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Future Bitcoin clients will support multisignature transactions, in which a user's private key is split up among multiple devices. No changes have been required to the core Bitcoin protocol. But since it hit bottom late last year, the cryptocurrency has defied skeptics including me who predicted it would prove to be a passing fad. A wide variety of new Bitcoin services have popped up over the last year. Disclosures : The author owns some Bitcoins.

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Despite the new challenges this creates, Andresen sees it as "really healthy from a network stability and security standpoint.

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That's where it'll establish itself first. Gavin Andresen Gavin Andresen Andresen said that most of the attacks focused on exploiting unanticipated edge cases. But since it hit bottom late last year, the cryptocurrency has defied skeptics including me who predicted it would prove to be a passing fad. The one-year anniversary of the popping of the Bitcoin bubble is a good occasion to take stock of the currency's progress and explore where it might go in the coming year. One Bitcoin exchange closed its doors in February, citing regulatory problems as a major factor in its failure. Jerry Brito Mercatus Center Of course, there are significant unanswered questions about the legality of Bitcoin itself.

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