The Dogecoin Dilemma

Dogecoin, Uncategorized
-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 When Satoshi Nakamoto mined the genesis block on January 3, 2009, Bitcoin became the first cryptocurrency to use a block chain secured by the proof-of-work (POW) process known as mining. The algorithm used to mine Bitcoin blocks is two rounds of SHA-256 hashing. Soon after, the Bitcoin community gained an appetite for a distributed naming system. The project was initially named BitDNS. It was finally implemented when Bitcointalk user vinced mined the genesis block of Namecoin in April of 2011. Namecoin also used two rounds of SHA-256 hashing as its mining algorithm. Using the same mining algorithm became a problem as Bitcoin and Namecoin then competed to attract miners to secure each block chain. As time went on, it became clear that the dominant…
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The necessity of a centralized voice for Bitcoin

Regulation, Uncategorized
The Bitcoin community is in need of centralization. By centralization I do not mean a core authority, but rather a core voice. This is not an optional element in the future success of Bitcoin. While the origins of motivating adoption to Bitcoin have been grassroots, a continual shift in the way Bitcoins are earned by new users is a key reason why a central voice to the currency is essential for merchants and new users to trust adopting the currency. The transition to exchanges & authorities The nature of mining has changed dramatically for cryptocurrencies in the few years Bitcoin has existed. As the computing difficulty grew exponentially with the arrival of ASICs, the ability to earn Bitcoins shifted from the hands of independent users and into those with more powerful…
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An Introduction to PGP

Cryptography (General), Uncategorized
-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 The Internet is not an inherently secure medium for sensitive communication. When Alice sends a message to Bob through the Internet, that message passes through the hands of various Internet service providers before arriving at its final destination. Depending on the messaging platform used, it may also pass through the hands of Facebook, Google, or Microsoft, or other operators. We can always assume that someone is watching. Each individual with access to the message on its path between Alice and Bob has the opportunity to read or even modify it. This could be very problematic if the message contained private information such as passwords that could be read or financial information such as a Bitcoin address that could be modified. Cryptography solves this problem.…
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Multisignature Possibilities

Bitcoin, Uncategorized
-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 For most of Bitcoin’s short history, the primary mechanism for transferring bitcoins has been the simplest one: immediately transferring value from A to B with a single signature. There are notable drawbacks to using this irreversible transfer system in certain environments. Without the ability to dispute payments for undelivered goods and services, Bitcoin consumers have had nearly no protection from fraud and scams. All trust was placed on the recipient. With the development of multisignature transactions, this is beginning to change. Now, reversible payments with the consumer protection that PayPal, VISA, and similar companies provide can now be built on top of the irreversible system of Bitcoin. The advantage multisignature has over traditional consumer protection is the transparency and modularity provided by the block…
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Bitcoin and the “R” Word

Bitcoin, Regulation, Uncategorized
The “R” word—Regulation—is a polarizing one in the virtual currency world. On one hand, any sense of acknowledgement or potential trust by a government or financial agency is a sign of impending widespread adoption. On the other, regulation stifles innovation and, for even a radical few, is against the very values of virtual currencies. In reality, the news of potential regulation by the New York Department of Financial Services is a necessary reality for Bitcoin to become a currency for the masses. For some time now, Benjamin Lawsky of New York’s Department of Financial Services has been taking an exceptional amount of time to learn about Bitcoin. From AMAs on Reddit to in-depth conversations via Twitter, Lawsky has spent much of the last six months devising a way to bring…
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Australian Tax Office Makes Ruling on the treatment of Bitcoin and other Crypto Currencies

Australia, Bitcoin, Tax, Uncategorized
The Australian Tax Office has now completed its review regarding the treatment of Bitcoin and other cyrpto currencies. Information can be found here. As this page changes somewhat frequently we have preserved the relevant content below (copied 22-July-2014) for retention's sake: Status Consultation completed Purpose To seek input from a business community perspective about the impacts of differing taxation treatments of Bitcoin and other crypto currencies on the Australian business community. Description Industry representatives from professional and Bitcoin associations, and leading businesses involved in the emerging Bitcoin community, met on 29 April 2014. Attendees provided valuable information about their business models and how different tax treatments would impact their clients, members and businesses. Who we consulted Industry representatives from profession and Bitcoin associations. Outcomes The group provided valuable feedback on ATO…
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Dell Accepts Bitcoin. Now What?

Bitcoin, Uncategorized, Vendors
Dell is now one among a growing number of major retailers that are accepting Bitcoin for consumer sales. Powered by Coinbase, the computer company’s main e-commerce site, Dell.com, joins Overstock, Expedia, TigerDirect and others as a way to spend your cryptocurrency on electronics and more. Unlike Overstock and Expedia though, Dell is a behemoth in terms of sales and size. As the tenth largest retailer on the internet, Dell.com racks in about $3.6 billion last year according to data compiled by Statista. But what does this mean for Bitcoin? Is Dell going to cause a domino effect for other top 10 retailers, or is it just an outlier trying to cash in on the Bitcoin hype? Why Dell Matters (and Doesn’t) It’s always good news for Bitcoin when another retailer…
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