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Crypto-Currencies Will Destroy The Bankster Monopoly On Money

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Bitcoin Developments In The US / Troy Kuhn / August 22, 2014 at 10:19 am EST

Wedbush Securities’s latest report states that the volatility in Bitcoin prices will continue. However, it added that such volatility is necessary to ensure the market’s growth and maturity. The financial firm is of the view that the fluctuation in the crypto-currency’s prices will actually prove beneficial for the market.

The author of the report, Gil Luria, said that the volatility in Bitcoin prices should not discourage its users as its retailers and payment processors are protected, and customers are also expected to be protected in the future. He added that companies like Coinbase and Circle are working on such solutions that, once implemented, will eradicate any risk for Bitcoin customers.

The report also mentions how changes in market perceptions regarding Bitcoin price can cause significant market movements. However, Luria asserts that trades embrace volatility in Bitcoin trading as the relation between volatility and trading volumes is becoming an emerging phenomenon.


How Burning Man’s Camp Bitcoin Became Camp Dogecoin / Carrie Kirby / August 22, 2014 at 11:41 BST

Black Rock City excludes buying and selling by definition.

Rising from the Nevada desert for the annual Burning Man festival, it’s a temporary community where rental van logos are covered to avoid commercialism and where a bike ride might net you a free dance lesson or a grilled cheese sandwich from a billionaire, but no shopping.

So what is a cryptocurrency camp doing at Burning Man, an event where even bartering is deemed too capitalistic?

Relax. It’s dogecoin.

Late-model burgundy caravan

In the official Burning Man database, the camp is registered as Camp Bitcoin. But after hatching a plan for a bitcoin-themed camp early this year, its organisers began dropping out: one is getting married, one has a new baby and another ended up under house arrest.

Just a couple of weeks before ‘burners’ (the term for Burning Man attendees) were to converge in the Nevada desert, Gary Lachance and a handful of other dogecoin enthusiasts, most of them from Vancouver, British Columbia, picked up the mantle and ran with it. Now Camp Bitcoin has been rechristened Camp Dogecoin.


Why To Back A Bitcoin Startup / Julie Meyer / 8/22/2014 @ 6:23AM

I don’t know how it’s going to happen, but I know it will. A new financial order is emerging which will be radically more transparent than the system which has not fundamentally renovated itself since the crisis of 2008. PPI scandals. Libor rigging. On and on it goes. The financial services industry fundamentally lost sight of the simple fact that it is not an industry; it’s a service industry to industry. Its job is to back the industrialists of the day.


UK Banks Are Killing Bitcoin Startups / Diana Ngo / 2014-08-22 11:02 AM

While Britain is said to be looking to turn the UK into a center for Bitcoin trade, Bitcoin exchanges and trading services are still struggling with the traditional banking industry.

Throughout the UK, merchants have been welcoming digital currencies with open arms. Since the beginning of 2014, online and brick-and-mortar businesses in various sectors from adult entertainment, food services, to gift vouchers, have started either considering, or accepting Bitcoin as a mean of payment.

Although a recent survey suggested that the British public has had mixed feelings regarding digital currencies, Bitcoin is making its way to the UK, progressively conquering the hearts of the public and the officials.

On August 6, Chancellor for the Treasury George Osborne, said he has instructed the government to explore the role of digital currencies in the financial system in order to make Britain the “global center of financial innovation.” Britain officials were said to be working on a regulatory framework in order to make cryptocurrencies a part of the country’s strategy to boost innovation in the traditional finance sector.


Befuddled by Bitcoin: Defining Virtual Currency for Regulation / Steve Thomas / August 22, 2014

Bitcoin Jay Mallin

In July, New York became the first state to issue proposed regulations governing Bitcoin and other virtual currencies. At about the same time, in U.S. v. Ulbricht, judge Katherine B. Forrest of the Southern District of New York called Bitcoin “an anonymous and untraceable form of payment.” Almost a year earlier in August 2013, magistrate judge Amos L. Mazzant of the Eastern District of Texas held that Bitcoin was “a currency or form of money” in SEC v. Shavers. And earlier this year, the Texas State Securities Board’s Enforcement Division called Bitcoin “a digital currency system that incorporates cryptography.”

But on March 26, the IRS released its Notice 2014-21, stating that Bitcoin and other “convertible virtual currencies” will not be treated as currency but will be taxed like property. That seems in line with 31 Code of Federal Regulations 1010.100(m), where currency is defined as something issued by a government.

Whether currency or mere property, to a great extent Bitcoin has been treated as an investment product and its value has fluctuated from around $2 near its inception in 2009 to at times more than $1,000 (at the time of this writing, Bitcoin was priced around $500, according to virtual currency website CoinDesk). Last year, the association of state securities regulators put digital money on its list of the top 10 threats to investors.


Storj Exclusive Interview – Decentralized Cloud Storage / Rick Mac Gillis / 22/08/2014

Storj is today’s Random Coin of the Day as it offers decentralized file storage. Users earn Storj coins by offering the extra space on their hard drive for Storj’s file storage. People who host their files on Storj are the only ones who may access their files as it depends on the same blockchain technology every coin relies on for its security.

MetaDisk is being developed for people looking for cloud storage, and DriveShare is being developed for those who wish to offer their hard drive space for the Storj network in exchange for Storjcoins.


Bitcoin Phishing Click Rate Higher than for Regular Scams / Ionut Ilascu / August 22nd, 2014, 12:03 GMT

The curiosity over crypto-currrency generated unexpected results in the case of a Bitcoin credential phishing campaign, with a click rate higher than the recorded amount of users working with this type of digital money.

Proofpoint, a company providing service-as-a service solutions, detected that the 12,000 messages part of this campaign received a 2.7% click rate, which is more than the percentage of Bitcoin users in the general population.

This means that in some cases the link pointing to the phishing website was accessed even by users with no Bitcoin accounts, probably out of curiosity about the digital currency.

The emails were sent in two separate waves, and reached individuals working in over 400 organizations, which included higher education, financial services, high tech, media and manufacturing.


BITCOIN 2014 – Wences Casares (Xapo) – Getting to a Billion Bitcoin Users / August 22, 2014

How do we bring Bitcoin to the masses? And why should the masses care? Xapo founder and CEO Wences Casares will take us through the history of “money,” back 100,000 years to when humans first lent and bartered. Through this historical lens, Wences will challenge preconceived myths of what constitutes a currency and will lay out the qualities and functions of sound money.

Wences will demonstrate Bitcoin’s similarities with the historical path of today’s traditional currencies, as well as its accelerated evolutionary process. Today it is a store of value, tomorrow it will be a payment mechanism, and in the near future it will be a unit of account. The conclusion: A billion Bitcoin users is inevitable. But how and when do we get there?


New York Makes More Time for Comments on BitLicenses Proposal / Armand Tanzarian / 2014-08-22 09:55 AM

Citing “a significant amount of public interest” in the Department of Financial Services’ proposed regulatory framework for cryptocurrency businesses, the State of New York has extended the window for which it will hear comments by 45 days.

Comments will now be due by Oct. 21 instead of early September.

The move comes less than two weeks after the NYDFS promised the Bitcoin Foundation more information regarding the projected benefits of its proposal.

“It’s obvious that this is a novel regulation,” Benjamin M. Lawsky, the superintendent of financial services, was quoted as saying in The New York Times on Thursday. “It’s really the collision of banking regulations with new technology, and we want to make sure we get it right.”


OKCoin Reveals BTC Reserves of 104% as China’s Exchanges Undergo Audits / Jon Southurst / August 22, 2014 at 13:51 BST

Chinese exchange OKCoin today released details of an audit that proved it held 104.86% of the bitcoin reserves required to cover customers’ balances.

Going forward, the company will also seek to reassure its customers with a cryptographic ‘merkle tree’ verification system, allowing customers to verify for themselves that their account balance was included in the audit data.

Other China-based exchanges are busy working on audits of their own, following recent demand from the local community for the companies to be more transparent in their accounting.

BTC China announced on 19th August that it would allow an independent third-party audit of its hot and cold wallets, while Huobi is in the process of implementing its own merkle tree-based proof system, and better integrating its newly-acquired multi-signature wallet service Quickwallet.


How To Make The Greatest Profit On Bitcoin Mining? / August 22, 2014

Bitcoin mining enables you to make money through bitcoin mining. Virtual currencies are getting popular at a faster pace as a lot of people have started using them. However, one of the most popular virtual currencies is the BTC and since its inception in the year 2009, it has been spreading like wildfire and now, many online businesses have been employing it as a payment method. Although some people are still cautious about Bitcoin as it is linked to dark corners of the webs, it is still considered as a valid currency and anyone can use it online with ease. Moreover, Bitcoins also lured the attention of users by providing them an opportunity of mining.

Info About Bitcoin Mining And Generation Of Bitcoin:

Mining bitcoins can be done with ultimate comforts. The outlook of making more money has increased due to the growing popularity of bitcoins. They also have few advantages and these advantages made it far superior to conventional money for those people who deal with bitcoins. Even though they are existing only in virtual form, bitcoins are considered to be a part of the internet and hence, it is not regulated by any leading authority.


Tech race fuels Bitcoin mining bubble / Izabella Kaminska and Stephen Foley / August 22, 2014 9:26 am

If Bitcoin is a bubble, it is a bubble that began deflating on November 29 2013. At its proudest moment the price of one unit of the much-ballyhooed virtual currency was $1,242, which meant the value of all the Bitcoins in the world was just under $14bn.

These days it trades mostly in a range of $450-$650 a coin and at a market cap of $6.5bn. The jury is still out on whether the Bitcoin technology will prove robust and the currency itself will find mainstream use. If the answer to either question is no, then no amount of hot air is likely to keep the price at current levels.

But even as the Bitcoin price decays, there is another candidate for the bubble label: the market for the specially designed computers that hold the Bitcoin network together and “mine” for newly minted coins.

Nicolas Courtois, a senior cryptography lecturer at University College London, has calculated that at least $1bn has been invested in this “mining equipment”, and some miners, who wish not to be identified, suggest that could be a modest estimate.


How I, and Countless Others, Were Conned by TimeToBit

TimeToBit’s slick dashboard / Neil Sardesai / 21/08/2014

The cryptocurrency mining industry is a strange place. Here, we live by the “guilty until proven innocent” maxim. Anything and everything about a mining company falls under question, and if the tiniest thing seems off, we conclude that the company is a scam. And unfortunately, it seems like that’s just way it has to be. Mining scams are a dime a dozen. Some companies don’t even try to hide the fact that they’re scams. Others, however, are a lot more clever. This is how I, and so many others, were conned by TimeToBit.

How They Did It

June 25, 2014 – A little less than two months ago, TimeToBit showed up in the Bitcoin scene and announced “the launch of our Bitcoin Cloud Mining platform – TimeToBit !”. TimeToBit claimed to be a fully registered UK-based company (which was verified by all users) with hashing power ranging from 50 GH/s to 1 TH/s. They offered competitive prices, a special discount for bitcointalk members, daily payouts, and even mining plan giveaways. Several longtime bitcointalk users won the giveaways and reported that the payouts were real, helping legitimise TimeToBit in the eyes of the community. And with the seemingly friendly staff and slickly designed website, everything about TimeToBit seemed great.


Dallas Now Has a Bitcoin ATM / Stephen Young / Aug. 21 2014 at 9:10 AM

Late last month, we told you about BTCity, a startup trying to find the perfect site for the company’s Bitcoin ATM, expected to be the first in Dallas. BTCity still hasn’t managed to get its machine up and running, but a local entrepreneur took the company’s plans as an opportunity to speed up his timeline for getting his own ATM installed.

This week he won the race, placing the ATM pictured above into Buzzbrews’ Deep Ellum location.

“I had ordered [the ATM] like a month ago and I was slowly trying to figure out legally what I needed to do. I saw [the BTCity article] so I really jumped the gun on trying to find a place to it,” Jimmy Scott says. “I can’t let this guy from out of town come beat me.”


Ben Lawsky: New York Can’t Risk Getting Bitcoin Regulation Wrong / Pete Rizzo / August 21, 2014 at 20:45 BST

The New York Department of Financial Services (NYDFS) announced today it would extend the comment period for its proposed bitcoin regulations by 45 days, citing significant public interest in the rules as a key reason behind the decision.

In an exclusive interview with CoinDesk, NYDFS superintendent Benjamin M Lawsky opened up about the decision, emphasizing that he felt the extension both necessary and reasonable given his agency’s need to ensure that the proposed laws, when enacted, have the desired consequences.

Lawsky told CoinDesk that the aim of the agency is to put forward the best regulation possible, adding that while the agency wants to move quickly to put in place policies, it doesn’t want to do so at the risk of getting crucial elements wrong.

Lawsky explained:


BTC Price “Flash Crash”- Manipulation or Growing Pains? / Allen Scott / 2014-08-22 09:11 AM

While Bitcoin is certainly notorious for its volatility, there has been much speculation among Bitcoin community members, financial experts and the general public regarding the latest price drop. The forums have been abuzz with rumors ranging from margin trading to an NSA plot to take over Bitcoin.

As it happened

The price dipped into the low US$440’s, while the price at the BTC-e exchange hit a low of US$309, and even though the price soon recovered in line with other exchanges, the short time window allowed some lucky buyers to acquire reasonable quantities under US$350 per coin.

Many believe that the culprit was BitFinex with its large number of sell order that caused the freefall in price. BitFinex makes it possible for individuals to trade on leverage. In other words, users can borrow money to trade with. This feature was certainly popular with many BitFinex users who were using it to go “long” on Bitcoin. Thus, they were betting borrowed money that Bitcoin’s price would go up to increase the potential windfall.



With the invention of Bitcoin, Satoshi Nakamoto had one goal in mind, to create a peer-to-peer electronic cash system not backed up by the government in order to keep anonymity and freedom. This currency would not allow for transactions on the network to be reversed or accounts frozen in case of fraud. A block chain would confirm these transactions and any public eye could check them.

This concept would prove to be unrecognizable to most people or groups and therefore a skeptic is born. They either do not believe on the concept, or they choose not to think twice because they have been brought up to accept their government backed money. These people could not be the cryptocurrency’s creator because they do not have the insight to advocate it.

Here is a list of 6 people or groups who are definitely not Satoshi Nakamoto:


How many bitcoins does it cost to maintain the Bitcoin network? / Tim Swanson / August 21st, 2014

Let us be quite clear: if Bitcoin was a cheaper or more efficient transaction method, for-profit organizations such as large payment processors would have forked it long ago and would likely already be using it internally in order to shore up their margins. They do not because it is not cheaper, in fact, it is significantly more expensive to maintain than any of a number alternative centralized methods (e.g., running MongoDB on a Pi server).

The bottom line to them is that the marginal value in these centralized solutions has to be greater than the cost of maintaining it (MV>MC) otherwise none of the companies would be able to generate a profit. As described below, Bitcoin currently does not fulfill that characteristic.

And this error – that Bitcoin’s network is cheap or free – is an oft repeated theme in the Bitcoin community and shares a common root in the seen versus unseen’ in the aggregate transaction costs of the network.


MadBitcoins Live: Bitcoin $525, Amagi to refuse Fiat, Coinbase bans Gambling, Live Free or Bitcoin

MadBitcoinsStreamed live on Aug 21, 2014

First bitcoin ATM opens for business in Manhattan / Kaja Whitehouse / August 21, 2014 | 9:31am

Manhattan’s first bitcoin ATM launched Thursday in the historic West Village — prompting a few curious onlookers to open their digital wallets on the spot.

The Lamassu-made machine, which costs a cool $6,500, was installed at Flat 128, a luxury store on Christopher Street that sells UK-styled jewelry and home goods.

The machine allows people to insert cash to be transferred to their bitcoin wallets.

One caveat: The ATM (or BTM, bitcoin teller machine) is currently a one-way street that only allows cash in — not out.

That could change in the coming months, however, as Lamassu plans to release software that will let the machines exchange cyber currency for cash, said founder Zach Harvey.