Kvě 01

Industry Report: Bitcoin Error Makes Miner Rich, DCG Grows Empire

Source: bitcoin

Bitcoin Industry Report

Want to catch up on digital currency news? This week, an accidental transaction landed a bitcoin miner a hefty sum of coins, and Barry Silbert’s Digital Currency Group got even bigger. Take a look and see what you’ve been missing.

Also read: Industry Report: EU Gets Serious, Blockchain Does Healthcare

BITCOIN ERROR = MASSIVE FUNDS!

Imagine that you’re expecting a minor payment from a friend or colleague. Nothing big, maybe a few dollars or so. Just a little something to help keep you afloat… They decide to pay you in bitcoin, so you sit, staring at your account, expecting the amount to come through at any moment, and when it arrives, you begin to sweat. Your heart beats faster, and the adrenaline is rising in your system. For some reason, this person didn’t send you $1; they sent you $100,000.

This is the scenario that occurred just a few days ago when someone (presently unnamed) sent a transaction for five cents worth of bitcoin and wound up paying an additional $137,000 in fees in what is being labeled a massive, unintentional error.

The occurrence likely happened due to the swapping of fee fields between transactions, possibly through a script moving money around. The recipient of the fee is allegedly a Chinese MLM operation. At this time, no plans have been made to return the funds. Furthermore, it likely won’t be easy to return them even if the company wants to. The company may have to deduct the amount as a business expense after booking the funds, and the recipient would have to provide excessive evidence that they are who they say they are (and be subject to further scrutiny from there). Either way, a bank-breaking payday is in store for some lucky party.

DIGITAL CURRENCY GROUP

A lot has been happening with Digital Currency Group. After obtaining Coindesk, one of digital currency’s most prominent news platforms, the company has announced that Larry Summers, former Treasury secretary and former president of Harvard University, is joining DCG as the company’s senior advisor.

Summers has been a long-time Bitcoin fanatic, and voiced his support for the currency just last year at the Museum of American Finance, stating:

“We have seen so little innovation cumulatively directed at taking the frictional costs out of the system. The notion that there’s going to be a lot of innovation and experimentation around how those frictional costs can be taken out feels like a very important idea.”

Adding to the good news is banking conglomerate Western Union, which now serves as one of the company’s top investors along with other high-ranking financial firms including OMERS Ventures, Kingsbridge Wealth Management, and Wood Investment Partners.

Expressing his enthusiasm, CEO Barry Silbert explained:

“We are honored to have the support of so many fantastic investors and advisers and the trust of our portfolio companies and subsidiaries who are looking to us for not just capital, but an opportunity to leverage our insights and engage with our broad network. The DCG family continues to grow, and we are excited to continue supporting and building meaningful businesses in the digital currency and distributed ledger space.”

Have any stories you’d like to see recapped in our weekly industry series? Tell us below!


 

Images courtesy of bitmate.net & digitalcurrencycouncil.com

The post Industry Report: Bitcoin Error Makes Miner Rich, DCG Grows Empire appeared first on Bitcoinist.net.

Industry Report: Bitcoin Error Makes Miner Rich, DCG Grows Empire

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Úno 01

Bitcoinist Weekly News Re-Hash: Bitcoin Mining Milestone, DCG to go Public?

Source: bitcoin

news

This week, we saw an overall decline in the bitcoin price, as it fell from $398.78 at the beginning of the week to $373.55 at Sunday’s close. This week’s bearish activity was characterized by relatively flat activity, punctuated by sudden price drops that the market seemed to be unable to fully recover from. Meanwhile, in the news, we learned of new Bitcoin network milestones, regulatory efforts and investments. 

Also read: Gamerholic, the Next ‘Billion Dollar Gaming Company’? A Q&A with Anari Sengbe

Daily Bitcoin Price Action

January 25: $398.78

January 26: $391.04

January 27: $393.75

January 28: $379.37

January 29: $370.39

January 30: $377.75

January 31 Open: $377.74

January 31 Close: $373.55

Total Change: -6.33%

Weekly News Roundup

 

The week kicked off on January 25, 2016 with the bitcoin price at $398.78, staying within the loose upper $390s trend established last week. The price hit $400 in the early morning hours, but quickly dipped back down into the $390s. By the early afternoon, the price had fallen again into the low $390s, briefly entering $380s territory. Activity slowed down in the afternoon, with the price leveling out in the low $390s, where it stayed for the rest of the day.

In the news, we reported on a milestone in the Bitcoin network. For the first time in the history of the network, the hash rate exceeded 1 Exa Hash per second. The achievement of this milestone means that the bitcoin network has become approximately 300,000 times more powerful than the world’s fastest supercomputer, and over 43,000 times faster than the top 500 supercomputers combined. To drive home the significance of this milestone even further: the bitcoin network at one Exa Hash per second could be capable of running a neural net AI that is approximately 100 times more powerful than the human brain.

Tuesday began at $391.04, about $7 below the opening price on Monday. The $390s range held firmly throughout the entire day. The only divergence from this trend was a brief drop to $386.2 during the 6 PM hour. The price quickly recovered, though, returning to the $390s range to end the day.

Meanwhile, in the news, we reported on a development from Belgium regarding Bitcoin money laundering. According to Belgian newspaper De Morgen, the Belgian government has started working on plans to target money laundering facilitated by Bitcoin.

Wednesday the 27th opened at $393.75, a slight gain over the start of the previous day. For the most part, market activity on the 27th was extremely calm. Between the start of the day and 8 PM, there was hardly any movement in the price, with the candlesticks forming an almost perfectly straight line. However, at 9 PM, the bitcoin price suddenly plunged, falling into the low $380s. During the last hours of the night, the price struggled to remain above the $380 level, falling to $379 several times.

On the 27th, we reported on a new investment make by Japanese bitcoin exchange Bitflyer. The company invested in a blockchain-based Internet of Things program called “Sivira.” This project aims to “conjoin your favorite apps, automate actions, and keep information on the blockchain.”

Thursday started at $379.37, significantly lower than the prices we got used to seeing in the preceding days. The morning of the 28th saw a small climb into the low $380s, after which the markets kept the bitcoin price fairly flat for most of the day. At 7 PM, though, the previous day’s last minute plunge repeated itself, and the price fell into the high $360s range. The bitcoin price just barely made it out of the $360s before the end of the day, reaching $370 right at midnight.

In the news, Bitcoinist published an interview with the COO of the OpenBazaar project, Sam Patterson. Our writer Tyson O’Ham sat down with Patterson and discussed several things regarding the OpenBazaar project, including the upcoming beta release.

Friday, January 29 began with the bitcoin price at $370.39, just narrowly escaping the $360s after the previous night’s sudden selloff. The price climbed steadily in the early morning hours, reaching the low $380s. The growth halted at 7 AM, though, and the price slid downwards until the early evening, sinking to the mid-$370s. At 5 PM, the price jumped to $380, and the markets spent the rest of the day struggling to settle on $379 or $380.

Saturday opened at $377.75, an almost $8 gain over the start of the previous day. Aside from some small fluctuations, market activity on Saturday was fairly quiet. The price floated around in the mid-$370s throughout the day, with some spikes into the high-$370s and dips into the low-$370s.

In the news, we reported on rumors of the Digital Currency Group going public at some point, amid investment activity involving DCG in India. At this point, nothing has been confirmed, but our report says that DCG leader Barry Silbert has hinted that the company will likely go public at some point in the future.

Sunday, January 31 began with the bitcoin price at $377.74, virtually no change over the start of the 30th. Sunday was a repeat of Wednesday and Thursday; the price was extremely flat for most of the day, and then the markets suddenly took a dive in the early evening. at 6 PM, after hovering in the mid-to-high $370s for the entire day, the bitcoin price fell into the upper $360s, briefly touching $364.4. The markets attempted a slight recovery in the late night hours, climbing out of the $360s and returning to the low-$370s to end the night. Sunday concluded with the bitcoin price at $373.55, making for an overall decline of 6.33%.

What do you think will happen in the Bitcoin community in the coming week? Let us know in the comments below!

The post Bitcoinist Weekly News Re-Hash: Bitcoin Mining Milestone, DCG to go Public? appeared first on Bitcoinist.net.

Bitcoinist Weekly News Re-Hash: Bitcoin Mining Milestone, DCG to go Public?

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Led 30

Digital Currency Group Hints At Going Public In The Future

Source: bitcoin

Bitcoinist_Digital Currency Group

Barry Silbert and Digital Currency Group are two names many Bitcoin enthusiasts will be more than familiar with. It should come as no surprise to find out that DCG is keeping a close eye on the progress of Bitcoin and blockchain technology in India, which is one of the world’s leading emerging markets. Unocoin is one of the leading Bitcoin in India, and DCG has invested in this company, among others.

Also read: First Global Credit: Encouraging Bitcoiners to Become Traders

Digital Currency Group Makes Strategic Investments

The country of India provides an interesting playing ground for Bitcoin, blockchain technology, and digital currency in general. With a large part of the population cut off from traditional finance, and a growing interest in mobile commerce solutions, a disruption of the financial sector seems to be long overdue.

But it is not just India that is of interest to Barry Silbert and Digital Currency Group, as the company has made multiple strategic investments. In doing so, DCG wants to make Bitcoin more accessible to everyday consumers, both for buying and selling. By investing in various local leading Bitcoin exchanges in developing markets, the popular digital currency can thrive in the years to come.

In total, Digital Currency Group has their fingers in no less than 15 exchanges all over the world. These strategic investments cover a total of 40 currency trading pairs, which give DCG a global appeal in return. Providing liquidity to the Bitcoin industry is key, especially for smaller exchanges operating in countries where Bitcoin adoption has not gained any noteworthy levels just yet.

Many people see Digital Currency Group as a collective focusing mostly on the blockchain and how this technology can affect the everyday lives of consumers all over the world.  While Silbert told IBTimes how the company is still keen on blockchain technology in general, but people should be equally excited about Bitcoin itself.

One of the main reasons why Digital Currency Group has so much money to go around is because they are not a fund. Instead, the business plan is to allow for redeployment of capital, rather than returning capital to partners. By holding permanent capital and having the option to invest in and buy up interesting companies, Digital Currency Group has made quite the name for itself over the years.

Taking The Company Public In The Future

One of the more interesting remarks made by Barry Silbert is how there are plans to take Digital Currency Group public in the near future. No official details have been announced just yet, other than saying how going public is a path the company will likely go down. This would bring even more legitimacy to both Bitcoin and the blockchain.

If Digital Currency Group is serious about going public, they will be following in the footsteps of Bitcoin Shop, Inc. and Bitcoin Group. Both of these companies have made their way to mainstream exchange platforms in 2015, and Digital Currency Group would be a welcome addition to that brief list.

What are your thoughts on Digital Currency Group in general? Let us know in the comments below!

Source; IB Times

Images courtesy of Barry Silbert, DCG, Shutterstock

The post Digital Currency Group Hints At Going Public In The Future appeared first on Bitcoinist.net.

Digital Currency Group Hints At Going Public In The Future

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