Jon Southurst (@SouthTopia) provides in a post on CoinDesk some examples of how with Bitcoin is not just 9/10ths of the law, it is the law. Bitcoin is a bearer instrument — meaning if a payment gets sent to the wrong party, or a thief gains control of a wallet, the funds can be spent. Excerpts:
“A simple concentration lapse can see exponentially more bitcoin leave your wallet than you’d intended, never to be seen again.” – “The difference between bitcoin and cash, though, is that much larger amounts may be at stake. Cash transactions tend to be smaller, while (reputedly safer) credit cards and bank transfers handle larger ones. Bitcoin allows you not only to transfer a million dollars in a heartbeat, it gives you a chance to send it to the wrong place. Or nowhere at all.” – “Mike Hearn, developer at the Bitcoin Foundation, says most loss-causing errors are the result of users not backing up locally-stored wallet files at the right time, and by misusing paper wallets.” – “The bitcoin development team also hopes to add human-memorable address aliases and a messaging function to transactions. Messaging would allow users to include a refund address with transactions.”
Beccy and Austin Craig (@LifeOnBitcoin)have been filming their lives for the first three months of their marriage while they live on Bitcoin for a documentary. Provo Utah’s KSL5TV news reporter Jed Boal (@JedBoal) interviews them. Excerpts:
“The Craigs will test the principal of currency when they begin roadtripping across the county Saturday. ”I am nervous about food,’ Beccy said. ‘As soon as we leave Utah County, we are starting over, we don’t have food.’” – “During their travel, the Craigs expect to discover more businesses using Bitcoin, and they’ll continue to negotiate with those that don’t. When they return home, the Craigs plan to end their experiment of living only on bitcoins. ’I am super excited to go back to good old American currency, just for its convenience,’ Beccy said. But, the Craigs said they believe in Bitcoin and plan to make it part of their financial future.”
Security expert Brian Krebs (@BrianKrebs) was first with news that the FBI had taken over the Silk Road marketplace website and later that the site’s founder was arrested by U.S. authorities. Excerpts:
“Federal agents in San Francisco arrested the Silk Road’s alleged mastermind. Prosecutors say 29-year-old Ross William Ulbricht, a.k.a “Dread Pirate Roberts” (DPR), will be charged with a range of criminal violations, including conspiracy to commit drug trafficking, money laundering, computer hacking and murder for hire.” – “[The FBI’s big break came] on July 23, 2013, when investigators gained access to a Silk Road server and made a complete copy of the data on the machine.” – “Finally, DPR tripped himself up when he ordered some fake IDs from an international Silk Road vendor and had them sent to his residence. The fraudulent IDs were intercepted at the border by customs agents working with the U.S. Department of Homeland Security, which paid a visit to the address to which the documents were to be delivered.” – “Ulbrich graduated from the University of Texas with a bachelors degree in Physics in 2006, and that from 2006 to 2010, he attended graduate school at the University of Pennsylvania School of Materials Science and Engineering.” – “The government also announced today that pursuant to this action, it has also seized approximately 26,000 Bitcoins worth roughly $3.6 million, in what it’s calling the largest ever seizure of Bitcoins.”
Ankit Ajmera (@TvventyOne)’s article, published in the Mumbai Mirror, describes Bitcoin’s presence in India. Excerpts:
The Reserve Bank of India, for instance, has not yet formulated regulations to govern trading or profits generated from Bitcoins.” – ”The only time Bitcoins will come under the purview of law is if a case of fraud is reported, following which cops can then initiate action against the fraudulent party.” – ”There have been an estimated 29,400 downloads of Bitcoin wallets from Indian IP addresses. There’s the possibility that one person has downloaded more than one wallet.”
Brandon Glier’s post on Bitcoin became a Medium.com Editors Pick. Excerpts:
“To really understand the power of Bitcoin, you need to think about it as 3 things: (1) a protocol, (2) a commodity, and (3) an ecosystem.” – “Bitcoin has taken a very hard problem — how do you facilitate and record transactions online — and solved it for anyone to leverage for free. This capability may have profound implications that are not yet well-understood […]” – “It’s important to keep in mind that it takes time for the true market use case of a commodity to be developed. […] Like oil, Bitcoin can be refined and put to use in novel and yet-to-be imagined ways.” – “According to the GSMA 1.7 billion people have a mobile phone and no alternative to the cash economy. As digital cash, Bitcoin appeals directly to consumers as an accessible payment alternative without the risk and fees associated with existing credit and debit networks.” – “For the first time in Internet history, settling transactions between multiple parties can be dictated and applied directly through open-source software and not through (largely) for-profit 3rd party institutions.”
Writer Carrie Kirby (@CarrieKirby), in an article on Coindesk, describes some experiences by those who earn their incomes in Bitcoins. Excerpts:
“It’s interesting to learn how little inconvenience and uncertainty is being reported by the select few who collect their pay in bitcoins.” – “San Francisco bitcoin wallet company CoinBase pays all six of its employees entirely in bitcoins, and employee Olaf Carlson-Wee says: ‘I try to stay within the bitcoin economy as much as possible.’” – “’If I received my bitcoin on September 1 and it’s worth $10, but then I sell it at $20, the initial $10 is (subject to) payroll tax, but then the additional $10 would be considered a capital gain, from the advice that I received,’ Holland said.” – “The companies issue W2 forms and report the salaries paid to the government as they normally would.” – “Carlson-Wee, who keeps most of his savings in bitcoins aside from a small USD reserve, admits that a personal financial emergency could put him in the position of having to sell off a lot of his bitcoins at a low price.”
Jeffrey Tucker (@JeffreyATucker) writes of meeting Bernard von NotHaus why Mr. NotHaus is relevant to digital currency. Excerpts:
“Economist F.A. Hayek wrote that it was entirely possible that a high-quality private money could compete with a government money.” – “But who would step out and make the attempt? What entrepreneur would dare come forward and offer up an alternative as a product in the consumer market? Bernard von NotHaus was the man” – “The notion that government was trying to protect a marvelous system against domestic terrorism is mind-boggling, since the truth is rather obvious: The government was trying to protect a terrible system from being overthrown by competition.” – “Bitcoin is a brilliant combination of the Liberty Dollar’s soundness and Napster’s distribution methods, with a few extra features thrown in to protect it against shutdowns.” – “The revolution will not occur with guns and battles, but through enterprise, entrepreneurship, and a billion tiny acts of peaceful consumer choice.”
Ruben Alexander (@BitcoinBash) created a transcript of the interviews published in a LetsTalkBitcoin podcast (@LetsTalkBitcoin) for those voting for candidates for the Individual Seat of Bitcoin Foundation board election.
A new version of the Bitcoin-Qt and Bitcoind clients, v0.8.4, includes a fix for a bug that can be exploited as part of a denial-of-service attack against the Bitcoin network. Without this fix, Bitcoin-Qt/bitcoind nodes that receive a specific message that can cause the client to crash.