19 February 2014

Bitcoin Weekly News Summary For The Week From The 10 To The 16 Of February 2014

Bitcoin Weekly News Summary

This BWNS edition counted with the sponsorship of www.Azte.co. Azteco is the easiest way to get Bitcoin  as you only need a 16-digits voucher code you can then redeem at the Azteco website in just 1 minute. Simple as it gets. If you are a Bitcoin Accepting Retail Business, we want you to take a look at being an Azteco Voucher Vendor and start earning some extra Bitcoin Income.

The Feel Of The Week

Last week (3-9) was a bad one for Bitcoin. But this one (10-16) was a bad and stressful one. It felt like pure stress. All thanks to the Fear,Uncertainty and Doubt being spread around starting with Mt.Gox itself and then to the rest of the inane and hyperbolic news coverage that followed. Which in turn caused and anger and frustration in the more seasoned heads of the Bitcoin Scene. Fortunately what felt clear by the end was that the worst has passed and that there was benefits to what will be learned from it. Of course not everything was bad and there were actually some very good news. Even if they were somewhat overshadowed.

The News Highlights:

> USD Bitcoin Average Exchange Price started this week at $690 and dropped to $620 with Mt.Gox announcement blaming a bug in the Bitcoin Protocol. It rebounded as people started buying from those panic selling to$704. Then it went down to the lowest point at $574 once Bitstamp and BTC-E suspended operations to check their own Bitcoin Implementations and avoid the Transaction Malleability problem. Then again came those buying out the Bitcoins from panic sellers making it to rebound to $671. Later on the rest of the week as nerves and effects continued on the Transaction Malleability issue the BAEP ended up floating between $640-$650.

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*NOTE* : This week BAEP price chart and quick recount does not contemplates in Mt.Gox no more as it is not applicable once it stopped being relevant to the price since it remained isolated and was no longer operation as an exchange in any away, given neither FIAT currency or Bitcoin could be withdrawn.

> Mt.Gox released a statement blaming Bitcoin for they having to stop Bitcoin Withdrawals. Saying that it was because of a bug called Transaction Malleability. The problem with this of course is that such bug don’t has an effect on the Bitcoin Network or its reliability but only was a threat to the not up to date Bitcoin Wallet and Bitcoin Exchange implementations. Meaning the fault lies on the entities holding bitcoin. Not Bitcoin itself.

This slanderous statement from Mt.Gox caused further panic selling on those trapped within Mt.Gox and outside of it because of the News Coverage that followed it.  As I had last week. Outside of Mt.Gox the effect of all this drama were anything  more that a nuisance. Even if the crashing of the Bitcoin Exchange Price on Mt.Gox caused the BAEP to no longer being inflated by previously 15% higher Mt.Gox prices. Which for months have been caused by the fact that Fiat Currency withdrawals from Mt.Gox were just not possible as they take months.

But as Mt.Gox was no longer operational during this week and nerves about the chance of Mt.gox having lost funds of those inside or that they were hiding something spread. So did the desperation of those with Bitcoins or Fiat Money trapped inside Mt.Gox. Which caused a dramatic crash on Mt.Gox price. With those with trapped funds willing to sell to others also trapped but with more confidence or financial fortitude for 50%-60% off the pre-freeze. This in turn and considering that Mt.Gox was effectively no longer an operational exchange led to BitcoinAverage, CoinDesk, Cryptocoincharts and eToro among others to drop Mt.Gox from their weighted Bitcoin price indexes.

Since this story followed during all the week. With it not starting and not ending this week. Things got weirder and tempers trembled on the brink of losing control. The reasons were many, but 3 were the more note worthy:

1.- Mt.Gox usual poor and insufficient way to communicate.

2.- Mt.Gox trying to blame Bitcoin itself and not accepting any guilt whatsoever.

3.- Speculation that it would not be farfetched Mt.Gox saw this bug in their Bitcoin Implementation as the perfect opportunity to manufacture a big crisis out of a small one that would cause their own Bitcoin Prices to collapse in order for they to buy low and sell high later. And at the same time retaining  a high volume of people in their exchange from who they could continue to extract fees from as long as possible.

> After Mt.Gox released their statement blaming Bitcoin itself, there were many reactions but  the ones from Gavin Andresen, Jeff Garzik and Andreas Antonopoulos are specially relevant:

> Inspired by last week (3-9) story of the Redditor that flew to Japan previous to t.Gox Friday Freeze and got some answers from Mt.Gox. Aaron Gutman decided to do the same and protest outside Mt.Gox offices while recording important events. One of the important events being his first encounter with Mark Karpeles which he got on Video.

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> Finally, because of Mark Karpeles behavior with this last bad note from Mt.Gox. Many have called for he to resign from The Bitcoin Foundation Board. Someone even made that a change.org petition. I do happen to agree with the sentiment that he should resign. Even if such gesture would be symbolic in the end. However, as that would mean Karpeles accepting fault. Many don’t see that happening as of right now. Among those wanting Karpeles to step down was Charlie Shrem who did stepped down after his release on bail after being arrested on alledged Money Laundering Charges.

> Vitalik Buterin from Bitcoin Magazine posted one of the best explanations on the Transaction Malleability Issue while adding Mt.Gox to the context of it.

SOURCE: http://bitcoinmagazine.com/10093/transaction-malleability-mtgoxs-latest-woes/

> Microsoft added support for Bitcoin Conversion to Bing Search. So now you can do a search for  1 BTC to USD or other dozens of currencies and you will get the current exchange price. This was done via a Coinbase API integration. This makes Bing the third to support Bitcoin conversion on search. The first was DuckDuckGo and the second was Yandex.

SOURCE: http://blog.coinbase.com/post/76234094435/microsoft-bing-and-coinbase-make-real-time-bitcoin

> Starting the week something weird happened at BTC-e that so far I have to see explained in a verifiable manner. Someone sold Bitcoin at $100 causing this graph of a split-second crash:

Capture

The possible reasons so far: 1.- Glitch in someone’s custom trading software or 2.- Someone selling stolen Bitcoins in a flash. I honestly think that it was more likely reason 1. Making this Software Glitch probably the most expensive one yet for a Bitcoin Trader.

> Bitcoin Won A Crunchie For Best Technology Achievement

SOURCE: Bitcoin Wins Best Technology Achievement But Satoshi Doesn’t Show TechCrunch

> Coingig.com put a Announcement Banner stating they would be shutting down. Nothing specific has been said on the why. 

SOURCE: www.Coingig.com

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> A Bill was introduced in California, USA that could make Bitcoin officially legal if ratified.

LINK: http://bitcoinexaminer.org/bill-cryptocurrencies-legal-california/

> Australian Authorities Stated They Will Set Tax Guidelines For Bitcoin This Year.

LINK: http://www.coindesk.com/australia-official-tax-guidelines-bitcoin-this-year/

> Thailand clarified that Bitcoin is not illegal. Allowing Thailand’s largest Bitcoin exchange to resume operations.

LINK: http://bitcoinexaminer.org/thailands-exchange-bitcoin-legal/

> An OS X focused Bitcoin Stealing Malware called was identified and reported.

LINK: http://bitcoinexaminer.org/trojan-horse-variants-mac-os-x-login-credentials-bitcoins/

> Fivver started accepting Bitcoin. Fivver is a popular marketplace for tasks or services you can get for $5 USD.

SOURCES: Fiverr

http://blog.coinbase.com/post/76315615202/coinbase-partners-with-fiverr-first-large-services

> Bitpay released Bitcore.io, An open source Javascript library to accelerate development of Bitcoin related services, apps and tools.

SOURCES: bitcore.io

http://blog.bitpay.com/2014/02/14/introducing-bitcore.html

> Coinbase announced BitHack, A Bitcoin Hackathon with $18,000 USD worth of Bitcoin in prices. Best of all? Anyone in the world can participate.

SOURCE: www.bithackathon.com

> Ukraine Central Bank demanded that Bitcoin Businesses operating in the country to register with the government as so.

LINK: http://bitcoinexaminer.org/ukraine-central-bank-registration-of-bitcoin-businesses/

> According to an online shopping related survey, 57% of Brits are aware about Bitcoin. There is other interesting data on the linked article too.

LINK: http://www.coindesk.com/most-brits-aware-bitcoin/

> Lithuania issued a warning on Bitcoin. The usual as seen in other countries.

LINK: http://www.coindesk.com/russia-lithuania-europe-bitcoin-regulation/

> Glyde started accepting Bitcoin. Glyde is a marketplace where you can sell your electronics, games and gadgets. Now you can sell them and get paid for them in Bitcoin if you want.

SOURCE: Glyde- Simply buy and sell your games, iPads, iPhones and more

> Revel Systems added Bitcoin Support for their iPad based POS via Coinbase.

LINKS: http://revelsystems.com/

http://www.qsrweb.com/article/227761/Revel-Systems-POS-platform-adds-Bitcoin-integration

> Overstock announced they will launch a 1% rewards program scheme in Club O Dollars.

LINK: http://www.coindesk.com/overstock-launch-new-rewards-program-bitcoin-buyers/

> BitTradeAustralia announced the 3 winners of their Bitcoin Essay Competition that had 12 Bitcoins in prizes. With the first place getting a whooping 7 Bitcoins.

SOURCE: https://www.btradeaustralia.com/about/essay-competition/

> Silk Road 2 lost 2.6 Million Dollars worth of Bitcoin in an alleged hack. With everyone believing that it is an inside job. So far Admins say they will pay it back by cutting affected vendors fees until repaid.

LINK: http://www.coindesk.com/silk-road-2-loses-bitcoins-hack/

> Porn.com Stated that 10% of their premium account sales are now in Bitcoin.

> Bank of Greece issued a Bitcoin warning. Same like from other past ones in other countries.

> A  MIT Technology Report seems to dispel the myth that Bitcoins only get hoarded as it found that are more like to be spent.

SOURCE: http://www.technologyreview.com/graphiti/524796/show-me-the-bitcoins/

> Another of this week new stories that caused some FUD were a series of Bad Dust Transactions that pretty much seems everyone received from the Bitcoin addresses starting with 1enjoy and 1sochi.  Included myself in one of my Coinbase Accounts. Some did a study on them and only found them be spam. But the theory that they could have been tracking beacons was something that even I considered. Until they of course didn’t confirmed. Until now no one knows exactly who or why they were done. But the only thing more than one agrees is that don’t seem to have anything to do with the DDOS attacks on Bitcoin Exchanges or the Transaction Malleability Issue attacks.

> After receiving a Bad Dust Transaction on one of my Coinbase accounts I thought it a good idea to ask Coinbase support on what they were going to do about it. They told me that the Coinbase Dev Team was already working on a fix to that. 24hrs later the bad dust transaction was gone from my account. I don’t know that was the case for everyone on Coinbase that had received a Bad Dust Transaction or not. But just so you know.

2014-02-13_2212

> Stripe CEO Tweeted on Bitcoin at the same time a rumor that Stripe is looking to enter the Bitcoin Payment Processor game is going around. Coincidence or COINcidence?

> Bitcoin Went Country Music with the Song called “Ode To Satoshi” by John Barrett.

The Send Off.

And those were the news highlights of that week when it comes to Bitcoin. Comeback every week for the very best way to catch a whole week worth of Bitcoin News in just one place in just minutes, annotated, commented and fully linked at for you.

This BWNS edition counted with the sponsorship of www.Azte.co. Azteco is the easiest way to get Bitcoin  as you only need a 16-digits voucher code you can then redeem at the Azteco website in just 1 minute. Simple as it gets. If you are a Bitcoin Accepting Retail Business, we want you to take a look at being an Azteco Voucher Vendor and start earning some extra Bitcoin Income.

Bitcoin Tip This Post:

1Axd1vFihDHiaVVK17MSngbWrTLg2UJyhm

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Any donation is very much appreciated.  You can also sponsor this post series. Inquire for info. Bitcoin accepted too of course.

 

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4 comments :

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Avatar X said...

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Android said...

Bitcoin is almost dead. Popularity has reduced very much. Let's see how much it really stands in the next few months.

Avatar X said...

@Android You were saying?

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