Original author: Tanaya Macheel
Coin News
Original author: Pete Rizzo
Original author: Dan Palmer
Bitreserve will be opening its new bank-like wallet and payments platform to some beta users next week.The brainchild of Halsey Minor, who also founded CNET, Bitreserve is a low-cost bitcoin and fiat currency payments platform, aimed at consumers, where holdings in bitcoin can easily be exchanged and held in one of several fiat currencies.The service will allow fiat-to-fiat transfers at zero cost between individual members, and a forthcoming API is expected to be integrated with payment processors.To boost user confidence, Minor says transparency has been made a priority, with professional audits, for example, and a tool that will allow users to construct an exact balance sheet for the company at any point in time.So we could see just how Bitreserve works, and whether it lives up to the promises, CoinDesk got a log-in to test out the system.Bitcoin in, bitcoin outMinor got the ball rolling by sending me £10. He did this by converting some US dollars held in his Bitreserve account to pounds sterling and then sending it to my email address.In my inbox, I received a message with the welcome subject header: ‘You’ve received £10.00!’. Within the email contents I found a link via which I could ‘claim’ the funds. Clicking this took me to the Bitreserve website to create an account.What makes Bitreserve different from existing web wallet services is that it has no contact with the banking system.As Minor says, it’s “bitcoin in and bitcoin out”, meaning a user can only fund their own Bitreserve account by depositing bitcoin. In other words, any new money introduced to the system must enter as bitcoin.Sidestepping volatilityBitreserve’s tagline is ‘the end of bitcoin volatility’. That’s a bold claim.The way it intends to achieve this is by allowing users to convert their bitcoin into any of five major currencies: US dollars, pounds sterling, euros, Chinese yuan and Japanese yen; with each currency being depicted as a ‘card’.A user can simply click a currency card and transfer the desired amount to another currency. Each transfer is charged at 0.75%, Minor said. This compares favourably to fees of 4.75% for an overseas cash withdrawal and 2.75% for an overseas purchase with a debit card from NatWest, the UK’s largest retail bank, for example.With transfers between currency cards, the idea is that users can hold their bitcoin in a Bitreserve account, secure in the knowledge that the money won’t disappear, while also being able to cheaply access the funds in a variety of fiat currencies.Big and boldMembers can send funds to one another at no charge, although, as mentioned above, commissions apply for transactions involving fiat currency conversions.Like its tagline, Bitreserve’s user interface is big, bold and colourful. It’s also easy to use. Features like transferring and sending funds are clearly marked and can be executed within three clicks from the home page.Each card also contains a list of all its transactions, with a drop-down menu allowing you to view each transaction on the public block chain.For example, I sent 0.001 BTC (hey, journos aren’t rolling in it) from my account to a CoinDesk colleague’s Bitreserve account and could soon see the record on the block chain.Bitcoin rates on Bitreserve are taken from Bitstamp. Product Manager Byrne Reese explained that when a user transfers bitcoin to fiat, the block chain transaction will show the funds being moved to the exchange. The bitcoin is then sold and the fiat is moved into the reserve.Testing out Bitreserve has been a largely frustration-free experience, with the service appearing to work without a hitch. It will be open to a number of users who signed up for its beta release sometime next week, Minor said.Reese said that the platform would be open to public access by year’s end, adding that planned updates to the system include changes to the registration process for collection of KYC information.Plan for partnershipsBitreserve has side-stepped the potentially difficult part of building a bitcoin business because its ‘bitcoin in, bitcoin out’ model means it doesn’t have to deal with banks. This is unlike end-to-end services such as Coinbase or BitPay, which offer links to bank accounts.Instead, Bitreserve is offering a complementary service that Minor hopes will be integrated with the likes of Coinbase, via a soon-to-be-released API, for customers who are more interested in spending their coins than hoarding them.Minor says Bitreserve will act as a “classic reserve”, meaning depositors can park their funds knowing that they aren’t somehow being synthesised into collateral debt obligations, for example.How will this achieved? Bitreserve will make available “the definitive record” of its obligations to customers in a ledger it calls the “reservechain”. Minor says this will allow users to construct a balance sheet for Bitreserve in realtime, a kind of proof of reserves test that customers can conduct themselves.The other thing Bitreserve will do is publish quarterly audits, carried out by a Big Four accountancy, so that customers will know that the funds in the reservechain actually exist.Transparency may be keyThe two transparency processes that Bitreserve promises to implement mean that customers will also be able to vote with their funds on one of the main ways the company hopes to make money: by investing reserves.As Minor told us a recent CoinDesk interview, Bitreserve’s investment decisions will be public, so customers can pull their funds if they’re not happy.Minor makes lots of bold claims for his new company. If he can pull it off, a platform like this could encourage greater cryptocurrency adoption by blackboxing the potentially confusing aspects of bitcoin transactions, leaving consumers with a simplified interface.However, just as Bitreserve hopes to work alongside vertically integrated platforms like Coinbase, it could just as easily face stiff competition from would-be partners who could implement similar exchange features.Additionally, with protocols like Ripple fighting for traction, for example, multi-currency accounts are already available, and competing startups like Circle are surely working to make sure their services are as unintimidating as possible to attract the largest number of users.It’s Bitreserve’s plans for radical transparency that might give it an edge, but those are precisely the sort of plans that are so difficult to execute.auditsBitreserveexchangesHalsey MinorpaymentstransparencyOriginal author: Joon Ian Wong
US congressman Jared Polis rose to prominence among digital currency enthusiasts earlier this year when he issued a satirical response to calls from lawmakers seeking to ban bitcoin, a move that was widely acclaimed by those in the community fed up with uninformed policies from Washington.The March letter, in which he argued that the US dollar, not bitcoin, should be banned, also served to vault Polis into the position of ‘thought leader’ and ‘unofficial spokesperson’ for the digital currency industry. Now, in a new interview with CoinDesk, Polis suggests it’s a mantle that he’s happy to embrace both now and if he is elected to another two-year term in office this November.Speaking to CoinDesk, Polis suggested that he will use his powers in Congress to fight against any attempts by the government to enact policies that restrict the growth of bitcoin and its burgeoning startup community, stating:“If there was an agency that reacted in an irrationally negative way to digital currencies, I would be happy to rally support [in Congress] to restrict their funding.”Polis indicated that though Congress is governed by executive branch, the US legislature can help shape policies through its control of the funds provided to federal agencies and by exerting regulatory pressure where needed.Still, while Polis sought to make known his commitment to the digital currency space, he was also keen to illustrate that he is not simply embracing the latest trend to raise funding and garner new support.Rather, Polis framed his bitcoin interest as part of a lifelong interest in technology and the Internet, one that has now extended to include the wider digital currency movement, even if, at present, he still uses a credit card for online transactions.Lifelong passionA graduate of Princeton University, the 39-year-old former political science major said he has been actively interest in the Internet since its early incarnations in bulletin board system (BBS) and Usenet, a distributed Internet discussion system. Furthermore, it was in college that Polis co-founded his first company, American Information Systems, an internet access, web hosting and application service provider, though this was far from the last of his online endeavors.Polis continued to chase these interests in his post-collegiate life, co-founding Colorado-based startup accelerator Techstars in 2006.The program, which provides $118,000 in funding to its startups, also has notable mentors with connections to the digital currency community. This includes Union Square Ventures partner and digital currency investor Fred Wilson and Ben Huh, CEO of I Can Has Cheezburger?, a blog founded by dogecoin activist and community member Eric Nakagawa.Given this exposure to the tech ecosystem, Polis indicates that he was immediately intrigued by the concept of a distributed Internet currency free from government oversight, stating:“I certainly [had] heard about online currencies and bitcoin for a long time, and I think my initial thought was, it’s about time.”Campaign successPolis once again found himself at the forefront of digital currency discussion in May, when the US Federal Election Commission (FEC) ruled that bitcoin could be accepted by political campaigns and political action groups, with some limitations.Polis had been preparing his website polisforcongress.com for the news, and a result was among the first to begin accepting bitcoin, raising $1,500 in the first weeks of the initiative. Today, Polis said his campaign has passed the $2,000 mark in total.Polis suggests the move has also been popular with his local constituency in Boulder and Colorado’s 2nd District, whom he represents in Congress, adding:“The constituency I represent in boulder is very forward-thinking.”A voice in CongressTo date, Polis says that he has been “pleasantly surprised” by the reaction of US regulators to digital currencies, citing the fact that the technology has been acknowledged by Federal Reserve chairwoman Janet Yellen.Polis also suggested that members of Congress are beginning to become curious as to the continued appeal of bitcoin.“I’ve had several members of the floor of the [House of Representatives] ask ‘What are bitcoins?’, ‘What is this?’,” Polis said. “So, i’ve had the opportunity to explain to them a bit more about digital currencies.”Still, his optimism only extends so far, as Polis suggests governments may not be permissive should the US of digital currency continue to grow.He added: “I fully expect to be unpleasantly surprised at some point.”Governments will fight backDespite the gains digital currencies are making with politicians around the world, Polis says that he fully expects more negative reactions as awareness of digital currencies grows.This backlash, Polis believes, will be visible even in jurisdictions that have formerly been more supportive of bitcoin:“We haven’t seen the full backlash yet, in part, because bitcoins aren’t fully mainstream. But, as they become more and more mainstream, inevitably, they are in some ways usurping the prerogative of nation states, and I fully expect to see more pushback from countries including [the US].”Despite this threat, however, Polis indicated that he will do his part to keep the US digital currency ecosystem informed while he remains in office.Polis concluded: “I’ll keep my eye on these things, and if i see issues and problems we’ll try to bring them to the attention of the bitcoin community”.CongressJared Polispolitical donationsregulationUSAOriginal author: Pete Rizzo
Pete H. Diamandis (centre)The XPRIZE Foundation has been around since 1995, with the stated goal of promoting emerging technologies through public competitions and initiatives.The foundation’s board of trustees includes big names like PayPal co-founder Elon Musk, President of the Huffington Post Media Group Arianna Huffington, and Google co-founder Larry Page.Changing the way we think of moneyDiamandis explained the basic properties of bitcoin and made a bold claim: he believes bitcoin will do for money what email did for communications.He said:“At its core, bitcoin is a smart currency, designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions… all good things. Most importantly, it is an ‘exponential currency’ that will change the way we think about money. Much the same way email changed the way we thought of mail.”Diamandis further pointed out that bitcoin is following ‘the six Ds’ – it is digitised, deceptive, disruptive, dematerialising, demonetising and democratising. Currently, he believes bitcoin is currently in the process of entering the disruptive phase.Five phases of adoptionDiamandis borrowed from Second Market founder Barry Silbert when explaining the various phases of digital currency development.Phase 1 was the deceptive, experimental phase, from 2009 to 2011. Phase 2, starting in 2011, marks the beginning of the early adopter phase. Phase 3, 2012 through mid-2014, is described as the beginning of the venture capital phase.Diamandis says we are in the middle of Phase 3:“We are right in the middle of Phase 3 right now. Thousands of bitcoin companies are getting funding. Many of these are trying to create the ‘User-Interface Moment’.Next, between fall 2014 and 2015, Diamandis expects to see the start of Phase 4, described as the Wall Street Phase, which will be marked by “institutional money acknowledging digital currencies as an asset class”.Phase 5 is mass global consumer adoption, which Diamandis and Silbert believe is just one to two years away.Call for experimentationDiamandis believes people need to get out there and start experimenting with bitcoin.“Learn, do, teach… Go experiment! Create a bitcoin wallet and buy some bitcoin. There is no better way to learn than by doing,” he concluded.Slightly confusingly, in his post, he mistakenly names Coinbase and BitPay as bitcoin exchanges and places where people can buy bitcoins.Diamandis concluded by mentioning his plans to discuss the digital currency in more detail via his Abundance 360 Community, which describes itself as “a group of entrepreneurs passionate about generating extraordinary wealth while creating a world of abundance”.Images via Diamandis.comPeter DiamandisXPRIZEOriginal author: Nermin Hajdarbegovic
Original author: Tanaya Macheel
The summer of 2014 is really heating up in the alternative cryptocurrency world. What will the next few months bring for altcoins? We can all agree that, well, nobody is certain.To get a perspective on the possible road ahead, All Things Alt caught up with Max Keiser, host of The Keiser Report, guru for maxcoin, and one of the leading voices behind StartCOIN, a new altcoin-powered crowdfunding initiative.Read on to see what Keiser had to say about alt investment, maxcoin and the inherent political nature of digital currencies.
The case for altcoinsKeiser suggested that altcoins are a great way for investors to diversify their digital currency performance. He said that he maintains “a diversified portfolio of coins, with bitcoin being the biggest portion”, adding that he believes “alts offer a great way to have exposure to different segments”.He explained:“Altcoins offer ways to gain exposure to different segments of the crypto-universe. Darkcoin is a brilliant coin that addresses a real need. As I said before, the market as a whole is set for 100x growth so there is plenty of upside.”When asked whether or not it is ethical to promote altcoin investment, as large price swings can lead to losses, Keiser offered, “I’m like Warren Buffet. I talk about the coins I myself own including maxcoin”.The future of maxcoin
Some critics have said that Keiser abandoned maxcoin, leaving its reputation – and price – up to the whims of market movers.Keiser conceded that the development team was “overwhelmed at the launch”. However, he rejected the idea that the project was a failure and said that things are still going on behind the scenes that could produce some positive results if successful.He elaborated:“In the case of maxcoin, this was a coin that was started by students at Bristol University who I don’t think were prepared for the huge interest they got but I supported them and continue to do so because they’re very talented and we’re still very early in the game.”Keiser added that he thinks “we’ll see a return to the old highs before the end of the year” and that “it’s probably a good buy at these levels”.Bitcoin still the kingOn the other hand, Keiser believes that while altcoins have a role to play, ultimately it is bitcoin that will remain the top digital currency.He remarked:“Let me be clear. Everybody should have, as their core holding, some bitcoin. Bitcoin is here to stay and is set to top $400 billion. I agree with the Winklevoss twins on this.”Still, Keiser said that alts remain a significant part of the future of digital currency. He touched on the political ramifications of digital currencies, which ties into the concept of decentralization that is being realized in crowdfunding and eCommerce projects currently in development.Additionally, Keiser said that alts – along with bitcoin – will contribute to the broader, long-term shift away from fiat currencies in favor of digital currencies.He concluded:“As long as Amir [Taaki] and his followers are around, bitcoin and alt coins will be pushing the political envelope and God bless them. We need as much political disruption as can get these days.”Strange alt of the week
Last week, we look at several altcoins that celebrated the arrival of the FIFA World Cup. While those didn’t fall into the unusual category per-say, they were notable for the fact that they existed largely to promote a temporary event.Perhaps these belong to a class of coins unironically dubbed ‘commemorative coins’, but all the same, it’s possible that we might see more coins of a similar nature as important events develop. An upcoming coin release suggests this may be so, as cantorcoin, an alt that seemingly celebrates the momentous (and in many books historic) political loss of US Congressman and former House Majority Leader Eric Cantor in a primary election.With the slogan “Moderately Rare – Conservatively Secure”, cantorcoin has earned this week’s Strange Alt of the Week award.Notably, cantorcoin’s max supply count is 100,614 coins. According to a development statement posted on CryptoCoinsTable.com, this number is meant to represent the “the 10th day of the 6th month of the year 2014”, or 10th June of this year. This is the same day as the Republican primary that cost Eric Cantor his seat in the next Congress, later all but forcing him to resign his leadership post.As well, the developer states that there is no premine. They estimated that the total amount of cantor coins will go quickly and become “a collectible coin”, saying that any available coins will “disappear quicker that water drops on Route 66”.Images via BitcoinTalk, MaxKeiser.comHave a tip about a notable happening in the altcoin world? Email CoinDesk at [email protected]Disclaimer: This article should not be viewed as an endorsement. Please do your own extensive research before you consider investing in the altcoin space.All Things AltaltcoinsMax KeisermaxcoinTaaki Amir
The case for altcoinsKeiser suggested that altcoins are a great way for investors to diversify their digital currency performance. He said that he maintains “a diversified portfolio of coins, with bitcoin being the biggest portion”, adding that he believes “alts offer a great way to have exposure to different segments”.He explained:“Altcoins offer ways to gain exposure to different segments of the crypto-universe. Darkcoin is a brilliant coin that addresses a real need. As I said before, the market as a whole is set for 100x growth so there is plenty of upside.”When asked whether or not it is ethical to promote altcoin investment, as large price swings can lead to losses, Keiser offered, “I’m like Warren Buffet. I talk about the coins I myself own including maxcoin”.The future of maxcoin
Some critics have said that Keiser abandoned maxcoin, leaving its reputation – and price – up to the whims of market movers.Keiser conceded that the development team was “overwhelmed at the launch”. However, he rejected the idea that the project was a failure and said that things are still going on behind the scenes that could produce some positive results if successful.He elaborated:“In the case of maxcoin, this was a coin that was started by students at Bristol University who I don’t think were prepared for the huge interest they got but I supported them and continue to do so because they’re very talented and we’re still very early in the game.”Keiser added that he thinks “we’ll see a return to the old highs before the end of the year” and that “it’s probably a good buy at these levels”.Bitcoin still the kingOn the other hand, Keiser believes that while altcoins have a role to play, ultimately it is bitcoin that will remain the top digital currency.He remarked:“Let me be clear. Everybody should have, as their core holding, some bitcoin. Bitcoin is here to stay and is set to top $400 billion. I agree with the Winklevoss twins on this.”Still, Keiser said that alts remain a significant part of the future of digital currency. He touched on the political ramifications of digital currencies, which ties into the concept of decentralization that is being realized in crowdfunding and eCommerce projects currently in development.Additionally, Keiser said that alts – along with bitcoin – will contribute to the broader, long-term shift away from fiat currencies in favor of digital currencies.He concluded:“As long as Amir [Taaki] and his followers are around, bitcoin and alt coins will be pushing the political envelope and God bless them. We need as much political disruption as can get these days.”Strange alt of the week
Last week, we look at several altcoins that celebrated the arrival of the FIFA World Cup. While those didn’t fall into the unusual category per-say, they were notable for the fact that they existed largely to promote a temporary event.Perhaps these belong to a class of coins unironically dubbed ‘commemorative coins’, but all the same, it’s possible that we might see more coins of a similar nature as important events develop. An upcoming coin release suggests this may be so, as cantorcoin, an alt that seemingly celebrates the momentous (and in many books historic) political loss of US Congressman and former House Majority Leader Eric Cantor in a primary election.With the slogan “Moderately Rare – Conservatively Secure”, cantorcoin has earned this week’s Strange Alt of the Week award.Notably, cantorcoin’s max supply count is 100,614 coins. According to a development statement posted on CryptoCoinsTable.com, this number is meant to represent the “the 10th day of the 6th month of the year 2014”, or 10th June of this year. This is the same day as the Republican primary that cost Eric Cantor his seat in the next Congress, later all but forcing him to resign his leadership post.As well, the developer states that there is no premine. They estimated that the total amount of cantor coins will go quickly and become “a collectible coin”, saying that any available coins will “disappear quicker that water drops on Route 66”.Images via BitcoinTalk, MaxKeiser.comHave a tip about a notable happening in the altcoin world? Email CoinDesk at [email protected]Disclaimer: This article should not be viewed as an endorsement. Please do your own extensive research before you consider investing in the altcoin space.All Things AltaltcoinsMax KeisermaxcoinTaaki AmirOriginal author: Stan Higgins