Paxum and Tradehill Drop Bitcoin On Uncertainty
Paxum, an online payment service and popular means for exchanging bitcoin announces it will cease all dealings related to the currency due to concerns of its legality. Two day later, regulatory issues surrounding money transmission compel the popular bitcoin exchange services firm Tradehill to terminate its business and immediately begin selling its bitcoin assets to refund its customers and creditors. The following day, Patrick Strateman, known on Bitcoin Talk as Phantomcircuit, benevolently discloses a devastating bug in BTC-E, another online exchange, secures its clients' accounts and funds.
*For Crypto to work in the real world of finance, certainty must exist, confidence in the technology and the regulations are equally important for global adoption. Use case legislation conceptually begins.
Themonetaryfuture.blogspot.com | BitcoinTitan | Archive.org
Linode Hacked and 46,000 BTC Were Stolen
A breach of Linode's server network and sought out Bitcoin related accounts, compromising the wallets of eight customers. Bitcoinica, being the largest, lost more than 43,000 BTC. Other prominent wallets included Bitcoin's lead developer, Gavin Andresen and Marek Palatinus a large BTC Mining Pool operator. Bitcoinica assumed the loss on behalf of its customers as did the Marek and his mining pool.
*Safeguards of real world capital are imperative for making a digital asset a viable, globally adopted security instrument. An absolute firewall between the digital value and the hard currency is needed to insure the utmost investor protection of invested funds.
ArsTechnica.Com | Archive.org
Bitcoin Savings & Trust Halt Payments
BTC Savings and Trust, under the promise of weekly "Interest" returns of 7% to its creditors, Trendon Shavers managed the illicit organization for approximately eight months. Shavers announced the operation's halt, and absconded with deposits thought, at the time, to be between 86,202 and 500,000 BTC. Clearly suspect with 7% returns of "Interest" Shavers was arrested in November 2014, and in 2015 he plead guilty to Securities Fraud resulting in the first U.S. criminal securities fraud case related to the digital currency.
*The Securities Act, FTC, and other regulators have longstanding expectations about investments, promoting investments, and how securities are identified and should be handled. Strict adherance to the most conservative interpretations of those laws and regulations is critical for institutional adoption. AH-041
Bitcoin Talk | Bitcoin Talk | Reuters
WordPress is First Major Site To Adopt BTC
Wordpress, the 25th largest website in the world issued a press release highlighting one of the most salient points still held today by the Blockchain Community at large. The stranglehold the financial institutions have on who can monetize the Internet. From their Press Release: "PayPal alone blocks access from over 60 countries, and many credit card companies have similar restrictions... we don't think a blogger from Haiti, Ethiopia, or Kenya should have diminished access to the blogosphere because of payment issues that they cannot control." This move paved the way for later retail ventures in Bitcoin.
*Regional restrictions on trade are always go;ing to be there, and in some cases for good cause, however, mitigating risk is a profit based decision, and appropriate, but in blockchain, the friction costs are significantly lowered, transparency can be immutably applied, and provides a better framework.
Halving Day Did Not Truly Address Underlying Inflation
In line with the original design for Bitcoin's maturation, the number of coins created to reward miners undergoes its first reduction, beginning the long process of tapering the amount of new currency entering the market. Halving days are scheduled events, four years apart, stepping down the number of new coins generated until the reward reaches 0 in 2140, to yield a fixed money supply of 20,999,999.9769 BTC. Preprogrammed arbitrary inflation curbs are highly controversial, and do not address any real economic concerns to control inflation of a "currency".
*Underlying value of a security should ALWAYS be the primary factor in determing the price of a security. Money supply is not value, especially in the context of a conveyance of value being used in commerce.
PR Log | Bitcoin Block | Reuters