Hal Finney on Bitcoin: In His Own Words
Hal Finney was arguably one of the earliest bitcoin pioneers, having
been the second person to receive bitcoin after Satoshi Nakamoto
himself.
Yet beyond his role in the history of digital currency, Finney was
also a cryptographic master, a veteran of bitcoin mining and a voice –
sometimes prophetic – within the community at large. By perusing
Finney’s post history on the Bitcoin Talk forum, one can see that he
foresaw the promise of bitcoin and its meteoric rise at the end of 2013
while the technology was still in its infancy.
CoinDesk collected a number of quotes from Finney’s Bitcoin Talk posts, which, combined, paint a portrait of someone passionate about both the grand and the granular aspects of bitcoin.
For example, in January 2011, Finney noted the more speculative
conversation taking place in the community’s early days, saying those
with bitcoin should think about how they could put that potential wealth
to work in a positive way.
As he explained:
“Since we’re all rich with bitcoins, or we will be once they’re worth a million dollars like everyone expects, we ought to put some of this unearned wealth to good use.”
Looking back, Finney’s comments on a host of other subjects ring just as true today.
On mining
As one of the earliest bitcoin miners, Finney brought a unique perspective to the table when discussing the topic.
In late 2010, he discussed the relationship between the profitability
of the process and the overall health of the network. He argued for a
healthy balance to ensure that network participants remain as concerned
about security as they are about making money, saying:
“Mining should not be too profitable (because nothing should be too profitable, the world doesn’t leave free money lying around). Therefore the price of Bitcoins can’t rise too much above the cost of mining (counting equipment depreciation among the costs of course).”
In January 2011, he offered additional thoughts on the topic,
suggesting that the cost of bitcoin mining should be somewhat
prohibitive. He voiced concern that a wealthy mining operation could
theoretically take over the network, and pointed to the expenses
associated with mining as a positive element of the process.
Finney noted:
“Ultimately it’s good for the network for mining to be expensive. It makes it that much harder for a well financed attacker to dominate the network.”
On investment
Like many others at the time, Finney was no doubt excited about the
prospect that the price of bitcoin – which at the time was a fraction of
a penny – might skyrocket.
He speculated in one post from January 2011 that, compared to other
investments, bitcoin seemed like a relatively safe bet. As Finney
hypothesized:
“It’s pretty strange really that we all see a good chance that bitcoins will hit a dollar in the relatively near future. How many investments can be expected to triple in value in that time frame? Is gold going to be $3500 any time soon? Apple stock going to triple? Maybe Facebook, if you could get some. That seems like a pretty sure thing. We are really lucky to be in at the beginning of a possibly explosive new phenomenon. Considering the odds against most money-tripling investments, Bitcoin looks like a good place for a percentage of your portfolio.”
Yet at the same time, Finney was acutely aware of the risk that a
speculative bubble could form in the bitcoin market. He cautioned that
investors could get whipped up into a frenzy given the returns possible,
saying:
“The danger is if people are buying bitcoins in the expectation that the price will go up, and the resulting increased demand is what is driving the price up. That is the definition of a BUBBLE, and as we all know, bubbles burst.”
Finney’s later comments suggest that he saw the price climb to $1,200
in late 2013 – and the subsequent halving that took place in the weeks
that followed.
On bitcoin’s future
During his active years in the bitcoin community, Finney often
provided unique insights – and criticism, when appropriate – for a
number of initiatives, including early generations of wallet clients. It
was during those days that many in the community were unsure of where
the technology might wind up in terms of utilization.
In a post from December 2010, Finney suggested that the traditional banking system might one day embrace bitcoin. He wrote:
“I see Bitcoin as ultimately becoming a reserve currency for banks, playing much the same role as gold did in the early days of banking. Banks could issue digital cash with greater anonymity and lighter weight, more efficient transactions.”
He added in a separate post from the same month that digital currency
“could be used as an inexpensive timestamp service, allowing you to
prove that a certain document existed on or before a certain date.” This
latter statement foreshadows the use of bitcoin technology for smart
contract applications.
Ultimately, Finney was a firm believer in the promise of block chain
technology. And, perhaps prophetically, he knew that the market would
have to expand greatly in order to function as a viable network on a
global scale.
As Finney put it in March 2011:
“The computational power of the network is proportional to difficulty; and it appears that difficulty is proportional to bitcoin price. It follows that unless bitcoins become substantially more valuable than they are today, the Bitcoin network will never be substantially more resistant to attack than it is today. For Bitcoin to succeed and become secure, bitcoins must become vastly more expensive.”
Source : http://www.coindesk.com
Argentina’s OmbuShop Adds Bitcoin Payment Option for 2,000 Merchants
OmbuShop has announced a new partnership that will allow 2,000
merchants in Latin America to add bitcoin as a payment option for their
online stores.
Founded in 2011, the e-commerce website provider primarily caters to clothing and accessory merchants. OmbuShop is based in Argentina, but serves Colombia, Chile, Mexico and Spain.
Speaking to CoinDesk, OmbuShop CEO Ernesto Tagwerker described
the service as one way his company is looking to embrace the future of
online shopping while enabling its international merchants to sell more
effectively in a global economy.
Tagwerker told CoinDesk:
“We see in bitcoin a great medium to get paid from clients all over the world. Now, Argentine shops can sell to the US and all over the world without having to worry how to get paid.”
Tagwerker added that bitcoin will provide his merchants with a key
advantage given that payment gateways in Argentina are less evolved than
popular international options such as PayPal and Stripe. Notably, under an amendment passed in 2012, Argentinian consumers are barred from using PayPal.
OmbuShop has raised more than $40,000 in funding to date, netting the capital from Start-Up Chile, a Chilean government-backed investment fund aimed at attracting high-potential entrepreneurs to Chile.
To launch bitcoin payments, OmbuShop partnered with Argentina-based bitcoin merchant processor BitPagos.
‘Argentina’s Shopify’
Speaking to CoinDesk, BitPagos CEO Sebastian Serrano described OmbuShop as Argentina’s homegrown version of Shopify, the online marketplace that allows merchants to set up their own websites through its service.
Like Shopify,
OmbuShop lets merchants set up online storefronts by registering with
the website, uploading products and customizing their design.
OmbuShop offers a free 15-day trial of its services, while Shopify offers a 14-day no-risk trial.
Tagwerker indicated that enabling bitcoin payments on the platform will be similarly easy, saying:
“Once you have your BitPagos account, enabling the option for your online shop only takes a few seconds.”
In addition to bitcoin, OmbuShop accepts Argentine pesos, Colombian pesos, Chilean pesos, euros, Mexican pesos and US dollars.
High adoption rates expected
Tagwerker suggests that OmbuShop isn’t treating bitcoin as a novelty
offering, and that it expects the new feature to be widely implemented
by its customers in the coming months.
He went on to suggest that OmbuShop has been observing the bitcoin
space with interest for a period of years, but that it only recently
decided to integrate the payment option due to the decisions of major
US-based merchants.
Tagwerker indicated that other factors were at work as well, adding:
“Our decision was influenced by news about major players in the e-commerce industry, like WordPress and Dell, and by the current situation of the Argentine economy.”
Merchant adoption rises
Though noteworthy for Argentina’s entrepreneurs and merchants, the
partnership is also the latest success for BitPagos, which raised
$600,000 earlier this year with the goal of enlisting new, high-profile
clients in its processing service.
The partnership is the second major deal inked by BitPagos so far
this August, following its agreement with major e-commerce newcomer Avalancha. The company also launched Ripio, a new service that will enable consumers to buy bitcoin at 8,000 convenience stores.
Serrano told CoinDesk that these recent successes are simply a by-product of the company’s measured approach to the market.
He concluded:
“I think a lot of ground work we have been doing in past months is starting to pay out and we hope to be able to keep the momentum high.”
Source : http://www.coindesk.com
Gallery: Chamber of Digital Commerce Holds Bitcoin Education Day in DC
The Chamber of Digital Commerce (CDC) held Congressional Bitcoin
Education Day today, a Washington, DC-based event aimed at fostering
awareness of bitcoin and its related technology among Congressional
staff members in US Congress.
The event saw more than 30 bitcoin professionals from 12 states meet
with the staff of six US congressional committees, including those on Financial Services; Science, Space and Technology; Agriculture; Small Business; Energy and Commerce; and Ways and Means.
Speaking to CoinDesk, CDC president Perianne Boring
framed the event as part of its ongoing effort to lay the groundwork
for increasing its influence in Washington in 2015 and beyond. Further,
she noted that the current Congressional recess provides the organisation with an important opportunity to correspond with those who work for members of the government body.
Boring told CoinDesk:
“Bitcoin is a very transformative technology, and obviously the community has a big educational hurdle we’re trying to work through. So, we came to Capitol Hill today to spend a little more time with staff members, since they’re the ones who do the policy research that members of Congress rely on.”
The CDC’s goal for the event was to have either personally briefed
every office in the US House of Representatives on bitcoin or to have at
least delivered education material on the subject to those offices.
Boring said that the group secured 70 one-on-one briefings with
financial services assistants.
View the gallery below:
Event in action
The day began with a closed briefing during which industry
participants prepared for the day’s meetings. From 10 am to 12 pm EST
and 1:30 pm to 4 pm, meetings were then held with Congressional
staffers. The meetings were then followed by a reception lasting until 6
pm.
While the schedule was focused, Boring acknowledged that these meetings were proceeded by substantial preparations, adding:
“We put a significant amount of time into contacting all the congressional offices [...] It took a couple weeks to schedule all these meetings.”
Notably, US representative and noted bitcoin advocate Steve Stockman
was also in attendance, serving as member sponsor for the event and
flying in from Texas to welcome participants to the proceedings.
Official sponsors for the event included Banks Worst Fear, Buckley Sandler LLP, eSpend, Tally Capital and Washington DC Bitcoin Users Group.
Educational materials
As for the resources provided to Congressional staffers, Boring said
the documents were basic and high-level, providing an overview of
bitcoin’s use as a financial tool and the wider bitcoin industry with
details such as its market capitalization.
Boring told CoinDesk that, as of now, the goal is to provide as much
information as possible to those working for US lawmakers, and to
introduce them to the CDC and its work.
She said:
“Right now a lot of people on Capitol hill and in the general public don’t know much about the technology, so we try to teach people what it is, and then once we get over that hurdle then we can start having more advanced policy discussions, how do we appease regulators and any concerns they may have.”
Still, Boring stressed that the CDC is only just getting started, and
that this is the beginning of a long-term strategy, concluding:
“The CDC just opened a month ago, and we’re here for good.”
Source : http://www.coindesk.com
Air Lituanica Shows Bitcoin’s Use in Travel is Taking Flight
Air Lituanica is now accepting bitcoin for flight tickets as part of
its ongoing bid to embrace new and innovative methods of serving
customers.
With the news, the two-plane, Lithuania-based airline becomes the
second airline, and second in eastern Europe, to add bitcoin payments
following airBaltic’s July announcement.
In a blog post, Air Lituanica director of commerce Simonas Bartku
illustrated the benefits bitcoin can bring to travel businesses,
writing:
“Bitcoin payments are highly beneficial for the aviation market – this currency helps to attract more buyers from abroad as bitcoins can be used anywhere in the world.”
Air Lituanica’s statements provide the latest evidence that bitcoin
is gaining traction beyond the airline industry in the wider global
travel industry, and that a growing number of consumers and businesses
in this sector are looking to tap digital currency as a solution.
Long term, digital currency proponents believe the technology can provide real convenience to travelers
due to the hassles and high fees associated with currency conversion as
well as the high risk of fraud international travelers face. Further,
it seems a growing number of businesses are looking to help the
community test its prediction.
With this in mind, CoinDesk takes a look at recent news that showcases how bitcoin is building traction in the travel industry.
Bitcoin for destination travel
In addition to appealing to existing travel companies like Air
Lituanica, bitcoin is also helping savvy entrepreneurs gain a foothold
in the space.
For example, just last week, Bali-based travel booking agency BitcoinTour
launched with the goal of making it easier for travelers to use bitcoin
to visit the popular island. Notably, Bali is part of the BitIslands initiative, a project that aims to turn the Indonesian tourist destination into a top destination for bitcoin enthusiasts.
BitcoinTour now allows bitcoin users to book flights via major
airlines serving the island, including Air Asia, Citilink and Lion Air,
as well as a number of area hotels.
Expedia opens doors to hotels
Another segment of the travel industry that is increasingly interested in bitcoin is the hotel sector. In recent months, the Sandman Hotel Group in Canada and at least one member of the popular Dutch easyHotel franchise have begun to accept bitcoin as payment from customers.
However, bitcoin travel has recently become significantly easier with
the addition of Expedia and CheapAir to the ecosystem, the former of
which nets more than $1bn in annual revenue, while the latter serves more than 200,000 hotels worldwide.
Land travel lags behind
While international travel options have proved to be more
accommodating of bitcoin services, land travel alternatives have been
less quick to embrace bitcoin.
Still, there have been companies exploring this as-yet untapped part
of bitcoin’s travel sector. For example, CheapAir announced in May that it would accept bitcoin for its Amtrak railway bookings.
Further, PassportParking, a parking solutions provider that serves
lots in 35 US states revealed it would seek to implement a bitcoin
payments trial in 2014.
Combined, the news events show that bitcoin is gaining ground in the
travel industry, but that the idea of an easy, bitcoin-only vacation may
be years away.
Source : http://www.coindesk.com
Bitcoin Pioneer and First Bitcoin Recipient Hal Finney Passes Away
The bitcoin world lost one of its earliest pioneers today with the
legal passing of Hal Finney, the recipient of the world’s first bitcoin
transaction and its first identified developer after Satoshi Nakamoto.
He was 58 years old.
Finney had been diagnosed with the disease ALS (Amyotrophic lateral
sclerosis, or Lou Gehrig’s disease) in 2009 and was wheelchair-bound for
the last few years of his life. Despite this, he remained as active as
possible in the bitcoin community, even giving interviews as recently as
March of this year.
Finney was also a key figure in the world of cryptography, having
worked as the second developer after Phil Zimmermann on the popular PGP
system, and was a regular contributor to the legendary ‘cypherpunks’
cryptographer mailing list.
Finney developed computing’s first reusable proof-of-work system
called RPOW, (based on Adam Back’s Hashcash) with an aim to implementing
it in a digital currency system.
DigitalBTC Reports $4 Million Revenue in Preliminary Annual Results
DigitalBTC has released the first set of financial results for a publicly traded bitcoin company.
The Australia-based bitcoin mining services provider has emerged as an industry leader, making history when it debuted on the Australian Securities Exchange (ASX)
last June. As such, digitalBTC provides a unique window into the
bitcoin mining industry, a sector that is only beginning to become more
transparent as it attracts investor interest.
In its preliminary final report
for the full financial year, the company reported estimated revenue of
$4.0m and normalised earnings (EBITDA) of approximately $2.5m. The
underlying net profit after tax was $600,000. The results were generated
from more than three months of operations.
Despite its suite of services, digitalBTC named bitcoin mining as its business, writing:
“Bitcoin mining, the company’s core cash generator, delivered the majority of EBITDA. This trend has continued into the 2015 financial year with a further $1.3m invested in mining hardware post year end, increasing the company’s bitcoin mining capacity by approximately 90%.”
While the numbers are encouraging, digitalBTC reported a net loss
after tax, caused by a one-off accounting expense related to the reverse
takeover of Digital CC Limited (formerly Macro Energy). The takeover was announced last March.
The full document also sheds more light on the company’s revenue, profit and loss.
Sign of success
With the takeover taken out of the equation, the company delivered a
strong performance and it expects good results in fiscal year 2015.
DigitalBTC executive chairman Zhenya Tsvetnenko said the underlying
digital currency results highlight the earning capacity of the business,
telling CoinDesk:
“Aside from some non-cash accounting related adjustments, I couldn’t have hoped for a better first result. We are committed to continuing to deliver results and performance against our business plan and targets in the current financial year, in order to build a track record of strong earnings for our shareholders.”
The company published its first quarterly report a month ago, reporting sales of 4,000 BTC, roughly $2.1m at the time. The company said it mined approximately 8,600 BTC since launching its mining operation.
Further, its original $4m investment in mining hardware was recovered
prior to the publication of the quarterly figures, in under three
months.
Industry first
Tsvetnenko added that he is pleased to announce the first financial
results to be released by a bitcoin focused company on a major stock
exchange.
“This is a first for our industry, and the transparency it provides
into our operations and financial reporting is a new level of disclosure
for our shareholders, and should help the understanding and acceptance
of bitcoin in the broader investment community,” said Tsvetnenko.
Having mined 8,600 BTC in just over two months of operations, DigitalBTC accounted for roughly 3% of all bitcoins mined during the period.
However, the company is adding more hardware – it says it has almost
doubled its capacity in fiscal 2015 since it reported the first figure,
meaning it is difficult to estimate DigitalBTC’s growing share of the
network.
Source : http://www.coindesk.com
Uncle Sam: The World’s Second Largest Bitcoin Holder
Uncle Sam, or to be more precise, the US Federal Government, has been busy. Between bouts of criticizing cryptocurrencies, regulating cryptocurrencies
and spending a bit of time warning against the use of cryptocurrencies;
one would think that Uncle Sam is against us… on closer examination,
that may well not turn out to be the case. It seems that Uncle Sam has
been playing quite the little game as it is now one of the largest
holders of Bitcoin… Ever!
The US Federal Government recently published an investor alert titled: “Bitcoin: More than a bit risky” through FINRA, The Financial Industry Regulatory Authority. FINRA used, what most would consider to be, highly loaded, language to explain how: “This
alert to caution investors that buying and using digital currency such
as Bitcoin carry risks. Speculative trading in bitcoins carries
significant risk. There is also the risk of fraud related to companies
claiming to offer Bitcoin payment platforms and other Bitcoin-related
products and services.”
CCN
FINRA, the US Government watchdog, stated that Bitcoin was not legal tender, and that means: “If no one accepts bitcoins, bitcoins will become worthless.” FINRA went on to remind citizens that
- Platforms that buy and sell bitcoins can be hacked, and some have failed. In addition, like the platforms themselves, digital wallets can be hacked. As a result, consumers can—and have—lost money.
- Bitcoin transactions can be subject to fraud and theft. For example, a fraudster could pose as a Bitcoin exchange, Bitcoin intermediary or trader in an effort to lure you to send money, which is then stolen.
- Unlike US banks and credit unions that provide certain guarantees of safety to depositors, there are no such safeguards provided to digital wallets.
- Bitcoin payments are irreversible. Once you complete a transaction, it cannot be reversed. Purchases can be refunded, but that depends solely on the willingness of the establishment to do so.
- In part because of the anonymity Bitcoin offers, it has been used in illegal activity, including drug dealing, money laundering and other forms of illegal commerce. Abuses could impact consumers and speculators; for instance, law enforcement agencies could shut down or restrict the use of platforms and exchanges, limiting or shutting off the ability to use or trade bitcoins.
With FINRA batting for the fiat side,
we are left under no illusion as to whether any part of the US
Government prefers Bitcoin to fiat. The hardline federal attitude
towards Bitcoin is even echoed in some states. Please remember the
California’s Department of Financial Institutions did send a cease and
desist letter to the Bitcoin Foundation, telling it to “cease and desist from the business of conducting money transmission in this state”. Though, more recently, California has passed legislation that explicitly classifies Bitcoin as legal money. Remember, as well, when New York’s Department of Financial Services, proposed comprehensive regulations
for governing virtual currencies. Seen as legitimizing moves by some,
the proposed BitLicense regulations are pro-bank and pro-Government.
With
all the above, the US Government must figure Bitcoin is worthless,
right? Well, no, not at all. Readers may remember an online marketplace
called Silk Road that was seized
by the US Marshals Service (USMS). Bitcoin was the coin of the Silk
Road realm, and the US government recently auctioned roughly $20 million
of the cyber-currency seized from the online marketplace. If we accept
that the coins were indeed sold, and I’m not entirely convinced, the US
Government still holds at least 110,000 bitcoins at a value of $500
each, giving a holding of $55M. Not a bad hoard for a currency that some
in the US Government claim has no value! These hoarded bitcoins
currently sit at this Bitcoin address: 1i7cZdoE9NcHSdAL5eGjmTJbBVqeQDwgw, which is #2 on the BitcoinRichList.
Note:
Others, such as Satoshi Nakamoto, might technically hold more bitcoins
(thus diluting Uncle Sam’s true rank) through the use of multiple
addresses.
Source : http://www.cryptocoinsnews.com
Bitcoin's Future : Proof - pf - stake vs Proof - of - work
It’s no secret that merchants who immediately sell their Bitcoin for fiat currency create downward pressure
on the Bitcoin price, but the merchants aren’t the only people to
blame. The proof-of-work (POW) system used by Bitcoin and other
cryptocurrencies fails to create an incentive for miners to hold onto
their coins. That means that as much as 3,600 BTC may be sold per day to
pay for electricity and rent, alone. The mined bitcoins alone has a
value of more than 180 000 USD. Depending on the type of pool
used, some miners sell their coins instantly after being awarded their
coins. Others sell throughout the day, or at the end of the week or
month. This constant selling causes constant downward pressure on the
Bitcoin price.
Bitcoin and Proof of Work
Bitcoin
is based on a POW (Proof of Work) system where the probability of
mining a block is dependent on how much work is done by the miner. A
proof-of-stake (POS) systems varies in that a person can “mine”
depending on how many coins they hold. Simply put, a person owning 5% of
a coin based of proof-of-stake can mine 5% of the blocks in the same
way that a person owning 5% of the bitcoin mining network will
theoretically mine 5% of the blocks.
There are fears that POW
systems can lead to low network security, due to the Tragedy of the
Commons, and this has led to some coins adopting a POS system.
Bitcoin’s Tragedy of the Commons
A
tragedy of the commons for Bitcoin means that as payouts becomes
smaller and smaller for Bitcoin miners, there is less incentive to avoid
a 51% attack. The POS systems makes any 51% attack more expensive.
Someone trying to doublespend and destroy faith in the network would
have to own a majority of the coins, and the attacker would suffer from
his actions.
However, Proof-of-stake systems alone don’t work –
without mining you can’t create a community around your coin. Most coins
that adopt proof-of-stake use a mixed system with both POS and POW.
This is because POS encourages hoarding that is great for speculation
but not for currency, which is supposed to be used. According to Fred
Wilson, a venture capitalist and self-proclaimed Bitcoin believer, due
to the price volatility and speculation people are hoarding their coins.
People fear that the hoarding of bitcoins will lead to a deflationary
spiral causing the Bitcoin price to plummet and ultimately signal the
death of the currency. By design, POS system could unintentionally
exacerbate the hoarding problem.
Proof-of-stake systems are also not as safe
as a simplified explanation of them might make them out to be. If there
are 1,000 coins in circulation, but only 100 coins staked, an attacker
would only need 101 staked coins to perform the attack. Now image if
there were only 2 staked coins – Yikes!
Is Proof of Stake In Bitcoin’s Future?
So
neither the POS or POW system is perfect, and that’s why many coins are
experimenting with a mixed system. Coins using a mixed system create
the community with miners, whom reduce hoarding and also provide reduced
downward pressure on the coins price. Bitcoin experiences downward
pressure from miners who sell their coins, but with a mixed system
miners are rewarded for holding onto their coins and will likely choose
to hold a percentage. With the volatility in the Bitcoin price, you’d
think the developers would want to reduce any negative pressure, but
Bitcoin remains a POW system and, by all accounts, will remain so.
Bitcoin
isn’t the only coin that could benefit from switching to a mixed
system. While miners who believe that the Bitcoin price will increase over time
hold their bitcoins – almost all other altcoins that are mined are sold
for fiat currency or bitcoins. Cryptocurrencies that are weaker
than Bitcoin risk being quickly mined and dumped, destroying the coin
altogether until someone else picks it for a pump and dump.
In
the last few weeks, the price of Bitcoin has been struggling, and we
know that miners aren’t helping. Merchants are putting downward pressure
on the price, but that’s a necessary evil. Miners don’t have to be a
part of the problem, and switching to a mixed system could help counter
the downward pressure the Bitcoin price experiences due to merchants. Is
it just me, or should all coins use a mixed system? It makes sense as a
way to provide incentives for miners to hold their mined coin.
Source : http://www.cryptocoinsnews.com
Chamber of Digital Commerce Educates Congress on Bitcoin
Today the Chamber of Digital Commerce hosted the first ever Bitcoin
Education Day on Capitol Hill. Over 32 Bitcoin professionals from 12
states flew to Washington, DC and briefed over 70 Congressional
legislative aides, then introduced themselves to the remaining 365
offices. Bitcoin factsheets were delivered to the office of every member
of the US House of Representatives.
Rep. Steve
Stockman (R-TX) was the Member sponsor of the event and flew in from
Texas to personally welcome the Bitcoin Education Day participants on
Capitol Hill. According to Rep. Stockman “Perianne Boring and the
Chamber of Digital Commerce have staged a breakthrough event, taking
Washington’s grasp of Bitcoin up to a much 
higher level.”
higher level.”
Perianne
Boring, President of the Chamber of Digital Commerce, said “The Chamber
opened its doors just a month ago and has covered a colossal amount of
ground in a short window of time, with very limited resources. We are
grateful to all the participants who traveled to help lay the groundwork
for Bitcoin on Capitol Hill. This day was made possible with the
industry’s support and support from the Chamber’s sponsors.”
Erik
Anderson of Bloomberg participated in the event and said “The Bitcoin
family of technologies is very valuable. These technologies can be used
to address many issues that the financial services sector is facing. It
was obvious from these meetings that many Congressional staffers are
aware of the benefits these innovations can provide for financial
services.”
Official
sponsors of Bitcoin Education Day include Washington DC Bitcoin Users
Group, Buckley Sandler LLP, Banks Worst Fear, Tally Capital and eSpend.
About the Chamber of Digital Commerce:
The Chamber is the first DC-based,
non-profit, trade association dedicated to promoting the acceptance and
use of digital assets and currencies. The Chamber is building a full
suite of government affairs services in Washington. The Digital Chamber
will also offer a strong public affairs office, dedicated to providing
authoritative information to policy makers on digital assets and
currencies. See: www.digitalchamber.org.
Source : http://thebitcoinnews.co.uk
Caribbean Island Becomes Bitcoin Nation: Interview with Sarah Blincoe, Project Manager
The “Let the Bit Drop” campaign to bring Bitcoin to a small Caribbean island was announced
about two weeks ago but the name of the island was not known. That
information was announced yesterday and the island selected is Dominica.
Dominica is a small island in the Eastern Caribbean with a population
of only 70,000 people. The project is designed to put Bitcoin into the
hands of the entire population, powered by smartphones and mobile
wallets. The infrastructure is supported by Coinapult and three different telecomm companies.
Project Manager Sarah Blincoe agreed to speak with CoinTelegraph
today and answer a few questions about how the project came to be and
what the future might hold.
CoinTelegraph: Can you give our readers some background on “Let the Bit Drop” campaign? Where did the idea come from and how did it develop?
SB: The Bitcoin community constantly talks about how
to increase adoption. The idea came from just that - how to get the
Bitcoin technology in as many people hands as possible, and why not do
it all at once through SMS. We also really wanted to provide an
opportunity for education and actual use of Bitcoin so the party came
hand in hand. The islanders will be able to immediately use their
Bitcoin at the Piday party on March 14, 2015.
CT: Dominica is an interesting choice. The nation has made a
number of changes recently and is now considered the 63rd freest economy
in the world. Did these changes have any effect on your decision to
locate there?
Sarah Blincoe: Certainly a free economy helps
projects like these succeed. These scores are taken from a very high
view, though. On the ground, things can often be much freer or more
restrictive, depending on the individuals and situation. In this case,
we have found the local communities and leaders’ very supportive and
forward thinking. Perhaps Dominica should be considered for a
significantly higher score next year.
CT: We understand that there are plans to install ATMs on the
island. Will these ATMs allow fiat cash withdrawals and, if so, are you
using a local bank or digital payment service?
SB: Our goal is to have BTMs placed on the island
permanently and help local companies and merchants set up with POS
systems so the use of Bitcoin within the islanders will grow as well as
providing a direct link for Bitcoin tourism to boom on the beautiful
nature filled island.
CT: How much support does the project have in the local
business community and are there parts of the local businesses community
that are resisting the idea?
SB: The project is new but we have been in contact
with many local businesses about Bitcoin and are currently working on
educational materials to be distributed around the island for all
residents.
CT: How does your project differ from the Auroracoin Airdrop in March, 2014 in Iceland? Does the difference in economic standings between the two nations become a factor?
SB: A quote from Ira Miller CEO of Coinapult -
“AuroraCoin tried to reinvent the wheel, and was basically eaten by Bitcoin’s much stronger network. We are playing on the strengths of Bitcoin, not trying to compete with it. “
CT: How will you measure success with this project?
SB: Two good metrics are transaction volume on Drop
day and in the following months. These will show us what kind of impact
Bitcoin has on the local economy more than just the number of users. If
5% of Dominica starts using Bitcoin daily that would have an even
greater impact than if 50% of them use it for a day and then stop. That
being said, if 50% of Dominicans all recover their Bitcoins successfully
and do a few transactions that will already be a huge win!
CT: If the project is successful will you be expanding into other regions?
SB: We will absolutely be expanding The Bit Drop to
other regions. We are already advanced in talks with three other
Caribbean nations, and have been contacted by interested and supportive
groups from all over the world.
The project team consists of Ira Miller, CEO Coinapult, Francis Ford,
Senior Advisor, Aspen Assurance, Jeremy Gardiner, Director of the
College Cryptocurrency Network and the Honorable Doctor Kenneth Darroux,
Minister of the Environment & Physical Planning, which Sarah
Blincoe as Project Manager. If this experiment is successful it could be
an economic windfall to many residents of the Third World who have
little or no access to banking services.
Source : http://cointelegraph.com
