Goggle lagging on bitcoin uptake, expect Bitcoin+ to be a flop when it comes out

Posted by Rob on 23 January 2014 | Comments

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Emails proporting to be between a reddit user and google have turned out to be fake, as a statement by the company has outlined that Bitcoin is currently not in their plans. Clearly because they are still reeling from the shock that they have not innovated a new payment system themselves.

In fact what have google done recently? Apart from make a shit-ton of money? I think they peaked when they mapped the entire planet. Anyway read the article for yourself.

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Bidextreme.pl exchange hacked

Posted by Rob on 21 November 2013 | Comments

According to Coindesk, the polish Bitcoin exchange Bidextreme has been hacked and all crypto currency has been taken.

This is another example of lazy programming and security around Bitcoin services. To store all your businesses Bitcoins live on the webserver is just stupid. This isnt the first time we've seen it happen, and unfortunately it wont be the last.

Basic Bitcoin security procedures, such as storing the majority of the bitcoins offline, and in multiple wallets, could have prevented some / all of the coins from being taken. Websites are always being hacked, so this is nothing new. What is new is how valuable the reward for hacking a website is now.

A potential solution to this problem would be to develope an auditing system of  "Bitcoin security levels". Businesses could then pay to be audited by the Bitcoin security auditers, so achieve a level of security. This could then enhance the trust for businesses that make the effort to secure their websites properly.

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Bitcoin by the people, for the people

Posted by Rob on 16 November 2013 | Comments

The foundation of any currency is trust. We accept payment in the currency that we use because we trust that other people will in turn accept that currency for goods and services.

Being someone who has traveled a fair amount and regularly travels internationally, I have used a few different currencies. I see money for what it is, a token I can used to fluidly exchange work I do for goods / services from someone else. I have no love of money itself other than the fact that I find it very useful and use it every day, much like everyone else. I dont give a crap what money I'm using either, If it doesnt have the Queens head on the notes, it means nothing to me. As long as me and other people can trust it enough to allow it to be a form of currency.

The trust for regular currency used to be in that it could be exchanged for gold. This is no longer the case. The trust in non-digital currency is that we trust that the issuing authority (normally the government). We trust that they are not going to go haywire and print heaps of extra notes (devalueing all the notes currently in circulation). Or that they are suddenly not going to go bust, and the notes would be then worthless.

The trust in Bitcoin and other distributed currencies is trust in the technology. We trust that the technology and the idea begind the currency is sound. The currency has value because of this trust and because of the extra benefits of a digital currency. If the trust is undermined by anything then the percieved value of the currency will drop.

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Banks beginning to realise Bitcoin is a threat to their bonuses

Posted by on 15 November 2013 | Comments

An article in Forbes details the problems that Bitcoin Entropeneurs and businesses are having openening and keeping bank accounts. This is businesses with hundreds of thousands of dollars of cash, the banks dont want to know. The banks cite "risk" as the reason that they wont keep these accounts.

Funny, the banks have never taken on risk before have they. They wouldnt deal in risky default credit swaps or anything like that.... no.

They've realised, quite late, that Bitcoin is bad for their bonuses, and their control of the money supply. Bitcoin is going to upend the worldwide financial situation. I like the idea of trusting a non-restrictive group of computer programmers with the financial system over the current group of world banks.

Check the article out for yourself


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Bitcoin and Esperanto

Posted by on 20 October 2013 | Comments

I recently saw an artical talking about Bitcoin and Esperanto in the same way:


Esperanto is a language that was dreamed up by some guy, the idea being that it would not have any rediculousness of any other language and would encorporate the best bits of all languages. Everyone would speak Esperanto, and then we would all be able to communicate with each other. Esperanto failed, in my opinion because learning another language is too much effort for most people, and lack of adoption by any countries due to the massive amount of effort required to convert the country to another language.

Bitcoins similarity with Esperanto really only goes as far as the fact we have to use a currency other than the one we are used to, in much the same way that you would use Esperanto than the one you normally use. The comparison ends there though, due to the fact that Bitcoin has many more benefits over FIAT currency than Esperanto had over other languages such like Bitcoin transactions are very cheap, psudo-anonymous and irreversable. 

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Silkroad closure and Bitcoin adoption

Posted by on 19 October 2013 | Comments

Earlier this month the Bitcoin value took a quick dip due to the closure of Silkroad. Silkroad was an Ebay for drugs, guns and other illegal items that used Bitcoin as its currency of choice. The site had a renvenue stream of over a billion USD. The success of the site mainly down to the large advantages of using Bitcoin as a payment method. Bitcoin by design allows for psuedo-annonymous payments, just like paying in cash. The benefit of Bitcoin being that the payment can be made anonymously online, and the drugs can be posted out to the buyer, with out buyer and seller ever having to meet. The quality of the drugs / items and the trust being earned online using the usual ratings system of most online auction sites.

The price of Bitcoin took a dip, and then rebounded within a few days of its pre-dip value. I must admit this was a suprise to me, as I falsely believed that a lot of the value of Bitcoins was due to the fact you could buy dodgy stuff online with it. However the recovery of the value against the US dollar so quickly goes to show that Bitcoin is much more useful than this. As I have been reading on various sites there are already a few other sites like Silkroad that can be used to continue with this type of activity.

Another reason that the value bounced back so quickly, and has risen even higher is due to the fact that the Chinese version of Google called Baidu has started accepting Bitcoin as a payment method. This initially didnt mean much to me however when I found out that it is the 5th most visited website on the internet, I realised that this was huge news for Bitcoin.

In other news the Bitcoin exchange Bitstamp for the first time overtook Mt. Gox in volume of trading for a day, this is more good news for Bitcoin, as it shows that the methods for exchanging money for bitcoins are becoming more widespread and less reliant on Mt. Gox

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Current state of the network

Posted by on 22 August 2013 | Comments

So as the new ASIC and FPGA miners are distributing throughout the world the network hash rate has shot up

speed small lin

 Bitcoin had been reletively stable recently at around $100USD each, and I was enjoying ease at which this made the calculations to convert to USD.

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Similar bubble pattern emerging

Posted by on 8 July 2013 | Comments

So this has possibly been covered by heaps of people already. I took a look at the graph recently, and I thought, where have I seen that before?

Screenshot from 2013 07 03 2

This is the filthy badger right here. Look at the spike, then the dip, then the rebound, then the slowly tailing off to lower-pricedom.

Then checkout this badboy from the first bubble.

Screenshot from 2013 07 03 123622

Yeah so I reckkon we're seeing some kind glitch in the matrix or something. Here is my prediction - we're gonna see a drop to like $50~$60 then it will hang around that price for ~4 months before the price increases to inifinity and beyond. BOOM

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Terrible NZ Bitcoin News Coverage

Posted by Rob on 10 May 2013 | Comments

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I love New Zealand. However the TV news, and infact TV in general in New Zealand is like the visual equivalent of sandpapering your eyeballs. This is a good example of why:

 First of all, before we even get to the Bitcoin discussion, what kind of reporting is this... ABOUT ANYTHING? Whatever happened to having a balanced set of opinions? Lets get 3 people into the discussion, and not include anyone who can say anything in opposition. Isn't the point of having 3 people in the discussion so that at least one might provide an alternative view? What a great and interesting discussion we can have, when everyone is against the topic being discussed.

So well done OneNews, great job there, excellent stuff, another reason why when the "digital switchover" happens I won't need to buy a digital reciever. I don't want or need to collect any of the rubbish you are broadcasting.

Now onto the Dinosaurs in the interview, first of all the idiot? who can't pronounce Bitcoin properly. He's not an idiot, I've seen through his plan:

I'm going to mispronounce Bitcoin as BIT-CON, and then say "its the morning! I can't talk properly in the morning!"

Well done there, very clever, keep saying "Bit-con" on National TV and soon everyone will be repeating and believeing it.

Now we have the others on the panel who believe that Bitcoiners are big trouble to society! Its a SINISTER thing! We're mental anarchists hell bent on causing trouble. So what do we do with trouble makers? We lock them up and throw away the key! Lets make laws against bitcoin! That will stop them! They can't destroy the society we love from the inside when they are in jail!

So this woman compares using Bitcoin as a currenct to using a dishwasher as currency........... Her dishwasher has value! but that doesn't make it a currency!

So she's arguing against Bitcoin being a currency. However people are using it as such. Who is she? Currency police? This is so stupid, I don't know where to start, so I wont.

Bad people have been doing bad things before Bitcoin came along. Do you think drug dealers were using EFTPOS and credit cards to buy / sell drugs before Bitcoin came along? No, they are using regular cash, and still are. Bitcoin is not about evading tax either, this has always been a feature of using regular cash for payments anyway.

MONEY has always been the best way of voting. Don't like a company, don't buy from them. However this is the FIRST TIME that people have been able to actually vote by switching the CURRENCY they are using. The  Dinosaurs  are the dictionary definition of "afraid of change", they are maliciously ignorant of the problems with the current financial system and seem to want to be chugging along with the old way of doing things. Hanging onto the status quo for the sake of it is not going to get us anywhere.

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Tradehill back on the scene

Posted by Rob on 4 May 2013 | Comments

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I watched a BBC article on Bitcoin a few days ago, where the CEO of TradeHill was showing the BBC around the world of Bitcoin. This was news to me, as the last I heard of TradeHill was that it had to shut down due to legal pressure, and bank account closures.

TradeHill at its peak was the 2nd biggest exchange after Mt.Gox. Its good to see this player back on the Internet, and should hopfully provide some good competition for Mt. Gox.

There is heaps of room for another large decent company running a Bitcoin exchange. I see heaps of room for improvement at the moment. The lag in trading when the market gets busy on Mt. Gox has riled a few traders. Also the restrictions on FIAT withdrawals from even a verified account on Mt. Gox could be greatly improved on.

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