For many crypto-minded libertarians, Bitcoin is the future of money. But that dream hasn't been helped much by the numerous high-profile legal cases involving the currency in recent years: The Bitcoin Savings and Trust hedge fund collapsed; uncertainty fueled the implosion of Mt. Gox, the currency's largest exchange; and the high-profile Silk Road takedown is a treacherous story combining Bitcoin, drugs, and alleged murders.
Singapore should adopt a light touch approach in regulating virtual currencies such as Bitcion, and instead allow technology to do most of the "governing" to safeguard against illegal activities.
According to David Moskowitz, director of Singapore-based Bitcoin broker, Coin Republic, regulation alone will not necessarily achieve its goal of addressing concerns such as money laundering or the failure of a Bitcoin exchange.
In Bitcoin, transaction malleability describes the fact that the signatures that prove the ownership of bitcoins being transferred in a transaction do not provide any integrity guarantee for the signatures themselves.
Bitcoin today is like the Internet of 20 years ago, showing immense promise but in need of much more development, a digital currency executive said Monday, kicking off the Inside Bitcoins conference.
As the first digital system offering the possibility to store and transfer currency value in “a completely distributed manner,” it holds the promise to become a huge, global system, allowing people to securely exchange money through email or some other digital means at no cost, without involving a central bank, said Jeremy Allaire, CEO of Circle.
Game theory suggests the rules governing Bitcoin may need to be updated if the currency is to endure.
One thing cannot be disputed about the person (or persons) responsible for creating Bitcoin: they were skilled in math, and expert at coding. Five years after the Bitcoin software was first released, no major fixes have been needed to the core code, which uses cryptography to generate and transfer virtual money.