Monthly Archives: January 2014

Bitcoin News for the week – Overstock, Ghash, and ATM in New York

If you’re keeping up with Bitcoin news, this week has been huge! Here’s a few of the stories, and my take on each:

Overstock now accepts bitcoin

The news over accepting bitcoin is a surprise, not because they are accepting it, but because it’s 6 months sooner than they had announced. Somehow they were able to work out the details with Coinbase very rapidly. It was well worth the effort as bitcoiners bought from Overstock and gave them a huge amount of exposure online.

There are rumors about NewEgg accepting bitcoin as well. Let’s see how soon that happens.

As more companies adopt bitcoin we should see higher rates of adoption among the educated and risk tolerant people. 51% attack averted had reached a critical threshold of over 40% of the computing power in the bitcoin network. If Ghash reached 51% they would have the capability of spoofing transactions in the blockchain, allowing for double spending, or charge backs. The community rallied together to make sure this didn’t happen. The question now is, how will the development community deal with this threat of centralized mining operations potentially gaining control of the network? Will it require continued vigilance of the community, or will there be a code change that prevents this from happening? Don’t know yet, but we may be hearing about this again if another mining pool gets close to 40%.

Bitcoin ATM in New York

First was Canada, then Singapore, now (maybe) New York. There is a bitcoin ATM waiting in a New York apartment for an opinion from financial regulators. There should be an update on the status of the bitcoin ATM by February.

The Singapore government provides tax guidance on bitcoin

It’s amazing that the Singapore government has provided tax guidance to Singapore businesses. They don’t treat it as money, but as a digital asset that only is taxed when traded for ‘real’ goods and services. The great news is that for the sale of virtual goods there is no tax, until the bitcoin is traded for government recognized money.

I hope this point of view is common for many more governments. This could help with adoption as businesses will be weary to adopt bitcoin if they don’t know what the regulatory landscape is for bitcoin.

This seems to be in line with the Chinese government reasoning as they don’t recognize bitcoin as money, but as an asset. Check out Bobby Lee from BTC China to learn more about this point of view.


Canadian HR software company leading in Bitcoin payroll race

I was thinking that Bitcoin could be a great way for employers to send money to employees with reduced fees, and faster and easier than ACH.

Using Bitcoin as a payment network for small businesses makes a lot of sense if they can see lower fees for paying their employees. Small business need to cut expenses, and all the better if they can save money on frequent transactions, such as paying employees.

One way that employees could benefit from Bitcoin payroll is if they were paid on a daily basis instead of the standard 2-week pay period, or sometimes monthly. If you could be paid on a daily basis, you would be getting the value of your work on the day you earned it!

It seems Wagepoint is the first in the game for Canadian companies. Hopefully it will be coming to the US soon.

Check out the press release.