Bitcoin

Sealand to adopt bitcoin?

"We’ve seen bitcoin gaining traction among companies ranging from porn merchants through to car dealerships. But this may be the first time we’ve seen a country adopting it as a currency – well, a country of sorts. The Principality of Sealand has expressed an interest in adopting bitcoin. 'Prince Michael' Bates, of the quirky, self-proclaimed independent state, expressed interest in the virtual currency during an interview on the Reddit site. The son of Sealand founder Roy Bates was asked if the state could print its own money. 'Yes, we are looking at ways to do it securely. Also bitcoin sounds really interesting if they stabilise,' Bates said." Continue reading →

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Bitcoin more powerful than fastest supercomputers

"The power of all the computers networked together to maintain the digital currency's system far exceeds the combined processing strength of the top 500 most powerful supercomputers. Easily. The matchup isn't even close. At any given moment, Bitcoin's peer-to-peer network contains thousands of computers linked together to generate more than 1,000 petaflops of raw computing power. To put that in perspective, the world's fastest supercomputer, Titan, runs at less than 18 petaflops. The Bitcoin network is sucking down nearly $200,000 a day in electricity costs. That's stunning for an 'economy' that sprang into being just four years ago." Continue reading →

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Credit Union: Bitcoin’s New Best Friends?

"The Internet Archive Federal Credit Union would like to help both the people who are setting up bitcoin exchanges and those who want to do business with them, navigating them through the regulatory landscape by setting up accounts that follow know-your-customer laws. Modell would also like to work to set up low-cost, overnight transfers between bitcoin exchanges and the bank accounts of their customers. This would be a much cheaper alternative to wire transfers, which can cost more than forty dollars each. Finally, Modell says the credit union may extend credit lines up to $5000 to individuals that are investing in bitcoin through these exchanges." Continue reading →

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US Department of Treasury Targets Bitcoin Poker Sites

"In March, FinCEN exercised its power under the Bank Secrecy Act to clarify its position on convertible virtual currencies. The clarification means bitcoin poker sites that accept US players could find themselves in hot water if they facilitate the transfer of convertible virtual currency, which occurs whenever a player gains from or loses to another bitcoin poker player. Regardless of where they are based, bitcoin poker rooms could face prosecution under 18 USC 1960 (prohibition of unlicensed money transmitting businesses). The legislation was originally written to combat money laundering, but the clarification by FinCEN brings bitcoin services within its scope." Continue reading →

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The Top 3 Things I Learned at the Bitcoin Conference

"This past weekend I attended the Bitcoin 2013 conference in San Jose, where over one thousand enthusiasts, developers, entrepreneurs, venture capitalists, and, yes, lawyers gathered to chart the future of the virtual currency. Bitcoin to date has been the domain of geeks, gold bugs, and cypherpunks, but sensing its disruptive (and profitable) potential, entrepreneurs and venture capitalists are pouring into the space. This transition from ideological enclave to professionalized financial network was on display at the conference’s exhibit hall." Continue reading →

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Canadian regulators welcome US Bitcoin refugees with open arms

"The Register has seen a letter from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) which was sent to several prominent Bitcoin exchanges in the country, explaining they are exempt from strict money-laundering laws. US police used similar laws to freeze the accounts of Mt. Gox, the world's largest Bitcoin exchange, last week after claiming it was operating as an 'unlicensed money service business.' But in a letter to the Canadian exchanges, FINTRAC confirmed the exchanges were not actually money service businesses and were therefore exempt from laws governing this type of firm." Continue reading →

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In Argentina, there’s a gorgeous apartment for sale and it only costs 409 Bitcoins

"Argentina is dangerously nearing another economic collapse, and few have forgotten the country’s crippling default in 2001 that prompted a flash devaluation of the Argentine peso, which effectively halved the country’s wealth. If Argentina defaults on its debt again, which could happen very soon, no one wants to be caught off-guard. So, Argentines are scrambling to store their wealth in anything but the volatile Argentine peso. That’s where Bitcoin comes in." Continue reading →

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Bitcoin Comes To SWIFT

"The dichotomy between EU and U.S. approaches to e-money becomes even more apparent when one looks at the uniformity of the EU e-Money and Payment Services Directives versus the almost hostile FinCEN guidance on virtual currencies and the incomprehensible patchwork of state money transmitter laws. Because of this, I estimate that the EU currently enjoys at least a five-year head start over its U.S. brethren in accommodating evolving payments efforts. The U.S seems content to extinguish innovations like e-Gold in an effort to maintain complete control over money businesses and to project dollar hegemony within its borders." Continue reading →

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Julian Assange on Bitcoins and Gold

"Bitcoin actually has the balance and incentives right, and that is why it is starting to take off. No central nodes. It is all point to point. One does not need to trust any central mint. If we look at traditional currencies such as gold, we can see that they have sort of interesting properties that make them valuable as a medium of exchange. Of all metals it is the easiest to chop up into fine segments. You can test relatively easily whether it is true or whether it is fake. You can take chopped up segments and you can put them back together by melting the gold. You can take it and put it in the ground and it is not going to decay like apples or steaks." Continue reading →

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