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.

Source : http://www.thebitcoinchannel.com

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.”

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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.”

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

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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