California Lawyer is Latest Congressional Candidate to Accept Bitcoin

Christina Gagnier is the latest US congressional candidate to accept campaign donations in bitcoin.

The Democrat representing California’s 35th congressional district is a business owner and lawyer who specializes in technology and, more specifically, the Internet.

Gagnier said that several of her constituents had asked if she would begin accepting bitcoin donations, and when guidance issued by the Federal Elections Committee (FEC) in May allowed her to, she embraced the idea.

She told CoinDesk:

“My campaign is particularly focused on meeting voters where they are at, whether that’s showing up on their doorstep to see how I can help or accepting a currency like bitcoin as a way to engage someone in the campaign.”

Gagnier has partnered with Coinbase to begin the initiative.

Innovation vs regulation

Gagnier acknowledged that politicians who speak publicly about their positive experiences with digital currencies could help bring them further into the mainstream. In addition, she continued, Congress needs representatives who bring technological fluency to the country’s regulatory body.

“Technology impacts and will impact every single industry,” she said, citing the recurring theme in bitcoin’s development that technology outpaces the law. “Having a Congress comprised of individuals from a variety of the backgrounds is the way that we get regulation that makes sense and is practical for various industries.”

Gagnier is a founding partner of the tech-focused legal firm Gagnier Margossian LLP. She is also the CEO and founder of JobScout, an online platform where job seekers can learn job-hunting skills.

She said that she wants to see digital currency help the growth of small businesses that operate on- and offline, but that there needs to be more guidance and clarity on the subject:

“When each state has their own set of laws dealing with money transmission and now some states seek to independently regulate bitcoin, it can be really confusing to someone who wants to accept or transact with bitcoin. Some federal guidance and a cohesive legal framework would be extremely helpful.”

For example, she said, California’s bill to make bitcoin “lawful money” doesn’t provide regulations “for the issuance and circulation of bitcoin, but it is a good first step to see how these types of currencies can actually work to benefit our local economy”.

The new election environment

Gagnier is one of several US politicians that have publicly embraced bitcoin, and one of a handful accepting online campaign donations in bitcoin.

In light of the increasing public support, the FEC’s new guidance on campaign donations and the forthcoming midterm elections, BitPay recently announced several new partnerships to help political campaigns take advantage of the circumstances.

The payments processor joined with CoinVox, an organization that advises political campaigns on bitcoin compliance, as well as NGP VAN and Targeted Victory, who offer political campaigns assistance.

Gagnier’s campaign is focused on innovation and new ideas to spur economic growth in her district, she said.

California’s 35th congressional district includes Chino, Ontario, Pomona, Montclair, Fontana, Rialto and Bloomington. It is part of the Inland Empire region of the state and sits within both Los Angeles and San Bernardino Counties.

Source : http://www.coindesk.com

New Zealand Bitcoin ATM Operator Runs into Issues With Banks, Shuts Down

It’s generally with great excitement that a bitcoin ATM launches in new frontiers, but a New Zealand bitcoin ATM operator has announced they’re shutting down operations due to interference with banks.

Bitcoin Central — self-labeled as ‘NZ’s bitcoin ATM provider’ — published a statement on their official website declaring their operations were “now closed,” pointing the finger almost instantly by stating, “Its [sic] the banks.”

Specifically, it would appear as if the operator is unable to secure a banking partner — an issue many bitcoin start-ups have been dealing with.

The statement in full:

Unfortunately, despite complying with all the legal requirements we have been unable to secure banking facilities. Without these the Bitcoin ATM business cannot operate long term. The negativity from the banking sector to Bitcoin also threatens the ATM owner’s other businesses. For me it is prudent to shut the ATM down. If you have any interest in purchasing a second-hand bitcoin ATM with compliance documents. Please get in touch.

The company only operated one bitcoin ATM, having launched it just over a month ago on June 3rd at the Ironbar Cafe in Auckland.

The machine was manufactured by Las Vegas-based Robocoin, allowing for the possibility of both purchasing bitcoin and selling bitcoin.

The company has noted they are registered as a Financial Services Provider, and the ATM did “everything we need to make sure that we comply with NZ laws on its use,” but that apparently wasn’t enough to secure a banking partner.

Alas, such is the story in many different parts of the world, but we’ll just have to see what happens here. Who knows? If they don’t sell the second-hand ATM, perhaps they’ll reconsider re-establishing its presence in the near future?

Source : http://newsbtc.com

Blockchain Returns to Apple iOS with New Bitcoin Wallet

Following Apple’s controversial removal of iOS bitcoin apps in January, the first of the big-name wallets will relaunch on the App Store today.

Blockchain, which already provides hugely popular wallets for both desktop computers and Android devices, has unveiled its new-from-the-ground-up iOS wallet, which it hopes will bring bitcoin to users across the globe.

Prior to Apple’s removal of all apps offering cryptocurrency transactions in January 2014, Blockchain was the most downloaded bitcoin wallet for iOS devices.

Controversial ban

Blockchain’s announcement will likely come as welcome news for the bitcoin community, which protested loudly at Apple’s ban – with some users even shooting their iPhones in protest.

However, for reasons known only to Apple insiders, a new, more open policy was announced at the Worldwide Developer’s Conference in early June, paving the way once more for bitcoin wallets and other apps that transact using cryptocurrencies.

In the weeks since then, the App Store has seen the addition of several bitcoin apps, including an unofficial wallet for Coinbase users and Gliph, a messaging service that lets connected users send each other bitcoin. However, Blockchain is the first of the major players to offer wallet services on iOS since early 2014.

Nicolas Cary, CEO of Blockchain, told CoinDesk:

“The moment Apple signalled a shift in their policy toward digital currency apps, we pulled the iOS project off the shelf and got to work. We wanted to use this as an opportunity to improve the wallet, but we were still apprehensive about dedicating huge amounts of engineering time because it wasn’t clear what types of apps would get through the submission and approval process.”  

He added: “Working with Apple has been quick and easy, and we really appreciate their thoughtful guidance – it’s a partnership we really value.”

The new app

As well as exchanging bitcoin between wallets, Blockchain’s app also allows iPhone and iPad users to make purchases from the fast-growing number of merchants that accept bitcoin – both online and in physical outlets.

That list has this year expanded to include major retailers such as Overstock, DISH, Expedia and, most recently, Dell (for more, see our guide to bitcoin-accepting merchants).

Cary said that Blockchain has rebuilt its wallet app from scratch to improve security, enhance performance, and introduce a new user experience. He explained:

“The app strikes a strong balance between functionality and security. At Blockchain, we always believe in putting users firmly in control of their funds and that hasn’t changed with the new iOS wallet. You’ll also find a new security PIN screen and we have updated the default miners’ fee when sending transactions.”

New features coming

Cary told CoinDesk that the new wallet for iOS will be available for users to download from the App Store today, adding:

“We invite bitcoin enthusiasts everywhere to give it a try. We’re looking forward to adding exciting new functionality going forward, including the very popular Merchant Map from our Android Wallet. Stay tuned for lots of updates.”

He further explained that the return to Apple iOS is “hugely important for bitcoin in general and very exciting for Blockchain”. The release of the app means that the hundreds of millions of iOS users around the world will now have the opportunity to experience bitcoin first-hand, Cary indicated, adding:

“Furthermore, this confirms that Apple is welcoming back the development community to invest, build, and create bitcoin apps again.”

Blockchain is currently the most popular bitcoin wallet in the world with over 1.9 million users. Its website, Blockchain.info, also hosts bitcoin charts, currency statistics, and a block-chain explorer.

Source : http://www.coindesk.com

Ecuador Bans Bitcoin In Favor Of Own National Cryptocurrency

On the 23rd of July, the government of Ecuador effectively banned bitcoin, along with all other cryptocurrencies, reports the PanAm Post. The legislation forms part of a reform of the country’s monetary and financial laws. The bill was approved by 91 members of parliament, with 22 votes against and 3 abstentions. President Rafael Correa, who introduced the reform bill, will sign it into law.

Creation of State “Digital Currency”

The reform bill announces the creation of an Ecuadorian state digital currency, to be backed up by the assets of the central bank, and which will allow the government to make payments in digital currency. The new cryptocurrency is set to function alongside the country’s official currency, although exact implementation plans have not yet been outlined.

In their statement the Ecuadorian National Assembly said:

“Digital money will stimulate the economy; it will be possible to attract more Ecuadorian citizens, especially those who do not have checking or savings accounts and credit cards alone. The digital currency will be backed by the assets of the Central Bank of Ecuador.”

As explained in Article 99 of the bill, the government’s Monetary and Financial Regulatory Committee will be responsible for regulation of the digital currency while the Central Bank of Ecuador will be charged with its implementation and development.

Blanket Ban on Other Cryptocurrencies

Part of the bill (Article 96) is the prohibition of “emission, production, initiation, falsifications, or any other type of [cryptocurrency] simulation, and its circulation through any channel or way of representation.” Concern is raised by the bill’s apparent outlawing of the use and circulation of any currency not authorized by the Monetary and Financial Political Regulatory Committee:

“Violations of these prohibitions will be sanctioned according to what is stated under the country’s Penal Code, and whatever is found will be confiscated along with the purchased products.”

Bitcoin Community Speaks Out

The Bitcoin Community of Ecuador sent an open letter to the National Assembly in which they voiced their concerns, namely the legislation’s threat to Ecuadorians’ right to privacy (as enshrined in the constitution) and, also, imposed limitations on Ecuadorians’ freedom to use other cryptocurrencies, such as Bitcoin and Litecoin.

Additionally, the Bitcoin Community of Ecuador requested inclusion of a clause that delineates the boundary between personal data, on the one hand, and data pertaining to the state-run cryptocurrency’s transaction system, on the other.

“Ecuador, as a pioneer in the creation of a digital state-run currency, must use methodologies that respect fundamental rights. The digital-currency system must be verifiable, and its code must be published as free software, to ensure the system’s privacy through algorithms.” Bitcoin Ecuador letter to ANE

Luis Nuñez, a member of Ecuador’s Bitcoin Community, told the PanAm Post:

“If what will be emitted is a national digital currency, then they must separate personal data from transaction data. At the design level, more than at the political level. History has shown us consistently that politics can be revoked at any time, and [the bill] will not necessarily fulfill its purpose, which is why we require the incorporation of a privacy algorithm and for the code to be verifiable.”

Implications

Ecuador currently uses the US dollar as its official currency, and the new national cryptocurrency will be integrated alongside it. The balance of payments made in each currency remains to be seen, yet, regardless of extent or degree, this move by the Ecuadorian government represents another blow to Dollar hegemony.

For all its challenges of centralization, privacy and openness the Ecuadorian national cryptocurrency experiment represents a controversial move with unknown political and economic consequences. Elsewhere in South America, Bitcoin ATMs are starting to pop up. That Ecuador bans Bitcoin in the name of progress, is truly unfortunate.

Source : http://www.cryptocoinsnews.com

Bitcoin Price Analysis – $590 Support Under Attack

Bitcoin price decline is on the cards again and, with it, the question: “Where will it end?”

A week ago, the market-wide sense had been that a consolidation similar to late-May’s pre-launch contraction was developing – only to shatter at the last moment.

The analysis below (Bitstamp charts throughout) outlines target levels to the downside and considers a wave pattern analysis as pointer to where the market might be heading.

Bitcoin Price Debrief

Last week’s analysis identified a juncture that would determine the immediate trend and whereby we could get confirmation of what stage the Bitcoin price was in, according to its present wave structure. Last week’s chart is posted below and shows the critical juncture circled in magenta.

The crossroads formed by the purple declining channel (projected from the Nov 2013 all-time-high) and the long-term ascending trendline (dotted red diagonal) presented the bulls with an opportunity to stage an upside breakout.

It was proposed that if the bulls failed to grab horn, price would fall back to support at $610 – or the stronger support level at $590. Here is an updated chart of the price action since:

On Thursday (24th July) price action surprised many traders by simultaneously dropping through its 200 period moving average (red), as well as medium term support (solid blue) at $610. Within a couple of hours, the $600 psychological level also gave way and the sell-off halted just short of $590.

Subsequently, a retest of $600 occurred, failed, and during the early hours of Saturday price had dropped back to $590 – briefly dipping to $589 on both the Bitstamp and Bitfinex charts.

So what are the prospects going forward?

Scenario A: Continuing Decline

Should price breach the $590 support level, we could expect continuing decline to existing support/resistance levels – some of them reinforced by Fibonacci extensions of the first declining wave – as projected on the following chart:

Considering that Bitcoin price had (over a week ago) breached the long-term supporting trendline (dotted red diagonal), the current rate of decline is mild. Price is effectively in “free fall” territory, and the bears could aggressively assert decline, at any time and without much technical opposition.

Amongst the likely targets for the initial decline, the writer would, as always, favor those that coincide with Fibonacci levels 1.618 and 2.618. If $590 were to give way.

Scenario B: Pull-back Before the Rally

A strong argument in favor of advance can be made from an Elliott Wave analysis of the chart. There are several examples of clean five-wave advances being printed subsequent to the April low near $340. Additionally, there is evidence that an advancing diagonal may be forming, due to the large degree of the intervening three-wave structures shown by the annotations a-b-c.

The prospect of a diagonal wave unfolding to the upside, although exciting, is mere speculation at this stage. There is just no confirming evidence for it. In fact, any prospect of advance at the present juncture is fraught with risk and is marred by the real price action – which is clearly pointing down. It seems inevitable that price should either

• a) decline to one of the targets mentioned in Scenario A, or
• b) resist decline below $590 and market participants slowly come round (via consolidation) to the realization that longer term trend is pointing upward.

With regards to the above two turn of events (or even in the event of large institutional entry and a jolt to the upside – from $590!), the only way we can be sure of advance would be through objective confirmation on the chart. That confirmation would be for price to get back on top of $610, and then to advance beyond $680 in an impulsive manner. There are large sell orders waiting at $680 (in the Bitfinex orderbook and equivalent level at BTC-China) and $680 is sure to be a future reaction level.

The writer won’t venture to call a bottom at this stage. Unfortunately, the only evidence of advance will be green candles reaching above the levels mentioned – “reaching above” is emphasized so as to mitigate the possibility of Bitcoin price unfolding a larger degree sideways triangle – a potential Scenario C, but best left for the market to confirm by attempting $660 and being rejected.

Disclaimer The writer is fully invested in Bitcoin via BTC-e and Bitfinex. Trade and Investment is risky, but not as risky as some other things out there. Take care only to take action in the market when you are 100% sure of your intended actions for the eventual outcomes. CCN accepts no liability whatsoever for losses incurred as a result of anything written in this report.

Source : http://www.cryptocoinsnews.com

$46k Spent on Bitcoin Mining Hardware: The Final Reckoning

In the two previous articles of this series, Dario Di Pardo listed the highs and lows of having spent many thousands of dollars on pre-ordered bitcoin mining hardware and then having to endure delays, poor communication and broken promises, as some of the companies failed to provide the promised equipment in time.

In this last part of the series , Di Pardo tells CoinDesk which companies finally came good on their promises and which left him wishing he’d just spent his bucks on bitcoin. Di Pardo told CoinDesk, if he had one learned one thing from the experience, it was: ¨No more pre-ordering for this guy.¨

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Vendor: Black Arrow Product: Prospero X-3 (converted to bare chips) Price including shipping: $4,978 Order date: 18th November 2013 Anticipated shipping date: 24th February 2014 Actual shipment date (chips): 11th July Delay: 5 months Status: Converted to ASIC chips

As somewhat anticipated, Black Arrow missed their revised shipment date of 8th May.

According to the company, they have been experiencing issues concerning the miner’s backplane, which are causing almost two months of additional delay.

Black Arrow recently announced the issues to be resolved and that both X-1 and X-3 miner orders would be dispatched by the end of July.

Together with the company’s latest news update, the option to convert pre-ordered miners into bare ASIC chips was provided, implying that each X-3 order could be exchanged for 100 ASIC chips, whereas you would get six chips for an X-1 order.

When a mining company starts offering a miner-for-chips exchange, it might be a good idea to go with the offer, or you could end up with nothing at all, as I learned from my experience with HashFast. With this in mind, together with the now huge delay in shipment and the fact they are not increasing compensation further to match competitors’ prices at shipment time (which they said they would do earlier), I decided to go for the chips.

Obviously, one cannot mine with chips alone. Fortunately, Technobit, a Bulgarian company, would be capable of turning these chips into mining rigs, where each 400 GH/s rig would contain four ASIC chips.

Because Minersource, a mining gear and co-location company as well as Black Arrow’s US-based reseller, organized a group buy for all customers who converted their order into chips, the board assembly at Technobit can now be purchased at a discount. Even more, they managed to provide us a deal where each board assembly can be alternatively paid for with four additional chips.

So with some money on top for chip coolers, controllers and power supplies (controllers and power supplies not necessary when opting for co-location), I would get a 5 TH/s miner with a price tag that matches today’s stock prices, instead of the now overpriced 2 TH/s X-3 miner (excluding the 1 TH/s compensation Black Arrow would send after all current orders have been shipped).

Technobit is currently in the process of assembling all miners for the group buy, which will take about two weeks to complete.

Although none of the X-3 orders have been currently shipped, some X-1 customers are now reporting receiving their hardware.

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Vendor: HashFast Product: Sierra (1.2 TH/s) Price including shipping: $6,696 Order date: 18th November 2013 ‘Guaranteed’ delivery date: 15th February 2014 Status: Bankruptcy announced 7th June (no product or refund received)

Not surprisingly, HashFast entered bankruptcy under chapter 11 on 7th June.
As a result and most unfortunately, when that ship went down, my money went down along with it.

Because I initially wasn’t included in the list of creditors the company presented to the bankruptcy Trustee (no surprise there either), I filed my claim online through the court’s site.

I can only hope at this point that as a result of the reorganization process, I will get at least some of my money back.

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Vendor: Virtual Mining Corporation (VMC) Product: Fast-Hash One Platinum Edition (1 TH) Price including shipping: $6,479 Order date: 24th November 2013 Anticipated shipping date: January 2014 Status: Refunded 23th June

In addition to the Wood Law Firm investigation, Virtual Mining Corporation and its parent company Active Mining Company are now under investigation by the Missouri Secretary of State because the CEO of both companies, Kenneth Slaughter, wasn’t following proper procedures when soliciting investors.

Maybe as a result, shortly after this announcement the company’s website went offline and is now only displaying a refund form intended for former customers.

After applying for my refund using this form, I almost immediately got the order amount transferred to the bitcoin address provided.

Although glad I made it out if this adventure with only some minor remaining health issues, I feel sorry for the many customers still waiting for their money.

If the company will manage to ever get back on its feet, is yet to be seen.

 

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Vendor: Bitmine Product: CoinCraft Desk 1 TH/s (+ 0.4 TH/s compensation unit) Price including shipping: $5,758 Order date: 28th November 2013 Anticipated shipping date: February, week 1 Actual shipping date: 2nd April Delay: 7 weeks and 2 days Status: Miners performing well

Bitmine has manufactured some sturdy mining hardware, with both the 1 TH/s Desk and the 0.4 TH/s compensation unit I received hashing continuously and flawlessly for over three months now.

However, because of the delays in shipment of the CoinCraft Desk and CoinCraft Rig that resulted in many disappointed customers, the company is struggling to keep afloat.

Due to the many refund requests which caused a shortage of funds, Bitmine is now postponing further refunds to customers till as far as October, much to the their frustration – a similar situation CoinTerra customers have been facing.

To raise the necessary funds to survive, the company is now offering hosted mining plans and a revised, lower priced 1 TH/s CoinCraft Desk.

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Vendor: KnCMiner Product: Neptune (converted to 3 TH/s Jupiter) Price including shipping: $10,175 Order date: 2014-01-07 Anticipated shipping date: Q2 2014 Actual shipping date: April 29th Delay: None Status: Miner repaired

 The repair process of the seven broken boards was fairly smooth and a few days after sending back to KnCMiner the broken ones, I received new boards – properly packed this time.

The 28nm Jupiter miner I took in exchange for my Neptune order now hashes away steadily at about 3.1 TH/s while consuming around 3,800 watts at the wall, which averages out to about 1.22 W/GH/s.

The new 20nm Neptune miner that has been shipping as of the end of June, hashes at around 3.3 TH/s while only consuming half the power per gigahash than its younger brother does.

Despite the efficiency improvement and the fact that Neptune customers – at least those who took the time to read the offer’s small print – will additionally receive a compensation unit in August, I don’t think I made too big of a deal when converting my order after all, as I got the Jupiter rig two months earlier.

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Vendor: Alpha Technology Product: Viper (Scrypt) Miner (250 MH/s) Price excluding shipping: £5,450 ($8,984) Order date: 2014-01-10 Anticipated shipping date: July 2014 Delay: None

Alpha Technology eventually announced further increasing the performance of both available Scrypt miners, to match competitor products at shipment time.

The 18 MH/s Viper will now be performing at a minimum of 50 MH/s, whereas the 90 MH/s miner will be hashing at a minimum of 250 MH/s.

While approaching the July shipment deadline, the company went awfully quiet.

Whether this will prove to be a positive thing, has yet to be discovered.

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Vendor: CoinTerra Product: TerraMiner IV 2 TH/s (converted to 2x 1.6 TH/s) Price including shipping: $7,253 Order date: 2014-01-12 Anticipated shipping date: May 2014 Actual shipping date: 29th May Delay: ‘None’ Status: Converted to 2x 1.6 TH/s miners

After still not getting any replies to my emails I sent to the CoinTerra support team asking for a (partial) refund, I took a hint from one CoinDesk commenter and decided to call them instead.

The experience turned out to be pretty similar to participating in a telephone game where you’d have to be the 100th caller in order to win a prize, except that you’d probably win said prize sooner than someone from CoinTerra actually answering the phone.

However, when you get a hold of somebody eventually, you realize the company has some great support representatives working there who really care about your case.

But as time IS money in this business, the company really ought to expand its support staff in order to limit customer frustration.

After a long period of mailing and calling back and forth I took the presented offer of getting an additional TerraMiner IV (1.6 TH/s) for an extra $1,000. Additionally, I opted for the cheaper (ground) shipment option instead, to reduce the extra costs.

Getting two miners for a total of $7,000 excluding shipping costs wasn’t the best offer after all, as a few days after I accepted the deal, you could buy a single, now in stock TerraMiner for $3,000.

My pre-order was finally sent out on 29th May, 7 weeks after they began shipping from stock.

After about 10 days of operation one TerraMiner broke down and had to be sent back for repair. As a result, I lost about a month of (precious) mining time from this machine.

To this day, the hashrate of both rigs combined remains unstable, varying between 2.7 and 3.0 TH/s.

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Vendor: Bitmain Product: AntMiner S3 batch 1 Price including shipping: 0.75 BTC Order date: 2014-06-30 Anticipated shipping date: 20th July Actual shipping date: 20th July Delay: None Status: Hashing

To discover what all the fuss was about, I decided to order the latest AntMiner from Bitmain.

The S3, a product that has been selling like hotcakes since its release, reaches hashrates up to 441 GH/s while consuming merely 340 watts from the wall.

No surprises, no delays, no tricks, but plain getting what you paid for, as you would expect from any other decent company.

Bitmain even offered compensation in the form of a 10% coupon or seven percent refund, because actual specifications were slightly off initial specifications.

Source : http://www.coindesk.com 

Short Term Update: again congestion

XBT/USD is again in a congestion, i’ve already spoken many times about how to measure a congestion in previous udpates but remembering the Romans saying: repetita iuvant (repeating does good) i decided to repeat again the whole concept of price congestion.

Congestion occurs when four consecutive bars open or close within the range of a “measuring bar”. A “measuring bar” becomes such when its price range contains the opens or closes of at least three of four subsequent price bars. Price movement may be broken into three distinct and definable areas:

1. Ledges – less than 10 price bars
2. Congestions – 11-20 price bars
3. Trading Ranges – 21 bars or more with a breakout usually occurring before the thirtieth bar

Now 20 days are gone without a breakout above or below the “measuring bar” (i consider the measuring bar the one of last 30 June) and we are in a congestion and close to become a trading range. The reported channel upper and lower price level is very similar to our measuring bar, from $595 to $640, I expect a breakout above or below these 2 levels within the next ten days because on average a congestion phase for this market never lasted more then thirty days.

I’d be very surprised to see the price still inside this trading range in August, IMO the odds are for a breakout above $640 considering the underlying trend which is pushing up.

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Source: BTC Trading 

CoinDesk Mining Roundup: Miner Meetups and Pool Pressures

With just over 13 million bitcoins mined – a milestone achieved earlier this month – the mining sector is showing few, if any, signs of slowing.

In fact, the past month has shown a new level of activity and awareness in the space, particularly regarding the key issues: scalability, network share and the future infrastructure that will deliver more bitcoins to the system. As Bitcoin Foundation executive chairman Jon Matonis wrote, recent events all point to one overarching outcome: more communication between miners and those with a vested interest in seeing the network succeed.

But beyond the ongoing debate about the 51 percent threat, what else is happening in the mining space? Read on to find out.

Miners set for October meetup in Las Vegas

 

 

In what has been dubbed “the first global conference dedicated to cryptocurrency mining”, Hashers United seeks to bring together the various elements of the mining industry for two days in Las Vegas.

Scheduled for 10th-11th October at the Tuscany Hotel and Casino, the event will feature more than 35 talks and workshops focusing on a variety of subjects. These include strategic planning, hardware management and development, investment and legal compliance.

Tim Draper, the Silicon Valley venture capitalist and recent buyer of the 30,000 Silk Road bitcoins, will take part in the conference’s keynote panel. According to the official event website, Draper will discuss the future of digital currencies, including the economic, monetary and legal implications of their development. Other speakers at the event include Charlie Lee, the creator of litecoin, and Vitalik Buterin, founder of the Ethereum protocol.

Hashers United is being organized by Final Hash, a mining contract company based in Houston, Texas. In a statement, the company’s executive technical director, Marshall Long, said that the industry is at a critical juncture and a forum for mining-oriented discussion is needed.

He remarked:

“We’re in contact with miners every day and their needs just aren’t being met via current conferences or even online. It’s time for a ‘real world’ forum where everyone, no matter their experience, can have an open and frank discussion about the key issues they are facing and how as a community we can help each other to overcome them.”

The full agenda – still being released in the run-up to the event – can be found here.

‘Mysterious’ founder of Avalon joins Weibo

 

The founder of bitcoin hardware maker Avalon has opened a Weibo account and begun interacting with the community.

Known under the moniker ‘ngzhang’, the Avalon founder conducted an online contest timed with the World Cup that saw the distribution of one hundred Avalon products to participants. As reported by Chinese bitcoin news site Bitell, the Avalon leadership seems to want to build new bridges with its customer base.

 

Most notably, ngzhang promised greater transparency between Avalon’s customers and the company itself. In the past, community members have criticized the company, and its privacy preferring leader, for seemingly failing to take complaints about product issues seriously.

Moving forward, ngzhang pledged to be more responsive to customers, with the social media profile opening and the World Cup-themed giveaway seen as possible diplomatic overtures.

As the Avalon founder said in a Weibo post:

“Finally, no more silence for Avalon.”

BTC Guild declares closure possible

 

 

One of the concerns within the community regarding the BitLicense proposal from the New York Department of Financial Services (NYDFS) is the risk that businesses within the space will be forced to shut their doors. At least one bitcoin mining pool, BTC Guild, has acknowledged that possibility in a recent statement to its user base.

BTC Guild currently comprises roughly seven percent of the bitcoin network hashrate, and in the past has represented as much as 15 percent of the network.

The pool operator explained in a 19th July statement that, under the proposed regulations, a mining pool of its size would face significant financial burdens attempting to comply, saying:

“Under the current proposals (subject to public comment and revision), operating a pool within the US will be impossible to do legally without obtaining significant personal information on all users, not just those in the US. There would also be significant financial costs which would exceed the amount of money the pool has generated since inception. Since there is no way anybody will mine on a pool with those requirements, it means that any pool in the US will be forced to shut down, or operate illegally and hope they’re ignored.”

BTC Guild added that, should the regulations be passed, it would be forced to shut down. However, the operator continued, legal counsel is still being consulted and closure is not anticipated at this time.

Bitmain lowers Antminer S3 output estimate

 

 

China-based bitcoin mining hardware maker Bitmain has announced that its Antminer S3 mining ASIC will ship with a lower baseline hash rate average.

The company announced in a 14th July post on the Bitcoin Talk forum that instead of the previously announced average of 478 GH/s, the S3 would ship with an average stable rate of 441 GH/s. However, Bitmain said that the devices could be overclocked to the previous number, and that instructions for doing so are forthcoming.

The company explained:

“When we were doing the first mass production, we found that not all of the S3’s DC/DC module could be stable enough to support the 478GH/s speed. After long time testing, all of the S3 run stably at 441GH/s, which however is 7.7% less than the 478GH/s we have announced.”

With apologies for the lowered estimate, Bitmain now offers its customers different options. They can opt to receive a 7.7 percent refund – equivalent to the estimated reduction in hashing power – or a 10 percent discount coupon on a future purchase.

Delivery of the S3 units is underway, with the next batch expected to begin shipping in early August.

Hanging up the miner hat?

 

 

Given the rising mining difficulty and the ever-climbing scale of hardware, it’s no surprise that some miners simply can’t afford to stay in business.

A long-running thread on Bitcoin Talk on the topic of shutting down received some recent activity, with several members telling their stories about how they manage to stay open – or finally close their doors and hang up the ASICs, as it were. Some users said that despite their best efforts, keeping the machinery running just didn’t keep up with the electrical costs.

The conversation focused, in part, on whether or not mining profitability for hobby-scale miners will continue. With margins as tight as they are, some users mused that they won’t be able to stay in business if the price of bitcoin continues to fluctuate in the $500-$600 range. Others said that they continue to mine even  if they spend more on electricity than they make in bitcoin, citing the hope that the digital currency will grow rapidly in value in the months and years ahead.

One forum member commented that, in spite of shutting down, they didn’t have any bad feeling about their prior investments or the prospect of getting involved again one day.

He said:

“Have fun. It is for fun. I paid off the miners and then some with the earnings, and will see what happens to it. Maybe I will buy another miner or miners at some point.”

Source : http://www.coindesk.com

Why Timothy Coles is Selling His $2 Million Gold Mine for Bitcoin

 

Timothy Coles is the man behind the profitable gold mine in the Yukon city of Dawson currently for sale for just over 3,200 BTC on luxury marketplace BitPremier.

With more than 30 years of experience in the gold mining industry, Coles brings a unique perspective to digital currency and the concepts that underly the technology. He sees bitcoin as a one-of-a-kind type of asset.

Coles told CoinDesk that he first learned about bitcoin while wintering in the Philippines. Casual research grew into more active investigation, leading to discussions about how bitcoin might fit into plans to sell off his gold interests in the Yukon.

With the mine now for sale on the luxury exchange, Coles is optimistic about bitcoin’s prospects, saying:

“I believe bitcoin has nowhere to go but up. In the long run, it’s just going to get stronger and stronger and stronger.”

He added that although he currently owns no bitcoin, he sees a future in it should the BitPremier sale succeed. While he has no active plans to invest were he to enter the market, Coles expressed an openness to invest in the broader bitcoin industry, including the mining sector.

The mine is currently on sale for $2m and reportedly generates $1m in annual revenue.

Bitcoin vs gold

When discussing the similarities and differences between gold and bitcoin, Coles cited the fact that the prices in digital currency markets are set by supply and demand.

By comparison, gold is subject to geopolitical pressures that have, in his eyes, made it a less attractive option over the years:

“The people that have the bitcoin are the ones that can drive the price up, or drive it down, depending on what ups. Whereas gold, the people that have the gold are really at the mercy of politicians, financial institutions, London fixes that we really know nothing about. People that have gold really have no control over the direction that goes.”

He went on to suggest that these influences could one day take a toll on bitcoin. However, he said that the decentralized nature of digital currency technology makes it “less susceptible to manipulation compared to gold”.

Coles added that the price of bitcoin went too high too quickly, resulting in an equally swift correction. In the months since – which has seen a raft of both positive and negative news for bitcoin – the price, he said, has risen on the merits of its strength rather than pure hype or speculation.

Bitcoin needs education

One of the key problem areas of bitcoin, Coles said, is a lack of education among the broader public. This is due to the novel characteristics of bitcoin that make it not quite a currency, commodity or property. Instead, it lies somewhere in the middle.

As a result, Coles reckoned, bitcoin’s success – and its price – hinges on whether or not more people learn about how it works, how they can acquire it and, most importantly, how they can use it.

He explained:

“I believe that bitcoin needs some advertising the world over to learn more about what it’s all about. Nine out of 10 people I talk to have heard of bitcoin, but they don’t know about it, they don’t understand and they don’t want to because it’s out of their realm of understanding.”

Pointing back to the topic of political impact on bitcoin, having an environment in which more people understand how to use digital currency – and do so – could enable the bitcoin market to operate without manipulative influence from the outside.

More gold plans ahead

While citing problems in the global gold market, Coles said that after the sale of his mining interest in the Yukon he’d stay on the lookout for new opportunities. Issues aside, he said that he makes a “good living” in the gold market, joking that the industry was “spoiled” in 2012 and 2013, when gold prices surged above $1,700 an ounce.

He explained:

“I would still always keep my eyes open for opportunities in gold mining. It’s something that’s in your blood.”

As outlined in the BitPremier advertisement, Coles is offering to help provide logistical and managerial support to a potential owner. The sale actually has two components: Canyon Creek, a developed, three-mile property with drilling and exploration already conducted on the plot, and an existing lease in the Bonanza Creek region.

Coles explained the real prize in the sale are his interests on Bonanza Creek, a waterway in the Yukon made famous for the abundance of gold discovered in the region. He suggested they are the heart of something that offers “big potential” to interested investors.

 Source : http://www.coindesk.com

Orlando School Gives Students bitcoins

Last month I attended an interesting Orlando Bitcoin Meetup. The Meetup took place at Bright Learning Academy, a school for special needs students that works with children who need an alternative to traditional school settings. The school takes a technological approach to learning.

It’s no mystery that kids learn to understand technology much more easily than we do. That’s just the way things go. Bright Learning Academy is teaching money management and free market principles with Bitcoin technology. They did it before MIT.

Last winter, school teacher Robert Lefebure began signing up students for a wallet at Blockchain.info.

“The idea, explains Robert, “was to use Bitcoin to teach personal money management and economics because, frankly, it’s hard to understand where Bitcoin is taking us if you don’t know what economic factors took us to where we are today. I gave each of them what was (at the time) $3 worth of BTC. The reaction of the kids varied from “I want to spend it right away” to “what is it? A couple of months later MIT announced giving $100 worth to each of their students but we had already “been there, done that!”

Robert started to get some of the kids to post articles on the school blog site and add their wallet addresses to their articles. A few raised a little money that way too.

Bright Learning Academy plans on providing their students with bitcoins this upcoming school year. But next time around, more places accept bitcoin than before. The kids should have more leeway.
The founder of Bright Learning Academy is Alan Mark Friedland. He has been in the financial, investment and securities businesses since 1984. Mr Friedland worked for Stuart James Company, Blackstock and Company and Prudential Bache Securities as a registered representative. Mr. Friedland founded Edge Securities member N.A.S.D. in 1986 which became one of the first leveraged day trading firms for professional traders. Edge Securities was an option trading member of the American Stock Exchange. Mr. Friedland is an expert in short term securities trading. He has developed many successful custom computer programs to trade the markets over the past 25 years. He visualized and created one of the first social media chat rooms and advertising websites on the Internet in 1994 at www.talkroom.com and questchat.com. In 2000, he developed one of the first web based intranet learning products for public school systems. In 1999 he created one of the first laptop based Cyber School in Orange and Seminole Counties Florida. Mr. Friedland has been developing Forex automated currency trading programs for the past 4 years. He is developing Bitcoin technology to share these programs.

“My interest in Bitcoin began in 2012 – in particular, its ability to create trading markets,” says Alan. “It is probably the biggest opportunity since the commercialization of the Internet in the early 1990s. We have created our own school cryptocoin to reward students and as a way to reach out to the business community to help with donations.”

Bright Learning Academy has began pioneering money management education by utilizing the still nascent bitcoin currency. MIT followed suit. It would be no surprise if more and more educational institutions begin to utilize the educational potential of bitcoin.

By Kevin Cruz
Source: Bitcoin Magazine