Tech and Banking Giants Ditch Bitcoin for Their Own Blockchain | WIRED

Still no mention of how this blockchain will work.  But it’s a powerful validation that bitcoin is not going away.   Imitation is the sincerest form of… validation.  All that matter is how will this ledger be secured.

 

IBM, Intel, and Cisco are joining the London Stock Exchange and others to create their own version of bitcoin’s worldwide ledger.

Source: Tech and Banking Giants Ditch Bitcoin for Their Own Blockchain | WIRED

Japan panel eyes registration system for virtual currency exchanges | The Japan Times

Japan’s Chief of Bitcoin Regulations

Taking a page from the New York Department of Financial Services, Japan appears toe begin working on rules to regulate virtual currencies. No word from Mt. Gox or Mark Karpeles if this will impact their business.

More from Japan Times

A working group under the Financial System Council has compiled a draft proposal on regulations for virtual currencies that are traded on the Internet, informed sources said Wednesday

The draft calls for introducing a compulsory system for the operators of virtual currency exchanges to be registered with the Financial Services Agency to protect virtual currency users, the sources said.

Source: Japan panel eyes registration system for virtual currency exchanges | The Japan Times

Bitcoin Market Sells Off Briefly in Response to Fed Interest Rate Hike

For the first time in almost a decade the Federal Reserved has raised interest rates a .25 percent and set the new rate target to between .25 percent and .5 percent.   The expectation in the markets is the Fundamental shift by the Fed has set in motion a plan to incrementally raise rates through 2016.

 

BTC_Chart_1438_121615

 

The response in the Bitcoin market was a brief sell off which saw the intraday price of Bitcoin on the Bitfinex exchange trade from $454.00 down to $446.50. Bitcoin quickly recovered and is now trading again at $454 as off 2.37 PM Eastern time.

Interest rate increases have traditionally meant a stronger dollar.  Continued appreciation by Bitcoin in the face of U.S. rate hikes would be extremely bullish.

Bitcoin At Tax Time: What You Need To Know About Trading, Tipping, Mining And More – Forbes

If you have come into possession of Bitcoin or any other digital currency such as Ripple or Litecoin that is “convertible” to a real currency or can be used to pay for goods and services, it may seem virtual. But the Internal Revenue Service considers it very real and you need to account for it at tax time.

Here’s how Bitcoin that you have mined, minted, spent, tipped, gifted, donated, etc., will be taxed, plus two gray areas you should be aware of.

Source: Bitcoin At Tax Time: What You Need To Know About Trading, Tipping, Mining And More – Forbes

Charlie Lee Creator of Litecoin  on the blocksize debate

 

Charlie Lee creator of litecoin makes his case for a conservative approach in regard to  blocksize increases. And why he doesn’t support BIP101 the current proposal for blocksize scaling submitted by Gavin Andresen

I first discovered Bitcoin in early 2011. Like many, I thought it was brilliant. Bitcoin transactions were decentralized…

Essentially, early Bitcoin users get the cake and eat it too. Unfortunately, this won’t last. By design, the block rewards halves every 4 years and will trend towards zero. As that happens, we will have to choose which of these 5 core Bitcoin features (decentralized, secure, fast, cheap, and unlimited) we are most willing to sacrifice. I will use an analogy to paint the picture for why this is the case.

 

Source: Eating the Bitcoin Cake — Medium

SEC Approves Plan to Issue Stock Via Bitcoin’s Blockchain | WIRED

What will equity bankers do oh no.  Patrick Byrne no fan of Wall Street has got approval from the SEC for his company Overstock to issue shares on the bitcoin blockchain.

Patrick Byrne ceo Overstock.com, Wall Street nemisis

Federal regulators, in a significant shift in how financial securities will be distributed and traded, have approved a plan to issue stock via the Internet.

Public documents filed by Overstock show that the SEC has approved an amended Form S-3 that would allow the company to issue public securities via blockchain-based technology, and Byrne plans to announce the news this evening at a bitcoin conference in San Diego.

Source: SEC Approves Plan to Issue Stock Via Bitcoin’s Blockchain | WIRED

If Overstock is able to successfully complete a share offering using the blockchain, it would be a cannon shot across the bow of Investment Bank Armada.  The ability to potentially appify share issuance into a blockchain service would undercut a lucrative business model for the banks.

Bitcoin foundation on its last legs

A post on Reddit by user anarchystar believed to be Bitcoin Foundation Olivier Janssens describes a recent meeting of the foundation where he was voted of the board and board member Jim Harper resigned.   The Bitcoin Foundation has become almost irrelevant at this point.

  • There was a discussion on our future, because the Foundation only has a couple of Bitcoins left. They’ve been running on a skeleton crew for the last half year, but even that money has ran out.
  • Someone (not me) started a vote on shutting down the Foundation. During the vote, I said that I’m not comfortable continuing the Foundation without a plan and direction. Jim and me have been asking for a plan and direction for many months. The voting result was 2 for (Jim and myself), 3 against. We were one vote short to shut it down.
  • Jim resigned after this vote
  • We then had a discussion about the future of the Foundation. They wanted everyone to start raising money, so they could come up with a plan. I said I’m not comfortable to raise money UNTIL we have a plan.
  • They then proceeded to vote me off the board, because they did not like that (I guess it’s bad intent on my behalf to ask to come up with a business plan before you decide to raise money).

source: I’ve just been forcibly removed from the Bitcoin Foundation board | r/bitcoin

Department of Homeland Security is a  Bitcoin incubator?

Department of Homeland security brokers bitcoin and is now funding bitcoin technology.  While some Bitcoiners maybe horrified, this shows that government recognizes Bitcoin is here to stay.

The Department of Homeland Security is now seeking proposals for blockchain related applications in different endeavors from small businesses.

The U.S. Department of Homeland Security through the SBIR’s Science and Technology Directorate (S&T) is now accepting proposals from small businesses comprising of fewer than 500 employees in at least 10 topic areas. Interestingly, the areas also cover the topics of “Applicability of Blockchain Technology to Privacy Respecting Identity Management” & “Blockchain Applications for Homeland Security Analytics”.

Source: Department of Homeland Security Wants Blockchain Applications – CCN: Financial Bitcoin & Cryptocurrency News

Bitcoin Hits Highest Levels Since Late 2014 | TechCrunch

After a rough 20 months in Bitcoin starting with the collapse of Mt.Gox in Feb of 2014, the Bitcoin price has been coming back to life.  Well above its 2015 low of $167.00.  What’s driving Bitcoin higher?  Is it Chinese investors seeking safety, increasing user base, expanding use cases, the reality is all of the above.

After a mostly boring 2015, bitcoin is making waves as the year ends by reaching new price heights. Bitcoin is north of the $400 mark, once again, for the second time since 2014. This time, it has…

Source: Bitcoin Hits Highest Levels Since Late 2014 | TechCrunch