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Monday 18 SepteMber 2017 BUSINESS
A24

Bitcoin ... the way to the future or path to financial ruin?

a change in the computer to taxation. But in the end,
code, which was designed cash talks. According to
to improve capacity on IRS guidance: “Virtual cur-
the increasingly clogged rency that has an equiva-
network. The maneuver lent value in real currency,
worked, helping to avoid or that acts as a substitute
a split in bitcoin and driv- for real currency, is re-
ing the value up to roughly ferred to as ‘convertible’
$2,800 by the end of July. virtual currency. Bitcoin
Bitcoin’s value has fluctu- is one example of a con-
ated since then. At the be- vertible virtual currency.
ginning of August bitcoin’s Bitcoin can be digitally
value stood at about $2,710 traded between users and
and shot up to more than can be purchased for, or
$4,700 by month’s end. But exchanged into, U.S. dol-
there’s been a steady de- lars, Euros, and other real
cline this month, with the or virtual currencies.” And
value slipping to approxi- it’s a hotly pursued asset
mately $3,300 on Thursday, by U.S. intelligence agen-
according to Blockchain. cies, which see bitcoin as
info. a funding vehicle in some
instances for groups or in-
WHAT HAPPENED LAST dividuals that intend to do
In this Monday, March 31, 2014 photo, Tim McCormack, of Boston, inserts cash into a Liberty Teller WEEK? One of China’s big- harm. China’s central bank
ATM while purchasing bitcoins at South Station train station, in Boston. On Thursday, Sept. 14, 2017,
Bitcoin tumbled 15 percent to about $3,300 against the dollar. gest bitcoin exchanges has yet to respond to ques-
(AP Photo/Steven Senne) announced that it will tions about bitcoin’s future,
By The Associated Press third of its value since Sept. who operate computer cease trades following re- but it has warned in the
Bitcoin, hailed in some 1. But it’s still up about $600 farms that verify other us- ports that Beijing will order past that the digital curren-
quarters as the future of compared with last year at ers’ transactions by solving all Chinese exchanges to cy is being traded without
currency, is having a rough this time. Still getting up to complex mathematical close. And on Tuesday, regulatory oversight and
week, with a flurry of rumors speed on bitcoin? Here’s a puzzles. These miners re- JPMorgan Chase CEO Ja- might be linked to fraud.
that China will shut down quick rundown. ceive bitcoin in exchange. mie Dimon called bitcoin The bank banned initial of-
exchanges and the head Bitcoin can be converted a fraud, saying that if any ferings of new digital cur-
of a major U.S bank call- WHAT IS BITCOIN? Bitcoin is to cash when deposited of his traders were dealing rencies last week. Follow-
ing bitcoin a “fraud.” Plum- a digital currency created into accounts at prices set in the currency, he’d fire ing the failure of a bitcoin
meting prices have again and exchanged without in online trading. them. Bitcoin tumbled 6 exchange in Japan called
raised questions about the the involvement of banks percent between Tuesday Mt. Gox, that country has
wisdom of owning it, if not or governments. Transac- IS THIS BITCOIN’S SWAN- and Wednesday. enacted new laws to reg-
its legitimacy. The digital, or tions allow anonymity, SONG? Not necessarily. ulate bitcoins and other
cryptocurrency, tumbled which has made it popular Let’s take a look at recent HOW ARE SOVEREIGN NA- cryptocurrencies. Mt. Gox
15 percent Thursday to with people who want to data: In mid-July the val- TIONS DEALING WITH BIT- shut down in February 2014,
about $3,300 against the keep their financial activity, ue of bitcoin was around COIN? In the U.S., the IRS saying it lost about 850,000
dollar. Bitcoin, which has and their identities, private. $1,900 per dollar, dropping has issued guidelines on bitcoins, possibly to hack-
had bouts of volatility in The digital coins are cre- from nearly $2,500 at the the currency, calling it an ers. The Japanese govern-
the past, has shed about a ated by so-called “miners”, end of June. Users forced “intangible asset” subject ment has also spelled out
regulations to help pre-
Key Equifax execs out after huge data breach vent misuse of bitcoins and
other virtual currencies for
terrorism or other illegal ac-
By KEN SWEET — under intense pressure ficer, and David Webb, tion technology executive tivities, including requiring
AP Business Writer since it disclosed last week the chief technology of- inside Equifax. Webb is be- banks and other businesses
NEW YORK (AP) — Equifax that hackers accessed the ficer, are retiring. Mauldin, ing replaced by Mark Rohr- to verify identities, keep re-
announced late Friday that Social Security numbers, a college music major, had wasser, who most recently cords and report suspicious
its chief information officer birthdates and other infor- come under media scru- was in charge of Equifax’s transactions. The regula-
and chief security officer mation — also released a tiny for her qualifications in international technology tions implemented in April
would leave the company detailed, if still muddled, security. Equifax did not say operations. require virtual currency
immediately, following the timeline of how it discov- in its statement what retire- Equifax also provided its traders to keep customers’
enormous breach of 143 ered and handled the ment packages the execu- most detailed timeline of assets separate from their
million Americans’ personal breach. Equifax said that tives would receive. the breach yet, although own, partly because of the
information. Susan Mauldin, who had Mauldin is being replaced it raised as many questions losses suffered in the Mt.
The credit data company been the top security of- by Russ Ayers, an informa- as it answered.q Gox bankruptcy.q