Sunday, June 26, 2011

Debit cards poised to get much more expensive

According to this LA times article (HT: qualia8):

The bottom line is that banks stand to lose more than $10 billion a year in merchant fees and more than $6 billion in overdraft fees. They'll be looking to make it up somewhere — and it's likely to be from the mainstream debit card users, not just the sloppy ones.

More incentive to switch to a lower-friction medium of exchange.

Saturday, June 25, 2011

The Future

The Extent of the Bank Run on Mt. Gox

Update -- 2011/06/26 13:24pst: I still can't get to my money, but it looks like they still have at least ~26000BTC left.


It's that large, recurring transaction at the top with the slightly downwards slope. Mt.Gox can presumably pay it's debts until that gets to zero (at least).

I don't have my money yet, but I'm not worried. For now.

Friday, June 24, 2011

Bitcoins are Free!

The Global Bitcoin Stock Exchange (GLBSE) is Live!

It can be found at (But I get a certificate warining)

See the stock prices here:

A breakdown of some the stocks:


Ubitex makes it easy for you to meet someone in person, and do the transaction face-to-face. And since you pay in cash, face-to-face, fraud is nearly eliminated.


SkepsiDyne Integrated Node is a mining company that is publicly listed on under the ticker SIN. As of June 19, we've sold 1,547 shares, and sold the BTC raised for over $9,000. We currently have 9 rigs producing ~8.1 Ghash/sec.

Some more stats for SIN


As far as I can tell it's another mining company?


Yet another mining company

5) GLBSE:CM400

CentiMine: Anonymous mini-mining contracts


Another mining company

Thursday, June 23, 2011

Assorted Links

1) Meshkit looks super interesting

2) The flashcrash has convinced me it's time for lastpass

3) RantRadio looks interesting

4) LulzSec strikes again!

5) Bitcoin and Agorism

Gavin Andresen reads MarginalRevolution

Awesome. is my favorite blog. Tyler Cowen's blog (and book!) has (very evidently) been a huge influence in how I approach blogging.

Sunday, June 19, 2011

June 19th 2011: The Bitcoin Flashcrash

In case you missed it:

Mt. Gox Account Compromised. Huge Sell-off.

UPDATE: MTGox Database compromised. That password is no longer secure. Change them!

From their blog:

Huge Bitcoin sell off due to a compromised account - rollback

The bitcoin will be back to around 17.5$/BTC after we rollback all trades that have happened after the huge Bitcoin sale that happened on June 20th near 3:00am (JST).

Service should be back by June 20th 10:00am (JST, 01:00am GMT) with all the trades reversed and accounts available.

The Canadian exchange cavirtex did not collapse, and AFAIK does not need a rollback.

Friday, June 17, 2011

Very Good Rhymes

See some of us are looted with mail and suited as well
But still blind like you're fluent in Braille

-Chali 2na

Thursday, June 16, 2011

Bitcoin: What would Milton Friedman Say?

From wikipedia (HT)

Friedman believed that if the money supply was to be centrally controlled (as by the Federal Reserve) that the preferable way to do it would be with a mechanical system that would keep the quantity of money increasing at a steady rate.

Note he advocates a steady rate, if the money supply was to be centrally controlled. I wonder what he'd think of Bitcoin's deflationary nature?

However, instead of government involvement at all, he was open to a "real," non-government, gold standard where money is produced by the private market: "A real gold standard is thoroughly consistent with [classical] liberal principles and I, for one, am entirely in favor of measures promoting its development."

It sounds like he's for private banking backed by gold, but..

He did however add this caveat, "Let me emphasize that this note is not a plea for a return to a gold standard.... I regard a return to a gold standard as neither desirable nor feasible—with the one exception that it might become feasible if the doomsday predictions of hyperinflation under our present system should prove correct.

Inflation like this MIT estimate? An elaboration:

A real honest-to-God gold standard is not feasible because there is essentially no government in the world that is willing to surrender control over its domestic monetary policy

So he was for a steady rate of monetary growth, if centrally controlled. He was for gold, but didn't know how to get there as no government would surrender control.

Now there's the potential to take it back, weather they surrender it or not.

I'm left with more questions than answers.

Ghost Cities

What's wrong with this picture?

No, it's not CG. It's one of many Chinese ghost cities (lots of pics!):.

China plans to build 20 cities a year for the next 20 years. The unacknowledged problem is finding buyers for those hundreds of millions of new homes.

"China consumes more steel, iron ore and cement per capita than any industrial nation in history. It's all going to railways that will never make money, roads that no one drives on and cities that no one lives in."
"It's like walking into a forest of skyscrapers, but they're all empty," he said of Chenggong.

Very Good Sentences

I think Bitcoin and cryptocurrency stands to challenge and has the potential to topple the very notion of unlawful trade, just like the printing press challenged and toppled the notion of unlawful speech.

That's from Rick Falkvinge's (@Falkvinge) piece "Bitcoin’s Four Drivers: Part One – Unlawful Trade"

Tuesday, June 14, 2011

Very Good Sentences

In fact, Bitcoin takes the denationalisation of money a step further than Hayek did. Where Hayek’s system requires government to remove legal tender laws and Rothbard’s requires governments to return to the gold standard, cryptocurrencies like Bitcoin have no such political prerequisites. There is no bank to shut down, no specie to seize (the downfall of the ill-fated Liberty Dollar) – nothing at all for governments to aim at, except individual users. And as the war on internet piracy should demonstrate, such a campaign cannot be other than costly and ineffective.

That's C. Harwick's (@thrica) article 'Bitcoin and the Denationalisation of Money'.

Tomorrow (June 15th) should be a big day for Bitcoin

Tomorrow Gavin Andreson (@gavinandresen , Bitcoin technical lead) will give a presentation on Bicoin to the CIA. He'll then join Bruce Wagner (@brucewagner , host of the Bitcoin Show) on onlyonetv for a de-breifing.

Combine that with the bump that's surely on the way from the Economist article and it should make for an interesting day!

Some videos to prime you for the action:

1) Bruce Wagner joins Stefan Molyneux on Freedomain Radio

2) CIA's venture capital arm, In-Q-Tel evaluates Bitcoin

Monday, June 13, 2011

Sunday, June 12, 2011

Bitcoin coverage roundup: June 12th

1) Looks like bitcoin survived it's first major correction as an old-timer cashed out. This is a good thing. It makes the market stronger, and lets us pick up bitcoins for a deal. To those yelling 'bubble', lets maintain perspective: this correction only undid 4-days worth of growth.

2) More Bitcoin/Silk-road scaremongering. DEA has yet to say anything definitive

3) IMF is hacked. Maybe someone should tell them about bitcoin.

4) Ripple / RainDrop looks really cool (hat tip: bitcoin sun). Need to learn more.

Bitcoin Browser Extensions

For Chrome

1) Bitcoin Ticker

2) Mt. Gox Peek

For Firefox

1) Bitcoin Prices

Thursday, June 9, 2011

The Bitcoin Show - Episode 2


They need to fix the audio...

I love this shirt!

If only they'd accept payment in BTC

New Bitcoin Exchanges

With the assault on Bitcoin imminent, redundancy in exchanges is critical.

1) Canada gets its first exchange! (other resources for Canadians)

2) Another new exchange: (register now and get a 10% lifetime discount on commission)

3) Gavin Andersen (technical lead) on ABC Australia

4) Mt.Gox Day trading platform

5) Not earning enough mining? Earn BTC for cracking hashes.

Wednesday, June 8, 2011

The First Volley in the Attack on Bitcoin

Here's Reuters:

Democratic Senators Charles Schumer of New York and Joe Manchin of West Virginia wrote to Attorney General Eric Holder and Drug Enforcement Administration head Michele Leonhart in a letter that expressed concerns about the underground website "Silk Road" and the use of Bitcoins to make purchases there.

Watch Charles Schumer's press conference here.

Here's a Fox affiliate:

Both of Missouri's U.S. senators tell Fox 2 they are joining other federal lawmakers who want a drug-dealing web site shut down.

I assume that's Roy Blunt and Claire McCaskill? I can't find anything else on them weighing in.

We do know that the CIA is at least aware of bitcoin too..

Some reactions to this warning shot, and some advice:

You probably have a little more time before the attacks come (maybe a couple of months?) to acquire bitcoin with cash – and there are profits in speculation to be made until then but, when the raids come, expect a sharp correction before exchange values move on to new highs over a longer period of time. What you do not want to do is be involved as an “exchange service” conducting exchanges in and out of national currencies and you definitely do not want to have your money sitting in the exchanger’s account when they are raided and shut down.

Of course, having many reliable exchanges is the key (think many torrent search sites). Here's a brand new one.

Sunday, June 5, 2011

Bitcoin coverage roundup: June 5th

1) Senator Charles Schumer (Dem) and Senator Joe Manchin (Dem) are asking federal authorities to take down the silk road. Good luck, they're going to need it.

2) An interview with Nefario, founder of Bitcoin Global. He lays out why shutting down sites like the silk road wont be so easy (and will get progressively more difficult)

CryptoCloud is to be a cloud based computing platform (ala. Amazon AWS) that is hidden in cypherspace (inside the darknets I2P or Tor) so that their location cannot become known. This will allow anyone to easily start any kind of project that if it were illegal in whatever jurisdiction, will be able to run with impunity on CryptoCloud. So services such as Torrent sites, copies of the original Napster, and even directly selling copyrighted materials will be allowed (actually the policy as it stands is that pretty much anything will be allowed).

3) A Bitcoin billboard!

DIY links

1) DIY boats

2) DIY badass eco-house

Thursday, June 2, 2011

Bitcoin for Canadians

UPDATE: June 23rd.

There's now the canadian exchange which was accepting CAD via interac e-mail, but no more till they're out of beta.

There's also a google-group discussion about an alternative:

1) Join us on IRC (check out the quickstart guide, if needed)

2) Join the bitcoin-canada meetup group!

3) How to securely trade bitcoins using Interac email transfers and clearcoin.

4) Checkout the RFC for a Canadian bitcoin exchange. Tell us what you think!

Happy 1:10USD Day Bitcoin


In honour of this momentous occasion, I give you (surprise, surprise) assorted links!

1) Buy drugs with bitcoin! (currently not accepting new members)

2) 7 Linux Shells Using Built-in Tools

3) Today I discovered Not sure what to make of it yet

4) But it did lead to the discovery of Satarii, which is pretty cool.

Wednesday, June 1, 2011

China has discovered bitcoin

A large number of Google searches for 'bitcoin' are now coming from China.

Bitcoin: Not just for paranoid white dudes any more. I see this as significant.