Happy Sunday, and welcome back to another Bitcoin News in Review, where we feature some of our top stories of the week here on CryptoCoins News. This week, Overstock chose Counterparty for a decentralised stock exchange, the Bitcoin Foundation condemned NYDFS’s BitLicense over a lack of transparency, the bitcoin BearWhale was defeated, and more. Check out our video and keep scrolling for this week’s Bitcoin News in Review.
Overstock’s CEO Patrick Byrne has been a longtime advocate for cryptocurrency and decentralisation. And last Monday, Byrne continued the push for decentralisation by announcing that Overstock had hired two Counterparty developers to build a decentralised stock exchange. Codenamed “Medici,” this project will issue corporate stocks for Overstock and other companies and serve as an alternative to Wall Street brokers and exchanges. In response to Overstock’s announcement, the XCP price soared 36%, and trading volume saw a 64% increase. The project is in early development, but has the potential to completely revolutionise Wall Street.
In a recent blog post, the Bitcoin Foundation submitted a second public statement regarding the NYDFS’s BitLicense. In New York, proposed laws are required to clearly state “needs and benefits,” yet the NYDFS has refused to reveal these.
“The sacrifice of some decentralization in furtherance of other benefits to the Bitcoin ecosystem must meet a high burden of proof. Nobody should want a regulation that sacrifices Bitcoin’s benefits if doing so produces unknown or merely speculative benefits for New York consumers of the New York financial services marketplace.”
-Jim Harper, Bitcoin Foundation General Policy Counsel
The bitcoin price dropped drastically last week, even reaching below $300. It seems that the massive price drop may have been due to a single seller, whom bitcoin traders dubbed the “BearWhale”. The seller posted a single order to sell 30,000 bitcoins at just $300 each, which pushed the price down significantly. The motives and identity of the BearWhale are unknown. However, the bitcoin price is now recovering and currently at $365.
As revealed by examining Facebook Messenger’s code, the Messenger app will soon support peer-to-peer payments as part of the “FBPayments” system. While no plans to support bitcoin have been announced, there are a couple of reasons why Messenger may eventually support bitcoin. First of all, bitcoin is essentially the definition of P2P payments, as transactions occur without any middleman central authority. Next, former president of PayPal – David Marcus, supports bitcoin and is now a key member of the Messenger team. FBPayments hasn’t been released yet, and Facebook has not commented on the leak.
CCN readers are undoubtedly familiar with Tor – the open network that allows users to bypass censorship and gain anonymity online. Tor works by sending a user’s connection through multiple, randomised, distributed peers, making it difficult to trace the source of a message. The more relay nodes on the network, the more secure Tor becomes. Setting up a node is easy, and it can be done from almost any computer or Android device. Furthermore, relay nodes are listed at OnionTip, where people can donate bitcoins as a way of saying thanks to those who help keep Tor alive.
BearWhale painting by Billy Mabrey. Other images from Shutterstock.
Last modified: October 13, 2014 12:11 UTC