Category Archives: Crypto currency and Bitcoin news

Bitcoin Is Safe, Bitcoin Is Low-Cost, Bitcoin Is Superior to Conventional Payments

Bitcoin is usually portrayed as “high risk” by the mass media and industrial-age bureaucrat structures alike. Reports of spectacular thefts abound, the EBA (European Banking Authority), while also officially saying Bitcoin is legal to use Europe and here to stay, warned against alleged safety risks, and hyped stories about people “finding” abandoned hard drives on garbage dumps or “losing” bitcoins through an incredible variety of (usually stupid) ways are littering magazines and newspapers everywhere.

The truth is, Bitcoin is safe. The code works, and it is highly resistant against all sorts of operational concerns, including Block delays or non-syncronisation, and still works flawlessly in preventing double-spending or any kind of deliberate or involuntary subversion of the system. Also, Bitcoin is extremely low cost: there are no middlemen pocketing chunks of amounts you send, as is usual with conventional banking (SWIFT, credit cards, bankers’ drafts, Letters of Credit and other not-so-fancy ways of payment transmission from the telegraph-age).

Just note that SWIFT costs participating banks roughly $30,000 per year in “membership” dues in order to just be admitted to the club and able participate (plus a sizeable minimum amount per transfer, usually north of $6 per “wire” when you actually do). Also note that all credit card businesses pay around 41% of their total revenue for “fraud prevention” alone (this is where the total of billions from your 3% to 3.5% of “credit card usage” or “foreign card usage” and similar fees are going).

Neither credit cards nor “telegraphic” transfers have any meaningful error correction algorithms built into them. So even if no one attempt anything fishy there, money in transfer can still be lost — or delayed.

As Bitcoin is designed to be used in electronic communications and, thus, perfectly suited for worldwide transmissions, e-mail use, and immediate communications, it is clearly superior to those legacy systems that major banks desperately cling to and apparently try to “defend” using whatever means they can think of (government regulation, limiting access even further, introducing all sorts of hurdles).

Bitcoin’s other major advantage is the irreversibility of payments once sent. Chargebacks are not an issue, merchants accepting Bitcoin (or any other Crypto currency) payments need not worry about a thing. That way, there is no need for ridiculous “fraud prevention” teams, mechanisms against fraudulent chargebacks, or similar risk when using Crypto coin payments, eliminating these 41% of “security costs” (totalling billions of dollars every year) and making all transactions cheaper for everyone involved. Crypto currency payments such as Bitcoin transactions can be sent with zero or very low overall fees, therefore enabling improved integration and utilisation of all e-commerce aspects in the payments arena alone.

The arrival of Bitcoin, often praised as the biggest invention since TCP/IP (the protocol underlying the World-wide web) will likely bring about an entire new “Web 3.0” era.

South Korean Government Actively Supporting Bitcoin Ventures

South Korea actively supporting Bitcoin Crypto currencies digital money virtual currency, venture capital provided for Korbit

South Korea’s Ministry of Science, Information and Communications Technology and Future Planning has actively supported Korbit, one of the country’s leading Bitcoin companies, to participate in a conference to invite private equity investment in order to expand its business.

The bid resulted in Korbit successfully securing $400,000 seed funding by a group of private investors.

Also, established banks in South Korea have repeatedly made headlines in recent months for being generally supportive and open to Bitcoin and Crypto currency technology in general. The Korean Banks Foundation for Young Entrepreneurs, a group established by Korea’s largest banking alliance, has also participated in funding Korbit’s success.

Venture capitalists are quoted as saying, “Bitcoin’s growth in Korea is remarkable for the sophistication of the public dialog around its potential for innovation and wealth creation”, and that the country can “play a leading role in the future of global finance” by realising the importance of Bitcoin, and moving to embrace it faster than other nations.”

Apple Boycotting Bitcoin

Apple has removed a number of Bitcoin-related iOS applications from its proprietary online App Store. While in some cases, Apple failed to even give a proper reason for this measure, other app developers have received notifications from Apple that Bitcoin payment functionality, in a stricter sense, needed to be removed for their apps to stay “acceptable” for Apple’s platform.

The move has resulted in the disappearance of usable Bitcoin payment applications for Apple iOS devices such as iPhone, iPad or iPod touch. Only apps showing Bitcoin wallet balances or general prices on Bitcoin exchanges continue to be “permissible” for Apple. In effect, all truly useful Bitcoin applications for the widely used Apple devices have thus been censored out of existence by the company.

Apple’s policy has infuriated a large number of mobile device users. As a short-term result, a number of fixes for the problems caused by unavailable official App Store programs supporting Bitcoin have already appeared. These are only functional on jail-broken iOS devices though. (“Jail breaking” means removing existing and re-installing modified versions of the operating system onto original devices in order to circumvent DRM (Digital Restrictions Management) technologies present in standard Apple items.)

The reason for Apple’s fight against Bitcoin is that the company is struggling to introduce their its own payment system to Apple mobile device users. Apple’s planned system is said to be designed for PoS payments (point-of-sale payments) and to also be suitable for very small payments useful for e g music or movie downloads from Apple’s proprietary iTunes platform.

Forcing users to not use Bitcoin seems to be “okay” then for a large corporation trying to, obviously increasingly desperately, introduce something they see as the next big thing into the market predominantly for their own good, not the users’ who would certainly benefit much more from using low-cost and reliable Crypto currency payments such as Bitcoin.