Topic: Cany anyone do this for btc community? (Read 2446 times)

The continued growth and development of our payment processing activities will depend on our ability to anticipate and adapt to changes in consumer behavior. For example, consumer behavior may change regarding the use of credit card transactions, including the relative increased use of cash, crypto-currencies, other emerging or alternative payment methods and credit card systems that we or our processing partners do not adequately support or that do not provide adequate commissions to Independent Sales Organizations such as us. Any failure to timely integrate emerging payment methods (e.g. ApplePay or Bitcoin) into our software, anticipate consumer behavior changes, or contract with processing partners that support such emerging payment technologies could cause us to lose traction among our subscribers, resulting in a corresponding loss of revenue, in the event such methods become popular among their consumers.

Shopify Payments (Currently available in the United States, Canada and the United Kingdom): An integrated payment processing solution that allows merchants to accept credit cards at attractive rates. In addition, directly from the Shopify platform, merchants can dispute any chargebacks and have full visibility of cash transfers to their bank account. It also provides flexibility to allow merchants to accept PayPal, Bitcoins and other alternative payment methods. We provide Shopify Payments under payment services provider agreements with Stripe. These agreements renew every 12 months, unless either party provides a notice of termination prior to the end of the then current term. Under these agreements, we pay Stripe monthly fees based on the value of orders processed through Shopify Payments.

While we maintain the MJM business, we are also exploring a transition to the Bitcoin and crypto-currency business. We are looking to partner with an established Bitcoin exchange in order to offer integrated currency exchange services both online and through our ATMs.

Bitcoin is a digital currency that uses cryptography combined with a public ownership and transaction ledger to provide the first truly safe means of transferring property over the internet.  Bitcoin may be used to buy things electronically, like any other currency, which are also traded digitally.  What makes Bitcoin different from conventional money is that it is decentralized. No single institution or country controls the Bitcoin network.

Bitcoin automatic teller machines (“ATMs”) are appearing in Seattle (WA), Austin (TX) and Vancouver (BC).  We are also looking at partnering with manufacturers that use open source software with the objective of expanding beyond traditional ATM offerings of simply purchasing or selling Bitcoins.
...
We may not be able to find a partner.

There are a number of risks and uncertainties associated with our intention to partner with a bitcoin or crypto-currency business. For example, we may not find a suitable partner or we may be unable to finalize terms with potential partners. If we are unable to negotiate a partnership, we will not be able to enter the crypto-currency industry.

Business opportunities that we believe are in the best interests of our company may be scarce or we may be unable to obtain the ones that we want. If we are unable to obtain a business opportunity that we believe is in the best interests of our company, we may go out of business. If we go out of business, investors will lose their entire investment in our company.

We are, and will continue to be, an insignificant participant in the number of companies seeking a suitable business opportunity or business combination in the crypto-currency industry. A large number of established and well-financed entities, including venture capital firms, are actively seeking suitable business opportunities or business combinations which may also be desirable target candidates for us. Virtually all such entities have significantly greater financial resources, technical expertise and managerial capabilities than we do. We are, consequently, at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. We will also compete with numerous other small public companies seeking suitable business opportunities or business combinations in the crypto-currency industry. If we are unable to obtain a business opportunity that we believe is in the best interests of our company, we may not be able to enter the bitcoin industry.

If we are successful at partnering with a bitcoin or other crypto-currency business, our business will be subject to the risks and uncertainties with the industry. The development and acceptance of Bitcoin and other crypto-currencies is subject to a variety of factors that are difficult to evaluate.  The slowing or stopping of the development or acceptance of crypto-currencies may adversely affect our ability to partner with a company.

Using Bitcoins and other crypto-currencies to buy and sell goods and services is a new and rapidly evolving industry of which the Bitcoin Network is a prominent, but not unique, part.  The growth of the Bitcoin Network in particular, is subject to a high degree of uncertainty.  Factors affecting the further development of the Bitcoin Network, include:

continued worldwide growth in the adoption and use of Bitcoins;
government or quasi-government regulation of Bitcoins and their use, or restrictions on or regulation of access to and operation of the Bitcoin Network;
the maintenance and development of the open-source software protocol of the Bitcoin Network;
changes in consumer demographics and public tastes and preferences;
the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using currencies; and
general economic conditions and the regulatory environment relating to digital currency.

A decline in the popularity or acceptance of the Bitcoin Network could adversely affect an investment in the Company in the event we partner with a bitcoin business.

(New York, NY) – May 19, 2015 - Conexus Cattle Corp., (OTC: CNXS) announced today the acquisition of a 51% membership interest in Bitcoin Direct LLC, Nevada limited liability company (“Bitcoin” or the “Company”), which provides bitcoin transaction solutions for consumers in what we believe is a rapidly expanding industry, still in its infancy. Bitcoin’s initial focus is aimed at installing and servicing its ABMs (Automated Bitcoin Machines) in multiple locations. The ABMs provide consumers with the ability to instantaneously purchase bitcoins through their mobile devices. Currently, the Company has installations serving the major metropolitan centers of New York City and Montreal. The Company anticipates rapidly expanding its network of Company owned ABMs in the coming months.

In addition to operating its own bitcoin ABMs, the Company also anticipates partnering with local operators to create an integrated bitcoin distribution network in high traffic locations across North America. The Company, through its relationships with leading bitcoin miners, plans to supply bitcoins, as well as provide ABM equipment to these local operators.

Bitcoin plans to offer a full range of bitcoin transaction solutions to a wide variety of industries, including remittance and gaming, among others.

Under the terms of the transaction, Conexus, Bitcoin, and all of the members of Bitcoin, entered into a Securities Exchange Agreement, pursuant to which Conexus acquired memberships interests representing 51% of Bitcoin in exchange for 500 shares of the Conexus’s Series H Preferred, with an aggregate stated value equal to $500,000 (the “Exchange Agreement”). In accordance with the terms of the Exchange Agreement, Conexus agreed to provide a working capital facility to Bitcoin in an amount up to $300,000 to be utilized by Bitcoin as needed, and to be repaid by Bitcoin from working capital generated from Bitcoin’s operations. In addition, the Exchange Agreement provides an option to the members of Bitcoin for a period of five years to repurchase from the Conexus 10% of the Bitcoin membership interests held by Conexus for $250,000. Addition details of the transaction are included in the Conexus’ Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission.

Conrad Huss, President of Conexus commented: “We are excited to have acquired the majority interest in Bitcoin Direct LLC, along with its experienced management team. Our strategy is to provide sound, profitable, bitcoin transaction solutions to consumers, and to assist a variety of industries as they grow their markets. The Company is ready to help pioneer and promote the consumer adoption of bitcoin through automated solutions across North America.”

On January 23, 2014, the Company entered into a Know-How and Asset Purchase Agreement, with VTG and Gold Globe Investments Limited, a BVI company (“GGIL”). VTG and GGIL are engaged in the development of web technology and have jointly developed both an E-store and a virtual exchange platform that facilitate trading of virtual items and casino credits as well as bitcoins. The Company acquired these assets to assist the Company to continue to build and support its marketing and support business for online casinos and social games.

Stormy Simon - Overstock.com, Inc. - President and Director

This is a hard question, but I'm going to ask it, because Tom sent it in. It says, hi, Patrick. Why are you investing $5 million of our money into a risky Bitcoin VC investment? If people would like VC exposure, then they will invest in a VC firm. Our money must be spent on projects in which you have direct control.

Patrick Byrne - Overstock.com, Inc. - CEO and Director

You know, that's a very fair point. And I know I think of myself as the steward of your capital. In this case there's an opportunity that has come our way. There's a number of opportunities coming our way -- and we've have actually missed for years. And I'll tell you my honest-to-God thinking.

We were on the forefront of so many new companies with new technologies. For years we have known about emerging technologies before the world seemed to know. And we've had partnerships, and we've provided a lot of value.

We are basically -- I'm not sure if this is true anymore. But at one point we were the largest pure play who was integrating with third parties. If you got bigger than us, you just built everything internally. We integrated with a lot of third parties. And in the process we got to find out whose technology worked and whose didn't.

In addition, Stormy, being quite the demanding customer, brings a lot of value to some of these relationships. For example, there's a partner who had some great customer service software but worked with us for years. And I would say Stormy drove a lot of the development of their technology. And they ended up selling to somebody for $1.5 billion a couple years ago. There are more stories in our rearview mirror like that than I care to think of. And so I do want to start finding a way to monetize this front-row seat on a lot of technologies.

Now, the Bitcoin thing was a bit different in that it's not directly tied to our business. And you have a fair complaint. But I will put it this way. An opportunity came to me, as with some of the leading lights in Silicon Valley. We're behind a company that -- and some names I know and some people I know -- and I would have sure felt, if I had taken this investment myself, which I could have, it would have been a usurpation of corporate opportunity, but this $5 million bet is a bet on a portfolio of -- this is a very high -- this is a group of really fancy folks in Silicon Valley who were in the crypto-revolution, who are thinking about it the same way that I am. And this lets us make one broad-spectrum bet on the crypto-revolution.

The Company established its subsidiary, Bitcoin Bidder, Inc. in June, 2014 for the sole purpose of bidding on bitcoins which had been seized by the FBI and were sold at auction June 27, 2014. In connection with this, the Company issued notes aggregating $2,150,000 under a Securities Purchase Agreement. Bitcoin Bidder, Inc. was not successful at the auction and $1,950,000 in borrowings was repaid to the lenders on June 30, 2014. The remaining $200,000 was repaid to the lenders in July, 2014 without any penalty or interest charges to NaturalNano.  The Company dissolved Bitcoin Bidder, Inc. in 2014.

In the event financial service providers do not accept accounts or transactions related to the marijuana industry, it is possible that Royalty Producers may seek alternative payment solutions, including but not limited to crypto currencies such as Bitcoin. There are risks inherent in crypto currencies, most notably its volatility and security issues. If the industry was to move towards alternative payment solutions and accept payments in crypto currency the Company would have to adopt policies and protocols to manage its volatility and exchange rate risk exposures. The Company's inability to manage such risks may adversely affect the Company's operations and financial performance.

The emergence of “virtual currencies” could result in competitive trading platforms which may reduce transaction volume and revenues

Virtual currencies are receiving increasing interest from investors, businesses and governments. Examples include private virtual currency or payment systems such as Bitcoin, Ripple, and Litecoin. As peer-to-peer currencies, they rely on a system of mutual trust and do not rely on a central bank, a third party or other intermediary to effect transactions or act as guarantor in the event the currency collapses. They do not have the status of legal tender. However, increased popularity or government acceptance of virtual currencies could encourage competitors to utilize virtual or community currencies or the exchange of online credits for goods and services. Our potential competitors could enjoy advantages, including greater financial resources and access to capital, a wider geographic presence, more accessible branch office locations, more aggressive marketing campaigns, better brand recognition, the ability to offer a wider array of services or more favorable pricing alternatives. If other virtual or community currencies gain widespread merchant acceptance, to the extent that we cannot compete effectively, it may adversely affect our business operations and financial performance.

The emergence of increased regulation related to virtual currencies could increase our costs by requiring us to update our products and services; or subject us to operational requirements that result in substantial compliance costs which would adversely affect our business

Innovation in the payments industry has led to a variety of virtual currencies, community currencies and reward points, and federal and state regulatory regimes are seeking to revise antiquated currency provisions. The increased attention to virtual currencies could result in changes in federal or state regulations or the adoption of new regulations that could affect us as well as many companies transacting in credits that might be called “virtual currency.” For example, the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Treasury, as the delegated administrator of the Bank Secrecy Act (“BSA”) issued interpretive guidance in March 2013 to clarify the applicability of regulations to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies. Although we do not believe we as a payment processor are currently subject to the BSA requirements that could potentially change with new regulation. Registering with FinCEN and complying with FinCEN’s regulations would be burdensome, as would getting licensed as a money transmitter and complying with the money transmission regulatory regimes in each state. Changes to existing laws or regulations or adoption of new laws or regulations relating to the use of virtual currencies could require us to incur significant costs to update our products and services, significantly increase our compliance costs or may impose conditions that we are unable to meet. This could make our business cost-prohibitive in the affected state or states and could materially adversely affect our business.

Additionally, the continued growth in electronic payment methods could result in a reduced need for cash in the marketplace and ultimately, a decline in the usage of ATMs. New payment technology and adoption of such technology such as Apple Pay or Square® mobile payment technology, virtual currencies such as Bitcoin, or other new payment method preferences by consumers could reduce the general population’s need or demand for cash and negatively impact our transaction volumes in the future.

So for example, Bitcoin. Bitcoin costs us directly -- we figure about $400,000 to get integrated and live with all of the people we had on it and such. We might allocate another $400,000 to that totallying $800,000.

It was a bit of a disappointment incidentally, Bitcoin. I thought we would do at least $6 million or $7 million this year. And after the first month of sales, that seemed plausible. I thought at least four would come domestically (or five) another will be a couple from international, and the truth is nothing international showed up, almost no international sales, and the domestic sales came in at $3 million. So a bit of a disappointment. That was worth $400,000 in other ways.

Written transcript of the live presentation made at the InsideETFs.com 2015 Conference on Monday, January 26, 2015.

The following transcript was provided by ETF.com for filing with the Securities and Exchange Commission under Rule 433.

Session: 12:25 pm - 12:50 pm: “Bitcoin, ETFs & the Future of Digital Currency”.

Interview with Cameron Winklevoss and Tyler Winklevoss; Jessica Toonkel, Reuters, reporter; and Matt Hougan, ETF.com, President.
see the full transcript at the quote URL

https://searchwww.sec.gov/EDGARFSClient/jsp/EDGAR_MainAccess.jsp?search_text=bitcoin&isAdv=false

I'll be editing this post with what I pull from there. Donations welcome at 1TBZ1VNaAbNXefjUHERgqMqF4qPzshroA















Continued at
https://bitcointalksearch.org/topic/m.9216139
and
https://bitcointalksearch.org/topic/m.10262979

5 Berkshire Hathaway - quote "$49bil of BH, zero invested in bitcoins" (negative)

PayPal also faces competition and potential competition from: ... services such as Coinbase and Bitpay that help merchants accept and manage virtual currencies such as Bitcoin; and cash

CryptoCafe.com
On February 24, 2014, we launched a website platform called CryptoCafe which is a new and used marketplace to sell items in exchange for Bitcoins. We built a proprietary escrow system to allow users to securely complete transactions and rate feedback. On March 24, 2014, we began re-development of the website and new back-end integration allowing for alternative cryptocoin coin integrations.  On April 14, 2014 we successfully launched the new version of CryptoCafe, which includes the acceptance of Dogecoin, another popular crypto-coin.  On September 26, 2014, we sold a 75% ownership interest in the CryptoCafe.com, code, website, and domain name to Mouse, LLC for $12,000.  On October 6, 2014, we sold our remaining interest in CryptoCafe.com to Mouse, LLC for $4,000.  Alan Sosa, who current owns approximately 13% of our common stock, is the principal of Mouse, LLC.  We will provide maintenance and future work towards the project on a separate contract which is under discussion at this time.

BTCTickers.com
On March 4, 2014 we launched a web platform to track publicly traded companies that are in the Bitcoin space called the Bitcoin Stock Index.  This website calculates the respected values of each company traded in the USA that is primarily focused on bitcoin or cryptocoin related developments. The company values are weighed into a basket and displayed as one total price representing the index value. The website also serves as a marketing platform to further promote our other business ventures and to derive advertising revenue.

Cryptocurrency holdings
We hold cryptocurrency denominated assets such as bitcoin. We currently consider these holdings to be investments and include them with other long-term assets in our Consolidated Balance Sheets. Cryptocurrency denominated assets were $346,000 and zero at September 30, 2014 and December 31, 2013, respectively, and are recorded at the lower of cost or market based on an average unit cost. We recognize decreases in the value of these assets caused by market declines. Subsequently, to the extent that fair value increases, we recognize price recoveries but not greater than the original cost. Gains or losses resulting from changes in the value of our cryptocurrency assets are recorded in Other income (expense), net in our Consolidated Statements of Income and Comprehensive Income. Losses on cryptocurrency holdings were $50,000 during the three and nine months ended September 30, 2014. There were no losses on cryptocurrency holdings for the three and nine months ended September 30, 2013.

AvraATM – Is another technology solution planned by the Company is called AvraATM, which it plans to develop a software to be integrated with kiosks which will allow them to have the ability to accept payments, effectively converting the existing kiosk into a purchase point (ATM) for bitcoin and other cryptocurrencies. The planned revenue model is one where a percentage fee will be charged for the purchase of currency which will vary depending on the expectations of the individual owners of each kiosk network.

Once the established core businesses are operating and the sales process working, we intend to develop the product portfolio, working with remittance companies to allow remittances-by-bitcoin as well as regional bill-pay-by-bitcoin solutions, through portals that Avra will be developing further. We would expect these products to roll out between April-June 2015.

In addition, the Company announced that it has formed a new subsidiary, Bitcoin Capital Corporation, to pursue early stage opportunities in Bitcoin and other cryptocurrency. As of the filing of this report, Bitcoin Capital Corporation has not begun operating and the Company has put this plan on hold indefinitely given changes in the market for Bitcoins subsequent to that announcement.

Winklevoss Bros: Beware Bitcoin ETF Risks

By Cinthia Murphy

November 18, 2014

There are many questions surrounding the Winklevoss Bitcoin Trust ETF (COIN) such as its viability as an investment vehicle, its first-of-a-kind exposure to an unregulated crypto-currency, and ultimately where it fits in portfolios.

There’s, indeed, a lot of conversation taking place about this fund, which remains in the regulatory pipeline awaiting SEC approval. But to Cameron and Tyler Winklevoss—the heads behind the idea—a bitcoin ETF should deliver, first and foremost, a return path that’s similar to that of a precious metals ETF. But the ride will be mired in risks, some of which are still evolving as the space grows.

The brothers will speak more extensively about their plans at the upcoming Inside ETFs conference in Hollywood, Florida, in January. Here they answered a few questions by email.

ETF.com: What’s the investment thesis for a bitcoin ETF?

There are investors and funds that would like to gain exposure to this asset class, but may be unable or unwilling to hold bitcoin directly, or may not want to buy bitcoins from an unregulated foreign bitcoin exchange.

Investors historically have chosen to offload the friction of directly buying and securing assets such as gold for a reasonable fee. We believe investors will behave the same with regard to bitcoin. Also, since the ETF will be listed on the Nasdaq, investors will be able to trade their shares in the ETF like they would any other stock in a public company.

ETF.com: Do you see a bitcoin ETF as a currency ETF, or as something different?

Bitcoin is most similar to a commodity, and our bitcoin ETF is similar to precious metals ETFs like the SPDR Gold Trust (GLD | A-100).

ETF.com: U.S. investors in currency ETFs bear the currency risk, but also earn the interest rate of the currency they’re investing in. Bitcoin has no such rate of return, correct? Is it akin to gold in this respect?

Yes, bitcoin, like gold, does not have a rate of return.

ETF.com: Bitcoin is very volatile. What are the main risks investors would face if they own the ETF? How is the pricing benchmarked in the fund?

Right now, bitcoin is behaving like a new and unregulated asset class that’s in the process of becoming regulated. You could also think of it like an early-stage technology—it’s going to be volatile at this stage; that’s what should be expected.

Because of this, we included an exhaustive list of risk factors in our S-1, including risks that are unique to bitcoin. We continue to update the disclosure to reflect risks as they develop. We want investors going in with their eyes wide open. Investors should review the risk factors in the registration statement.

The value of the Winklevoss Bitcoin Trust will be priced daily off of the Winklevoss Index (WinkDex), which is a pioneering effort in the analysis and presentation of global bitcoin pricing and which currently uses data from the most active qualified U.S.-dollar-denominated bitcoin exchanges.

ETF.com: After the demise of Mt Gox, why should investors have confidence in the infrastructure of bitcoin?

An investment in the bitcoin ETF is an investment in the future performance of bitcoin and the underlying bitcoin protocol, not an investment in a bitcoin company. That said, the infrastructure of bitcoin is far greater than a single company, and we saw that when the price remained stable even after the Mt. Gox collapse.

Contrarily, following the demise of Bear Sterns and Lehman Brothers, there was significant turmoil in the financial markets. The entrepreneurs and venture capitalists building bitcoin companies today are the best in the world, unlike a few years ago, when bitcoin was relatively unknown.

ETF.com: Do you see the rise of dollar-based electronic payment systems (PayPal, Apple Pay) as a threat to bitcoins?

No. Those systems are closed, centralized and based on the rails of the legacy financial system.

Bitcoin is an open-source decentralized technology that not only reduces costs and friction associated with existing transaction types such as credit cards, wire transfers, etc., but enables a whole new set of transactions including micro and nano payments that existing payment technologies are unable to contemplate, let alone address.

ETF.com: Who should own a bitcoin ETF, and why?

Investors interested in the exposure to bitcoin, but who do not want to acquire or store their own bitcoin, would be interested in a bitcoin ETF. Also, investors who prefer to buy and sell securities on the Nasdaq and do not want to purchase bitcoin from an unregulated exchange would also be interested.

A bitcoin ETF would also appeal to investors who understand the risks and would like to gain exposure to bitcoin as an asset class; and investors who invest in gold or other commodity ETFs.

http://www.etf.com/sections/features/23846-winklevoss-bros-beware-bitcoin-etf-risks.html?start=1

The emergence of “virtual currencies” could result in competitive trading platforms which may reduce transaction volume and revenues
Virtual currencies are receiving increasing interest from investors, businesses and governments. Examples include private virtual currency or payment systems such as BitCoin, Ripple, and Litecoin. As peer-to-peer currencies, they rely on a system of mutual trust and do not rely on a central bank, a third party or other intermediary to effect transactions or act as guarantor in the event the currency collapses. They do not have the status of legal tender. However, increased popularity or government acceptance of virtual currencies could encourage competitors to utilize virtual or community currencies or the exchange of online credits for goods and services. Our potential competitors could enjoy advantages, including greater financial resources and access to capital, a wider geographic presence, more accessible branch office locations, more aggressive marketing campaigns, better brand recognition, the ability to offer a wider array of services or more favorable pricing alternatives. If other virtual or community currencies gain widespread merchant acceptance, to the extent that we cannot compete effectively, it may adversely affect our business operations and financial performance.

The emergence of increased regulation related to virtual currencies could increase our costs by requiring us to update our products and services; or subject us to operational requirements that result in substantial compliance costs which would adversely affect our business
Innovation in the payments industry has led to a variety of virtual currencies, community currencies and reward points, and federal and state regulatory regimes are seeking to revise antiquated currency provisions. The increased attention to virtual currencies could result in changes in federal or state regulations or the adoption of new regulations that could affect us as well as many companies transacting in credits that might be called “virtual currency.” For example, the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Treasury, as the delegated administrator of the Bank Secrecy Act (“BSA”) issued interpretive guidance in March 2013 to clarify the applicability of regulations to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies. Although we do not believe we as a payment processor are currently subject to the BSA requirements that could potentially change with new regulation. Registering with FinCEN and complying with FinCEN’s regulations would be burdensome, as would getting licensed as a money transmitter and complying with the money transmission regulatory regimes in each state. Changes to existing laws or regulations or adoption of new laws or regulations relating to the use of virtual currencies could require us to incur significant costs to update our products and services, significantly increase our compliance costs or may impose conditions that we are unable to meet. This could make our business cost-prohibitive in the affected state or states and could materially adversely affect our business.

Chris:  By the way, I think I read all your publications and I always listen to all your podcasts whenever you're appearing. I have to ask one question, because I don't think you've ever addressed it. Have you ever commented on Bitcoin and what are your thoughts on Bitcoin?

Axel:  Yeah, because I get asked about it plenty enough in other shows and other programs, [laughs] so I don't talk about it too much myself. I think Bitcoin is a fascinating technology. It is not a currency. If United frequent flyer miles were traded in a Bitcoin-like technology, it would be amazing, a decentralized ledger. But as a currency it's mostly a prepaid debit card that fluctuates wildly in value.

There is going to be some application. In fact, if the Bitcoin ETF comes to market, it addresses many of the shortcomings it has. Of course the true Bitcoin lovers hate some of those shortcomings being overcome.

But basically, if you're going to be successful, you're going to be regulated, as much as you hate it. One key deficiency of Bitcoin is it doesn't comply with AML, with anti-money laundering laws. With that, it's very, very difficult to become mainstream.

If it were exchange-traded, the reason why that issue goes away is because you're buying the Bitcoin through your broker, who does all the AML screening. That's going to technical levels here, but the short of it is that what Bitcoin is very good at, it's a good starting point to talk about fiat currency and so forth.

But when you ask me what might be the next question, what's the better store of value, gold or Bitcoin? Now the Bitcoin fans will tell you Bitcoin. My answer is, well, if you want to store something for a hundred years, would it rather be in gold or in Bitcoin? I'd much rather choose gold. We can't even watch some movies that were recorded digitally a decade ago because the technology is changing so much. Now the Bitcoin folks disagree with that, but I stand by it.

Bitcoin of course is much easier to transfer things than with gold, which you physically have to move, so of course there's some advantages to Bitcoin as well. It's a great movement, it's a great technology. It does not rise to the level of a currency at this stage, though.

EX-99.1 of 8-K for OVERSTOCK COM INC
Other examples from 2014 include Bitcoin

FWP for Merk Gold Trust
The thought of standing in a vault filled with gold bars is impressive. Bitcoin somehow misses that “turn-on” value!

10-Q for EBAY INC
PayPal also faces competition and potential competition from: services such as Coinbase and Bitpay that help merchants accept and manage virtual currencies such as Bitcoin

N-CSR for FINANCIAL INVESTORS TRUST
Also, the Fed faces a threat from Bitcoin or other peer-to-peer payments (“virtual currencies”).

8-K for DNA PRECIOUS METALS INC
In consideration for the issuance of the DNAC common stock,  Lynx contributed  all of its intellectual property rights in connection with the design of proprietary software to mine bitcoins.  Lynx has developed formulas for how much hashing power must be added to negate the decreased Bitcoin generation.

In order to fully implement DNAC’s  business strategy to “mine” Bitcoins,  DNAP has committed $200,000 in funding.  Most of this money will be allocated to purchase computer servers and storage facilities for the servers.

DNAC will utilize DNAP’s funding to purchase up to 60 CoinTerra Terra Miner IV’s that have a hashing power of 1.6 Terahashes/second with a power consumption of 2100 watts.

The machines have hashing power of 1.6 terahashes per second, meaning that 1,600,000,000,000 algorithms will be solved per second. The power draw (2100 watts per machine) is the amount of power needed in order to solve that amount of SHA-236 algorithms per second.

DNAC will operate from the corporate offices of Lynx Mining LLC located in Dallas, Texas.  DNAC is being designed to be an industrial Bitcoin mining operation.  The facility will house mining servers generating Bitcoins through the process of cryptography. The servers will have dedicated hashing power that will determine the speed of bitcoin generation and power consumption.  Management believes that this industrial mining without any customer contracts or other obligations to third parties is a superior business model to cloud-­based mining facilities that sell its mining power through customer contracts.
 
Bitcoin mining servers solve a complex algorithm called SHA­-236, which is based on a type of mathematics called cryptography. After the server proves it has solved the equation, the system will authenticate it and release bitcoins to the address the miner is running through. The initial purchase of servers will bring in between 80-­100 terahashes per second.
 
Our “miners” or “mining servers” will deposit the bitcoins generated directly into our bitcoin wallet. After we have received these bitcoins, we will then watch the market to decide the most profitable time to sell Bitcoins for cash on a Bitcoin exchange platform. Upon completion of the Bitcoins sale, the Bitcoin exchange platform will direct USD deposits into our DNAC bank account. We will not sell customer contracts.

N-CSRS for T Rowe Price International Funds Inc
The data suggest (please refer to the price/earnings ratio time series charts) that the market overall is not in valuation bubble territory. There are, however, a few pockets of bubble-like behavior: think social media, “Internet of things,” biotech, and Bitcoin.

EX-99 of 8-K for NATIONAL BANKSHARES INC
Additionally, we not only face competition from traditional banks but, each year, we deal with many new non-banking competitors such as Paypal and Bitcoin.

10-K for OVERSTOCK COM INC
Our decision to accept bitcoins as a form of payment for purchases on our website may subject us to exchange risk and additional tax and regulatory requirements.

In January 2014, we began accepting bitcoins as a form of payment for purchases on our website. Bitcoin is a digital currency that uses cryptography to control the creation and transfer of the currency between individual parties. Bitcoin is not considered legal tender or backed by any government. Since inception in 2009, bitcoins have experienced price volatility, technological glitches and various law enforcement and regulatory interventions.

Since we began accepting bitcoins as a form of payment, less than 1% of customer purchases have been made using the currency. At present we do not accept bitcoin payments directly, but use a third party vendor to accept bitcoin payments on our behalf. That third party vendor then immediately converts the bitcoin payments into U.S. dollars so that we receive payment for the product sold at the sales price in U.S. dollars. We do not hold any amount of bitcoins as a result of these transactions and are not subject to exchange risk. An insolvency of our third party vendor, however, may result in our holding bitcoins which could subject us to exchange risk.

In the future, we expect to transact in bitcoins directly and intend to hold bitcoins. This will subject us to exchange risk which may have an adverse effect on our results. There is also uncertainty regarding the current and future accounting treatment and tax, legal, and regulatory requirements relating to bitcoin or transactions utilizing bitcoin. Such accounting, legal, regulatory, and tax developments or other requirements may adversely affect us.

EX-99 of 8-K/A for LIFELOCK INC
Virtual Currency — The Company’s virtual currency consist of Bitcoin which are carried at fair value and are considered level 1 financial assets. Level 1 financial assets relate to assets where fair value can be determined using observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

10-Q for INFRAX SYSTEMS INC
We are also considering using our technology for Smart Cities, Internet of Everything and bitcoin architecture (Secure Wallet, Merchant and Mining applications).

10-K for CARDTRONICS INC
New payment technology and adoption of such technology such as Square® mobile payment technology, virtual currencies such as Bitcoin, or other new payment method preferences by consumers could reduce the general population’s need or demand for cash and negatively impact our transaction volumes in the future.

EX-99.C-5 of 18-K/A for CANADA
However, it is important to continually improve Canada’s regime to address emerging risks, including virtual currencies, such as Bitcoin, that threaten Canada’s international leadership in the fight against money laundering and terrorist financing.
For example, the Government proposes to:
Introduce anti-money laundering and anti-terrorist financing regulations for virtual currencies, such as Bitcoin.

8-K for WPCS INTERNATIONAL INC
Overview of Bitcoin

Bitcoin is a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments. Bitcoin is a type of alternative currency known as a cryptocurrency, which uses cryptography for security, making it difficult to counterfeit. Bitcoin issuance and transactions are carried out collectively by the network, with no central authority, and allows users to make secure, verified transfers.   We believe the market opportunities for Bitcoin are poised for significant growth in the future.  Bitcoin is an accepted form of payment by a growing, but still number of businesses, while governments and regulators are beginning to create more regulation and structure to legitimize it as a currency.  The opportunities as an asset class, a currency and a money transfer mechanism can make Bitcoin an important alternative in the financial currency space.

The total number of Bitcoins that will be issued is capped at 21 million to ensure they are not devalued by limitless supply. They are divisible to 8 decimal places.  Bitcoins exist only in digital form and can be bought with traditional currency through the internet.  Users store their Bitcoins in a digital wallet, while transactions are verified by a digital signature known as a public-encryption key. The first Bitcoin specification and proof-of-concept was published in 2009 by an individual or individuals under the pseudonym Satoshi Nakamoto. Bitcoins are created through a “mining” process that involves programmers solving complex math problems with the computers in this network; this process currently creates 25 Bitcoins every 10 minutes. The limit of 21 million is expected to be reached in the year 2140, after which the total number of Bitcoins will remain unchanged.

A basic premise underpinning the Bitcoin is that because it is decentralized and not issued by government, it is supposedly free from interference and manipulation, in stark contrast to the world’s fiat currencies. However, these same features confer significant disadvantages on the Bitcoin. Since it is a virtual currency, it cannot be stored in physical form. Bitcoin businesses are subject to substantial risks and uncertainties associated with any new and emerging business and technology, including regulatory uncertainty. While the business of BTX is initially not believed to be subject to government regulation as it relies principally upon activity involving other Bitcoin businesses, the Company intends to expand BTX’s activities in the Bitcoin industry in a manner that will likely subject certain aspects of the business to future governmental regulation.

Regulatory changes or actions may alter the nature of an investment in Bitcoins or restrict the use of Bitcoins in a manner that adversely affects BTX. Until recently, little or no regulatory attention has been directed toward Bitcoins by U.S. federal and state governments, foreign governments and self-regulatory agencies. As Bitcoins have grown in popularity and in market size, the U.S. Congress and certain U.S. agencies (e.g., FinCEN and the Federal Bureau of Investigation) have begun to examine the operations of Bitcoin networks, Bitcoin users and the Bitcoin market in general. Local state regulators such as the California Department of Financial Institutions and the New York State Department of Financial Services have also initiated examinations of Bitcoin. Additionally, a US federal magistrate judge in the U.S. District Court for the Eastern District of Texas has ruled that “Bitcoin is a currency or form of money,” although there is no indication yet whether other courts or federal or state regulators will follow the federal magistrate’s opinion. There is a possibility of future regulatory change altering, perhaps to a material extent, the nature of BTX’s business or the ability of the Company to continue to operate a Bitcoin business. Currently, neither the SEC nor the U.S. Commodity Futures Trading Commission has formally asserted regulatory authority over the Bitcoin trading and ownership. To the extent that Bitcoins are determined to be a security, commodity future or other regulated asset, or to the extent that a U.S. or foreign government or quasi-governmental agency exerts regulatory authority over the Bitcoin activities of the Company, or trading or ownership of Bitcoins, the Company may be adversely affected.

10-Q for ITEX CORP  
The emergence of “virtual currencies” could result in competitive trading platforms which may reduce transaction volume and revenues
 
Virtual or digital currencies are receiving increasing interest from investors, businesses and governments. Examples include private virtual currency or payment systems such as BitCoin, Ripple, and Litecoin. As peer-to-peer currencies, they rely on a system of mutual trust and do not rely on a central bank, a third party or other intermediary to effect transactions or act as guarantor in the event the currency collapses. They do not have the status of legal tender. However, increased popularity or government acceptance of virtual currencies could encourage competitors to utilize virtual currencies or the exchange of online credits for goods and services. Our potential competitors could enjoy advantages, including greater financial resources and access to capital, a wider geographic presence, more accessible branch office locations, more aggressive marketing campaigns, better brand recognition, the ability to offer a wider array of services or more favorable pricing alternatives.  If other virtual currencies gain widespread merchant acceptance, to the extent that we cannot compete effectively, it may adversely affect our business operations and financial performance.
 
The emergence of increased regulation related to virtual currencies could increase our costs by requiring us to update our products and services; or subject us to operational requirements that result in substantial compliance costs which would adversely affect our business
 
The increased attention to virtual currencies could result in changes in federal or state regulations or the adoption of new regulations that could affect us as well as many companies transacting in credits that might be called “virtual currency.”  For example, the Bank Secrecy Act (“BSA”), as amended, established anti-money laundering related recordkeeping and reporting requirements for financial institutions and was designed to provide evidence useful in prosecuting money laundering and other financial crimes. The Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Treasury, as the delegated administrator of the BSA issued interpretive guidance in March 2013 to clarify the applicability of regulations to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies.  Although we do not believe we are currently subject to the BSA requirements, that could change with new regulation. Registering with FinCEN and complying with FinCEN’s regulations would be  burdensome, as would getting licensed as a money transmitter and complying with the money transmission regulatory regimes in each state (plus the District of Columbia).  Changes to existing laws or regulations or adoption of new laws or regulations relating to the use of virtual currencies could require us to incur significant costs to update our products and services, significantly increase our compliance costs or may impose conditions that we are unable to meet. This could make our business cost-prohibitive in the affected state or states and could materially adversely affect our business.