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Wikimedia Foundation Receives More Than $140,000 in Bitcoin Donations in First Week

http://blog.coinbase.com/post/94075370447/wikimedia-foundation-receives-more-than-140-000-in

 

 

Bitcoin: Addressing The Controversy

http://www.nasdaq.com/article/bitcoin-addressing-the-controversy-cm377791

 

 

The Bitcoin Derivative Boom Can Be A Mark Of The Cryptocurrency's Coming of Age 

http://www.forbes.com/sites/ericxlmu/2014/08/07/the-bitcoin-derivative-boom-can-be-a-mark-of-the-coming-of-age-of-the-digital-currency/

 

 

 

NYDFS Promises Bitcoin Foundation More Information on Bitlicense

http://www.cryptocoinsnews.com/news/nydfs-promises-information-bitlicense-bitcoin-foundation/2014/08/07

 

The Bitcoin Foundation has not yet received this ‘promised additional’ information yet, as it has only been a few hours since the response, but the clock is ticking. The NYDFS has, by law, only 20 days to respond to the filing, but if they take the entire period, the material will be released only days before the end of the 45-day comment period.

The Bitcoin Foundation has stated that they will release the information publicly as soon as they receive it

 

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Mobile Money Blog

 

 

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TREZOR Sales Launched at BuyTREZOR.com

 

Using bitcoin like a security expert is a breeze for TREZOR owners. It’s just a few clicks at BuyTREZOR.com to be one of them.

TREZOR brings a peace of mind to every bitcoin owner, leaving behind the viruses, keyloggers and even the risk of fraud with and exchange or web wallet service. Doing regular backups, reading encryption manuals or printing paper wallets becomes obsolete.

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Barry Silbert Leads $250K Investment in Indian Bitcoin Startup Unocoin

 

http://www.coindesk.com/indias-unocoin-closes-250k-funding-deal-silbert-investment-fund/

 

"Silbert told CoinDesk:

I believe that Unocoin has the potential to become the leading bitcoin company in India for buying, selling and storing bitcoin, as well as merchant processing.

...

Nikkam added that Unocoin was also looking at India’s massive overseas remittance market, which transmitted $67.6bn back to the country between 2012 and 2013. An estimated 25 million people of Indian descent or nationality live in other countries around the world, mostly in the Middle East."

 

Noch so ein Pflänzchen, aus dem ein Mammutbaum werden kann. Nur Geduld ...

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Pantera BitFlash

Bitcoin’s volume-weighted price on the Bitstamp exchange rose 1% over the past week, to $589 yesterday.

 

The Pantera BitIndex four-week moving average is at an all-time high.

 

Website of the Week: Coinometrics provides institutional-level Bitcoin data and research. Some of their proprietary data models include global currency flows into and out of Bitcoin and price dispersion across multiple exchanges.

 

Monday, August 11, 2014

The Consumer Financial Protection Bureau is warning the public that bitcoin and other virtual currencies are a risky “Wild West” in the financial markets. The CFPB is a product of the Dodd-Frank financial reform law and is mainly responsible for aggregating complaints consumers have with financial institutions. [The Hill]

 

Blockchain, a popular wallet provider, passed two million users. [newsBTC]

 

Opinion: governments are struggling to understand Bitcoin. [RT]

 

Sunday, August 10, 2014

Image hosting platform Imgur said that they will add bitcoin as a payment option for premium accounts. [CoinFire]

 

CloudFlare, a global content delivery network and domain name system provider, announced it intends to accept bitcoin as payment. [Reddit]

 

Dell CEO Michae Dell reported on Twitter a customer made a server purchase in bitcoin worth ~$50K. [twitter]

 

Opinion: nine useful Bitcoin data sources. [Coindesk]

 

Saturday, August 9, 2014

"In their monthly Bitcoin Letter, Pantera Capital’s Dan Morehead and Ron Glantz point out that although bitcoin’s price fell 8% in July, its volatility has fallen by 42% over the past three and a half months. This followed an especially tumultuous trading period in the wake of the Mt. Gox exchange’s collapse. 'As Bitcoin matures and the technology develops, we believe there will be increased confidence and diminished uncertainty,' the Pantera team wrote. 'We expect this to create a positive feedback loop in which volatility declines and consumers become increasingly comfortable holding and using bitcoin in their daily lives.'" [Wall Street Journal BitBeat]

 

A recent paper by academics in Sweden looks at the correlation and influence of social media on the price of bitcoin. The paper finds that "In the 'social' cycle, search volume increases with price, driving social network activity and increasing the price. In the 'user adoption' cycle, search volume increases with price, increasing the interest of new users and then the price increases from increased adoption and a larger user base." [Gigaom] [Read the full paper]

 

A Lake Tahoe property sold this week for $1.6 million in bitcoins. [WSJ]

 

Friday, August 8, 2014

"Bitcoin Momentum Grows in Emerging Markets." Bitcoin is a global opportunity. This article touches on some of the reasons why Pantera recently backed BitPagos [1], which focuses on the Latin American payments market. [Forbes]

 

There's a growing variety of ways to exchange physical cash for bitcoins. [WSJ BitBeat]

 

Chinese bitcoin exchange Huobi acquired another Chinese start-up, Quickwallet. Quickwallet developed something called a "multi-signature wallet", whereby sending bitcoins to another wallet requires two or more digital "signatures". Other than Blockchain's acquisition of the news and data company ZeroBlock earlier this year, acquisitions are rare in the Bitcoin space. [CoinDesk]

 

[1] BitPagos is a Pantera portfolio company.

 

Wednesday, August 6, 2014

"Bitcoin Momentum Grows in Emerging Markets." Bitcoin is a global opportunity. This article touches on some of the reasons why Pantera recently backed BitPagos [1], which focuses on the Latin American payments market. [Forbes]

 

There's a growing variety of ways to exchange physical cash for bitcoins. [WSJ BitBeat]

 

Chinese bitcoin exchange Huobi acquired another Chinese start-up, Quickwallet. Quickwallet developed something called a "multi-signature wallet", whereby sending bitcoins to another wallet requires two or more digital "signatures". Other than Blockchain's acquisition of the news and data company ZeroBlock earlier this year, acquisitions are rare in the Bitcoin space. [CoinDesk]

 

[1] BitPagos is a Pantera portfolio company.

 

Tuesday, August 5, 2014

Thomson Reuters, the parent company of global financial news agency and financial market data provider Reuters, has added bitcoin pricing information to its Eikon trading software. [CoinDesk]

 

Blocksign, a startup that launches this morning, is using Bitcoin’s giant records database, the blockchain, to build an entirely un-financial application. Their service lets you sign legally binding documents and agreements in the same system that keeps all records of bitcoin transactions. [betabeat]

 

Some Australians are turning to digital currency as an investment to boost and diversify their retirement savings. [sMH]

 

Opinion: We’re getting very close to replacing the biweekly paycheck. [Medium]

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How Secure are Bitcoins?
http://www.visualcapitalist.com/secure-bitcoins/

It should go without saying that you should treat bitcoins like the money in your bank account. Cryptocurrencies become more popular day-by-day, and thieves have definitely been paying attention. In the last five years, over $500 million of bitcoins have been stolen.
How is this done? For starters, 22% of all financial malware attacks target bitcoins. Over 12 exchanges (including Mt. Gox) have been hacked and there are more than 140 viruses out there that target bitcoins as well. On the upside, these threats also present new market opportunities for cryptocurrency related protection services.
Famous venture capitalist and Bitcoin proponent, Fred Wilson, believes that digital currencies will have to be more secure to gain mainstream adoption. This means exchanges and wallets are going to have to be better. Entrepreneurs around the world are trying to figure this out right now, and many of their new services could – in the process – also disrupt the financial system as we know it.how-secure-are-bitcoinsv21.jpg

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Das wird sicher @ngt interessieren

 

Stimmt, hatte ich schon mit großer Aufmerksamkeit gelesen!

Ich hatte ja schon im Prognosethread erst auf die Stagnation bei den Transaktionszahlen hingewiesen und vor kurzem dann (was der Artikel noch nicht tut) auf einen beginnenden Anstieg. Zum Glück bestätigt sich der zarte Ansatz eines beginnenden Trends bisher (um es mal vorsichtig auszudrücken, siehe ganz rechts):

https://blockchain.info/de/charts/n-transactions

 

Andere Messgrößen für den Bitcoin-Erfolg, z.B. investiertes Risikokapital, Hashrate usw. (außer dem Transaktionsvolumen) sind mit Vorsicht zu genießen, da allenfalls indirekt wirksam.

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Overstock CEO: We’re Now Averaging $15,000 A Day In Bitcoin Sales

http://www.businessinsider.my/overstock-patrick-byrne-talks-bitcoin-sales-2014-8/#.U-xsR2ccQUQ

 

Ich bin gespannt,wann Overstock/Patrick Byrne damit beginnt, seinen Mitarbeitern anzubieten, einen Teil des Gehalts in Bitcoin zu zahlen. Er wird weiterhin ein Pionier in BTC bleiben

 

 

 

Circle: BitLicense Would Force Us to Block New York Customers

http://www.coindesk.com/circle-bitlicense-block-new-york-customers/

 

https://www.circle.com/2014/08/13/thoughts-new-york-bitlicense-Proposal

 

lYf9Hme.jpg

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VC Funding Boosts Global Growth For Berlin-Based Bitcoin Startup

 

http://www.forbes.com/sites/alisoncoleman/2014/08/13/vc-seed-funding-spells-growth-for-berlin-based-bitcoin-loans-start-up/

In another boost for Europe’s burgeoning bitcoin business sector, peer-to-peer bitcoin lending platform Bitbond has secured  its seed funding round, led by European early-stage VC Point Nine Capital

CEO of BillPay Nelson Holzner also contributed to the €200,000 ($267,000) funding round as an angel investor.

Based in Berlin, Bitbond offers an alternative source of finance for small businesses and individuals who struggle to raise funds via traditional means. It plans to use the capital investment to build a team of programmers, improve its platform functionality and intensify its marketing activities.

 

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Gartner's 2014 Hype Cycle for Emerging Technologies Maps the Journey to Digital Business

http://www.gartner.com/newsroom/id/2819918

 

 

 

  •  
  • Digital Business (Stage 5): Digital Business is the first post-nexus stage on the road map and focuses on the convergence of people, business and things. The Internet of Things and the concept of blurring the physical and virtual worlds are strong concepts in this stage. Physical assets become digitalized and become equal actors in the business value chain alongside already-digital entities, such as systems and apps. 3D printing takes the digitalization of physical items further and provides opportunities for disruptive change in the supply chain and manufacturing. The ability to digitalize attributes of people (such as the health vital signs) is also part of this stage. Even currency (which is often thought of as digital already) can be transformed (for example, cryptocurrencies). Enterprises seeking to go past the Nexus of Forces technologies to become a digital business should look to these additional technologies: 

Bioacoustic Sensing; Digital Security; Smart Workspace; Connected Home; 3D Bioprinting Systems; Affective Computing; Speech-to-Speech Translation; Internet of Things; Cryptocurrencies; Wearable User Interfaces; Consumer 3D Printing; Machine-to-Machine Communication Services; Mobile Health Monitoring; Enterprise 3D Printing; 3D Scanners;

 

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Hier eine sehr gute Auseinandersetzung mit dem Proposal der Regulation ("Bitlicense")

 

Comments to the New York Department of Financial Services on the Proposed Virtual Currency Regulatory Framework

 

http://mercatus.org/sites/default/files/BritoDourado-NY-Virtual-Currency-comment-081414.pdf

 

Aus der conclusion:

 

As we have noted, the current draft regulations miss the mark in two ways. First, although they laudably take into account some of the unique characteristics of virtual currency firms, they do not accommodate some other important aspects of new cryptocurrency technology. We have suggested some ways in which the proposed regulations could be improved in this regard. Second, BitLicense compliance should be no more burdensome than that of transmission of money licenses. We have noted several of the differences between these two kinds of licenses, and we ask the department to reconsider those aspects that make the virtual currency regulations more burdensome.

 

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Storj Vs. Dropbox: Why Decentralized Storage Is The Future

 

"Storj claims that buying and selling hard drive space in an autonomous network would reduce the cost of cloud computing by orders of magnitude, 10-100x cheaper."

 

http://bitcoinmagazine.com/15490/storj-vs-dropbox-decentralized-storage-future/?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=Feed%3A+BitcoinMagazine+%28Bitcoin+Magazine%29

 

Das ist ein Geschäftsmodell, das mir sehr gut gefällt, da Bitcoin es überhaupt erst möglich macht.

 

Grundidee: Jemand mit überschüssigem Speicherplatz vermietet diesen an andere, das Ganze wird verteilt über's Internet abgebildet.

Künftig soll also z.B. jemand in Indien 100 GB Speicher anmieten können, diese Daten liegen dann verteilt auf irgendwelchen Servern in USA, Frankreich, Südafrika, Kanada, China, Belgien und Australien. Zusatzeffekt: Mit der entsprechenden Verschlüsselung ist das sogar viel sicherer als z.B. Dropbox.

Die dafür nötige Zahlungsabwicklung kann man mit herkömmlichen Systemen vergessen, mit Bitcoin ist sie ganz einfach.

 

Das Konzept lässt sich auch schön verallgemeinern: Jemand mit einem Bedarf an einer über's Internet erbringbaren Dienstleistung kauft sich diese weltweit zusammen.

 

Eine mögliche Variante wäre z.B. Nachhilfe - warum soll die Englisch-Nachhilfelehrerin nicht aus Bangladesch kommen? Das ist um Größenordnungen billiger als hierzulande, d.h. die Lehrerin kann viel mehr Zeit investieren, bis hin zum persönlichen Coaching.

Mathe kauft man dann um die Ecke in Russland ein.

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Pantera BitFlash

Bitcoin’s volume-weighted price on the Bitstamp exchange fell 15% over the past week, to $501 yesterday.

 

The Pantera BitIndex four-week moving average continues to set new highs.

 

Monday, August 18, 2014

Website of the Day: Blockr.io collects data from the Bitcoin network and visualizes certain metrics in easy-to-read graphs.

 

Many are trying to use bitcoin to facilitate online micropayments. Micropayments can be used to pay small amounts of money for preferred content, for example, and thus websites running on this model might have less invasive advertising and more popular content. [Tech Crunch]

 

BlockTrail recently raised $600,000 to compete with existing bitcoin data-analytics sites Blockchain.info and Blockr.io. [Tech Crunch]

 

Sunday, August 17, 2014

Bitcoin prices fell this week as traders on the Bitfinex exchange faced margin calls. Long positions had reached as much as $30 million in outstanding swap positions. As prices fell, a cascade effect ripped through Bitfinex's order book, increasing the downward momentum. [MLT]

 

Opinion: Three trends that will make a difference in mobile payments. [TechCrunch]

 

Opinion: With digital currency on the rise worldwide, Bitcoin is making moves to bring convenience and a sense of stability to its brand. [GuardianLV]

 

Saturday, August 16, 2014

The price of bitcoin has dropped sharply over the past week, breaking a three month period of relative stability. [RIA]

 

Residents of Johannesburg, South Africa will have the ability to purchase bitcoin with cash this weekend, with the launch of Africa’s first bitcoin ATM. [newsBTC]

 

Opinion: Bitcoin supporters view the increasingly widespread adoption of bitcoin by popular companies as an important step toward pushing the currency into the mainstream. [NY Times]

 

Friday, August 15, 2014

PayPal subsidiary Braintree is in talks with Coinbase to start accepting bitcoins as payment. Braintree develops payment software used by multi-billion dollar companies like Uber and AirBnB. [Wall Street Journal]

 

Overstock.com, the first major U.S. retailer to accept bitcoins, anticipates bitcoin sales to top $1 million per month by year's end. [CNET]

 

Germany-based ASICrising GmbH says it is developing a more efficient computer chip for bitcoin mining. These new chips would only use half as much electricity as the chips currently in use. [WSJ Digits]

 

Long read: "The Man Who Really Built Bitcoin." MIT's technology journal writes about the lead developer of the Bitcoin protocol, Gavin Andresen. [MIT]

 

Thursday, August 14, 2014

The price of bitcoin fell sharply over the last two days, reaching a low of $497 today on Bitstamp before bouncing back to around $520. The price had been above $500 since May 21st. [CoinDesk] The last three days represent a departure from a relatively long period of low volatility. [WSJ BitBeat]

 

DISH TV now accepts bitcoin payments. [Tech Crunch]

 

Website of the Day: Bitnodes.io pin-points on a map every node in the Bitcoin network (every computer running the Bitcoin client software), providing a visual of the size of the Bitcoin network.

 

“Inside a Giant Chinese Bitcoin Mine.” [io9]

 

Wednesday, August 13, 2014

Peer-to-peer lending startup Bitbond secured a $250,000 round of seed funding. Bitbond is based in Berlin. [Forbes]

 

BitPagos[1] is launching a service that aims to make buying small amounts of bitcoins seamless in over 8,000 Latin American convenience stores. [CoinDesk]

 

Opinion: Tax treatment will influence the extent to which bitcoin is used as either a store of value or a medium of exchange. [AVC]

 

[1] BitPagos is a Pantera portfolio company.

 

Tuesday, August 12, 2014

Website of the Day: Coinometrics provides institutional-level Bitcoin data and research. Some of their proprietary data models include global currency flows into and out of bitcoin and price dispersion across multiple exchanges.

 

The monetary authority in Singapore remarked that digital currencies will play a role in the economy moving forward. [Central Banking] According to BitLegal, Singapore's government is "permissive" of Bitcoin.

 

An index ranking countries according to their likeliness to adopt bitcoin places Argentina at the top, followed by Venezuela, Zimbabwe, and India. [G. Hileman]

 

The Japanese bankruptcy trustee handling the MtGox case has announced a six-month extension for creditors to register claims. The decision also means there will be an additional six months before any formal investigation into the bankrupt exchange is completed. [CoinDesk]

 

Opinion: the government is trying to explain Bitcoin to normal people. [Time] Is it good or bad if the government calls Bitcoin "the wild west?" [NPR]

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Pantera BitFlash

We wanted to share real-time thoughts on why the price of bitcoins has fallen in recent days.

 

The introduction of margin trading may be the primary cause of the recent price drop we have seen in bitcoin. Combining the ability to leverage with a market that can be illiquid may have caught traders off guard and led to a cascading effect where margin calls resulted in forced selling, which in turn led to additional margin calls and selling. This was exacerbated by the difficulty of moving fiat currencies into and out of the exchanges offering margin.

 

Over the past year the use of trading on margin across a number of exchanges has increased. Margin trading began with Bitfinex in June, 2013. More recently, OKCoin, China’s largest bitcoin exchange, began offering this service in June, 2014. BTC-e and a number of other smaller exchanges also offer margin trading.

 

The following chart displays the low price on August 14th and 18th on the BTCe, Bitfinex, and Bitstamp exchanges. One piece of evidence that leads us to believe that the price drop was due to forced margin selling is that the lowest print across these exchanges during the extreme price drops were on the two offering margin trading.

 

Trading volume, especially at Bitfinex, has been significantly higher than the average volume over the previous 30 days.

 

Data is limited in the bitcoin marketplace, and it is hard to get the data one needs to specifically see a correlation between margin trading and price performance. The bitcoin ecosystem is slowly maturing with the development of trading on margin and swaps and futures markets. Proponents of these developments contend that over time these products will help decrease bitcoin’s wild price swings. Market participants will be able to more effectively hedge their positions and have more options to manage their risk besides limiting exposure by selling their bitcoins. However, since these products are in their early development, they may be contributing to volatility during points of stress.

 

The following chart provided by Bitfinex shows a sudden drop in the BTC swaps outstanding during the recent price drop. The buildup of long swap positions in bitcoin peaked around August 1st, with close to $32 million in swaps, although positions were still above $30 million through August 13th. This is about five times the average daily trading volume on the largest exchange, Bitstamp.

 

As Matlab pointed out, “Running some quick math based on the maintenance margin of Bitfinex of 13% and assuming Bitcoin as collateral we find that margin calls should start around the 520-540 USD/BTC mark. Yesterday [August 13], prices came close and today they finally fell off the cliff.”

 

The run has actually had a larger effect on altcoins than on bitcoin. For example, Litecoin, the second-largest digital currency, has fallen 62% since July 1st, compared to a 33% decline of Bitcoin.

 

Bitcoin now accounts for 94.9% of the market capitalization of all digital currencies compared with 93.8% one week ago.

 

Another interesting aspect of the recent sell-off is the possibility that bitcoin’s success is leading to downward price pressure. A number of large companies (such as Dell, Overstock, and Expedia) have begun to accept bitcoins as a medium of exchange. This is a very positive development for bitcoin’s long-term success; however, as these companies enter the marketplace they are likely to be sellers until they feel more comfortable holding bitcoin on their balance sheet.

 

The well-publicized increase in merchant acceptance may have led traders to become more bullish about bitcoin’s price, encouraging increased margin positions. Unfortunately, these positive developments may have actually led to downward price pressure, with margin calls precipitating a sharper market drop.

PANTERA PUBLICATIONS

 

You can subscribe to our publications by emailing ir@panteracapital.com or through our website [www.panteracapital.com]:

BitFlash: the day’s best Bitcoin articles, charts, and websites.

BitFlash Weekly Review: the week’s best Bitcoin articles, charts, and websites.

Bitcoin Letter: a monthly letter with our thoughts on significant market-related developments.

Investor Letter: Bitcoin Letter plus additional information for accredited investors.

Venture Letter: venture capital news for accredited investors.

White Papers: periodic original research and academic papers on Bitcoin.

The SEC mandates that only accredited investors can access certain information. To receive a password, register here: https://panteracapital.com/registration.

 

We tweet Bitcoin news and insights @PanteraCapital.

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