With MtGox effectively dead, Bitcoin can now enter the third stage of evolution, explains BitGo CEO Will O'Brien in an extensive essay. More »
Erik Voorhees, a respected Bitcoin entrepreneur who created SatoshiDice and now runs Coinapult, shares his views about MtGox and the future of Bitcoin. More »
Hollywood could learn a lot from Silk Road 2 about heightening stakes and creating suspense in this epic whodunnit thriller where 4000 bitcoins were stolen! More »
In this extensive video, Bitcoin Leah interviews Brock Pierce, Alan Meckler, Sam Cole, and companies including BitGo, GoCoin, Lamassu and more. More »
Former Roommates of Silk Road Owner: “Think of us like Walter, Jr.”
In a reference to hit show Breaking Bad, a former roommate of Silk Road’s owner Ross William Ulbricht compared himself to Walter, Jr., the son of main character Walter White who was oblivious to his father’s drug empire.
Ulbricht, or the Dread Pirate Roberts, as he was known to the Silk Road community, was arrested in San Francisco last week by federal authorities. Silk Road was a Bitcoin marketplace used primarily for buying and selling drugs and had generated more than $1.2 billion in transaction revenue over the last two years.
Read: The Party is Over. Silk Road Bitcoin Drug Marketplace Seized, Owner Arrested
It turns out that Ulbricht had spent the last few months before his arrest subletting an apartment from two other men in the Sunset District. He used a fake name, Josh, described himself as a currency trader, paid his rent in cash, and kept to himself on his computer most days.
Forbes published a detailed article about how Ulbricht met his former housemates and the surprise that ensued when they saw Ulbricht’s face on the front page of the newspaper the day he was arrested.
“He seemed like a normal guy,” said one roommate in an interview with Forbes. “Obviously he had a dark side, but he never showed any of that.”
“I don’t entirely understand what his motivation was,” said the other roommate. “He’s got all this money and he just sits in a not-particularly nice rental house in the Sunset [District] and just f***s around on the computer all day until he gets sent to prison.”
Read more about Ulbricht’s former housemates at Forbes.
Ulbricht is now being ordered to New York to face charges.
Adoption Increases as Bitcoin Seen As Alternative in India to Rupee
Comparing the Indian rupee and Bitcoin is an exercise of pitting one volatile currency against another in today’s currency climate.
The Indian rupee dropped to historic lows this summer ($68.80) on fears of the Fed tapering its bond-buying program. The rupee has slowly climbed back about 10% from that point and India is reportedly working on a program to boost the national currency.
Bitcoin, on the other hand, climbed to its historic high in April of this year ($266) before settling down around $100 to $140. Still volatile, the currency can jump 15% or more on news.
In light of these movements, an interesting trend has emerged in India: people are turning away from their own currency and toward Bitcoin.
The Wall Street Journal blog reported (with data from The Genesis Block) that Indian Bitcoin client software downloads increased 17.23% in the third quarter.
“Considering the volatility in developing market currencies like the rupee, it’s not surprising that people in India would be exploring alternatives,” said Greg Schvey, head of digital currency research for The Genesis Block and a former fixed income analyst at Citigroup. “Entrepreneurs have been quick to capitalize on bitcoin’s potential and are already setting up remittance companies, exchanges and conferences throughout the country. Bitcoin also offers near-free monetary transfer which could dramatically benefit India as the world’s largest remittance market.”
Related: Argentina Bitcoin Adoption Jumps
CC image by FriskoDude
Bitcoin: An Animated Short Explores Mining, Buying and Selling Bitcoins
We love seeing the different ways people try to educate others about Bitcoin.
In this animated documentary submitted to us by FilmTree Productions and Evan York Pictures, two cartoon Bitcoiners are interviewed about mining, what you can buy with Bitcoin, and what would happen if Visa or MasterCard embraced the alternative currency.
By the way, the mining efforts in this video are not yet profitable. They are pulling in about 2 BTC per week after buying 32 miners.
Bitcoin Week: Silk Road Seized, Coinvoice, Tradehill Auctions, More
Bitcoin News
Here is a roundup of the top Bitcoin news from September 30 to October 6.
The big news this last week was the takedown of drug marketplace Silk Road and arrest of its operater Ross William Ulbricht.
The price of Bitcoin crashed 15% but recovered as the dust settled on the Silk Road bust.
In other news, Tradehill has reinvented itself with auctions for Bitcoin mining equipment.
And a payment processor Coinvoice began accepting payments.
Tuesday, October 1
Wednesday, October 2
Friday, October 4
Saturday, October 5
No Big Deal; Bitcoin Price Recovers After Silk Road Bust
The Demise of Silk Road is Good for Bitcoin
This past week, notorious Bitcoin marketplace Silk Road was seized by federal authorities and its operator was arrested for running a massive drug marketplace that has generated $1.2 billion in illicit transaction value.
Immediately the price of Bitcoin dropped 20% and trading volume spiked on fears that this was a curtain call for Bitcoin. The underbelly of Silk Road was always rumored but nobody knew the magnitude of the operation was until the criminal complaint was filed against Ross William Ulbricht.
Link: Read our full coverage of the Silk Road bust
Chart courtesy of BitcoinCharts.com
But in a few days, the price of Bitcoin has nearly fully recovered as the dust has settled on that incredible story.
Ultimately, the demise of Silk Road is good for Bitcoin. It takes away one of the biggest targets and sources of negative stigma for the currency. With so much attention on Bitcoin, no one will be able to replicate the scale of Silk Road again, though some will undoubtedly try to fill the void.
With this marketplace out of the picture, the conversation on Bitcoin can turn to how the digital currency can be used to make markets more efficient and cash more programmable.
