Bitcoin and gold share many similarities. They are both inherently limited, have to be “mined”, are deflationary, and can act as a store of value. Many people even use the “bitcoin is to gold as Litecoin is to silver” analogy to explain the two cryptocurrencies to newbies. That’s why it should come as little surprise that many precious metal companies are showing an interest in bitcoin. Netagio, which specialises in selling and storing gold, recently announced a three-way exchange of bitcoin to gold to pounds. Another company – Grand Pacaraima Gold Corp, used to mine precious metals, but has now completely changed its business model to focus on investing in bitcoin. Former bitcoin critic Peter Schiff also recently announced that Euro Pacific Precious Metals, a company in which Schiff is heavily invested, has begun accepting bitcoin payments. With so many precious metal companies moving towards bitcoin, it’s clear that bitcoin is becoming a solid investment.
Mt. Gox creditors recently discovered that of the $30 million that Mt. Gox claimed to hold in February 2014, only $7 million remain. What happened to the other ~$23 million is currently unknown. Some believe that the money was spent wastefully. For instance, creditors recently received a fancy postcard that merely reiterates an old announcement on Mt. Gox’s website, an action that may have cost $100,000. Tibanne, the parent company of Mt. Gox, also received $200,000 for some unknown service. Mt. Gox creditors are unsurprisingly outraged and are wondering if they’ll ever see the dwindling remaining funds.
A few months ago, the highly controversial Brock Pierce was elected to the Bitcoin Foundation’s Board of Directors. This caused many members to resign, and some wondered whether the Bitcoin Foundation was even necessary anymore. Now, another key member – Andreas Antonopoulos, has left the Bitcoin Foundation due to its “complete lack of transparency”. The Bitcoin Foundation has a shaky history full of controversies and corruption, which is why many former members have expressed their disappointment in the Foundation by resigning.
In related news, Mike Hearn recently won a $100,000 bounty for his “Lighthouse” software project that some hope could replace the Bitcoin Foundation entirely.
Like many major financial institutions, Capital One has never been a huge fan of bitcoin. In fact, Capital One shut down BitFloor’s account stating, “It is Capital One’s policy not to do business with merchants who accept Bitcoin.” That’s what makes this bank’s recent job postings particularly interesting. Capital One is looking to hire a new Digital Operations Manager, and the ad asks for:
“A passion for the latest in financial technology including bitcoin, mobile wallets, mobile payments, beacons, predictive analytics and person-to-person lending.”
A few days ago, there was another similar job posting:
“Investigating the impact of new technologies like Google Glass, Leap Motion, smart watches, Bitcoin, and iBeacons on the future of mobile banking and the financial world of tomorrow.”
Whether Capital One is looking to adopt bitcoin or if it’s simply investigating a threat to its business model remains unknown. However, one thing is for sure – Bitcoin can’t be ignored.
Last modified (UTC): July 14, 2014 01:14