What is the future of Bitcoin and who is opposing it? - Hawaii News Now - KGMB and KHNL

What is the future of Bitcoin and who is opposing it?

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There is a talk about

regulations, but some companies are helping the growth of cryptocurrency like

Bitcoin while others are hurting it.

When Development

Capital Group went to the North American

Bitcoin Conference we met with many of the leading people in the industry

on cryptocurrencies, and received a lot of opinions on the future of the market.

Last week we published an article called “Bitcoin Arrives”

which went over cryptocurrency from a historical and ideological perspective by

highlighting some key information in the industry.

It seems that people are moving past the idea that these

cryptocurrencies, like “Bitcoin”, will be used for illegal activity. Whether it

was a payment processor, a merchant, a banker, or a government official, each

had their individual opinions about how to properly handle it. One side is

talking about how the United States government will come in and regulate the newly

adopted payment processor, while some are arguing about how it’s a temporary

thing and going away.

In New York, the Bitcoin

community met with regulators to negotiate how to handle this new form or

system of payment. The New York Department of Financial Services discussed

about “BitLicense” as a potential requirement since the digital currency

exchange platforms that are popping up are now deemed “transmitters of money”.

If the company is accepting a FIAT currency into Bitcoin, and exchanging it

among users as well as different currencies, the company is being categorized

as a transmitter of money, and this is a place where the government is required

to regulate how these transactions are handled.

The New York State Attorney’s Office Office charged

Charlie Shrem, CEO of BitInstant, for facilitating in a money laundering

scheme, who oddly enough was suppose to be at the North America Bitcoin Conference.

The focus in this case though is not the use of Bitcoin itself but the way he transacted

with Silk Road users. The same process of money laundering can be done with

cash, gold, or wire fraud. Government officials are looking at the lack of

regulation that is surrounding Bitcoin.

Other than regulation, it’s important to watch how companies

are reacting to this lack of government oversight. Yesterday, we saw a big blow

to the Bitcoin community when Apple removed the last Bitcoin wallet app Blockchain

from their app store. Bitstamp dropped as low as $752 yesterday with the

release of this information, which seems to be a reaction to the news. This

still seems to be pretty stable compared to the 50% drop when China’s biggest

Bitcoin exchange, BTCChina, stopped accepting deposits in Chinese yuan in

December. The market has seemed to be less volatile recently when China allowed the

acceptance of the Chinese yuan again this past week.

As more governments are opening up to digital currencies, we

are seeing more support from big companies. Overstock’s CEO Jonathan Johnson is

active in the limelight on his personal investment in Bitcoin and started

accepting Bitcoin at Overstock. Now Overstock is discussing about accepting the

less talked about altcoins. Accepting Bitcoin for companies has brought in some

pretty good press and sales. Tigerdirect

accepted Bitcoin, and did $250,000 in sales in 17 hours. Now we see more

companies that are accepting Bitcoin like Tesla, Zynga, Dominos Pizza, Virgin

Galactic, WordPress, and many more.

There is much speculation about the market with numerous articles

covering various movements. The Google support team discusses their integration

of Bitcoin for Google Play, while Google Ventures has funded a Bitcoin startup

called Ripple. Overstock.com’s CEO claims

it’s a matter of time before Amazon accepts Bitcoin. Ebay has publicly backed

the idea of integrating Bitcoin while Coinbase has recently received $25

million from Silicon Valley venture

capital firm Andreessen Horowitz.

What we are seeing is a pretty positive growth in the

market, and a lot of attention from various venture capital and investment

companies. If we look at the price of Bitcoin we are seeing it continue to

go up with some reversals, but ultimately in an upward trend. We see a lot of

activity in this market and continue to monitor what is happening in the

industry.

You can read this article posted on Development Capital Groups Blog, here

Source: http://www.accesswire.com/viewarticle.aspx?id=411680

ReleaseID: 32909