Institute
of Economic Affairs says governments should allow competition on a
level playing field between all alternative forms of money.
1 Jul
5
Deloitte: media ‘distracting’ from Bitcoin’s disruptive potential
A new report by Deloitte University Press says bitcoin has great potential to disrupt payments and other industries, but that the media may be “distracting” governments and businesses from the technology’s advantages.
(CoinDesk) The report, titled ‘Bitcoin: Fact. Fiction. Future.’ and authored by Tiffany Wan and Max Hoblitzell, points out that the media tends to focus on bitcoin’s volatility, government crackdowns and exchange meltdowns instead of “its potential long-term significance as a disruptive new money technology”. In addition, Deloitte UP sees potential for bitcoin in fields that are often overlooked even by proponents of the digital currency:
“Bitcoin is more than just a new way to make purchases. It is a protocol for exchanging value over the Internet without an intermediary. Much has been written about the payment applications of bitcoin, including remittances, micropayments, and donations. However, bitcoin could soon disrupt other systems that rely on intermediaries, including transfer of property, execution of contracts, and identity management.”
Bitcoin evolution and new use cases
The report argues that new use cases will emerge as bitcoin continues to evolve, opening up a new range of opportunities, along with new challenges for governments and businesses. Bitcoin, it says, has the potential to change the way governments regulate the market and enforce the law, while companies could continue to innovate and eventually change the way we conduct business and think about work.
“The sooner the public and private sectors understand the potential of this new technology, the better prepared they will be to mitigate its challenges and realise the benefits of bitcoin and other similar virtual currencies,” the authors concluded.
In the report, Deloitte UP explains how bitcoin, via cryptography, is used to create an open but securely authenticated
system, and why it has to deal with less overhead than the traditional payments system.
system, and why it has to deal with less overhead than the traditional payments system.
However, in addition to this general optimism, a number of fairly serious challenges facing bitcoin are also mentioned.
Speculation and regulation
Deloitte UP lists volatility, regulatory uncertainty, exchange security, transaction volume and ease of use as its biggest bitcoin
caveats. Speculators rank high on the list, adding to the volatility and creating the impression of a get-rich-quick scheme. Thus, they introduce more reluctance on the part of everyday investors. The regulatory environment still leaves much to be desired. Like speculation, regulatory moves have a big impact on the price, creating even more volatility.
caveats. Speculators rank high on the list, adding to the volatility and creating the impression of a get-rich-quick scheme. Thus, they introduce more reluctance on the part of everyday investors. The regulatory environment still leaves much to be desired. Like speculation, regulatory moves have a big impact on the price, creating even more volatility.
“As governments begin to issue consistent guidance on bitcoin, businesses may become more willing to accept it as a form of payment,” the report says.
Security and ease of use are both seen as stumbling blocks for the emerging technology, and the authors clearly state that the system needs to be vastly improved to make bitcoin truly practical for the average consumer.
The conclusion is simple: mainstream users are unlikely to use bitcoin until wallet services develop more user-friendly and secure storage techniques. Cold (offline) storage does little to encourage users and, furthermore, goes against the basic principle behind digital currencies.
Another factor weighing down bitcoin is the relatively low transaction volume of about 60,000 transactions per day, which pales in comparison to Visa’s 150 million daily transactions. The bitcoin network would have to evolve and grow to accommodate mainstream transaction volumes, raising questions about bandwidth, storage and power efficiency.
More than money
However, unlike Visa and other credit card companies, the bitcoin block chain can be used for a range of different purposes.
Deloitte UP examines bitcoin as a payments system and as a way of transferring value across the globe at much lower fees than traditional systems. Bitcoin could thus disrupt the remittance market, valued at $514bn in 2012, according to the report.
This excerpt neatly sums up bitcoin’s benefits in payments:
“Today, if someone buys a donut with a credit card, the merchant pays an interchange fee to the credit card issuer. This interchange fee is usually a small flat amount (10-20 cents) plus a percentage of 1-3 percent. For a low-margin good like a donut, a 10- to 20-cent flat fee can approach 100 percent of the cost of goods. This interchange fee is often passed on to the customer. Using bitcoin, the transaction fee could be lowered to as little as 1 percent. This could ultimately evolve into a new payment system for credit card companies and banks.”
New use cases
In addition to remittances and payments, the authors say the bitcoin protocol could be used to simplify complex asset transfers, ranging from cars to securities. Using a frictionless system to transfer assets, backed by a public ledger, could eliminate the need for brokers, lawyers, notaries and similar services. Bitcoin could also be used for identity management and execution of
various contracts. Using the bitcoin protocol to manage identities would practically eliminate the possibility of forging identification documents and it would help put confidence artists out of work. A network operated by the government, a contractor or any other entity could verify anyone’s identity simply by scanning a bitcoin key.
various contracts. Using the bitcoin protocol to manage identities would practically eliminate the possibility of forging identification documents and it would help put confidence artists out of work. A network operated by the government, a contractor or any other entity could verify anyone’s identity simply by scanning a bitcoin key.
“This system, based on cryptography instead of paper documents, would simultaneously increase mobility and security. If bitcoin can be used for travel documents, it could also be used for other forms of identity management like social security numbers, tax identification numbers, or even driver’s licenses,” says the report.
Another offshoot of the idea is the use of block chain technology to create and execute contracts. Traditional contracts could be replaced by digital contracts, essentially lines of code that self-execute when a triggering event occurs.
This could pave the way to new financial instruments, reduce legal fees, introduce more transparency into the financial industry and eliminate some of the paperwork that in practically every industry.
Vitalik Buterin’s Ethereum is mentioned as a new venture that combines registry and escrow functionality to execute the conditions of a contract automatically.
As for the future of bitcoin, Deloitte UP does not offer a clear conclusion. It outlines four possible scenarios, but indicates there are simply too many factors at play to pick any one of them.
About the publisher
Deloitte University Press – an imprint of Deloitte Development LLC – publishes original articles, reports and periodicals that aim to provide insights for businesses, the public sector and NGOs. It draws upon research and experience from throughout the Deloitte professional services organisation, and from co-authors in academia and business.
Newspapers image via Shutterstock
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27 Jun
0
Major Italian newspaper il Giornale accepting Bitcoin for digital subscriptions
(NEWSBTC) A major Italian newspaper outlet is apparently now accepting bitcoin
for digital subscriptions, we’re learning from a reader email this
morning. The bitcoin logo is boldly visible on il Giornale‘s digital subscriptions page [link], where nearby it says, “The Journal is the first newspaper in Italy and in Europe who accepts payments in Bitcoin.”
for digital subscriptions, we’re learning from a reader email this
morning. The bitcoin logo is boldly visible on il Giornale‘s digital subscriptions page [link], where nearby it says, “The Journal is the first newspaper in Italy and in Europe who accepts payments in Bitcoin.”
The outlet is one of the top 20 daily papers in Italy, with a last reported circulation number of 678,000 readers in 2012.
il Giornale‘s digital subscriptions allow readers to view
all news categories and articles in PDF files optimized for Android
smartphones, iPads, and other tablet devices.
all news categories and articles in PDF files optimized for Android
smartphones, iPads, and other tablet devices.
The cost? 0.42 cents per day with an annual subscription.
Despite the fact that il Giornale may be the first major newspaper in Italy and Europe to accept bitcoin, they aren’t the first in the world.
Here in the United States, the Chicago Sun-Times announced they would be accepting bitcoin payments for subscriptions at the start of April of this year in a move designed “to keep the Sun-Times current and evolving with changing technology.”
Despite the news, many in the community weren’t exactly surprised,
given the paper’s previous interest in the digital currency. In early
February, the paper put up a bitcoin paywall as a test of how users
would interact with using bitcoin (users had the option of donating to a
non-profit). The results were overwhelmingly positive, with 713 donors.
given the paper’s previous interest in the digital currency. In early
February, the paper put up a bitcoin paywall as a test of how users
would interact with using bitcoin (users had the option of donating to a
non-profit). The results were overwhelmingly positive, with 713 donors.
While we haven’t exactly seen widespread adoption of bitcoin for
digital news subscriptions, it’s nice to see it getting a start in Italy.
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24 Jun
0
Family to travel across the US, apending only Bitcoin
(CoinDesk) John Bush and Catherine Bleish began a road trip across the US with
their family of four this week, during which they will only spend
bitcoin.
their family of four this week, during which they will only spend
bitcoin.
Beginning in San Marcos, Texas, they drove into
Washington on Friday, the first stop on the “Uncoinventional Living
Tour”, for the Bitcoin in the Beltway conference.
Washington on Friday, the first stop on the “Uncoinventional Living
Tour”, for the Bitcoin in the Beltway conference.
The self-dubbed Blush family will drive for four weeks and 4,400 miles, also stopping in Lancaster, New Hampshire for the 11th
annual Porcupine Freedom Festival and then to Kansas City, Missouri –
Bleish’s hometown – over the Independence Day holiday before returning
back to Texas.
annual Porcupine Freedom Festival and then to Kansas City, Missouri –
Bleish’s hometown – over the Independence Day holiday before returning
back to Texas.
They will shoot five episodes of their reality show “Sovereign Living” during their journey.
Fighting a different way
Bush
and Bleish are both grassroots activists that spent years fighting the
political system in the US. Each helped start local political action
committes that focused on constitutional activism, civil liberties and
anti-police state causes in their hometowns of Austin, Texas and Kansas
City, respectively.
and Bleish are both grassroots activists that spent years fighting the
political system in the US. Each helped start local political action
committes that focused on constitutional activism, civil liberties and
anti-police state causes in their hometowns of Austin, Texas and Kansas
City, respectively.
Deciding to build a family brought them to the
realisation that they needed to change their lifestyle choices – opting
instead to look for ways of being self-sufficient and building
communities separate from government influence. Bush told CoinDesk:
realisation that they needed to change their lifestyle choices – opting
instead to look for ways of being self-sufficient and building
communities separate from government influence. Bush told CoinDesk:
“We
started to think that if we really want to change the world to create a
more free society, the first thing we can do is to change the way we
live and start to live more free ourselves, and stop participating in
centralised or coercive institutions … Both of us began to realise that a
lot of work we were doing wasn’t making us more free. In fact, it was
just exhausting us and spending all our energy and our money and our
time.”
The Blush family farm
In aiming to get
off the grid, the family moved just outside of Austin, to start a farm
on which it produces its own food, provides its own source of water and
harvests its own alternative energy.
off the grid, the family moved just outside of Austin, to start a farm
on which it produces its own food, provides its own source of water and
harvests its own alternative energy.
For the vision of their
lifestyle to be realised, they’ve set goals: to produce 50% of their own
food, store 50% of their own water, and reduce their dependency on the
central energy grid by 50%.
lifestyle to be realised, they’ve set goals: to produce 50% of their own
food, store 50% of their own water, and reduce their dependency on the
central energy grid by 50%.
“That’s what the show’s all about,”
said Bush. “Trying to document and educate people about the values of
living a voluntary, natural life.”
said Bush. “Trying to document and educate people about the values of
living a voluntary, natural life.”
Their show intends to document
their lives as they learn each day from their lifestyle, their
communities and themselves, as well as teach others how everyone can be
self-reliant and free from government influence – without fighting.
After they’ve wrapped filming for episodes five and six of “Sovereign
Living” they hope to be able to share it with the world through a media
streaming service like Netflix or Hulu.
their lives as they learn each day from their lifestyle, their
communities and themselves, as well as teach others how everyone can be
self-reliant and free from government influence – without fighting.
After they’ve wrapped filming for episodes five and six of “Sovereign
Living” they hope to be able to share it with the world through a media
streaming service like Netflix or Hulu.
Planning ahead
Bleish
mentioned that this is the first time in their bitcoin experience where
they’ve had enough tools and resources to live on bitcoin alone, citing
platforms such as Gyft and eGifter, as well as the recent news by Expedia. Nevertheless, she emphasised the amount of effort it takes to plan a bitcoin-only itinerary:
mentioned that this is the first time in their bitcoin experience where
they’ve had enough tools and resources to live on bitcoin alone, citing
platforms such as Gyft and eGifter, as well as the recent news by Expedia. Nevertheless, she emphasised the amount of effort it takes to plan a bitcoin-only itinerary:
“It’s
hard, it’s taken a lot of pre-planning. I had to look at every single
stop along the way and see what gas stations they had to make sure that
we were buying the appropriate amount of gift cards for each gas
station.”
For example, she explained that driving to
the northeast of the country, she found Exonn gas stations at each stop,
but that on the drive back home there weren’t any – but there were BP
stations.
the northeast of the country, she found Exonn gas stations at each stop,
but that on the drive back home there weren’t any – but there were BP
stations.
Despite the need to “really be on top of things” she
added: “I want the world to know that it is possible to travel the
country using bitcoin only. And it’s not only possible but you can do it
comfortably and take care of a family of four along the way.”
added: “I want the world to know that it is possible to travel the
country using bitcoin only. And it’s not only possible but you can do it
comfortably and take care of a family of four along the way.”
For the full itinerary and updates on the Blush family’s trip you can read their blog.
Image via “Coinboard“
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23 Jun
0
Education to consider for the Bitcoin user
(CoinTelegraph) This month, the number of educational institutions welcoming students who wish to pay using digital currency has increased substantially. This comes as no surprise, however, since the current academic year just ended, registration is opening up for the fall semester.
The King’s College, NYC, US
One of the leading institutions in the United States – The King’s College announced that it will be welcoming students who want to pay using Bitcoin.
The King’s College is a Christian liberal arts college founded in 1938 by Percy Crawford, located in Lower Manhattan, New York.
Now with help of New York’s Coin.co it becomes the first accredited
college in the US to accept digital currency. Dr. Gregory Alan
Thornbury, President of The King’s College stated:
“The King’s College seeks to transform society by preparing students
for careers in which they help to shape and eventually to lead strategic
public and private institutions. Allowing Bitcoin to be used to pay for
a King’s education decreases our costs while simultaneously allowing
our students to be a part of this exciting new technology.”
Team Treehouse
On Thursday June 12, a famous US-based online education provider – Team Treehouse – officially announced that it will be accepting Bitcoin via Coinbase as one of a payment options. The company’s press release stated:
“As one of the fastest growing payment methods, Bitcoin will give
more people across the world the opportunity to learn with Treehouse.”
Treehouse is a place for people who want to learn how to coup with HTML or CSS, make iPhone apps, start their own business.
University of Nicosia, Cyprus
Once again we mention the University of Nicosia,
which was the first to accept Bitcoin for payment of tuition and other
fees. Dr. Christos Vlachos, Chief Financial Officer for University of Nicosia stated:
“Digital currency will create more efficient services and will serve
as a mechanism for spreading financial services to under-banked regions
of the world. In this light, we consider it appropriate that we
implement digital currency as a method of payment across all our
institutions in all cities and countries of our operations.”
Anyone who wants to advance their education here will probably find a
an area of interest they’re looking for – University of Nicosia offer
schools of business, education, humanity, social science, law,
engineering and arts.
A big advantage of the University of Nicosia is that it is accepting
Bitcoin throughout their whole University network, including affiliated
institutions in London, Cyprus, Greece, Romania and others.
University of Cumbria, UK
In the beginning of the year, the University of Cumbria in the United Kingdom also announced that it will accept Bitcoin for the payment of fees. The founder and director of IFLAS, Professor Jem Bendell, stated:
“We believe in learning by doing, and so to help inform our courses
on complementary currencies, we are trialling the acceptance of them.
The internal discussions about currency and payment innovation and the
practical implications for different departments have been insightful.”
The acceptance of Bitcoin is limited to the two programs only – Certificate of Achievement in Sustainable Exchange and Postgraduate Certificate in Sustainable Leadership. Both courses are already in progress as a trial though it shouldn’t be the last one as “the university will learn from this trial and develop its awareness of innovations in complementary currencies and payment technology.”
Language centers
Additionally, there are also various private languages studios all over the world happy to accept digital currency.
A2Z School of English could be the first English as a Second Language (ESL) school in the world to accept digital currency. The announcement that it will adopt Bitcoin as a payment method was published back on November 5, 2013. A2Z School of English was founded in 2006 by James and Luciene Taylor and today has locations in Manchester, London and Dublin, offering various English language classes. BairesClases accept Bitcoin for Spanish classes. You can have face to face lessons in Buenos Aires Argentina or classes over the Internet for students anywhere in the World for anyone from beginner to advanced. Ru-SprachStudio.ch offer Russian courses in Zürich or Zug, Switzerland for Bitcoin. Customers may choose one-on-one private lessons or lessons in groups of 3-4 people. Their teaching approach also uses modern methods to develop your ability to communicate in the Russian language. Cinta Bahasa in Bali, Indonesia, offers Indonesian Language courses to foreigners and they also accept Bitcoin. They have schools in Ubud, Sanur, Kuta, and Canggu, Bali to teach students the language they will need to feel comfortable travelling around in Indonesia. Educational institutions are a major driver in the world’s progress. By embracing cryptocurrencies, these schools and universities are demonstrating their willingness to prepare students for a world with cryptocurrencies and a better future.
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21 Jun
0
Swiss regulators give green light for Bitcoin ATM Network
(CoinDesk) The Swiss financial regulator has given permission for bitcoin ATM operator SBEX to launch a network of machines in the country. The news comes in the wake of a report indicating that the authority had shut down a different operator just two weeks ago.
Jumping through regulatory hoops
SBEX, which currently operates one ATM in Geneva, can now deploy further machines because it has been accepted as a member of a non-profit organisation that is regulated by FINMA, the Swiss Financial Market Supervisory Authority. The non-profit is called ARIF, the Association Romande des Intermédiaires Financiers, and is considered a self-regulatory body (OAR) in Switzerland. Now, with membership in hand, SBEX has successfully applied for a money transmitter licence, fulfilling the regulatory requirements to operate an ATM network.
CoinDesk has seen a copy of a letter from ARIF to the operator, dated 17th June, that sets out the regulator’s stance on bitcoin ATM operators. According to the letter, operators must join an OAR, but do not require a banking licence. It also restated that bitcoin in Switzerland is treated as a means of payment, not a good or a service. SBEX co-founder Mathieu Buffenoir said:
“We finally got clearance from ARIF, who were asking FINMA many questions about how they should deal with us. [The clarification from ARIF] is what we were expecting.”
Cancelled ATM launch
Two weeks ago, a competing ATM operator called Bitcoin Suisse AG cancelled the launch of an ATM in Zurich, claiming that FINMA had requested a delay while the regulator clarified “legal questions”. This prompted speculation that Swiss authorities were clamping down on bitcoin ATMs.
However, according to Buffenoir, who has operated a machine in Geneva since February, running a single bitcoin ATM poses no special regulatory difficulties and is not regulated by FINMA.
This does come with the proviso that the business must stay within certain limits, such as completing fewer than two million transactions a year, Buffenoir said, adding:
“I don’t really know why [Bitcoin Suisse AG] made so much noise [about its ATM]. Maybe they wanted to get themselves known or they want things to move quicker.”
Bitcoin Association Switzerland president Luzius Meisser said the clarified rules were in line with the bitcoin community’s expectations, calling it “the most reasonable” interpretation of Swiss law. He explained the confusion over Bitcoin Suisse’s suspended launch:
“I think SBEX fulfilled all the regulatory requirements before Bitcoin Suisse did, so they got the approval first.”
Bitcoin Suisse chief executive Niklas Nikolasjen said his firm was working on obtaining the necessary regulatory approvals for their ATM. He said the media had overstated his firm’s cancelled ATM launch and that it had been consistently working to obtain regulatory approval.
“It is now clear to everyone in the industry that the regulatory authorities require certain steps to be undertaken by companies who professionally deal with digital finance. BTCS is naturally following these requests as well,” he said.
Expansion plans
Now that SBEX has cleared Swiss regulatory hurdles, Buffenoir says the company will carry out its plan to set up a web brokerage and install nine ATMs before the year is up. Buffenoir said SBEX has already placed orders for the machines with the manufacturer, Canadian startup BitAccess.
Additionally, SBEX has joined a new consortium currently lobbying the Swiss government to create an OAR dedicated to cryptocurrencies and to obtain a clearer regulatory framework from FINMA. The consortium already counts Bitcoin Suisse and Ethereum Switzerland among its members, Buffenoir said. Switzerland is being closely watched by the cryptocurrency community, as its executive body, the Federal Council, is due to release a comprehensive report on bitcoin’s impact on the country’s financial system later this year. Swiss lawmakers also moved, in December, to obtain recognition for bitcoin as a foreign currency.
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20 Jun
0
McShibe! McDonalds Dogecoin burger approved for judging
Back in May, the Dogecoin community decided to take advantage of a competition McDonalds was hosting and tried to add a Dogecoin themed burger to the McDonalds menu. The competition is simple: design a burger online, pick the ingredients, and name it. The top voted burgers would be selected for judging and the winning burgers would sold in McDonalds restaurants for a week.
Early Troubles
Initially, multiple variations of the “Dogecoin” burger were submitted for entry. Examples include the McDogecoin, the McDoge, and the Doge Burger. Despite having been voted to the top, McDonalds had to remove most of these entries due to the name. In hindsight, this decision makes a lot of sense. Some customers (especially those who aren’t aware of the Doge meme) would find it very strange if McDonalds started selling “Doge” burgers all of a sudden.
Redemption
Of all the entries, the McShibe burger was the most tame and an announcement earlier today disclosed that McDonalds had selected the burger and invited the contestant to the kitchen.
Details
The judging will be held on June 29th and 11 other finalists will be invited. Of these 11, judges will select the top 5. These top 5 burgers will be made available on the UK McDonalds menu for a period of one week each.
Conclusion
Well — I guess we can add this to the eternal list of amazing things Dogecoin has done. It remains to be seen whether or not the judges will actually select the burger (or how good it actually tastes). Hopefully one of the judges is secretly a Shibe.
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19 Jun
0
Privatise the pound and replace it with bitcoin, says free-market thinktank
 |
| A man enters a bitcoin conference in New York. Photograph: Mark Lennihan/AP |
(TheGuardian) UK should privatise the pound and replace it with a
cryptocurrency like bitcoin, according to a paper published Wednesday by
the free-market Institute of Economic Affairs.
cryptocurrency like bitcoin, according to a paper published Wednesday by
the free-market Institute of Economic Affairs.
Kevin Dowd, a
professor of finance and economics at Durham University, says that
although bitcoin isn’t the first example of private money, it is the
first that governments can’t shut down. Therefore, he says, authorities
should admit that it’s here to stay, and allow competition on a level
playing field between all alternative forms of money.
professor of finance and economics at Durham University, says that
although bitcoin isn’t the first example of private money, it is the
first that governments can’t shut down. Therefore, he says, authorities
should admit that it’s here to stay, and allow competition on a level
playing field between all alternative forms of money.
That might
include allowing taxes to be payed in cryptocurrencies such as bitcoin
and dogecoin, or even fully privatising the pound, selling off the right
to mint the currency to the highest bidder.
include allowing taxes to be payed in cryptocurrencies such as bitcoin
and dogecoin, or even fully privatising the pound, selling off the right
to mint the currency to the highest bidder.
“Let’s suppose that
bitcoin became a very prominent currency,” Dowd told the Guardian. “[To
ensure a level playing field], the government itself would accept
bitcoin in tax payments. So, in effect, the government should not be
favouring its own currency, or any particular currency, through any of
its unique powers. Nor have regulations against them.
bitcoin became a very prominent currency,” Dowd told the Guardian. “[To
ensure a level playing field], the government itself would accept
bitcoin in tax payments. So, in effect, the government should not be
favouring its own currency, or any particular currency, through any of
its unique powers. Nor have regulations against them.
“The natural
analogy is with some of the old, bad, monopolies like British Gas or
British Telecom. Telecom is a very good example: for a long time, we had
a government monopoly, which stifled innovation, and the service was
poor. Once that got opened up, competition opened, new innovation
prospered, and we got all sorts of innovation that we couldn’t possibly
anticipate, and we’re a lot better off for it.”
analogy is with some of the old, bad, monopolies like British Gas or
British Telecom. Telecom is a very good example: for a long time, we had
a government monopoly, which stifled innovation, and the service was
poor. Once that got opened up, competition opened, new innovation
prospered, and we got all sorts of innovation that we couldn’t possibly
anticipate, and we’re a lot better off for it.”
Dowd places
bitcoin at the pinnacle of a historical trend of government crackdowns
on attempts to create private money. The Liberty Dollar, a physical,
gold-based private mint, and e-gold, a digital, gold-based e-currency,
both ended up with their creators and proprietors in court, the former
on charges of counterfeiting, and the latter over allegations of money
laundering.
bitcoin at the pinnacle of a historical trend of government crackdowns
on attempts to create private money. The Liberty Dollar, a physical,
gold-based private mint, and e-gold, a digital, gold-based e-currency,
both ended up with their creators and proprietors in court, the former
on charges of counterfeiting, and the latter over allegations of money
laundering.
But Dowd argues the charges were
politically-motivated protectionism. “Counterfeit 101 is that you try
make the fake look like the real thing,” he says, “and the whole
business model was predicated on saying that [the Liberty Dollar] is
superior to US currency.”
politically-motivated protectionism. “Counterfeit 101 is that you try
make the fake look like the real thing,” he says, “and the whole
business model was predicated on saying that [the Liberty Dollar] is
superior to US currency.”
Because Bitcoin is decentralised, it’s
significantly harder to crack down on using the courts – “you could shut
the whole web down, but they can’t do that,” Dowd adds – and so
governments can’t stop its rise. If it does become popular, they will
have to deal with it some other way.
significantly harder to crack down on using the courts – “you could shut
the whole web down, but they can’t do that,” Dowd adds – and so
governments can’t stop its rise. If it does become popular, they will
have to deal with it some other way.
There’s a lot standing in the
way of cryptocurrencies before they reach that success, however. For
one thing, Dowd writes, “to displace existing state currency they not
only have to perform the basic functions of money at least as well as
state money, they probably also need qualities that transcend the way in
which state money works.”
way of cryptocurrencies before they reach that success, however. For
one thing, Dowd writes, “to displace existing state currency they not
only have to perform the basic functions of money at least as well as
state money, they probably also need qualities that transcend the way in
which state money works.”
For some advocates of bitcoin, as well
as for Dowd himself, those qualities come in the form of protection
from inflation: the cryptocurrency will only ever have 21m coins
created, ensuring that it will always “hold its value” (though also,
critics claim, rendering the bitcoin economy prone to deflationary
slumps).
as for Dowd himself, those qualities come in the form of protection
from inflation: the cryptocurrency will only ever have 21m coins
created, ensuring that it will always “hold its value” (though also,
critics claim, rendering the bitcoin economy prone to deflationary
slumps).
For others, they come from the purely digital nature of the currency. Venture capitalist Marc Andreessen describes it
as the financial equivalent of the internet, saying “The internet was a
new way to transmit data. Bitcoin’s a new way to transmit money. It’s
going to take a long time. The good news it’s a big opportunity. Money
is a very big deal, and so if you can build a new way to deal with
money, it’s very important and valuable. It just takes time.”
as the financial equivalent of the internet, saying “The internet was a
new way to transmit data. Bitcoin’s a new way to transmit money. It’s
going to take a long time. The good news it’s a big opportunity. Money
is a very big deal, and so if you can build a new way to deal with
money, it’s very important and valuable. It just takes time.”
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14 Jun
0
Estonia bank to study benefits of integrating Bitcoin technology
![etukuva[1]](http://bitcoinexaminer.org/wp-content/uploads/2014/03/etukuva1.png)
(CoinDesk) Estonia-based bank LHV has announced a new project that will explore
the legal framework and potential uses of bitcoin’s block chain
technology in banking so it might develop bank services for bitcoin and
other digital currencies.
“We are interested in the technological
side of digital currencies as we hope it could make bank services more
simple and efficient,” Priit Rum, head of communications at LHV, told
CoinDesk.
The project manager will examine all digital currencies, not limiting itself to bitcoin.
For
now, the bank won’t engage in trading bitcoin, Rum said, but more
likely, could develop its payments system using block chain technology.
The company claims to be the first bank in the world to implement such a program, stating:
“We
have been aware of crypto currencies for some time now […] we decided
last month that establishing a side project to explore the block chain
technology and analyse possibilities of cryptocurrencies would be a good
opportunity to stay with the innovation.”
Regulatory uncertainty remains
While the news of this action by a major bank is perhaps encouraging, in Estonia, bitcoin is tangled in regulatory uncertainty.
Earlier this year, the country’s central bank issued a warning
against bitcoin and digital currencies calling it a Ponzi scheme,
saying “virtual currency schemes are an innovation that [deserve] some
caution”, but that it would continue to monitor their development.
Shortly after, local bitcoin trading site BTC.ee put a halt on trades, coming under pressure from Estonian authorities who challenged the site’s compliance with the Money Laundering and Terrorist Financing Prevention Act.
Said Rum:
“LHV
is a regulated bank and we take all the regulations and guidelines very
seriously […] For us, all the questions about ‘know your customer’ and
concerns of money laundering have to be dealt with before we can really
develop new bank services using new technology.”
Local enthusiasm grows
Estonians have been enthusiastic about bitcoin for some time, despite the regulatory difficulties the domestic ecosystem faces.
The
country’s capital Talinn had a successful week-long bitcoin showcase
last month, during which bitcoin advocates came together to educate
those new to the digital currency and boost its popularity.
For more on the latest developments in the eastern European economy, read our most recent report.
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11 Jun
0
Google joins Yahoo in offering Bitcoin prices
(CoinDesk) Google Finance has launched a bitcoin price tracker, offering market
information across several major fiat currencies as well as access to
breaking news in the digital currency world.
information across several major fiat currencies as well as access to
breaking news in the digital currency world.
Users can access prices in BTC/USD markets, as well as prices in pound sterling, yen, euro, renminbi, Australian dollar and Canadian dollar markets.
The tool also enables review of historical prices dating back to June 2013.
The
Google Finance bitcoin tool enables quick BTC-to-fiat conversions as
well, allowing for calculations across dozens of currencies such as the
Yemeni rial and the Bangladeshi taka.
Google Finance bitcoin tool enables quick BTC-to-fiat conversions as
well, allowing for calculations across dozens of currencies such as the
Yemeni rial and the Bangladeshi taka.
The move comes hot on the heels of the Yahoo! Finance bitcoin price listing. In addition, Bloomberg opted to add bitcoin prices to its terminals in late April.
CoinDesk reached out to Google for comment on the decision, but did not receive an immediate response.
Simple design
The layout in Google Finance is simple, allowing for easy navigation without many bells and whistles.
Users can list multiple fiat currencies against the price of bitcoin, and the tool’s news tracker pegs the timing of news releases with the fluctuations in the market.
The tool bears many similarities to Yahoo! Finance’s tool,
though it utilizes different layout schemes for graphs and news
tickers. However, Yahoo! Finance does not offer bitcoin price
conversions to other currencies.
though it utilizes different layout schemes for graphs and news
tickers. However, Yahoo! Finance does not offer bitcoin price
conversions to other currencies.
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11 Jun
0
Tel Aviv to get first Bitcoin ATM in Middle East
The new machine will allow users to buy and sell their bitcoin at all hours of the day and night without going through bureaucracy.
(Haaretz) The first Bitcoin automatic teller machine in the Middle East will be
launched in Tel Aviv on Wednesday. Bitcoin is a peer-to-peer virtual
currency that allows for transactions between users without any third
party or middle man.
launched in Tel Aviv on Wednesday. Bitcoin is a peer-to-peer virtual
currency that allows for transactions between users without any third
party or middle man.
The
“cash-out capable Bitcoin vending machine,” made by American company
Robocoin, has several security features built in to prevent theft and
fraud that are compliant with anti-money laundering regulations,
according to a press release.
“cash-out capable Bitcoin vending machine,” made by American company
Robocoin, has several security features built in to prevent theft and
fraud that are compliant with anti-money laundering regulations,
according to a press release.
“The
launch of the first Bitcoin ATM in the Middle East will allow any
person with no previous knowledge of bitcoin and how it works to easily
buy and sell bitcoin 24/7 bypassing the bureaucracy of the banks,”
Bitbox CEO Nimrod Gruber said. Bitbox the company bringing the first
Bitcoin ATM in Israel.
launch of the first Bitcoin ATM in the Middle East will allow any
person with no previous knowledge of bitcoin and how it works to easily
buy and sell bitcoin 24/7 bypassing the bureaucracy of the banks,”
Bitbox CEO Nimrod Gruber said. Bitbox the company bringing the first
Bitcoin ATM in Israel.
Until now, all transactions had to either go through a bank or through private trading, which lacked credibility.
According
to Gruber, many people are looking for an easy way to sell or buy their
bitcoin for local currency, and this ATM will allow them to do so.
to Gruber, many people are looking for an easy way to sell or buy their
bitcoin for local currency, and this ATM will allow them to do so.
Foreign
workers, for example, can buy bitcoins in shekels and have their
families withdraw cash in local currency at a bitcoin ATM in their
country.
workers, for example, can buy bitcoins in shekels and have their
families withdraw cash in local currency at a bitcoin ATM in their
country.
The launch takes place Wednesday night at the TOWN-HOUSE TLV hotel, 32 Yavne St. at the corner of Rothschild Blvd.
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