Signs of the Times - February 2014 - (Page 16)

Te c h no lo gy U p date By Darek Johnson Virtual Money Darek Johnson is ST's Senior Technology Editor/ Analyst. Email him at darek.johnson@ stmediagroup.com Suppose a sign buyer wants to pay you in bitcoins ... W hat you should know about virtual currency is that it's both safe and risky - and, because it (or something like it) may become mainstream, you should know even more. Here's a brief introduction: What is virtual currency? Virtual currency, aka, digital or cryptocurrency, is virtual money that acts as alternative currency and, usually, is transferred via the Internet. Presently, Bitcoin is the most recognized virtual-currency system. Some others are Litecoin, Peercoin and Primecoin, to coin some terms. The tech/money gurus say, just as digital technology and the Internet reinvented communication and business transactions, it may also reinvent world finance systems. In some ways, it already has, because banks and governments presently apply numerous web-based options for receiving, holding, transferring and distributing money. Further, people, banks and governments constantly search for ways to spend less money (fees) on such transactions, and virtual currency may become one method. Analysts say virtual currency could complement conventional financial networks. Bitcoin, a popular virtual-currency system, isn't a centralized entity. It's literally a network of online users, worldwide; thus, it could become a dominant, future instrument. The Bank of America says Bitcoin may emerge as a serious competitor to cash in e-commerce and digitalmoney transfers. What are bitcoins? Don't think of bitcoins as coins. See them as virtual-currency certificates, similar to U.S. dollars in thought, but not form. As virtual currency, they have no form. Bitcoin (the proper noun) describes the system; bitcoin (lower case) describes the currency. Bitcoins function like any other currency, meaning, you can buy and sell items with them. A growing number of online and real-world merchants accept them as payment. See www.bitcoin.org/en/ you-need-to-know. Who owns Bitcoin? No one owns the Bitcoin network. Bitcoin users around the world control it and, to work properly, it requires a complete consensus among all users and developers. The Bitcoin protocol is an opensource, cryptographic system that operates on an international, peerto-peer, file-sharing network that allows instant monetary transactions with little or no processing fees. Think Linux. Are bitcoins legal? Not in every country, so you should check local laws first. However, bitcoins are legal in the U.S. and numerous other countries, but not China, of course. Also, know that virtual-currency systems are not presently regulated in the U.S., but businesses that exchange or issue virtual currency are required to conform to certain laws. The U.S. Dept. of the Treasury's Financial Crimes Enforcement Network (FinCen) recently intervened (cautioned) several virtual-currency exchange or issue firms. It has also issued a document providing interpretive guidance of the Bank Secrecy Act (BSA) for persons creating, exchanging and transmitting digital or virtual currencies. See http:// fincen.gov/statutes_regs/guidance/ html/FIN-2013-G001.html What determines a bitcoin's value? Supply and demand. The number of bitcoins units in circulation and the demand for the currency determine its value. How do you get bitcoins? Visit www.bitcoin.org and create a 16 SIGNS OF THE TIMES February 2014 http://www.bitcoin.org/en/you-need-to-know http://www.bitcoin.org/en/you-need-to-know http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://www.bitcoin.org

Table of Contents for the Digital Edition of Signs of the Times - February 2014

Signs of the Times - February 2014
Contents
ST Update
Technology Update
Welcome to the 21st Century
Vinyl Apps
Strictly Electric
LED Update
Software Update
Technology Review: Cyrious online
Technology Review: Sign and Printmakers Guild
Sign Museum News
New Products
Walls of Fame
A Designer’s View of Health-care Signage
Health-care Signage: Care Required
Health-care Signage Trends
Estimating Software
Dynamic Digital Signage Made Simple, Part 2
Industry News
Advertising index
Editorially speaking

Signs of the Times - February 2014