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Flap happy: How you too can become a mobile games mogul


Flappy Bird, the mobile-phone game that was making as much as $50,000 (£30,000) a day for its developer before he pulled it from online stores, took one man just two or three days to write.

It shows that there's still a place in the £40bn video games industry for independent makers, or indies, working alone.

And it's easier than you may think to build your own game that could potentially become a global hit, thanks to a growing number of marketplaces for off-the-peg games templates.

It turns out you don't even have to know how to write a single line of code to make a living selling mobile games on sites like Apple's App Store or Google's Play Android store.

Code marketplaces, like Binpress, Apptopia, Chupamobile and CodeCanyon, are offering game templates for a few hundred pounds.

These templates provide the program code required for a basic game, which buyers then flesh out by adding their own graphics, music and overall theme to make an app which is ready to be sold.

'Swipe to slice'
These types of games are usually offered as free apps, generating money through advertising included in the game. Even the code to display the ads, which are provided by online advertising networks, is included in the game template, so the buyer needs only add an account number with each network to start earning money.

"What you are buying with a template is a simple game mechanic - something like pressing on the screen to shoot something, or swiping the screen to slice," says Jonathan Kay, one of the founders of US-based code marketplace Apptopia. "That forms the basis of your app."

Buyers of a "swipe to slice" template could then create a fruit-slicing game similar to the popular Fruit Ninja app, or something with a different theme, like slicing the heads off leaping zombies, he says.

Bitcoins and virtual currency - how do businesses cope?


Bitcoin speculators have made millions of pounds in the last few months as the value of the internet-based virtual currency has exploded.

But it's unclear if the virtual currency is just a passing fad, or whether it may evolve into a valuable tool for doing business.

Today Bitcoin is accepted by a small number of retailers, and David Woo, head of global rates and currencies research at BofA Merrill Lynch Global Research, believes that most do so simply for the publicity it earns them.

"Companies like Victoria's Secret are probably using it to brand themselves as hip," he says.

The other main reason for businesses to use Bitcoin is that it is a low-cost way to accept payments, he adds.

"Vendors get charged 2% to 3% by credit card companies, but the cost of using Bitcoin is zero," says Mr Woo. Bitcoin can also be used as a cost-free way to send money around the world.

But there's a big problem with using Bitcoin for business purposes at the moment.

"The overriding reason not to accept it is because of volatility," says Mr Woo. "This is the biggest challenge for Bitcoin."

That's because while speculators welcome volatility - big price movements provide opportunities to make money - businesses generally don't like such risks.

Huge swings in the value of Bitcoin mean profits on goods or services supplied can be wiped out when it depreciates; prices listed in Bitcoins have to be monitored and adjusted frequently.

The conventional way for businesses to manage currency risks is by using derivative instruments such as futures and options, but even if these were readily available for virtual currencies they would not be practical at the moment, Mr Woo explains.

"As a US exporter to the UK, I could buy sterling 'put' options against the dollar," he says. These would give the option to exchange sterling into dollars in the future at a set rate, regardless of the actual exchange rate on the day, mitigating the currency risk of accepting payments in sterling.

"The problem is that the price of these 'puts' is a function of the currency's volatility, so with Bitcoin they would be very expensive."

But in order for Bitcoin's volatility to diminish, Mr Woo believes the virtual currency needs to become far more liquid, and for that to happen, more people need to buy and use the currency.

And although Bitcoins can be divided into tiny subunits, the supply is ultimately finite. "That means if more people start adopting them then prices have to go up, and that creates more volatility," he says.

Legal status?
Another problem with using Bitcoin for business is that trading it is far from easy. Its value varies significantly in different countries - Marc Warne, director of London-based Bitcoin exchange Bittylicious, says this can often be as much as 10%.

In an efficient global market these price differentials could be exploited by some investors.

But Mr Warne says the cost of sending money to overseas markets and the time it takes, coupled with trading fees, makes the overall market inefficient and means these international price differences persist.
"In a way this proves the value of Bitcoin, because unlike bank transfers, transferring them is free and almost instant," he adds.
One thing that may have to happen before Bitcoin is more widely used by businesses in Europe is clarification of its legal status and some sort of regulation.

A key question that needs to be answered is whether it has the legal status of a currency, according to Angus McFadyen, a technology and payments law expert at Pinsent Masons.

"Some people say it is an investment, and others say it is a currency. If it is a currency then it should be treated as such by the Payment Services Directive. This provides the basis of refund rights for unauthorised transactions."

Mr McFadyen adds that this European Commission directive currently deals with the currencies of EU member states, which clearly does not include Bitcoin.

But the directive is currently under review, and new proposals talk about "any currency", he says. "So it could be designed to include virtual currencies, but as yet there is no official news about whether it will."

Tax implications
Bitcoin's uncertain status as a currency will also need to be clarified before more British exchanges, like Bittylicious and competitor BitBargain, appear and improve market liquidity.
That's because of the tax implications of trading in Bitcoin: if it's classified as a currency then no VAT is due on the value of Bitcoins sold, only on the trading commission, according to Eitan Jankelewitz, a digital media lawyer at Sheridans.
He would like to see the UK's tax authority following the lead of Singapore by offering specific tax guidance for Bitcoin businesses.

But he doesn't expect HMRC to accept it should be treated as a currency in the foreseeable future. "That would be a big deal, but you need to be realistic and expect some sort of halfway measure."

If Bitcoin does mature into a regulated, liquid, relatively stable currency, could it be used as more than a cheap way of making payments and moving money around the world?

Michael Jackson, formerly chief operating officer of Skype and now a partner at venture capital firm Mangrove Capital Partners, believes so.

"It can certainly be used to make payments on the internet without having to set up an account. But it could also be used to fight piracy," he says.

"For example, when you buy a digital book it could be encrypted using the Bitcoin used to buy it as the key to unlock it."

Ultimately Mr Jackson believes that Bitcoin could provide the foundation for many money-making ventures.

"The internet is just a set of protocols, but it has resulted in the creation of many new businesses.

"In the same way I think that Bitcoin will prompt the creation of many new companies that create value on top of it."

Stress test: Are you fit for work?


Stress can lead to burn-out, whether you're a chief executive or a shelf stacker.

Hector Sants, the former boss of the Financial Services Authority, had to bow out from his compliance role at Barclays Bank because of stress and exhaustion.

Nor is the world of sport immune. England batsman Jonathan Trott recently left the Ashes tour of Australia owing to a long-standing stress-related condition.

But these are just high-profile examples of a much wider problem.

Workers in the UK took an average 5.3 days off work in 2012, according to the 2013 CBI/Pfizer Fit for Purpose survey, with stress, anxiety and depression given as the main causes of absence.

Sick leave is costing the UK economy £14bn a year, the report suggests. So there is a strong financial incentive for businesses to keep their "human capital" as healthy and happy as possible.

Most large businesses offer some form of stress and anxiety counselling, coupled with flexible working to help employees manage their work/life balance.

For example, telecoms group BT offers its staff a real-time online chat facility with Relate, the family relationships charity, that can provide anonymous and convenient help.

Jonathan Trott

Monitoring stress levels
But a growing number are also using the latest diagnostic testing equipment and a range of new technologies to help them spot problems before they arise.

Joe Dunbar, director of operations at IPRO Interactive, a health diagnostics provider serving sport, the military and the corporate sectors, says: "We can now measure employee stress levels using a portable saliva testing machine that can give us an accurate reading in minutes, rather than hours in a laboratory."

The reader, which costs about £1,500 and is manufactured by German medicare company Qiagen, measures levels of the main stress hormone cortisol, as well as other hormones such as testosterone and immunoglobulin.

High stress levels can reduce our immune systems and make us more susceptible to illness and coronary heart disease, research shows.

Qiagen hormone reader
Qiagen says portable diagnostic machines such as its hormone reader are particularly helpful for businesses with mobile workforces
"Once we know what an employee's stress level is we can then put interventions in place," says Mr Dunbar, "from encouraging more exercise to changing work patterns."

English Premier League football clubs, such as Manchester United and Manchester City, are big users of the technology, he says, to help them devise bespoke training regimes for their their highly-paid players.

uberculosis threat

Martin Potgeter, Qiagen's senior director of corporate development, says portable diagnostic machines are particularly helpful for international businesses whose mobile workforces are vulnerable to picking up infections and diseases as they travel between countries.

One area of growing concern is latent tuberculosis (TB), which lies dormant in people but can become active if immune systems are weakened.

About a third of the world's population has latent TB, says the World Health Organization (WHO), and roughly 10% of those go on to develop the highly-infectious active form of the disease.

In 2012, 8.6 million people fell ill with TB and 1.3 million died from it, the WHO says.

"Latent TB testing for industry is one of our fastest-growing markets," says Mr Potgeter. "Our clients include Guinness, Heineken, Exxon Mobil, Mercedes Benz and NASA."

The Qiagen hormone reader is being adapted to allow TB tests in the new year, he added.

Complete Coherence, a "bio-science-powered performance coaching" company whose clients include Unilever, BT, the Post Office and Deutsche Bank, uses heart rate monitoring and hormone measurement to help senior executives achieve a healthier, more productive lifestyle.

"Heart rate variability is a good indicator of burn-out and potential sudden death," says Sarah Watkins, the company's founding director.

"Using our wearable cardiosense trainer and uploading the data to our software programme can help executives change their breathing and improve their heart rate. It's all about preventing disease before we have to treat it."

'Nudge' tactics
But this kind of personal monitoring using the latest hi-tech equipment is still expensive, despite the fact that such diagnostic kit is becoming cheaper.

Companies with large workforces are resorting to "nudge" tactics instead - encouraging rather than enforcing healthier living.

StepJockey recently unveiled its Department of Health-backed scheme to add "smart labels" to workplace staircases, enabling users to work out how many calories they burn when they use the stairs and incorporate that data into a fitness-tracking app.

John Harries, head of health and life sciences for Samsung Enterprise Business Europe, says: "The big breakthrough in workplace healthcare will be around the use of consumer electronics and smartphones. These things are a lot cheaper than purpose-built devices and they are familiar to use."

Smartphones, smartwatches and sensor-laden wristbands can already measure heart rate, blood pressure, and calories burned through exercise, with all the data uploadable to software programs that can track performance and provide advice and encouragement.

"The next iteration of our Samsung Galaxy phone will have more health sensors built in," says Mr Harries. "The direction of travel is to build up this kind of health monitoring capability even more."

The main barriers to wider adoption of such technology in the workplace are ethical not technological, he argues, because there is still a stigma attached to mental health.

"The danger is that if you're struggling in your job and becoming anxious about it, you may feel under pressure to manage your own condition, worrying that your employer might use it as an excuse to get rid of you."

This is why building trust between employer and employee is key, he says.

And that is as true for top executives as it is for factory workers.
source:http://www.bbc.co.uk/

Google unveils smartphone with 3D sensors


Google has unveiled a prototype smartphone with "customised hardware and software" that enables it to create 3D maps of a user's surroundings.


The device's sensors allow it make over 250,000 3D measurements every second and update its position in real-time.

Google said potential applications may include indoor mapping, helping the visually-impaired navigate unfamiliar indoor places unassisted and gaming.

It has offered 200 prototypes to developers keen to make apps for it.

Google said its Advanced Technology and Projects (ATAP) unit developed the phone as part of a project called Project Tango with help from researchers at various institutions.

"We are physical beings that live in a 3D world. Yet, our mobile devices assume that physical world ends at the boundaries of the screen," the firm said.
"The goal of Project Tango is to give mobile devices a human-scale understanding of space and motion.

"We're ready to put early prototypes into the hands of developers that can imagine the possibilities and help bring those ideas into reality," it added.

'Smart' technology
Various firms, including Google, have been looking at developing niche technology.

For its part, Google has already unveiled its Google Glass - the intelligent specs due to go on sale later this year.

Earlier this year, the firm said it is also working on a "smart contact lens" that can help measure glucose levels in tears.

Also in January, it bought DeepMind, a UK firm that specialises in artificial intelligence, for £400m.

According to DeepMind's website it builds "powerful general-purpose learning algorithms".

Analysts say that firms have been looking at ways to help bring the advances made in technology to practical use in every day life in an attempt to attract more customers.

"The focus is not just on the hardware or the device, but on what the gadget can actually do," Bryan Ma, associate vice president at research firm IDC told the BBC.

"It is all about taking it to the next level of usage - be it augmented reality, help with basic healthcare or even just creating better maps."

Mr Ma added that once fully developed such gadgets could have huge commercial applications as well - which would help drive demand not only among individual consumers but also businesses and corporate users.

"There could be a lot of opportunity waiting to be exploited in this area," he said.

Last year, Japanese firm Sony filed a patent for a "SmartWig", with healthcare cited as one of its potential uses along with the ability to help blind people navigate roads.

It said the wig could use a combination of sensors to help collect information such as temperature, pulse and blood pressure of the wearer.

Linking to free web content is legal, says EU Court



Websites can link to freely available content without the permission of the copyright holder, the European Court of Justice says.
The court's decision came after a dispute in Sweden between journalists and a web company that had posted links on its site to online news articles.
A Swedish court had asked the EU court to consider whether this broke copyright law.
The "position would be different" for links that bypass a paywall.
The journalists worked for the Swedish newspaper Goteborgs-Posten and had articles published on the paper's website.
The company Retriever Sverige runs a website that provides links to articles published by other websites.
Broken the internet
The journalists argued in the original case that users of Retriever Sverige's website would not know that they had been sent to another website by clicking on the links and therefore had made their articles available without authorisation. They said that because of this they were due compensation.
The case was unsuccessful in the Swedish courts but there was an appeal and the appeal court asked the EU Court of Justice to consider whether copyright law had been broken.
The court had to consider whether by providing links Retriever Sverige had taken part in an "act of communication to the public". Under EU copyright law, authors have the exclusive right to authorise or prohibit any communication to the public of their works.
The court ruled that the law had not been broken because the articles in question were on Goteborgs-Posten's website and therefore already "freely available".
In a statement it said: "The owner of a website may, without the authorisation of the copyright holders, redirect internet users, via hyperlinks, to protected works available on a freely accessible basis on another site."
But they ruled that the "position would be different" if a link led users to material that had purposely been restricted from being freely available - for example if it had been posted on a site that operates a paywall.
"If the decision had gone the other way it would have broken the internet," said Susan Hall, technology lawyer at Clarke Willmott.
"The way we communicate online is predicated on sharing material, whether that's links to Robert Peston on Bank of England interest rates, decisions of the European court or pictures of otters who look like Benedict Cumberbatch," she said.

Facebook allows users to customise gender



Facebook has announced that it will allow users to customise their gender, after consulting on the subject with gay and transgender advocacy groups.
The 50-odd options, which include "bi-gender", "transgender", "androgynous" and "transsexual", will allow people "to express themselves in an authentic way", Facebook said in a post.
Users can also choose whether to be referred to as "he", "she" or "they".
The new options will initially only be for those using the site in US English.
The new options were formulated after consultations with five leading gay and transgender rights' organisations, Facebook says.
"There's going to be a lot of people for whom this is going to mean nothing, but for the few it does impact, it means the world," Facebook engineer Brielle Harrison told the Associated Press.
"For the first time I get to go to the site and I get to specify to all the people that I know what my gender is and I can let only the people that I want to know, see that," she said.
The move reflects the growing influence of the transgender rights movement in the US, which is demanding similar civil rights to the gay community, says the BBC's Alistair Leithead in Los Angeles.
The San Francisco-based Transgender Law Center welcomed the move, saying "many transgender people will be thrilled" at the news.
One estimate in a report by the Williams Institute think tank in 2011 said that an estimated 0.3% of adults in the US were transgender, almost 700,000 people.

Silk Road 2 loses $2.7m in bitcoins in alleged hack


The anonymous online marketplace Silk Road 2 says it has been hacked resulting in the loss of all its customers' bitcoins.

An administrator for the site said hackers had manipulated computer code enabling them to withdraw $2.7m (£1.6m) worth of the virtual currency.

It follows similar attacks on two exchanges that trade in bitcoins earlier in the week.

Silk Road 2 is known for selling drugs and other illegal items.

The site is only accessible through Tor, a network that allows users to browse anonymously online. The virtual currency Bitcoin is often used in transactions as it also grants users a degree of anonymity.

The original Silk Road site was shut down by the FBI in 2013 but those behind it said they would start a new site and shortly afterwards Silk Road 2 appeared online.

Completely empty
In a statement posted on Silk Road 2 forums, the administrator of the site, known as Defcon, said: "We have been hacked."

"Nobody is in danger, no information has been leaked, and server access was never obtained by the attacker.

"Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as "transaction malleability" to repeatedly withdraw coins from our system until it was completely empty," he said.
Transaction malleability involves someone changing the cryptographic code - known as a transaction hash - used to create an ID for the exchange of funds before it is recorded in the blockchain - a database of every transaction carried out in the currency.

This method can result in the system thinking a transaction has not been carried out when it has and therefore repeatedly paying out bitcoins.

The two exchanges hit by attacks earlier in the week, MtGox and Bitstamp, had suspended transactions to prevent it happening again.

Defcon admitted that Silk Road 2 should have done the same.

Run with gold
"I should have taken MtGox and Bitstamp's lead and disabled withdrawals as soon as the malleability issue was reported. I was slow to respond and too sceptical of the possible issue at hand," he said in the forum posting.

In an article for CoinDesk, a news site for digital currency, Danny Bradbury an expert on Silk Road, said that bitcoin-based sites should put "bitcoins under management in cold storage (ie stored offline) so that they could not be stolen by online attackers."

Bitstamp screenshot
Bitstamp, a bitcoin exchange, was hit by a similar attack earlier in the week
Defcon said that all its customers' bitcoins were being stored online because of planned relaunches of some of the site's features.

"In retrospect this was incredibly foolish, and I take full responsibility for this decision."

Despite Defcon denying that he had "run with the gold", several Silk Road 2 users questioned whether the operators of the site were involved or covering for people involved.

"Does that even sound plausible? Or does it make more sense that they were waiting for the right moment... so that they could retire comfortably," wrote aqualung.

"Imagine you run this site, you see a huge amount of money sitting right there, and you know that you can take all of it and easily blame it on a hacker," wrote cubensis.

The site said as a result of the attack it would no longer host "escrow wallets" - an account where bitcoins are held until goods ordered are delivered.

The chief executive of the company that runs the MtGox bitcoin exchange was confronted by an angry customer at the company's headquarters in Tokyo this week.

Kolin Buges, a bitcoin trader from London, said he had travelled to Japan as he was unhappy at MtGox's explanation for its recent problems on the site which prevented customers from making withdrawals.

He had 250 bitcoins, worth $155,000 in his MtGox account.

"I want to get my bitcoin back, or get MtGox to bring back public confidence that the company is solvent and people's money [is] safe," Mr Buges told the Wall Street Journal.

One bitcoin is currently trading for around $620, significantly lower than the $830 level it was at before news of the various attacks broke.


Flappy Bird creator removes game from app stores



Flappy Bird is flapping its wings no more.

The popular game for mobile devices was removed from online stores on Sunday by its Vietnamese creator, who said its fame "ruins my simple life".

Dong Nguyen, who created the game in just two to three days, was making as much as $50,000 (£30,482) a day from the game's advertising revenue.

In several Twitter posts, he said the game's removal was not due to legal issues and that he may make a sequel.

Mr Dong, who describes himself as a "passionate indie game maker", also said on the micro-blogging site that he will not sell Flappy Bird but that he will still make games.
Flappy Bird has been downloaded more than 50 million times, making it this year's most popular mobile game so far.

Launched in May 2013, the game was free to download and required players to tap the screen to keep the bird in flight.

Despite its simple graphics, Flappy Bird was a notoriously difficult game since many users could only keep the bird in the air for a few seconds before it hits an obstacle and falls.

The game went viral after being promoted almost entirely by social media users and was reviewed on a YouTube channel by more than 22 million subscribers.

The official version was only available for Apple and Android devices. It quickly became the number one free game in the Apple App Store and Google Play Store charts.

Several news sites had noted the similarity between the game and an earlier title called Piou Piou, by a different French developer, as well as the fact that Flappy Bird's main character and obstacles resembled the Cheep-Cheep birds and green pipes found in Nintendo's Super Mario Bros series.

Forbes had even suggested that Mr Dong could be sued for intellectual property infringement as a result. However, the developer has stated that his decision to pull the title was "not anything related to legal issues".

User reactions
Flappy Bird screen shot
Flappy Bird is no longer available for downloads
After Mr Dong took the game down, many fans turned to social media to petition for its return.

On Twitter, there were widely-used hashtags of #RIPFlappyBird and #SaveFlappyBird, with several "Save Flappy Bird" accounts being spawned as well.

The game is no longer available through online stores, but it still works on phones that had previously downloaded it.

As a result, some online users have offered to sell their smartphones still containing the Flappy Birds app for large sums of money.

However, some fans expressed their relief that the game was gone.

One user describes Flappy Birds as "an addictive game that everyone hates to love" while another said, "I think it's for the best, and for the best of all the cracked phones out there."

At least one user has tweeted a photo of a cracked iPhone screen - apparently as a result of frantic tapping whilst playing the game.

source: http://www.bbc.co.uk/

Parents unaware of dangers faced by children on smartphones



Many parents are out of touch with the dangers faced by their children on tablets and smartphones, according to a poll by BBC Learning.

Almost one in five children said they had seen something on their devices that had upset them, twice the number parents had thought.

A separate study found that just over 20% of parents do not monitor what their children are doing online.

The research was commissioned as part of Safer Internet Day.

While 90% of the parents surveyed by the BBC in England said they had spoken to their children about staying safe online when using a tablet or a smartphone, most said they allowed their children to use them unsupervised.

Parental controls
"Unfortunately, none of us - of whatever age - is immune from encountering problems online," said Tony Neate, chief executive of Get Safe Online.

"Without using controls such as built-in security, safety and privacy features and search engine filters, children will almost certainly run into something that really isn't appropriate for their age, or any age."

The survey also found that teenagers aged 13-16 were more vulnerable to being bullied online than those aged 8-12. However, parents worried less about the older group using a tablet.

David Emm, senior security researcher at Kaspersky Lab said parents were not often as aware of the dangers of using the internet on tablets and smartphones as they were with PCs.

"When children use mobile devices to access the web, they are using the same internet, with the same risks," he said.

"There is a common misconception that smartphones and tablets don't need the same level of protection as a PC.

"But with such a high percentage of parents not having a clear view of their children's online activity, this way of thinking needs to change."

Children using tablets
Over 50% of parents had set up filters on their tablets for when children used them
Unmonitored losses
Apple's iPhone and iPad have restrictions, or parental controls, that can be set using a passcode.

Access to certain apps or websites can be blocked completely or restricted to age appropriate content.

Restricted profile accounts can also be set up on Android smartphones and tablets.
Over 50% of parents who took part in the BBC poll said they had set up parental controls and filters on their tablets but only 40% said they had done the same on their children's smartphones.

Kapersky Lab's own survey revealed that 18% of parents had lost money or data from their own phone or tablet because their children had been using it unmonitored.

In-app purchases made by children when playing games on their parents' phones are often cited as a reason for money being spent unwittingly.

Apple was recently told to refund $32.5m (£19.8m) to parents whose children had made purchases without their parents' consent.

Adults were also being warned to stay safe online as Microsoft released its annual online consumer safety research.

It showed that 5% of consumers in the UK had fallen victim to a phishing attack - losing on average £100. Meanwhile, 3% said they had suffered identity theft which had ended up costing them £100.

The software giant recommended that users set PINs for their mobile phones and strong passwords for online accounts.

source: http://www.bbc.co.uk/

Bitcoin value drops sharply after tech issues continue



Bitcoin's value has dropped sharply after one of the largest trading exchanges said there was a flaw in the virtual currency's underlying software.

MtGox said it had halted transfers to external Bitcoin addresses on Friday after detecting "unusual activity".

It said an investigation had revealed it was possible for thieves to fool the transaction process so that double the correct amount of bitcoins would be sent.

Bitcoins fell from $700 (£427) to $540.

The Tokyo-based firm said it was now working with the Bitcoin core development team to "mitigate this issue", which it said was not limited to its own Bitcoin-wallet system.

A Bitcoin wallet is the place where Bitcoin addresses - the virtual post-boxes where each bitcoin is stored -are kept.

It added that cash withdrawals and transfers of bitcoins to - rather than from - Bitcoin Wallets were unaffected.

MtGox said in a statement: "A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a Bitcoin wallet did not occur when in fact it did occur.

"Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent."

Gavin Andresen, chief scientist at the Bitcoin Foundation - which oversees and develops the Bitcoin software - denied the problem was its fault.

"The issues that MtGox has been experiencing are due to an unfortunate interaction between MtGox's highly customised wallet software, their customer support procedures, and an obscure (but long-known) quirk in the way transactions are identified and not due to a flaw in the Bitcoin protocol," he told the BBC.

Garrick Hileman, from the London School of Economics, who researches alternative currencies, said it was too early to tell how serious this was for Bitcoin users.

"It's a reason to be concerned, but it's a little early to say that there's something fundamentally flawed with Bitcoin software. Previous problems have been corrected," he said.

"It reflects the immaturity of the software. Bitcoin is still a technology in the process of being developed," he added.

In an apparent clampdown on the use of Bitcoin in Russia, the Russian prosecutor general's office said it was tightening up regulations surrounding the use of virtual currencies as they could be used for money laundering or financing terrorism.

It said that the rouble was the only official currency in Russia and introducing others was illegal.

"Systems for anonymous payments and cyber-currencies that have gained considerable circulation - including the most well-known, Bitcoin - are money substitutes and cannot be used by individuals or legal entities," it said in a statement to Reuters.

Improperly used
The use of Bitcoin for alleged money laundering led to the arrests of two men in the US last week.

The Miami-Dade State Attorney Katherine Fernandez Rundle told Bloomberg in a statement that the "arrests may be the first state prosecutions involving the use of Bitcoins in money laundering operations."

"Bitcoins are neither good nor bad. Buying bitcoins allows money to be anonymously moved around the world with a click of a computer mouse. Improperly used, Bitcoins are often seen as a perfect means of laundering dirty money or for buying and selling illegal goods, such as drugs or stolen credit card information," she added.

Federal charges have already been brought against the operators of two exchanges for money laundering in the US.

source: http://www.bbc.co.uk/