Peter Thiel on Bitcoin

Peter Thiel is known for Paypal and Facebook and a few more

Here is what he has to say in an AMA

[–]PeterThiel[S] 184 points

PayPal built a payment system but failed in its goal in creating a “new world currency” (our slogan from back in 2000). Bitcoin seems to have created a new currency (at least on the level of speculation), but the payment system is badly lacking.

I will become more bullish on Bitcoin when I see the payment volume of Bitcoin really increase.

btc sub reaction

Bank of England on Bitcoin

And their paper:

Reddit discussion

edit: the video is brilliant.

TL;DR of paper 1:

  • decentralised ledger is a major innovation in the field of transactions, the last being double-entry bookkeeping in C16.
  • decentralised ledgers eliminate credit risk, liquidity risk and operational risk.
  • Thus they are more efficient and more robust.
  • As with money held as bank deposits, most financial assets today exist as purely digital records. This opens up the possibility for distributed ledgers to transform the financial system more generally. (e.g. coloured coins).

The article is thorough and accurate.

… digital currencies may be thought of as an ‘internet of money’. But since the potential applications are, in principle, broader than just payments, the distributed ledger technology may perhaps be better described as a first attempt at an ‘internet of finance’.

[–]_supert_ 4 points

edit: the beginning of the video is a fantastic advert for BTC!

TL;DR of paper 2:

A well-argued point from paper 2:

A significant risk to digital currencies’ sustained use as payment systems is therefore that they will not be able to compete on cost without degenerating — in the limiting case — to a monopoly miner, thereby defeating their original design goals and exposing them to risk of system-wide fraud.

However they then make a wrong statement that the increasing hash rate per address is indicative of rising tx fees in real terms. It seems to neglect the increasing efficiency of ASICs.

There is also the usual argument about bitcoin’s fixed supply being unable to respond the changing demand for money resulting in volatile price of money (e.g. price deflation).

They seem quite worried about a 51% attack.

The greatest hypothetical risk to monetary stability that might be posed by digital currencies is if the economy were to become, for example, ‘Bitcoinised’ — where everybody sought to conduct the totality of their day-to-day transactions entirely within the alternative currency and switch into sterling only when strictly necessary for interaction with the state (such as to pay taxes). This would represent a significant change. Since in this extreme scenario all payments would be conducted away from sterling as base money for essentially all of the economy, the Bank’s ability to influence price-setting and real activity would be severely impaired. But such an outcome is extremely unlikely …

The paper also explores the possibility of a bitcoin-denominated ‘free banking’ system arising.

Nick Colas gains a Bitcoin Fanclub

That’s him on bloomberg, and he’s written numerous articles at zerohedge on bitcoin

The reddit fanclub:

[–]benperrin117 69 points

This was one of the most well-informed interviewees I’ve seen on TV. Not only that, but he was to the point and got in what he wanted to say despite the short time frame. Thumbs up to him.

[–]jayhisters 7 points

Here is another interview with him


Guardian’s Guide for Bitcoin

UK’s Guardian has released a guide for bitcoin, which you might find useful even if you are not in the UK or based in the UK:

But ever since its inception Bitcoin has been mired in misunderstanding and retains a degree of mystery to this day. For instance, it is not fully-known exactly who created it and although the name of a Japanese scientist, Satoshi Nakamoto, is commonly associated with its invention, his identity has proven to be elusive ever since. However, many of the aspersions and insinuations of Bitcoin also appear to be false and entrepreneurs, while not ignoring its volatile fluctuations, may indeed find it to be a useful method of transaction.

Professor Campbell Harvey of Duke University in North Carolina, who has written a paper on Bitcoin. “If you want to find a currency used for crime it would be cash. Bitcoin

However, this 1% is considerably cheaper than the rates demanded by credit card companies and BitPay says it’s not the only advantage on offer. “One of the things that Bitcoin solves for merchants is credit card fraud which is a huge thing,” says Wouter Vonk, European marketing manager at BitPay. “Credit cards are not built for the internet. Every week there is a new scandal where millions of card details are stolen and used. Eventually merchants get a chargeback from the credit card companies and are left with lost goods. Bitcoin is fundamentally different and irreversible.”

Twidell says handling payment is often an issue and is irritated by the complacency of the banking sector when it comes to access to money. “I don’t want to bash the banks but I find it incredible that all the other industries have moved to 24/7, but they close on Saturdays and customers that fly weekends can’t make payments until Monday.”

Doge and Lite on Shopify via Gocoin integration

Whether you buy or sell on shopify, gocoin has now brought dogecoin and litecoin closer to you

From their guide:

Shopify Integration

Using the GoCoin Payment Gateway on Shopify

Note: The Shopify Integration is currently in Beta. Please contact GoCoin Support for more information.

Get your Merchant ID

You’ll need to get your Merchant ID from the GoCoin Dashboard

  1. Click on the Developers Icon
    developers link
  2. Your Merchant ID is shown on the right side of the screen
    merchant id

Request a Shopify HMAC Key from GoCoin

  1. Send an email to, be sure include your Merchant ID in the request.

Enable GoCoin in Shopify

  1. Go to Settings -> Payments in your Store Admin. GoCoin can be found under Alternative payments
    enable shopify
  2. Enter your Merchant ID and HMAC Key in the fields and click Activate
  3. GoCoin is now a checkout option
    shopify checkout
  4. Your customers will be able to choose from any of the currencies you accept with GoCoin
    bill pay

What happens next?

GoCoin will communicate with shopify behind the scenes to update the order status. As soon as the payment is received, the order will appear as “Pending” in Shopify. In the GoCoin Dashboard it will appear as “Paid”

shopify payment pending

After 2 Confirmations on the Blockchain (for Bitcoin, Litecoin requires 10 and Dogecoin requires 20) the payment will be marked as “Paid.” In the GoCoin Dashboard, it will appear as “Ready_to_ship”

shopify paid

At this point, you can fulfill the order.


One of the stories of coinbase, boost vc and draper

Wired on mtgox, magicaltux and mark karpales

Wired again, on bitcoin gaining legitimacy out of the limelight (and low prices)

Reuters saying bitcoin has staying power, especially amongst online merchants

Bitcoin in Bali

Zerohedge on Dr Bitcoin in Venezuela

Bloomberg on bitcoin as the internet of money

Bloomberg on bitcoin as digital allowance by parents, e-commerce

Many merchants are luring bitcoiners with discounts. In one promotion, Dell knocked $150 off Alienware computer systems. Electronics Web merchant Newegg Inc. offered users $75 off purchases of $300 or more and $150 off orders of over $500.


Raptr September most played PC games 2014

1. League of Legends 22.5%
2. World of Warcraft 7.6%
3. Dota 2 5.5%
4. Diablo III 5.2%
5. Counterstrike GO 3.8%
6. Smite
7. Archeage
8. Minecraft
9. Hearthstone
10. Battlefield

LoL takes top dog, with dota2 being third, and along with Smite, representing the mobas. Blizzard has an impressive 3 titles there, but adds up to less than LoL %.

more at:

Japan software companies up bitcoin game

Rakuten has been making moves in the bitcoin scene, one of the more recent one being bitnet, a coinbase, gocoin and bitpay competitor.

Japan’s payment provider GMO has also embraced bitcoin and is working with bitfly.

Quite advanced moves in japan after gox. Softbank from japan has also invested in Korean bitcoin companies

A group of traditional payments veterans has raised $14.5m to launch Bitnet, a bitcoin payments processor that aims to entice the largest merchants in the world to accept bitcoin.

Led by Highland Capital Partners, Bitnet’s Series A round also included Rakuten, Japan’s largest e-commerce site. Notably, Rakuten is not only providing funding, it will use Bitnet’s bitcoin payments software.

John McDonnell, CEO of Bitnet, told CoinDesk the company has an enterprise-level platform for large retailers to begin accepting bitcoin and that it expects its offering to compete against established market players such as BitPay, Coinbase and GoCoin.

here are still proponents of Bitcoin in the country, however. Now you can add GMO, one of Japan’s largest internet infrastructure firms, to the list of fans.

It announced that its payment solution, GMO Payment Gateway (“GMO-PG”), will support bitcoin payments alongside standard payment options like credit cards and bank transfers starting in November. GMO-PG made a partnership with and investment in BitFlyer, a bitcoin marketplace and settlement service, in order to add bitcoin support.

Considering GMO’s status as a top tech firm, the tie-up with nine-month-old BitFlyer seems unexpected. However, BitFlyer has done a lot in that time. Though BitFlyer only just started operations in January, it has quickly risen to the top of Japan’s bitcoin food chain. It now claims to be the largest bitcoin company in Japan and is also the leader of the Japan Authority of Digital Assets. The firm’s official legal representation comes from Nishimura & Asahi, widely considered to be one of the top law firms in Japan.

New York Times on League Finale (LoL)

Quite the feature for esports, on the League finals that culminated a journey from Taiwan to Singapore to Korea, where it started in Busan and ended in Seoul.

Perhaps LoL and Dota will pave the way like football, rugby and soccer has, or basketball for the virtual world.

“Couples going to game clubs is about as common as couples going to the movies.”

But in South Korea, more than anywhere else, it has already oozed into mainstream culture. Couples going to game clubs is about as common as couples going to the movies.

“Fourteen years ago, you had a government that gave a thumbs-up to e-sports — it was professionally organized, and it was on television, so it became a mainstream thing,” said Jonathan Beales, an e-sports commentator. “The way soccer is around the world.”

After gunning down a friend with an assault rifle in the game Sudden Attack, Kang Mi-kyung, 15, said she was at the PC bang about five times a week.

“I love this game, though I think it’s too violent,” she said, adding that she comes mostly to see friends, including some male friends she does not see at her new high school.

Most recently he helped convince Chung-Ang University, a top Korean college, to admit two students based on their successes in e-sports.

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