DigitalCurrency
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Pusha T’s ‘heir’ app lets users vote on hip-hop tracks
Pusha T is making moves in the tech world, announcing a new app he's working on called "heir." With heir, users will be able to vote on hip-hop tracks, upvoting them with a fire emoji or downvoting them with a skull and crossbones. Voters can also earn a digital currency called Crown -- upvoting a track that turns out to be popular can you earn you Crown, for example, while upvoting one that's a flop with other users could cause you to lose it.
Bitcoin grows up and gets its first federally regulated exchange
Bitcoin is set to be given the same financial safeguards as traditional assets. The US Commodity Futures Trading Commission has granted LedgerX, a cryptocurrency trading platform operator, approval to become the first federally regulated digital currency options exchange and clearinghouse in the US. Despite reaching dizzying new highs this year -- and overtaking the value of gold -- Bitcoin has so far gone unregulated. LedgerX's new role will allow investors to hedge against price swings in digital currencies in the same way that traditional assets are protected.
Razer's 'paid to play' program bribes gamers to use its Cortex software
Lingering in the mind of every gamer is a silly, whimsical idea that very few manage to make a reality. "Gee," we think to ourselves. "It sure would be neat if I could get someone to pay me to play video games." Most of us know it's a futile dream, but it's a desire Razer is banking on. Today the company announced its "paid to play" initiative, a program that's almost exactly what it sounds like. Yes, Razer is going to reward gamers for play their favorite games, but those players won't be earning cash -- they'll be earning ZSilver points from the company's new digital currency platform.
Razer's new digital currency is both outdated and enticing
The last thing the gaming industry needs is another digital currency system that supplants dollars for an exclusive "points" system -- and yet that's exactly what Razer invited me to see at its San Francisco offices last week. The company's pitch was almost contradictory. Razer zVault is a digital wallet system designed to unify payments across platforms encumbered by a myriad of other fragmented digital wallets. It sounds ridiculous, but it's already moderately successful: over six weeks, the zVault pilot program has already tracked over 370,000 transactions using zVault's zGold currency. That's probably due in part to the fact that zVault boasts a burgeoning rewards program that offers users discounts, free games and a second bonus currency that can be used to buy Razer accessories and laptops.
Microsoft will continue to support Bitcoin in the Windows Store
Over the weekend, people noticed that Microsoft's Windows 10 Store FAQ had been updated, and claimed Bitcoin is no longer a supported payment method. Now, the company tells Softpedia that this update was "inaccurate information" and that users can still use it to add money to their Microsoft account, and then purchase content in the Windows and Xbox stores. All's well that ends well, right?
This fitness tracking app pays you to walk more
Having a hard time motivating yourself to exercise? What if somebody offered to pay you work out? That's the idea behind Bitwalking -- an app, digital currency and marketplace that pays its users 1BW$ (Bitwalking dollar) for every 10,000 steps they take.
Dorian Nakamoto is raising money to sue Newsweek
March was a busy month for Dorian Satoshi Nakamoto -- Newsweek named him as the "face behind Bitcoin," a cryptocurrency the California resident claims to have only heard about a few weeks before the article's publication. Nakamoto hired a lawyer and issued a unconditional denial of allegations. Now it seems like that lawyer is about to go to work: Nakamoto has launched a legal defense fund to help pay for an impending lawsuit against Newsweek. The fund's URL and official Twitter account are bluntly named, and to the point: "NewsweekLied."
World's first government-backed digital currency to launch in December
It doesn't yet have a name, but Ecuador's new government-backed virtual currency is coming. That's the thrust of a new report from the Associated Press, anyway -- the country's Central Bank is said to be gearing up for a launch sometime in December, though the juicy technical details and the mechanics of how citizens can get their metaphorical hands on these things are still shrouded in mystery. What does seem clear at this point is that Ecuador's current cash (in the form of US dollars) isn't going anywhere, and that people will be able to conduct transactions with each other from their mobile phones without big fees eating into them. If everything goes according to plan, this'd be the first time a national government has launched its own official digital currency, though that's not to say some cryptocurrency nuts haven't aimed to affect change on a national scale. Enthusiasts in the Czech Republic launched the CzechCrownCoin a few days ago in a bid to bolster online business in the country, and the Auroracoin folks made the virtual equivalent of $380 available to all the fine folks of Iceland... only to see its value tank over time.
Mt. Gox gets its login page back, but only lets users check their Bitcoin balance
Wondering where your Bitcoins are? Looks like Mt. Gox is giving you an official way to check. The fallen Bitcoin exchange has updated its homepage with a sparse login screen, inviting users to sign in and check their wallet's balance -- with a caveat. "This balance confirmation service is provided on this site only for the convenience of all users," the site warns. "Confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure... ...and should also not be considered an acknowledgement by MtGox Co., Ltd. of the amount of any rehabilitation claims of users." That legalese is referring to Japan's Civil Rehabilitation Law and Mt. Gox's bankruptcy proceedings, which are counting the company's assets to suss out a liquidation value. Mt. Gox users with Bitcoin stuck in limbo may eventually get a percentage of their wallet's worth based on the official totals. It's not a particularly heartening disclaimer, but at least it gives users a way to verify their online wallets without putting their accounts at risk.
Bitcoin's elusive founder reportedly discovered living in California (update: maybe not)
There have been many theories bandied about as to the true identity of Satoshi Nakamoto, the creator of Bitcoin. Nothing conclusive has married the name to an individual or group, but now Newsweek claims to have found the Nakamoto, a 64-year-old Japanese-American man of the same name residing in California. Allegedly living an understated life, Nakamoto's said to no longer be connected to the digital currency he's implicated in making. We know this all sounds annoyingly cut and dried (a story's often more exciting than the reality, after all), but there's still Nakamoto's name changes and classified government work, among other things, to keep things mysterious. Whether this truly is the father of Bitcoin is still up for discussion, too -- there's still been no clear admission as such -- so we'll just point you to the Newsweek piece and let you make your own mind up. Update: After an eventful day of dodging reporters and engaging in a multi-car chase through Los Angeles, Nakamoto has sat down with the Associated Press to strongly deny he has anything to do with the digital currency. Indeed, he told the AP that he's never even heard of Bitcoin until three weeks ago when his son told him a reporter called to ask questions about it. However, the Newsweek article itself quotes Nakamoto's brother as saying that "he'll never admit to starting Bitcoin" and that "he'll deny everything." All of which is to say the true identity of Bitcoin's founder remains very much unconfirmed. Update 2: Apparently the genuine Satoshi Nakamoto has just posted on to the P2P Foundation (a forum for peer to peer currency) stating that he is not Dorian Satoshi Nakamoto, the person whom Newsweek fingered as Bitcoin's founder.
Mt. Gox reportedly subpoenaed by the feds, CEO confirms leaked proposal was legit
The strange days of (former?) Bitcoin exchange Mt. Gox continue. In a conversation with an industry consultant posted by Fox Business, its CEO Mark Karpeles confirmed that a PDF leaked by The Two Bit Idiot is "more or less" legitimate. According to Karpeles, it was a "bunch of proposals to deal with the issue at hand, not things that are actually planned and/or done." The Wall Street Journal reports its sources confirm that federal prosecutors sent a subpoena to Mt. Gox earlier this month, requiring it to preserve documents. Since the exchange turned out the lights last night, the price of Bitcoin has actually risen again, and is currently showing a buy price of $581 on Coinbase. While the digital currency itself seems to be moving on, what's next for Mt. Gox is unclear. Karpeles sent an email to Reuters indicating an official statement will come "soonish," -- not too soon, we expect, for those waiting to find out what's happened to their funds.
Bitcoin and other cryptocurrencies compromised by Pony botnet
It looks like the Pony botnet that stole two million passwords in December has an even more egregious sibling galloping around. According to security firm Trustwave, this more advanced botnet has compromised 700,000 various online accounts up to date (it's been active since September), including 85 Bitcoin and other cryptocurrency wallets mostly from Europe. In the months since the equine-loving hackers got the wallets' private keys, a total of $220,000 have been transferred into and out of the accounts. Because anyone can take over a wallet with the appropriate private key (and cryptocurrencies' transactions go through anonymously), it's unclear whether that much money was actually stolen. Some of those transactions could very well be performed by the original owners themselves. Still, add this incident on top of the $1.2 million Input.io Bitcoin heist in 2013, and it's clear users need to start using (strong) transaction passwords and store their wallets offline. Those who've sadly been negligent in the security department can use Trustwave's Bitcoin tool to check if they own one of the 85 accounts. Considering popular Bitcoin exchange website Mt. Gox just went dark, as well, we hope nobody's retirement funds got wiped out.
Bitcoin exchange Mt. Gox goes dark (update: site issues cryptic statement, could still relaunch as Gox)
Less than a year ago when we took a long look at Bitcoin, exchange Mt. Gox reportedly handled some 80 percent of global traffic in the digital currency. Tonight however, the exchange's website is offline, all tweets have been deleted from its account, and customers are unsure what will happen to fiat currency (cash) or Bitcoin that it holds. There were signs of trouble before this however, as Mt. Gox hasn't been the leading Bitcoin exchange since late last year, and it halted customer withdrawals on February 7th. The Bitcoin Foundation, which advocates for the digital currency, announced that Mt. Gox CEO Mark Karpeles resigned on Sunday. A price index from digital currency tracker CoinDesk currently shows the value of Bitcoin has dropped $100 in 12 hours to $463, while Coinbase lists a buy price of $448. Prices for Bitcoin on Mt. Gox had fallen as low as $135, as the exchange issued a statement on the 17th that it had halted withdrawals while dealing with security issues. Rumors have flown about what's going on, and Reddit poster relliMmoT, who posted the screenshot above, reports trading halted at 8:59PM ET before the site went offline. Several other companies involved in digital currency including Coinbase, Blockchain.info, Circle, Kraken, Bitstamp.net and BTC China have issued a joint statement in response, decrying Mt. Gox's "tragic violation" of user trust. They're also promising to reassure customers and the public about their security, and to "lead the way" in consumer protection measures. Curiously, the statement originally referred to the exchange as insolvent (and still does on Circle), but that reference has been removed. According to Re/code a spokesman for the group stated that the troubled exchange has informed others that it will file for bankruptcy, but that can't be confirmed at this time. Update: Several Twitter users have noticed a change in Mt. Gox's previously DOA website. Instead of simply failing to load, as of 4AM ET or so, it has switched to a blank page with HTML indicating "put announce for mtgox acq here." Is someone about to step in and clean up the mess? If and when we hear something definitive, we will let you know. Update 2 (9AM ET): Coindesk says domain investor Andy Booth has confirmed the sale of the Gox.com domain to Mt. Gox CEO Mark Karpeles. This is particularly notable, because it lends credibility to an alleged pitch document originally posted by "two bit idiot" with an appeal to potential investors for relaunching Mt. Gox. According to the document (here and embedded after the break), the exchange has significantly more liabilities than assets while suffering from "massive robbery and poor Bitcoin accounting." Other than planning for a replacement CEO, it closes by pushing for a transition to "Gox," and offering limited withdrawals as it generates revenue to pay back stakeholders. Update 3 (11AM ET): Mt. Gox has released an official statement saying that it has closed all transactions as a precaution to protect the site and its users. Unfortunately, it's not entirely clear what the team is protecting users from. Perhaps its the volatility introduced by the domain changing hands or an impeding bankruptcy proceeding. Or, maybe, it's somehow related to the more advanced version of the Pony botnet that's been making the rounds -- but that seems unlikely. The entire statement is below. Dear MtGox Customers, In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly. Best regards, MtGox Team
Bitcoin exchanges shut down after threat from India's central bank
Bitcoin is quickly beginning to attract the attention of regulators in a number of countries. After a flat-out ban in Thailand and restrictions on banks in China, now several Indian Bitcoin exchanges have suspended operations following a warning from the Reserve Bank of India concerning digital currencies. Issued December 24th, the statement outlines the risks of a purely electronic wallet, unregulated transactions and value fluctuations. It also contains what could be considered a threat, however, stating that virtual currency users could be breaking money laundering and terrorism financing laws -- one report from the subcontinent suggests the government has carried out the first raid on a Bitcoin exchange, too. Thus, some sites have decided to close for the time-being, leaving notes on their homepages expressing the need for clear legal guidelines before trading can resume. Undoubtedly we'll see more countries take steps towards regulation, especially as the price of currencies rise. Nothing decreases something's worth like outlawing it, after all.
Texas federal judge declares Bitcoin a currency, says Bitcoin investments fall under US securities law
Bitcoin's been in the news a fair bit lately due to the uncertainties surrounding the Mt. Gox exchange, where one can trade in the digital money for the official currencies of countries around the world. However, for many, Bitcoin remains an ephemeral idea, neither received nor recognized as a valid way to, you know, pay for stuff. Today, however, a federal judge in the Eastern District of Texas has officially recognized Bitcoin as a currency and declared that Bitcoin investment funds and transactions fall under the jurisdiction of US securities law, and therefore, the federal justice system as well. The ruling was handed down in a case brought by the Securities and Exchange Commission against a man who created a Bitcoin hedge fund and is alleged to have defrauded the investors in that fund. So, while most of us don't have to worry about Bitcoin fraud, it's good to know that the federal government is looking out for us should we decide to invest in the digital currency.
BitInstant founder says BitCoin debit card to launch within next two months
A BitCoin debit card could be in your very near future thanks to the efforts of trader-backed BitInstant. That fund transfer outfit, dedicated solely to the digital currency, has partnered with an undisclosed international bank to launch a branded debit card within six to eight weeks. News of the development first surfaced yesterday during an online chat with company co-founder, Charlie Shrem, in which he confirmed the cards would cost users $10 apiece to purchase and carry a 1% bitcoin transfer fee, as well as $1.50 ATM withdrawal fee. To further streamline the exchange process, users will be able to make quick transfers under $1000 by scanning a QR code overlay on front or by accessing the personal BitCoin address listed on back -- all possible with a single confirmation. Initially, the cards will be denominated solely for USD, GBP and EUR, but more foreign currencies could soon be added in the lead up to its official debut. For now, those are the only bits Shrem was willing to share, as further details on this plastic alternative will be forthcoming prior to official launch. Until then, there's always AMEX.
Royal Canadian Mint aims to kickstart digital currency with MintChip developer challenge
Bitcoin may not have yet grown much beyond a relatively small base of enthusiasts, but it looks like the Royal Canadian Mint is hoping that its backing will help its own new digital currency catch on in a bigger way. While less decentralized and different than BitCoin in a number of other respects, it is similarly an all-digital currency, and one that requires no personal data to be shared during transactions. Those transactions can be both large and very small (with an emphasis on the latter), and handled in a variety of ways, including over the web or directly between two devices with the necessary hardware (a MintChip-enabled microSD card is one proposed option). While a more formal unveiling is apparently coming later this month, the Mint has already kicked off a challenge where it's inviting developers to create applications that use MintChip technology -- something that, for the near future, will only be available to said developers. Complete details on it can be found at the link below.
Compromised account leads to massive Bitcoin sell off, EFF reconsiders use of currency
Bitcoin, for those not aware, is a completely digital currency -- one where exchanges between individuals are largely anonymous and secured through cryptography, and one that has seen its hype-meter go off the charts in recent months. That, inevitably, has had some people waiting for a fall, and it took a big one this week. While things have since bounced back, the value of the currency on the so-called Mt. Gox exchange dropped from around $17.50 to just one cent in a matter of moments during the early hours of June 20th -- a drop that's since been attributed to a compromised account. Thanks to a daily withdrawal limit, however, that apparently only resulted in $1,000 actually being stolen, and a claims process has now been set up for those affected. While not directly related to the sell off, the Electronic Frontier Foundation (or EFF) also dealt a bit of a blow to the upstart currency this week, when it announced that it would no longer be accepting Bitcoin donations. According to the organization, that's both because it doesn't "fully understand the complex legal issues involved with creating a new currency system," and because it doesn't want its acceptance of Bitcoins misconstrued as an endorsement of Bitcoin. Head on past the break for an account of the aforementioned plunge as it happened. [Thanks, Zigmar; image: Wikipedia]
