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Personal Finance - Financial planning generally involves analyzing an individual's or a family's current financial position, and formulating strategies for future needs within financial constraints. Personal finance is a very personal activity that depends largely on one's earnings, living requirements, goals and individual desires.
Journal of Economic Perspectives—Volume 29, Number 2—Spring 2015—Pages 213–238
Bitcoin is an online communication protocol that facilitates the use of a
virtual currency, including electronic payments. Since its inception in 2009
by an anonymous group of developers (Nakamoto 2008), Bitcoin has served
approximately 62.5 million transactions between 109 million accounts. As of March
2015, the daily transaction volume was approximately 200,000 bitcoins—roughly
$50 million at market exchange rates—and the total market value of all bitcoins
in circulation was $3.5 billion (Blockchain.info 2015). Table 1 summarizes Bitcoin
activity to date. (We will follow the convention in the computer science literature
of using capital-B Bitcoin to refer to the system, and lower-b bitcoin to refer to the
unit of account.)
Bitcoin’s rules were designed by engineers with no apparent influence from
lawyers or regulators. Rather than store transactions on any single server or set of
servers, Bitcoin is built on a transaction log that is distributed across a network
of participating computers. It includes mechanisms to reward honest participation,
to bootstrap acceptance by early adopters, and to guard against concentrations of
power. Bitcoin’s design allows for irreversible transactions, a prescribed path
of money creation over time, and a public transaction history. Anyone can create a
Bitcoin: Economics, Technology, and
■ Rainer Böhme is Professor of Security and Privacy, University of Innsbruck, Innsbruck,
Austria. Nicolas Christin is Assistant Research Professor, Department of Electrical and
Computer Engineering and CyLab, Carnegie Mellon University, Pittsburgh, Pennsylvania.
Benjamin Edelman is Associate Professor of Business Administration, Harvard Business
School, Boston, Massachusetts. Tyler Moore is Assistant Professor of Computer Science and
Engineering, Southern Methodist University, Dallas, Texas. Their email addresses are rainer.
firstname.lastname@example.org, email@example.com, firstname.lastname@example.org, and t