Archives for January 2015

Cointerra Inc. succumbs to legal battles, files for bankruptcy

Bitcoin mining company Cointerra Inc. has finally called it quits after facing long legal battles for the past couple of months.  In its filing under Chapter 7 of the US Bankruptcy Code last January 24, Saturday, Cointerra listed approximately $50 million worth of assets and debts. It can be remembered that the company quite had a successful stint in 2013 with about $1.5 million in investments. A huge chunk of the fund was intended to create a two-terahash-per-second ASIC Bitcoin miner which they called TerraMiner IV. Back then, the Bitcoin miner was priced at $13,999 and was set to be delivered in December 2013. Unfortunately, things didn’t go as initially planned. Over the months, the value of Bitcoin spiraled down to almost 70 percent, thus the digital currency went through a lot of scrutiny from lawmakers. Cointerra, for its part, failed to deliver what was originally expected by its clients who paid for the service. This of course resulted to legal complaints and dissatisfaction from people who had high hopes in the potential of their mining machine. Notably, all of these problems occurred despite the governance of their technical people who are experts in the field of Bitcoin mining.

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Everything You Need to Know About Bitcoin

I haven’t posted any videos lately but here’s a good one from our friends at Vice all about bitcoin.

Hopes on Virtual Currency are High as Bitcoin Startup Coinbase Closed a $75 Million Investment

Coinbase, one of the biggest Bitcoin providers in the world, recently announced the completion of a huge financing deal worth $75 million last Tuesday, January 20, 2015. This is so far the biggest known investment on a startup Bitcoin company up till now. The investment, led by venture capital firm DFJ Growth, was also participated by three industry investors, namely the New York Stock Exchange, USAA Bank, and multinational bank BBVA. The San Francisco-based startup company, which first reported the deal in November last year, revealed that the financing round was actually completed in the middle of December 2014. Total investments are even expected to reach $400 million or more with the support of other investors like Japanese telecom company NTT DoCoMo, Andreessen Horowitz, Union Square Ventures, and Ribbit Capital.

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What’s going wrong with Bitcoin?

Bitcoin is on a free fall right now. Can anybody catch it for God sake! Just when we thought Bitcoin is going to have a good year this 2015, it looks like there are a lot of issues now that need to be addressed as soon as possible.

Created by someone with the pseudonym Satoshi Nakamoto in 2008, Bitcoin was considered as one of the most promising currencies. More people around the world traded it for real money. It’s even thought to possibly make dollar obsolete. This is mainly due to the fact that it’s limited in supply, hard to earn, and easy to verify. Like gold, it’s not easy to acquire as it requires a lot of complex mathematical problems to be solved. The more “miners” are there to look for answers, the more the problems get difficult to solve. That’s how it is and that’s why there are a lot of businessmen who’ve invested on supercomputers. The first miner to answer the mathematical puzzle gets 25 bitcoins which is obviously going to be a lot of money. However, the drastic depreciation of Bitcoin’s value in the past few days is very alarming. In fact, it has dropped 36% of its value in the past two days only, from $269 in January 13 to $172 in January 15.

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Bitstamp’s losses reach $5.1 million as approximately 19,000 units went missing

Last January 5, 2015, news about a huge cryptocurrency hack broke down when Bitstamp‘s more than 19,000 units, worth about $5.1 million, went missing. This prompted the UK-based Bitcoin exchange to temporarily halt all services and user transactions like deposits and withdrawals. They assured their customers though that all bitcoins held before the incident are safe, because they are covered by insurance. This is a huge setback not just for the exchange, but for the Bitcoin community, in general, as it’s gone a long way of reviving the value of the virtual currency. Unlike cash stolen from banks that are largely untraceable, movement of bitcoins can be tracked. Every transaction made has a record created on the blockchain. Hopefully, this can shed some light on the whereabouts of the bitcoins and the perpetrators.

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BitPay’s Football Sponsorship Scored Bigtime

BitPay has become a full-fledged football sponsor last December 26, 2014 by staging its first ever St. Petersburg Bowl game between North Carolina State Wolfpacks and the University of Central Florida Knights. The game was a huge success for the world’s largest bitcoin payment service provider as it attracted around 3.3 million viewers. In fact, game coordinator Ashley Wheeler claimed there were over 100 vendors accepting bitcoin payments in the area throughout the game. This is definitely how BitPay envisioned the event would be when it first announced its sponsorship, along with ESPN Events, as early as June 2 this year. Wolfpacks beat the Knights, 34-27.

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