The price of bitcoin took a hard hit this week. On Sunday, the price was down 18.44% on Bitstamp (Slovenia-based exchange), 17.23% on BTC-e (Bulgaria-based exchange), and 5.4% on itBit (Singapore-based exchange) testing the $300-levels. This morning, the price is slightly up, around $340, after a sale order of 26,000 bitcoins was placed on Bitstamp.
Bitcoin’s recent volatility provides a unique buying opportunity. This past week (hope you had your helmets and seatbelts on) has been something akin to a “micro-clearance sale,” which we may not see again unless demanding regulatory clouds roll in.
Click on the headlines for links to the full stories.
Summary of Government Related Initiatives
FinCEN Director Jennifer Calvery Interviews With CoinDesk
While she is skipping the Money 20/20 conference in November, Director Calvery gives a clear sign to the bitcoin community that FinCEN is closely monitoring the industry. FinCEN is almost exclusively focused on anti-money laundering and anti-terrorism. Money Service Businesses must register with FinCEN and comply with reporting obligations. Director Calvery says it is “unfortunate” that there are bitcoin exchanges who think they are operating under the radar. Some believe this interview could be foreshadowing an enforcement action.
Chamber of Digital Commerce Receives IRS Recognition
The Chamber of Digital Commerce has received approval from the Internal Revenue Service as a Tax-Exempt Non-Profit organization under section 501(c)(6) of the Internal Revenue Code. The Digital Chamber is now federally recognized as a business league that promotes the digital currency and digital asset industries. “To have the IRS recognize our organization is a big step for the digital currency industry and brings an added level of credibility to our efforts in Washington,” said Perianne Boring, Digital Chamber President.
Lucas Overby On the Future Of Bitcoin
Lucas Overby, Libertarian candidate running for US House of Representatives in Florida, published an op-ed in Cointelegraph last week. Not only is Overby accepting bitcoin contributions for his campaign, he has laid out a regulatory strategy which includes moving government to redefine bitcoin as a commodity as opposed to a currency. Overby sees the future of bitcoin in the power of the blockchain, which provides endless opportunities for innovation – above and beyond currency.
Summary of Industry Initiatives
Circle Launches Globally
Circle, the digital currency banking provider, publicly launched their much anticipated online platform last week. After months of operating in a private beta, the company now has support for customers who speak English, Chinese, Japanese, Portuguese (Brazilian), Spanish (Latin American), German, and French. Circle also offers 100 percent insurance on deposits. In addition, their iOS and Android apps will be available in the near future.
Coinbase Expands European Operations
Coinbase, the California based bitcoin e-wallet provider and platform for merchants and customers, expanded services into five more European countries last week; Ireland, Sweden, Denmark, Switzerland and Poland. Coinbase launched their European operations about a month ago, and today are operating in 19 European countries. Coinbase also increased their daily buying limit from 500 to 2000 euros for customers in France, Italy, Spain, Belgium, Netherlands, and Finland. The opportunity with Bitcoin is global / local, meaning building local onramps is critical in driving adoption in both developed and developing economies.
Bitcoin Is Getting Bigger In Spain
Merchants in Spain and specifically Madrid are becoming increasingly accepting of bitcoin. More than forty merchants and bitcoin services are being offered in Madrid most of which are part of Calle Bitcoin (Bitcoin Street). The first Robocoin ATM has even made its debut in Spain at One Shot Recoletos 04 Hotel. The One Shot Hotel chain will also become the first hotel chain in Spain to begin accepting bitcoin. Bitcoin Spain and One Shot Hotels are currently organizing an event to be held on October 22 to announce the ATM and acceptance of bitcoin at their hotels.
Coinapult Raises $775,000 In Venture Capital
Coinapult announced last week that they raised $775,000 from several notable Bitcoin investors including Roger Ver and Barry Silbert’s Bitcoin Opportunity Corporation. Coinapult was started in 2011 by Ira Miller and Erik Voorhess, and is an e-wallet provider that offers the ability to instantly convert Bitcoin to Euros, and US Dollars. This round of funding will be put towards further developing Coinapult’s platform.
Bitcoin Shop Expands To Different Bitcoin Markets
Bitcoin Shop, Inc., a public company that operates the online marketplace BitcoinShop.us, made two strategic investments this week to expand their goal of building a “universal digital currency ecosystem.” Last week they invested $40,000 into Hashmaster Tech, a bitcoin mining company, with hopes that this will increase the company’s cash flow. Two days later, Bitcoin Shop announced a $50,000 investment in Coin Outlet, a bitcoin kiosk manufacturer.
Epiphyte Takes Home $50,000 Prize At Sibos
Sibos, an annual conference operated by the SWIFT International Banking Operations Seminar for the financial services industry, was held in Boston last week. Epiphyte, the digital currency finance company, won the SWIFT Innotribe Startup Challenge taking home the $50,000 grand prize. According to Edan Yago, Epiphyte CEO, “We are building the bridge between established finance and cryptofinance” by allowing existing banking systems to communicate with digital currency networks.
This Couple Made Bitcoin History by Becoming the First to Wed Via the Blockchain
The Bitcoin blockchain is a public ledger that records all transactions on the Bitcoin network, which also enables one to inscribe messages and contracts within a transaction, such as a marriage certificate. On Saturday, October 5, David Mondrus, Bitnation advisor, married Joyce Bayo via the blockchain using a CoinOutlet kisok. Jeffrey Tucker, the author, and publisher of Liberty.me, officiated the first blockchain marriage.
The Boring Bitcoin Calendar
InsideBitcoins Las Vegas
October 5 – 7, 2014, Las Vegas, NV
The Inside Bitcoins Conference will be held this week at the Flamingo Hotel & Casino. Topics for the conference range from Bitcoin startups, investing, mining, equipment, altcoins and more. The first 300 paid attendees will receive $50 in Bitcoin. Speakers include Patrick Byrne, CEO of Overstock.com, Bobby Lee CEO of BTC China, and Perianne Boring, the President and Founder of the Chamber of Digital Commerce. Perianne will be speaking on a panel called, “Building an Effective Compliance Program and Managing Regulatory Expectations” on October 6th at 4:00pm. The Chamber of Digital Commerce is happy to announce that they are partnering with the Inside Bitcoins Conference and Expo, and if readers are interested in attending they can enter code CHAMBER to receive 10% OFF Gold and Silver Passports. Register Now! http://insidebitcoins.com/las-vegas/2014/register?utm_source=boringbitcoinreport&utm_medium=email&utm_campaign=partneriblasvegasboring(Register now url)
CoinAgenda Investor Conference
October 7 – 9, 2014, Las Vegas, NV
CoinAgenda will debut the first conference dedicated exclusively to Bitcoin and cryptocurrency investors. CoinAgenda will comprise two events in one. The first is a high-end conference for accredited and sophisticated investors seeking the latest knowledge and trends in bitcoin investing, and will be taught by some of the biggest names in the Bitcoin industry. The second is a concurrent event sponsored by BitAngels, the world’s largest angel network for investing in Bitcoin companies. The focus will be on investment in bitcoin and cryptocurrency companies, but it will also serve as the first global conference for the 500-person angel group.
CFTC Public Meeting on Bitcoin
October 9, 2014, Washington, DC
The Commodities Futures Trading Commission (CFTC) will hold their first public meeting on bitcoin to discuss the Commission’s role in regulating derivatives contracts that use bitcoin. The meeting is open to the public for viewing either in person, or through a live video stream at www.cftc.gov.
Rise and Rise of Bitcoin Documentary Goes On Sale
October 10, 2014, iTunes
The first ever Bitcoin documentary, The Rise and Rise of Bitcoin, goes on sale on iTunes this Friday, October 10. The documentary features Daniel Mross, 35 year old computer programmer and bitcoin miner from Pittsburgh. It includes interviews with some of the most prominent bitcoin players including Tyler and Cameron Winklevoss, Mark Karpeles, former Mt. Gox CEO, and Charlie Shrem, indicted CEO of BitInstant. If the documentary receives enough pre-orders, Apple will put the film on the front page of the iTunes store. You can pre-order The Rise and Rise of Bitcoin here.
Tweet of the Week
For anyone complaining about the current price of bitcoin, remember it has more than doubled over the last 12 months. pic.twitter.com/FVv18UuODW
— Roger Ver (@rogerkver) October 5, 2014
Picture of the Week
Quote of the Week
“Bitcoin is better than currency in that you don’t have to be physically in the same place and of course for large transactions currency can get pretty inconvenient.” -Bill Gates
In Bitcoin fashion – send a tip to the Boring Bitcoin Address: 12LFcP4HgHMecskwLQXaRKJuHR21xgvQm8