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Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Nakamoto introduced the idea on 31 October 2008 to a cryptography mailing list, and released it as open-source software in 2009. There have been several high profile claims to the identity of Satoshi Nakamoto; however, none of them have provided proof beyond doubt that back up their claims.

The system is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain, which uses bitcoin as its unit of account. Since the system works without a central repository or single administrator, the U.S. Treasury categorizes bitcoin as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed and it is more correctly described as the first decentralized digital currency. Bitcoin is the largest of its kind in terms of total market value.

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is called mining and miners are rewarded with transaction fees and newly created bitcoins. Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction fee to the miners.

In February 2015, the number of merchants accepting bitcoin for products and services passed 100,000. Instead of 2–3% typically imposed by credit card processors, merchants accepting bitcoins often pay fees in the range from 0% to less than 2%. Despite the fourfold increase in the number of merchants accepting bitcoin in 2014, the cryptocurrency did not have much momentum in retail transactions. The European Banking Authority and other sources have warned that bitcoin users are not protected by refund rights or chargebacks. The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and media. Criminal activities are primarily centered around darknet markets and theft, though officials in countries such as the United States also recognize that bitcoin can provide legitimate financial services.

As Bitcoin lurches toward mainstream acceptance, ZDNet reviews the high-profile disasters, data breaches, vulnerabilities, and criminal cases that shook up digital currency in 2017.
Litecoin, a leading bitcoin rival, has soared 150 percent in four days.
With "buy bitcoin with credit card" trending on Google, investors should be wary.
Ransomware authors are profiting from the rise of the cryptocurrency -- but it's also bringing some unexpected problems for them and other dark web operators.

Bitcoin fees are skyrocketing

Bitcoin network has struggled to process more than four transactions per second.
"The tulip bubble was a technology bubble," a scholar told Ars.
Breach occurred just prior to bitcoin's debut on two major US exchanges, the AP reports.
It's hard to deny that Bitcoin is in the midst of a massive bubble.
Users are watching the attacker's wallet address like hawks, waiting for any movement of their stolen coins.
Mining outfit says its entire wallet gone, estimated $62m Cryptocurrency mining market NiceHash says it has fallen victim to a hacking attack that may have resulted in the loss of its entire Bitcoin wallet.…