Skip navigation
Help

Bit

warning: Creating default object from empty value in /var/www/vhosts/sayforward.com/subdomains/recorder/httpdocs/modules/taxonomy/taxonomy.pages.inc on line 33.

For most, a life on Bitcoin is a short experiment. For some of Pensacola, Florida's homeless, though, the currency has become a lifeline, making up the gap that low-paying or intermittent jobs and public assistance can't fill. Wired profiles the men and women who have developed an alternative virtual economy, raising charity money through Bitcoin and making small amounts of money through Mechanical Turk-like jobs that pay in Bitcoin rather than requiring a bank account. Though Bitcoin still isn't widely accepted, services like Gyft can turn the currency into gift cards for food or other necessities, and mobile phones and computers are affordable even for some people who can't make a monthly rent payment. Jesse Angle, who earns money by completing simple online tasks for Bitcoin, says the system is less risky and embarrassing than panhandling. He and his friends, he says, are "kind of the homeless geeks."

0
Your rating: None

There are all kinds of reasons to think that Bitcoin is a joke, and that the value of the bitcoins themselves will ultimately go to zero. It's inherently unstable as a currency, prone to hyperdeflation, has an artificial scarcity, and is subject to hoarding.

0
Your rating: None
Original author: 
Cyrus Farivar

Aurich Lawson

This is the first in a two-part series exploring Butterfly Labs and its lineup of dedicated Bitcoin-mining hardware. In part one, we look at the company and the experiences customers have had with it. In part two, to be published on June 29, we share our experiences running a Bitcoin miner for a couple weeks. Spoiler alert: we made money.

The more I dig into Bitcoin, the stranger it gets. There’s gray-market online gambling and Russian-operated futures markets—to say nothing of the virtual currency’s wild ride over the last several months. It’s full of characters with names like “artforz” and “Tycho,” supposedly two of the largest Bitcoin holders out there. Of course, like most things Bitcoin, it’s nearly impossible to know for sure.

While reporting on a Bitcoin-based gambling story earlier this year, I interviewed Bryan Micon, who works with a Bitcoin-based poker site called Seals With Clubs. (To continue the lack of information, Micon won’t say who owns the site.) Micon has taken it upon himself to investigate what he believes are Bitcoin-related scams—such as the ill-fated Bitcoin Savings and Trust online bank—and he makes public pronouncements about them.

Read 43 remaining paragraphs | Comments

0
Your rating: None
Original author: 
Nate Anderson


Bitcoin mining takes a lot of computing power—so naturally someone created a piece of malware to mine on other people's computers.

Kaspersky Lab

Mark Gimein is something of a Bitcoin skeptic, but in addition to his concerns about Bitcoin not being a "real currency," he's now charging that it has created "a real-world environmental disaster."

Writing in Bloomberg News, Gimein notes that mining Bitcoins—performing the computationally expensive calculations needed to define new Bitcoins—uses power. A lot of power. (Read our 2011 Bitcoin primer for more details.) He writes:

About 982 megawatt hours a day, to be exact. That’s enough to power roughly 31,000 US homes, or about half a Large Hadron Collider. If the dreams of Bitcoin proponents are realized, and the currency is adopted for widespread commerce, the power demands of bitcoin mines would rise dramatically.

If that makes you think of the vast efforts devoted to the mining of precious metals in the centuries of gold- and silver-based economies, it should. One of the strangest aspects of the Bitcoin frenzy is that the Bitcoin economy replicates some of the most archaic features of the gold standard. Real-world mining of precious metals for currency was a resource-hungry and value-destroying process. Bitcoin mining is too.

Gimein draws on the stats provided by Bitcoin-focused site Blockchain.info. The numbers fluctuate a bit with each day of calculations being tracked. According to Blockchain's stats this weekend, the last 24 hours of worldwide mining activity burned through 928.24 megawatt hours of power while miners calculated 59,502.6 gigahashes per second. Total power bill: $139,236.07.

Read 5 remaining paragraphs | Comments

0
Your rating: None
Original author: 
Adrianne Jeffries

Img_0616-1200_large

Businessweek has a thoughtful and well-written defense of Bitcoin, the open source virtual currency that approximates cash on the internet. Writer and programmer Paul Ford points out that the Bitcoin experiment, so far, is working: it's actually being exchanged as money, and the underlying technology has proved "to be impeccable and completely functional." He makes a persuasive point that Bitcoin is "no more arbitrary than derivatives or credit default swaps." At the time of this writing, a single Bitcoin is being traded for $91.67 USD (although The Economist, at least, expects the bubble will pop soon).

Unfortunately, Ford also repeats the unsubstantiated claim that Bitcoin's meteoric price rise was sparked by fears over the Cyprus...

Continue reading…

0
Your rating: None

Bitcoins (Casascius)

Bitcoin, a virtual currency "mined" from computer transactions, could one day challenge the hegemony of nation-issued money and create a truly viable decentralized, anonymous currency. Along the way, though, supporters must deal with the challenges of building a new exchange system — and the inevitable winners and losers that creates.

Continue reading…

0
Your rating: None

another random user writes "Bitcoin-Central, a currency exchange that specialises in virtual cash, has won the right to operate as a bank. They got the go-ahead thanks to a deal with French financial firms Aqoba and Credit Mutuel. The exchange is one of many that swaps bitcoins, computer generated cash, for real world currencies. The change in status makes it easier to use bitcoins and bestows national protections on balances held at the exchange. Under European laws, the deal means Bitcoin-Central becomes a Payment Services Provider (PSP) that has an International Bank ID number. This puts it on an equal footing with other payment networks such as PayPal and WorldPay. As a PSP it will be able to issue debit cards, carry out real-time transfers to other banks and accept transfers into its own coffers."

Share on Google+

Read more of this story at Slashdot.

0
Your rating: None