Why I believe we're on the cusp of the 3rd great Bitcoin bubble
We've recovered from the last crash You might think it's a bit early (based on the time frame for the last recovery), but things are looking a lot different than in 2011. I would suggest its because the last bubble popped prematurely due to Mt. Gox's failure of a trading engine. Interest in buying Bitcoins has gone up to its highest point since the last bubble. There's a similar spike in general interest. Partly helped along by the Silk Road news. The network is being used at the same rate as during the last bubble. The Bitcoin ATM story (see below) is causing Bitcoin to trend in Canada on Google (was #1 for a bit). The $27 story (see below) will almost certainly cause a large spike worldwide in Google trends once they're updated up to yesterday. Lots and lots of new businesses now accept Bitcoins One legitimate criticism of Bitcoin last year was the lack of places to spend them. We basically just had Alpaca Socks, Reddit and Wordpress, we've grown a lot since then!
The $27 story is going massively viral I think the attention this story is getting took a lot of us by surprise. We're thinking "of course if you bought Bitcoins in 2009 you're rich" and it didn't make much of a splash. But to the rest of the world it's a very novel and interesting story.
Institutional money is coming Afraid with the price at $200 that it will be hard to find enough moms and pops to keep money coming in faster than miners are selling? Don't be, there are individuals out there with a net worth higher than the entire Bitcoin ecosystem.
Governments are explicitly saying it's not illegal More and more governments are either saying Bitcoins are legitimate currency, or releasing guidelines for exchanges to comply with anti-money-laundering laws.
New generation of exchanges Mt. Gox's terrible trading engine was a huge factor in the last crash. They couldn't keep up with all the new interest. This time around there are more exchanges in more countries, and not a single point of liquidity.
$1 in #Bitcoin to @RNLI via @ChangeTip on #TippingTuesday from #reddit
There's also UnitedWay.org, @UnitedWay, who I'm told accepts bitcoin donations, but I'm not seeing that option on their website. Won't hurt to try. And of course, @SeansOutpost, the homeless outreach center operated by Jason King, is also set up with ChangeTip on Twitter. You can also tip him here by mentioning SeansOutpost.
$1 in #Bitcoin to @SeansOutpost via @ChangeTip on #TippingTuesday from #reddit
There's also @EFF, who technically isn't a charity, but still a valuable cause.
$1 in #Bitcoin to @EFF via @ChangeTip on #TippingTuesday from #reddit
I know I missed some. If you have any other Twitter-able charities, I'll try to edit them in. Also, don't forget about your favorite artists, musicians, scientists, actors, etc… If they've given any indication that they're bitcoin-friendly, that's a huge plus. @IntelSoftware charity drive for young coders. Amnesty International @amnesty
$1 in #Bitcoin to @amnesty via @ChangeTip on #TippingTuesday from #reddit
Here's some general tipping etiquette to get the most out of your tips. Please encourage others to read this:
Add the word 'private' to most tips to keep threads tidy.
In /Bitcoin, we need to aim for at least 100 bits, but preferably $.25 or more.
When tipping anywhere else on reddit, I cannot stress enough how important it is to tip at least $1.00, because any less will almost always leave a bad impression since they're most likely not accustomed to microtransactions. If you're not sure how it will be perceived, you can always ask first, and/or use the 'private' function.
Here on reddit, I've heard that /art, /DIY, /lifeprohacks and /writings have been pretty receptive towards tipping, but please be respectful of these communities. Tip the creators of content that you appreciate, and don't copy/paste tips to trash threads. If you're not sure whether or not tipping is acceptable there, just ask somebody!
Bitcoin, Startups, and Suicide: Being an entrepreneur is hard
For over a week now, I’ve been trying to write a year in review piece for Satoshi Forest. The words, which usually just flow like a spigot when I’m passionate about something, seem to just dribble out. And what little eeks by is hardly print worthy. Maybe it’s just writer’s block? Writer’s block happens. Or maybe I’m not as passionate about Satoshi Forest as I used to be? But, I am passionate about Satoshi Forest, perhaps more than I ever have been. And writer’s block, if it is the culprit, cannot explain why I haven’t responded to Elizabeth Ploshay’s ALS Ice Bucket Challenge, in a timely fashion. I guess I’ll have to donate now. You see it’s not just the Satoshi Forest year in review, it’s everything. Emails from friends I haven’t responded to, phone calls I let go to voicemail, new endeavors at Sean’s Outpost I let sit unannounced (http://blockchain.satoshiforest.com/). And then it hits me. I’ve been here before. I’m really depressed. And it seems to be going around. Since the tragic suicide of Robin Williams, four (4) people close to me have also tried to kill themselves. One succeeded. An anecdotal survey of my friends has seen an equal uptick in the number of people talking about or attempting suicide. It’s been really disturbing. In the preparations for the Bitcoin in the Beltway conference this past June, I had one of the more surreal conversations of my life. An east coast sales director for Marriott called me wanting to know if bitcoin was linked to suicide. They had heard of the tragic death of Autumn Radtke in March (http://nypost.com/2014/03/06/bitcoin-firm-ceo-jumped-to-her-death-neighbo) and were concerned about hosting a conference for a technology that was making people kill themselves. I was sure he was joking. He was not. The conversation I had with him must have allayed his fears. #BitcoinBeltway went great, can’t wait to do it again next year. Obviously, bitcoin does not cause suicide. And while we are quick to sticky a “suicide prevention hotline” when the price crashes, bitcoin is not causing depression. What we may want to look into is something that is not bitcoin related, but more something that comes part and parcel with “bitcoiners”. The woes of entrepreneurship and startup culture. Being an entrepreneur is fucking hard. Really hard. Most people don’t even attempt it. It might not feel that way to you, but likely that’s because you surround yourself with other entrepreneurs. Your friends work at startups. Your trips are to startup conferences and conventions. Your news feed is bitcoin and hacker news. You are firmly in the echo chamber. Most people will never try and build a product or company. So most people will never experience what it is like to fear you won’t make payroll and someone else will not be able to pay their rent because of you. Most people will never know how difficult it is to raise money. To get someone else to believe in you enough to open their checkbook and support you financially. The hours you spend and the mental strain that comes from hearing “No” again and again and again. And if you get a “Yes” the pressure doesn’t dissipate! It increases! Now it’s your crazy idea and someone elses money you’re responsible for. Being an entrepreneur is really hard. And we are really hard on ourselves. We are afraid to show any weakness. Because we’ve been taught being weak or vulnerable is to be shunned. If someone asks you how your company is doing “We’re killing. it.” probably comes off your lips before you’ve even processed the question. It is statistically impossible for everyone to always be “killing it”. But ask at your next mixer or meetup and almost everyone will be “killing it”. And that pressure to succeed, to perform, to win is immense. And I think that pressure may be even worse in bitcoin. Not to everyone, but to a lot of bitcoin early adopters, and especially to a lot of early bitcoin entrepreneurs, bitcoin is a promise. A glimpse of a better world free from the inequalities brought by our legacy financial system. So if you fail in bitcoin, it is easy to feel that you are failing on that promise too. I’ve felt that way. Felt that if I screw up I am screwing it up for every non-profit and charity. That they will somehow not get the benefits of bitcoin because I failed. I see it in others. Just a week ago at #Cryptolina I talked with a group of brilliant entrepreneurs who were convinced that if they didn’t beat an incumbent payment solution to market, they had lost the war. And that whole segment of the market would NEVER benefit from cryptocurrency. Being a bitcoin entrepreneur is hard. And I don’t have the answers to how to deal with all the pressure and depression that come from doing what we do. But I have learned a couple of things and maybe someone else that is experiencing depression or having dark thoughts can read this and gain some value from what I’ve learned. And even better, maybe someone that has dealt with depression in the past can riff on what I’ve said and provide some insight into how they cope. 1) You are not alone. When you are depressed, it seems like everyone else has it all together and you are the anomaly. That’s not true. They probably don’t have their shit together either. And everyone has problems we don’t see. Everyone. Some of the greatest entrepreneurs and investors of all time have had brutal fights with depression and suicidal thoughts. READ: http://www.inc.com/magazine/201309/jessica-brudepsychological-price-of-entrepreneurship.html 2) Bitcoin needs you and it doesn’t need you. And that’s ok. Bitcoin needs you. It really does. But it doesn’t need only you, it needs all of us. You are not the single point of failure. Bitcoins success is just a decentralized as the blockchain. So give yourself a break. It’s ok to make mistakes and it’s ok to fail. It’s even ok to fail spectacularly. Think back to how many times bitcoin has been declared dead. How many times has the price crashed? How many times has a major bitcoin institution been corrupted/hacked/found to be a scam? And yet, here we are. An you are here too. 3) It is ok to ask for help. This is hard to learn. We come from a self sufficient culture. And if you ask for help, people will realize that you are not as awesome as they thought you were...BULLSHIT. Asking for help has ZERO bearing on how awesome a person you are. In fact, your friends WANT TO HELP YOU. Being there for you in a moment of crisis is something your friends are probably really down for. But if you ignore them or won’t tell them you are having problems it is really difficult for them to help. Talk to someone. If all else fails you can always call… THE NATIONAL SUICIDE PREVENTION LIFELINE: 1-800-273-TALK (8255) I know all of this might not make a difference. When you are caught up in your head in the middle of a depressive episode nothing seems to help. Try to find something that you can concentrate on just to get you thru the worst of it. For me, I go play with my kids. It helps me. Sometimes more than others. If you are feeling down, try to talk to someone. And if you see someone feeling down, try to lend a supportive ear. Bitcoin needs you alive.
If your website isn't even served via httpS, then there's no way I'm going to send money to your Bitcoin address...
I wanted to send some bitcoins to Sean's Outpost after having read Jason King's response to the open letter. Unfortunately, the Let's Talk Bitcoin page on which his response is hosted is not encrypted end-to-end! Someone between us—especially when accessing it through a proxy service like Tor—could automatically rewrite a raw Bitcoin address to one that belongs to a completely different entity. So, I didn't donate.
Just for fun, I was going to donate about $1 to the Tor Projectvia ChangeTip; the BitPay-backed donation form allows one to specify both the amount and the unit of currency, so I set the currency to "BTC" (why isn't there "mBTC", "uBTC", or even "bits"?) and the amount to "0.003", only to be informed that the minimum value is "0.01". How ridiculous is that?! It's as though the Bitcoin donation form is only aware of currencies other than bitcoin! I mean, if I changed the currency to "USD" and then input "0.01" (i.e., one cent), it would work, even though that's equivalent to using the currency "BTC" with roughly the amount "0.00003". Fortunately, my rage over the world's ubiquitous incompetence was assuaged by the Tor Project's suggestion that I donate resources instead to organizations who run nodes. To choose between Torservers.net and NoiseTor, I flipped a coin. NoiseTor it was… only it's website merely displays a static Bitcoin address via only unencrypted "http"! Can you imagine? A project intimately involved with the workings of Tor doesn't even bother to ensure that such sensitive information is delivered through an end-to-end encrypted channel. Oh, sure; the address in question is surrounded by a PGP signature, but who has time for that level of assurance? Who has time to worry about whether or not the software from gpg4win.org is itself safe? So, I didn't donate.
Is Paul Snow (Bitcoin Developer) too Old and Fat to Unicycle 20 Miles Across Austin?
The Texas Bitcoin Conference has four Charity Partners this year, Sean's Outpost, The Capital Area Food Bank, The BitGive Foundation, and Without Regrets. Paul: "Jason King is really the inspiration for this event. Last year he ran from the Miami Bitcoin Conference to the Texas Bitcoin Conference, then on to San Francisco. All the way across the country to highlight the plight of the homeless. "I can't see how I would be able to run across the country. But there had to be something I could do. In College I was a pretty decent unicyclist. So starting this Summer, I started training. At this point I am pretty confident I can ride the roughly 20 miles from my house to the Texas Bitcoin Conference venue." The ride will be covered via a combination of social media and traditional media on March 25. The ride will consist of a number of short rides in various parts of Austin adding collectively up to 20 miles. Paul: "I am not so young, so I am going to be picking some easy, safe roads that will none the less have value in generating interest for the Texas Bitcoin Conference charity partners" Donations to the partner Charities will be accepted in Bitcoin and in Dogecoin. Donations will be divided equally among the four charities. Paul: "Part of the exercise here is to demonstrate how people from around the world can donate easily, quickly, and safely in response to a need. Furthermore, all the collected donations will be distributed within 24 hours to the given charities. A cryptographic audit will be created in real time. "This level of transparency isn't possible with traditional donations, but thanks to Bitcoin it is now." This is a start anyway.
A massive 10 day Litecoin media awareness drive. We need more people to know about this great currency.
I'm calling for a massive 10 day media push. While the hype of bitcoin is ramping up Journalists are looking for another twist on the old bitcoin story. If you are good at writing copy then please write a press release and post it hear. If you do contact media please put what you wrote to them in this post so others can get an idea of where to go. When writing a press release try to think, "what makes a great story?". Think of headlines that are re printable. "People now making a fortune on bitcoin backup plan" Or "Homeless people getting fed with crypto-currencies" And then go on about bitcoin and litecoin at seans outpost. It is fine to talk about both bitcoin and litecoin but I would stay away from other alts. Most Journalists take press releases and just re print them because they are lazy so write one that is ready to go. If you need tips on writing press releases please google it. If you find good tips then please post here and help others out. As you can see I'm a shocking speller and thats why I haven't written a press release. Here are some points you could mention in a press release to the media
The creator of Litecoin Charlie Lee the brother of Bobby Lee the CEO of the biggest bitcoin exchange in the world, https://vip.btcchina.com
Diversifying into another blockchain is a great way to diversify your risk that in the unlikely event something will happen to the bitcoin blockchain.
The litecoins founder Charley Lee is not anonymous, is an ex google employee now working at one of the biggest bitcoin companies coinbase which might incorporate litecoin in the future.
Confirmation times are faster (yes that means you need more confirmations but for small transactions which don't need much trust but convenience this is great.) litecoin is backed by a different hashing algorithm than bitcoin which makes is harder to 51% than other altcoins because asic's cant just be pointed at it.
Trading between blockchains is harder to trace making it more anonymous than just using bitcoin
Get LTC while it is still so cheap and make a profit as it grows being an early adopter is a great way to reap rewards.
Trading between crypto currencies is fast and a great way to arbitrage the price differences on different exchanges
Trading between crypto currencies is not regulated by FINCEN and so allot of people that never want to have their crypto currency touch FIAT currency again would like to trade between crypto currencies.
Litecoin is the oldest, longest running and most trusted altcoin.
hundreds of thousands of people hold litecoin and would like to spend them at your store.
Litecoin has been allot more stable than bitcoin making it easy to accept at your store as crypto currency without going through a payment processor. "ok not lately but the last 6 months where nice"
Businesses that accept litecoin will be getting allot of free press as they will be mentioned in news articles that talk about the rise of litecoin. (This is more if you are contacting business to get them to accept litecoin but yeah"
It does no harm to accept litecoin as you will only make your market larger if you do. There are millions of litecoin out there ready to be spent so accepting them can only be a good thing for your business.
Litecoin is being developed by a lot of amazing developers and also have the bitcoin developers by proxy and it is based on the bitcoin protocol.
Instant world wide transfer of wealth that can be anonymous if needed.
Available on mac,PC,android and Linux
Litecoin is a great investment opportunity because it can double in value very easily. While bitcoin has to go to almost $700 to double your investment litecoin only has to go to $8 here is a good post on why litecoin is way undervalued http://www.reddit.com/litecoin/comments/1bpml0/litecoin_4x_undervalued_at_4/ I think that anyone that buys litecoin bellow $50 is going to be very wealthy in a few years.
It is important that bitcoin has competition. Even a decentralised currency needs competition with another decentralised currency.
Less fraud, litecoin payments are a great way to stop fraud. if you accept Paypal or credit cards you open your business up to stolen credit cards or Paypal accounts buying from you and then the funds being reversed by CC companies or paypal.
https://kojn-app.com/ Please let me know if there is another is a great way for your business to accept litecoin without opening your self up to the risk of price fluctuations as they convert the litecoin to FIAT at time of purchase.
Doing it here and open so the community can comment. Matt, I wasn't at first interested in the 12 days of bitcoin series because I expected a lot of noobery and didn't recognize how involved you were getting with the community. After seeing some of your posts though I checked one out and was/am extremely intrigued; and now, I wait with bated breath for the next one to come out. What turns out to be the most fascinating to me is your clear change in perception; from skeptical to clearly a bitcoin defender. It may be early to call you an enthusiast(?) but seeing your visceral reaction and reasonable defenses against the knee-jerk negativity of the other.. do we call them anchors? is A+ entertainment from someone who used to get excited anytime bitcoin was even mentioned on the news. The videos are sadly shorter than I would hope; always seeming to be cut off due to what I assume are network television constraints. If it's at all within your pull, I highly encourage you to make web-only cuts a la the way the daily show deals with longer-form interviews. I think your animations are hilariously terrible; but your target audience is not myself (nor most of the people here). With all the intro out of the way, I want to say: Wow dude, good fucking job. I'm extremely impressed with your attitude, the things you say, and your tone with the others you are talking to. I'd like to see, and would recommend a segment on 'real' bitcoin security. You talk about how it's untouchable by governemnt, etc.. but how secure is your bitcoin stash.. how much third party risk are you exposed to.. how much third party risk do you need to be exposed to in order to use bitcoin.. how does this compare with a fiat bank? Some bits on cold storage (why not put .1 btc away for retirement?) in paper wallets, electrum seeds, etc.. I'd really like to see more of a debate between you and one of the more skeptical hosts. Something I keep seeing again and again, both in your segments and the media at large is this store-of-value vs means-of-transaction dichotomy. I think it would serve you well to really grok the fact that bitcoin fundamentally cannot be a means-of-transaction without it being a store of value. In the same way one of these alt-coins with tiny market caps cannot transmit significant amounts of value over their network without severely affecting exchange rate; bitcoin is limited in its ability to exchange value by it's total market cap. Consider trying to exchange 15 billion dollars with bitcoin; to acquire/sell that much bitcoin is essentially impossible since it is bigger than the total market cap. Thus, with a market cap of zero, you are limited to zero ability to transact. Similarly, transactions in bitcoin are actually limited to a small (uncalculated afaik) fraction of total market cap of bitcoin to be considered useful. That is not to say that bitcoin needs to be used as a store of value by everyone who wants to transact with it; just that bitcoin is only useful as a transactional mechanism if someone is storing value in it. Conversely, bitcoin as a store of value is directly linked to it's use as a transactional mechanism. Luckily the world seems to be full of people willing to speculate on / hold bitcoin for those who just want to use it to transmit. When people say that bitcoin is a commodity and not a currency; logically bitch slap them and remind them that anything that acts like a currency is a currency. Take a quick peak at : http://en.wikipedia.org/wiki/Commodity_money and remind people that just because they don't want to use bitcoin as a currency doesn't mean that when I buy plane tickets / cars / food / drugs / electronics / services / hotel rooms / cocktails; I am not literally using bitcoin as a currency. If you can spend something to buy something it is a currency; regardless of any old-paradigm-clinging pundit's notion of what the world ought to look like. You talk a lot about how the bitcoin community is different than wallstreet is trained to think; with people generously tipping you and others; I think a shout-out to Seans Outpost would be a good thing.. the way he/they have leveraged bitcoin to do insane amounts of good can maybe help some to get this bitcoin=drugs/child-porn/terrorism notion out of people's heads and into reality. Talk about remittances; m-pesa loaded with bitcoin as a concrete example, but also the general notion of wellsfargo fees compared with average remittance size; and how bitcoin can compete with that. Maybe this isn't ready for bloomberg tv, but for yourself, consider the implications of cryptocurrency as an idea for the long term. Consider the (extremely unfair?) divide that is created by those with access to essentially free federal reserve sourced capital and what it means for the world if the source of money is literally hashing power; what happens to the institutions what make up like 20% of GDP and 40% of all profits if this source of free capital dries up? What happens to the world's "have-nots" if the parasitic version of the "haves" have less? Those who have seen the light see that cryptocurrency (not necessarily bitcoin.. though it appears IMO to be a long-term player) will change the world as dramatically as electricity, combustion engines and the internet. There are zero signs of decreased adoption; and looked at long term an S-curve adoption is all but imminent. Do you see it yourself? Do you see how this idea, a distributed proof of work, guaranteed-fair, block-chain ledger is just too-good and too obvious to EVER go away without something better coming along? What you are reporting on now will almost certainly go down in history as one of the most fundamental changes in human society. That is not to say that fiat currencies will go away soon or ever; but bitcoin is a new class of thing; not to be compared as silver vs gold; but apples vs oranges. Comparing gold to bitcoin or bitcoin to dollars is like comparing a Model-T with a horse-drawn buggy; or a wind-powered mill (windmill) vs AC power in general. Importantly, this same argument applies to the deflationary aspect of bitcoin. First and foremost, bitcoin is still inflating, how this point gets missed by all the nay-sayers (and advocates) is beyond me, but its important to note that over the next year ~1.3 million new bitcoin will be minted; a horrendously large >10% rate of inflation! Secondly, and more to the point; every single anti-anti-inflation argument is tied up in the notion that the non-inflating currency is the only available currency. There is no reason to think that this is, or ever will be, the case; or the goal. Bitcoin can and will run in parallel with fiat currencies for a long, long time to come. And those who argue that people won't spend bitcoin because it's deflating, and is therefore useless.. push them to the logical extreme of the argument... if it's useless isn't it valued at 0? Wont it inevitably go to zero? If it will inevitably go to zero, won't there be a period of time where it is going down in value? Won't people then be encouraged to spend their bitcoin? Why do people buy cellphones today at 3x the cost of what they will cost them in 6 months? Why do people spend bitcoins at all, which they clearly do (100MM through bitpay alone).. if this infallible economic argument is accurate? Push on them and see what they say. If a physicist says that "when i drop a ball it will fall at a certain rate" and someone drops a ball and it falls at a different rate; the physicist has to change his underlying theory. When an economist says "people wont spend bitcoin", and people actually do spend bitcoin, why are they not forced to change their underlying theory?
Come up with a catchy title. A good use of alliteration escapes me at the moment. This would likely go hand-in-hand with the day of the week.
So everyone ... your thoughts on the idea? And if you like the idea, some insights on your bitcoin activities this week? Edit/followup: though this didn't gain a ton of exposure in /bitcoin, those who found the post seemed supportive of the idea, so I'll continue this again next week. So far we're still without a catchy title suggestion, but that's okay. Thanks to everyone who shared. It was great to see a recap of some new ways to use bitcoin!
We are launching a new Bitspend Shopping Cart extension for browsers, and a new Bill-Pay feature.
The Bitspend Shopping Cart Our new shopping extension will allow you to shop the web, even multiple sites, and place your Bitspend order without ever visiting bitspend.net. It will let you add items directly to your Bitspend cart, and place your order when ready with a single click.
In the settings you will be able to set your default shipping information. This data is stored by your browser, and encrypted when transmitted to us as you place orders. In future releases you will be able to setup delivery profiles, so you can order to multiple addresses(home, office, etc.) without hassle.
In the extension drop-down you will be able to add items, change quantities, and add notes. This is also where you go to view the cart.
The cart page itself will allow you to remove items, change quantities, view the items on their respective webpages, clear the cart, and place your order. You will notice we also have an option for you to donate $0.50 to Sean's Outpost for the order.
Bill-Pay with Bitspend We are setting up arrangements with major utilities and other services(power, cable, cellphone, etc.) to make it as painless as possible to have the ability to pay your bills with Bitcoins via Bitspend. We have not launched this feature on the site yet, but if you are interested in being a part of the test run, please let us know. (comment here, PM us, or use smoke signals) Some Info:
Bills will be paid the same day you make your Bitspend payment.
We do not mail checks to make your payment, all payments are made to the payee electronically and are instant. (in some cases when a check is needed like rent or mortgage, etc., we accommodate)
Recurring charges and subscriptions are in the works, but are not yet available.
How much does it cost?
$0-$99 = $3.00
$100-$149 = $4.00
$150-$300 = $5.00
Bills over $300 will be charged the $5 fee and a 1% fee for the value over the initial $300. (a $500 bill would incur a $7 fee. $5 for the first $300 and then 1% of the remaining $200 is $2.)
I had all my bitcoins stolen today. I’ve been using Bitcoin for a year and a half now and love it. I use it for purchases, to reimburse friends, conference registration and as much else as I can. My perspective on Bitcoin is one of personal freedom and accountability. This new currency and payment method is a tool for individual liberty. The peer-to-peer transactions allow for decentralized networks to flourish. It encourages and sustains the transfer of currency from person to person. As a single mom with 5 kiddos to love and support, the option of using bitcoin is appealing. I bought a few when they were still pretty low and have been adding to my bitcoin collection as funds allow me to. I kept my wallet on Coinbase and was in the process of transferring the majority to a paper wallet. Understanding how it all works has been a challenge for me as I know it is for many people who hold Bitcoin. Before putting most of my usable Bitcoins into a paper wallet, I wanted to make sure that I understood how to access them. Not fully understanding it all, I had not completed the process. For anyone whose bitcoins are not secure yet, please let my delay and misfortune be an encouragement to you: get your bitcoins secured! And get away from Coinbase. Their response to this situation has been horrible. Through lack of availability when the incident started to the flaws in their system that allow, what I am finding to be prevalent hacking, their response is awful. Coinbase is worse than useless. As I speak to others about my experience, I realize that this is a common perception within the community. In my case, I was watching it happen in real time and unable to do anything. I had 2 factor authentication enabled for my wallet. I got an email from the authy app stating that my account had been reset and to click the link to verify it and that if I had not done that to ignore the email. I had not done anything so I ignored the email. When several verification codes came in a row, I became suspicious and attempted to sign into my Coinbase account. I was unable to sign into Coinbase and quickly realized my email account was hacked as well. I immediately changed my password for my email and reset my Coinbase password and signed in. In checking my gmail “account activity” I saw that I was only a few minutes away from when the hackers had sent bitcoins to an external address. My bitcoins were gone. Sent to this wallet from my hacked account 13teHkGZ21d5Tf7aRrMasFzyqtb9sSDftq While this loss is certainly financially difficult for me—the bitcoins were part of my budget for what the kids and I need—it is also a reminder of what is truly valuable in this world. An explanation to my children about the theft gave them something to reflect on to understand the importance of integrity in their lives. As we made cookies together--planned earlier in the day--we discussed what adds value to life. Inherent in Bitcoin transactions, comes a level of value in knowing that we are all contributing to something far greater than any of us individually. Even if it does take extreme personal sacrifice sometimes. To those who stole my bitcoins, if you are beginning to understand what is valuable in this life, please take the 30 Bitcoins you stole from my children and me and send them back. You can use my new wallet (and now secure, thanks to your lesson.) 1AiDNjM8zT9Ku9EQKMqEhYrmvAU2RpdeuQ If that doesn’t appeal, please donate my bitcoins to Sean’s outpost or Fr33 aide or use them to buy Permacredits in September when Permacredits launches. Maybe then you will begin to understand what really holds value in this life. I can promise that if you take one of the actions above, you will gain something of far more value than the 30 bitcoins you stole. As a reminder for what is valuable in this life, I turn to Rudyard Kipling’s poem frequently. These two lines especially resonate right now “If you can meet with triumph and disaster and treat those two imposters just the same…” While this can certainly qualify as a disaster in my world, I see it as a greater opportunity to strengthen a community and bolster weaknesses in an imperfect system. I am constantly amazed and inspired by the love, beauty and hope that the Bitcoin community embodies. When people come together in synergy, the possibilities are endless. I see the inherent value in a system and a community where decentralization is allowed to flourish. Bitcoin, and other crypto currencies, will always have my vote. For this and other articles by this author, please check here http://nourishingliberty.com/disaster-triumph-stolen-bitcoins/
The 'friendly' Shibes are constantly putting down Bitcoiners. It's putting to a lie the claim of dogecoin being friendly
I was browsing through this: http://www.reddit.com/dogecoin/comments/1wy7vu/difference_between_doge_community_and_bitcoin/ and I see numerous comments claiming Bitcoiners don't spend their coin. One person claimed they want to encourage you to spend, while they hold, so that they can get rich. Really? That's friendly and positive? Generalizations like this are kind? Bitcoiners aren't charitable. Bitcoiners don't tip. This is all ridiculous. Spending: Numerous businesses have reported seeing a substantial increase in sales after accepting Bitcoin. There is absolutely no evidence that the Bitcoin economy is having trouble with people not spending. Besides Krugman and other Bitcoin haters, no one claims this. Charitability: Bitcoiners have given hundreds of thousands of dollars in BTC to feed the homeless by donating to Sean's Output: http://bitcoinexaminer.org/seans-outpost-has-already-provided-over-20000-meals-to-the-homeless-thanks-to-bitcoin-donations/ There are hundreds, if not thousands of organizations that have received donations from Bitcoin users. The total donations add up to tens of millions of dollars at today's values. Tipping: Bitcoin users might not send as many tips as Dogetipbot users, because the Bitcointip creator considers small tips a kind of spam that might annoy the recipient, and discourages them, but they have tipped huge amounts. We're talking dozens of tips worth hundreds of millions of Satoshis (hundreds of dollars at the time, thousands of dollars at today's market prices). So what's up with the put-downs? Where is the evidence for all these negative stereotypes being upvoted? How is this friendly or positive?
The latest fad in /bitcoin is that the price of bitcoin doesn't matter. One thread was titled "Sean's Outpost can give meals whether bitcoin is worth $35 or $1200!" That's true, but bitcoin is more complicated than that one use case. I talked about the insane amounts of venture capital being poured into the industry right now a few weeks ago. The price of bitcoin is important for these people because it affects all sorts of businesses. For example, mining businesses can't profit if there is a crash after they design their chips. Exchanges make less money if the price is lower because a lower price can't support high volume. People who build projects on top of the network and who are sitting on donations can fold. Altcoins that are promising can be forked because it is no longer profitable to mine them. Even at higher prices, there was not enough money to go around to prevent most of the VCs from losing on their investments. The piece of the pie that the VCs can earn shrinks as the price of a bitcoin falls. These people have deep pockets, so most of them can survive a brief downturn, but as the network expands, the lower bound price that would precipitate a complete collapse is rising. When bitcoins averaged around $50, there weren't lots of employees getting paid in bitcoins and bankers wanting returns on investment. Now that bitcoins tend to average around $600, the size of the economy has increased significantly. Previously, the price of bitcoins could have dropped to $10 and everyone could still have looked forward to a recovery. Now, the minimum price is much higher (I've said $200) where a cascading chain reaction of business failures would take out the whole industry. In the future, that minimum price will likely rise to $1000, and then to $10,000, and so on. The price falling below $200 or whatever the minimum is doesn't itself signal anything wrong with the promise of bitcoins. Instead, the low price will cause the failure of some critical part of the infrastructure like a major exchange, which could then cause businesses that depend on the exchange to be taken out, and so on. Even if everyone who owns bitcoins believed that the technology would succeed and there were many people spending bitcoins, the businesses would all be forced into bankruptcy simply because other businesses they need to offer their services failed in a chain reaction. This VC bubble is dangerous and the best thing that could happen right now is for the VCs to stop temporarily with their investments so that this does not happen. Otherwise, the industry will end up in a fragile state where there are startups depending on other startups that have business models depending on a base price.
The "technology adoption curve"
One of the popular graphs making the rounds nowadays is the "technology adoption lifecycle" graph at http://setandbma.files.wordpress.com/2012/05/technology-adoption.png. According to the people who agree with the theory, bitcoin is currently in the bottom of that huge valley in the middle of the chart. One writer suggested that bitcoin was somewhere near the top of the curve still, with a long ways to fall down the valley before the technology ends up as a fraction of what it was thought to become. While this chart may be relevant to other technologies, it isn't relevant to bitcoins. The most obvious problem with trying to explain bitcoin adoption using this chart is that there have been many bubbles, but the chart only contains one bubble. It would have been possible to pull out this "technology lifecycle" chart after any bubble in the past few years and state that bitcoins were stuck in the "chasm" and will be permanently damaged. For example, someone could have drawn this graph after the period where bitcoins fell from $50 to $2 and stated that the use of the technology will never be valued at more than $20. Another reason to ignore this chart is that many of the other technologies that are often compared against it didn't follow the chart either. Some people suggest that the Internet followed this chart, because there was a bubble in 2000 that later crashed, and that the high hopes of the Internet transforming daily life never came to be. The way I see it, the Internet has grown far beyond anything imagined in 2000. Whereas pets.com might have failed, Wal-Mart is now losing customers because Internet shopping has become so cheap that it is a bad idea to go to their stores anymore if your goal is to save money. Cell phones have made many people oblivious to the world; I recently compared what it was like to ride the bus when I went to college and what it is now like to ride the same bus system. Now, everyone on the bus is engrossed in their phones and nobody even bothers to look out the windows, and in ten years people will probably be playing video games with their friends in their glasses, oblivious to the world around them. Bitcoins are also not "just another technology." There are some technologies like bitcoin that can completely change the world. The Internet, television, and radio were a few of them, because the way the world worked was fundamentally changed by these technologies. Most of the other technologies listed on these charts, like facebook, self-driving cars, and virtual reality are not things that fundamentally change the way the world works. The economy ticks on without being changed significantly by facebook, but any company that has no Internet connection is obsolete.
Unbelievable deals on PS4s
Newegg has unbelievable deals on Playstation 4s right now. If you pay with bitcoins, you can buy one for $319.99, almost 30% below market rate. These are brand new and sealed, and it's likely that Sony will not lower prices to this rate for at least a year or 1.5 years. If you want to make quick money, you can buy a PS4 and then undercut sellers on Craigslist to pocket 50 bucks. For some reason, the market of these bitcoin-discounted PS4s and the dollar-denominated PS4s is decoupled and there is significant profit to be made. I was trying to figure out what the catch is with these consoles yesterday. Newegg must be losing money on these, because they have a limit of 1 per customer. If they were earning money, there would be no reason to have such a limit. If they were simply offering a loss leader to get people to shop at Newegg or to upsell accessories, then they would offer the same price or close to it in dollars. Therefore, there are three possibilities for this pricing. The first is that Newegg is being killed by so many transaction fees that they can actually afford to discount the PS4s to this insane price rather than give most of their profits to banks. The second is that bitcoins are priced low, and the company is gambling on a 30% loss now to gain more when this panic subsides. The final reason is that they simply want to promote bitcoins as a currency because in the long-run, the money they can save from transaction fees if bitcoin were the world currency far outweighs the losses they are taking on these items now. I will take a risky position and say that #2 has played a role in this sale. If a company were looking to promote bitcoin adoption, and hold some percentage of assets in bitcoins, then the best time to do it would be when prices are very low. They can sell thousands of these consoles and take $30k in losses, but they end up with 1000 bitcoins in return. In the process, there are a certain number of people who bought accessories that are very profitable, there are new customers who will now return to Newegg in the future, the price of bitcoins is likely to rise eventually, and they have encouraged people who otherwise would never have bought bitcoins to do so, so that the transaction fees they pay in the future are more likely to be lower. Someone in the accounting department was tasked with adding together all these probabilities and came up with how much they can discount the units to make a profit in the long term.
How long a transaction takes
I read an article this morning where someone mentioned that the average time a person needs to wait for a transaction to process is five minutes. The number is derived from the incorrect assumption that blocks occur every ten minutes, so if you picked a random point between these ten minute intervals many times, it would be, on average, five minutes away from the next block. Some people also state that it takes ten minutes to process a transaction, which, again, is inaccurate. What's alarming is that journalists for big-name newspapers spread false information to the public when they publish articles about the supposed "10-minute confirmation time." Hashing for the bitcoin network is independent. If people have been hashing for 60 minutes without finding a block, there is no greater chance of finding a block in the next minute than there was 60 minutes ago. Therefore, one cannot say that blocks occur "ten minutes apart," because that isn't always true. Having done lots of work on a block does not mean that the next block is any more likely to be found sooner. The time until the next block can be calculated using an exponential distribution. If the hashrate has not increased or decreased since the last difficulty change, publishing a transaction right now means you can expect for it to be confirmed in about 6.9 minutes, not 5 or 10 minutes. This calculation does not make intuitive sense, but results from the random nature of independent hashing. This is good news for those who mistakenly believe that it will average 10 minutes for a merchant to receive a transaction.
We're working on a bitcoin project for a hackathon and need help to win!
We're PayRail and we are competing in Startup Weekend to build an app that communicates the benefits that bitcoin brings to international transfers without emphasizing bitcoin or the underlying blockchain technology. The idea here is to build a mobile wallet which allows people to send money to anyone in their phone's contact list (instead of an email or bitcoin address) quickly and easily. Our hope is to easily facilitate BTC payments on a smart phone without requiring anything more than a phone number and password. We also want to help merchants know whether their customers use bitcoin and whether it is worth it for these merchants to integrate bitcoin for their existing customer base. We can do this by comparing our encrypted database of user phone numbers with the merchant's existing customer database (which will necessarily have to be encrypted the same way as our database) to determine if there is a match. The more matches, the more incentives for the merchant to integrate bitcoin. So here's our main question: do you see value in bringing this to merchants? Our chances of winning this hackathon go up dramatically if we make even just one sale! If you want to see more merchants accept bitcoin and want to help us win, please send us some Satoshis to show your support. Any funds collected will be donated to Sean's Outpost at the end of the competition. Please send your support to 1AzSBgBkipyrc4APkL8C2AB1LQbbVnnnmD - this address is owned by Sean's Outpost. You may also send tips via ChangeTip, which we will forward to Sean's Outpost when the competition ends tomorrow evening. We welcome any constructive/critical feedback about our idea. Time is of the essence.
I sent a test amount of Bitcoins to multiple recipients and returned the change to the original wallet signing an offline transaction. I now feel secure in that regard. Many people are wondering if I will make good on my promise. This is part of a private message I sent Jason of Sean's Outpost last night: I'm going to honor my agreement. There is no amount of money in this world for which I'm willing to part ways with my integrity. However, I'm concerned about the tax implications. I contacted /accounting and got some good advice and I called a CPA I know and left a message. (Haven't heard back. Will call again) As crazy as this sounds, I still need to learn how to actually send the money safely using an offline transaction. done now I'm going on 4 hours sleep, because I was trying to send it last night before the deadline. I did not want to screw it up and gave up defeated. I'm glad to hear the match is still on. I'm at work, but tonight after my kids go to bed, I can try to send the first part of the donation. I want CPA advice on how to proceed so I am covered if the tax man comes knocking. According to /accounting, if I donate to you guys, and bitcoins appreciate in value over the next year, I'll be on the hook for the capital gains tax. So this is the scenario I fear: I donate the +20 bitcoins to you today each worth $1045.19 (total 20903.8). Come next year, they are each worth $10,000 (which I believe is possible). That means, if I understand this correctly, that I would have to pay taxes on the net increase 200,000-20903.8 = 179096.2 . CGT can be as high as 39.6% plus state taxes. We are talking over $70922.09, I'd be on the hook for. Homey can't play that game. I propose the following: I figure out today how to send what amount of bitcoins is needed to get you to part ways with your man mane. Get that sent amount sent pronto for the match. (I'll probably need a receipt for IRS.) Then, let me talk with my CPA, get his advice in writing, and proceed from there on sending the rest. This may mean waiting a year to lower capital gains hit to only 15%. We shall see and I'll keep you informed. May you be blessed for the work you do. I'm thankful I'm in a position in my life where pulling a Marcus Hall on the bitcoin community and walking away with the money is not a big temptation for me. 25,000 dollars is a life-changing amount of money, and the gravity of the situation I'm in does not escape me. As of 12/3/2013 10:12 PM, (I should be in bed!), there have been 119 Transactions Total Received 23.00532488 BTC. That means 20.74479702 is what was promised to Sean's Outpost. I plan on sending 11 BTC now, and once the tax implications are settled, another donation will be made from the HiMoM acct., possibly in a year to avoid steeper capital gains rates. Jason and I discussed entertained the idea of establishing a endowment by sitting on these bitcoins for a year and seeing by how much they have appreciated. Which has more utility for the charity? 22,000 now or 220,000 in one year? One side note before I sign the transaction. I firmly believe in paying a 10% tithe to God on any financial increase I receive. I have done so since I was a boy, and have never know want. I believe this bounty should be tithed. While we may share different beliefs about this, I hope the Bitcoin community can understand or at least respect this. This will be calculated and appropriated when the second transaction is signed. It's been a fun ride so far! I apologize to everyone that has asked for aid. This money has already been spoken for. I never imagined this would take off like this! Front pages on every major news outlet! I'm tipping three guys for making this possible. daddyfatsax , DanielTaylor, and a guy at work who helped print out the sign. Oh, that reminds me. I'm not a college student anymore. The media assumed I was, but I was just trying to make a funny sign. edit: be2been
AllCrypt.com launched last night. Donated 3.59 BTC to Sean's Outpost
A month ago we announced our exchange. We opened coin voting so that we had an open and transparent way to get coins on the exchange. The voting also took donations for votes to help support development. In just over 3 weeks of voting, we collected 17.98 BTC. We publicly pledged 20% of all vote donations would be going to charity. Today we sent that 3.59 BTC off. TxID 978c11b917caf0104e695ef626f500d4ee86782c0f0bf85fc4ded7a205089e3f We are different. We value privacy, security and transparency. A lot of posts floated about "bets on when they run off with the coin?" - And we have no intention to. We pledged 20%, and it was sent today. Part of the rest of the collected coins are going to pay off hardware. About 1.7 is going to the Bitcoin Foundation for AllCrypt.com to receive a Silver membership. The rest to service fees, electric bills, etc. We want to be your exchange of choice - not because you've no other option, but because we listen and deliver on our promises. We work with transparency and integrity. We're the only exchange to sign all of our emails with our public BTC address to make our emails phish-proof. We're working with other organizations to develop proof of solvency while protecting our users privacy. We want you to pick us because we deliver exactly what you want. And the only way we can do that is if you tell us. Log in, make an account, and vote on the next coin you want added. We added three more today: USDE, Catecoin, and Pesetacoin. Use our community section to list feature requests and ask questions. Oh, and because we can - a percentage of all trades are donated to charity. Hope to see you there. The AllCrypt.com Admins And because I've already been asked:
-----------Begin Signed Message Block--------- AllCrypt.com owns the address which donated the 3.59 BTC to Seans Outpost, 20% of all funds raised during our development. -----------End Signed Message Block--------- BTC address used to donate the funds: 1QJTAAn67jNDBouNegNaxC5b3oydYqaSvD Signature: G0kXK97hMqqkiKYVEnBRF5HXJz9u/5lP5CnjVGsv9mDiJjmmDRDG1kxcPkeytcIOLoi9Sszd5A7dCKx+yLcXaCE=
Sean's Outpost is one of the first charities who accepted bitcoin.
http://www.coindesk.com/seans-outpost-charity-finances-hit-drop-bitcoin-price/ Two days after this article was publish the wallet have only 2.7 bicoin in it. We should give more bitcoins so that the absolute value we give to the organization does not change. Just because bitcoin’s value went down, the values required to provide for those in need did not change. We are proud to have our own charity based on bitcoin. This year many nonprofit organizations start accepting bitcoin. But this organization cannot be continue to sustain on bitcoin; we can do something to change that.
So you want off this crazy ride? I can understand the impulse. Before you transfer all your coins to the exchange, let's look at your options. 1) Sell on an exchange. Assuming they stay liquid, you'll get some money back. It'll sit in your bank account and lose value over time. Woo. 2) Buy stuff! Last time this happened you were pretty limited on what you could buy. This time around you can get stuff from Tiger Direct, NewEgg, Dell, Gyft, and a lot more. This won't completely alleviate the selling pressure on the market, but it might stagger it some. Bitcoin thanks you, and you'll have stuff. Stuff is fun. 3) Donate it to a charity like Sean's Outpost, Wikipedia or Extra Life. These causes will put what's left of your bitcoin to good use, and you'll get to help some people out. 4) Hodl. It'll get better eventually. At least, that's what I believe. Disclaimer: The Extra Life bitcoin team is my team.
Is Paul Snow (Bitcoin Developer) too Old and Fat to Unicycle 20 Miles Across Austin? (Donation to be accepted in Dogecoin and Bitcoin)
The Texas Bitcoin Conference has four Charity Partners this year, Sean's Outpost, The Capital Area Food Bank, The BitGive Foundation, and Without Regrets.
Paul: "Jason King is really the inspiration for this event. Last year he ran from the Miami Bitcoin Conference to the Texas Bitcoin Conference, then on to San Francisco. All the way across the country to highlight the plight of the homeless. "I can't see how I would be able to run across the country. But there had to be something I could do. In College I was a pretty decent unicyclist. So starting this Summer, I started training. At this point I am pretty confident I can ride the roughly 20 miles from my house to the Texas Bitcoin Conference venue."
The ride will be covered via a combination of social media and traditional media on March 25. The ride will consist of a number of short rides in various parts of Austin adding collectively up to 20 miles.
Paul: "I am not so young, so I am going to be picking some easy, safe roads that will none the less have value in generating attention and perhaps a little money for the Texas Bitcoin Conference charity partners."
Donations to the partner Charities will be accepted in Bitcoin and in Dogecoin. Donations will be divided equally among the four charities.
Paul: "Part of the exercise here is to demonstrate how people from around the world can donate easily, quickly, and safely in response to a need. Furthermore, all the collected donations will be distributed within 24 hours to the given charities. A cryptographic audit will be created in real time. "This level of transparency isn't possible with traditional donations, but thanks to Bitcoin it is already possible for Bitcoin and Dogecoin donations today."
This is an open letter written by Jason King, founder of Sean's Outpost in response to Ben Doernbergs' recent questions on the topicIt can be very uncomfortable to be criticized. Especially in the context of what we have accomplished here at Sean's Outpost. My first impulse is to be extremely defensive. After all, we have accomplished so much. r/Bitcoin: A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money … Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts. Log in sign up. User account menu. 77. Guy who uncovered the Moolah scam questions Sean's Outpost transparency. Close. 77. Posted by 5 years ago. Archived ... Sean's Outpost is the charity he founded to feed the homeless in his hometown of Pensacola, Florida, where roughly one in six people live below the poverty line, and BTC is bitcoin. Like a few ... Since its inception, Sean’s Outpost has raised over 470 BTC from 1,925 donations, which equates to more than $171,000 at current bitcoin prices. However, the actual dollar value of bitcoin ... Sean’s Outpost, a homeless shelter in Pensacola, Florida run by Jason King, first started accepting Bitcoin in March 2013, carrying a simple message: “When we break down cost, it runs about $1.25 to make a bagged lunch and get it delivered to a homeless person. 40 meals = $50. $50 is K1 BTC. Here is your chance to make a guaranteed, phenomenal return on your investment. Donating 1 bitcoin ...
In other news: - Richard Branson sees potential in BTC. - An open letter to Sean's Outpost - 100,000 Transactions in a single day - Ethereum and Counterparty are competing for the Bitcoin 2.0 title. +Jeffrey Tucker interviews Jason King on why he is raising money with #Bitcoin, and the dramatic story of his own charitable work. Co-Founder, SeedCo.in and Founder, Bitcoin Institute Jason King Sean's Outpost Charlie Shrem Co-founder and CEO, BitInstant Charlie Lee Creator, Litecoin Pua Pyland Bitcoin Blogger, The Bitcoin ... Sean's Outpost founder Jason King sits down with Money & Tech's Seamus Calder at Coin Congress in San Francisco to talk about his Florida-based non-profit charity that helps feed and care for the ... Sean Logan 141 views. New; 3:03. Top 5 Bitcoin Predictions for 2020 (BTC Price Prediction) - Duration: 12:21. BitBoy Crypto 3,943 views. 12:21. Jordan breaks down Dems' talking points during ...