Lifeboat Foundation

by Andy Greenberg

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Someone out there likes anonymous money.

In only a month, the little-known bitcoin alternative known as Darkcoin has rocketed nearly tenfold in value — from around 75 cents a coin (44p) to almost seven dollars (£4). Its selling point: Darkcoin offers far greater anonymity than bitcoin, mixing up users’ transactions so that it’s incredibly difficult to trace a payment to a person. And though few have yet to accept that more-anonymous coin for actual goods and services, the promise of Darkcoin’s privacy features seems to have sparked a miniature boom. It’s one of the fastest growing among the wave of cryptocurrencies that’s followed bitcoin’s success, with the total value of its combined coins topping out at nearly $30 million (£18 million).

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Andrea Chang — LA Times

Halsey Minor, founder of CNET and an early backer of Salesforce.com, is launching bitcoin platform Bitreserve.org.

The site aims to address the volatile nature of the cryptocurrency by providing real-time transparency, transaction traceability and proof of solvency.

“Bitcoin is a remarkable innovation, created and supported by lots of very smart people,” Minor said. “Bitreserve is built on top of the bitcoin network, allowing members to convert bitcoin into money they know, trust and understand.”

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By Paul Vigna and Michael J. Casey — The Wall Street Journal

When payment processor Bitpay announced the biggest-ever funding round for a bitcoin company earlier Tuesday it was was Richard Branson’s presence in the investment group that drew the most attention.

But while the Virgin Group chairman’s remarks about Bitpay leading a “currency revolution” were lapped up by bitcoin enthuisasts, we thought the comments from some of the lesser known investors were as, if not more, illuminating. They helped frame what might be called the emerging venture-capitalist vision for bitcoin: That its promise lies in disrupting an antiquated, inefficient and expensive global payments system more than as a revolutionary challenger to traditional currencies.

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Matt Rocheleau — Boston.com

Each of the 4,500-plus undergraduates at MIT will soon get $100 in bitcoin as part of a project launched by a pair of students who announced today that they’ve raised a half million dollars to fund the effort.

Organizers said they hope to establish “an ecosystem for digital currencies” at the Cambridge campus that will allow professors and researchers to study how students use bitcoin as well as to promote other academic and entrepreneurial activity around bitcoin.

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Cyrus Farivar — Ars Technica

For many crypto-minded libertarians, Bitcoin is the future of money. But that dream hasn’t been helped much by the numerous high-profile legal cases involving the currency in recent years: The Bitcoin Savings and Trust hedge fund collapsed; uncertainty fueled the implosion of Mt. Gox, the currency’s largest exchange; and the high-profile Silk Road takedown is a treacherous story combining Bitcoin, drugs, and alleged murders.

For now, though, one company sits above all others when it comes to cultivating a new level of direct customer mistrust in the Bitcoin community: Butterfly Labs.

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Jason Clenfield and Pavel Alpeyev — Bloomberg


In the five years since bitcoin was created, the hunt for them has consumed enough electricity to keep the Eiffel Tower lit for 260 years. One man’s way around the utility bills: the family power plant.

Alex Wilhelm is a bitcoin miner, one of thousands who use computers to solve complex math problems and get their hands on the digital currency. The expatriate living in Tokyo has 30 remote-controlled servers mining virtual gold in an old brick building in the Austrian countryside. His father is donating the electricity, which comes from a water-driven turbine that survived a World War II bombing raid and once powered the entire village of Tattendorf, where Wilhelm grew up.

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Zack Burgess — Crains Detroit Business


The next time you grab a sandwich, order a pizza or pay for IT services, you may not have to reach for your wallet. Instead, you could have the option of paying the bill with bitcoins.

Businesses including the Bronx Deli in Farmington, Dynamic Technologies in Livonia, Athena Coney Island in Novi and Papa Romano’s in Troy affirm the use of bitcoin currency. According to coinmap.org, a website that tracks the businesses using it, there are at least 10 in the area that accept bitcoin.

Bitcoin isn’t regulated as a currency or security, though federal regulators, most recently the Securities and Exchange Commission, have raised red flags about it. In March, the SEC sent an inquiry and data request to the currency’s creator, an elusive person or group known as Satoshi Nakamoto. Nakamoto doesn’t believe the SEC has any legal grounds.

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Mary Thompson — CNBC

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Jennifer Liberto — CNN Money


Bitcoin companies are hiring lobbyists, visiting lawmakers on Capitol Hill and writing to agencies about how they should write rules that will determine the future of the fast-growing virtual currency.

It’s all part of a push to shape how Washington ultimately regulates the independent, digital money that is growing in popularity.

“The most important thing we’re doing is explaining how Bitcoin works,” said Jim Harper, a lobbyist who was hired recently as counsel for the Bitcoin Foundation, an organization that represents Bitcoin companies and investors. Harper, who has lobbied for PayPal and VeriSign, is paid in bitcoin.

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