money

The Government’s Perilous Bitcoin Chase

"Nothing can strip the shine off a cool trend as quickly as national security officials sharing how it is poised to become a cutting-edge tool in terrorists’ ongoing death-to-America project. As such, I want to thank David Cohen, the Treasury’s Undersecretary for Terrorism and Financial Intelligence, and John Carlin, acting Assistant Attorney General for National Security—distinguished and otherwise delightful members of a panel I moderated at the Aspen Institute’s National Security Forum this past weekend—for casting a sinister shadow over what I had previously assumed to be the harmless if quirky Bitcoin craze." Continue reading →

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If you get caught selling Bitcoin hardware, Paypal will “sever business relationships with you”

"Hello [name removed], We have reviewed your PayPal account and found that you are selling bitcoin mining machines. Per our current Acceptable Use Policy for Money Service Businesses, PayPal may not be used to operate a currency exchange, bureau de change or check cashing business including the sale of bitcoins, bitcoin mining units, and other related bitcoin products. To continue using your PayPal account, we need some additional information from you. Keep in mind that we have placed a limitation on your PayPal account, and this limitation will remain until we receive and review this information." Continue reading →

Continue ReadingIf you get caught selling Bitcoin hardware, Paypal will “sever business relationships with you”

Texas man raised over $4.5M in 2012 Bitcoin Ponzi scheme, feds allege

"The government's financial regulator alleges that Shavers violated a number of federal financial regulations. In court documents, the SEC wrote: 'Shavers falsely promised investors up to 7 percent interest weekly based on BTCST’s purported BTC market arbitrage activity, including selling BTC to individuals who wished to buy BTC 'off the radar,' quickly, or in large quantities. In reality, the BTCST offering was a sham and a Ponzi scheme whereby Shavers used new BTCST investors’ BTC to pay the promised returns on outstanding BTCST investments and misappropriated BTCST investors’ [bitcoins] for his personal use.'" Continue reading →

Continue ReadingTexas man raised over $4.5M in 2012 Bitcoin Ponzi scheme, feds allege

Foodler bitcoin orders growing by 30 percent a month

"When US restaurant delivery network Foodler began accepting bitcoin paymentsin April, it formed a natural combination for programmers: code and steaming boxes of delivered food. So it makes perfect sense that Foodler co-founder Christian Dumontet set up the interface to make Foodler bitcoin-friendly during a few late nights of delivery-fueled coding. In that week, Boston-based Foodler transformed the art of dining on bitcoin from an adventure to a few swipes of a smartphone screen and an exercise in patiently waiting for the doorbell. Bitcoin users have been eating it up." Continue reading →

Continue ReadingFoodler bitcoin orders growing by 30 percent a month

Israelis can now buy bitcoins in person with Bits of Gold and local exchange bureau

"Israelis can now purchase bitcoins at their local exchange bureau thanks to a new collaboration between bitcoin exchange Bits of Gold and Global Money Transfer (GMT). The partnership with GMT means Bits of Gold can ensure it complies with current and future anti-money-laundering and know-your-customer regulations in Israel. At the moment, the maximum amount of cash people can change into bitcoins via Bits of Gold is 10,000 Israeli new shekel (around $2,800)." Continue reading →

Continue ReadingIsraelis can now buy bitcoins in person with Bits of Gold and local exchange bureau

Amagi Metals to Lose Bank Account Over Accepting Bitcoin

"Precious metals purveyor Amagi Metals announced on Friday that as of mid-August, their current bank account with San Francisco headquartered Bank of the West would be closed. In the latest case of banking aversion to bitcoin, Amagi Metals stated that the basis for the account closure is the fact that Amagi Metals accepts bitcoin as a payment method, which Bank of the West views as a risk. While it is the prerogative of a bank to choose not to do business any entity based on a risk assessment, a decision to cut off a customer based on the fact that they accept a specific method of payment is unusual." Continue reading →

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The Gold Roller Coaster

"Gold is not a stock. It does not behave as a stock, and its rewards are not delivered in the manner of stocks. In watching the ups and downs of gold, this is the most important fact to remember. To be sure, some investors treat gold in the same way as a stock – trying to guess its fluctuations – selling after a rise and buying following a correction. However, gold is not like a stock, in that it does not pay dividends. It does not rise and fall based upon the performance of any company. And it is relatively finite. There can be no stock splits. Gold's true value is not as a trading commodity, but as a means to preserve wealth." Continue reading →

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Funny Money Or New Economy? Alternative Currency Raises Tax, Other Challenges

"Philadelphia isn’t the only community experimenting with this idea. Other areas, like the Berkshire area of Massachusetts, have a similar currency (theirs is called BerkShares, not to be confused with Buffett’s Berkshire). The exchange of Equal Dollars is a $2.5 million operation, according to RHD. BerkShares claims that it circulated over one million BerkShares circulated in the first nine months of operation and over 2.7 million to date (roughly pegged at $.95 U.S. per BerkShare). Ithaca HOURS, touted as the oldest local currency in the country, currently has over $100,000 in circulation." Continue reading →

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The Curiously Uncurious Ben Bernanke

"If I were chairman of the Federal Reserve and didn't understand the forces that move gold, learning about them would be near the top of my to-do list, if for no other reason than a large swath of the investment community uses gold as a barometer to evaluate how good a job I'm doing. Bernanke's clueless quote paints a stark contrast between the academic and real world. Upon observing the recent correction in the price of gold, how many asset managers do you think threw their hands up in confusion and proclaimed that no one can possibly know what's going on, so why even try?" Continue reading →

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Are You Ready for This Coming Disaster?

"Interest rates will remain at low levels for a very, very long time. The Fed will remove the stimulus in baby steps because it has no other choice. Any significant moves would send world markets into a tailspin. When the money printing finally stops, the Fed will still keep interest rates at zero for a while, just to make sure the economy can stand on its own feet. Only then – and if everything goes well – will the Fed slowly begin to hike rates. Most bubbles burst when the Fed starts to move rates above the inflation rate. As you can see in the chart above, that’s what happened in 2006. But, the Fed will only do that when inflation starts to get out of control." Continue reading →

Continue ReadingAre You Ready for This Coming Disaster?