Unique Bitcoin scam targets Connecticut residents, asks for money to protect family

30 January 2015 | Samantha Schoenfeld | foxct.com

FARMINGTON–A new scam is hitting Connecticut, and it’s a bit out of the ordinary, according to police.

Letters have been sent to residents in several towns–including Farmington, Ridgefield and Redding–threatening to kill a loved one if money wasn’t forked over via Bitcoin.

Farmington Police say there were two complaints in town this week; the letters were addressed to one resident at each address, but included the names of both adults living in the homes.

READ MORE

Coinsetter CEO: Taking on Credit Cards Isn’t Bitcoin’s Big Opportunity

31 January 2015 | Pete Rizzo | Coindesk.com

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.

READ MORE

Coinbase Support Added for Google Now

30 January 2015 | Pete Rizzo | Coindesk.com

Google Now, Google’s mobile on-demand information service, has added support for bitcoin services provider Coinbase.

The news comes amid a service update in which it introduced new “cards” that aim to deliver timely information to Android phone users while removing their need to search for it directly.

CoinbaseThe launch included 40 cards, each based on a company or popular Internet service such as Airbnb, Pandora and Coinbase.

READ MORE

Bitcoin Scam Alert: Chabat Mining Cloudmining Service Unexpectedly Goes Dark

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

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:

READ MORE

Silk Road trial latest: Ulbricht’s Gmail addy appeared on ad for ‘Amazon.com for drugs’

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.

READ MORE

Ribbit Capital’s Micky Malka Talks Bitcoin’s Slow Road to Mainstream

30 January 2015 | Pete Rizzo| Coindesk.com

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.

READ MORE

Bitcoin Prices On The Decline Despite Media Coverage

31 January 2015 | BTC FEED| btcfeed.net

Since a high of $304 on January 26th, Bitcoin prices have fallen 29%. Currently Bitcoin trades as $221 on BTC-E. On January 24th, 2 days before the intermediate high, we wrote how micro trends with certain candle stick formations signaled an upcoming spike. This time, the sharp decline signals that the market is on its way to be squeezed down to the breakout area.

The top 3 positions on tradingview are all SHORT positions.

tradingviewshort

 

The user MoonTrader, suggests that

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.

hns

READ MORE

Published on 30 January, 2015 by World Crypto Network

Published on 30 January, 2015 by World Crypto Network

‘Lower Bitcoin Prices are More in Favor for Bad Actors and Ponzi Schemes’

30 January 2015 | Allen Scott| Cointelegraph.com

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.

READ MORE

Investors robbed of $11 mn Bitcoins in four years: Study

31 January 2015 | IANS| zeenews.india.com

New York: Frauds such as online ponzi schemes have skimmed at least $11 million in Bitcoin deposits from unsuspecting cyber customers over the past four years, a study says.

Bitcoin is the digital world`s most popular virtual currency, with millions in circulation.

“Our calculation of $11 million is almost certainly at the low-end,” said lead researcher Marie Vasek from Southern Methodist University in the US.

“The amount of Bitcoin that depositors have lost to these scams is probably many millions more,” Vasek added.

The researchers identified 41 scams occurring between 2011 and 2014, in which fraudulent sites stole Bitcoin from at least 13,000 victims.

READ MORE

Bitcoin: Perhaps the Most Promising Investment Opportunity of Our Age

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:

READ MORE

Reddit Lets Go Cryptocurrency Engineer Ryan X Charles

30 January 2015 | Yessi Bello Perez| Coindesk.com

Ryan X Charles has been let go from his post as cryptocurrency engineer on social platform Reddit.

The developer, who only this week demonstrated his proof of concept for peer-to-peer bitcoin payments on the site, announced the news in a Reddit post, saying:

“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.

READ MORE

Bitcoin Remains Beleaguered As Investment, Has Fans

30 January 2015 | Tim Lloyd| news.investors.com

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.

READ MORE

Princeton Announces Bitcoin Course!

30 January 2015 | Samuel Rae | newsbtc.com

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:

READ MORE

DigitalBTC Dissolves Bitcoin Mining Agreement with CloudHashing

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.

READ MORE

Bank Suspends Polish Bitcoin Exchange’s Accounts

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.

READ MORE

Bitcoins Are Easier To Track Than You Think

30 January 2015 | Sam Frizell | time.com

The Silk Road trial shows how they can be tracked

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.

Federal agents said they were able to trace 3,760 bitcoin transactions over the course of a year to servers seized in the Silk Road investigation, Wiredreports. A former FBI agent named Ilhwan Yum testified in court that he followed more than 700,000 bitcoins from the Silk Road marketplace to Ulbricht’s personal wallets.

READ MORE

The Bootstrapper’s Guide To Bitcoin Remittances

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.

READ MORE

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.

Bitcoin Value and Price Analysis


Time of analysis: 12h30 UTC

Bitfinex 1-Hour Chart

Bitfinex_Bitcoin_price_chart_h1_19h40_300115_CCN

READ MORE

CoinDesk’s Regulation Sentiment Survey

29 January 2015 | CoinDesk | Coindesk.com

Are you for it, or against it?

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:

READ MORE

Coinbase Community Opens to Coinbase’s 2 Million Wallet Customers

30 January 2015 | Caleb Chen | newsbtc.com

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.

Images from Coinbase.

ORIGINAL LINK

UK Exchange Launches with Backing From Regulated E-Money Firm

30 January 2015 | Joon Ian Wong | Coindesk.com

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.

READ MORE

Bitcoin Exchange Launch Hits Snag Amid Challenges Already in Play

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.

READ MORE

Published on 30 January, 2015 by MadBitcoins

Published on 28 January, 2015 by MadBitcoins

Cloud Mining Will Profit From Bitcoin Price Rise, Says Genesis Ceo

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.

READ MORE

ISIS fundraising in US via bitcoin – report

30 January 2015 | rt.com

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.”

READ MORE

Bitcoin is saved from irrelevance by good old-fashioned regulation

30 January 2015 | Shelly Banjo | qz.com

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.

READ MORE

Bitcoin Trading Retesting The Lows Near $200

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

Bitfinex_Bitcoin_price_chart_m15_22h03_290115_CCN_resized

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.

READ MORE

New Exchange Protects User Funds with Segregated Bank Accounts

30 January 2015 | Jon Southurst | Coindesk.com

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.

READ MORE

Bitcoin Tracker | Week 59

30 January 2015 | PYMNTS | pymnts.com

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.”

READ MORE

Why Apple Pay And Dollars Are Killing Bitcoin

29 January 2015 | Ross Gerber | forbes.com

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.

READ MORE

USAA: Our Members Are ‘Actively Engaged’ in Bitcoin

29 January 2015 | Stan Higgins | Coindesk.com

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.

READ MORE

Prosecutors Trace $13.4M in Bitcoins From the Silk Road to Ulbricht’s Laptop

29 January 2015 | Andy Greenberg | wired.com

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.

READ MORE

Synero, Bringing Crypto And Social Media On A Revolutionary Platform

29 January 2015 | Aleppo Allesadero | btcfeed.net

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.

READ MORE

Bitcoin Processor GoCoin Adds Fiat Payout Options

29 January 2015 | Pete Rizzo | Coindesk.com

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.

READ MORE

Bitcoin clouded by shaky outlook

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.

READ MORE

Bitcoin Foundation Elections: Distributed Opinion System

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.

READ MORE

This is How You Buy And Spend Bitcoin

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.”

READ MORE

LocalBitcoins User Funds Stolen After Chat Client Hack

29 January 2015 | Stan Higgins | Coindesk.com

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.

READ MORE

Mid-Week’s Top News: Bitcoin Giveaway, ‘Risk Free’ Wallet, Venture Capital and More

29 January 2015 | Diana Ngo | Cointelegraph.com

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.”

READ MORE

Israeli Paper Ties Bitcoin to ISIS, Again (Op-Ed)

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.

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.

READ MORE

Research: Over $11 Million Lost in Bitcoin Scams Since 2011

29 January 2015 | Joon Ian wong | Coindesk.com

Scams promising bitcoin riches have netted swindlers at least $11m in the last four years, researchers have found.

Some 13,000 victims handed over their money unwittingly in 42 different scams over that time period, their data suggests.

However, the total amount of funds cheated from victims over this period is almost certainly higher than the estimated $11m the research identified.

READ MORE

Cryptocurrency round-up: Bill Gates hesitant to use bitcoin and Isis on the dark web

29 January 2015 | Anthony Cuthbertson | ibtimes.co.uk

Bitcoin has suffered another significant price fall over the last 24 hours, losing 10% of its value to take its market cap down to just over $3 billion.

The drop has taken it back down to the same level it was at last week, before a price spike brought on by the opening of a new US-based exchange briefly took it above $4 billion on Monday.

Litecoin, dogecoin, darkcoin and peercoin have followed bitcoin’s downward trajectory, falling by between 8% and 11% since yesterday.

READ MORE

Researcher Suggests ISIS is Fundraising with Bitcoin

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.

READ MORE

Bitcoin Regulation: Who’s Being Naive?

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.

READ MORE

Bill Gates: Why the Gates Foundation Doesn’t Use Bitcoin

29 January 2015 | Nermin Hajdarbegovic | Coindesk.com

Software magnate Bill Gates has again spoken out on bitcoin in his third ‘Ask Me Anything’ (AMA) session on social sharing platform Reddit.

The focus of the AMA was philanthropy and the work of the Bill & Melinda Gates Foundation. As a result, Gates’ answer revolved around potential bitcoin applications in charity.

In response to the question “What is your opinion on bitcoins or cryptocurrency as a whole? Also do you own any yourself?”, Gates wrote:

READ MORE

Ex-Goldman Sachs Trader Plans to Open New Bitcoin Derivatives Exchange LedgerX

29 January 2015 | George Krash | newsbtc.com

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.

READ MORE

Princeton Joins NYU: Bitcoin Courses Will Teach Students About Bitcoin

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”.

Princeton Follows NYU’s Bitcoin lead, Unofficially

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.

READ MORE