallet from Xapo orBlockchain.info

If you want to convert Bitcoin back to cash, you need an exchange where you are fully verified, such as Coinbase, or use Coinomat to withdraw to Visa Cards. Coinomat is backed by some big companies, and it's proving safe to use.

You don't even need to buy a whole Bitcoin. A Bitcoin is divisible into 'Satoshi' named after the creator 'Satoshi Nakamoto', so you can buy 0.25Btc, or $50 of Btc.

Conversion Rate 1 Bitcoin = 100 Million Satoshi (100,000,000)

1mBtc = 0.001 Btc = 1 thousandth of a Bitcoin

So now, you have some Bitcoin

You're getting all excited, and it's now a good time to pause and read the rest of this tips section. It may save you from some of the piranhas that also swim in the Inernet Pond - And they all want your bItcoin so badly, they will try anything.

Scams, Cons, Ponzi's Badsites, and how to spot them.

'110% profit in 1 Day, 120% return in 1 week, Invest in Stemcell Technology, Invest in Oil Rig Contracts, Bitcoin Matrix - These are the kind of things you'll see that are typical of scam sites,HYIPS and Ponzi Schemes.

You may even be tempted to send just a small amount - and then feel that you can trust the scheme as it returns that small amount promptly, and with interest.

This is old school standard con trickery - intended to lull you into trusting the conman with an ever larger amount. We have seen dozens of these sites.

If you are tempted, keep the amount small, no more than you are prepared to lose, it is when they get that one large deposit that they will vanish.

Please please don't fall for prey to these cons - they are ancient tried and tested ways to steal your money. They depend on your greed, and then your excitement to take more and more from you. They will offer you upgrades to your investment, move you higher up the chain - for a fee of course, all the time underselling you and building a bigger pot to run away with.

The most prevalent type of Bitcoin scam however is the good old Ponzi scheme, a crowd of which are called hyips. Some even call it a 'game', and people do 'play' these schemes, trying to get in and out quickly and take your money to the next ponzi.

These Ponzi's aren't always straight theft - but most may as well be.

Avoid many of these Badsites by checking here first. - The Badlist

There are some great sites out there that will pay you small amounts of Bitcoin to view ads (Ptc's) Here are some that we know will pay you properly.

BitcoinZebra - Moon Bitcoin - BtcClicks - FreeBitco.in

Want to advertise to The Bitcoin World

We use these - Coinurl A-Ads & Adbit

We've tried a few, but these come out on top.

Mining Bitcoin or Scrypt Coins

Mining cryptocurrency doesn't involve a pickaxe, but it does involve expensive equipment, with custom chips, especially designed for solving the complex maths problems required to 'solve' the block of data. These blocks, starting with the 'Genesis Block' form a continuous chain which is called the Blockchain. All coins whether Btc or Doge have their own Blockchain. By mining, you also discover the coins contained in these blocks. To mine a Bitcoin block on your own, is a lesson in futility. You need to pool your mining resources, and share the rewards with other miners.

Mining pools are springing up faster than anyone can keep up with. You are essentially trusting these pools with your wages. Do your homework, check the Bitcoin Forums, but even then, they can rip you, rob you and leave you high and dry. A recent development is so called 'Cloud Mining'. With these operations you don't even know the equipment actually exists, and many appear to be 'false markets' trading mining shares that may or may not exist.

Recently, cloud mining has become almost impossible to return a profit (ROI or Return on investment) as the altcoin market which led to the rise in cloudmining has virtually imploded. The price crash and sheer number of these altcoins has diluted this market to the point that it is now unprofitable

Other Mining pitfalls include Equipment that you buy, but never arrives - Preorder at your peril. If you're after a quick profit though, mining isn't for you. that train has left the station. You can still achieve a steady return from mining, but it may cost you more than you can get back. Do it for the fun factor, like a great many people, who just want to be involved.

A lot of mining scam sites are just 'clones' of legitimate operators, and these sites produce strikingly similar websites, but don't have any equipment to back it up. Ask the site for proof of genuine mining if you aren't sure.

Exchanges and Exchangers

There are a few well established exchanges. Depending which Country or Jurisdiction you are in will dictate which of these exchanges are available to you, in order to convert FIAT Currency (dollars pounds etc) directly into Bitcoin or Litecoin, and back again.

The same constraints are currently not applicable to the Cryptocurrencies themselves. They can be freely traded on a great many exchanges. The biggest danger to your funds in any exchange is probably internal fraud. The now infamous Mt.Gox is almost certainly an example of internal fraud. "I got gox'ed" is a common term now.

When choosing your exchange, read up about it, search it on Google etc. You will be surprised how chatty this community is when it comes to spotting security flaws that may threaten their irreplaceable Bitcoin. Currently, Coinbase, Bitstamp, Cryptsy, BTC-e and a couple of others are enough for most users. You can also search for sellers, and Bitcoin 'ATM's' in your vicinity.

Pump Groups - are Dumb, Selfish and Greedy Scams

Pump groups are set up to benefit the one or more people who organise these unashamed and unethical scams. We know of exchanges like MCX Now whose site owner actively promotes and approves of these 'Pumps'. If you aren't 'The Man' or in 'The Clique' - you will be mercilessly fleeced by this pondlife. They kill off cryptocurrencies with their actions - they are literally killing the goose that lays the golden egg, they are the single biggest threat to cryprocurrencies, and are too dumb, and personally selfish to realise it.

If you organise or participate in pumping a coin, then could you please refrain from ever having children. Thank You.

Ponzi's Pyramids and their spin-offs

The person who sets up the ponzi will always get rich - you probably won't. In a Ponzi Scheme - the early investors are paid out by investments from later investors. Every scheme therefore has it's limits and normally will reach a point where new investors dry up and you may be the one to lose out - Take your chances if you like risk. Will you be the one holding the bag ?

Some current Ponzi's just fake the logs, and steal your Btc outright.

The logs will give the impression that people are paid, but they are not paid!

Simple Steps Before you part with your precious Bitcoin

Check the site out - Check Here, and always 'Google' the site.

Is there an email address ? Send a question - if you get a response - look at the address it is returned from.

Ask the site owner to prove their legitimacy - if they won't or can't then it is unwise to send them your Bitcoin.

Legitimate Sites, Traders, Exchanges and Schemes have nothing to hide and will be quite happy to prove their legitimacy.

The Golden Rule is always - If you are in any doubt - don't send your Bitcoin.

If it makes you nervous and you are hovering over the 'Send Btc' button - listen to your doubts and you simply cannot then lose your Bitcoin.

You wouldn't give a total stranger a pile of money if they approached you in the street - would you?

So don't do it with your Bitcoin on the Internet either!

There are many other Scammers and crooks dreaming up new ways to take your coins, and we intend to make it as hard as possible for them to continue.

We won't be able to stop them all, or even find them all, but in the meantime you can help by not giving your Bitcoin to any site that makes you feel nervous at all. In any case, if a site makes you nervous, email us report@badbitcoin.org and we will happily give you our opinion. We don't charge for any of our services, so don't be afraid to ask.

Protecting Your Bitcoin & Your Bitcoin Wallet

If you don't have up to date antivirus software on your PC, don't enter the Bitcoin World. There are a few exploits that are well documented. A new one is Fake Flash Player exploits. Try AVG Antivirus - Free from Download.com also check your PC every couple of days with Malwarebytes AntiMalware. Use CCleaner before you close it down. Do all these and you are reasonably safe from malicious software. Most informed IT people will do all this daily. For the best level of safety - use Linux, and we also recommend a VPN if you want total anonymity. We recommend Cryptostorm.

Your Bitcoin Wallet is like the wallet in your pocket - except in the case of an online wallet such as Blockchain.info where you have the private key for that wallet - so it is incredibly difficult for anyone to steal your wallet and make use of the Bitcoin without your private key.

Despite what you may read in the Press, no wallet has ever been stolen or hacked from any Blockchain.info user. The security at this organisation sets the standard for online security.

If you use a local wallet like BitcoinQT, or Multibit your wallet is stored locally on your own computer, usually called wallet.dat, and in your 'roaming' folder. You can copy, move, encrypt and store that wallet offline, on paper or on a USB stick etc, and one new startup will even turn it into an audio CD for you.

A sensible approach is to use two wallets at least - one online like Xapo or Blockchain and one offline like BitcoinQT or Multibit (available free) With QT and Multibit, you can also password protect your wallet, back it up easily etc.

Download either wallet at Bitcoin.org

Keeping all your Bitcoin in one place is a potential point of total loss. Best to spread it about a bit until we can all be sure that one wallet or another is totally safe. Hackers are pretty clever and determined, and keyloggers, screenloggers etc are rife. You can stay safe from keyloggers with a password manager like LastPass

Mobile wallets are also available for download from Play store

Unfortunately, recently there have been reports of Trojans and other exploits contained in Android and smartphone Apps, including malicious code in 'Price Tickers' - so always 'Google' the App before you install it, and check the forums for recommended and suspect apps. Better still, If you don't need the app, just don't install it.

Remember - A weak or duplicated Password is worse than useless !

For now - the best single thing you can do to secure your Bitcoin is to concentrate on :

Password Protection ! Secure & much easier than what you do now.

NEVER - use the same password on more than one site. You may end up giving a scammer access to all your stuff. So now they have your Bitcoin, and passwords to all your online wallets, exchanges and more !

Always - Check the sites SSL certificate and https before you enter details. If the site has no SSL or https on it's registration or login page, then your account is probably already compromised and you may easily lose whatever you have in there. Insist on encryption.

The simplest solution for password safety - completely FREE and simpler than what you do now, is Lastpass which is free for desktop, but not for the app, or PasswordBox These integrate with your surfing, and add a 2nd level of protection. No need to go into it here - install it and see how easy they are to use, and how much more simple and secure it makes your bitcoin and Internet experience. There are alternatives available, but these work fine. Also, if available, use 2FA such as Authy or Google Authenticator. Using 2FA really works to secure your account. So remember, to use at least 2 layers of protection on your accounts, and a completely different password for each site. If you use your 'global' password on a crooked site, they have access to all your online stuff.

Bitcoin Gambling Sites

Gambling can be a fun bitcoin pastime and there are good established sites, that have gained reputation over time. For a fair site, try Satoshibet it's been around a long time, and we've had no issues with them. We'll add other sites as and when we can establish fairness.

All gambling carries risk. Never bet more than you are prepared to lose.

The world of Bitcoin and Cryptocurrency is often referred to as 'The Wild West' or 'The Wild Frontier'

and right now it isn't far wrong!

So far it is unregulated, decentralised, and anonymous - but only up to a point.

Currently though, there are no Bitcoin police to help you !

When you send Bitcoin - It's gone.

No way to ask for it back, no door you can knock on, no Bitcoin Bank Manager to phone It's Gone.

Be absolutely sure before you send it - Better still, use an 'ESCROW' service. This is a trusted 3rd party who will hold in trust, and then release your payment when you confirm you get the goods or service. Regardless, ask for references - phone numbers - addresses, anything - and then Check Them. Don't make it easy for the scammers. These people don't know you, they are ruthless thieves who are stooping ever lower. Impersonating Medical Research is the current low point - They are Scum.

There are no regulators for Bitcoin, the de-Centralisation means that the Bitcoin Community - and that includes you - have to keep our own house in order. Share the information, spread the word.

Please help by donating any amount of Bitcoin or Maxcoin no matter how small - it will help us in our mission. Visit our sponsors, and don't forget to report a scam to us if you find one - you will be helping others. Even if we already know of the scam, this helps build statistics and strategies.

Together we can help Bitcoin in it's progress, help each other stay safe, and keep these Bitcoin horror stories to a minimum.

Thank You for visiting the Project - Tell your Friends.

ViK - Project Lead.

visit this site regularly to check for newly reported scams.

And Follow us on Twitter @Badbitcoinorg Facebook Badbitcoin

The Badbitcoin Project is made up of a group of IT Professionals, Bitcoin Enthusiasts and Activists, brought together by ViK and with the sole aim of protecting new and existing bitcoin users, from the fake sites. We welcome new contributors and volunteers to our project. Tell us about yourselves and maybe Join the Team. report@badbitcoin.org

The Badbitcoin Project.

THE BAD SITES LIST