BITCOIN & the BANKING CRISIS on BBC Newsnight with JEREMY PAXMAN

BITCOIN & the BANKING CRISIS on BBC Newsnight with JEREMY PAXMAN Subscribe here for more Max Keiser & Financial crisis news: VISIT OUR BLOG: / BBC Newsnight's vetern journalist Jeremy Paxman investigating Bitcoin with guests Daniel Knowles from The Economist and Trace Mayer from How To Vanish Bitcoin is often referred to as a new kind of currency. But it may be best to think of its units as being virtual tokens which have value because enough people believe they do and there is a finite number of them. Each of the 11 million Bitcoins currently in existence is represented by a unique online registration number. These numbers are created through a process called "mining" which involves a computer solving a difficult mathematical problem with a 64-digit solution. Each time a problem is solved the computer's owner is rewarded with 25 Bitcoins. To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of about 3,600 new Bitcoins a day. To receive a Bitcoin a user must also have a Bitcoin address - a randomly generated string of 27-34 letters and numbers - which acts as a kind of virtual postbox to and from which the Bitcoins are sent. Since there is no registry of these addresses, people can use them to protect their anonymity when making a transaction. These addresses are in turn stored in Bitcoin wallets which are used to manage savings. They operate like privately run bank accounts - with the proviso that if the data is lost, so are the Bitcoins contained finance yahoo, how to finance your money, finance 101, finance 101 wharton, finance 101 lecture, finance 1, personal finance 101, finance 240 sdsu, finance 201, finance 2014, finance 2, bitcoin finance 2014, finance 301, finance 5 program, finance 5, american economy animation, american economy collapse, american economy collapse 2014, when will american economy collapse, american economy documentary, american economy explained, american economy history, american economy may 2014, american economy shrinks, american economy today, how the american economy works, american economy 1950s, american economy 2014, global economy animation, global economic collapse, global economy documentary, global economy explained, global economy journal, global economy kagundu, global economy mean, global economy news, global economy outlook, global economy pdf, global economy ryan harvey, global economy reset, how does the global economy work, global economy zimmer, global economy 2014,