Hashtag of the day: #DeleteUber was trending over the weekend as the news was dominated by chaos and confusion over the Trump Administration travel ban. If you’re wondering what that hashtag stands for, check this out. Then read on for the latest rants.

Welcome to RantCrush Top 5, where we take you through today’s top five controversial stories in the world of law and policy. Who’s ranting and raving right now? Check it out below:

Trump’s Travel Ban Causes Chaos and Protests

On Friday, President Donald Trump issued an executive order, banning people from seven Muslim-majority countries from entering the United States. The order came abruptly and caused immense chaos at airports around the country, as people arriving from the affected countries were detained. Serious protests erupted, mainly at airports, and the move has been sharply condemned by, well, most people internationally.

It will probably have serious consequences in many ways. American academic institutions, hospitals, and businesses rely on experts and professionals from other countries. Iraq has already said it will retaliate. And an online petition in the U.K., aiming to keep Trump from making a state visit, quickly got over a million signatures.

IMAGE: Protests at airports across the United States pic.twitter.com/7OEqC9HtaT

— The Int’l Spectator (@spectatorindex) January 29, 2017

Initially, the ban also applied to green card holders and people with dual citizenship. Stories about students being stranded after a vacation or people unable to get home flooded the media over the weekend. An Iraqi man who worked as a translator for the U.S. military for a decade was detained for 18 hours at JFK Airport in New York.

As of now, it appears that no one is being detained or held at an airport anymore and there have been exemptions for 392 green card holders who have been allowed into the country. Fifteen attorneys general have issued a statement condemning Trump’s actions, calling it an “unconstitutional, un-American and unlawful Executive Order.” There is still confusion over what the order will actually mean, but the courts, big companies like Google and Facebook, celebrities, and ordinary citizens are all fighting back.

The synagogue where President Trump’s grandchild goes to preschool has condemned his travel ban https://t.co/jpunSV0ReA pic.twitter.com/0GbC3AM3ZG

— CNN International (@cnni) January 30, 2017

Emma Von Zeipel

Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

The post RantCrush Top 5: January 30, 2017 appeared first on Law Street.

It’s been a busy year, with a lot of technology developments, scandals, and big stories. Read on to check out the top 15 tech stories of 2014.

1. New York Court OKs Revenge Porn; Will the Legislature Act?

Revenge porn was one of the hottest legal topics of 2014. “Revenge porn” most frequently occurs when a person posts nude photographs of an ex-lover on the internet as a way to embarrass or degrade the ex. The photographs are often exchanged willingly, but after the relationship goes sour, a jilted ex may post the pictures in a public forum. The practice disproportionately targets women, and can truly damage someone’s life. In March, a New York court dismissed a revenge porn case, signaling that it may have been time for the legislature to step in.

2. The Dark Side of Snapchat Lands the Company in Hot Water

Snapchat, the messaging service that claims data instantly disappears upon receipt, found itself in hot water with the Federal Trade Commission (FTC) based on violations of the company’s own privacy and security policies in May. The FTC complaint mainly focused on accusations that Snapchat misled their customers by promising certain security and privacy features. Snapchat eventually settled the FTC case, but remains on probation and will require monitoring.

3. Technology and the Bullying Epidemic: The Case of Yik Yak

Between laptops, cellphones, tablets, and iPads, students have more access to technology than ever before. This comes with numerous benefits — but it also comes with a lot of responsibility. One app that took the college and high school technology scene by storm this year was Yik Yak, which allows users to post anonymously to a regional “virtual bulletin board.” While the app was invented in presumably good fun, there are concerns that the anonymity enables cyberbullies.

4. New Orleans Police Attempt to Regain Public Trust by Wearing Patrol Cameras

The Department of Justice investigation into the New Orleans Police Department following Hurricane Katrina resulted in sweeping reforms of the department, including the requirement that patrol officers wear body cameras in an effort to regain trust of the citizens. They hope to guarantee police accountability, as well as provide a resource for officers when they write their reports and testify. While how exactly to deal with implementing police cameras remains a question, it will be interesting to see what happens in New Orleans as a result.

5. Internet Fast Lanes Will Change How You Use the Web

Another hot tech topic this year was the concept of “net neutrality.” There’s been a lot of back and forth, and each major player–the Federal Communications Commission (FCC), the Internet Service Providers (ISPs) and our politicians, such as President Barack Obama, have their own takes. The legality of fast lanes is a tricky question–one that the FCC had to contend with this year.

6. Massive Celebrity Nude Photo Leak is Major Privacy Breach

Late this summer, a major leak of female celebrities’ nude photos hit the web. It was dubbed the “Fappening”–a form of crude wordplay. It included superstars such as Jennifer Lawrence, Ariana Grande, Rihanna, and Kate Upton. While some celebrities denied the validity of the photos and others embarked on conversations with the public, the whole scandal said a lot about the potentially false security of the internet, as well as the degrading way in which women are often treated on the web.

7. The Alibaba IPO: What Does Going Public Mean?

Chinese e-commerce giant Alibaba decided to go public this fall, and had the largest Initial Public Offering (IPO) in history. Alibaba’s success raised a lot of questions about what IPOs are, how they work, and what the various advantages and disadvantages are for companies. Alibaba’s extreme success is a sign that the stock market remained strong in 2014.

8. #GamerGate Takes Misogyny to a Whole New Level

Anita Sarkeesian and Brianna Wu, feminist cultural critic and video game developer, respectively, are two among a community of feminist gaming figures. They spoke out against misogyny and sexism in the gaming industry, and received threats, hatred, and truly vile responses. Sarkeesian had to cancel speaking appearances, and Wu was actually forced out of her home when her personal address was revealed. Sarkeesian and Wu were just a few of the players attacked in the #GamerGate trend that raged on late this fall.

9. AirBnB Winning Over San Francisco, With Some Rules

Airbnb is an innovative service for modern travel. It focuses heavily on community, flexibility, and the power of the internet. For many travelers, it’s been a great new tool. But not all governments feel the same way. There was a big debate this year in San Francisco, Airbnb’s home, over whether or not to pass a bill that would legalize the room-sharing network, with some caveats. It eventually passed, meaning that Airbnb will continue to operate in San Fran.

10. Privacy Board Calls NSA Eavesdropping Illegal 

One name has been making headlines around the country since June 2013. There have been many terms used to describe him, whether you see him as a traitor or a patriot, Edward Snowden has become a well known character within the United States. However, whether or not Snowden’s actions were legal is a completely different question.

11. Rideshare Infighting: Lyft Sues Uber Executive

Ridesharing rivals Lyft and Uber are going at in the courtroom as Lyft sues a former employee, now a current Uber exec, for stealing proprietary information. As the two leading companies in ridesharing–although Uber is quite a bit ahead of Lyft–there’s plenty of reason for the two to be competitive. The case in question regarded proprietary information that former Lyft executive Tyler VanderZaden may have taken with him when he moved from Lyft to Uber.

12. Bitcoin: What’s Next?

Bitcoin has grown into a major player in techno-currency, but what’s up next for the digital coin? Bitcoin is still trying to drag itself away from the perception that it’s used exclusively for criminal activities, and firmly establish a role in the mainstream. Regulations are also slowly starting to be put in place–it will be interesting to see Bitcoin’s future.

13. KKK vs. Anonymous: Cyberwar Declared over Ferguson Protests

The group of unnamed “hacktivists” Anonymous and the Ku Klux Klan have engaged in an apparent all-out cyber war over the events in Ferguson, Missouri. Anonymous was trying to prevent the KKK’s involvement in Ferguson-inspired protests, and took over many of the KKK’s social media accounts. The KKK responded with threats, and tensions continued to run high in Ferguson.

14. Aereo: The Martyr Files for Bankruptcy

Aereo, once hailed as a game-changer in the cable industry,  filed for bankruptcy. Despite valiant efforts, Aereo just could not overcome the legal and regulatory opposition that came after the Supreme Court decided Aereo’s business model was illegally violating copyright. Despite high hopes for the innovative idea, Aereo is now essentially dead in the water.

15. Please Stop Posting the Facebook Copyright Status

You know that Facebook copyright declaration you just posted? It’s useless. Seriously, it’s time to stop posting it. Every so often Facebook changes their terms and policies, and a bunch of people post a weird, incorrect disclaimer stating that they have copyright over their own content. The problem is that the notice does nothing, except confuse your Facebook friends who see it.

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post ICYMI: Top 15 Technology Stories of 2014 appeared first on Law Street.

Bitcoin first started making headlines in 2009 and has continued to grow into one of the world’s most well-recognized, thorough, and usable cryptocurrencies. But with multiple legal controversies and the general public’s skepticism when it comes to something as new as “cryptocurrency,” it’s difficult to tell whether Bitcoin has much of a future. Read on to learn more about the currency and its future.

What is Bitcoin?

Bitcoins are widely known as a digital or cryptocurrency. Unlike conventional currencies that are regulated by central authorities in their respective regions (such as the Federal Reserve Bank for the United States Dollar), Bitcoin is border-less and managed by a cryptographically-secured peer-to-peer network. The demand for Bitcoins determines their value in the market, and their supply is determined by complex mathematical algorithms developed by the founder–a person who goes by the pseudonym Satoshi Nakamoto. This supply generation process is called Bitcoin mining. So, Bitcoins are usually created by being “mined” by computers solving a complex string of processing problems, although one can now purchase existing Bitcoins.

Only fifty were created at the time of the cryptocurrency’s genesis and the maximum number of coins that can be issued is locked at 21 million. Just like the lowest value that the United States dollar can be divided into is one-cent pennies, a Bitcoin can at most be divided into eight decimal places. It gained prominence in April 2013 when its value spiked to $266 US Dollars compared to only $22 earlier that  same year. More than 10 million coins had been issued at that point at a total market value of $2 billion.

Courtesy of Idology.com.

Who likes Bitcoins?

Proponents of the cryptocurrency appreciate its purity in terms of supply and demand without any governmental interference. Bitcoins mitigate privacy concerns because they eliminate the need to enter information such as name and address for online transactions. For many tech aficionados, the cryptocurrency provides the thrill of following a new trend in the virtual world. Bitcoins are now being accepted by many platforms like WikiLeaks, restaurants, mobile payment applications, and retail apps that have partnered with major consumer brands like GAP and Sephora.

A federal district court recently ruled that Bitcoin is indeed a currency, given that it can be either used to purchase goods and services directly, or to purchase currency that can in turn be used to purchase goods and services. According to a study conducted by the European Central Bank, Bitcoins do not pose a risk to price instability given that their supply is capped at 21 million coins, and will not negatively affect  the economy as long as the government monitors it to ensure that its not being used for fraudulent purposes.

Who doesn’t like Bitcoins?

Opponents worry that the unregulated and anonymous nature of cryptocurrency lends itself to be used for illegal trade, tax evasion, money laundering, and investment frauds like Ponzi schemes. Dread Pirate Roberts, the owner of Silk Road, an online drug market in the deep web that is now shutdown, blatantly admitted that Bitcoin helped him win the war of drugs against the state.

Opponents also criticize Bitcoin’s algorithmic design for specifically inducing rise and fall in its value. But unlike traditional currencies, Bitcoin is not insured by the government in case it gets devalued enough to cause a major financial crisis in its market. Some claim that Bitcoin is being used more like a stock than a currency and that once the initial hype dies down its value will eventually decrease to nothing because it doesn’t have anything to offer except for its cool factor. Since Bitcoin is primarily digital (though coins are now available), it can be lost forever if a user loses his/her computer or account in which it’s stored.

What’s next for Bitcoin?

Bitcoin’s future is somewhat uncertain. While the cryptocurrency is still growing, there are many concerns that it’s not worth it. Detractors point out things like a possible Ponzi-style scheme involving Bitcoin in North Texas as indicative of the worthlessness of the currency. On the other hand, Bitcoin-based ventures have been growing, such as the development of startups like Coinffeine, which aims to create a new way to exchange Bitcoins. These are just a few examples of the ways in which Bitcoin is slowly breaking its way in into the mainstream, albeit with many setbacks.

Conclusion

Bitcoin. and other similar digital currencies, is just one of many interesting developments that has come about because of the internet. In essence, it’s a pretty revolutionary and fascinating idea, but whether or not it is actually good for the global economy remains to be seen. The potential for the use of Bitcoin as part of illegal activity though, should not stop people from using it for legitimate means. It’s only through incorporating online tools into the mainstream that it will become a genuinely useful and productive innovation.

Resources

Primary 

Bitcoin: Official Site

US District Court: Securities & Exchange Commission v. Trendon T. Shavers  and Bitcoin Savings & Trust

Additional

European Central Bank: Virtual Currency Schemes

Techland: Online Cash Bitcoin Could Challenge Government, Banks

Coindesk: Confirmed: Bloomberg Staff Are Testing a Bitcoin Price Ticker

CIO: In Kenya, Bitcoin :Linked to Popular Mobile Payment System

ParityNews: The Internet Archive Starts Accepting Bitcoin Donations

Webcite: In Bitcoin We Trust: The Berlin District Where Virtual Currency is as Easy as Cash

Readwrite: What’s Bitcoin Worth in the Real World?

Wire: Today’s Bitcoin Shows Why It’s Not Really a Currency

Fox Business: The Consumer Risks of Bitcoins

Slate: My Money is Cooler Than Yours

Washington Post: Imagining a World Without the Dollar

Social Science Research Network: Are Cryptocurrencies ‘Super’ Tax Havens?

The New York Times: Winklevoss Twins Plan First Funds for Bitcoins

Forbes: Goodbye Switzerland, Hello Bitcoins

Treasury Department: Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies

GAO: Virtual Economies and Currencies: Additional IRS Guidance Could Reduce Tax Compliance Risks

Forbes: IRS Takes a Bite Out of Bitcoin

The New York Times: New York and U.S. Open Investigations Into Bitcoins

TechCrunch: New York’s Financial Services Subpoenas Bitcoin Firms To “Root Out Illegal Activity”

Salome Vakharia

Salome Vakharia is a Mumbai native who now calls New York and New Jersey her home. She attended New York School of Law, and she is a founding member of Law Street Media. Contact Salome at staff@LawStreetMedia.com.

The post Bitcoin: What’s Next? appeared first on Law Street.

Bitcoin  — the cryptocurrency in the form of digital coins — allows financial transactions to be completed over the internet without the use of banks or a clearing house.  (Click here to read Bitcoin for Beginners.) There are plenty of positives that come along with this currency: it reduces the cost of transactions, as the fees are significantly lower than those with traditional electronic transactions; there are no  prerequisites or qualifications to gain access to Bitcoin; and  unique to its creation, the coins, which are stored in free, user-created digital wallets, can be used in any country. With that said, there are real concerns surrounding the coins.

Unlike paper currency, Bitcoin is not backed by any government or any other currency standard such as gold. One huge difference between traditional currency and Bitcoin is that there will only ever be 21 million coins available. Unlike traditional currencies, producing more Bitcoins, or taking some out of circulation, is not an option, and many of the people currently holding them are hoarding them. This has increased speculation and contributed to the huge increase in cryptocurrency value over a short time. Once people realize that there are only a small amount of coins available to purchase out of the 21 million total, consumers may be unwilling to purchase them at such high prices. This could have adverse affects on the coins’ value, but on the other hand, the exclusivity of the commodity may cause people to be even more interested in acquiring the currency and cause its value to increase considerably.

What happens if Bitcoins become so valuable that they’re able to back legitimate government currencies?  How could this shift power and wealth to the people who are hoarding Bitcoins?  I’m not saying it will happen, but we must think about the possibilities in this technology-driven society. The major takeaway from the speculation is that this currency is risky and can be exploited easily. Bitcoins are a risky investment and there are no equivalent insurance protections to those at traditional banks. Possibly worse, there are no standard cybersecurity protections from hackers when dealing with Bitcoin. Due to the currency’s anonymity, it is very hard to track where a particular coin has gone once it’s taken from a digital wallet. This anonymity leads us into the darker, seedier side of Bitcoin.

Because of the anonymity and absence of government regulation, Bitcoin is being used as a de facto payment to fund illegal weapons and drug trades on the black market. The most well known underground internet-based drug ring, Silk Road, had more than one million users and was in operation for two and a half years. Silk Road allowed users to buy any kind of illegal drug they desired and have it shipped directly to their home. Think eBay for drug addicts and their suppliers. Silk Road was also good for child pornography and illegal weapons sales.

In September 2013, after years of investigation by the FBI, Silk Road was shut down and its engineer, Ross Ulbrict, was arrested after facilitating 1.2 million transactions. These transactions accounted for 9.5 million Bitcoins — valued at a whopping $1.2 billion — and earned Ulbrict about $80 million. Unfortunately for him, all of his Bitcoins, and a majority of those held by Silk Road users, were seized by the FBI, making the government agency’s digital wallet the largest in the world.

Although the FBI should be excited about a job well done, we must remember that it took them two and half years to shut down Silk Road, and only a month for Silk Road 2.0 to get up and running.  If you go to the site, the operators boast how they’re morally superior to the original Silk Road since they no longer provide child pornography or facilitate the sale of illegal weapons. No… I’m not joking. The site also talks about newly emerging competition with other underground websites that were created to fill the void Silk Road left. The problem is getting worse and the operators have learned from the mistakes of previous site operators. They’re even giving users instructions on how to better protect themselves and keep their identities from being detected.

The only positive in this situation is that these people are so clearly lacking significant moral fiber, that every few weeks the site creators steal  all of their users’ Bitcoins, or they are hacked and the site’s Bitcoins are stolen. Unbelievable. I think it’s kind of funny that these drug dealers are being robbed, but at the same time, we have no idea what kind of criminal mind has the ability to steal from other criminals. That’s when it gets scary. We can only hope that these kinds of underground sites will cause so much uncertainty that they self destruct. Until then, we have an unregulated digital currency that can be exchanged for real money, and is contributing to an increased amount of cyber thievery and crime in America and abroad.

—

Teerah Goodrum (@AisleNotes), is a graduate student at Howard University with a concentration in Public Administration and Public Policy. Her time on Capitol Hill as a Science and Technology Legislative Assistant has given her insight into the tech community. In her spare time she enjoys visiting her favorite city, Seattle, and playing fantasy football.

 Featured image courtesy of [Zach Copley via Flickr]

Teerah Goodrum

Teerah Goodrum is a Graduate of Howard University with a Masters degree in Public Administration and Public Policy. Her time on Capitol Hill as a Science and Technology Legislative Assistant has given her insight into the tech community. In her spare time she enjoys visiting her favorite city, Seattle, and playing fantasy football. Contact Teerah at staff@LawStreetMedia.com.

The post The Seedy Side of Bitcoin appeared first on Law Street.

For those of you who are behind the times, Bitcoin is a unique electronic currency developed five years ago. Among many currencies, Bitcoin is the first decentralized digital currency, enabling individuals to exchange Bitcoins through the Internet without having to go through a middleman such as a bank. Bitcoins are revolutionizing traditional currencies, as anyone can “mine” the electronic coins. This is a significant reason why Bitcoin is becoming increasingly popular, as anyone can “mine” coins and make money. For a more extensive breakdown of Bitcoin, check out this article.

As Bitcoin emerges into a recognized currency, much of the legality and security of the e-currency has yet to be interpreted and standardized. This poses the complex question of what is needed to create a new currency? Often, the use of the Bitcoin is illegal, though the bitcoin system itself is not. Thus, the issue is not with the currency, but rather with it’s tendency to be prone to illegal activity. Therefore, does Bitcoin enhance criminality?

As Bitcoin is the newest globally recognized currency, agencies including the Internal Revenue Service, Canada Revenue Agency, and Her Majesty’s Revenue and Customs are developing new methods of taxing the e-currency. Exclusive to the United States, the Internal Revenue Service affirms the awareness of the potential tax-compliance risks posed by virtual currencies. Consequently, the lacking regulation permits malicious activity detrimental to the states well-being.

Bitcoin incorporates the option of anonymity into every exchange, making it prone to illegal activity. Provided in a case study by the Federal Bureau of Investigation, “cyber criminals may increasingly use bitcoins to purchase illegal goods and services and to fund illegal activities.” Specifically, this untraceable digital currency has an inherent proclivity towards criminality. However, if a transaction is not anonymized, a third party can geographically locate the individual. Every Bitcoin transaction is public and documented through archiving its Internet Protocol addresses.

As bitcoin technology increasingly becomes popular, criminals develop intricate methods to create an incognito transaction. An example of this illicit method is using a third party eWallet, attempting to consolidate Internet Protocol addresses. Research from the Federal Bureau of Investigation further concludes, “some third-party services offer the option of creating an eWallet that allows users to consolidate many bitcoin address and store and easily access their bitcoins from any device”

Bitcoin is the currency of choice–it has been used on many sites including the late Silk Road. An electronic market to buy potentially illegal goods, the hidden site was seized by the FBI in conjunction with the IRS Criminal Investigation Division, ICE Homeland Security Investigations, and the Drug Enforcement Administration. Prior to the injunction, private brownish markets were prone to criminal activity. The Silk Road allowed “parties to communicate anonymously for the purchase and sale of illegal goods, including the purchase of illegal narcotics, in addition to using Bitcoin.” Prior to the implementation of Bitcoin, Silk Road received very little traffic. Currently, hundred of thousands of transactions have been made through Silk Road and the newest platform, Silk Road 2 via Bitcoin. Such illicit websites cause for questioning the integrity of Bitcoin around the world.

What about this…

Although regulative agencies spanning across the world have yet to concretely define the boundaries, actions against criminality have been taken. On January 27, 2014 Charlie Shrem was arrested for engaging in currency laundering–directly connected to the Silk Road. Regarding the innovative currencies connections to criminal activity, Manhattan U.S. Attorney Preet Bharara stated, “truly innovative business models don’t need to resort to old-fashioned lawbreaking, and when bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act.”

Bitcoin is highly susceptible to theft. Thieves intending on stealing bitcoins target and exploit third-party Bitcoin services “because there is no central Bitcoin server to compromise.” Malicious actors can steal user “mined” bitcoins by exploiting “the way bitcoins are generated by compromising victim’s computers.” Accomplished by installing malware on a victim’s computer, criminals can then use the compromised computers to generate bitcoins. The evolution of Bitcoin towards a more sustainable and legal future exemplifies the nature of an ever-changing currency. Yet the activity associated with Bitcoin can destroy the currency ad infinitum.

 [Business Insider] [Federal Bureau of Investigation]

—

Zachary Schneider

Feature image courtesy of [Antana via Flickr]

Zachary Schneider

Zach Schneider is a student at American University and formerly an intern at Law Street Media. Contact Zach at staff@LawStreetMedia.com.

The post Bitcoin: Why is it Prone to Criminal Activity? appeared first on Law Street.

Bitcoins are all over the news. Over the past few years, retail stores have begun to accept Bitcoin as payment. Some nonprofits also now accept them. But there’s also been controversy. After all, Bitcoin was a major player in the Silk Road scandal that broke early this fall. In December, China prohibited Chinese financial institutions from dealing in bitcoins. And just yesterday, the CEO of a bitcoin exchange called BitInstant was arrested on money laundering charges.

Now, I’m reasonably tech-savvy. I’m probably average for my generation. I know a good chunk of the vocab, I’m a quick learner, and like most millennials, I grew up using a computer. But to be honest, Bitcoin didn’t make sense to me. The idea of a crypto-currency is hard for me to wrap my mind about. And I figured that if I was having a problem understanding bitcoin, a lot of average people just like me were too. It took me about 2 hours to become reasonably well acquainted with the system, but I’m figuring most of you don’t have that free time, or a job where spending 2 hours on the computer learning how to use bitcoin is not only acceptable, but encouraged. So I was inspired to write this article–Bitcoin for beginners–to save you all that time and effort.

Let’s start at the beginning.

What is Bitcoin? 

Essentially, Bitcoin is a currency. I’m sure your next question is how something intangible and online can be a currency, and I’m going to answer that with an example. United States cash money, at its core, has no inherent value. I just paid for my lunch with a 20 dollar bill, and it was accepted because both myself and the cashier agreed that it was worth that much money. But the piece of paper itself? That’s worth absolutely nothing. It’s not backed by gold or silver or jewels. If an alien suddenly landed on earth and we showed him that piece of paper, he wouldn’t agree that it’s worth 20 dollars, because it would have no value to him. At the end of the day, rendered its most basic form, the only thing that keeps a currency from being arbitrary is the value given by a society.

So Bitcoin is its own online currency, started by a developer with the pseudonym Satoshi Nakamoto. It is given value by the way it is traded, created, and used. It exists based on a set of rules that are agreed upon by all the people who are involved in the Bitcoin market.

But…what’s a Bitcoin?

A bitcoin is a unit of the currency. At this moment, a single bitcoin is worth roughly $800, though that fluctuates.

Why would you want Bitcoin?

There are a lot of advantages to a currency like Bitcoin. One of the most important is that it’s anonymous. It’s completely controlled by the users, so there’s no middleman, like an institutionalized bank. As a result, funds can never be stolen.

How are bitcoins made? 

This is where it starts to get a little bit complicated because we’re going to have to go into the history of the online currency, but please, bear with me. This is also going to be very much simplified, so if you’re interested in the process, I’ll recommend some more technical sources at the end of this article.

Satoshi Nakamoto, the person (or possibly, group of people) who created Bitcoin wanted to create a currency that anyone with access to a computer can use and access. So in order to distribute the first bitcoins and create a self-perpetuating market, they made a very complicated software that is essentially a series of giant, very difficult math problems. It takes a ton of processing power to break one of these problems. People who are attempting to mine bitcoins are running a program that tries to answer a problem, and when they do, that information becomes something called a “block.” A “block” is currently worth 25 bitcoins, although that has also fluctuated over time. Since everything is better with a visual,  click below.

Who mines bitcoins?

At this point, it’s incredibly difficult for an individual to mine a bitcoin. Individuals who mine them are usually not even able to use their personal computers but rather need to invest is special machines called ASICs. They’re pretty much supercomputers dedicated to bitcoin mining. These machines can cost anywhere from $1000-$5000, which sounds like a lot, but given the huge potential reward, makes sense.

The other way that bitcoins can be mined is in a group of people, or a mining pool. You donate some of your computer’s processing power to creating bitcoins, and then you get a proportional share. It still is hard to do, and takes up a lot of energy, but it is possible. If you’re interested in joining a mining pool, here’s a couple of really great videos that explain how it works.

Is there any other way to get a bitcoin?

Sure. You can buy them. Or, if you have your own company, you can receive them as payment.

If there’s no central authority, like a mint, creating bitcoins, what prevents too many from existing and currency from becoming worthless?

Bitcoins are self-managing. They’re mainly kept rare by the fact that at some point there will not be anymore code in the program to break, or unique blocks to create. By 2140, we will run out of the ability to make new bitcoins and the supply will top out at around 21 million bitcoins. In this sense, bitcoins are more of a finite resource–like gold or gas, than printed money.

Where do I…put these bitcoins?

You need to create a bitcoin wallet, which looks reasonably like a simplified online banking account. The wallet is linked to a bank that keeps track of all the bitcoin transactions in existence. When you receive a bitcoin, whether as payment, or through mining, the bank recognizes it and reroutes it to your personal wallet.

What is this about bitcoins being anonymous?

Bitcoins are tied to a private key, which is sort of a signature, but even more secure. Someone has the private key to the their wallet, and they use that to sign and authorize any transactions. There are also public keys that are used for the transfer of money, but those change with each transaction to protect privacy. Essentially, bitcoins are anonymous in the same way that a cash-paying customer is most likely anonymous. For this reason, they were commonly used on the popular illegal drug (and other things) dealing site SilkRoad before it was shut down by the FBI.

If you have a bitcoin, what can you use it for?

A lot of things! Here’s a directory of places where you can spend bitcoins, and there’s some genuinely recognizable and popular companies included. For example, Overstock.com now accepts bitcoins.

Aren’t bitcoins associated with criminality?

Bitcoins have gotten a pretty bad rap through association, but by themselves no, they are not associated with criminals. Because of the anonymity factor, they were used for some sketchy illegal purchases through Silk Road, but that says more about Silk Road than Bitcoins. And yes, a Bitcoin exchange CEO just got arrested for money laundering, but that is possible with any financial manager. Really, bitcoin is about as sketchy as cash, but is by no means associated only with criminals.

Why should I care about bitcoins?

At the end of the day, Bitcoin can best be described as an experiment. When it was first started in 2009, no one who got involved had any idea if it would work. So far it has. People who got in at the ground floor of Bitcoin are now potentially very wealthy.

I think it also says something about the way that our money is used in the future. I rarely carry much cash on me, because I always have my debit and credit cards on me. So not only do I not need cash, but if I ever were to lose my wallet, I could just cancel my debit card without losing any money. If I lost cash and my wallet wasn’t recovered, that cash would be gone for good. We are becoming more and more technology based in the way we pay for things, and I think that Bitcoin, or currencies similar to Bitcoin are just going to get more popular.

So should we all get in on this Bitcoin thing?

Honestly, probably not. If you have $800 to drop on a bitcoin and you want to, it’s probably not the worst idea in the world. It’s like any other investment–it’s a gamble. But it could be a very smart gamble. Analysts are claiming that the worth of bitcoins could skyrocket. For example, Venture Capital Post is predicting that they’ll each be worth between $4000-$5000 by the end of this year. Or they could plummet. The rise in recent months have been nothing if not meteoric, but that doesn’t actually mean much. Given that this is the first company of its kind, it is totally possible for this to crash and burn.

Here’s the thing. I think we may have all missed the boat to get rich off of bitcoins. At one point in 2011, bitcoins were valued at about $1-$2 each. It would have been awesome to have bought one back then and now have it worth $800 but of course, hindsight is 20/20. Now, mining bitcoins as an amateur is very hard. It’s possible to do, if you’re part of a pool, but with all the attention that bitcoins have been getting recently, as well as the crazy prices, the mines are getting pretty crowded. I would recommend that we all see where this quick price rise is going to go before getting into the mix. But, I would also recommend that we start to get used to online currency of this sort.

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Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Antana via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Bitcoins for Beginners appeared first on Law Street.

This year promises to be an interesting one in law. Here are some of the most interesting cases, trials, and legal topics y’all might want to keep your eyes on in 2014.

(Note: I have tried not to include Supreme Court cases that were heard in 2013 but will be ruled upon in 2014, as most of those have already been heavily covered by the media during oral arguments.)

8. Lavabit and Ladar Levison 

The case: After Edward Snowden’s revelations about NSA spying, it was discovered that he was using an encrypted email service called Lavabit. The owner, Ladar Levison, was court-ordered to hand over access to the entire site to the government, because Lavabit’s programming made it impossible to hand over access to just Snowden’s account. In protest, Levison shut down the site, defied a gag order, and has now filed an appeal.

Why it matters: This year, mainly from the NSA spying scandal, we learned about the technological abilities our government uses to monitor US citizens. This court ruling will either stifle or extend those abilities. For those who oppose the government having access to personal information, this Lavabit case may set important precedent — and it really will be a case to watch.

7. Jodi Arias Sentencing

The case: In 2013, we saw the extremely weird case involving Jodi Arias in Arizona. She was eventually convicted of murdering her boyfriend, Travis Alexander. It was a gruesome and disturbing case in which the jury found her guilty; however, they could not agree on whether to sentence her to life in prison, or death. A mistrial was declared on the sentencing portion of her trial and the new sentencing trial will also have new jurors.

Why it matters: The Defense has gone so far as to request a change of venue for the resentencing portion. They have argued that the huge media attention directed at the case has the potential for bias. That may be true, and it certainly wasn’t the first case with a big media blitz –Casey Anthony ring a bell? But if that’s actually the case, a change in venue won’t help — this case was huge all over the country. I’m reminded of an SNL skit from a few years ago about choosing jurors for OJ Simpson’s 2007 robbery and assault case. Watch it here, it’s really funny. But all joking aside, it’s the truth. It will be incredibly hard to find jurors who haven’t heard of Jodi Arias. Is it possible that our obsession with watching justice unfold is getting in the way of justice itself? Maybe we’ll get some answers with this retrial. 

6. McCullen v. Coakley 

The case: Oral arguments for McCullen v. Coakley are scheduled before the Supreme Court later this month. This case has been waiting for its day in court since 2001; there was appeal after appeal before the Justices agreed to hear it. It involves a law that Massachusetts instituted to create a 35-foot buffer zone around reproductive health facilities.

Why it matters: First of all, as I mentioned, this case has been going on for a very long time. The Supreme Court’s decision will add some sort of finality to it, no matter what the decision may end up being. Second, it could reverse a much-relied upon precedent, Hill v. Colorado, which allowed an eight-foot buffer zone. Finally, it raises an important constitutional issue about which right is more important: the right to free speech, assembly, and protest, or the right to seek an abortion without harassment?

Hopeful finality for this case.

5. Silkroad Case

The case: The infamous illegal-good site Silk Road was removed from the web this Fall, and its alleged creator, Ross Ulbricht, was arrested. The site sold drugs and fraudulent IDs, among other things. In addition to being indicted for his work on the site, he has now been accused of hiring assassins. The $80 million he allegedly made through the site is now in government custody. In 2014, he’ll either work out some sort of deal with the government, or face trial.

Why it matters: Silkroad had a huge market. It was relied upon by many people to get illegal goods relatively safely. Most of the Bitcoins (an electronic currency) in existence went through this site. And it was really only a matter of time until it shut down.

But, and this point is becoming a common trend on my list, it’s also another mark of how the government’s ability to use technology for prosecutorial purposes is evolving. I can assure you that this will have ramifications in the future, because people aren’t going to stop buying illegal stuff over the Internet. They’ll just get better at it.

4. Marriage Rights

The case(s): The Supreme Court already put a stop to Utah’s same-sex marriage licenses in 2014. The case will now go to the nearest appeals court. This is just one example; there are other cases regarding the rights of homosexuals to marry all over the United States.

A spontaneous reaction after the DOMA ruling last year.

Why it matters: 2013 was a banner year for gay rights in a lot of ways, but it’s important to note that the court cases will probably continue for years to come. There’s a lot of work to be done, and it doesn’t seem like the Supreme Court would unilaterally rule to legalize gay marriage. In 2014 we will continue to see more cases, trials, and hopefully, victories.

3. Voting Rights Cases

The case(s): There have been a lot of efforts at the state level to change voting rights laws, and the DOJ and various special interest groups have stood up to these changes when needed. But in 2013, part of the Voting Rights Act was struck down by the Supreme Court. So, each challenge to voting rights has to be filed against separately. As a result, many suits will be heard in 2014 to states’ attempted voting rights changes.

Why it matters: The change to the Voting Rights Act makes it more difficult for suits to be filed against voting rules, but special interest groups will also be under pressure to make changes before the 2014 midterms and 2016 national elections.

2. Contraception

The case(s): There were contraception cases regarding coverage through the Affordable Care Act that made it to the court in 2013, but many more will be on deck in 2014. One involves a nonprofit called Little Sisters of the Poor, and others involve for-profit companies like Hobby Lobby.

Why it matters: Not only is contraception a hot political issue, these cases involve parts of the Affordable Care Act. Parts of the ACA have already made it to the Supreme Court, but this will be a new decision will have ramifications as to whether or not companies are required to cover contraception for their employees, regardless of religious beliefs.

1. NSA Cases

The case(s): A lot of cases have been filed regarding the NSA’s monitoring of US citizens. A few may make it to the high court. US District Court Judge Richard Leon in Washington recently ruled that the NSA monitoring was unconstitutional. Meanwhile, District Court Judge William Pauley in New York dismissed a similar case. That kind of contradiction could lead to a big legal showdown in 2014.

Why it matters: The NSA surveillance debate was one of the biggest controversies of the year, and raised many legal questions about the ability of the government to monitor its people. What happens in these cases could set a serious precedent.

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Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Dan Moyle via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Cases to Watch in 2014 appeared first on Law Street.

The Internet black market is a fascinating place. It relies on security, word of mouth, and above all, anonymity. It has a unique language and its own currency. Bitcoin, allows users to directly transfer a high encrypted “currency” without an intermediary financial institution. It has evolved into an ideal tool for illegal transactions. For more on Bitcoin see: Bitcoin Pro-Con.

Many illegal transactions made through Bitcoin technology were through a site called “Silk Road.”  Silk Road presented itself as an anonymous marketplace and sold mainly illegal drugs, particularly MDMA, ecstasy, LSD, marijuana, prescription drugs, and heroin. On October 2, 2013 Silk Road’s founder and operator Ross Ulbricht, known on the site as “Dread Pirate Roberts,” was arrested. The site was seized and rendered unusable by the FBI.

The importance of Silk Road to the online black marketplace truly cannot be understated. According to Quartz, at some point, 82% of Bitcoin in existence traveled through Silk Road. NPR called it “the Amazon.com of illegal drugs.” Carnegie Mellon student Nicolas Christin wrote a paper in November of 2012 that estimated Silk Road’s revenue at $92,000 per month.

The general public’s reaction to the news that Silk Road had been shutdown last week centered on a question: How in the world did such a site even exist?

It does seem fairly unbelievable. We are reminded every day that what we do online is almost never anonymous. From bad Facebook photos taken at a club on Friday night, to politicians accidentally tweeting inappropriate pictures, our online selves are constantly on display.

Silk Road and other sites on the so-called Deep Web, the websites that not everyone can access, make their livings off the ability to provide anonymity. Silk Road was not accessible through a regular browser, like Chrome, Internet Explorer, or Firefox. Special software called Tor exists, which does its best to hide web browsing and traffic. Every facet of the software minimizes the traces of its users and Silk Road was only available through it. Furthermore, Silk Road itself contained heavy security features, such as password protection and the exclusive use of Bitcoin.

Another question on many average American’s minds must have been: Why should we care if some online drug marketplace gets shut down?

There are a few reasons to care. First, certain drugs have recently become increasingly mainstream. For example, MDMA, sometimes called Molly, has dominated headlines lately. According to the Global Drug Survey, conducted by an independent institute of the same name, in 2012 26.5% of US respondents had tried MDMA in the last 12 months, but in 2013, 60.9% reported having tried the popular club drug. While these surveys are obviously not representative of the United States as a whole, this demonstrates the growing share that MDMA represents in US drug use.

A site like Silk Road has played an important role in this spike. Before the ability to buy online, really the only way to get drugs was to go through an in-person dealer. It’s easy to imagine purchasing drugs online is simpler and safer. It’s also important to note that the drugs purchased through Silk Road are in some ways more verifiable than street drugs. Silk Road allows reviews of sellers, creating a way to warn other users if drugs are anything but pure. In order to be a seller, you must go through an extensive vetting process. Immediately after Silk Road’s closure, a Reddit user tested Silk Road MDMA versus two samples bought on the street. The Silk Road sample was significantly purer than the unverified street-bought samples. I am not, of course, advocating that anyone try MDMA. However, the argument that testable, verifiable MDMA bought online is safer than street MDMA from a dealer is absolutely valid.

Silk Road’s fall will slow the online drug market, but it won’t topple the industry. A similar website called Sheep Marketplace is already taking over some of Silk Road’s market share. Providers will get trickier, sites will get more encrypted, and Deep Web will simply get deeper.

[Quartz]

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Featured image courtesy of [Drug Enforcement Agency via Wikipedia]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post The Silk Road Shutdown: Why It’s Important appeared first on Law Street.