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Microsoft to Announce Major Restructuring July 5 – Investopedia

Microsoft Corp. (MSFT) is reportedly gearing up to announce a major overhaul of its business on July 5 with the focus shifting more toward cloud computing, which has been booming for the software giant.

Unnamed sources told the Puget Sound Business Journal the changes are aimed at better aligning the company with its so-called cloud-first strategy that is being led by Azure, its cloud hosting business. It not clear if that will result in layoffs or any restructuring charges. (See also: Microsoft's Azure Cloud Revenue Estimated at $3B.)

While it has long played second fiddle to Amazon.com Inc. (AMZN) and its Amazon Web Services (AWS) unit, Microsoft has been chipping away at its dominance. Earlier this month, Pacific Crest Securities analyst Brent Bracelin said in a research report that Azure could have more revenue than AWS for the first time in 2017. The analyst said Microsoft is becoming the biggest cloud provider for the first time in 10 years, which would transition it from a cloud laggard to a cloud leader.

Bracelin said he came to this conclusion after conducting an analysis of the 60 biggest cloud computing companies. The analyst is predicting spending on cloud initiatives could explode to $239 billion in the span of five years, with the Redmond, Wash., software giant benefiting the most from the growth. Bracelin pointed to what he called unmatched product depth and breadth" in software as a service, platform as a service and infrastructure as a service as the main reasons. (See also: Amazon, Microsoft Still Rule Cloud; Oracle, Alibaba May Catch Up.)

When Microsoft reported third-quarter earnings results in late April, it said revenue in its Intelligent Cloud business came in at $6.8 billion, up 11% compared to the year ago, and up 12% on a constant-currency basis. During the quarter, Microsoft said server products and cloud services revenue increased 15%, driven by Azure cloud revenue growth of 93%. Enterprise services revenue declined 1% with a decrease in customer support agreements offsetting growth in Premier Support Services and consulting.

For the quarter, Microsoft posted revenue of $23.6 billion on a non-GAAP bases and diluted earnings per share of $0.73, also on a non-GAAP basis. Our results this quarter reflect the trust customers are placing in the Microsoft Cloud, said Satya Nadella, chief executive officer at Microsoft. From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsofts cloud platforms to power their digital transformation. This isnt the first time the company has overhauled its business strategy in recent years. It has cut more than 4% of its employee headcount amid a restructuring being led by Nadella.

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Rackspace Hosting Inc. experienced temporary global outage after … – San Antonio Business Journal


San Antonio Business Journal
Rackspace Hosting Inc. experienced temporary global outage after ...
San Antonio Business Journal
Rackspace engineers were able to fix the issue that affected about 4 percent of the local company's customer base.

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ZNetLive plans to expand product portfolio with hybrid cloud backed by Microsoft Azure – ETCIO.com

Bangalore: ZNetLive, a web hosting and cloud services provider in India said its plans to expand its product portfolio to include Microsoft Azure Stack based Hybrid Cloud Solution to help users get proficient computing capabilities with increased productivity at reduced operational costs.

The Azure Stack Hybrid Cloud solution expected to be made commercially available by early Q3 this year, will provide users with single vendor support for Azure Stack and Azure public cloud. The solution encompasses Azures storage, geo presence and flexible capacity to enable an organizations expansion on a global level.

The pay per usage solution will be available with one contract and monthly invoicing and the users will get their own client portal, with which they will be able to seamlessly create, deploy and manage their workloads on cloud. The kind of IT automation that this solution will provide will enable organizations maintain crucial business data on premise while getting economies of scale with faster deployment of new services and applications on public cloud.

This is one more step by ZNetLive in empowering digital transformation. The Azure Stack Hybrid Cloud solution combines path breaking ZNetLives cloud management services with modern, scalable and flexible Microsoft Azure Stack capabilities to provide a comprehensive hybrid cloud solution to enterprises seeking digital transformation for modernization, high performance and scalability at low costs, said Munesh Jadoun, Founder & CEO, ZNetLive.

For those onboarding the solution, the management and support provided by ZNetLive will include cloud strategy formulation, building Azure hybrid cloud following detailed analysis of crucial and routine workloads and customers workload migration. It will also include security, back-up and disaster recovery services.

The company has been implementing integrated Azure Stack and Azure pack cloud solutions for some time now.

The solution also includes Azure ExpressRoute Services to provide users with speedier private Azure connection from production environment for regular data migration, data transfer and thus, helping in expenditure reduction. With it, the users can add storage and compute capacity to their existing datacenter for high throughput and reduced latencies. It enables them to build applications spanning on premise infrastructure and Azure without compromising on privacy or performance.

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Global Internet Security Market to Grow at a CAGR of 8.7%, 2017-2021 with Hewlett Packard, IBM, Intel & Symantec … – Business Wire (press…

DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of the "Global Internet Security Market 2017-2021" report to their offering.

The global internet security market to grow at a CAGR of 8.70% during the period 2017-2021.

This report, Global Internet Security Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion operating in this market.

One trend in the market is convergence of technologies. The need to protect networks from advanced cyber threats has led companies around the world to adopt multiple security solutions such as messaging (SMS/ MMS) security, web security, e-mail security, data loss prevention, endpoint security, and network security solutions.

According to the report, one driver in the market is growing need for secure and compliant cloud solutions. Performing online operations in sectors including medical, retail, and finance, which have strict security standards requires a secure and compliant cloud solution. IoT includes technologies such as radio frequency identification (RFID), barcodes, sensors, and GPS. These technologies are mainly used to monitor and manage the remote physical assets in an organization.

Key vendors:

Other prominent vendors:

Key Topics Covered:

Part 01: Executive summary

Part 02: Scope of the report

Part 03: Research Methodology

Part 04: Introduction

Part 05: Market landscape

Part 06: Five forces analysis

Part 07: Market segmentation by category

Part 08: Market segmentation by end-user

Part 09: Geographical segmentation

Part 10: Decision framework

Part 11: Drivers and challenges

Part 12: Market trends

Part 13: Vendor landscape

Part 14: Key vendor profiles

For more information about this report visit https://www.researchandmarkets.com/research/2pp24q/global_internet

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APG cable improves Vietnam’s internet security – VietNamNet Bridge

VietNamNet Bridge - Though the APG submarine cable broke twice in six months, Vietnam Internet Associations (VIA) secretary general Vu The Binh said that APG has helped improve security and provisioning capability for Vietnams internet.

The APG project attracted many Asian telecom groups, including Japanese NTT Docomo, Chinese China Telecom and South Korean KT. The four Vietnamese investors include VNPT (the Vietnam Post & Telecommunication Group) , Viettel, FPT Telecom and CMC Telecom.

With a length of 10,400 kilometers, the APG cable is located under the Pacific Ocean, connecting points in nine countries and territories including China, Hong Kong, Taiwan, Korea, Japan, Malaysia, Singapore, Thailand and Vietnam.

The system has a capacity of 54 terabits per second with the Internet speed of 20 times higher than AAG (Asia America Gateway).

AAG also has to be repaired so often. In the first half of 2015 alone, it was in trouble four times, on January 1, April 23, May 26 and early June.

While AAG cable plays an important role in connecting Vietnam and the world, APG is hoped to help the connection become faster and more stable, and help ease reliance on AAG.

Binh told the press in late December 2016 that APG helped improve security for Vietnams internet.

VIAs representative also said though ISPs in Vietnam still have not provided detailed information about capacity through APG, the impact on international internet connectivity was less serious than before.

However, APG twice broke down within a short time. It broke for the first time on December 31, 2016 at positions near Singapore and Chongming, China. The latest breakdown occurred on June 20, 2017 at a position just 125 kilometers from Da Nang City.

According to CMC Telecom, one of the ISPs which develop APG, the trouble caused 100 percent loss of AGP capacity to Vietnam.

When asked if APG would break down regularly like AAG, Binh said he still doesnt have enough information to compare APG with AAG.

However, he believes the APG developers have enough information about AAGs status and operation.

Problems with cables are unpredictable. Therefore, ISPs all have to prepare contingency plans to ensure smooth operation. The plans depend on their business strategies and targeted clients.

VIAs official said internet service in Vietnam is competitive, with the service fee much lower than in other regional countries.

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Encryption cracking campaign receives lacklustre support from Five Eyes – Computerworld Australia

Five Eyes nations' ministers and attorney-generals have committed to develop our engagement with communications and technology companies to explore shared solutions around the encrypted content of communications sent by criminals.

This will be done while upholding cybersecurity and individual rights and freedoms a joint communique issued following two days of talksin Ottawa, Canadanoted.

Despite being a key topic for the Australian government in recent weeks spoken about by Prime Minister Malcolm Turnbull in his security statement to the House of Representative earlier this month, and in numerous TV and radio interviews by Brandis it appears cracking encryption may be less of a priority for the other Five Eyes member nations (the US, UK, New Zealand and Canada).

It was mentioned in just two sentences in the official communique, coming at the very end of the description of topics discussed.

In a press release following the meeting, New Zealand Attorney-General Christopher Finlayson made no mention of the discussion around encryption. The UK governments press release about the meeting focused on urging internet providers to remove terrorist contentonline and made no mention of encryption.

A release from US Attorney Jeff Sessions following the meeting noted that encryption had been a topic of discussion, but was concentrated on preventing radicalisation and human trafficking.

The Canadian government had made no official statement beyond the communique at the time of publication.

Not about creating backdoors

Speaking on ABCs RN Breakfast on Wednesday, Brandis said the nations had agreed to engage with ISPs and device makers to ensure that we secure from them the greatest possible level of cooperation but denied this amounted to forcing them to build backdoors into their products.

What we need is to develop, and what we'll be asking the device makers and the ISPs to agree to, is a series of protocols as to the circumstances to which they will be able to provide voluntary assistance to law enforcement, he said.

We're not specifically asking them to do that [build in backdoors] and its not as simple as that, he added.

Brandis reassurances around backdoors echoes those made by Prime Minister Malcolm Turnbull earlier this month.

This is not about creating or exploiting back doors, as some privacy advocates continue to say, despite constant reassurance from us, Turnbullsaid. It is about collaboration with and assistance from industry in the pursuit of public safety.

Voluntary solutions

Encrypted communications represent a challenge for governments hoping to thwart terrorist plots and criminals, the communique noted.

Ministers and Attorneys General also noted that encryption can severely undermine public safety efforts by impeding lawful access to the content of communications during investigations into serious crimes, including terrorism, it read.

It is unclear how the Australian government expects ISPs and device-makers to assist in investigations and provide access to encrypted communications without building backdoors into their products.

Brandis said the government will be meeting with the private sector in the coming months to discuss options.

We want to engage with the private sector, to achieve a set of voluntary solutions, he told the ABC.

Brandis said he did not want to resort to the coercive powers which had been legislated by the UK and New Zealand.

Late last year the UK introduced its Investigatory Powers Act,which allows the government to compel communications providers to remove electronic protection appliedto any communications or data.

The governments power to force the removal of encryption, the legislation notes, must be reasonable and practicable; caveats that are yet to be tested.

The so-called Snoopers Charter passed into law in December, but isbeing hamperedby the European Court of Justice which deemed it unlawful.

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Tags backdoorPrime Minister Malcolm TurnbulldecrytionFive eyessecurityForeign policyencryptioncyberAttorney-General George Brandisexploits and vulnerabilities

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The battle over encryption and what it means for our privacy – Human Rights Watch

It is a rare law enforcement officer or intelligence agent who doesnt want access to more information. Yet total information awareness, to use a term from the George W. Bush administration era, has never been possible. Some people whisper to avoid prying ears. Others draw the blinds to prevent looking in.

More fundamentally, the right to privacy the personal preserve where governments should not be allowed to snoop is an impediment to official surveillance. That privacy is necessary to safeguard such sensitive matters as our banking information, our medical history, our personal relationships, or our ability to explore unpopular or potentially embarrassing points of view.

Today the battle between law enforcement and privacy is being fought over encryption. One response to Edward Snowdens revelations about the extent of U.S. government surveillance has been growing popular insistence on encryption such as the end-to-end encrypted communications used in iPhones or WhatsApp to which no phone or Internet company holds an access key. Meeting this week in Ottawa, the Five Eyes intelligence sharing partnership Australia, Canada, New Zealand, the United Kingdom and the United States is considering an Australian proposal to mandate such a key, or back door, to encryption. Officials in the U.S. and U.K. have made similar proposals.

The rationale is that many terrorists and other criminals are using end-to-end encryption to hide their activities. Even if law enforcement officers or intelligence agents obtain a judicial warrant to monitor their communications, the lack of a back door key means there is no way that phone or Internet companies can let these officers in.

Yet a mandated back door essentially a built-in vulnerability is dangerous because there is no way to ensure that only the good guys will exploit it. Todays hackers, both criminal and governmental, are increasingly sophisticated. They have hacked Internet companies, sensitive infrastructure, even the National Security Agency itself. Technology companies are in a feverish race to enhance privacy and security protections. The last thing they need is to introduce a deliberate vulnerability. Few would want to return to an era when encryption was not the norm.

And to what end? A mandated back door to encryption might enable governments to catch some criminals. But criminals with any degree of sophistication would simply download encryption services that are widely available on the Internet without going through one of the brand-name companies that might be mandated to introduce a back door. Meanwhile, ordinary members of the public would be stuck with vulnerable communications.

Moreover, Western Internet and phone companies would be competitively crippled. Even if Five Eyes and other Western governments mandated a back door for devices made in their country, other countries might not follow suit. Anyone concerned with their privacy and security would flock to and try to sneak in devices produced in non-back-door countries.

The crimes that might be stopped through a back-door mandate must be weighed against the crimes that would be created. The vulnerability in our software and digital devices would mean more theft, blackmail and extortion as hackers enjoy a field day. Street crime would also be affected. The rise of strong default smartphone encryption has contributed to a plummeting in once-rampant cellphone theft. Theres no point in stealing a phone (often violently) if you cant penetrate its encryption. A mandated back door, once its vulnerability has been hacked, would once again expand the market for stolen phones.

Proponents of a back door also tend to assume that law-enforcement or intelligence access to it would require a judicial warrant or some lawful process, but it is easy to imagine circumstances in which these processes would be circumvented or subverted. In many countries where these devices are used, unscrupulous governments or officials in possession of this information would be more likely to persecute dissidents for their private criticisms.

For these reasons, a pantheon of senior security officials think a mandated back door is a bad and dangerous idea. In the United States, these include the past heads of the CIA, the NSA, and the Department of Homeland Security, as well as former president Barack Obamas Presidential Review Group on Intelligence and Communications Technologies. Europol has also warned that solutions that intentionally weaken technical-protection mechanisms to support law enforcement will intrinsically weaken the protection against criminals as well. Security officials would be better off adapting to a world of encryption than to weaken the security of our communications.

Even where end-to-end encryption is used, many types of communication already are subject to judicially-ordered surveillance. Metadata such as the data that guides a communication to the proper destination cannot do its job if it is encrypted. It remains available to government monitoring by appropriate judicial order, although care should be taken to ensure that this data, which can reveal a great deal about our personal life, is not collected excessively. Other metadata can pinpoint where a phone (and presumptively its user) has gone. Much information stored in the cloud is unencrypted.

The plethora of such unencrypted information has led some to say that today is the golden age of surveillance. Rather than press for encryption back doors, governments would be better off teaching investigators how to access important unencrypted sources of information.

Its time to abandon the quest for total information awareness. Yes, some criminals will benefit from encryption. But just as we dont outlaw whispering or drawing the shades, so we should accept that encryption is the only way to safeguard our communications in an era of increasingly sophisticated cybercrime and unauthorized surveillance.

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AlertSec Aims to Make Encryption Security More Accessible – eSecurity Planet

BySean Michael Kerner, Posted June 28, 2017

VIDEO: Ebba Blitz, CEO of AlertSec details what her security company is all about and why encryption on its own isn't enough to keep consumers safe.

Ebba Blitz isn't a typical technology industry CEO and the company she leads isn't a typical security vendor either. Blitz joined AlertSec after a career in journalism in Sweden where she honed her craft of making complex subjects more understandable which is what she's now doing in a different capability with security at AlertSec

"We help small and medium sized companies get the same level of security that larger enterprises normally have, in terms of full-disk encryption and we manage it for them," Blitz said.

Blitz said that some consumers are confused by security, thinking that password protection and security are the same thing. Overall educating both consumers and the market is Blitz's biggest challenge.

Watch the full video interview with Ebba Blitz below:

Sean Michael Kerner is a senior editor at eSecurityPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.

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Tresorit and Realm to deliver end-to-end encryption for reactive, collaborative mobile apps – SDTimes.com

Tresorit, the cloud encryption company, andRealm, the mobile platform powering the worlds most responsive applications, announced a partnership to deliver end-to-end encryption capabilities to developers using the Realm Mobile Platform. The combination of the two companies solutions provides developers with a comprehensive solution for building realtime, collaborative and secure mobile applications across the most regulated and data-sensitive industries including healthcare and financial services.

Bringing end-to-end encryption to realtime collaborative appsDelivering end-to-end encryption across mobile devices and backend systems of record has traditionally required significant amounts of engineering and cryptography expertise to implement, making it possible for only the largest companies with considerable resources. The combination of TresoritsZeroKitSDK and the Realm Mobile Platform make it realistic for any developer to securely authenticate users and provide an end-to-end encrypted platform for realtime reactive mobile apps.

The combined Tresorit and Realmsolutiongoes beyond protecting end-users from being hacked or spied on. Tresorits end-to-end encryption for Realm Mobile Platform can also help companies easily comply with HIPAA or the EUs General Data Protection Regulation (GDPR).

Realtime collaboration is increasingly a requirement for critical applications in digital health or financial services, where data security and privacy are essential. Our joint solution makes it extremely easy for developers to build modern and secure applications in these markets, said Alexander Stigsen, co-founder and CEO, Realm.

The Realm Mobile Platform and ZeroKit solve many of the hardest problems of developing mobile applications with an intuitive and secure end-user experience. For the first time, developers can build end-to-end encrypted, realtime collaborative apps without being experts in cryptography, networking or backend development, said David Szabo, Senior Vice President of the ZeroKit platform at Tresorit.

Solving security challenges in data-sensitive industriesEarly customers adopting the Tresorit and Realm solution are building collaborative digital healthcare apps that require the highest level of security for sensitive patient data and realtime sync capabilities.

AmbulApps, a German healthcare startup is building a next-gen cloud and mobile doctor-patient engagement app using Realm Mobile Platform and ZeroKit. The app extends traditional health record management systems, empowering doctors and patients to share health data and maintain consistent communications.

Healthcare startup, Riverbay Softworks uses Realm Mobile Platform and ZeroKit in their cloud-based, privacy-first app Allergistic, to help allergists across California, Oregon and Washington treat patients via iPhones and iPads.

ZeroKit and Realm allow us to bring forth a new generation of healthcare applications that will reduce the documentation stress experienced by providers and organizations. These technologies allow us to easily implement end-to-end encryption and data syncing, while enabling us to focus more on creating apps that mirror true clinical workflow, adds Mark Pruitt, CEO at Riverbay Softworks.

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How can I invest in bitcoin? – The Guardian

If you are investing, does bitcoin have an intrinsic value, like gold? To me, bitcoins look more like tulip bulbs. Photograph: Benoit Tessier/Reuters

How can I invest in bitcoin? Id like to invest a few hundred pounds. Andy

There are at least three ways, though only one of them looks rational today. First, you could mine your own bitcoins. Second, you could buy some from an exchange. Third, you could buy shares in a fund that has invested in bitcoins.

Please note that answering your question is not a recommendation, and I am not qualified to give advice on investments. However, as electronic payments expert Dave Birch put it to me on Twitter: one doesnt invest in bitcoin, one gambles on bitcoin.

The problem is that people can make money by buying things that are essentially worthless, such as used postage stamps, Beanie Babies, and (historically) tulip bulbs. Tulipmania operated on the bigger fool theory, also known among stock traders as momentum investing. For example, tulip bulb prices may be insane but they keep going up. I may be a fool to buy them, but I expect a bigger fool to buy them from me. Simply replace buy low, sell high with buy high, sell higher. This works until you run out of fools.

However, you can buy things that dont depend on bigger fools appearing, such as land and gold. Their prices may vary dramatically, but over the long term, they retain real value. When tulip bulb prices were tumbling, everyone wanted to sell. When gold prices tumble, people with money look forward to an investment opportunity.

Bitcoin is a digital currency. If you want to buy a camera for 250, then you need a way to transfer 250 to the seller. In theory, it doesnt matter if you pay cash, write a cheque, email the money via PayPal or use bitcoin. In reality, you have to balance a range of factors including convenience, security and transaction costs. Id use a credit card, if possible, because bitcoin payments are not reversible and offer no consumer protection.

But if you are investing, does bitcoin have an intrinsic value, like gold? To me, bitcoins look more like tulip bulbs.

The price of a bitcoin may increase because, for example, it is attractive to technology enthusiasts, and because we are all reading stories about how people made or failed to make fortunes. But, like tulip bulbs, bitcoins could be worthless when the bubble bursts.

As Henry Blodget told CNBC: Look, this is a perfect asset for a speculative bubble. There is a finite supply. There is no intrinsic value. If anybody is persuading you that it should somehow be related to some GDP or gold put down the Kool-Aid and back away.

You could argue that banknotes dont have any intrinsic value either. However, banknotes are backed by governments that have a strong interest in keeping their value relatively stable. Governments dont (yet) care what happens to bitcoins.

Bitcoins are mined by people solving problems with computers. In the beginning, the best way to make money from bitcoins was to mine them with a home PC. However, bitcoin mining becomes more difficult the more miners there are. Today, you need specialised hardware, and you need to join a mining pool where large numbers of miners work together and share the results. Coins are not pure profit because of the cost of the hardware and the electricity consumed when mining. Also, you dont know what bitcoins will be worth when you start mining them.

However, there must be dozens of digital currencies besides bitcoin, and the CoinChoose website lists a Top 20. Well known alternatives include Ethereum, Litecoin, Dogecoin and Bytecoin. You might find one that is still worth mining, or that might represent a better gamble than bitcoin. CryptoCompare is another useful website.

Ethereum is interesting because its backed by an alliance that includes JP Morgan, Microsoft, Intel, Banco Santander, Credit Suisse Group, UBS and BP. Its designed to perform transactions very much faster than bitcoin, and its hashing system is decentralised by design. It favours individuals, not mining pools.

You can buy bitcoins from a bitcoin exchange or online broker, directly from another individual, or from an ATM. Coin ATM Radar lists about 50 bitcoin ATMs in London, many of them in convenience stores. As when buying foreign currencies, theres a fee, which can range from 3.1% to 17.6%. The website covers 56 countries and you can search for an ATM near you.

A bitcoin ATM usually takes cash from your bank card, though some only accept banknotes. It sends your digital currency (bitcoin, litecoin etc) to your wallet, which could be a smartphone app, or to your email address. Some ATMs can print paper wallets that you can scan later.

If you buy a digital currency from an exchange, it may well offer you an online wallet, but your money is at risk unless you have the keys. When the Mt Gox bitcoin exchange was hacked, around 850,000 bitcoins went missing. It was a $450m loss at the time, but at todays exchange rate, it would be $2bn.

There are dozens of different wallets for different purposes, with hot wallets on smartphones and cold storage wallets held offline on paper, on hardware devices (cards, thumbdrives etc) or on separate PCs. These are equivalent to your spending money and your savings account respectively.

You will need to research wallets. However, We Use Coins has a decent guide, and it recommends BitPays Copay to beginners. Its easy to use and it runs on iOS, Android, Windows and Windows Phone, MacOS and Linux. It can also handle shared accounts.

I used my Android phone to search for bitcoin wallet on Google Play, and gave up when it produced around 200 results. Copay was near the top. It only took two minutes to create a wallet, and it prompted me to make a backup: Watch out! If this device is replaced or this app is deleted, neither you nor BitPay can recover your funds without a backup.

It also warned me that Anyone with your backup phrase can access or spend your bitcoin. I dutifully wrote it down.

Once the wallet is set up, you can use the app to buy bitcoins from Coinbase in 33 countries, and from Glidera in the USA. It can take several days to buy or sell bitcoins via Coinbase.

Some investors presumably ones who do not have teenage children think bitcoin is for the tech-savvy, difficult to buy and perhaps even harder to store safely. This has given rise to funds that buy bitcoins or related assets such as mining companies. Last month, The Motley Fool described one ETF as The Worst Way to Buy Bitcoin. At the time, the story said, shares in the Bitcoin Investment Trust cost about twice as much as the bitcoins it owned, but typically they have traded at an average premium of 39% to underlying value of the bitcoin.

You could buy dollar bills for $1 each, so why would anyone pay $1.39 to invest in a $1 bill which is actually worth less than $1, because of the 2% annual management fee? Answer: the laws of supply and demand.

Other American investors were conned by a Ponzi scheme that offered shares in bitcoin mining machinery.

Stories like that could be signs of a bubble market, but if so, when and how it will end is impossible to say.

Have you got another question for Jack? Email it to Ask.Jack@theguardian.com

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