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Most security analysts don't regard the Bitcoin algorithm as particularly sophisticated, but until a new paper was published there was no explicit flaw. However, the problem that has been uncovered is more to do with game theory than cryptography. The basic Bitcoin algorithm may not be…lock as solved. Now consider what happens if a mining pool decides not to announce that it has solved a block. That pool is the only group of miners that knows to move on to the next block. The other, honest, miners waste their time trying to solve a block that has already been solved.

Peter Cohan ,Contributor I write from near Boston about startups and political economy Tech | 6/28/2011 @ 4:08PM | 37, 879 views Image via Wikipedia Bitcoin – the online currency used to buy Alpaca wool socks and illegal drugs whose value dropped from $17.50 to “pennies” after a June 1…’s why PayPal was able to gain traction when it was the sole online means of paying for items,such as Beanie Babies on eBay (EBAY) back in the 1990s. Originally,PayPal was to be a person-to-person payments system for people to zap electronic payments to each other on their Palm Pilots.

A Canadian mining company agreed to pay a contractor in Bitcoins for exploration work to be carried out at a property that contains tungsten. Alix Resources Corp. said today in a statement it will pay Ridge Resources Ltd. for the work at its Windy property about 15 kilometers (9 miles)…oday at $343.63 and traded as high as $357 on BitStamp, an online exchange. The virtual currency was introduced four years ago and exists as software that’s designed to be untraceable, making it an attractive tender for those seeking to trade anonymously via the Internet. Bloomberg.com

Precious metals purveyor Amagi Metals announced on Friday that as of mid-August, their current bank account with San Francisco headquartered Bank of the West would be closed. In the latest case of banking aversion to bitcoin, Amagi Metals that the basis for the account closure is the f… of nearly $50, 000 of sales denominated in bitcoin. While it remains to be seen exactly what it is about servicing a bitcoin-friendly business that keeps the decision-makers at Bank of the West awake at night, it is clear that this is not the first nor the last of this type of action.