Bitcoin News in Review: Silk Road Auction, Bitcoin Price, Nick Szabo, and More

With the end of the week already here, it means it’s time for another Bitcoin News in Review, where we feature some of our top stories here on CryptoCoins News. This week, we learned the results of the Silk Road bitcoin auction, saw interesting trends in the price of BTC, saw the author of bit gold break his long silence, and more. Check out this Bitcoin News in Review after the break.

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Silk Road Auction Winners and Losers

The results are in.

The U.S. government recently auctioned off the ~30,000 bitcoins it seized from Silk Road, with the final bidding ending on June 27th. Firms such as Circle, SecondMarket, and Pantera Capital were all part of the auction, but ultimately lost to one bidder who bought all 30k BTC – Tim Draper. American venture capital investor Tim Draper has already received his 30k BTC (sent with no transaction fee) and plans to expand the currency’s use in emerging markets.

“Bitcoin frees people from trying to operate in a modern market economy with weak currencies. With the help of Vaurum and this newly purchased Bitcoin, we expect to be able to create new services that can provide liquidity and confidence to markets that have been hamstrung by weak currencies.”

Trends in the Bitcoin Price

How high will it go?

Over the past week, the price of one BTC has gone up almost $40 USD. Everyone knows that bitcoin’s price fluctuates quite a lot, but this seems more than just “natural volatility”. It’s possible that the price is responding to the recent USMS Silk Road auction. Interestingly, analysing various bitcoin price trends suggests that the price of one BTC could even hit $10,000 in 2015. But what about $50,000? Well, that’s a bit of a stretch, but it’s hard to predict bitcoin’s future with any certainty.

Nick Szabo Breaks His Silence

Says he’s not Satoshi Nakamoto; Essentially laid the foundation for bitcoin in 2008.

For those who don’t know, Nick Szabo is the author of bit gold – a detailed conceptualisation for a decentralised currency prior to bitcoin, and the person who coined the term “smart contracts” in 1993. As a result, many believe that Szabo may in fact be Satoshi Nakamoto (though Szabo has denied these claims). In late 2013, Szabo ceased communication with the public, likely due to the increasing attention and pressure he was receiving. However, he has now broken his long silence with a retweet.

The issue that caught Szabo’s attention was that PayPal froze ProtonMail’s crowdfunded campaign money because PayPal wondered if ProtonMail had “government approval to encrypt emails.”

IDrive Tried Using its Servers to Mine BTC

Shocker: CPU mining doesn’t work anymore.

IDrive is an online backup provider with 3,000 dedicated servers. These servers aren’t always in full use, so the company’s engineers wondered if they could have the servers mining bitcoins during non-peak usage. That was a mistake. The team discovered that mining BTC on hardware not even designed for mining would be costly and posed security risks. As a result, IDrive has decided to stick with being a file storage company only. Interestingly, Raghu Kulkarni, CEO of IDrive, has considered accepting bitcoin payments, but the company believes BTC is too volatile to offer as a long-term payment option.

That’s all for this week. Be sure to follow us on Twitter and Facebook for the latest cryptocurrency news.

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