Bitcoin

Businesses in Berlin open arms to digital currency Bitcoin

"Cassandra Wintgens ceremoniously affixed the blue sticker with the thick, yellow 'B' to the pane in the front door of her guesthouse-cum-cafe. 'Bitcoin accepted here,' it read. The establishment Lekkerurlaub Notaufnahme, which translates roughly as 'Yummy Holiday Emergency Admission,' thereby became the seventh business in the Graefe neighbourhood of the multicultural Berlin district of Kreuzberg, to accept the digital currency — whether for an overnight stay or a cup of coffee in the cafe. 'I think it’s exciting,' she remarked. 'We don’t need banks for Bitcoins. They just muck us about anyway and don’t do anything for small-scale businesspeople.'" Continue reading →

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Western Union now prohibits sending money to the USA from Argentina. Bitcoin may be the only way out.

"Western Union will no longer allow the outflow of dollars from Argentina to the U.S.. Two U.S. companies, Western Union and Delta Airlines, began to suspend some operations. According to the report said 'The Chronicle', the company's overseas remittance sent the following statement: 'As of 03/06/13 will not be able to ship from Argentina to the United States'. The company had discontinued their service, in part, to Europe, Asia, Africa and Oceania. For shipments to Latin America, only allowed up to 1,500 pesos per month ($ 280). Meanwhile, Delta Airlines sell tickets Argentines abroad only if they enter and depart from the country." Continue reading →

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Bitcoin’s Big Bank Problem: Why Did Mt. Gox Halt US Payouts?

"The world’s best-known Bitcoin exchange stopped paying out customers in U.S. dollars Thursday. Mt. Gox didn’t exactly explain what was going on, though. It blamed an 'increased volume' of transactions, and said it would suspend U.S. cash withdrawals for two weeks as it sorted things out. The issue 'is with processing the sheer volume through our banks in Japan, which is causing a delay,' said Mt. Gox’s Thomas Glucksmann-Smith in an email message. 'We are currently attempting to improve our services for this. In the meantime USD deposits are unaffected as are other currencies.'" Continue reading →

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Federal Auditors, IRS Pan Tax Regulations For Bitcoins

"Federal auditors are recommending that the IRS not issue regulations for taxpayers on filing returns for the money earned through the exchange of virtual currencies. The tax agency has neither the money nor the time to craft compliance rules for the emerging market, according to a new report from the Government Accountability Office. GAO officials acknowledged the government might be missing out on tax revenue as a result of not publishing Bitcoin-specific rules, but it is unclear how much. 'Given the uncertain extent of noncompliance with virtual currency transactions, formal guidance, such as regulations, may not be warranted,' the auditors concluded." Continue reading →

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Match.com Founder: Fed Spyware Searching For Bitcoin Wallets

"'I just had a government guy in my office telling me that they have forensic software looking for Bitcoin wallets on your machines,' said Gary Kremen, founder of Match.com and Sociogramics. 'And if they find one, they lock on to you, because statistically, if you were in Liberty Reserve or using a lot of anonymous money, you were probably doing something wrong.' Bitcoins are a virtual currency that can be used to buy and sell a wide variety of products online and in the real world. The currency is transferable anywhere in the world and can be exchanged for real currency at any time." Continue reading →

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Bitspend, Bitcoin payment system, ceases trading after bank accounts frozen

"The bitcoin payment system, Bitspend, has been forced to stop operations after its bank accounts were frozen. Bitspend is a service that acted as a bridge between those who held cash in the form of bitcoin, and merchants who did not accept bitcoin payments. According to the firm, its banks (Chase and another unnamed bank) both told it that they regarded businesses which trade in bitcoin as 'too high risk'. The banks allegedly did this without notice. Furthermore, Chase bank has also closed the personal accounts of the firm’s owner. The company stated that it will honour orders as soon as it can, but with the current state of affairs it cannot pay its own bills." Continue reading →

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Erik Voorhees: financial independence through gold and Bitcoin

"Félix Moreno talks to Erik Voorhees about Bitcoin, gold and the nature of money. They discuss the properties that make good or bad money and how both Bitcoin and precious metals are decentralised (a plus), while fiat money systems are centrally planned. They talk about free speech, property rights and liberty, and the role that money plays in these." Continue reading →

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Bitcoin In IRS Crosshairs, Says Government Report

"There is confusion whether transactions in Bitcoin should be treated as property, barter, foreign currency, or a financial instrument. How you see it can determine the tax treatment. Barter transactions may be the most logical treatment, but not everyone agrees. Besides, even without Bitcoins or other exotica, bartering transactions are inherently under-reported. And then there is tax basis. If you sell something for less than you paid, you shouldn’t have gain. That’s true in U.S. dollars or in Bitcoin. If you sell something at a garage sale, you may or may not have income. Brave new world? GAO and IRS don’t think so." Continue reading →

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Bitcoin: Internationalization’s New Best Friend

"Bitcoin makes it easy to move funds around the world and convert it into and out of fiat currencies in a very private fashion. There's nothing to declare at borders, as with cash or precious metals, since the value exists 'out there' in the Internet. All you have are the keys to access those funds when desired. And, best of all, it allows frequent travelers and permanent travelers (PTs) to build up a readily accessible 'emergency account' that can't be easily identified, let alone stolen. However, the trick to getting all these privacy benefits is to use it properly." Continue reading →

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US Treasury denies it is trying to torpedo Bitcoin

"Bitcoin itself is nearly impossible to regulate. And the government at least seems to understand this point. But that doesn’t mean they can’t spread fear, uncertainty, and doubt. In this short 4-page speech, the Director twice made a connection between Bitcoin and (you guessed it) terrorism. Twice more connected Bitcoin to those who would exploit children. And four times linked digital currency to ‘criminals’ in general. And, even though they cannot control Bitcoin, FinCEN is obviously laying the foundation to regulate every business that touches Bitcoin, from exchange houses to swap websites to digital wallet providers." Continue reading →

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