Bitcoin Turns 5 Today

The Washington Post gives an interesting timeline of the rise of Bitcoin. Bitcoin was launched 1-3-2009 by Satoshi Nakamoto.

Read More Here:

Five years of Bitcoin in one postThe world’s first fully decentralized cryptographic financial network, Bitcoin, launched five years ago today. The years since then have been a wild ride. The currency’s value has risen from nothing to billions of dollars, and millions have been invested in Bitcoin-related startups. Here’s a brief synopsis of Bitcoin’s most important milestones.

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What Bitcoin Crash?

In the wake of the new round of restrictions placed by China in early December, Bitcoin took a tumble, however it looks like it’s on a slow road to recovery. As  of today 12/30/13 it’s trading at $800 (MtGox).


That Giant Bitcoin Crash in the Wake of China Restrictions? It Never Happened.When news surfaced two weeks ago of a fresh round of restrictions China was placing on businesses transacting in the bitcoin ecosystem, the value of bitcoin plummeted. The CoinDesk Bitcoin Price Index, for example, showed that bitcoin traded as low as $422 around Dec.

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In 2013 $100 Investment in Bitcoin Equals $5,000

Forbes has an interesting chart showing the performance of a $100 investment in Bitcoin, Gold, Litecoin, Netflix, Twitter, etc. A $100 investment in Bitcoin in January would be worth $5,000 today.


How You Should Have Spent $100 In 2013 (Hint: Bitcoin)If you could get in a time travel machine and head back to the beginning of the year, you would best do so with Bitcoin on the brain. We took a look at how the major tech stocks performed this year in comparison with digital currencies, and for comparison’s sake, threw in gold and the best of the staples, cocoa (thanks to chocolate eaters in Asia).

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via Forbes

Bitcoin at eBay and Amazon with SnapCard

Just in time for the Holidays, you can use SnapCard to purchase on amazon and eBay. There is a 2% fee for the service. Read more here:


SnapCard Lets Bitcoin Users ‘Skip Merchants’Online startup snapCard wants to make it easier to use bitcoins online by skipping merchant integration altogether. SnapCard users can purchase items from major retailers, even if their e-commerce platform doesn’t accept bitcoin. Users can also avoid logging into a retailer’s website.

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Bitcoin Targets $1000



Bitcoin is Heading Toward a New High – and It Could Go to $1 MillionThe value of the electronic currency Bitcoin is creeping back toward $1,000 again. People keep describing this price behavior as “crazy” and “insane,” but it’s actually not that surprising. Earlier this spring, when Bitcoin was trading at about $90, I “raised my Bitcoin target” to $400.

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via Yahoo

Why do bitcoin exchanges quote different prices?

I found this Washington Post Blog post dated 11-24-13, which tries to answer this question.

Quoting Michael Frank of the Washington Post:
“That price difference persists because it is extremely difficult to actually do the arbitrage, since Mt. Gox’s banking relationships in the U.S. were terminated by the Feds, so it’s difficult to get US dollars out of Gox and into the US. To do this you would probably have to shuttle the funds around through Japanese banks and/or by way of other intermediate currencies. This process is expensive (the banks will take a cut at each step) and so that’s why the price difference persists.”

Money and Legal issues abound
In 2013 the United States Federal government seized $5 million dollars from Mt. Gox and they are in the middle of $75 million lawsuit with a former partner. All of this has made it rather difficult for U.S. users to get their funds out of Mt. Gox. You can read more about MT Gox’s financial woes here. I highly recommend you read the entire article about Mt. Gox before you invest any of your U. S. dollars in that exchange.

A few excerpts from the Wired Article:
Mark Karpeles, the CEO of Mt. Gox gave an interview to Reuters in April 2103 sitting on a blue exercise ball, which did not spark a lot of confidence.

“The CEO of the most important business in bitcoin sitting on top of a bouncy ball talking about world-changing ideas, says Roger Ver, an early bitcoin investor who knows Karpeles well and considers him a friend.” You can see the Youtube video here.

“Prices on Mt. Gox are higher than they are on other exchanges — a reflection of the difficulties customers have withdrawing their funds.”

“Dan Held, the founder of bitcoin market data company, Zero Block, has less sympathy for Mt. Gox. He points out that the US government warned businesses like Mt. Gox that they’d need to register as money services businesses in March of this year. But Mt. Gox didn’t do this until months later — after the feds has seized its bank accounts.” “A lot of it, I think, is incompetence,” he says.

“They just think Mt. Gox is the biggest and the best, and they don’t know…”

I’d consider this a must read if your are thinking about investing your money at Mt Gox.

You can also read first hand from disgruntled MT. Gox users. This is a long forum thread from actual users.

Bottom Line, buyer beware!

Bitcoin Explosion in Three Charts

The Bitcoin Explosion in three charts.

  1. A spike in Google searches for Bitcoin on Tuesday (Post the Senate hearings)
  2. Bitcoin Searches peaked in November
  3. Interest in Bitcoin vs. Gold via search
Bitcoin mania in three chartsThe Internet just can’t get enough of bitcoin. That much was apparent this week, which kicked off with two Senate hearings on virtual currencies. While the hearings included many questions about bitcoin’s potential for criminal activity, the Treasury Department’s Jennifer Shasky Calvery noted that cash is still the best way to launder money.

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