Bitcoin

Bitcoin Explained

I thought some traders who have heard about this "currency" might be interested in learning more about it in this video.

And, what happened to it:

Bitcoin exchange halts trading, to return funds

April 18, 2013, 3:24 pmYahoo!7

The company’s founder Roman Shtylman, says that "due to circumstances outside [BitFloor’s] control" it "must cease all trading operations indefinitely."

Virtual currency Bitcoin's trading exchange is closing its doors, halting trading and announcing that it will return everyone’s funds.

In an announcement on its main site, the company’s founder, Roman Shtylman, says that "due to circumstances outside [BitFloor’s] control" it "must cease all trading operations indefinitely."

BitFloor is Bitcoin’s New York-based exchange, specialising in trades of the digital peer-to-peer currency.

The price of Bitcoin has been fluctuating wildly over the last few weeks and the decision comes after weeks of denial of service attacks and technical problems that led to severe price fluctuations.

BitFloor has said that because its US bank account is closing it won’t be able to provide the same level of dollar deposits and withdrawals that it has been up to this point.

"Unfortunately, our US bank account is scheduled to be closed and we can no longer provide the same level of USD deposits and withdrawals as we have in the past," wrote BitFloor founder Roman Shtylman. "As such, I have made the decision to halt operations and return all funds.

"Over the next days we will be working with all clients to ensure that everyone receives their funds. Please be patient as we process your request."

The shutting down of BitFloor comes after it temporarily suspended operations last September after the theft of 24,000 BTC. At the time, Bitcoin was trading for $10.40.

Bitcoin was originally developed in 2008 by a computer developer using the pseudonym "Satoshi Nakamoto", who published a paper describing how it could work.

The goal of creating Bitcoin was to have an alternative currency that could not be devalued by governments or central banks.

Obtaining Bitcoins is similar to opening an account through a bank. “All a user has to do is visit Bitinstant and convert a local currency into the virtual money. The currency is traded just like any other, with the most popular exchange being Mt.Gox,” reports the Motley Fool.