Jaron Lukasiewicz wants to find the room where the rock stars hang out.
The 29-year-old CEO of US bitcoin exchange Coinsetter radiates energy as we pace the halls of Miami’s famed Fillmore Theatre, cutting past utility rooms and navigating stairwells adorned with images of rock ‘n’ roll excess.
It’s early in the first day of the North American Bitcoin Conference and Lukasiewicz has just delivered an impassioned speech, one in which he railed against the perception that bitcoin is a viable alternative to credit cards for consumers. Though not necessarily related directly to his business-to-business (B2B) exchange, he seems unusually passionate about where the industry is going wrong in this area and how it needs to refocus.
31 January 2015 | Gerrard Hartley | cryptocoinsnews.com
In yet another case of suspicious cloudmining scandal, it looks like Chabat Mining is down for the count with no signal or sign of life. Additionally, it seems as though they aren’t paying out to those that held contracts on their site who can no longer access the web page.
When visiting their page, users are greeted with a 403 Forbidden error. There is no message stating there are problems. There is no notification to users with active mining contracts. There is only a message without any consolation.
Chabat Mining hasn’t been paying out for an extended period according to concerned users onLitecoinTalk. The first report is on January 13, 2015 and reads as follows:
30 January 2015 | Neil McAllister | theregister.co.uk
Roundup The trial of accused Silk Road ringleader Ross Ulbricht continued despite inclement weather in New York City this week, with prosecutors seeking to rubbish Ulbricht’s attorneys’ earlier claim that someone else ran the darknet drugs souk.
On Monday, Gary Alford, a special agent with the US Internal Revenue Service, gave evidence linking Ulbricht to accounts on Bitcoin and drugs discussion forums where he allegedly advertised Silk Road, describing the site as “an Amazon.com for drugs.”
Alford testified that in one post from October 2011, Ulbricht said he was looking for an “IT pro” to help with the site and asked interested parties to contact him at his own Gmail address, the Financial Times reports.
Two years ago, the entrepreneurs in bitcoin were inexperienced and those investing in the space were merely a collection of friends, according to Meyer “Micky” Malka.
Flash forward to today and the Bitcoin Foundation board member and founder of VC firm Ribbit Capital can find more than a few reasons to be optimistic about the future of bitcoin, even in the face of continued price declines, issues in the mining community and questions about the commercial viability of bitcoin technology.
We have a large downward channel acting as the top of a descending triangle that will take us to the low $200s. We had a failed H&S that took us to $245 where we were stopped by the lower end of the breakout zone before the big parabolic move.
A Head and Shoulder pattern is a term used to describe a stock following the below events:
1. It rises to a peak and subsequently declines.
2. Then, the price rises above the former peak and again declines.
3. And finally, rises again, but not to the second peak, and declines once more.
Genesis Mining has grown quickly amidst a rapidly-expanding cloudmining market and is now the SHA and Scrypt mining industry leader. The German-directed, Bermuda-registered corporation offers not only Bitcoin mining contracts but also diversifies its hashing power to “the most promising altcoins” such as Dogecoin and Litecoin.
In a follow up to our previous interview back in July of 2014 with the company, we decided to check up on Genesis Mining to see how the suppressed bitcoin price has impacted their operations, the current state of the cloudmining industry, and what is in store for the company in 2015. We caught up with founder Marco Streng to get the inside scoop.
30 January 2015 | Tuur Demeester| bitcoinmagazine.com
A technology is called “disruptive” if it creates a new market that first disturbs and then displaces an earlier technology. Bitcoin is potentially such a technology and much more. The fact that it can disrupt the largest and most interconnected marketplace in the world—money, banking, and finance—makes it perhaps the most promising investment opportunity of our age.
Unlike our current increasingly unstable and unpredictable financial system, Bitcoin has 21st century technologies at its very core. The digital currency and clearing network is open source, mobile, peer-to-peer, cryptographically protected, privacy oriented and native to the Internet. The fusion of these technologies allows for a level of security and efficiency unprecedented in the world of finance. These are some of the areas in which Bitcoin-oriented technology can directly compete:
“I have complete confidence in the new leadership, but cryptocurrency is no longer in their plans. “
He added that he was “fairly confident cryptocurrency will return to Reddit in the coming years”, but that it would “have to wait a while for things to calm down” – a reference to the company’s current situation after the sudden departure of CEO Yishan Wong.
Bitcoin, which online news site Quartz called the worst investment of 2014, continues on a turbulent path, hurt by security fears and other issues but retaining some notable investors as advocates.
The digital currency plunged 22% the week of Jan. 11 alone, according to CoinDesk.com, a bitcoin-focused news site.
That drop stemmed from a Jan. 4 cyberattack on Bitstamp, the world’s second-largest dollar-bitcoin exchange. Hackers looted 18,000 bitcoins, or $5 million in client funds, from the Slovenia-based Bitstamp exchange, according to Pantera Capital, the only outside investor in Bitstamp.
Early last year NYU became the first major institution to invite its students to take part in a bitcoin related course. Now it looks as though other major institutions are ready to follow suit – the latest being the world renowned Princeton University.
Starting in April 2015, Princeton will commence teaching of a course called “TC-Tech: Bitcoin andCryptocurrency Technologies.” Strangely, the course is listed as not being an official Princeton course on the University’s website – but from what we can tell this is due to the fact that the course will be taught online (via webinars), and is purely an exercise in semantics.
From the University’s official website, the course will focus on the following questions:
30 January 2015 | Nermin Hajdarbegovic | Coindesk.com
Australian bitcoin company digitalBTC has dissolved a supply agreement with cloud mining service CloudHashing.
Under the agreement, which was finalised in March, CloudHashing was to run digitalBTC hardware in data centres in Iceland and Texas to mine bitcoins.
Today, however, digitalBTC announced that it was pulling out of the deal, filing an announcement with the Australian Securities Exchange (ASX) that stated the companies had agreed to dissolve the supply deal.
Under the settlement, CloudHashing’s shares in digitalBTC are to be cancelled.
30 January 2015 | Nermin Hajdarbegovic | Coindesk.com
Polish bitcoin exchange BitMarket.pl has had its bank accounts suspended by Bank BPH.
BPH initially said the suspension was the result of a technical glitch, but later claimed it was due to outstanding debt and lack of credentials, according to BitMarket.pl. The exchange said it discovered its BPH accounts were suspended on 26th January.
BitMarket.pl founder Michal Pleban told CoinDesk that the real reason for the bank’s decision was prompted by a query filed by the local district attorney’s office. The filing revolved around one particular transaction on the exchange, which was allegedly performed with stolen funds.
“For that reason, the bank decided to close all our accounts and refuse our business,” he said.
The exchange never received a notification from the bank or the authorities, according to Pleban. He said he was unable to see the query that eventually prompted the bank to freeze the accounts.
Bitcoin is sometimes thought of as the prime anonymous cash of the Internet, believed to be as untraceable as an under-the-table payment to a babysitter or a drug dealer.But the dramatic trial of Ross Ulbricht, a 30-year-old man accused of running the contraband Silk Road marketplace, is finally putting those misconceptions to rest.
30 January 2015 | Luis Buenaventura | Techcrunch.com
Editor’s note:Luis Buenaventura is a co-founder and head of product at Rebit.ph, a bitcoinremittance startup wholly owned and operated by Satoshi Citadel Industries in the Philippines.
There’s a lot of rhetoric about bitcoin and its impact on the $430 billion international remittance industry. One of the cryptocurrency’s most obvious uses is, after all, sending money across the planet with roughly the same effort as sending an email.
The potential effect on emerging markets — savings in aggregate that are larger than most countries’ education budgets — cannot be overstated. But beyond all the pontificating there is still the practical implementation that has yet to be sorted out.
30 January 2015 | Venzen Khaosan | cryptocoinsnews.com
Bitcoin Price is in search of a value floor as it gears up for the descent to $200. The chart technicals are clear about the drop but leave us wondering if it will be the final low for this market cycle.
This analysis is provided by xbt.social with a 3 hour delay. Read the full analysis here.
It’s no secret that the bitcoin community can be divided when it comes to the topic of regulation – some believe it’s necessary to bring bitcoin to the mainstream and others believe that bitcoin was built specifically to circumvent regulation.
To get a better idea of where the industry stands as a whole, CoinDesk wants to hear directly from our readers about how they view bitcoin regulation around the world.
Please take a minute or so to fill out CoinDesk’s regulation sentiment survey below:
In a recent blog post, Coinbase introduced their new Coinbase Community, a discussion platform for their many users. Coinbase has also recently launched a new Bitcoinexchange called Lunar which is only available in roughly half of America currently. The Bitcoin company has also recently celebrated its 2 millionth wallet signup, an impressive feat.
A New/Old Community
The Coinbase Community site is designed to be used:
For Consumers: What features would you like to see in your bitcoin wallet? What bug has been annoying you for months? We would love to hear from you how we can be serving you better.
For Merchants: How are you thinking about accept bitcoin payments? How have you integrated it into your business? Let us know what is working well and what isn’t.
For Developers: Are you trying to integrate bitcoin into a product or service? Get your API questions answered by other developers, and discuss strategies for launching your app on the largest bitcoin API platform.
The Coinbase Community uses Discourse.org’s forum software and offers popular features such as nested conversations, mobile support, and up-voting. Of course, Coinbase has integrated its almost ubiquitous tip button into the platform as well so community members can tip each other for good advice. Everyone that has a Coinbase account is automatically signed up for a Coinbase Community account, so if you have any questions about Coinbase, or bitcoin in general, it seems that there is a new water cooler in town for discussion.
The team behind a regulated e-money issuer has launched a bitcoin exchange called Digital Securities Exchange (DSX).
The issuer, ePayments Systems Ltd, has been an authorised electronic money institution with the UK regulator, the Financial Conduct Authority, since last July. ePayments Systems has in turn made DSX its agent.
The move is meant to position DSX to capture the market for sterling-bitcoin trading, said Mike Rymanov, who founded and leads both ventures.
29 January 2015 | Christian de Looper | techtimes.com
The cork was barely out of the champagne bottle when the celebration about bitcoin’s first U.S. exchange came to a grinding halt this week due to a license snafu. While it will likely be cleared up quickly, the delay adds another question mark on whether the beleaguered cryptocurrency will finally start taking root on Wall Street and with consumers.
On Jan. 26, bitcoin announced a new exchange, Coinbase, the first regulated U.S. exchange. It was big news that gave bitcoin supporters and fans something to finally cheer about.
30 January 2015 | Dean Walsh | cryptocoinsnews.com
Marco Streng, the CEO of cloud mining operator Genesis Mining, has reaffirmed his company’s long-term commitment to the industry in an interview with CryptoCoinsNews.
Striking a positive note on the future of an industry which has been in turmoil over recent months, Streng claims that his company is currently in a “favourable position”. They could keep operating even if the price of btc were to fall as low as $100 USD. Even with a price lower than that, there would still be a demand for hashpower, as Streng notes:
“Bitcoin is not the only cryptocurrency and our proprietary system and technology gives our users the unique opportunity to also diversify the hashpower over other altcoins.”
There is no doubting that the Bitcoin mining industry has seen its fair share of troubles recently. Miners already operating in a competitive industry have struggled to cope with the declining value of the coins they mine against fiat currencies like the U.S. dollar. By investing many thousands of dollars in hardware, miners are effectively betting that the price of bitcoin in the future will be high enough to justify their investment. So when the price drops as dramatically as it did throughout most of 2014 and even into early 2015, miners are hit hard. Combine this with competition from hobbyists who do it for the fun and therefore don’t need to come out in profit, and you come up with a recipe for disaster.
An Israeli cyber intelligence analyst claims that ISIS is using the dark web and bitcoin for recruitment and fundraising. Unregulated system “gaps” could indeed be exploited by terrorists seeking refuge in the anonymous network, experts say.
Haaretz newspaper quoted an Israeli analyst who said he traced an ISIS funding website and “has uncovered concrete evidence that a terror cell, purporting to be related to the Islamic State – is soliciting for bitcoins as part of its fundraising efforts.”
The fundraiser reportedly called for the support of a “new Islamic front – both in the United States, and around the world.” It allegedly called for donations to be made through various means, all of which – “besides economic support through bitcoin” – should have been done with much caution “due to the security apparatus’ recent crackdown on any and all Islamic change fronts here in the United States.”
Bitcoin’s ideological foe is becoming its saving grace.
To many Bitcoin enthusiasts, the decentralized currency’s allure was that it was designed to exist beyond the reach of government regulation. Free from central banks, its value wasn’t tied to government policies or geopolitical factors.
But now it seems the very regulation its creator or creators (since we don’t actually know who first minted Bitcoin) guarded against is what’s now buoying the cryptocurrency’s price.
29 January 2015 | Venzen Khaosan | cryptocoinsnews.com
Bitcoin Price dropped over the edge during yesterday’s session, and the slide continued for most of today. Price made the usual stops along the way: 38%, then 50% and then made its way to 62% where the bulls are attempting to stage a comeback.
This analysis is provided by xbt.social with a 3 hour delay. Read the full analysis here.
Bitcoin Trading and Price Analysis
Time of analysis: 15h00 UTC
Bitfinex 15-Minute Chart
Analysis quoted from xbt.social:
The full candle history has been restored at the 15-minute timeframe in Tradingview’s chart. Here we can see, for the first time today, the exact wave structure of yesterday’s decline. The B wave is the horizontal structure around 38% retracement, and this last wave down is wave C (or part of it). Structurally, the two declining waves (A and C) are very similar, and it appears that at least another wave of decline is due. Price hit the 62% retracement level near its confluence with the descending Fib line from November’s high.
Hong Kong-based exchange Gatecoin has launched after a lengthy setup process, promising segregated bank accounts for customers in 40 countries across five continents.
The company says it is the first to offer this kind of security, which is common in the non-crypto forex exchange world. This means customer funds are kept in separate bank accounts to the company’s own funds, and thus can have funds returned in the case of a force majeure financial event that depletes company reserves.
Gatecoin is a licensed Money Services Operator in Hong Kong. It offers bitcoin trading in USD, EUR and HKD through its low-latency matching engine, and plans to implement Ripple in the next few weeks.
Circle is a consumer financial services company founded by internet pioneer Jeremy Allaire to “transform the world economy with secure, simple, and less costly technology for storing and using money.”
Allaire’s and Circle’s vision harkens back to the 1990’s when the Internet was a brand new idea, ready to transform and be transformed. Today the internet is the central to how people and businesses communicate. Allaire sees bitcoin and its open standards and protocols as that future for the way in which money is sent between people and businesses worldwide. Circle is building the products that will help people take advantage of that opportunity and over time, advance the vision of “the internet of money.”
The recent drop in energy prices has dominated financial headlines in recent months, with the fallout having been wide ranging and somewhat conflicting. Consumers have received what amounts to a tax cut, and with more money to spend that’s good news for retailers. At the same time, stocks are experiencing a decent level of volatility, plagued by many of the same factors that are causing oil to plummet, including soft demand, a strong dollar and continued economic weakness across Europe, Japan and even China.
Receiving far less press attention is the ongoing collapse of Bitcoin prices. While this is not unexpected given the house of cards Bitcoin was built on, no one should forget that only a short time ago Bitcoin had reached manic levels. Investors worldwide – including high-powered venture capital firms and well-respected tech entrepreneurs – sang its praises, pouring millions into the virtual currency and confidently declaring that it was the next big thing.
USAA’s recent entrance into the bitcoin space may have been driven, in part, by interest in the technology among its own membership.
The Fortune 500 financial services company, based in Texas, was among a diverse group of investors that took part in Coinbase’s $75 million Series C funding round, which was announced earlier this month. USAA, founded in 1922, focuses primarily on the US military and veteran market.
The financial group’s head of corporate development, Vic Pascucci, said that USAA envisions digital currencies playing a possible role in future services, and cited internal data that points to interest in bitcoin among its customers.
If anyone still believes that bitcoin is magically anonymous internet money, the US government just offered what may be the clearest demonstration yet that it’s not. A former federal agent has shown in a courtroom that he traced hundreds of thousands of bitcoins from the Silk Road anonymous marketplace for drugs directly to the personal computer of Ross Ulbricht, the 30-year-old accused of running that contraband bazaar.
In Ulbricht’s trial Thursday, former FBI special agent Ilhwan Yum described how he traced 3,760 bitcoin transactions over 12 months ending in late August 2013 from servers seized in the Silk Road investigation to Ross Ulbricht’s Samsung 700z laptop, which the FBI seized at the time of his arrest in October of that year. In all, he followed more than 700,000 bitcoins along the public ledger of bitcoin transactions, known as the blockchain, from the marketplace to what seemed to be Ulbricht’s personal wallets. Based on exchange rates at the time of each transaction, Yum calculated that the transferred coins were worth a total of $13.4 million.
Synero the next gen social network has just launched its Amp Coin recently which is set to revolutionize your world. Social networking and Cryptocoins have been moving closer with recent technological developments but Synero comes as the biggest integrator of both Cryptocoins and Social networking so far.
Synereo is a next-gen social network that puts security, identity, and community management directly under the purview of you – the user, respecting your attention and rewarding you for your activities on the social network.
As seen above the Synero network prides itself in being a simple, functional and community based project allowing the users to change the course of development and influence future decisions. The token attached to the service has also allowed the company and platform to give a unique feature to consumers who may already be attached to a whole host of other social networking sites.
GoCoin has added three new fiat currencies as payout options for merchants – euros, pound sterling and Singapore dollars.
The announcements come amid a string of new details about the company’s business progress. Since raising $550,000 in November 2013, GoCoin has arguably become a big-three payment processor alongside BitPay and Coinbase due to its agnostic approach to digital currencies, accepting litecoin and dogecoin alongside bitcoin.
In statements, CEO Steve Beauregard asserted that the company has “greatly exceeded its growth projections in 2014″, and is well-positioned for success this year.
29 January 2015 | Staff Reporter | wantchinatimes.com
Bitcoin, the major virtual currency, suffered a bumpy start in 2015, plunging near 13% in value in the first two weeks of the year to 1,100 yuan (US$176), less than half of its worth at 2,500 yuan (US$400) in November last year.
Another recent setback for the Bitcoin market is theft of 19,000 Bitcoins at Bistamp, a leading Bitcoin exchange in Europe, inflicting US$5 million in losses for the latter.
The loss has aggravated the plight of the global Bitcoin market, triggering a selloff which has driven down the global price of the virtual currency to under the US$200 mark, representing a 20% decline in recent months, a scale even steeper than the drop in oil prices and the depreciation of the ruble. The plunge has triggered a stampede, as individual investors rush to quit the market, following in the steps of major speculators.
29 January 2015 | Joel Dalais | cryptocoinsnews.com
The Bitcoin Foundation Elections Committee has released a unique new project that has been in the works for the last year.
“a new official Distributed Opinion System for the Board Elections” ~ Michael Toomim.
With a newly created website dedicated to this system, The Distributed Opinion can be found here, https://bitcoin-election.consider.it/. Foundation members and non-members can view the candidates and their current standings with regards to the opinions of the Foundation members.
Bitcoin Foundation members can change their opinions at any time after giving their initial thoughts on a candidate and placing their initial sliding perception. From a negative to positive, or anywhere in between, members can leave their rating on one or multiple candidates.
29 January 2015 | Michael Grothaus | knowyourmobile.com
Bitcoins have been all the rage for the last few years. It’s made some people millionaires overnight and, with the security breach at Mt. Gox, made others very leery of the digital currency. Countries like China want to regulate the currency, while other countries say they’ll never recognize it as legitimate.
Don’t know what Bitcoin is? Here’s a primer from the company behind it: “Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.”
Peer-to-peer bitcoin marketplace LocalBitcoins suffered a hack this week that resulted in the distribution of malware and a loss of customer funds.
Affected users will be granted refunds after taking steps to address security vulnerabilities, according to the company.
LocalBitcoins vice president Nikolaus Kangas acknowledged the hack on 27th January in a forum post, outlining how the intrusion took place through its LiveChat account, with an estimated 17 BTC lost from customer wallets.
Alleged theft attempt, BTC giveaway, Amsterdam hackathon, upcoming Bitcoin Fun Fair, and other events in CoinTelegraph’s news roundup for Wednesday, January 28
‘Goxed’ in China
Chinese Bitcoin exchange 796 mistakenly lost 1000 BTC in a mishandled customer service request. Nelson Yu, President of Americas Division at 796, told CoinTelegraph:
“In the last 24 hours, our security team worked around the clock to trace back the codes and processes. At this moment, we have a pretty good idea of exactly how they did it. This was not a generalized attack. The hacker’s strategy was precisely calculated and well targeted to compromise a certain weakness on our server.
Precisely speaking, the wallet system is not affected at all in this event. The theft happened during the transaction of the fund. That’s where the hacker attacked.
Due to this nature, major shareholders have carried out their obligation to our customers in covering this loss of fund. The remedy came from the major shareholders’ unpaid dividend.”
29 January 2015 | William Suberg | Cointelegraph.com
Israeli web analyst claims that Islamic State is continuing to use Bitcoin as a means of funding. But the evidence he quotes is not enough to point at a trend as the amount mentioned was only 5 BTC. Taking into account the spread of cryptocurrencies in Israel itself, the statement appears to be just an example of Bitcoin-related media hype.
A report by the Israeli news source Haaretz cites a senior web analyst who told the publication that “There was smoke, and now we have found the fire,” following discovery of messages purported to be from IS members posted on forums hidden on the Dark Web.
29 January 2015 | Nermin Hajdarbegovic | Coindesk.com
New research from Singapore-based web intelligence firm S2T suggests Islamic State (ISIS) could be using bitcoin for fundraising.
Israeli daily newspaper Haaretz has reported that S2T analyst Ido Wulkan managed to find concrete evidence linking an ISIS cell based in the US to fundraising activities. The cell apparently used the dark web and bitcoin to cover its tracks.
Wulkan found a dark web site that urged supporters to donate bitcoin to the cause. The message, posted by a user named Abu Mustafa, stated that bitcoin donations are accepted by the cell.
29 January 2015 | Kyle Torpey | insidebitcoins.com
NEW YORK (InsideBitcoin) — With the recent news of the “regulated” Coinbase exchange, as well as the upcoming Gemini bitcoin exchange from the Winklevoss Twins, it makes sense to take another look at the relationship between regulators and bitcoin companies. There is still a clear divide between those who believe regulators should be ignored and those who want to work with government officials in order to create a clear regulatory environment. Although working closely with regulators has worked well for certain bitcoin-related businesses, such as Circle and Coinbase, attempting to do the right thing has not worked well for other actors in the space.
Federally regulated bitcoin exchanges seem to be becoming a trend. Paul Chou, a consultant and former Goldman Sachs trader is readying LedgerX Bitcoin derivatives exchange and clearing house.
LedgerX seems like a service that could help Bitcoin derivatives come a step closer to additional legitimacy by being fully regulated. While working for Goldman Sachs, Chou was responsible for the development of algorithmic strategies for equity trading for U.S. and Japanese markets. He also developed a set of cross-asset strategies and devised a method to unify and optimize the trade flow across hundreds of trading algorithms.
29 January 2015 | Evander Smart | cryptocoinsnews.com
As we’ve been following for you here at CCN, plenty of people are curious to learn more about Bitcoin. It was the fourth-largest “What is” search on Google last year, and this means the interest in Bitcoin is definitely not defined by its US Dollar price. Education is the biggest obstacle Bitcoin faces, both now, and in the future. With that in mind, some of the most prestigious schools in the United States are beginning to teach our brightest minds more about “The Future of Money”.
NYU was the pioneer of this movement to teach the students more about Bitcoin in the Fall 2014 semester. Princeton University has now joined the ranks of the learned for Spring 2015. In response, almost 400 students have already signed up for the course, again, highlighting heightened demand, especially amongst the savvy American youth.