The European Central Bank is finally launching its major quantitative easing (QE) in order to fight the euro zone’s slide towards deflation. But with the evident failure of this monetary policy so far
Saturday, February 28, 2015
Why the European Central Bank is Paving the Way for Cryptocurrencies (Op-Ed)
The European Central Bank is finally launching its major quantitative easing (QE) in order to fight the euro zone’s slide towards deflation. But with the evident failure of this monetary policy so far
Year of the Bitcoin: OKCoin and WeChat Facilitate the Movement of $1.8M in BTC
OKCoin gave away 10 Million RMB and encouraged users to give it to their friends through WeChat, following a growing trend of sending traditional red envelopes through the popular chat program. The pr
Youth Business USA Wants to Empower Low-Income Young Entrepreneurs With Bitcoin
Youth Business USA, a non-profit organization aiming to boost entrepreneurial initiatives from under-served populations, is looking to implement Bitcoin into the organization and "want [their] young e
SuperNET’s Decentralized Exchange Aims to Put an End to Bitcoin Bank Heists
SuperNET version 1.1 Beta has been released on February 26, signaling a new era for cryptocurrencies, decentralized exchanges, and financial privacy alike. It is available for Windows, Mac and Ubuntu.
What Net 'Neutrality' and the Federal Reserve Have in Common
The recent vote in which the Federal Communications Commission (FCC) gave itself more power over the Internet reminds me very much of the Federal Reserve Act of 1913. You know – the legislation that c
Friday, February 27, 2015
BitLicense creator Ben Lawsky warns of potential financial “cyber 9/11”
Ben Lawksy, the author of New York's controversial BitLicense bill and the New York Superintendent of Financial Services, has warned of a possible “cyber 9/11” type attack against US banking.
Bitcoin-friendly Bills Unveiled in Utah, New Hampshire, New York City
Pay your taxes in bitcoin? Maybe, if you live in one of three states now considering bills in support of that option.
In January, Utah Republican state representative Mark K. Roberts introduced a bill, H.C.R. 6, to create a Council on Payment Options for State Services that will study how Utah could accept Bitcoin as a valid form of payment. The bill includes the possibility for Utah residents to pay state taxes using Bitcoin.
In February, eight New Hampshire state representatives introduced a bipartisan bill, NH HB552, to propose that New Hampshire should officially accept Bitcoin for taxes and fees. The bill calls for the development of a detailed implementation plan, followed by operational acceptance of Bitcoin by the state before July 1, 2017.
It seems almost surreal that Bitcoin, often portrayed by the popular press as a means to avoid taxes and hide cash and illicit activities from the government, could find one of its first official applications in tax payments.
The short and pragmatic text of the New Hampshire bill only mentions the financial implications of collecting tax payments in Bitcoin. Republican Representative Eric Schleien believes that the adoption of Bitcoin for tax payment purposes would be a boon for the state, and argues that Bitcoin transactions are cheaper and more secure than those made with credit cards, so that the law would offer both state and taxpayers a more reliable payment option at a reduced cost.
The Utah bill is more visionary. It mentions the important benefits that an official adoption of Bitcoin could bring to the state’s technological leadership and economy:
“Technology industries, including emerging technologies, play a growing role in [economy] and culture. The state must also remain open to new technologies and ideas to continue attracting talented and educated entrepreneurs. [Bitcoin] provides merchants with an attractive alternative mechanism for accepting payments, because transaction fees for Bitcoin are generally much lower than those imposed by other payment processors. “
Reading between the lines, a key passage here is “attracting talented and educated entrepreneurs.” Rep. Roberts seems fully aware that new, disruptive technologies can create fast growth and “iPhone moments” that boost entire industries. He appears to be persuaded that Utah could become a Silicon Valley for cryptocurrency business. Perhaps someday visitors to Utah will be greeted by a “Bitcoin Rockies” sign.
Utah is also the home state of Overstock, a large online retailer that allows customers worldwide to pay in bitcoin. Overstock is also behind one of the most interesting and potentially disruptive developments in the Bitcoin space: their Medici crypto-stock exchange project aims to create an open alternative to traditional stock exchanges such as NYSE and NASDAQ, based on blockchain technology and accepting Bitcoin payments.
The Free State Project, a hardcore Libertarian group based in New Hampshire, greeted the New Hampshire bill with a blog post titled “Bitcoin for Taxes and Fees? Only in NH.”
“New Hampshire is known as a libertarian hot spot, and the Bitcoin community here is strong. Read about the rich connections between Bitcoin and the Free State Project here.”
Meanwhile, last week, Democratic member of the New York City Council Mark Levine introduced a bill that would allow residents to pay for any fines and fees they owe the city using Bitcoin. In an interview with CoinDesk, Levine said:
”It started with realizing how much money the city of New York is losing on transaction fees on credit cards, ultimately it’s several million a year because of all sorts of fees and fines. [I] think that being the first major city in the U.S. to make this move sends a clear signal that we’re innovators here.”
Levine’s arguments are similar to those used to promote the New Hampshire and Utah bills: accepting Bitcoin payments would save the city a lot of money, and a vibrant Bitcoin economy would attract top tech talent to the city.
The passages quoted represent two often conflicting aspects of the developing Bitcoin economy: the business-oriented vision of a regulated Bitcoin economy that informs the Utah and New York City bills, and the free-wheeling Libertarian spirit reflected in the Free State Project comments to the New Hampshire bill. As often happens, future Bitcoin developments are likely to be influenced by both.
Bitcoin Goes Hollywood: An Interview with Gem COO Ken Miller
A guest interview by Jeff Handler
Silicon Valley has become a symbol of technological innovation and achievement in the digital age – a shining beacon of progress and “disruption.” It’s hard to find someone in the Bay Area who isn’t working on some app or technology that promises to change the world forever.
As Bitcoin has grown from an obscure, niche technology embraced by a few small, highly technical circles into an actual (though still obscure) “industry,” it shouldn’t surprise anyone that San Francisco/Silicon Valley has become the de-facto go-to spot for American Bitcoin companies to set up shop.
While the Bay Area is certainly a great spot for a Bitcoin start-up, I invite you to hop on the 101 and travel about 380 miles south to my hometown of Los Angeles (La La Land for you Midwesterners), where a growing group of Bitcoin startups is transforming the City of Angels into a hotbed of digital currency innovation.
Known to some as “Silicon Beach,” LA is now home to several Bitcoin ventures, including Expresscoin, Tether, Holy Transaction, Ambisafe, Gem, GoCoin, Interwallet, and the company I work for, Netki. (If you work for a Bitcoin company based in LA that I did not mention, I apologize for the omission. And please reach out to me, I’d love to connect!)
Known primarily as the entertainment capital of the world, LA is actually a great place for Bitcoin. The monthly Bitcoin meetup, hosted by Gem, has more than 1,000 members, with a waitlist for almost every event. Engaged crowds highlight the real passion and camaraderie that has formed among a growing community that has a strong appetite for Bitcoin growth and adoption in their city.
Los Angeles has a massive immigrant population and acts as a hub for digital content creators (YouTube stars, writers, artists, etc.), making it a fantastic testing ground for two of the “killer” use cases that Bitcoiners are most excited about: remittances and micropayments to content producers.
To gain more insight into what makes LA such an appealing place to run a Bitcoin business, I spent a recent morning on Abbot Kinney Boulevard in Venice Beach, talking with Gem COO Ken Miller about LA tech, Bitcoin adoption, and the Venice Skate Park (where I have some fond childhood memories).
Gem is a secure multi-sig Bitcoin wallet for developers. With Gem’s API, a developer can integrate a fully functional and secure wallet within minutes.
For Miller, a key aspect that makes one location better than others is access to talent. It’s no secret that finding talented software engineers in Silicon Valley is easier than say a Little Rock, Arkansas. (Sorry to Razorback fans out there.) But is it really the only place where tech startups can hope to find qualified employees?
For Miller, the answer to that question is no, and he points to access to colleges and universities as a key component:
“If you’re a tech start-up that needs to start hiring, access to top talent is extremely important,” he said. “Good colleges are a huge part of that, and in LA we’ve certainly got them.”
It’s no secret that Stanford being located in Palo Alto played a huge role in transforming Silicon Valley into the tech hub that it is today, filling the area with talented, forward-thinking young people who would go on to build, drive and invest in the future of technology.
But just as ‘The Valley’ has access to top talent from Stanford and Cal-Berkeley, Silicon Beach has the likes of Cal Tech, UCLA, USC, and the Claremont colleges right in our backyard.
With access to a top technical institution (only MIT is ranked above Cal Tech), the most applied-to university in the country (UCLA, also a top-20 ranked university), and two of the best liberal arts colleges (Pomona is No. 5; Claremont McKenna College No. 8), LA companies have access to a large pool of highly intelligent candidates with academically diverse backgrounds. (Rankings per a 2015 U.S. News report.)
While most would assume that graduation day brings a mass exodus of “tech” people from LA colleges to jobs and companies in the Bay Area, increasingly, this is not the case.
“There’s a growing sentiment amongst these students that the Bay Area tech scene has become saturated, and that it’s a real dog-eat-dog type of environment,” Miller said. “A lot of them want to stay in Southern California, and with a growing number of tech companies sprouting up out here, they actually have real opportunities to work and thrive in LA.”
Line for the Gem booth at USC’s career fair
In addition to LA colleges, Miller notes that Gem has received a number of applications from highly qualified computer science majors at universities such as Michigan and MIT who have expressed their desire to become a part of LA’s new tech scene.
What’s particularly interesting about this is that these students have expressed a desire to do “something different,” noting that “everyone goes to San Francisco.”
In other words, we are now seeing young computer scientists and software engineers who have explored the possibility of life in Silicon Valley and are actively choosing to work in LA instead. While this is not to say that Silicon Beach will replace Silicon Valley as America’s tech or even Bitcoin capitol, these changes are important, and the community should take note.
If you’re thinking about starting a Bitcoin company, or your current startup needs a change of scenery, take a look at LA, we’d love for you to become a part of what we’re building (and the weather’s not too bad either).
First Global Credit Launches Trading Competition with 10BTC Prize Fund
First Global Credit announces a 10BTC trading fund for the winner of a market trading competition. From March 16, users taking part will have a month to trade their way through global financial market
FEB 27 Digest: Gavin Andresen Seeks to Speed Up Block Validation, Coinsetter Aims to Improve Trade with BTC Blockchain
Bitcoin Foundation Chief Scientist and former lead developer of Bitcoin Core, Gavin Andresen, believes to have come up with a solution to vastly speed up block validation, the global bitcoin exchange
American Green President: 'We Need a Healthy, Stable, Bustling Bitcoin Economy'
American Green became the first publicly traded medical marijuana dispensary brand in the world in 2009. Since then, the company has developed retail, brand, and commercial cultivating solutions in pa
Thursday, February 26, 2015
'Igot.com Has Stopped Over $1.2M Worth of Frauds in the Past 6 Months,' Says Founder
In light of users’ complaints over withdrawal delays on Australian Bitcoin exchange Igot, founder Rick Day, responds to clients concerns and sheds light on his exchange's verification process.
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