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Watch from 13:44

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Nobel Prize-winning Economist Paul Krugman on Tax Reform, Trump, and Bitcoin

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An economists view of bitcoins - Google Search

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Bitcoin has been the de facto currency of the Dark Web - the 'hidden' Internet accessible only by Tor - since the pioneering marketplace Silk Road, the 'eBay of drugs', arrived in 2011.

But just how much do we know about these new underground economies? Who is buying and selling - and what? Here's what available data can tell us about bitcoin on the Dark Web.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin has been the de facto currency of the Dark Web - the 'hidden' Internet accessible only by Tor - since the pioneering marketplace Silk Road, the 'eBay of drugs', arrived in 2011. But just how much do we know about these new underground economies? Who is buying and selling - and what?

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What is Bitcoin?

What is Bitcoin? It is digital money that you can transfer to another person without the need of a third party, like a bank. It was created in 2009, It's still growing in the marketplace and is slowly but surely becoming a trusted way to pay without revealing who you are. It can be thought of as a digital cash - it's just one person transferring value to another person, no bank is involved. Bitcoins are not issued or created by any bank or government.

what is bitcoin and how does it work? When you transfer money from your Bitcoin wallet to another person, you do that by writing a transaction in the public. Everyone is watching this and has their own copies of it, and so they now know how much money is in your wallet, and how much in your friend's wallet. So everyone knows how much money each This is where everyone money is stored, in this public ledger with millions of copies that everyone maintains together. They do, however, wallet contains. not know who owns that money in wallet, Bitcoin has no theory of identity.

Is it secure?

what is bitcoin and is it secure? Yes, It is completely secure. when your Bitcoin wallet is generated, it's given to you in two parts. One part is public, an address, that you have to give to other people so that they know where to send you money, and second part is secret part, a key. The key is used to sign the transactions. It takes the amount from your wallet, the sender address, receiver address, and the key, mashes it together with math, and result in a signature, that you put in the ledger along with the transactions.

Is it legal?

what is bitcoin and Is it legal? Because there is a lot of dark and hidden area and governments aren't really able to control it, some countries have banned the use of Bitcoin, but it's completely legal in the US, However Japan is a huge Bitcoin supporter.

Who is Inventor of Bitcoin?

The inventor is actually unknown. The founder used an alias, Satoshi Nakamoto. It keeps the theme of anonymity going on.

what is bitcoin and Is it perfect? No, the ability to make purchases anonymously can make it easier to partake in illegal activity. However, nobody can deny the fact that it's definitely developing the way that we regulate monetary transactions. We'll have to stay tuned to see how it plays out in the future.

What is Bitcoin and should you invest in Bitcoin?

what is bitcoin? should you invest in it? Yes, and here's why:

Completely decentralized and free from central bank manipulation and government policies

More and more people and businesses started using Bitcoin

Just like gold, Bitcoin's value does not correlate with fiat currency and tends to move opposite to stocks & bonds

In comparison to gold, bitcoin could be significantly undervalued at the moment

The supply is limited. Only 21 million bitcoin can ever be mined, once the last bitcoin is mined the value will rise substantially which by the looks of it is just a couple years away from happening.

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What is Bitcoin? It is digital money that you can transfer to another person without the need of a third party, like a bank. It was created in 2009, It's still growing in the marketplace and is slowly but surely becoming a trusted way to pay without revealing who you are.

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Bitcoin - Simple English Wikipedia, the free encyclopedia

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A Bitcoin address, or simply address, is an identifier of 26-35 letters and numbers, beginning with the number 1 or 3, that represents a possible destination for a bitcoin payment. Addresses can be generated at no cost by any user of Bitcoin. For example, using Bitcoin Core, one can click "New Address" and be assigned an address.