The island of Jersey off the coast of France is being developed as the first location financed by Bitcoin currency. Although the island has a British Crown dependency, it is not part of the UK or the EU and it is self governing.
Bitcoin, a kind of virtual currency, is now accepted as a form of currency by a growing number of businesses. None accept only Bitcoin currency-yet.
The most popular digital currency, Bitcoin, was developed in 2009 by a programmer or programmers working under the pseudonym Satoshi Nakamoto. Today, it makes up the vast majority of the digital currency economy and has seen prices for each coin jump to $230 in April from $13 in January.
Bitcoins are created through a complex process known as “mining.” When a buyer purchases the coins from an official exchange service, the sale is added to a ledger which then creates new coins. At that point, the money can be used like traditional currency at participating online retailers. Unlike most other forms of money, isn’t issued by a government or other central authority. Instead, Bitcoins are “mined” by users who employ software to solve extremely difficult math problems. The Bitcoin software is programmed to continually allow for the increase of the number of Bitcoins introduced into the money supply until the year 2140, when the process is scheduled to stop and no more new Bitcoins will be created.
The digital currency market is relatively small for now — estimated at about $2 billion.
Jeff Newman represents whistleblowers including IRS whistleblowers revealing major tax fraud