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Bitcoin economics: A primer on a volatile currency

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NEW YORK (AP) — Bitcoin, the virtual currency composed of digital bits, is based on cutting-edge mathematical schemes that guard against counterfeiting. But it's also based on an old idea, now dismissed by mainstream economists, about how a currency should operate — an idea that could be setting bitcoins up for an abrupt plunge. Bitcoin was started in 2009 as a currency free from government...

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