5 Jun
0
You say Bitcoin has no intrinsic value? Twenty-two reasons to think again!
Intrinsic Value Defined:
(BitcoinMagazine) Let’s agree what the term “Intrinsic Value” means. For this article
we will use the common Wikipedia entry for the intrinsic theory of
value. This is found at: http://en.wikipedia.org/wiki/Intrinsic_theory_of_value
we will use the common Wikipedia entry for the intrinsic theory of
value. This is found at: http://en.wikipedia.org/wiki/Intrinsic_theory_of_value
An intrinsic
theory of value (also called theory of objective value) is any theory
of value in economics which holds that the value of an object, good or
service, is intrinsic or contained in the item itself. Most such
theories look to the process of producing an item, and the costs
involved in that process, as a measure of the item’s intrinsic value.
What are some properties contained in the bitcoin itself? What are
the properties that make it valuable? Some pundits like Warren Buffett
seem to remain stuck in the belief that only things you can touch, feel,
and see can be intrinsically valuable.
the properties that make it valuable? Some pundits like Warren Buffett
seem to remain stuck in the belief that only things you can touch, feel,
and see can be intrinsically valuable.
So now let’s talk about the properties that are found in bitcoin that
are unique or ground-breaking. These properties did not exist before
bitcoin. Some people would rightly point out that many of these
properties can be duplicated. There is, however, one extremely important
factor that separates bitcoin from any other digital coins on the
horizon: the protective shell created by the network that prevents it
from being hacked or commandeered
are unique or ground-breaking. These properties did not exist before
bitcoin. Some people would rightly point out that many of these
properties can be duplicated. There is, however, one extremely important
factor that separates bitcoin from any other digital coins on the
horizon: the protective shell created by the network that prevents it
from being hacked or commandeered
Bitcoin intrinsic value properties:
- It transcends nations, politics, religions, cultures and regulations.
These vary from country to country in ways that may seem bizarre to
populations out of its own borders. While one may believe that
governments always have their best interests at heart, it may be wise to
see that knife cuts both ways. Some drugs are banned in certain states
or countries that are allowed in others. Bibles are banned from purchase
is some countries. Religion, custom, dogma, superstitions prevent
various purchases based on man-made borders that continually shift over
time. These policies tend to be created by limited segments of
populations that can be self-serving. If one happens to be included in
the “correct” political party, race, religion, items can be purchased or
outlawed. It’s all opinion.
The US government bans online gambling.
Is this a moral decision? Many of the same governments think it morally
acceptable to hold their own state-lotteries. The lotteries hold
significantly worse odds and tends to target those in the community that
are the least educated and most susceptible to poverty, alcohol abuse,
and have a generally poor understanding of mathematical probability.
Many have gone on to say that lotteries are simply “a tax on people bad
at math”. Many argue that this is a double standard of governments
which prevents them from taking the moral high ground.
Is this a moral decision? Many of the same governments think it morally
acceptable to hold their own state-lotteries. The lotteries hold
significantly worse odds and tends to target those in the community that
are the least educated and most susceptible to poverty, alcohol abuse,
and have a generally poor understanding of mathematical probability.
Many have gone on to say that lotteries are simply “a tax on people bad
at math”. Many argue that this is a double standard of governments
which prevents them from taking the moral high ground.
2. It requires no trust. (in
the short term). It can’t be counterfeit. There is a record of who owns
it (by wallet id) and its validity is publicly known. It requires no
central clearing house. With any other currency, one must trust the
government from which it is issued will continue to maintain its value
by not “overprinting” to pay for its own mismanagement. You can send it
globally without having to trust anybody. This is not true with any
state issued country, bank, credit card company, or anybody else.
Volatility and long-term trust is still building, but when one transacts
in bitcoin, nobody gets in-between sender and receiver unless agreed
beforehand. It’s permission-less.
the short term). It can’t be counterfeit. There is a record of who owns
it (by wallet id) and its validity is publicly known. It requires no
central clearing house. With any other currency, one must trust the
government from which it is issued will continue to maintain its value
by not “overprinting” to pay for its own mismanagement. You can send it
globally without having to trust anybody. This is not true with any
state issued country, bank, credit card company, or anybody else.
Volatility and long-term trust is still building, but when one transacts
in bitcoin, nobody gets in-between sender and receiver unless agreed
beforehand. It’s permission-less.
3. It can be transparent.
By making wallet IDs public, one can track the flow of money through
other transparent wallets. You cannot do that with any other currency.
You can use this feature to do things like monitor your children’s use.
This can make obsolete entire industries that are built solely on the
fact that money can be hidden, disguised, cheated, etc. These can also
happen to bitcoin, but pressure can be applied by the people to make it
transparent and accountable when needed. Auditors may insist on it for
compliance. The list of possibilities of this intrinsically valuable
feature can scarcely be imagined.
By making wallet IDs public, one can track the flow of money through
other transparent wallets. You cannot do that with any other currency.
You can use this feature to do things like monitor your children’s use.
This can make obsolete entire industries that are built solely on the
fact that money can be hidden, disguised, cheated, etc. These can also
happen to bitcoin, but pressure can be applied by the people to make it
transparent and accountable when needed. Auditors may insist on it for
compliance. The list of possibilities of this intrinsically valuable
feature can scarcely be imagined.
4. It can be programmable.
Plans for product layers on top of bitcoin to further its use to become
spendable based on contracts that can be programmed to complete with
built in variables, or be valid to purchase only certain items. Insist
your college bound kid buys books and not beer for example. Or based on
GPS in a cell phone, you could send your kids off shopping and it could
be programmed to be spendable only in certain stores.
Plans for product layers on top of bitcoin to further its use to become
spendable based on contracts that can be programmed to complete with
built in variables, or be valid to purchase only certain items. Insist
your college bound kid buys books and not beer for example. Or based on
GPS in a cell phone, you could send your kids off shopping and it could
be programmed to be spendable only in certain stores.
5. It can require multi-signatures.
Wallets containing the currency can be set to only unlock with more
than one signing key. This will leave hackers and thieves frustrated.
Try doing that with your grandpa’s money. It is an intrinsic piece of
bitcoin technology.
Wallets containing the currency can be set to only unlock with more
than one signing key. This will leave hackers and thieves frustrated.
Try doing that with your grandpa’s money. It is an intrinsic piece of
bitcoin technology.
6. It can be spent over the internet without a bank account, credit report, identification, and pre-permissions.
Prepaid credit cards can do some of these functions, but only to
locations and countries that accept credit cards. This list of locations
in countries outside of the US is actually decreasing with the amount
of fraud in the networks. Technically, the only item limiting of bitcoin
is the merchant’s acceptance of it. Given the natural law of least
resistance, these limitations could erode as more merchants around the
world realize the potential savings. The network effect will continue to
work its magic.
Prepaid credit cards can do some of these functions, but only to
locations and countries that accept credit cards. This list of locations
in countries outside of the US is actually decreasing with the amount
of fraud in the networks. Technically, the only item limiting of bitcoin
is the merchant’s acceptance of it. Given the natural law of least
resistance, these limitations could erode as more merchants around the
world realize the potential savings. The network effect will continue to
work its magic.
7. It can store irrevocable and time stamped records of transactions.
Absolute clarity of events and their corresponding order is available
in the block chain. Proof of ownership and purchase can be established
without a third party. The trusted and reliable distributed ledger
cannot reasonably be altered (barring a massive scale network attack
which becomes less likely as the network grows).
Absolute clarity of events and their corresponding order is available
in the block chain. Proof of ownership and purchase can be established
without a third party. The trusted and reliable distributed ledger
cannot reasonably be altered (barring a massive scale network attack
which becomes less likely as the network grows).
8. It allows you to keep your identity from being stolen. Bitcoin
is nobody’s debt. Paying with bitcoin isn’t a “promise to pay”. It is
payment in full. This could potentially reduces fraud related expenses
on massive scale. http://www.statisticbrain.com/credit-card-fraud-statistics/ There
is no need for a merchant to get bank information or any other kind of
personal information that can be later used in identity theft.
is nobody’s debt. Paying with bitcoin isn’t a “promise to pay”. It is
payment in full. This could potentially reduces fraud related expenses
on massive scale. http://www.statisticbrain.com/credit-card-fraud-statistics/ There
is no need for a merchant to get bank information or any other kind of
personal information that can be later used in identity theft.
9. It allows movement across borders.
It can defeat government issued capital controls. The same governments
try to hold their own citizens “hostage” monetarily by outlawing
movement of money outside its own borders. Ask any citizen from any
country ravaged by hyperinflation if this is important. Could it be
possible that it might ever become important
in the USA? If you can foresee the day people will be clamoring to get
out of the US dollar, where do you think they are going to go? Ask
Argentina.
It can defeat government issued capital controls. The same governments
try to hold their own citizens “hostage” monetarily by outlawing
movement of money outside its own borders. Ask any citizen from any
country ravaged by hyperinflation if this is important. Could it be
possible that it might ever become important
in the USA? If you can foresee the day people will be clamoring to get
out of the US dollar, where do you think they are going to go? Ask
Argentina.
10. The same wallet can be used anywhere in the world with a connection to the internet.
As the money exists on the global ledger, all you need is the key. This
can be memorized, or written on any piece of paper – even confined
inside a microdot
the size of the period that ends this sentence. Some old time gold bugs
say you can’t bribe the border guards with bitcoin like you can gold. In
the future, border guards will have cellphones and internet access too.
We aren’t living in the 1960s Vietnam or before any longer.
As the money exists on the global ledger, all you need is the key. This
can be memorized, or written on any piece of paper – even confined
inside a microdot
the size of the period that ends this sentence. Some old time gold bugs
say you can’t bribe the border guards with bitcoin like you can gold. In
the future, border guards will have cellphones and internet access too.
We aren’t living in the 1960s Vietnam or before any longer.
11. It can move independently of banking rules, laws, and restrictions.
The people in the USA may think this unimportant in their bubble view
of the world, but is this also true of the 150 or so currencies and countries with terrible track records?
Which other currency enjoys this property? Will enough of the world
outside of the US believe it to be so? Is it hard to imagine the
properties of bitcoin being intrinsically valued by populations
subjected to terrible economic policies? It only takes a billion people
in India fed up with corruption to want an escape mechanism out of the
control of the system. At that point, they won’t give a hoot about what
some American pundit said on “bubble vision” about intrinsic value.
The people in the USA may think this unimportant in their bubble view
of the world, but is this also true of the 150 or so currencies and countries with terrible track records?
Which other currency enjoys this property? Will enough of the world
outside of the US believe it to be so? Is it hard to imagine the
properties of bitcoin being intrinsically valued by populations
subjected to terrible economic policies? It only takes a billion people
in India fed up with corruption to want an escape mechanism out of the
control of the system. At that point, they won’t give a hoot about what
some American pundit said on “bubble vision” about intrinsic value.
12. It can be used to resist corruption.
If the citizens stand up united and demand a transparent government,
they can use bitcoin to follow the money in the same way governments use
powers at their disposal for surveillance on their own populations. In
today’s world money corrupts. In tomorrow’s maybe it will become
vice-versa. Let’s see if 86% of the world agrees that any tool that makes less opportunity for corruption is valuable.
If the citizens stand up united and demand a transparent government,
they can use bitcoin to follow the money in the same way governments use
powers at their disposal for surveillance on their own populations. In
today’s world money corrupts. In tomorrow’s maybe it will become
vice-versa. Let’s see if 86% of the world agrees that any tool that makes less opportunity for corruption is valuable.
13. It can be made to settle contracts without other parties.
You can program it to settle contracts based on certain events such as
date, proof of ownership, death, or a host of other factors that can be
validated programmatically without a third party to validate if the
conditions were met. It can be used as a record keeping asset tag, and
proof of ownership. Ownership of the private key to the bitcoin is by
definition, the owner. In addition, it can be the source record of
ownership for property title, copyrights, and intellectual property that
transcends borders and locally interpreted laws. In effect, the
records become the de-facto “single source of truth”. The currency
itself is globally accessible proof of ownership. Can these functions
and properties be reasonably argued to be valuable beyond the currency
itself?
You can program it to settle contracts based on certain events such as
date, proof of ownership, death, or a host of other factors that can be
validated programmatically without a third party to validate if the
conditions were met. It can be used as a record keeping asset tag, and
proof of ownership. Ownership of the private key to the bitcoin is by
definition, the owner. In addition, it can be the source record of
ownership for property title, copyrights, and intellectual property that
transcends borders and locally interpreted laws. In effect, the
records become the de-facto “single source of truth”. The currency
itself is globally accessible proof of ownership. Can these functions
and properties be reasonably argued to be valuable beyond the currency
itself?
14. There are no age requirements.
Paying for items in a global world requires bank accounts. Bank
accounts are legal properties that can only be established with those of
legal age (18 in most locations). There is no minimum age requirement
to pay for items globally using bitcoin. How many people under 18 have
cell phones, AND need to spend money with no credit card. Smart
businesses have started to recognize this intrinsically valuable
potential.
Paying for items in a global world requires bank accounts. Bank
accounts are legal properties that can only be established with those of
legal age (18 in most locations). There is no minimum age requirement
to pay for items globally using bitcoin. How many people under 18 have
cell phones, AND need to spend money with no credit card. Smart
businesses have started to recognize this intrinsically valuable
potential.
15. It is more difficult to be used as surveillance.
The main attributes of money are often quoted these days, but one
attribute is rarely mentioned. Money has become surveillance. As people
continue to learn of the horrors of the NSA and other government efforts
to spy on every aspect of their lives, it only takes one person drunk
with power to make all the well-intention sounding policies reverse into
shocking horror. One government required Jews to register themselves
for easy identification, which was then used to “dispose” of them.
The main attributes of money are often quoted these days, but one
attribute is rarely mentioned. Money has become surveillance. As people
continue to learn of the horrors of the NSA and other government efforts
to spy on every aspect of their lives, it only takes one person drunk
with power to make all the well-intention sounding policies reverse into
shocking horror. One government required Jews to register themselves
for easy identification, which was then used to “dispose” of them.
Now one’s religion, race, gender,
national origin, political party, age, place of work, address, and much
more can be determined by how and where one spends their money. To those
who think they have nothing to worry about because they are not doing
anything wrong, might ask themselves, what did the Jews have to fear
during the time they were self-registering? They also were not
(generally) doing anything wrong. That’s only one example in a history
littered with them. Is the ability to obscure one’s spending habits
intrinsically valuable? Is it possible to imagine how much of the
population of the world would think it is?
national origin, political party, age, place of work, address, and much
more can be determined by how and where one spends their money. To those
who think they have nothing to worry about because they are not doing
anything wrong, might ask themselves, what did the Jews have to fear
during the time they were self-registering? They also were not
(generally) doing anything wrong. That’s only one example in a history
littered with them. Is the ability to obscure one’s spending habits
intrinsically valuable? Is it possible to imagine how much of the
population of the world would think it is?
16. Bitcoin as money bandwidth.
If one were to transfer value between large companies or nations, much
of the world has discovered bitcoin to be a very efficient payment
network to do this. If bitcoin was thought of as envelopes to be stuffed
with dollars or other currencies for transport, only the size of the
envelope itself that contains the dollars inside would be the limiting
factor. To increase the ability and usefulness of this feature, the
envelopes represented in bitcoin price will have to inflate enormously
to take on that load. The Federal Reserve and former Vice Presidents have caught on. So has smart Venture Capitalist firms that have a knack for being one step ahead of everybody else.
If one were to transfer value between large companies or nations, much
of the world has discovered bitcoin to be a very efficient payment
network to do this. If bitcoin was thought of as envelopes to be stuffed
with dollars or other currencies for transport, only the size of the
envelope itself that contains the dollars inside would be the limiting
factor. To increase the ability and usefulness of this feature, the
envelopes represented in bitcoin price will have to inflate enormously
to take on that load. The Federal Reserve and former Vice Presidents have caught on. So has smart Venture Capitalist firms that have a knack for being one step ahead of everybody else.
17. It can be the basis of a new eco system. Right now entire new ecosystems
are being built up around the new currency (in use, if not government
recognition). Gold towns sprang up into eco-systems but crashed when
the gold veins ran dry. We know exactly how deep the bitcoin well can go
and the rate at which it will be found. What other modern day
ecosystems are being built because of the intrinsic values of a
currency?
are being built up around the new currency (in use, if not government
recognition). Gold towns sprang up into eco-systems but crashed when
the gold veins ran dry. We know exactly how deep the bitcoin well can go
and the rate at which it will be found. What other modern day
ecosystems are being built because of the intrinsic values of a
currency?
18. It can upend centuries-old money monopolies. The strangleholds on monetary policy continue to be held by relatively few extremely wealthy families
for centuries. Bitcoin has the possibility to change the paradigm
completely. These banks will likely find ways to maintain their power
and wealth and there is nothing preventing them from moving into digital
currencies to maintain it. However, which other currency has the
possibility to change the dynamic? Many in the world will likely place
much value in the paradigm shift that is possible. When was the last
time a monetary unit threatened to rewrite the rules from the ground up?
for centuries. Bitcoin has the possibility to change the paradigm
completely. These banks will likely find ways to maintain their power
and wealth and there is nothing preventing them from moving into digital
currencies to maintain it. However, which other currency has the
possibility to change the dynamic? Many in the world will likely place
much value in the paradigm shift that is possible. When was the last
time a monetary unit threatened to rewrite the rules from the ground up?
19. Democratization of money. An explosive report
from a whistleblower from the World Bank reports that all networked
banking infrastructure throughout the entire world can be traced back to
12 people who make decisions at the privately controlled US Federal
Reserve bank. Consensus driven, public records, and democratization of
money made possible by bitcoin, might change the rules.
from a whistleblower from the World Bank reports that all networked
banking infrastructure throughout the entire world can be traced back to
12 people who make decisions at the privately controlled US Federal
Reserve bank. Consensus driven, public records, and democratization of
money made possible by bitcoin, might change the rules.
20. Gives the unbanked population access to banking features they might not otherwise enjoy. As the much smaller digital currency M-Pesa proved,
the poverty riddled villages with no access to banking were able to
lift themselves out of poverty with simple abilities to pay suppliers
and start businesses. With the cross border scale and usability of
bitcoin, imagine the same results x 1,000. Are there any national
currencies up to this task?
the poverty riddled villages with no access to banking were able to
lift themselves out of poverty with simple abilities to pay suppliers
and start businesses. With the cross border scale and usability of
bitcoin, imagine the same results x 1,000. Are there any national
currencies up to this task?
21. It can be extremely hard to steal.
Muggers of the future will be at a loss for what to do with the bitcoin
they can’t take from your wallet or purse. That money will be no good
to them without the private keys to spend it. There likely will no
longer be credit cards there was well. Could robbery itself become
obsolete? Hackers will soon have a difficult time stealing money from
multi-signature wallets.
Muggers of the future will be at a loss for what to do with the bitcoin
they can’t take from your wallet or purse. That money will be no good
to them without the private keys to spend it. There likely will no
longer be credit cards there was well. Could robbery itself become
obsolete? Hackers will soon have a difficult time stealing money from
multi-signature wallets.
22. It represents economic freedom.
Because of all of the reasons stated above, it might as well be called
the currency of freedom. Dictators will hate it. Totalitarian
governments will hate it in proportion equal to the amount of corruption the government enjoys.
The worst countries for freedom believe that money exist primarily to
serve the country and personal ownership of it is just an illusion they
can confiscate at will. Banks technically own it as soon it’s deposited.
Through court order, government taxation, or inflation, they always get
it back. Bitcoin offers some protection. We become our own bank.
Because of all of the reasons stated above, it might as well be called
the currency of freedom. Dictators will hate it. Totalitarian
governments will hate it in proportion equal to the amount of corruption the government enjoys.
The worst countries for freedom believe that money exist primarily to
serve the country and personal ownership of it is just an illusion they
can confiscate at will. Banks technically own it as soon it’s deposited.
Through court order, government taxation, or inflation, they always get
it back. Bitcoin offers some protection. We become our own bank.
Many people will likely debate this list.
Others might be open to the suggestion that if just ONE of these
factors is agreeable to most reasonable people, the description used by
Wikipedia might also be applied to bitcoin. A year from now, there
might be another list compiled that is just as long as this one – of
things that can’t possibly be imagined today.
Others might be open to the suggestion that if just ONE of these
factors is agreeable to most reasonable people, the description used by
Wikipedia might also be applied to bitcoin. A year from now, there
might be another list compiled that is just as long as this one – of
things that can’t possibly be imagined today.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
4 Jun
0
How Purse.io can shave 25% off Bitcoin buyers’ Amazon bills!
A good startup, they say, should find a problem and solve it elegantly. Well, California-based company Purse.io solves two problems and ties the solutions together in one neat package.
(CoinDesk) The company is marketing its service at people who would like to purchase items at Amazon using bitcoin, which the retail giant doesn’t yet accept. But integral to its solution are those who want to obtain bitcoin using a credit card, perhaps in areas where exchanges are not available.
By matching these two markets, Purse.io is able to able to offer bitcoin purchases on Amazon, powered by a kind of bitcoin exchange that uses a
buyers’ discount to incentivise bitcoin owners to ‘sell’ their digital currency.
buyers’ discount to incentivise bitcoin owners to ‘sell’ their digital currency.
This process is similar to a peer-to-peer (P2P) marketplace, where Purse.io acts as an intermediary, offering users the platform, bitcoin wallet and escrow for transactions. Andrew Lee, co-founder of Purse.io, told CoinDesk:
“I think people that try it and realize they just saved 25% on Amazon are excited about that possibility. For the first time, they’ve been able to do something useful with bitcoin [rather than just buy and hold].”
How it works
Firstly, when someone – Alice, say – wants to use bitcoin to purchase items for a discount from Amazon, she deposits bitcoin in her Purse.io account.
Then, using a ‘share’ URL, she imports her Amazon ‘wish list’ into Purse.io and indicates what level of discount she would like for the items.
Then, using a ‘share’ URL, she imports her Amazon ‘wish list’ into Purse.io and indicates what level of discount she would like for the items.
When complete, the listing is posted on the Purse.io marketplace.
Next, someone looking to obtain bitcoin for a similar amount, we’ll call them Bob, accepts the transaction and purchases the items on Alice’s wish
list using a credit card. Soon after, the items are shipped to Alice. Once the items have been received, Alice notifies Purse.io, at which point her bitcoin is released from escrow and is sent to Bob (see the company’s explanatory video below).
list using a credit card. Soon after, the items are shipped to Alice. Once the items have been received, Alice notifies Purse.io, at which point her bitcoin is released from escrow and is sent to Bob (see the company’s explanatory video below).
“It’s kind of like an exchange, but with that Amazon layer,” explained Kent Liu, the second founder of the company.
It is worth noting that while there is a recommended 25% ‘maximum’ discount, in fact, the user sets the amount and transactions have been accepted with discounts as high as 45%. However, Liu explained that there is a ‘sweet spot’ for item price compared to percentage discount that is likely to make the transaction quickly accepted:
“Anything below 15% at $500 [total price], […] will get taken.”
All about incentive
Liu said that he came up with the idea for Purse.io about a year ago, when bitcoin’s price had risen to a level not previously seen before, and as a result there were a number of new BTC-related services appearing. “People were excited to spend bitcoin,” he said. The problem, at least from Liu’s perspective, is that every service charged fees. Why not give people an incentive to unload bitcoin, allowing others improved access to the cryptocurrency?
“It is difficult to buy bitcoin. It is really, really hard,” said Liu. “Our market is people who cannot overcome that difficulty. [And] the difficulty is not going to decrease that easily anytime soon.” Instead of charging bitcoin buyers on Purse.io, the company levies a 1% fee on those selling the bitcoin and getting an Amazon discount.
Easing bitcoin’s on-ramp
Globally, it is still not easy to buy bitcoin. While, in the US, users that have a checking account can easily convert dollars into bitcoin using exchanges like Coinbase, in many countries, there is no way to convert the local fiat currency into digital currency without jumping through a lot of hoops.
The top liquid markets for bitcoin are in USD, EUR, HKD and CNY. Source: Bitcoincharts
Doing so might mean exchanging one fiat currency into USD, then wiring it to a company such as Bitstamp, which will exchange it into bitcoin. At every step of the way a fee is charged. However, someone with an international credit card can purchase items on Amazon from pretty much anywhere.
Spending credits
So, essentially, anyone living in a country that does not have a viable bitcoin exchange could be a potential customer for Purse.io. It’s a better value proposition to for many, and furthermore, the fact that affiliates of Amazon receive a certain amount of credits that must be spent on the website may boost take-up of the service. Someone in India, for example, may want to convert those credits into bitcoin rather than Amazon items, or even rupees.
Purse.io founders Andrew Lee (left) and Kent Liu (right).
Relying on Amazon
So what would Purse.io do if Amazon shut them down? The founders have thought about that, but believe that for the time being they are
providing a service that is in demand. “We think we’re helping [Amazon],” said Lee. “They don’t want to take bitcoin now. They’re not ready for it.”
providing a service that is in demand. “We think we’re helping [Amazon],” said Lee. “They don’t want to take bitcoin now. They’re not ready for it.”
In April, an Amazon executive said that the company decided against accepting bitcoin due to weak customer demand.
Furthermore, there is added complexity for the company compared with other retailers that currently accept the digital currency.
Furthermore, there is added complexity for the company compared with other retailers that currently accept the digital currency.
According to Purse.io, Amazon’s marketplace strategy is problematic: having so many third-party sellers, a good portion of products on the retailer’s
website are not sourced from Amazon itself, creating complexity that the likes of TigerDirect and Overstock don’t have to deal with.
website are not sourced from Amazon itself, creating complexity that the likes of TigerDirect and Overstock don’t have to deal with.
“I don’t think we’ve seen a real big retailer accept bitcoin that has a marketplace,” Lee explained.
Trustless escrow
Although Purse.io provides a wallet for users to store the bitcoin they have acquired, Liu said the company would prefer to not store substantial customer funds:
“Right now, we are holding people’s money. But we don’t want to do that.”
However, by holding funds until the Amazon items are delivered, Purse.io has positioned itself in the digital currency escrow business, which could be a promising strategy. A recent FinCEN ruling indicated digital currency escrow is not a money transmission business, which is likely to mean less regulatory scrutiny for the company as more authorities issue guidance. In the future, the company plans to offer multi-signature transactions that have three keys: one for the buyer, one for the seller and one for Purse.io, creating a trustless form of escrow.
“None of us hold enough keys [in this model],” said Liu. “Nobody has control over [the funds], unless two people agree.”
Building a footprint
For several months, Purse.io has been working on its product at the Plug and Play Technology Center in Sunnyvale, California, since being accepted as one of several bitcoin startups in its accelerator scheme.
At a recent bitcoin meetup at the centre, which provides assistance to new tech startups, the company talked to Patrick Murck, General Counsel of the Bitcoin Foundation.
“He told us we’re pretty good from a regulatory standpoint,” Liu said.
Lee and Liu have now brought in some extra hands as far as development goes and they hope to raise more funding, in addition to the seeding that Plug and Play provided.
The plan is to focus on product and building out the multi-signature escrow, with the possibility of adding further retailers and building Purse.io’s own marketplace with the userbase it is developing. Amazon will likely, at some point, accept bitcoin. Until then, though, Purse.io is going to take advantage of its growing following, said Lee:
“We’re generating that userbase as long as this Amazon window is open. At the same time, we’re continuing to develop new services we can offer to these users.”
Open your free digital wallet here to store your cryptocurrencies in a safe place.
31 May
0
Twenty mind-bending secrets about Bitcoin
(BitcoinMagazine) This article will introduce some of bitcoin’s Mind-Bending amazing
abilities only few people know. As you read this list, remember your
favorite so can impress your friends with your new
incredible bitcoin knowledge.
1. Fun with programmable money
- Bitcoin wallets are like personal debit cards that you can create
and assign yourself to store your bitcoin. Some new wallet versions can
be programmed with bizarre abilities. - You can program features like GPS coordinates on your phone that make the money unavailable off if your kid leaves the city.
- You can also create “treasure hunts” where coins will suddenly be
released for you to use if you find yourself in the right place at the
right time. - You may also release money by calendar dates – gifting bitcoin
money that can’t be used until their 18th birthday or Christmas. Or set
up a will that releases amounts in intervals long after your death. - Huge potential for ideas not yet imagined.
2. First purchase with bitcoin
- Bitcoin’s price wasn’t established by a committee, government, or special council.
- Florida resident Laszo Hanyez may go down in history for buying the
most expensive pizza ever recorded. He also makes history for making the
first significant purchase using bitcoin. - His 10,000 bitcoins used in June of 2010 bought two Papa John’s Pizzas worth about $30 at that time.
- Today’s equivalent price is about $5 million.
- For the first 18 months they were worthless. The pizza purchase was
the event that set the price of bitcoin at about a third of one penny
each. - Within weeks, they were being bought and sold for 8 cents, representing a price increase of over 1,000%.
3. Bitcoins to billions
- In 2013 the price of a single bitcoin went from $13 to over $1,000 for an increase over 7,000%.
- At that rate, the owner of one bitcoin today would be a millionaire in two years.
- And would become a billionaire only 18 months after that.
4. Bitcoin is not alone
- Thousands of other digital currencies have since been created once bitcoin became popular.
- Litecoin, Peercoin, Dogecoin and many more can be purchased on various online exchanges.
- Thousands of people buy altcoins, hoping the bitcoin lighting strikes twice.
5. World’s fastest supercomputer
- The current computing power protecting the Bitcoin network is over
6,000 times more powerful than the top 500 supercomputers of the world
combined. And still growing faster. - Computer power is measured in “petaflops”. One petaflop is equal to one thousand trillion calculations per second.
- Top 500 supercomputers combined can calculate 250 petaflops. (Indicated by the arrow on the graph below).
- By comparison, the bitcoin network can calculate 883,000 petaflops.
- It is roughly the equivalent in scale between eight sticks of butter verses the largest 15,000 pound African Elephant.
6. The amazing bitcoin wallet
- Before you buy bitcoin you can create your own personal bitcoin wallet before you fund it.
- The number of possible wallet IDs that can be created are roughly the same amount as atoms on the earth.
- You can create as many as you want. They are free.
- New wallets can be secured with two or more passwords.
- You can also print your wallet to make a “Paper Wallet” that allows you to store your bitcoin off-line.
7. Spend bitcoin with smart phones for everyone
- The $25 smartphone is on the way.
- It is estimated that in 2014 there will be more cellphones than people on earth.
- Many poor countries just skipped land-line telephones and went straight to cellphones.
- Where they don’t have electricity, they charge them daily using solar panels.
- Most developing countries do not have access to banking – but the bank can come to them with bitcoin and a smartphone.
- Sending digital cash has already proven to lift entire villages out of poverty.
- This opens up their entire world from which to buy and sell items rather than just a few neighbors with cash on hand.
8. Magic the Gathering and bitcoin
- The first big online bitcoin exchange was Mt. Gox. It got its start and name by trading playing cards for “Magic The Gathering Online EXchange.
- They once accounted for over 80% of all Bitcoin trades.
- They started trading bitcoins when they were worth less than a dollar.
- Unsurprisingly, when the world found out that bitcoins were worth a
lot more than playing cards, the tiny company was overwhelmed. - More than half of all first generation Bitcoin exchanges have closed down.
- Now big finance companies are creating their own exchanges in the US that are regulated and insured.
9. Say goodbye to “Bitcoin” and hello to “Bits”
- Currently, one full bitcoin is divisible down to eight decimal places.
- The Bitcoin community has started referring the the sixth decimal point from a full bitcoin where they will be called “bits.”
- Bits are part of bitcoins as pennies are to a dollar – except it would take a million of them to buy a full bitcoin.
- Calling them “nano-dimes” sounded dumb.
- Today one hundred dollars migh buy you .2 bitcoins. Or it can buy
you 200,000 bits. It’s the same amount, but which one makes you feel
richer? - At some point, we might be able to sing that song (commonly played with hand- drums). “Shave and a haircut.. 2 BITS”
10. Spy Vs Spy. Your bank in a microdot
- Future Bitcoin billionaires can include their entire banking Bitcoin
fortune – in a dot the size of a period. When you have access to any
computer or phone with Internet connection you can simply type in your
account number and password as needed. - Your account is all stored and available to you on the public ledger
available anywhere in the world with an Internet connection.
11. Forget money laundering. Your activity is recorded
- Every transaction is tracked the Bitcoin public ledger, recorded and
shared around the world. The ledger cannot be changed and it’s
continually reconciled, verified and protected by bitcoin’s world-wide
network. - Every time a bitcoin trades hands, a trail of digital breadcrumbs follows it forever.
- You may or may not allow people to know your personal wallet
information, so your bitcoin account is as secret as you want it to be. - Once bitcoin passes through widely known wallet addresses, it may be
traceable by super-secret organizations that may, or may not, rhyme
with Em- essay. - Relax, if you aren’t doing any really, really bad – it’s probably
not worth the trouble for anybody to track your every spend. Not one
bit.
12. Gambling once accounted for most transactions
- The web gambling site “Satoshidice” once accounted for about half of bitcoin transactions.
- Due to murky gambling laws in various jurisdictions, gaming on Satoshidice is currently not allowed from US-based IP addresses.
- Provably Fair (http://provablyfair.org/)
is a website that has risen to act as an independent probability odds
checker for people to validate the odds of customer bets being
mathematically fair for the computers running the gaming systems. - Many online casinos are having their computer programs independently and voluntarily certified.
- Today bitcoin use is spread over several industries in addition to gambling.
13. Watch people trade in their paper money
- The website Fiat Leak shows a world map which allows you to see which country is exchanging their native currency for bitcoin in real-time.
- The larger the coin floating up – the bigger the dollar amount.
- The amounts all accumulate over a 10 minute period, which is the
point that the ledger is reconciled and copied throughout the world for
verification. - Once you go digital, you don’t go back.
- Ask the tape recorder.
14. It might become currency for poorly run countries
- Total value of bitcoin measured in US Dollars has surpassed 100 national currencies out of 160.
- Some are
beginning to ask if it is possible to one day to scrap some smaller
national currencies that continue to fail – and use bitcoin instead.
15. Bitcoin may be more important than the internet
- Several hundred million dollars are projected to be invested into Bitcoin startups by large corporations in 2014.
- Comparisons of importance are made by experts and scientists daily,
who often talk about the importance of how this will change the world
and often compare it with the invention of the Internet itself. - Marc Andreessen, who invented Mosaic, the first web browser, is one of many technical professionals who talk about Bitcoin and
reminds him of how he and his friends changed the Internet and World
Wide Web back in 1993 when it was still considered a techie geek
technology. As a reference point, most of the US was using the internet regularly just seven years later.
16. Watch bitcoin network grow
- See the time-lapse representation of the bitcoin network build out as it assembles and grows together around the world.
- It’s not much different than watching the progress of the early internet grow.
17. Robbing money may become obsolete
- New digital wallets will require at least two signatures (passwords) or more to use.
- This might include government’s robbery of its own citizens as many countries help themselves to one’s banking funds when they want.
- One can require as many signature passwords as you like. Go nuts and
require 51 signatures… Imagine the Senate being compelled to reach
majority before spending your taxes locked in a public wallet.
18. It can stop identity theft
- As making payments with bitcoin is the equivalent of cash, there is no banking information required from a retailer.
- The hacker attack at Target, Neiman Marcus, and Michael’s (among a
host of others) that stole users banking credit card information
wouldn’t have happened if they had only accepted bitcoin payment. - Paying in bitcoin is not a promise to pay. It’s payment in full.
19. No permission required
- Over half of the world have no banking account. They can’t get
access to regular loans, credit or checking account. They can’t get
permission from the creditors. - Bitcoin doesn’t require a bank account or credit report, and you
don’t have to be of legal age for contracts. And they can buy and sell
in a world-wide market for once. They didn’t need permission from the
courts. - One doesn’t need to be a citizen, or have identification or forms to fill out to own it. It requires no government permission.
- You are your own bank. No permission required.
20. Bitcoin the currency is only the beginning
- The Bitcoin network and ledger has features that can also function
as a way to store records of ownership, titles, copyrights and
trademarks, home and car titles. - It can replace the function of a notary public.
- All records are shared and distributed in a central location shared
by the entire world copied on thousands of millions of computers. - As the Internet did to the publishing industry, Bitcoin could
similarly disrupt several other fields or even render them obsolete. - Anybody’s job it is to move funds from one account to another may
need to learn a job as those functions can now be programmed, automated
and transparent. - Bitcoin 2.0 technologies and new start-up companies have already begun.
This list is only the start. Look into the amazing bitcoin and report
back your own found mind-benders in the comments section. Then play
bitcoin trivia with your friends – they may not believe you.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
30 May
0
10 things you should know about Bitcoin and digital currencies
After reading these 10 things to know about the confusing world of digital currencies, you’ll feel confident joining the conversation.
1. The difference between virtual, digital, and cryptocurrencies
(TechRepublic) Virtual currencies were developed because of trust issues with financial institutions and digital transactions. Though they aren’t even considered to be “money” by everyone, virtual currencies are independent of traditional banks and could eventually pose competition for them.
First, there are three terms that are sometimes used interchangeably that we need to sort out: virtual currency, digital currency, and cryptocurrency.
Virtual currency was defined in 2012 by the European Central Bank as “a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community.” Last year, the US Department of Treasury said that digital currency operates like traditional currency, but does not have all the same attributes — as in, it doesn’t have legal tender.
Digital currency, however, is a form of virtual currency that is electronically created and stored. Some types of digital currencies are
cryptocurrencies, but not all of them are.
cryptocurrencies, but not all of them are.
So that leads us to the more specific definition of a cryptocurrency, which is a subset of digital currencies that uses cryptography for security so that it is extremely difficult to counterfeit. A defining feature of these is the fact they are not issued by any central authority.
2. The origin of Bitcoin
Bitcoin is a cryptocurrency, a number associated with a Bitcoin address. In 2008, a programmer (or group of programmers) under the pseudonym Satoshi Nakamoto published a paper describing digital currencies. Then in 2009, it launched software that created the first Bitcoin network and cryptocurrency. Bitcoin was created to take power out of the hands of the government and central bankers, and put it back into the hands of the people.
There are currently about 12 million Bitcoins in circulation, though when it was created, the programmer said there is a finite limit of 21 million Bitcoins out there. They are currently valued at around $460 each, according to Bitcoin Charts, which tracks the activity. The value surged as high as $1000 each in December 2013.
3. The origin of Dogecoin
Dogecoin is a form of cryptocurrency that was created in December 2013. It features Doge, the Shiba Inu that has turned into a famous internet meme. It was created by Billy Markus from Portland, Oregon, who wanted
to reach a broader demographic than Bitcoin did. As of March, more than 65 billion Dogecoins have been mined, and the production schedule of this
cryptocurrency is in production faster than most.
to reach a broader demographic than Bitcoin did. As of March, more than 65 billion Dogecoins have been mined, and the production schedule of this
cryptocurrency is in production faster than most.
Earlier this year, the Dogecoin community raised funds for the Jamaican bobsled team to attend the 2014 Winter Olympics when they could not afford to go. The community also raised 67.8 million coins (about $55,000) to sponsor NASCAR driver Josh Wise, who drove the Doge-themed car in several races.
Because there’s a lot of them, Dogecoin is valued pretty low — 1,000 Dogecoins are worth $0.46.
4. Other types of digital currencies
There are other types of digital currencies, though we don’t hear much about them. The next most popular is probably Litecoin, which is accepted by some online retailers. It was inspired by Bitcoin and is nearly identical, but it was created to improve upon Bitcoin by using open source design.
There are many other types of cryptocurrencies, such as Peercoin, Ripple, Mastercoin, and Namecoin. Cryptocurrencies get some flack because they are often replicates of other versions, with no real improvements.
5. Bitcoin regulations
Who is in charge of Bitcoin? The point of the currency is that it is decentralized, but there are legalities that differ in every country. Law enforcement and tax authorities are concerned about the use of this cryptocurrency because of its anonymity and the ease of using it for money laundering and other illegal activities. Bitcoin was the prime currency on Silk Road, which was used to sell illegal goods, including drugs. It was shut down in 2013 by the FBI.
The US Security and Exchange Commission (SEC) hasn’t yet issued specific
regulations on digital currencies, but it often warns about investment schemes and fraud. The Financial Crimes Enforcement Network (FinCEN), an agency under the Department of Treasury, took initiative and published virtual currency guidelines in 2013. Many countries are still deciding how they will tax virtual currencies. The IRS is specifically concerned with virtual currencies being used for unreported income.
regulations on digital currencies, but it often warns about investment schemes and fraud. The Financial Crimes Enforcement Network (FinCEN), an agency under the Department of Treasury, took initiative and published virtual currency guidelines in 2013. Many countries are still deciding how they will tax virtual currencies. The IRS is specifically concerned with virtual currencies being used for unreported income.
6. How Ben Bernanke changed the Bitcoin game
In late 2013, the first congressional hearing on virtual currency was held to
outline the pros and cons of Bitcoin. The hearing ended up providing a
financial boost for the currency, because US officials talked about it as a
legitimate source of money, as opposed to only discussing its role in illegal
activities.
outline the pros and cons of Bitcoin. The hearing ended up providing a
financial boost for the currency, because US officials talked about it as a
legitimate source of money, as opposed to only discussing its role in illegal
activities.
Although he didn’t attend, Federal Reserve Chairman Ben Bernanke said in a letter to US senators that virtual currencies “may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system.” Bitcoin, which was valued around $13 in the beginning of 2013, jumped sharply after news of his comments broke.
7. How to get Bitcoins
There are three ways you can get Bitcoins: buy them on an exchange like HolyTransaction, accept them for products and services, and mine them. We’ll get to the latter process in the next section.
To start, download a Bitcoin wallet. There are many websites where you can download an app on your phone or computer to store Bitcoins. MultiBit is an app you can download for Windows, Mac and Linux. Bitcoin
Wallet for Android runs on your phone or tablet. To store the Bitcoins, you have three options:
Wallet for Android runs on your phone or tablet. To store the Bitcoins, you have three options:
1. Desktop wallets leave you responsible for protecting the currency and
doing your own backups.
doing your own backups.
2. Mobile wallets allow you to travel with the Bitcoins anywhere, and you
are responsible for them. Mobile apps allow you to scan a QR code or tap to
pay.
are responsible for them. Mobile apps allow you to scan a QR code or tap to
pay.
3. Web wallets are transacted through a third party service provider. If
anything happens on their side or it gets hacked, you run the risk of losing
the Bitcoins, so extra backups and secure passwords are suggested.
anything happens on their side or it gets hacked, you run the risk of losing
the Bitcoins, so extra backups and secure passwords are suggested.
Problem
is, Bitcoins can be stolen in huge quantities, just like money, and with no
centralized bank, there’s no way to recoup the losses. There are several types of Bitcoin ATMs, which exchange Bitcoins for flat currencies. Most machines are expensive and rare, ranging from $5,000 to $2,000. Skyhook,
a Portland, Oregon-based company, demoed a $1,000, machine at a conference this month. It is the first portable, open source ATM.
is, Bitcoins can be stolen in huge quantities, just like money, and with no
centralized bank, there’s no way to recoup the losses. There are several types of Bitcoin ATMs, which exchange Bitcoins for flat currencies. Most machines are expensive and rare, ranging from $5,000 to $2,000. Skyhook,
a Portland, Oregon-based company, demoed a $1,000, machine at a conference this month. It is the first portable, open source ATM.
8. How to mine for Bitcoins
It’s like mining for gold, just on the computer. You need a Bitcoin wallet and
specific software, which is free and open source. The most popular is GUIMiner, which searches for the special number combination to unlock a transaction. The more powerful your PC is, the faster you can mine. In the early days, it was easy to find Bitcoins, and some people found hundreds of thousands of dollars worth of the cryptocurrency using their computers. Now, though, more expensive hardware is required to find them. Each Bitcoin blockchain is 25 Bitcoin addresses, so it takes a lot of time to find them on your own. The exact amount of time ranges depending on the hardware power, but mining all day could drive your energy bill up and only mine a tiny fraction of a Bitcoin — it may take days to mine enough to purchase anything.
specific software, which is free and open source. The most popular is GUIMiner, which searches for the special number combination to unlock a transaction. The more powerful your PC is, the faster you can mine. In the early days, it was easy to find Bitcoins, and some people found hundreds of thousands of dollars worth of the cryptocurrency using their computers. Now, though, more expensive hardware is required to find them. Each Bitcoin blockchain is 25 Bitcoin addresses, so it takes a lot of time to find them on your own. The exact amount of time ranges depending on the hardware power, but mining all day could drive your energy bill up and only mine a tiny fraction of a Bitcoin — it may take days to mine enough to purchase anything.
To tackle that problem, there are now mining pools. Miners around the world can band together to combine the power of their computer systems and then share the profits between participants. The most popular one is Slush’s Pool, where smaller, more steady payouts are given instead of a lump sum.
9. Where you can use Bitcoin
There are many places you can use Bitcoin to purchase products or services. There’s no real rhyme or reason to the list, which includes big corporations and smaller, independent retailers including bakeries and restaurants. You can also use the currencies to buy flights, train tickets, and hotels on CheapAir; upgrades to your OK Cupid profile; products on Overstock.com; gift cards on eGifter. There’s a list on SpendBitcoins that shows all the places that accept the cryptocurrency.
10. The future of virtual currency
The value of Bitcoin has fluctuated drastically throughout the last year, and there are still 9 million of the coins out there in cyberspace. However, many
security issues remain, and that will continue to be a problem. In 2013, Mt. Gox, a Japanese exchange, handled 70% of all Bitcoin transactions, but they lost some 750,000 Bitcoins in February 2014 and filed for bankruptcy, and nothing has been proven in the case. Since it’s universal, it’s useful for international transactions, and could be helpful for transactions in developing countries.
security issues remain, and that will continue to be a problem. In 2013, Mt. Gox, a Japanese exchange, handled 70% of all Bitcoin transactions, but they lost some 750,000 Bitcoins in February 2014 and filed for bankruptcy, and nothing has been proven in the case. Since it’s universal, it’s useful for international transactions, and could be helpful for transactions in developing countries.
Some experts suggest putting a few aside if you have them and see what happens in the coming months and years, because there are sure to be regulations on the currency soon. With businesses jumping on the bandwagon and investors becoming interested in cryptocurrency, look for momentum to grow, but it will take time for the situation to stabilize as governments, the international community, and the people of the internet decide on how the next generation of currency will transition to a digital world.
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30 May
1
The difficulty of getting Bitcoin to catch on in Italy
Italy’s
first Bitcoin ATM was a Lamassu machine, installed in Udine,
a northeastern city nestled between the Alps and the Adriatic
Sea.
first Bitcoin ATM was a Lamassu machine, installed in Udine,
a northeastern city nestled between the Alps and the Adriatic
Sea.
(CoinTelegraph) That’s wine country, and you would need plenty of it to wash
down the stuffed gnocchi.
down the stuffed gnocchi.
The machine’s owner, Luca Dordolo, is often nearby to assist
anyone who needs help using the machine (it’s located in the hall of his family’s business).
He’s even had the interface translated into the local Friulian language, as
well as Italian.
anyone who needs help using the machine (it’s located in the hall of his family’s business).
He’s even had the interface translated into the local Friulian language, as
well as Italian.
Dordolo’s vision is to create an Italian hub for Bitcoin, and
his next step at this point is to install more machines around the country.
his next step at this point is to install more machines around the country.
Obstacles, both legal and cultural, are making this difficult,
though.
though.
Legal Obstacles
First, Dordolo laments the “lack of relevant legislation” in Italy
regarding Bitcoin, forcing him to operate in a grey area with which many
Bitcoin entrepreneurs are familiar.
regarding Bitcoin, forcing him to operate in a grey area with which many
Bitcoin entrepreneurs are familiar.
Before buying that first Lamassu ATM, Dordolo said he had a
pool of attorneys and legal experts advise him on what he could and could not
do. Italy,
they told him, does not regulate Bitcoin itself, nor are there any
know-your-customer regulations, but any transactions above 999.99 EUR need to
be reported.
pool of attorneys and legal experts advise him on what he could and could not
do. Italy,
they told him, does not regulate Bitcoin itself, nor are there any
know-your-customer regulations, but any transactions above 999.99 EUR need to
be reported.
So, that was the limit he set.
Here is what BitLegal says about Italian legislation:
“The use of electronic
currency is restricted to banks and electronic money institutions — that is,
private legal entities duly authorized and registered by the Central Bank of Italy.
Aside from these developments, Italy
does not regulate Bitcoin use by private individuals, and currently the
implementation of initiatives concerning the use of electronic currencies lies
with the EU.”
Dordolo is not confident Italian law will catch up with the
technology.
technology.
“Banca d’Italia is
studying the [Bitcoin] phenomenon, and perhaps — if they were fast — in 10-20
years we could have a law on it.”
Cultural Obstacles
Dealing with murky Italian laws is one thing. Dealing with
local perception is something else entirely, Dordolo said.
local perception is something else entirely, Dordolo said.
“In Italy, we are at the beginning of
Bitcoin’s spreading among the population. There is an interesting Bitcoin
community [in Italy],
but it is still very hard to explain to Italian people the real value that
Bitcoin creates in the economy and the job opportunities it creates.This is because of
misinformation by the national media that actually regard it as a scam or worst
as associated with criminal deeds.Even the local Bitcoin
Foundation is not as active as it should be, so whatever can move this
situation is welcome.”
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29 May
0
Satellite TV operator Dish Network to accept bitcoins!
Satellite TV operator Dish Network said it would accept bitcoin payments from customers from the third quarter, joining companies such as Overstock.com Inc and Zynga Inc in accepting the digital currency.
Dish said it selected Coinbase as the payment processor for bitcoin transactions with customers who choose to pay their bills online with the bitcoin wallet of their choice. Bitcoin is a digital currency that is not backed by any government or central bank and is bought and sold on a peer-to-peer network independent of central control.
In March, it launched its Instant Exchange feature, which will be used by Dish to convert bitcoins to U.S. dollars. Dish’s third quarter starts on July 1. While bitcoins may not be an alternative to established currencies, they can cut the cost of moving money around.
“We always want to deliver choice and convenience for our customers and that includes the method they use to pay their bills,” Bernie Han, Dish’s executive vice president and chief operating officer, said in a statement. “Bitcoin is becoming a preferred way for some people to transact and we want to accommodate those individuals.”
PricewaterhouseCoopers estimates that credit card companies charge around 3 percent in transaction fees and PayPal’s commission can go as high as 4 percent. The same transactions via bitcoin is likely to be free.
Image source: ElBitcoin
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28 May
0
Bitcoin Society CEO: Why digital currency is a tool for global good
(CoinDesk) The weekend before last week’s Bitcoin2014 conference in Amsterdam, 22-year-old Matthew Kenahan had a choice to make – one that he said was “probably one of the most difficult decisions I’ve ever had to make”.
Here was his dilemma: attend graduation after slogging for four hard years to get his degree in International Business and Marketing, or skip it to attend the Bitcoin2014 conference, where he and the organization he heads, the Bitcoin Society, were nominated for a Blockchain Award or ‘Blockie’.
“I had my 91-year-old grandmother travelling up from Mississippi [to my graduation],” he told CoinDesk. He eventually chose Amsterdam, and was
rewarded with not only winning the award for ‘Most Impactful Charity’, but also for ‘Bitcoin Champion’ after Andreas Antonopoulos was unable to accept the prize due to a conflict of interest.
rewarded with not only winning the award for ‘Most Impactful Charity’, but also for ‘Bitcoin Champion’ after Andreas Antonopoulos was unable to accept the prize due to a conflict of interest.
My sincere thanks to anyone who voted for me in the blockchain awards. I apologize for not being able to accept due to conflict of interest
— AndreasMAntonopoulos (@aantonop) 16 Maggio 2014
Tool for charity
Obviously, Kenahan’s ‘problem’ is a lighthearted tale, and nothing like the hard choices faced by people who are living hand-to-mouth in many regions of the world. In fact, he sees bitcoin as a tool for helping the less well-off and, under his leadership, the Bitcoin Society has sought to explore the charitable uses of bitcoin and to promote a positive image of bitcoin in contrast to its association with the drugs trade.
“The main idea behind this is to show people that you can use cryptocurrency for something other than Silk Road. We’re creating a global community,
we’re trying to connect people,” Kenahan explained
we’re trying to connect people,” Kenahan explained
As befits a prize for charitable work, Kenahan pledged to donate his 1BTC winnings to the Women’s Annex Foundation, which aims to build women’s digital literacy and increase access to the Internet. He tweeted confirmation of the donation that same day. For Kenahan, that transparency in donations is appealing from an accountability point of view:
“[Bitcoin] allows you to create a unique address, for a very specific cause […]
we see both the incoming and outgoing transactions, and we can see that
it’s used for a very specific cause.”
Those charitable uses of bitcoin, and other cryptocurrencies, are already apparent from a human rights organization that works in Sri Lanka to homeless outreach shelter Sean’s Outpost in the US. Perhaps more famously, dogecoin has become a veritable charity fundraising machine, including the $50,000 Doge4Water campaign.
Image problem
More generally, the Bitcoin Society is devoted to challenging what Kenahan calls “misinformation” in reporting on bitcoin and to improving perceptions of bitcoin.
“One of the biggest issues with bitcoin, and one of the things that hindering the development of our community, is we have this fundamental image problem that oftentimes stems from misinformation or slanderous articles,” he argued.
Future plans
As part of that challenge, the Bitcoin Society is planning a number of projects over the next year, including a new website called bitcoincourses.org, which will help to educate people about bitcoin, and a textbook buy-back scheme for US students.
“Instead of selling your textbook back to the bookstore … and getting grossly underpaid,” he said, “what we would do is redeem that textbook for bitcoin. That provides a low-risk – it’s money you’ve already spent – way to get involved into a community that has more and more legitimacy every day.” Currently, Kenahan has big plans for expanding the Bitcoin Society team and is recruiting representatives from his alma mater Washington University.
“We’re going to be set up in Shanghai, New York, India, San Francisco, Los Angeles and Chicago,” he said.
For this self-funded bitcoin champion – Kenahan said he previously traded in the bitcoin markets – 2014 is proving to be a very exciting year indeed.
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28 May
0
Bitcoin backers work to make it mainstream
When Bitcoin emerged five years ago, it was the payment system many
geeks and enthusiasts had dreamed of: an international, decentralized,
anonymous, and transparent virtual currency that could potentially
replace inefficient traditional ones.
geeks and enthusiasts had dreamed of: an international, decentralized,
anonymous, and transparent virtual currency that could potentially
replace inefficient traditional ones.
(Forbes) As investor Andy Kessler recently wrote in
the Wall Street Journal, Bitcoin participation requires “a certain
faith in the benevolence of strangers.” But instead, the general public
is ambivalent at best about the virtual currency, while
many Bitcoin-related startups fight an uphill battle to convince the
world that it is at least comparable to its established counterparts, if
not better. Some retailers are pro-Bitcoin as well. Overstock.com and
TigerDirect now accept it as payment.
the Wall Street Journal, Bitcoin participation requires “a certain
faith in the benevolence of strangers.” But instead, the general public
is ambivalent at best about the virtual currency, while
many Bitcoin-related startups fight an uphill battle to convince the
world that it is at least comparable to its established counterparts, if
not better. Some retailers are pro-Bitcoin as well. Overstock.com and
TigerDirect now accept it as payment.
And three weeks ago, Cameron and Tyler Winklevoss, famous for having been portrayed in the movie The Social Network, disclosed that they would list a Bitcoin exchange-traded fund on the Nasdaq. The Winklevoss Bitcoin Trust aims to make investing in bitcoins as easy as buying shares of a public company.
The Winklevoss twins, who have themselves been Bitcoin investors for
some time, are also bullish on the future of the digital currency and
believe there should be easier ways to invest in it. They established
their fund for people who are eager to invest in the currency, but who
don’t want to actually own bitcoins. Their first-of-its-kind
exchange-traded fund can be bought and sold on the public markets like a
stock or an index fund. Previously, people interested in trading
bitcoins as an asset class had to store the currency themselves and take
on the risk that goes with that. The brothers were recently quoted
saying their business will remove “the friction of buying…while offering
similar investment attributes to direct ownership”.
some time, are also bullish on the future of the digital currency and
believe there should be easier ways to invest in it. They established
their fund for people who are eager to invest in the currency, but who
don’t want to actually own bitcoins. Their first-of-its-kind
exchange-traded fund can be bought and sold on the public markets like a
stock or an index fund. Previously, people interested in trading
bitcoins as an asset class had to store the currency themselves and take
on the risk that goes with that. The brothers were recently quoted
saying their business will remove “the friction of buying…while offering
similar investment attributes to direct ownership”.
Whether they rally Bitcoin adoption or not, they certainly remove some
longstanding obstacles to its viability as a consumer product. It’s
likely that in the coming months new services will continue to emerge
that aim to make Bitcoin mainstream.
longstanding obstacles to its viability as a consumer product. It’s
likely that in the coming months new services will continue to emerge
that aim to make Bitcoin mainstream.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
28 May
0
Andreessen sees bitcoin as the ‘big breakthrough’
Marc Andreessen, the tech entrepreneur who rose to fame as one of the founders of Netscape, takes the latter view, going as far as to say that in 20 years we will be talking about bitcoin the way we now talk about the Internet.
In a candid interview in the Washington Post, Andreessen shrugs off the prevalent definition of bitcoin as a digital currency. “It’s a much deeper concept than currency. It’s the idea of distributed trust,” he says.
Andreessen says that had the concept of bitcoin been hatched 20 years ago, it would have been built into the browser. He views it as a foundation with potentially “hundreds or thousands of applications and companies that could get built on top.”
What type of applications or companies? “Digital stocks. Digital equities. Digital fundraising for companies. Digital bonds. Digital contracts, digital keys, digital title, who owns what–digital title to your house, to your car,” he says.
Andreessen argues that it has the potential to actually be a safer form of ecommerce than the credit card-based system that is currently in place.
“It doesn’t make sense online to have a payment mechanism that requires you to hand over your credentials to make a payment,” Andreessen says, “That’s just an invitation to fraud and identity theft. It’s just stupid.“
Instead, Andreessen argues, ecommerce should have been built upon a distributed trust type system like what bitcoin offers.
“But we didn’t have the better way of doing it,” he says. “So we didn’t know what else to do, and now we have the better way of doing it. Now, it’s going to take time.“
Open your free digital wallet here to store your cryptocurrencies in a safe place.
27 May
0
Bitcoin transaction volume soon to surpass PayPal
Bitcoin transactions are on the rise, so much so that the digital currency is now on pace to surpass the e-commerce giant eBay’s flagship service PayPal in terms of the number of US dollar transactions in the near future.
Image Credit: screenmediadaily
According to the International Business Times, the California-based hedge fund, Laureate Trust, believes that bitcoin is soon to become the premier monetary vehicle in how people make transactions to one another no matter where they are in the world. The firm notes that as the daily dollar amount of bitcoin transactions now exceed $300 million, the digital currency is quickly making its way towards an increased rate of adoption.
CEO of Laureate Trust, Peter Tasca, explains:
“Whenever you have an instrument that trades over 300 million US dollars a day, it must be recognized; the digital currency works, bitcoin has greater volume transactions than Western Union and we anticipate it will overtake PayPal later this year.” According to Statistic Brain, PayPal processes just $315.3 million in transactions everyday, just slightly above the dollar amount of bitcoin’s daily transactions despite the digital currency still remaining at a relatively low percentage rate of consumer and merchant adoption.
The developer of the first biometrically protected bitcoin payment card, remains heavily leveraged in respect to bitcoin adoption; however, the company’s CEO, Chaya Hendrick, says that bitcoin’s sheer transaction volume will continue to rise at a staggering rate:
“In the next one or two years, Bitcoin can surpass the dollar transaction volumes of other established payment companies including Discover, and even American Express, MasterCard, and Visa.” While both Laureate and Hendrick see the number of bitcoin transactions climbing, Laureate, who currently manages a $5 billion hedge fund, predicts that along with increased volumes will come an increase in price, which he expects to be somewhere in the 50% range.
Increased Adoption
Meanwhile, SecondMarket CEO Barry Silbert, recently explained at the Core Club hosted forum in New York City that bitcoin currently remains in the “early majority” stage in which he refers to as the “venture capital stage”. However, the CEO and Bitcoin Investment Trust (BIT) founder says that “we’re probably just a few months away from Wall Street banks starting to trade bitcoin, starting to invest in bitcoin, and starting to create investment products for bitcoin.”
While bitcoin becomes an increasing threat to existing payment processors, in an interview with EcommerceBytes, CEO, John Donahoe, reffered to the digital currency as an exciting, new and emerging technology. “We think Bitcoin will play a very important role in the future. Exactly how that plays out, and how we can best take advantage of it and enable it with PayPal, that’s something we’re actively considering. It’s on our radar screen,” he said.
Open your free digital wallet here to store your cryptocurrencies in a safe place.