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The Chicago Fed explains Bitcoins
from Futures
Bitcoins have been in the news a good deal lately, and they get there in ways that suggest they are poised to impact the world of alphaand its pursuers. So it’s good to have a primer: a brief accessible essay that answers the simplest questions, like “what’s a bitcoin?” As a first approximation, says a recent paper by a senior economist in the economic research department at the Federal Reserve Bank of Chicago, a bitcoin is “a string of zeros and ones” stored in a computer file known after its molecular-world analog as a “wallet.”
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