Review Category : Featured

 
 

TGB 3Q Review & 4Q Outlook Now Available

The third quarter of 2013 proved to be one of significant transition for bitcoin. After the remarkable increase in bitcoin’s price and public notoriety earlier this year, the last three months have provided a much-needed regrouping period. New information about issues at existing exchanges became available and dozens more have or will soon come online. Security of the bitcoin network grew dramatically as ASICs increased the network speed exponentially, while a host of new entrepreneurs and investors continue to support the market with ever-increasing infrastructure. The result will be a more structurally sound ecosystem as bitcoin enters its next wave …

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Analysis of Silk Road’s Historical Impact on Bitcoin

Silk Road, the online drug bazaar that has eluded authorities and been ingrained in the bitcoin narrative for years, was shut down yesterday. Ross Ulbricht was named in the court documents outlining Silk Road’s activities, as were a number of key data points that offer insights into the impact the world’s most infamous retail website has had on bitcoin. Ulbricht was caught as a result of human error and excessive risks related to physical delivery of false identification being delivered to his home address in San Francisco from Canada. After tracking the package, authorities found their way to Ulbricht and …

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Bitcoin Securities Exchange BTC-TC Shutters $12M Operations, Cites Regulatory Environment

BTC Trading Corp (BTC-TC) announced that it will close all trading by October 7, two weeks from today. BTC-TC is one of the largest bitcoin securities exchanges, responsible for 101,000 BTC ($12M) in deposited securities and 2,900 BTC ($350K) in daily volume. The company’s notice cited “recent changes in the virtual currency regulatory environment” as the reason for shuttering operations. Also closing is LTC-Global, a litecoin-denominated securities exchange also run by Ethan Burnside, the same operator as BTC-TC. Closing Process All trading was temporarily halted and order books were cleared after the announcement was made at 5am EST. After trade …

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Analyzing Trade Clustering To Predict Price Movement In Bitcoin Trading

Financial markets, like many interactions in the world, are often self-exciting. Said differently, events within a dataset can actually serve as the impetus for more of the same events to a calculable extent. Statistical models to analyze self-excitability are used to understand both the independence and causal dependence of observations in such fields as seismology (study of earthquakes), criminology (study of crime) and more recently by algorithmic traders to understand financial markets. With the bitcoin markets having grown enough to offer ample data, self-excitability and its implication on bitcoin prices can now be observed as well. Excitability in Bitcoin Trading …

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Bitcoin Network Speed Breaks 1 Petahash per Second

The bitcoin network reached another historic milestone milestone today, achieving an estimated total computational speed of 1 petahash per second (1 PH/s = 1,000,000 GH/s). The current speed is 40x faster than where we began the year, faster than 79% of the bitcoin community expected as of just seven months ago. The path to this point goes back to the genesis block itself and offers insight into the foundations of the world’s first digital currency. In the Beginning After Satoshi mined the genesis block on January 3, 2009, the first difficulty increase took nearly a full year, occurring on December …

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California Legislature Passes Bill To Reform Money Transmission Act

Last week, both the California State Senate and Assembly voted unanimously to pass a bill to amend the California Money Transmission Act (MTA). According to Roger Dickinson, Chair of the Assembly’s Committee on Banking and Finance who introduced the bill in February, one of the primary goals of the amendment is to “remove barriers to market entry to start-up payment technology companies.” In addition to federal regulations like those from FinCEN, money transmitters in the US are subject to state regulations as well. California’s Department of Financial Institutions (now the Department of Business Oversight, which oversees execution of the MTA) …

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Bitcoin 0.8.4 Update Offers Security Improvements

An upgrade to Bitcoin-qt was released today and consists of several security and bug fixes bundled for release as version 0.8.4. It is recommended that all users upgrade immediately, since the release of these fixes makes finding the vulnerabilities in older code trivial. Included in this release are three security updates as well as several small bug fixes that were causing the application to crash or databases to become corrupted. Denial of Service Fix Bitcoin-qt 0.8.0 introduced Bloom Filters which allow for more flexibility with respect to how much of the block chain must be downloaded. Bloom Filters are a …

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Bitcoin in India: Drivers and Barriers to Adoption

Bitcoin’s growth in 2013 has accelerated tremendously, driven largely by economic concerns which bitcoin is uniquely positioned to solve. This has been evidenced so far this year by conditions in Cyprus, China and Argentina, and has highlighted bitcoin’s potential in less developed nations like Kenya as well. All of the countries listed above are known for high inflation rates, strict capital controls, or a combination of both – a scenario that is beginning to unfold in India. This analysis will address India’s current economic climate and the factors that would affect the population’s propensity to adopt bitcoin on a large …

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Additional $2.1M Seized from Mt. Gox Accounts – Now Over $5M Total

On Monday, the executed seizure warrant for Mt. Gox’s account with Dwolla was published, showing $2.9 million was seized by the US government. According to documents obtained today by TGB’s research staff from the records of the District Court of Maryland, more than $2.1 million was also seized from two of Mt. Gox’ Wells Fargo accounts – totaling to more than $5 million seized from Mt. Gox accounts by the US government. As stated in both warrants, Mt. Gox CEO Mark Karpeles’ failed to indicate on Mutum Sigillum LLC’s (Mt. Gox) account application that the company would be acting in …

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[Op Ed] Bitcoin Mining’s Inevitable Cloud Future

Considering a bitcoin mining hardware purchase? Make a more informed decision with our Bitcoin Mining Dashboard. In early 2013 bitcoin mining saw the start of the application specific integrated circuit (ASIC) revolution. ASICs are customized components that perform the calculations necessary for bitcoin mining significantly faster than any hardware that came before it. To anyone following the exponential growth that has occurred over the last six months it is clear that this story is nowhere near finished. The Current ASIC Environment There are two factors driving ASIC adoption: ASIC chip design, which is limited by technical expertise, and production capacity, which …

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