Category: crypto

Bitcoin Magazine, the leading
publication focusing on Bitcoin technology, has been acquired by Coin
Publishing LLC, a group of individuals well-known within the Bitcoin community
and committed to the success of Bitcoin. Coin Publishing LLC, based in Florida,
has taken over all operations of Bitcoin Magazine, purchasing the assets and
contracts from Bittalk Media Ltd for an undisclosed amount in cash and bitcoins.

The collective ownership of Coin
Publishing LLC includes individuals from BitPay, Butterfly Labs, Google,
Casascius, 20 Mission, and Virtual Processing Solutions. Mihai Alisie has been
appointed as Editor in Chief on a 12-month contract, and Vitalik Buterin will
serve as Lead Writer and Webmaster, also on a 12-month contract. The existing
creative team that has been responsible for the first five issues of Bitcoin
Magazine will continue to contribute to the publication, while additional
writers will join the team as it expands in 2013.

Coin Publishing LLC has plans to
launch a new website as the interactive portal for Bitcoin Magazine, providing
an enhanced user experience. The team is also working towards releasing a
digital download version of previous issues. Issue 5 is currently available for
sale on the existing website, along with discounted bundles of all back issues.

To improve customer support,
Bitcoin Magazine has implemented a new support ticketing system. Customers can
now reach customer support at support@bitcoinmagazine.com, which will
automatically generate a support ticket for efficient assistance.

The distribution contract with
Barnes & Noble will remain uninterrupted, with the distributor also based
in Florida, facilitating smoother collaboration. Coin Publishing LLC aims to
expand distribution into Europe and Asia/Australia in early 2013, further extending
the reach of Bitcoin Magazine.

With the acquisition by Coin
Publishing LLC and the new team members, Bitcoin Magazine is poised for growth
and continued success as the go-to source for Bitcoin-related news and
information.

BitFloor and Bitcoinica, the two
largest victims of digital theft in Bitcoin history, are making strides in
repaying their clients. A court filing made by Tihan Seale in August to place
Bitcoinica into receivership for liquidation was finally reviewed by a judge on
October 31. Anthony John McCullagh and Stephen Mark Lawrence were appointed as
liquidators. Subsequently, the liquidators reached out to creditors via email
and the Bitcointalk forums, requesting their address and contact details.
Meanwhile, BitFloor recently announced that it will refund 1.7% of its users’
lost funds, with further refunds planned as the exchange’s business grows.

In 2012, Pirate, Bitcoinica, and
BitFloor experienced significant mishaps within the Bitcoin world. Bitcoinica,
a margin trading platform launched by Zhou Tong in September, initially thrived
and became one of the largest exchanges after MtGox. However, a series of hacks
in the spring tarnished its reputation. The first hack in March resulted in
over $220,000 worth of BTC being stolen from Bitcoinica’s servers. Despite
receiving additional funding from investors, Bitcoinica faced another $90,000
hack two months later, leading to the deletion of its user balance database and
subsequent shutdown. The claims process was slow and complicated, with the team
sifting through evidence to distinguish legitimate claims from fraudulent ones.
Only a small portion of claims were paid out before the process stalled, and
the claims fund was even hacked due to poor security practices.

In the case of BitFloor, the
incident was less severe. In early September, a thief discovered an unencrypted
backup of the service’s wallet on the server, which had been accidentally left
there during a manual software upgrade. The thief made off with $250,000.
Founder Roman Shtylman managed to keep BitFloor operational by freezing the
Bitcoin balances of depositors at the time. The plan was to restore BitFloor’s
operations and generate enough profit to reimburse depositors.

These events severely shook the
confidence of the Bitcoin community. By September, many individuals had given
up hope of recovering their funds from these exchanges, especially Bitcoinica.
However, the appointment of legal liquidators for Bitcoinica brings a glimmer
of hope that depositors may eventually receive a significant portion of their
funds back. Due to the third theft in July, the compensation will not be 100%,
and anonymous Bitcoinica users will only receive a refund if they provide their
legal name and address to the liquidators. The estimated payout currently
stands at around 60-70%. Bitcoinica creditors, as well as non-creditors, are
advised to provide truthful information to the liquidators, as submitting false
claims could have legal repercussions.

A noteworthy aspect of this
chapter in Bitcoinica’s story is the recognition of Bitcoin as a legitimate
form of digital property. The liquidators’ post mentioned the possibility of
distributing funds either in the form of Bitcoins or as cash, marking the first
time a formal legal process has acknowledged and handled Bitcoins. This
development may help alleviate legal uncertainties surrounding Bitcoin
businesses and boost confidence among those working with the cryptocurrency.

The Bitcoin community has learned
valuable lessons from these unfortunate events and has taken steps to improve
security and focus on strengthening the underlying economy. Financial service
providers have implemented stronger security measures, such as two and
three-factor authentication and offline cold storage for client funds. The
community has also shifted its focus to fostering a resilient economy. If the
liquidation of Bitcoinica and the recovery of BitFloor continue positively,
these incidents could serve as a turning point toward a brighter future for the
Bitcoin community.

WalletBit, a rapidly emerging
merchant platform positioning itself as a mainstream alternative to BitPay, has
announced a new feature for European merchants: payment by bank deposit. This
feature allows participating merchants to accept Bitcoin without handling the
digital currency themselves. Instead, their earnings will be instantly
converted to local currency and regularly deposited into their bank accounts.

While similar services have been
offered by BitPay since its establishment in 2011, WalletBit aims to stand out
with several advantages. One notable advantage is lower fees. BitPay has
consistently charged a transaction fee of 0.99% for merchants who prefer to
receive their earnings in bitcoins. In contrast, WalletBit has recently reduced
its fees to 0.89%. In the United States, WalletBit’s fee of 2.75% is slightly
higher than BitPay’s 2.69%, but for European merchants, while BitPay’s
commission increases to 3.99%, WalletBit’s rates remain the same.

Another advantage is WalletBit’s
international reach. While BitPay’s European bank deposit service is limited to
Germany, France, Spain, Italy, Finland, and the Netherlands, WalletBit will
enable merchants to receive Euros into bank accounts within the Single Euro
Payments Area, which encompasses a larger number of European countries.
Additionally, Danish merchants can receive Danish krones. WalletBit also
emphasizes its security measures, including ACID and PCI-DSS compliance,
AES-256 encryption for internal data, and the option of three-factor
authentication using Google Authenticator and WalletBit’s SecureCard.

WalletBit has plans for further
development. The company aims to offer support for Canada, but it proceeds with
caution to ensure legal compliance and obtain favorable rates. Additionally,
WalletBit has been improving the usability of its payment systems, particularly
focusing on smartphone and tablet applications. WalletBit Mobile, previously
known as ResponsePay, provides an intuitive wallet for average users. Moreover,
WalletBit will soon introduce a comprehensive point-of-sale solution that
allows stores and restaurants to record orders and accept payments within a
single tablet application.

WalletBit’s efforts to enhance
its features have yielded significant success since September. With the
addition of Adam Harding as Director of Marketing, WalletBit’s transaction
volume has more than doubled since the summer. Founder Kris Henriksen is confident
that the company’s growth will continue as new features are implemented.
Canada, despite its high interest in Bitcoin, remains an untapped market for
the company. WalletBit also aims to expand into brick-and-mortar stores and
restaurants. Currently, out of the 167 merchants on the platform, only one is a
physical store—a small kiosk in Henriksen’s hometown in Denmark. However, with
the upcoming bank transfer feature, WalletBit anticipates a significant
increase in brick-and-mortar merchants joining their platform.

As WalletBit expands its services
and establishes a stronger presence in the market, it is well-positioned to
provide merchants with a compelling alternative to existing payment processing
platforms.

The democratization of cryptographic technology over the past two
decades has opened up new possibilities for unparalleled privacy, empowering
individuals to browse documents, engage in conversations, and even send money
globally with minimal interference from powerful corporations and government
agencies. However, widespread adoption of these technologies has been slow to
materialize. While encryption tools like PGP (Pretty Good Privacy) were
expected to become standard in email communications, the reality is that most
email exchanges still occur without encryption, allowing providers like Gmail
to access and scan users’ messages for advertising purposes.

Critics argue that the lack of encryption in email protocols is driven
by profit motives, as companies such as Google rely on scanning emails for
targeted advertising. Others attribute the slow adoption to a general apathy
towards privacy, citing Mark Zuckerberg’s famous statement that privacy is no
longer a “social norm.” However, a more fundamental challenge lies in
the network effects associated with encryption. To make encrypted email
effective, both the sender and recipient need to possess a decryption key, whether
it’s a public key or a previously agreed-upon symmetric key. Convincing
technologically inexperienced individuals to use such keys has proven to be a
daunting task. While certain communities, like Bitcoin users, have embraced
encryption to safeguard their online identities, encryption remains a niche
technology for the average person, perpetuating a catch-22 situation that
requires widespread coordination to overcome.

Enter Bitcoin, a system initially designed for financial transactions
but with cryptographic primitives that have demonstrated broader utility. As
early as 2011, individuals were using the lower digits of Bitcoin transactions
to encode messages in the blockchain. Although this ad-hoc messaging system was
cumbersome, subsequent advancements in Bitcoin messaging have led to the
development of more efficient methods. Blockchain.info introduced the concept
of “blockchain notes,” allowing messages to be stored in the
blockchain as non-standard transactions. However, this approach faced criticism
for polluting the blockchain, leading to the exploration of alternative ways to
embed messages in transactions.

Another significant advancement came with the introduction of message
signatures in the Satoshi client, enabling users to sign any message using the
same algorithm employed in Bitcoin transactions. This authentication mechanism
solved certain challenges but lacked a built-in transmission method. Similar to
PGP, users had to create a format that combined the message and signature,
presenting limitations. However, these developments set the stage for
BitMessage, a peer-to-peer network specifically designed for sending messages.
BitMessage utilizes a system of objects broadcasted throughout the network and
replicates them to limit spam. The process involves a series of steps,
including requesting public keys, replying with keys, encrypting messages, and
sending acknowledgments. While BitMessage offers innovative features, its
initial implementation faced criticism for security flaws in its encryption
algorithms. The BitMessage developer is actively working on addressing these
issues and improving the protocol.

Despite its strengths, BitMessage currently lacks compatibility with
Bitcoin. While Bitcoin relies on elliptic curve cryptography, BitMessage
employs 2048-bit RSA encryption. The incompatibility limits the advantages of
leveraging Bitcoin’s existing infrastructure, such as the vast number of
private and public keys in users’ wallets and the ability to retrieve public
keys from the blockchain easily.

However, future versions of the BitMessage protocol hold promise. By
adopting the same elliptic curve system used in Bitcoin, BitMessage could
address security concerns and achieve compatibility. This potential integration
could revolutionize communication and payments, enabling a decentralized and
cryptographically secure platform for users’ online lives. Additionally,
concepts such as deterministic wallets and one-time keys for messaging and
payments could further enhance privacy. With ongoing development and growth,
BitMessage or a similar technology could lay the foundation for rebuilding
significant aspects of the internet, ensuring greater privacy and security.

In conclusion, the democratization of cryptographic technology and the
advent of Bitcoin have presented remarkable opportunities for privacy and
messaging. While challenges remain, advancements in encryption, Bitcoin’s
cryptographic primitives, and the development of systems like BitMessage
demonstrate the potential for decentralized, secure platforms that can
transform the way individuals interact and transact online. As these
technologies evolve, they may pave the way for a more privacy-centric and
robust internet ecosystem. 

As the Bitcoin community eagerly
awaits the block reward halving, scheduled to take place on Wednesday,
discussions are rife about the economic consequences of this event. This
article aims to provide an understanding of what the block reward halving is,
the core economic issue under debate, and some of the potential effects that
may arise in the medium to long term.

To comprehend the block reward
halving, it is essential to grasp the process of money creation in Bitcoin. The
Bitcoin network maintains a database, known as the blockchain, which records
the ownership of bitcoins. Roughly every ten minutes, a new block is added to
the blockchain, containing the transactions that occurred during that time.
Miners compete to find a valid block, and when successful, they receive a block
reward as an incentive for their contribution to the security of the network.
This block reward is currently set at 50 BTC per block.

The block reward halving reduces
the rate at which new bitcoins are generated. The Bitcoin protocol has a
predetermined monetary policy that gradually decreases the block reward until
it reaches zero in 2140, with a maximum of 21 million bitcoins. Every 210,000
blocks, or approximately every four years, the block reward is cut in half. The
upcoming block reward halving will reduce the reward from 50 BTC to 25 BTC per
block.

The primary objective of the
block reward halving is to control inflation. Unlike traditional fiat
currencies controlled by central banks, Bitcoin aims to simulate a commodity,
such as gold, with a limited supply. By gradually decreasing the block reward,
Bitcoin aims to maintain its value as a medium of exchange and store of value,
similar to gold’s historical performance.

The main question surrounding the
block reward halving is its potential impact on the Bitcoin price. Two
contrasting camps exist in this debate. The first camp believes that the
reduction in the block reward will create a supply shock, as the number of
available bitcoins diminishes. This reduced supply is expected to drive the
price up, potentially doubling to compensate. The second camp argues that the
market has already priced in the block reward halving, as traders anticipated
the event and accumulated bitcoins beforehand. They suggest that the supply
from traders will offset the decreased supply from miners, leading to a
relatively stable price.

It is worth noting that other
factors can also influence the Bitcoin price simultaneously. Recent price
movements may be attributed to factors such as increased acceptance by
organizations like WordPress or rising public interest, which historically
correlate with price fluctuations. These factors may continue to impact the
short-term trend of the Bitcoin price, regardless of the block reward halving.

Aside from the immediate price
impact, there are other subtle effects to consider. Miners, who receive a
constant supply of bitcoins, play a vital role as consumers in the Bitcoin
economy. With the block reward halving, the amount of bitcoins available to
miners will be halved, potentially leading to a significant loss of volume for
businesses relying on them.

Additionally, the introduction of
ASICs (application-specific integrated circuits) in the Bitcoin mining
ecosystem will bring about profound changes. ASICs are specialized computer
chips designed specifically for mining Bitcoin, offering significantly higher
efficiency. This technological advancement will render traditional mining
methods using GPUs obsolete. Consequently, revenue for existing miners will
decrease, and a new wave of amateur miners with ASICs is expected to emerge.
The extent of this shift remains uncertain and will influence the dynamics of
the mining community.

The significance of miners within
the Bitcoin economy is still a subject of speculation. While payment processors
like BitPay report substantial transaction volumes, it is uncertain how
dependent specific sectors are on Bitcoin miners. The preferences of the new
group of miners and their saving versus spending habits may either amplify or
offset the potential supply shock.

The block reward halving has
sparked excitement among the Bitcoin community, leading to celebrations
worldwide. Whether attending an organized event or creating one’s own
gathering, enthusiasts are eagerly anticipating this significant event in
Bitcoin’s history.

Margin trading, a service that
enables users to trade with leverage, has been absent from the Bitcoin
ecosystem since the collapse of Bitcoinica, which was once a major player in
the market. Several attempts have been made to bring back margin trading, but
none have achieved the same level of success. BitFinex, a new player in the
space, aims to fill this gap with improved security and innovative features.

Margin trading allows users to
trade with borrowed funds, amplifying potential gains or losses. Bitcoinica
provided this service before its shutdown, attracting significant trade volume.
BitFinex aims to address the shortcomings of its predecessors by implementing
robust security measures. Unlike Bitcoinica, which suffered a major hack,
BitFinex plans to have no hot wallet and manually processes withdrawals at the
end of each day. The platform also offers two-factor authentication for
enhanced account security.

In addition to improved security,
BitFinex differentiates itself by trading with multiple exchanges, offering
lower spreads and the option for “routed orders” that bypass exchanges.
This innovative approach aims to provide a more favorable trading experience.
The platform also features an interest rate system, allowing users to earn
interest by providing liquidity.

While BitFinex presents promising
features, concerns remain. The platform’s source code is based on the insecure
Bitcoinica code leaked in July, potentially exposing vulnerabilities.
Additionally, the absence of a hot wallet creates a potential issue if user
positions exceed market liquidity, as BitFinex may need to act as the
counterparty, resembling a bucket shop. Reputation is also a consideration, as
the founder, Raphael Nicolle, has been involved in past Bitcoin investment
schemes and expressed support for a suspected Ponzi scheme.

The fate of BitFinex remains
uncertain. While it aims to provide a secure and lasting margin trading
service, past failures in the market highlight the challenges of working with
money in the digital realm. Nicolle’s efforts to enhance security are
commendable, but the question remains whether BitFinex can successfully prevent
potential pitfalls. Trust from the Bitcoin community will be crucial for the
platform’s success, and partnering with trusted members may help establish
credibility.

Ultimately, BitFinex may overcome
the challenges and deliver a secure margin trading experience for users.
However, the cautionary quote “systems that work with money are attacked
hard and often” serves as a reminder of the constant threats faced in the
cryptocurrency space. As BitFinex aims to provide a robust platform, time will
tell if it can navigate these challenges and establish itself as a reliable
player in the margin trading market.

 Bitcoin has experienced
significant developments over the past year, demonstrating its resilience and
growth. Despite facing negative media attention and a prolonged slump, the
cryptocurrency has bounced back and made strides towards mainstream adoption. Evaluating
Bitcoin’s current position requires an examination of various factors,
including price trends, Google search volume, transaction volume, and business
growth.

In November of the previous year,
Bitcoin reached a low point of $1.994 after a prolonged slump from its all-time
high of $31.91. Media coverage during that time was predominantly negative,
with many speculating that the currency was nearing its end. However, Bitcoin
proved resilient and began a recovery. A spike in price occurred when the currency
was featured on an episode of the television show “The Good Wife,”
reaching $7.22. The price then stabilized around $5 for several months before
another surge in the summer, driven by media attention and fraudulent Bitcoin
Ponzi schemes. The price briefly touched $15.4 before stabilizing at a range of
$10-$13, where it has remained.

To assess Bitcoin’s current
state, various indicators can be considered. One method is examining the
projects being developed within the Bitcoin community, such as the release of
ASIC-based Bitcoin mining hardware, BitInstant’s Bitcoin debit card, and
WordPress’s acceptance of Bitcoin payments. Another approach is analyzing
Google search volume for Bitcoin, which historically correlated closely with
the price. However, since May, the search volume has diverged from the price,
indicating a potential disparity.

One explanation for the disparity
is the possibility of a mini-bubble and an eventual price correction. Another
perspective suggests that the market has already adjusted to the upcoming
halving of the block reward. Additionally, it is plausible that the lower
prices earlier in the year were influenced by market manipulation or the
availability of shorting options. However, search volume may not be a reliable
indicator, as users familiar with Bitcoin have little reason to search for it
repeatedly.

Another significant factor to
consider is transaction volume. While blockchain.info’s chart shows a decline
in transactions over the past few months, the removal of SatoshiDice from the
data affects the interpretation. SatoshiDice is a significant Bitcoin business
that accounts for a considerable portion of transactions. Thus, the ratio of
transaction count to economic activity may not significantly differ between
popular addresses and others.

Assessing Bitcoin’s business
volume offers insight into its growth. Bitcoin payment processors BitPay and
WalletBit reported a total of 196 transactions on Bitcoin Friday, the highest
number recorded in Bitcoin history for both companies. Other businesses, such
as Coinabul, BitMit, and Silk Road, have experienced increasing sales volume or
user activity. While this analysis may have an inherent optimistic bias, the
growth shown by aggregators like BitPay suggests genuine progress.

Despite varying indicators, it is
unlikely that Bitcoin will collapse soon. The price charts demonstrate a period
of stability, similar to earlier this year, with Bitcoin maintaining a price
level of $10-$13. Furthermore, the recent acceptance of Bitcoin by WordPress,
the largest merchant to date, suggests a positive trajectory for the
cryptocurrency. Overall, Bitcoin’s future appears promising, and it continues
to evolve as a resilient and influential digital currency.

 WordPress, the widely used
blogging platform and content management system, has made a significant
announcement by adding Bitcoin as a payment option for its paid services. As
the 22nd most accessed site globally, WordPress.com hosts millions of blogs and
websites. The move to accept Bitcoin stems from the company’s mission to
promote freedom of information and provide accessible publishing tools to
individuals worldwide.

One primary motivation behind
WordPress’s decision to adopt Bitcoin is the restrictive policies of
traditional payment networks, such as PayPal and credit card companies. These
limitations have hindered users from purchasing WordPress’s premium services in
countries where they are most needed. The release highlights that PayPal alone
blocks access from over 60 countries, and similar restrictions apply to credit
card companies. WordPress believes that individuals in Kenya, Haiti, Cuba,
Iraq, and other nations should not have limited access to the blogosphere due
to payment constraints they cannot control. The company aims to empower people
and eliminate barriers.

An additional benefit of Bitcoin
acceptance, which WordPress did not explicitly mention, is the anonymity it
offers. Many bloggers operating in restrictive regimes rely on pseudonyms for
their safety, and conventional payment methods like credit cards and PayPal
expose the payer’s physical identity. Bitcoin’s inherent privacy features
provide bloggers, dissidents, and individuals living under authoritarian
regimes with a greater chance to evade persecution.

While WordPress’s paid services
encompass various features like ad-free experiences, custom design, domain
mapping, extra storage, and premium themes, not all options will be immediately
available for Bitcoin payments. Domains and individually purchased themes will
require more time before accepting Bitcoin. However, WordPress assures users
that Bitcoin will be integrated as a payment method for all products within the
next two or three months.

WordPress, already a popular
platform for Bitcoin users, supports numerous e-commerce plugins, including
BitPay integration. The platform’s user-friendly nature has attracted many
Bitcoin-related websites, such as Bitcoin Magazine, which utilizes WordPress as
its content publishing backend. WordPress’s growing prominence, with over
100,000 new blogs created daily, extends beyond blogs to encompass company
websites, news sites, social networks, and e-commerce applications. Being the
largest website to accept Bitcoin thus far, WordPress’s decision is likely to
inspire confidence in other major businesses considering Bitcoin adoption. This
move may encourage potential adopters like Reddit and numerous undisclosed
businesses to follow suit, leading to broader acceptance of Bitcoin in the
online ecosystem.

 As Bitcoin Friday came to a
close, Joerg Platzer of Room 77, a renowned restaurant in Berlin and a hub for
the local Bitcoin community, used the occasion to announce Bitcoin Kiez. This
project aims to bring a large number of businesses in Berlin’s Graefekiez
district into the Bitcoin ecosystem by accepting BTC as a payment method.

Bitcoin Kiez has revealed its
initial three participants:

Primo Maggio: This restaurant
offers a diverse range of homemade Italian food, including sandwiches,
antipasti, pasta, and desserts. Primo Maggio prides itself on using
high-quality ingredients, ensuring that customers experience the best of
original Italian cuisine.

Fabelhaft Bar: Known for serving
some of the finest cocktails in Berlin, Fabelhaft Bar offers a unique atmosphere
reminiscent of a gothic castle intertwined with an underground bordello. The
bar attracts a mix of locals, expats, and artsy individuals, providing a space
for lively conversations, cold brews, and handcrafted cocktails.

Vinyl Living Room Longplayer: A
cozy used record store frequented by DJs from both Berlin and beyond, Vinyl
Living Room Longplayer is a popular hangout spot. The store boasts an extensive
collection of hip-hop, funk, soul, jazz, reggae, rock, and punk records, making
it a treasure trove for music enthusiasts.

Joerg Platzer envisions Bitcoin
Kiez as an evolving project, with plans to adapt and optimize the Bitcoin
infrastructure based on the experiences of participants during this initial
phase. He expressed confidence that more retail stores and restaurants will
soon announce their acceptance of Bitcoin. Platzer anticipates that by
December, residents will be able to shop for Christmas gifts and dine at
numerous cafes and restaurants within the Graefekiez district, paying for everything
with Bitcoin. This initiative seeks to establish an “alternative local
currency with global reach.”

If successful, the formation of a
stable local Bitcoin community in Berlin would signify a significant milestone
for Bitcoin. It would mark the first large-scale trial of Bitcoin acceptance in
the physical world. The residents of Graefekiez would witness firsthand the
adoption of Bitcoin, transforming it from an abstract concept into a tangible
reality as they encounter signs of businesses accepting Bitcoin and customers
using it for daily transactions. Moreover, this initiative would demonstrate
Bitcoin’s practicality in the non-technical realm, providing concrete evidence
to skeptics that Bitcoin has evolved beyond a speculative investment. Berlin’s Bitcoin
Kiez could serve as a model for other cities to follow, further expanding the
adoption and acceptance of Bitcoin in the real world.

Today marks a historic event in
the Bitcoin community as various prominent businesses participate in the
first-ever Bitcoin Friday. Coinabul, MtGox, BitPay, WalletBit,
PrivateInternetAccess, BitMit, and numerous other online and offline shops and
services are offering exclusive discounts on their products to celebrate the
second anniversary of the Bitcoin project’s registration on Sourceforge in
November 2010.

The concept for Bitcoin Friday
originated from Jon Holmquist, head of marketing at Coinabul, a precious metals
seller that recently celebrated its first anniversary. The primary objective of
the event is to introduce more individuals to Bitcoin and stimulate consumer
spending among existing Bitcoin users. Holmquist stated, “With news
reports of 78% of bitcoins not being spent, we need to do something.”

Prominent Bitcoin businesses are
participating in Bitcoin Friday with enticing offers:

Coinabul is providing a $1
discount on silver and a $10 discount on gold.

MtGox is halving exchange fees
for 48 hours.

WalletBit and BitPay are reducing
processing fees by 50% and waiving them entirely, respectively.

The Bitcoin Store is offering
free shipping for purchases over $100.

Bitcoin Blaster and wtcr.ca are
providing discounts of up to 15% and 30%, respectively, on electronics.

VPN providers such as Private
Internet Access, Mullvad, and CryptIP are offering approximately 25% off their
services.

Canadian Bitcoins is offering a
10% discount on purchasing bitcoins for cash sent by mail, effectively
eliminating their commission.

BitBrew and Bitcoin Coffee are
providing 15% and 20% off, respectively.

SatoshiDice is donating all
profits from the day to the Bitcoin Foundation.

In addition to these established
businesses, several surprise deals have emerged. WIKISPEED, a startup car
manufacturer known for producing highly efficient vehicles that can travel 100
miles on a single gallon of gas, is offering a 20% discount on cars and
T-shirts. Bitcoin Pride, a seller of Bitcoin promotional clothing, has chosen
Bitcoin Friday as its grand opening, offering free shipping for all purchases
made today.

Local businesses have also joined
the sale, leveraging Bitcoin Friday as an opportunity to bring their local
Bitcoin communities together. Room 77, a popular restaurant in Berlin known as
“the restaurant at the end of capitalism,” is offering a 23% discount
on all items and free drinks for customers paying in Bitcoin. They have also
organized a day and night event to educate people about Bitcoin, assist with
software installations, and facilitate bitcoin purchases. Room 77 encourages
Bitcoin users outside of Berlin to invite their friends in the city and pay for
their expenses remotely using Bitcoin. Additionally, Room 77 has introduced
Bitcoin Kiez (Bitcoin Neighborhood), a project aimed at helping other
businesses in the area accept Bitcoin payments.

Bitcoin Friday not only offers
significant discounts but also fosters community engagement and promotes the
adoption of Bitcoin as an alternative local currency with global reach. As more
businesses start accepting Bitcoin, the Bitcoin infrastructure will continue to
evolve, allowing customers to shop for Christmas gifts and dine in various
cafes and restaurants using Bitcoin as a payment method.

Bitcoin Friday serves as a
milestone in the growth and acceptance of Bitcoin, encouraging both newcomers
and existing Bitcoin users to engage in the digital currency economy.