The CoinFront: August 2014

Creative types from just about every field are getting involved in the Bitcoin sphere, from musicians to playwrights to, err, photographers. So it’s only natural that film makers would trickle in as well.

New Yorker Chris Cannucciari is one such film maker, working on a film he’s calling “Invisible Money“.

“One of the main reasons I have for making a film about Bitcoin is because of my experience in Africa,” Cannucciari told The CoinFront. “People there are at the mercy of governments and financial institutions and don’t have very much choice in their future or freedom. When I was in Kenya in 2009, people were texting phone credits to one another and treating the credits like currency. It was a very rudimentary and organic solution for a desperately underserved market.”

Bitcoin In The Third World

The idea of Bitcoin helping those in developing and under-banked nations may be a surprising one. After all, using such advanced technology to serve regions where technology doesn’t yet have as widespread adoption as it does in the developed world seems counter-intuitive.

But despite that, it’s not a new idea.

In fact, a project is already underway to help the under-banked citizens of Dominica adopt Bitcoin by distributing a small amount to all of its 70,000 citizens.

Related: Is The First Bitcoin Nation Becoming A Reality?

Bitcoin is spreading in many other places worldwide as well, and this is exactly what Cannucciari was hoping to see and capture with Invisible Money.

Bitcoin holds the promise of breaking through the old barriers that traditional money has put up. Much like the early internet, Bitcoin is a new platform that could become more than just a digital payment protocol.

The Human Side Of Bitcoin

Cannucciari’s film is far from the first documentary to hit the Bitcoin sphere. Bitcoin in Uganda, The Rise and Rise of Bitcoin, and Bitcoin: The End Of Money As We Know It, to name a few.

Cannucciari has a very specific artistic vision in the creation of his film, which he hopes will help Invisible Money stand out from the rest.

I hope to reveal the human side behind Bitcoin. Most people are still bewildered by the idea of Bitcoin and while there are some brilliant minds behind the technology, there needs to be a human element for the general public to understand the potential Bitcoin is offering. My goal is to incorporate several life stories of people who are either heavily involved with Bitcoin and those stand to benefit from a world which adopts Bitcoin, whether or not they understand the technology.

Cannucciari has been filming since November of 2013, and hopes to gather about a year’s worth of footage before post-production begins.

Invisible Money Wants to Reveal "The Human Side Behind Bitcoin"

SecuraCoin Wants To Make It Easy To Get Into Bitcoin - From The CoinFront

Bitcoin is spreading far and wide, thanks in no small part to the entrepreneurs who are working hard to build the Bitcoin economy.

Companies like Coinbase, QuadrigaCX, CAVIRTEX, and many others have been helping spread merchant adoption and making it easier for those who want bitcoins to get them.

But many of these solutions are geared more toward those who are already tech-savvy. After all, it’s not always an easy, streamlined process to get involved with a Bitcoin exchange. And though merchant adoption services are great, people need a place where they can easily get their hands on Bitcoin in the first place.

It’s this problem that Toronto-based SecuraCoin wants to help solve.

SecuraCoin’s Vision

The company was founded by Ageesen Sri, who had a vision of making Bitcoin more accessible to the average person. This helped him bring on fellow partners Brian Phan and Sina Ghashghaei.

“Our vision is to encourage mainstream adoption of Bitcoin by bridging the gap between the tech world and the current world,” Phan told The CoinFront. “We’re taking a grassroots, bottom-up approach to help regular people understand Bitcoin.”

We noticed few people were integrating Bitcoin into the existing financial infrastructure,” Ghashghaei added. “We want to help people be more open to coming into the Bitcoin world.”

To that end they’ve partnered with Simply Cash, a money service company which offers payday loans, cheque cashing, prepaid Visa cards, and other money services.

Those who are interested in acquiring Bitcoin now have another five places in Toronto where they can acquire them, with a sixth on the way.

Why Simply Cash?

One of SecuraCoin’s collaborators had a relationship with Simply Cash which made it easier to work together, but Simply Cash is by no means the only company through which they want to work.

In fact, plans are already in the works to work with other money service businesses in the Toronto area. The company is building a presence on Canada’s west coast as well, where the rate of merchant adoption outpaces Toronto.

But why not just build an ATM network? After all, many companies have already started such a service in Canada, from BitSent to Bumblebee Exchange.

Related: The CoinFront’s Exclusive Video Interview With Bumblebee Exchange

“ATMs are great, and they’re the closest thing that comes to our business model”, said Phan, “but it’s easier scale with money services.”

And he’s right: an ATM requires far more infrastructure to operate efficiently, not the least of which is the process of actually getting the machines.

But with SecuraCoin’s model, they have everything they need in house.

Canadian Bitcoin Regulations

Canada is one of the many states to release a new set of regulations which specifically apply to Bitcoin related businesses. But SecuraCoin isn’t concerned.

“We’re fully compliant with FINTRAC,” Ghashghaei said. FINTRAC is the Financial Transactions and Reports Analysis Centre, Canada’s financial regulatory body.

This isn’t surprising, as most Canadian Bitcoin businesses knew sooner or later they’d have to comply with FINTRAC rules, and took proactive steps to ensure their business model included it.

Even though SecuraCoin works as a third party through money services businesses, they’ve still registered themselves as a legal money services business to avoid complications.

What’s Next For SecuraCoin?

SecuraCoin isn’t happy with just sitting where they are, though. They’ve got bigger plans ahead.

They plan on developing a branded SecuraCoin wallet which, rather than competing with existing wallet software, is designed to appeal to those who are new to Bitcoin.

“But that’s not the highlight of what SecuraCoin is about”, said Phan. “We’re most excited at the prospect of bringing Bitcoin not only to the rest of Canada, but to the international market as well.”

To discover more about SecuraCoin, visit their website.

SecuraCoin Wants To Make It Easy To Get Into Bitcoin

Friday, 29 August 2014

Genesis Mining Begins Offering Bitcoin Cloud Mining Contracts - From The CoinFront

Bitcoin mining is one of the most competitive niches in the Bitcoin world. Where once users could rake in bitcoins with just a simple laptop, now it takes a much more powerful machine.

As a result, it’s quickly becoming too cost-prohibitive for the average user to get involved in mining. And cloud mining services have popped up to replace that.

Many miners focus on mining altcoins, since the competition for them isn’t as fierce as it is for Bitcoin, and cloud mining services are no different. Genesis Mining is one such company, but they’ve decided to branch out and join the big leagues by offering Bitcoin cloud mining.

Marco Streng, Genesis Mining CEO, made the following statement in a press release

“This allows our clients to manage and optimize their sha256, scrypt and soon X11 hashpower within the same clean and intuitive interface. Going forward, we will add further statistics and analytical tools, so that our clients get the maximum out of their hashpower.

Benefits of Genesis Mining

With so many different cloud mining companies having already been established, why would any user bother with a company with an unproven track record in mining?

“More and more companies turn out to be fake or a ponzi scheme,” Mia Molnar, spokeswoman for Genesis Mining, told The CoinFront. “We are often accused of being one of them, which is understandable, but it still hurts.”

She continued, “We have been around for quite a while, but our service was altcoin cloud mining. There was a huge demand for Bitcoin contracts, so we decided to add it to our portfolio as well. We established partnerships so we can offer a really nice price.”

One of those partnerships is with Spondoolies-Tech, a Bitcoin mining rig manufacturer. CEO Guy Corem had nothing but praise for Genesis Mining, saying “Genesis Mining is one of the leading cloud mining companies and a trustworthy partner of ours.”

Terry Li, Zeus CEO, added “Genesis Mining is one of our biggest clients and proven to be a reliable and trustworthy business partner.”

The Future Of Genesis Mining

Genesis Mining’s new Bitcoin mining service hopes to launch by the end of the day today. They’ll be offering their services at competitive rates, starting at just $2.15 per gigahash.

For a limited time, Genesis mining is offering a discount on its cloud mining services. Visit their website and enter the promo code “Coinfront” to get a 5% discount! But be quick, the offer is only available until the end of the day Saturday!

Genesis Mining Begins Offering Bitcoin Cloud Mining Contracts

This Canadian University Just Started Accepting Bitcoin - From The CoinFront

Simon Fraser University in Vancouver BC has officially begun accepting donations in Bitcoin.

The university’s Bitcoin community, the Simon Fraser Bitcoin Club, announced the details yesterday on their website.

The club managed to raise $6,000 CAD in the first round of donations with the help of Scott Nelson, cofounder of crowdfunding platform Dana.io and Simon Fraser University alumnus.

What Are They Doing With The Bitcoins?

Simon Fraser University plans on funding a project called Destiny Reflection, designed to help vulnerable women in Kolkata, India, find livelihood opportunities.

The university will be sending two health science students, Lauren Shandley and Laurie Macpherson, to Kolkata in order to engage the community on the subject of Bitcoin.

What’s left over the university plans on holding on to, rather than converting it into Canadian dollars.

University and Bitcoin

Simon Fraser University is the first Canadian university to accept Bitcoin donations, though they’re far from the first university to make Bitcoin headlines.

Back in April, the University of Nicosia in Cyprus introduced an online course, “Introduction to Digital Currencies”, to which users can register for free.

On top of that, a number of research studies on the cryptocurrency world have come out of universities, including one on how the Silk Road may have actually reduced the amount of drug-related violence.

And of course, there’s the MIT project, which plans on bringing $100 in Bitcoin to every student at MIT.

Universities are the breeding grounds for the future of most industries and economies, and Bitcoin is no different. As the visibility of Bitcoin continues to grow among university campuses, more and more young people will become excited about Bitcoin and what it has to offer.

And that, of course, is actually good news.

This Canadian University Just Started Accepting Bitcoin

Hal Finney Has Been Cryopreserved - From The CoinFront

Hal Finney, a well-known and respected figure in the field of cryptography and one of the earliest figures in the world of Bitcoin, passed away yesterday morning at the age of 58.

He had been suffering from the ongoing affects of ALS since 2009 when he was first diagnosed.

As part of his beliefs, Hal Finney has been cryopreserved by the Alcor Foundation in the hopes that a method of curing ALS and reviving him would be found in the future.

Hal arrived in Scottsdale, Arizona, where the Alcor Foundation is based, on Tuesday. A statement from the Alcor Foundation’s Max More, PhD, describes the scenario from there.

After administration of drugs to ensure no consciousness, his ventilator was removed. Although the doctors exepcted all breathing to cease within an hour, Hal’s body kept going until shortly before 9:00 am this morning, August 28, 2014.

While this is certainly a sad time for those close to Hal Finney, the process is in accordance with his wishes that he did not want to remain hooked up to a life support machine, and once he lost the ability to communicate he should be allowed to pass away naturally.

Once Hal was pronounced legally dead, “Alcor’s standby team went into action, restoring circulation, ventilation, administering an array of medications, and initiating external cooling.” The cryopreservation process is quite involved.

Surgery is currently underway to enable us to replace Hal’s blood and interstitial fluids with cryoprotectant. Once perfusion is finished we will be able to plunge Hal’s temperature down past the freezing point without any significant ice formation. Once he is down to around -110 degC we will slow cooling and take a couple more days to reach the final storage temperature of -196 degC. After that, Hal will be placed in long-term storage and cared for until the day when repair and revival may be possible.

Remembering Hal

Hal Finney was a video game developer in his earlier years before getting more involved in the cryptography community.

One of his most notable accomplishments was creating the first reusable proof of work system in 2004, years before Bitcoin. And once Bitcoin was born, Hal was the recipient of the first transaction, from sender Satoshi Nakamoto.

Gavin Andresen, another of Satoshi’s early collaborators, posted this simple tweet in Hal’s honour.

Farewell Hal, and thank you.

— Gavin Andresen (@gavinandresen) August 28, 2014

About Alcor

The Alcor Life Extension Foundation is a nonprofit organization which preserves human beings after death.

The idea is that in the future, medical science may advance to the point where the dead may be revived, debilitating diseases like ALS may be cured, and those afflicted by them may return to live normal happy lives.

The organization began accepting Bitcoin donations through BitPay in June of this year.

Hal Finney Has Been Cryopreserved

Thursday, 28 August 2014

DogeTipBot Expands To Twitch - From The CoinFront

The Dogecoin community relies heavily on tipping. It’s tipping that led many people to embrace the Dogecoin community, and allowed them to view cryptocurrency fans as more than the greedy hoarders Bitcoiners are sometimes seen as, rightfully or not.

To facilitate this, Josh Mohland developed the DogeTipBot program, which allows users to send and receive Dogecoin tips with a simple Reddit post, and withdraw them, deposit more funds, and manage them with a simple message to the bot.

DogeTipBot is now expanding, though. The little bot that could has outgrown Reddit, and is moving to a new platform as well: Twitch.

The beta version of the Twitch version of DogeTipBot will launch this weekend.

Twitch was recently purchased by Amazon for a reported $970 million cash. Their platform began accepting Bitcoin earlier in August, and the introduction of DogeTipBot represents another step into the cryptocurrency world.

DogeTipBot Expands To Twitch

North Carolina: The Anti-BitLicence? - From The CoinFront

New York’s proposed BitLicence is controversial, to say the least. And many people are taking it more seriously because they see it as a possible model on which other jurisdictions could build their own regulations.

And while the BitLicence could have far-reaching ramifications, not every jurisdiction is interested in regulating Bitcoin in such a heavy-handed approach as New York is taking.

Case in point: North Carolina.

The North Carolina Commission of Banks (NCCOB), the state’s primary financial regulatory body, is working on its own framework for virtual currency regulation.

Rather than requiring a licence, though, they are treating virtual currency (a term seemingly only ever used by government bodies) as “monetary value” under North Carolina’s Money Transmitters Act.

Under those laws, any entity who takes part in monetary transmission needs to hold a state-issued licence to do so, and must keep their net worth higher than six figures.

Though the NCCOB said they would examine the requirements of a potential licencee on a case-by-case basis, they would at least be required to file a licence application in the same way any money transfer business would.

The new framework they’re proposing, though, is focused more on clarifying existing laws than introducing new ones.

North Carolina’s Bitcoin Ecosystem

This seems to echo the opinions of many Bitcoiners, who believe that while money laundering and fraud in the money transmission business are real threats, the existing protective framework is enough to protect consumers.

This news will certainly be welcome to North Carolina’s Bitcoin community. Coming off the success of the recent Cryptolina conference, things are looking up for the community.

Jurisdictions are lining up on both sides of the argument, with some banning Bitcoin altogether and others taking a more laid back approach. Which side will win in the end?

North Carolina: The Anti-BitLicence?

Coinbase Announces Its Insurance Policy, Nearly A Year Later - From The CoinFront

One of the issues with Bitcoin is security. For users who keep their funds in exchanges or other online storage systems, there’s little recourse from a hack or other security breach.

Customers at Mt. Gox, Flexcoin, and Dogevault learned that the hard way.

But Coinbas has a new way of reassuring its users: insurance.

Insuring Bitcoin

“We’re proud to (sic) publically announce that Coinbase holds insurance against theft or loss of its bitcoin,” the company posted on its official blog.

They report having been insured since November 2013, but are announcing it now “given the recent claims of insurance in the industry”.

Coinbase’s insurance covers losses from “breaches in physical or cyber security, accidental loss, and employee theft”, but specifically does NOT cover user negligence, especially “bitcoin lost or stolen as a result of an individual user’s negligence to maintain secure control over their login credentials.”

In other words, if Coinbase screws up, they’ve got you covered. If you screw up, you’re on your own.

Coinbase is working with the world’s largest insurance company, Aon, and has been insured for an amount “that exceeds the average value of bitcoin we hold in online storage at any given time.

“Our users, of course, won’t be charged for this insurance.”

Given the security issues the Bitcoin community has faced over the last several months, it’s good to see companies taking their own security seriously.

Coinbase Announces Its Insurance Policy, Nearly A Year Later

Amagi Metals' Stephen Macaskill: "The Dollar Is Screwed" - From The CoinFront

Stephen Macaskill, CEO of Amagi Metals, did an AMA interview on Reddit yesterday, during which he revealed some of his feelings toward cryptocurrency.

The company announced last week that it would be accepting cryptocurrency exclusively by the beginning of 2017, and he answered several questions in relation to that.

Questions From The Community

When asked how much of a Bitcoin purchase the company actually keeps in Bitcoin, he revealed that one of the current roadblocks is getting the people from which they order their products to accept cryptocurrency. “We’re pushing hard for our suppliers to accept crypto,” he said. “As soon as that starts happening it will be closer to 90- 100%.”

Macaskill also said “We convert the funds we need to purchase inventory with fiat, keep the profit in BTC,” and that “we also like trading and diversifying into other cryptocurrencies,” which he specified as Dogecoin, Vertcoin, BlackCoin, and “a few others here and there.”

When asked about the BitLicence, he expressed concern with “any kind of government regulation. They mean well, but usually create barriers to entry into industry allowing for monopolies and inefficient service to those industries.”

If there was ever any doubt as to Macaskill’s personal commitment to Bitcoin, he confirmed that about 40% of his personal net worth is held in Bitcoin, though he’s “not sure the exact percentage.”

Confidence In Crypto

Though many companies have begun accepting Bitcoin recently, very few have made the commitment to be crypto-only. A couple of small shops here and there do so, but Amagi is certainly the most high profile business.

But does this confidence come from a belief in the strength of cryptocurrency, or the weakness of fiat currency?

One user asked him if he had any predictions about the US dollar going forward, and Macaskill didn’t mince words with his response: “The dollar is screwed.”

If the US dollar begins to experience hyperinflation, which some believe will happen sooner or later, cryptocurrency will already be in place. While Macaskill believes “there will always be a need for gold as a storage of wealth”, cryptocurrency is a good alternative.

Amagi Metals' Stephen Macaskill: "The Dollar Is Screwed"

Wednesday, 27 August 2014

SilentVault: Silencing The Blockchain? - From The CoinFront

The blockchain is the idea upon which the Bitcoin world rests. A cryptocurrency will have a hard time existing without its own blockchain, and there are all sorts of applications for it, including money transfer, voting, smart contracts, digital rights management, and much more.

So why on Earth would anyone want to silence the blockchain?

SilentVault is doing exactly that, with the idea of providing privacy and security.

How Does It Work?

“You can bring bitcoin in and arrange to spend it back out, any time, anywhere,” Justin Turrell of the SilentVault team said in a press release. “Once you have assets in your SilentVault wallet, you can use it to make person-to-person payments to other SilentVault walletsoffer or accept exchanges for other supported types of assets, or redeem your vouchers.”

The basic idea is that when you transfer funds into SilentVault, you can then transfer them between other SilentVault users without having the transactions show up in the blockchain. “We created SilentVault because privacy and anonymity are important aspects of freedom,” said SilentVault’s operations lead, who goes by Paesean.

Users transfer their Bitcoin or Litecoin into SilentVault’s wallet, and receive “Silent Bitcoin” credits. From there, you can transfer them from wallet to wallet without any record of the transfer having taken place.

Bitcoin Misconceptions

While Bitcoin is often called an anonymous payment method, that’s a common misconception.

Bitcoin is, in fact, pseudonymous. Anyone who knows your wallet number can look at the funds you’ve transferred, and the recipients.

That said, your wallet number is the only identifying factor.

Regardless, some careful research can reveal someone’s wallet number and purchase history. And SilentVault can help solve that problem.

“We’re interested in making a better world with more freedom,” said Paesean. ” We hope you’ll join us.”

SilentVault became active as of August 25th. To discover more about SilentVault, visit their official website.

SilentVault: Silencing The Blockchain?

German Bank Fidor Now Uses Ripple For International Wire Transfers - From The CoinFront

Germany’s Fidor bank has begun using the Ripple network to facilitate international money transfers.

This makes it the first bank in the world to do so, and perhaps the first bank to actually incorporate cryptocurrency into its processes.

Fidor and Ripple announced a partnership back in May, in an effort to bring modern technology into the realm of banking, which is largely built on pre-internet technology. “We can improve the speed of transfers from days to seconds and remove the bulk of the risk in the system that exists today,” Ripple CEO Chris Larsen said. Evidently, it’s taken some time for Ripple and Fidor to integrate their systems with each other.

Wire transfers with Fidor can now be completed in the same day, a marked improvement when compared to the several days it takes most other banks.

Cryptocurrency and Banks!?

It’s unusual to hear of a bank actually looking toward cryptocurrency with anything but disdain. In fact, Bitcoiners have become more skeptical of banks than the average person as a result, though arguably that skepticism was already in place.

Regardless, it’s not the first bank interested in embracing cryptocurrency. LHV, a bank based in Estonia, has hired Asse Sauga, a self-proclaimed “cryptocurrency expert” to help them discover how they can dive into the cryptocurrency world.

Will Fidor’s embracing of cryptocurrency lead to other banks getting in on the trend as well? And would you even trust a central bank with your cryptocurrency?

German Bank Fidor Now Uses Ripple For International Wire Transfers

Ross Ulbricht's Long Road Ahead - From The CoinFront

Ross Ulbricht, alleged to have been the mastermind behind the online black market Silk Road, has a long road ahead of him.

As of August 21st, he’s had new charges filed against him, including narcotics trafficking, “distribution of narcotics by means of the internet”, and “conspiracy to traffic fraudulent identification documents”.

While the first two seem like they would be the same charge, they are nevertheless new charges which must be addressed by Ulbricht and his legal team. He’s already tried once to dismiss the money laundering charges against him, citing a recent federal ruling which affirms that Bitcoin is not money. However, that motion was shot down by the presiding judge, Katherine Forrest.

A new bid has emerged claiming the FBI violated protocol while investigating Ulbricht’s case, specifically his 4th Amendment rights. Regardless though, until the case is resolved, he remains in state custody.

The Stakes

Ross Ulbricht is fighting for his freedom, to be sure, but there is far more at stake than just one man.

Ross Ulbricht’s mother Lyn Ulbricht was recently interviewed at Porcfest, the Porcupine Freedom Festival in New Hampshire. She was told by attorney Joshua Dratel that “It’s traditional for the government to use high profile cases to make bad law.”

She also believes that her son’s case will set a precedent, since the issues which the case raises have never before been addressed in court. Government intrusion into the internet, privacy, money laundering, and whether website hosts are criminally liable for the actions of their users.

Watch the full interview below.

Next Steps

Roger Ver‘s recent campaign to raise funds for Ulbricht’s legal defense helped raise an enormous amount of money.

The exact numbers are unknown, but he promised $10 for each retweet.

Though Ver’s contribution will certainly offset some of the stress experienced by the Ulbricht family during this process, they nevertheless have a difficult fight ahead.

Ulbricht is currently serving time at the Metropolitan Detention Center in New York. He was arrested in October of last year, and entered a plea of “not guilty” on February 7th.

His trial is set to begin November 3rd.

Ross Ulbricht's Long Road Ahead

Tuesday, 26 August 2014

Roger Ver Will Match Your Donations To Antiwar.com - From The CoinFront

They say don’t judge a book by its cover, but you can tell the organization Antiwar.com’s stance as soon as you hear the name.

Their about section describes their politics as “libertarian”, and their devotion “to the cause of non-interventionism”. In a simplified fashion, this is the idea that using violence in order to encourage peace only succeeds in creating more violence.

It’s no secret that many within the Bitcoin space are also libertarian-minded and in favour of peace. But fewer are so visibly in favour than Roger Ver.

The man known as “Bitcoin Jesus”, who helped fund such well-known Bitcoin projects as Blockchain.info, Kraken, Ripple, and many others, has also become one of the largest philanthropists in the Bitcoin community.

One look at his Twitter account makes it obvious that he’s committed to the idea of peace and non-violence.

The US war machine is actively murdering people all over the world. Who will stop the madness? It has to be you! http://t.co/M1zEKl6sFx #WAR

— Roger Ver (@rogerkver) August 23, 2014

Bitcoin is the tool that can undercut the police state and deliver a death-blow to the monopoly money that enabled it http://t.co/P6PQxC7i8x

— Roger Ver (@rogerkver) August 10, 2014

If Bitcoin has a chance to reduce the amount of war, then it deserves our undivided attention. @StefanMolyneux https://t.co/ogD2S6a3AV #war

— Roger Ver (@rogerkver) July 31, 2014

Antiwar.com and Roger Ver are now converging in a recent drive to help raise funds for Antiwar.com to continue their activities in exposing war and the corruption of the state.

From now through September 1st, Roger Ver will match any Bitcoin donations to Antiwar.com, to a maximum of $10,000 USD.

To donate to Antiwar.com with Bitcoin, visit their donation page on their site.

Donations Abound

This is far from the first time Roger Ver has used such a strategy.

Last July, he ran a similar campaign to help the family of Ross Ulbricht, alleged operator of the Silk Road online black market, to use for Ulbricht’s legal defense. “If guilty, he’s a hero. If innocent, he needs our help”, Ver posted on Twitter.

As a result, the campaign ended up raising an enormous amount of money.

Roger Ver Will Match Your Donations To Antiwar.com

Amazon Acquires Bitcoin-Accepting Twitch.tv - From The CoinFront

Twitch.tv, the online video streaming service, has been acquired by Amazon.

This news comes after several weeks of rumours of both Amazon and Google wanting to acquire them. The deal, announced by Amazon yesterday afternoon, is for a cool $970 million cash.

Amazon and Bitcoin

As a result, it’s now technically correct to say “Amazon accepts Bitcoin”, since Twitch.tv began accepting Bitcoin earlier this month.

Amazon, however, has been adamant in their stance against Bitcoin. During an interview back in April, Amazon’s head of payments Tom Taylor said in an interview “we’re not hearing from customers that [Bitcoin is] right for them and don’t have any plans with Amazon to engage Bitcoin.”

Taylor didn’t, however, rule out the possibility of Amazon embracing Bitcoin in the future. Could their acquisition of Twitch.tv be just what the company needs to realize the market they’re missing out on?

Amazon Acquires Bitcoin-Accepting Twitch.tv

Monday, 25 August 2014

Confused About Bitcoin Regulation? Bobby Lee And Dan Romero Are Here To Help! - From The CoinFront

The regulatory evironment around Bitcoin currently is confusing to those of us who are directly involved in the space. For those outside, it’s almost hopeless.

Bobby Lee of BTC China and Dan Romero of Coinbase hope to help clear things up a bit.

Tomorrow at 1pm EST, in partnership with the IRS, the two will be holding a free webinar designed to address some of the concerns with Bitcoin regulation.

According to Paymentweek, the site on which the webinar is being hosted, the following questions will be answered:

What have regulators done to work with or against the disruption of bitcoin, and where is the future going? We look at and highlight certain markets, domestic and abroad for how governments have dealt with bitcoin and cryptocurrencies at large.

These two men are both highly qualified to address such issues. Bobby Lee is well versed in China’s regulatory climate, and described as much in an interview with CNBC back in June.

Meanwhile, Coinbase has been one of the most visible figures in the Bitcoin world, facilitating Bitcoin payments from DISH, Wikipedia, and Dell, among others.

The webinar is being moderated by Felix Shipkevich, founder of Shipkevich PLLC. His company focuses on helping clients “in navigating the complexities of energing futures, commodities, derivatives, and forex laws.”

To register for the upcoming webinar, part 4 in a series click here. You can also watch parts 1, 2, and 3.

Confused About Bitcoin Regulation? Bobby Lee And Dan Romero Are Here To Help!

Mark Karpeles Founds New Webhosting Company Forever.net - From The CoinFront

Mark Karpeles, CEO of what’s left of Mt. Gox, has launched a new web hosting business.

Forever.net is the company’s name, and it claims to offer a reliable high-speed network, full IPv6 support, emergency support, and “secure payment methods”.

Those secure payment methods include credit card, bank transfer, PayPal, and “convenience store”, but curiously, doesn’t mention Bitcoin at all.

Karpeles is no stranger to web hosting businesses, having run a couple before acquiring Mt. Gox.

Forever.net is owned by Tibanne, Mark Karpeles’ holding company and the owner of Mt. Gox. Tibanne also owns Kalyhost, another hosting company which does accept Bitcoin and Litecoin as payment.

All eyes will be on Karpeles in the coming months as the Mt. Gox story continues to unfold. And though Karpeles certainly has a right to move forward with other projects, those who were hurt by the Mt. Gox collapse will want to know where the funds are going. And while Karpeles told NewsBTC that part of Tibanne’s strategy in starting Forever.net is to “do its part in the Mt. Gox bankruptcy process”, that is likely not going to be a satisfactory answer.

What do you think of Mark Karpeles? Was he complicit in what led to Mt. Gox’s downfall? Was it out of his hands? And what do you think of what he’s up to now? Would you ever trust a business run by him? Leave us a comment below!

Mark Karpeles Founds New Webhosting Company Forever.net

The First Bitcoin Baby? - From The CoinFront

The crowdfunding world is no stranger to bizarre and silly campaigns. And occasionally one goes viral, boosting its popularity far beyond the founder’s wildest dreams.

The cryptocurrency space is no exception. Sites like Bitcoin Starter and Potfunder have created platforms where users can offer new projects and those interested can contribute to their creation.

But one of the latest crowdfunding campaigns may be even more bizarre than the potato salad guy.

First Bitcoin Baby

Everyone wants to be the first something in the Bitcoin world. There’s the first multinational company to accept Bitcoin, the first airline to accept Bitcoin, the first cryptocurrency mining conference, and even the first play to be funded by Bitcoin.

But the first Bitcoin baby?

It’s a crowdfunding project started on Bitcoin Starter. If the parents raise their projected goal of 150 BTC, they will name their newborn daughter Satoshi Bitcoin.

“Bitcoin is the future”, the girl’s parents said on the Bitcoin Starter page, “and we hope that future generations will grow up and be able to experience and live in financial independence.”

What’s The Point?

Is this just a cheap attempt by the parents of the would-be Satoshi Bitcoin to cash in on Bitcoin’s popularity?

It could take off. After all, stranger things have happened. But the couple, whose nationality is unmentioned, may run into trouble depending on their nationality. A Swedish couple who tried naming their daughter “Metallica” ended up having to deal with government bureaucracy after officials objected to the name. And Germany, New Zealand, Japan, Denmark, Iceland, Norway, and China all have naming restrictions.

Is this the most unusual cryptocurrency-related crowdfunding program you’ve ever read about?

The First Bitcoin Baby?

Sunday, 24 August 2014

OKCoin Audit Reveals 104% Solvency - From The CoinFront

OKCoin, one of China’s largest Bitcoin exchanges, has recently had an audit of its platform and holdings.

The result is favourable: the company is holding 104% of what it says it did.

The audit was performed by Ripple Labs CTO Stefan Thomas, who has performed exchange audits before.

Precedent

OKCoin follows in the footsteps of many other exchanges as well who have decided to open their books to the public in hopes of inspiring confidence in their platform.

Coinfloor announced a “Provable solvency report” in april, just shortly after Canadian exchange Vault of Satoshi offered a similar “proof of solvency” plan.

These moves are becoming more integral to the Bitcoin world after the collapse of Mt. Gox, Neo & Bee, and other major figures in the Bitcoin world.

OKCoin is one of China’s most significant Bitcoin exchanges, managing more than 50% of all Bitcoin purchases in China. While some may consider this a worrisome situation, putting too many eggs in one basket, OKCoin’s audit should assuage some concerns.

OKCoin Audit Reveals 104% Solvency

Saturday, 23 August 2014

Is The Era Of Swiss Banking Dominance Coming To An End? - From The CoinFront

The era of banking secrecy may be coming to an end as two Swiss banking firms, Lomard Odier and Pictet, have announced they will be publishing their earnings.

Neither bank has done so for more than 200 years, with the last publicly published finance sheet from the company being released in 1796.

Both banks are due to begin reporting their earnings by the end of this month.

Ramifications

The banks together oversee more than half a trillion dollars in asset management from both private individuals and public institutions.

As a result of international pressure as well as a recent investigation by the US government for helping wealthy Americans dodge taxes that led to Wegelin & Co, Switzerland’s oldest private bank, shutting down, the era of Swiss financial secrecy could be over.

This could have major repercussions for Switzerland, which has built a strong reputation for cheese, knives, neutrality, and a world-class banking system used by many of the world’s elite.

It could also provide a valuable new market for Bitcoin. After all, those with a large amount of money and assets will not be deterred if Switzerland can no longer provide for their needs.

Bitcoin is already seen as a tax haven. And if conditions in Switzerland continue to move away from secrecy, Bitcoin will already be poised to take its place.

Would using Bitcoin as a tax shelter be beneficial or damaging to Bitcoin’s reputation?

Is The Era Of Swiss Banking Dominance Coming To An End?

Is Florida In Love With Bitcoin? - From The CoinFront

Bitcoin might seem anachronistic at a history museum, but the people of St. Petersburg seem to disagree.

The St. Petersburg Museum of History has announced it will now accept Bitcoin as payment for admissions and for goods.

A museum official told the Tampa Bay Times that accepting Bitcoin will be a welcome addition for those concerned about credit card fraud and lower transaction times.

Florida Loves Bitcoin

This isn’t the first time St. Petersburg has shown up in Bitcoin headlines this year.

Bitpay, who will be managing the St. Petersburg Museum of History’s Bitcoin transactions, also sponsored the upcoming St. Petersburg Bowl, a popular post-season NCAA football match, which has been re-branded as the Bitcoin St. Petersburg Bowl.

BitPay sponsored the event not only for this year, but subsequently until 2016. And it was recently revealed on Twitter that BitPay paid their sponsorship in Bitcoin.

For the sponsorship of @BitcoinBowl, @BitPay paid @espn in #bitcoin, Tony Gallippi confirmed today.

— Chris Wilkerson (@TBBJwilkerson) August 22, 2014

Florida is also home to Sean’s Outpost in Pensacola, one of the most visible charitable organizations in the Bitcoin world.

Sean’s Outpost founder Jason King just recently completed a run across the continental US, from Pensacola to California, to raise money and awareness for homelessness and Bitcoin.

Walt Disney World is hosting an upcoming Bitcoin event as well in October. Guest speakers for that event include Liberty.me founder Jeffrey Tucker, Skyhook’s Kyle Drake, Charlie Shrem, Chamber of Digital Commerce‘s Perianne Boring, among others.

And Interwallet, which manufactures kiosks with Bitcoin ATM functionality and other features, will be launching ten such machines in Florida.

Is Florida on track to become the Bitcoin capital of the United States?

Is Florida In Love With Bitcoin?

Friday, 22 August 2014

Manhattan Gets Its First Bitcoin ATM In A Vintage Clothing Store - From The CoinFront

Nearly every major city on Earth has its own Bitcoin ATM now. They’ve popped up in Vancouver, Toronto, Los Angeles, Dubai, Halifax, and even smaller cities like North Bay and Saskatoonin Canada.

But for some reason, Manhattan is lagging behind.

That’s now changed though, with Manhattan’s first Bitcoin ATM having launched as of yesterday evening at 5pm.

The Lamassu machine is located at Flat 128, a vintage clothing store on Christopher Street.

While it may seem strange for a store to sell vintage clothing and digital currency, Flat 128 already accepts Bitcoin as a payment method and has seen enough success with it to warrant using part of its space for a Bitcoin ATM.

Uncertainty in New York

Perhaps one of the reasons for the lack of a Bitcoin ATM presence in New York is the uncertainty regarding regulation in the state.

The proposed BitLicence has caused a great deal of controversy within the Bitcoin community. Circle CEO Jeremy Allaire, for example, called it “impossible to comply with“, and other figures in the Bitcoin world have declared their frustrations as well.

As a result of these comments, and numerous petitions, the NYDFS has decided to extend the comment period by 45 days in order to allow more time for those who may be affected to add their input.

The future of Manhattan’s first Bitcoin ATM is unclear, but for now at least Manhattan residents can acquire Bitcoin a little more easily.

Manhattan Gets Its First Bitcoin ATM In A Vintage Clothing Store

NYDFS Extends BitLicence Comment Period After "Significant Amount Of Public Interest" - From The CoinFront

It’s no secret that the proposed “Bitlicence” framework brought up by the New York Department of Financial Services has been unpopular at best.

Many members of the Bitcoin community have come out in opposition to it. Circle CEO Jeremy Allaire has called the BitLicence “impossible to comply with”, and multiple petitions have arisen from prominent members of the community to extend the comment period.

Those fears have been assuaged somewhat by Superintendant Ben Lawsky’s decision to agree to the petitions’ demands. The comment period has been extended by 45 days as a result of what it called “a significant amount of public interest,”, and because the BitLicence is “the first of its kind and could potentially serve as a model for other jurisdictions.”

The original date was set for 45 days after its announcement on July 23rd, but the comment period has now been doubled to 90 days. As of now, the comment period closes on October 21st, 2014.

Those interested in submitting comments to the New York Department of Financial Services can do so by emailing Dana V. Syracuse at Office of General Counsel. His address is dana.syracuse@dfs.ny.gov.

NYDFS Extends BitLicence Comment Period After "Significant Amount Of Public Interest"

Amagi Metals Will Accept ONLY Cryptocurrency By 2017 - From The CoinFront

Those who are paying attention are aware that the fiat currency system is, to put it mildly, having some troubles.

Many smart investors are opting to invest in precious metals instead of dollars, but that presents an issue for the dealers. If they know the dollar is not a sound investment method, what benefit is there for them to continue to receive dollars as payment?

The argument can be made, of course, that dollars are more liquid than metals, and there’s truth to that. But as the US dollar takes more and more hits, people will begin to step away from it.

That’s exactly what Amagi Metals, based in Denver Colorado, is planning on doing.

A Business Without Dollars?

The company has announced that as of the end of 2016, they will no longer be accepting dollars as payment.

“Since the dollar was decoupled from gold in 1971, it has lost 97% of its value compared to the yellow metal and 83% of its domestic purchasing power, and the trend shows no signs of stopping,” the company said in a press release on their website. “Thus, Amagi has planned that by the end of 2016, the company will no longer accept US dollars or other “fiat” currencies. Instead, Amagi plans to be trading exclusively in cryptocurrencies like Bitcoin.”

In order to reduce as many barriers as possible, though, they will also offer a service on their website which allows potential customers to convert their fiat currency into cryptocurrency “at the exchange rate at that time, whatever it may be.”

The company began accepting cryptocurrency in November 2012, so they are obviously well versed in the ups and downs of cryptocurrency. They’ve ridden through price bubbles and negative publicity, and still believe in it.

Crypto Only!?

It’s not unprecedented for a business to sell goods only in cryptocurrency, but the occurrence is rare.

Back in May, Scottish retailer CeX launched a pilot project to convert one of their stores entirely over to Bitcoin. And several smaller retailers have as well.

By the time 2016 comes to a close, though, the cryptocurrency space will certainly look quite a bit different. Nevertheless, are they being too ambitious in their approach?

Amagi Metals has advocated what they call a “sound money” philosophy. “Hisory shows that paper currency, backed by nothing of value, will ultimately fail. It’s only a matter of time until no one will be accepting the dollar.”

To discover more about Amagi Metals, and acquire your own precious metals (for cryptocurrency or otherwise), visit their website.

Amagi Metals Will Accept ONLY Cryptocurrency By 2017

Thursday, 21 August 2014

Overstock Will Soon Ship Bitcoin Orders Globally - From The CoinFront

In yet another move to expand the company’s Bitcoin presence, Overstock will soon accept Bitcoin payment worldwide.

The shipping options are available for 101 different countries, including North America, several South American nations, most of Europe, large parts of Asia & the Middle East, and Egypt, Réunion, and South Africa on the African continent.

Overstock was already the largest retailer to begin accepting Bitcoin when they first embraced the technology back in January. And now their latest move makes them the biggest retailer to extend Bitcoin to their international audience.

The new shipping options will come into effect on September 1st.

Overstock’s Position In The Bitcoin World

For a long time, bitcoiners were pushing for Amazon to begin accepting Bitcoin. Certainly, such a move would at time have solidified Amazon’s position in the Bitcoin sphere.

But that time has passed. While it would still be a boon to Bitcoin for Amazon to accept it, it doesn’t look like that will be happening any time soon. And in the wake of their reluctance to get on board, Overstock has taken up the slack.

Overstock has been busy in the cryptocurrency world lately. To discover more about what they’ve been up to, click here.

Overstock Will Soon Ship Bitcoin Orders Globally

Delaware Officially Recognizes The Inheritance Of Digital Assets - From The CoinFront

Delaware has become the first US state to officially and fully recognize the inheritance of digital assets.

The state’s House Bill 345, “Fiduciary Access to Digital Assets and Digital Accounts Act”, gives legal heirs the same right to the deceased’s digital accounts and devices as they do their physical assets.

This includes their digital assets, which the bill identifies as

data, text, emails, documents, audio, video, images, sounds, social media content, social networking content, codes, health care records, health insurance records, computer source codes, computer programs, software, software licenses, databases, or the like, including the usernames and passwords, created, generated, sent, communicated, shared, received, or stored by electronic means on a digital device.

Going Too Far?

When a family member passes, should their personal communications then belong to their heirs?

Under Delaware’s law, they would. After all, the “digital assets” above includes email accounts, social media accounts, and other places where private messages were sent.

Regardless of whether a person is deceased, having this information fall into the heir’s hands could conceivably put living parties at risk and cause other issues.

How Could It Apply To Bitcoin?

While the bill itself makes no specific mention of Bitcoin, cryptocurrency, or digital currency, the law likely applies to it as well.

The issue arises, though, of how exactly one could inherit Bitcoin from a secured wallet.

After all, if a wallet is sealed with a password, there’s no way to access the coins without knowing said password. And if the only person who knows the password is deceased, well, the coins are simply lost forever.

Regardless of issues involved with inheritance, though, Bitcoin enthusiasts should see Delaware’s new bill as a victory in the struggle to recognize cryptocurrency as a legitimate asset.

Delaware Officially Recognizes The Inheritance Of Digital Assets

Coinbase Acquires Blockr - From The CoinFront

Coinbase, one of the largest and most prominent Bitcoin payment processing companies, has a new acquisition on their hands

That acquisition is Blockr, a blockchain explorer which “shows blocks in human readable format”.

Blockr, which spent six months in a private beta before launching to the public late last December, provides data for Bitcoin, Litecoin, Digitalcoin, Quark, Peercoin, and Megacoin. Aside from a blockchain explorer, it also provides a price index, the last block created, and the level of mining difficulty.

To facilitate the transfer from Blockr to Coinbase, two of its founders, software engineer Saso Matejina and designer Samo Drole, have relocated from Slovenia to San Francisco to work for Coinbase.

Blockr caught Coinbase’s attention “earlier this year with its sleek, intuitive design and API,” the company said on a post on their official blog.

What isn’t clear at this point is what Coinbase plans on doing with their new acquisition, but Matejina and Drole will be working on further developing Coinbase’s API.

Coinbase Acquires Blockr

Sunday, 31 August 2014

The End Of An Era

Public Opinion

Saturday, 30 August 2014