Recapping the week’s biggest Bitcoins stories from around the web:
Overstock.com Invest $ 4 million in Caribbean Bitcoin Startup
Earlier this year, Bitt, a bitcoin startup from Barbados, announced its plans to use the bitcoin blockchain for issuing fiat digital currency for the Caribbean Islands. The firm already launched the Barbadian dollar as an asset on the blockchain, using the coloured coins protocol.
This week, Reuters reported the startup has sealed an additional $4 million funding round from US giant online Overstock.com. The funds will go into expanding the prototype, Central Bank digitized Barbadian dollar, to the rest of the Caribbean Islands.
“Bitt has a vision for the Caribbean of frictionless mobile cash, beginning with central banks transparently issuing digital fiat which is then exchanged on a blockchain.”
Zooko, CEO of Zero Cash warns Bitcoin Community of Overconfidence
Bitcoin, was the first successful take off of peer to peer electronic cash to scale. But, some veteran cypherpunks, like Zooko and Ian Grigg, after having seen it all, are warning the community to rein in their confidence according to Coinjournal.
“we cannot just rest assured that Bitcoin’s unique value [proposition] outweighs all other considerations. I recognize that mistake. I’ve worked on so many things ( DigiCash) where we thought we were so special that we couldn’t lose.”
Zooko admits Bitcoin is special, however, it still has to solve real problems for people for it to unearth its potential, superiority is not enough. Via a tweet, Ian Grigg, an early developer of DigiCash, echoed his sentiments
“Zooko speaks the truth. Bitcoin community faith is based on unknown unknowns. But those from Before BTC aren’t so confident”
Russia’s Presidential Advisor Dismisses Bitcoin as Silly internet Money
For the longest time now, Bitcoin news from Russia seems polarising. There has been little in the way of clarification on what the Russian government really thinks of Bitcoin. As per Bitcoin.com German Klimenko, Putin’s right hand man, labelled the digital currency illegal, saying
“cryptocurrency is currently an illegal means of payment in every country of the world; all the myths that it is legal are fiction. Credit should be given to whoever created ‘Bitcoin’ and who coined the term ‘cryptocurrency,’ the meme-virus that infected the mind.”
His response came after Dmitry Marinichev, a member of Russian parliament was quoted saying banning cryptocurrencies would be “the worst thing that can be done.” Opinion on Bitcoin is split, despite the country’s publicized intention to introduce penalties for using Bitcoin
Distributed Ledger Testing for $ 2.6 Trillion Repo Market
Bitcoin Magazine reported, Digital Asset Holdings, a blockchain company funded by some of the world’s largest banks, is testing distributed ledgers for mainstream finance use case, Wall Street’s $2.6 trillion repo market.
Details of the plan were communicated via a press release on Depository Trust & Clearing Corporation (DTCC) website, a financial services company that processed securities transactions worth more than US$1.5 quadrillion in 2015.
Blythe Masters, CEO of Digital Asset Holding said
“DTCC has an important role to play in the integration of a distributed ledger ecosystem with the existing financial landscape and this joint effort will accelerate innovation while decreasing cost and risk for our clients.”
Wall Street Report Says Bitcoin Price Undervalued
Needham and Company, a Wall street investment research firm, released a report on the price of Bitcoin, estimating the digital currency’s true value close to $655. This, according to Money Morning, is not too far from November 2015’s WedBush’s valuation at $604.
“That two respected Wall Street firms are devoting resources to Bitcoin price analysis speaks to how far the cryptocurrency has come in just a few short years.”
Needham’s report was part of the firm’s ongoing coverage of Bitcoin Investment Trust, a publicly tradable investment vehicle that resembles Exchange Traded Funds (ETFs).
Bank of Canada Working Paper says Bitcoin Gold Standard would Fail
A working paper published by the Bank of Canada and authored by Waren E Weber,
“imagines a world in which countries are on the Bitcoin standard, a monetary system in which all media of exchange are Bitcoin or are backed by it.”
His opinion is it would have mixed effects on monetary policy, according to Coindesk, surmising that any massive adoption of such a standard would be short lived. Weber argues the costs of such an outcome would lead central banks and governments to pull out all stops to prevent it.
“a loss in control of central banks, would have fewer policy levers to pull without the aid of a fiat currency like the US dollar.”
Segregated Witness, Bitcoin Scaling solution, in Final Test Net
Bitcoin’s scalability issues have split the community over the past 6 months as different proposals to scale failed to gain consensus. Bitcoin Core’s Segregated Witness, a part scaling solution, has been in production and this week, Bitcoin Magazine reported a final – iteration of the Segregated Witness testnet dubbed “SegNet 4”.
Implemented as a soft fork, Seg Wit frees up 1 MB of additional block space and includes support for Check Sequence Verify (CSV). Core developer Eric Lombrozo was quoted
“the combination of Segregated Witness and CSV particularly benefits added scaling layers on top of the Bitcoin blockchain.”