For less than twenty dollars’ worth of Bitcoin anyone can be part of the current surge in global Bitcoin growth.
Between the 21st of May and 6th of June 2014, the global investment company Cryptor Trust Inc., will be offering private shares in its Latin American affiliated company, Cryptor Latam Inc. also known as CLI. This offering has been arranged by the asset management company Cornupia Capital Ltd.
Continue reading “Cryptor Trust, Inc. Offering Global Bitcoin Investment through Cryptor Latam Inc.”
As cybercommerce begins it will lead inevitably to cyber-money.— James Davidson, The Sovereign Individual, 1996
The hype surrounding Bitcoin has gone off the charts in the past year. For those of us who have been involved with digital currency systems since the 1990’s, it is interesting to see how people caught up in the hype think Bitcoin is wonderful but in many cases cannot clearly see the reason why. Other enthusiasts think that Bitcoin is the ultimate solution for all payments.
Continue reading “Bitcoin – A Jack of All Trades is the Master of None”
Kraken, by Payward, is a new bitcoin/altcoin trading market based in Sweden, which has been trending on Angel List for the past few months.
Kraken allows members to fund their accounts and trade using Euro, USD, Won, Bitcoin, Ripple, Litecoin, Namecoin and Ven.
Kraken’s trading books allow USD trades for five crypto-currencies, as well as a pairing of Bitcoin with Litecoin, and trading Bitcoins against the other two fiat currencies (Euros and Won).
Continue reading “A Customer's Review of Kraken”
Bitcoin is fast, secure, nearly free, has a stable supply and has a high level of user control… its just plain better than the banks. You have to wonder why the hell everyone isn’t using it? But the Bitcoin economy is still fragmented and dependent on payment processors and exchangers.
Merchants accept bitcoin only to convert it back into their local fiat currency, and who can blame them? There just aren’t enough bitcoin accepting businesses out there and they have suppliers and landlords to pay. But bitcoin was meant to be a peer-to-peer currency, not a peer to exchanger to bank to bank to exchanger to peer currency.
Crypto will win the currency wars, but it may be a while before it reaches your home town. Bitcoin is better, but change is hard.
Continue reading “Networks will form and needs will be met. The mechanics of Bitcoin adoption.”
It’s a business platform, a digital commodity market, a business game and an autonomous economy that may just work its way into the ‘real’ world. Seventh Continent is a 3D virtual world where you can set up and run a business for real profit in Bitcoin or fiat.
“The idea is to offer a new ‘continent’, the ‘Seventh Continent’, to the Bitcoin community where Bitcoin users can do fair and corruption free business,” explains CEO Gregory Harmati. The Seventh Continent is an “independent, free market restricted only by supply and demand”. It aims to create an economy based on freedom, transparency and fair play.
Continue reading “Your bitcoins are good on the Seventh Continent”
Although the case in question (Crawfurd v. The Royal Bank) happened in the mid-1700s, I think it is highly relevant and bears nicely on the recent controversy surrounding Coinvalidation. This post will also be of interest to anyone fascinated by the history and/or theory of money.
While this particular case involved paper banknotes (which arguably are irredeemably flawed) rather than a ‘hard currency’, it still illustrates nicely the rationale behind a decision which impacted a widely used currency at the time. Of primary consideration in this case was how its resolution would affect the usability of the currency (i.e. a facet from which currency largely derives its value).
As we’re probably all aware of by now, CoinValidation’s plan, if successfully implemented, would presumably lead to the blacklisting of some coins based on their past transfer history (e.g. having at some point been sent to/from deep web contraband marketplaces, having been paid as ransom to malware operators like those of CryptoLocker, having been stolen, having been allegedly ‘laundered’, having been associated with scams/ponzis, &c). In effect, this would destroy the fungibility of bitcoins. Some ‘clean’ coins would be easier to spend and transact with, while other ‘less clean’ or downright ‘tainted’ coins would be more difficult to use. Thus we would be left with a difficult-to-navigate and frustrating-to-use system whereby some coins are worth more than others (due to their varying spendability). And this largely defeats the purpose of a currency as a facile medium of exchange in the first place.
Continue reading “What a landmark legal case from mid-1700s Scotland tells us about the fungibility and the very nature of money– and why we should care in light of the recent CoinValidation controversy.”
Many articles mention, that the limited Bitcoin money supply is a major advantage of this digital currency. The reasoning usually goes like this. Since Bitcoins can only be created through mining and there is an upper limit of 21 million, Bitcoin is supposed to be inflation proof. This article for instance says, Bitcoin “theoretically eliminates inflation”. If this was true, Bitcoins would not lose purchasing power. The Bitcoins I own today would buy me the same amount of goods and services tomorrow. Or a larger amount in the case of deflation.
Continue reading “Bitcoin Money Supply and Money Creation”
Frank Schaeffler, a member of German parliament’s Finance Committee has issued a statement recognizing Bitcoin as “Rechnungseinheiten,” which translates to “units of account”. Many news sources are reporting that this makes Bitcoin ‘private money’ or ‘legal tender’ in Germany.
But what exactly does the designation of “Rechnungseinheiten” mean for German Bitcoin users and businesses?
The German parliament stopped short of granting bitcoin full currency status on August 19, but recognized bitcoins as “units of account” when it formally issued regulations for the popular virtual currency.
Continue reading “Bitcoin is "Rechnungseinheiten" … what does that mean?”
Second Quarter 2013 in summary
Gold jewellery demand rises 37% in Q2 2013, led by Indian and Chinese consumers
Lower gold prices generated a surge in global jewellery demand to 575.5t, the highest volume for five years. In value terms demand was 20% higher than Q2 2012.
Sizeable ETF outflows countered by record bar and coin demand of 508t in Q2 2013
The fall in gold prices led to record demand for gold bars and coins of 507.6t, up 56% in value terms to US$23bn. However, this was mitigated by well-documented outflows from ETFs.
Technology gold demand saw a marginal increase, up 1% in Q2 2013
Demand for gold in the technology sector in Q2 2013 increased by 1% to 104.3t. Price declines and improvements in economic conditions provided a boost to demand from the electronics segment.
Central bank gold purchases slowed in Q2 2013, remain within 70-160 tonne range
Central banks added 71.1t of gold to official reserves in Q2 2013, marking the tenth consecutive quarter of net purchases but 57% down on the previous year.
Total supply shrank 62 tonnes in Q2 2013, driven by 21% decrease in recycling
While Q2 2013 mine production saw a 4% increase year-on-year, the significant reduction in recycling by consumers during the quarter led to the 6% decrease in total supply.
The full report can be read here.
In October 2012 the European Central Bank published a remarkable study on “Virtual Currency Schemes”. At that time, the Bitcoin exchange rate was still stable (about 12 USD per Bitcoin). But only a little later, in the beginning of 2013, the Bitcoin rally started reaching its peak rate of 237 USD in April. This rally led to an intensive worldwide discussion about the nature, challenges and threats of virtual currencies. The ECB report includes two case studies of the virtual currencies Bitcoin and Linden Dollar (of the Second Life virtual community). Based on its findings, it proceeds to discuss the relevance of such private unregulated (at least at the time being) currency schemes for central banks, published as an official view of the ECB.
The ECB is not worried at the moment because the volume of virtual currencies is still low. Therefore it does not see them as a threat to financial stability. But the ECB notes that such virtual currencies could have a negative impact on the reputation of central banks.
Continue reading “Can an overseer overlook some basics? – The ECB on e-money and virtual currencies”