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Bitcoin

Are Altcoins Undermining Bitcoin's Credibility? 267

Posted by samzenpus
from the least-of-your-worries dept.
An anonymous reader writes The editor of a Bitcoin advocacy site believes the proliferation of altcoins (cryptocurrencies other than Bitcoin) is harming Bitcoin's long-term potential as an alternative to traditional currencies. Posting at BadBitcoin.org, a site that seeks to expose online scams that target Bitcoin users, the pseudonymous ViK compares altcoins, including the Internet meme inspired Dogecoin, to a pump-and-dump scheme where developers create their own version of the Bitcoin wallet and blockchain and then "pre-mine" or generate a significant number of cryptocurrency units before the altcoin's official release. Later, when their value has risen, the pre-mined altcoins are exchanged for Bitcoin or in some cases converted directly to cash. While critics of cryptocurrencies in general might find ViK's comments about the altcoin "tulip" mania ironic, the self-confessed Bitcoin fan is nevertheless calling for an altcoin boycott: "The easiest way to stop them is to not participate. We all know that they only have one purpose, and that is to make Bitcoin for the so called developers."
Bitcoin

Network Hijacker Steals $83,000 In Bitcoin 101

Posted by Unknown Lamer
from the rerouting-the-internet-for-fun-and-profit dept.
An anonymous reader writes with news that bogus BGP announcements can be used to hijack work done by cryptocurrency mining pools. Quoting El Reg: Researchers at Dell's SecureWorks Counter Threat Unit (CTU) have identified an exploit that can be used to steal cryptocurrency from mining pools — and they claim that at least one unknown miscreant has already used the technique to pilfer tens of thousands of dollars in digital cash. The heist was achieved by using bogus Border Gateway Protocol (BGP) broadcasts to hijack networks belonging to multiple large hosting companies, including Amazon, Digital Ocean, and OVH, among others. After sending the fake BGP updates miners unknowingly contributed work to the attackers' pools.
The Almighty Buck

Ecuador To Forge Ahead With State-Backed Digital Currency 85

Posted by samzenpus
from the lets-make-money dept.
First time accepted submitter jaeztheangel writes Ecuador's government has approved plans to start a new Digital Currency backed by the state. With defaults in recent history, and dwindling oil reserves it will be interesting to see how this decision turns out. From the article: "Congress last month approved legislation to start a digital currency for use alongside the U.S. dollar, the official tender in Ecuador. Once signed into law, the country will begin using the as-yet-unnamed currency as soon as October. A monetary authority will be established to regulate the money, which will be backed by 'liquid assets.'”
Bitcoin

Inside BitFury's 20 Megawatt Bitcoin Mine 195

Posted by Unknown Lamer
from the fools-and-their-megawatts dept.
1sockchuck (826398) writes Bitcoin hardware vendor BitFury has opened a 20-megawatt data center to expand its cloud mining operations. The hashing center in the Republic of Georgia is filled with long rows of racks packed with specialized Bitcoin mining rigs powered by ASICs. It's the latest example of the Bitcoin industry's development of high-density, low-budget mining facilities optimized for rapid changes in hardware and economics. It also illustrates how ASIC makers are now expanding their focus from retail sales to their in-house operations as Bitcoin mining becomes industrialized.
Bitcoin

US States Edge Toward Cryptocoin Regulation 172

Posted by timothy
from the hey-these-still-smell-like-dollars dept.
SonicSpike points out an article from the Pew Charitable Trusts' Research & Analysis department on the legislation and regulation schemes emerging in at least a few states in reaction to the increasing use of digital currencies like Bitcoin. A working group called the Conference of State Bank Supervisors’ Emerging Payments Task Force has been surveying the current landscape of state rules and approaches to digital currencies, a topic on which state laws are typically silent. In April, the task force presented a model consumer guidance to help states provide consumers with information about digital currencies. A number of states, including California, Massachusetts and Texas, have issued warnings to consumers that virtual currencies are not subject to “traditional regulation or monetary policy,” including insurance, bonding and other security measures, and that values can fluctuate dramatically. ... The article focuses on the high-population, big-economy states of New York, California and Texas, with a touch of Kansas -- but other states are sure to follow. Whether you live in the U.S. or not, are there government regulations that you think would actually make sense for digital currencies?
IT

Ask Slashdot: What Would You Do With Half a Rack of Server Space? 208

Posted by timothy
from the give-it-a-piece-of-my-mind dept.
New submitter Christian Gainsbrugh (3766717) writes I work at a company that is currently transitioning all our servers into the cloud. In the interim we have half a rack of server space in a great datacenter that will soon be sitting completely idle for the next few months until our lease runs out. Right now the space is occupied by around 8 HP g series servers, a watchguard xtm firewall, Cisco switch and some various other equipment. All in all there are probably around 20 or so physical XEON processors, and probably close to 10 tb of storage among all the machines. We have a dedicated 10 mbs connection that is burstable to 100mbs.

I'm curious what Slashdot readers would do if they were in a similar situation. Is there anything productive that could be done with these resources? Obviously something revenue generating is great, but even if there is something novel that could be done with these servers we would be interested in putting them to good use.
The Almighty Buck

New Digital Currency Bases Value On Reputation 100

Posted by Soulskill
from the for-everyone-who-wanted-to-rep-grind-in-real-life dept.
An anonymous reader writes: If digital currencies are fundamentally different than physical ones, why do they work in the same way? That's a question being asked by Couchbase co-founder J. Chris Anderson, who's building a currency and transaction system where reputation is the fundamental unit of value. "Unlike with bitcoin—which keeps its currency scarce by rewarding it only to those who participate in what amounts to a race to solve complex cryptographic puzzles—anyone will be able to create a new Document Coin anytime they want. The value of each coin will be completely subjective, depending on who creates the coin and why. 'For example, the coin my disco singer friend created and gave me at my barbeque might be what gets me past the rope at the club,' Anderson says. A coin minted by tech pundit Tim O'Reilly might be highly prized in Silicon Valley circles, but of little interest to musicians. 'It's a bit like a combination of a social network with baseball trading.'" Anderson isn't aiming to supplant Bitcoin, or even challenge the money-exchange model that drives society. But he's hoping it will change the way people think about currency, and open up new possibilities for how we interact with each other.
Bitcoin

Dell Starts Accepting Bitcoin 152

Posted by Soulskill
from the strength-in-numbers dept.
An anonymous reader writes: Mainstream retail companies have been slow to adopt Bitcoin, perhaps skeptical of its long-term value or unwilling to expend the effort required to put a payment system into place. Today, Bitcoin adoption got a momentum boost with Dell's announcement that it will accept Bitcoin as a payment method. Dell is by far the biggest company to start accepting Bitcoin. It's interesting to note that Dell, like many of the larger companies interacting with Bitcoin right now, is doing so through a third-party payment processor. On one hand, it's good — we don't necessarily want each company building their own implementation and possibly screwing it up. On the other hand, it scales back slightly the decentralized and fee-less nature of Bitcoin, which are important features to many of its supporters.
Bitcoin

New York State Proposes Sweeping Bitcoin Regulations 121

Posted by samzenpus
from the we've-got-some-rules-around-here dept.
An anonymous reader writes On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency companies operating in New York. The "BitLicense" plan, which includes rules on consumer protection, the prevention of money laundering and cybersecurity, is the first proposal by a state to create guidelines specifically for virtual currency. "We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity—without stifling beneficial innovation," he said in a statement.
Bitcoin

Finnish National TV Broadcaster Starts Sending Bitcoin Blockchain 73

Posted by timothy
from the in-the-air dept.
New submitter Joel Lehtonen (3743763) writes "The Finnish national digital TV broadcaster Digita is co-operating with startup company Koodilehto to start transmission of Bitcoin blockchain and transactions in Terrestrial Digital TV (DVB-T) signal that covers almost the entire Finnish population of 5 million people. The pilot broadcasting starts September 1st and lasts two months. The broadcast can be received by a computer with any DVB-T adapter (like this $20 dongle). A commercial production phase is planned to begin later this year."
The Courts

Judge Shoots Down "Bitcoin Isn't Money" Argument In Silk Road Trial 135

Posted by samzenpus
from the I-fought-the-law dept.
An anonymous reader writes in with the latest in the case against the alleged creator of the Silk Road, Ross Ulbricht. The government and legal community may still be arguing over whether bitcoin can be defined as "money." But the judge presiding over the landmark Silk Road drug case has declared that it's at least close enough to get you locked up for money laundering. In a ruling released Wednesday, Judge Katherine Forrest denied a motion by Ross Ulbricht, the 30-year-old alleged creator of the Silk Road billion-dollar online drug bazaar, to dismiss all criminal charges against him. Those charges include narcotics trafficking conspiracy, money laundering, and hacking conspiracy charges, as well as a "continuing criminal enterprise" charge that's better known as the "kingpin" statute used to prosecute criminal gang and cartel leaders.
Bitcoin

Investor Tim Draper Announces He Won Silk Road Bitcoin Auction 115

Posted by Unknown Lamer
from the plans-to-build-moon-fortress dept.
After some speculation yesterday about the winner of the auction for the first block of bitcoins seized from the Silk Road, the winner went ahead and made his identity public. Tim Draper has won the U.S. Marshals bitcoin auction and is partnering with Vaurum to provide bitcoin liquidity in emerging markets. ... Tim offered this in a statement: “Bitcoin frees people from trying to operate in a modern market economy with weak currencies. With the help of Vaurum and this newly purchased bitcoin, we expect to be able to create new services that can provide liquidity and confidence to markets that have been hamstrung by weak currencies. Of course, no one is totally secure in holding their own country’s currency. We want to enable people to hold and trade bitcoin to secure themselves against weakening currencies.”
Bitcoin

Winners of First Seized Silk Road Bitcoin Auction Remain Anonymous 88

Posted by Unknown Lamer
from the wait-until-they're-blacklisted dept.
ASDFnz (472824) writes with news that the first block of bitcoins seized from the Silk Road have been auctioned off, and for a pretty high price. The winners are unknown, and Bitcoin has bumped from trading at ~$600 to $650 (USD). From the article: ...In the absence of information speculation both on the markets and on the Internet is building. First Barry Silbert, Founder of SecondMarket and BitcoinTrust has tweeted that they were outbid on all blocks. Since then Alex Walters (a former core Bitcoin developer and the then chief technology officer of Bitinstant) has posted on reddit saying 'I Lost' in his $400 to $500 per coin. That post was closely followed by another reddit user saying that his bid of $451.13 per coin was also unsuccessful. ... Meanwhile the actual price of bitcoins of the various exchanges has risen close to 15% from just under $600 a coin to close to $650. In the end, we may never know who bought the confiscated coins or how much they bought them for but it does seem that it will be a pivotal point in Bitcoin's evolution.
Bitcoin

California Legalizes Bitcoin 162

Posted by timothy
from the finally-time-to-cash-in-your-scrip dept.
jfruh (300774) writes "California governor Jerry Brown has signed a law repealing Section 107 of California's Corporations Code, which prohibited companies or individuals from issuing money other than U.S. dollars. Before the law was repealed, not only bitcoin but everything from Amazon Coin to Starbucks Stars were techinically illegal; the law was generally not enforced."
Bitcoin

Venture-Backed Bitcoin Miner Startup Can't Deliver On Time, Gets Sued 120

Posted by timothy
from the but-you-promised-me-free-money dept.
mpicpp (3454017) points out this story illustrating the problem of betting on the differential between the price of deliverable bitcoin-mining hardware and the price of bitcoin itself: Yet another Bitcoin miner manufacturer, CoinTerra, now faces legal action for not fulfilling an order when it originally promised to. CoinTerra is the third Bitcoin-related startup to face litigation for breach of contract and/or fraud in recent months. The CoinTerra lawsuit was filed in late April 2014 by an Oakland, California-based man seeking to be the lead plaintiff in a proposed class-action lawsuit. Lautaro Cline, the suit alleges, purchased a TerraMiner IV in October 2013 for delivery by January 2014. The company promised, he claims, that this miner would operate at two terahashes per second and would consume 1,200 watts of power. It did neither. However, Cline's suit also claims that CoinTerra did not deliver the miner until February 2014, and it "operated well below the speed advertised and consumed significantly more power than CoinTerra represented, causing Plaintiff to suffer significant lost profits and opportunities."
Bitcoin

US Marshals Accidentally Reveal Potential Bidders For Gov't-Seized Bitcoin 101

Posted by timothy
from the now-how-much-would-you-pay? dept.
jfruh (300774) writes "When the U.S. government shut down the Silk Road marketplace, they seized its assets, including roughly $18 million in bitcoin, and despite the government's ambivalence about the cryptocurrency, they plan to auction the bitcoin off to the highest bidder, as they do with most criminal assets. Ironically, considering many bitcoin users' intense desire for privacy, the U.S. Marshall service accidentally revealed the complete list of potential bidders by sending a message to everyone on the list and putting their addresses in the CC field instead of the BCC field."
Bitcoin

Bitcoin Security Endangered By Powerful Mining Pool 281

Posted by timothy
from the cornering-the-market dept.
An anonymous reader writes Ars Technica reports that for the first time in Bitcoin's five-year history, a single entity has repeatedly provided more than half of the total computational power required to mine new digital coins, in some cases for sustained periods of time. It's an event that, if it persists, signals the end of crypto currency's decentralized structure."
Bitcoin

Expedia To Accept Bitcoin 87

Posted by timothy
from the only-stability-is-volatility dept.
An anonymous reader writes With the debacle of Mt. GoX, Bitcoin's future was looking a little murky. But in a significant mainline acceptance, Expedia has said they will begin accepting Bitcoins as a form of payment. At first, they will accept it for hotel bookings only, will accept it only in USA, and also will not be holding Bitcoins for any length of time — converting it to dollars as soon as they can. But, quoting Emily Spaven, managing editor of Bitcoin news site CoinDesk, as told to the BBC, the move was "brilliant news" and it "brings digital currency further into the consciousness of the mainstream." So you can't quite fly to Galt's Gulch to your newly Bitcoiin-purchased real estate without switching currencies.
Bitcoin

US To Auction 29,656 Bitcoins Seized From Silk Road 232

Posted by Soulskill
from the enjoy-your-windfall dept.
ClownP writes with news that the U.S. Marshals Service is selling off 29,656.51306529 Bitcoins that were seized when the Silk Road website was shut down. At current exchange rates, they're worth around $17-18 million. The coins will be auctioned off in nine blocks of 3,000 coins, plus one block with the remainder. The USMS said that the first deadline for bidders will be 9am Eastern Time on June 16, 2014. All bidders must complete the government's Bidder Registration Form, which requires that you provide a copy of a government-issued ID as well as a $200,000 deposit sent by wire transfer from an American bank. The government added that the highest bidder will win, and he or she cannot finance its payment in installments — the winner must pay the full amount in cash. The USMS added one final stipulation. "The USMS will not sell to any person who is acting on behalf of or in concert with the Silk Road and/or Ross William Ulbricht, and bidders will be required to so certify," the USMS stated.
Bitcoin

NSF Researcher Suspended For Mining Bitcoin 220

Posted by Unknown Lamer
from the probably-shouldn't-do-that dept.
PvtVoid (1252388) writes "In the semiannual report to Congress by the NSF Office of Inspector General, the organization said it received reports of a researcher who was using NSF-funded supercomputers at two universities to mine Bitcoin. The computationally intensive mining took up about $150,000 worth of NSF-supported computer use at the two universities to generate bitcoins worth about $8,000 to $10,000, according to the report. It did not name the researcher or the universities."

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