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Luxurious home for bitcoins The Russian real estate firm Kalinka Group has  announced  that once of its clients is selling his luxurious home for bitcoins. The 4200 square foot country mansion is located in the village of Nikolino, situated in a fashionable neighborhood off the Rublevo-Upenskoe highway. According to the Kalinka Group, this is the first time in the history of the Russian real estate market that a client has offered to sell a property for cryptocurrencies. "Such transactions are still a novelty, even for world real estate markets,” Ekaterina Rumyantseva, the chairman of the board of Kalinka Group, said in a statement. “We are pleased to be pioneers and open new frontiers in business.” She pointed out that Russian legislation has not yet defined the rules for working with bitcoins, and so far there is no legal definition of the cryptocurrency. Also, as there is no regulatory or legal framework governing the sale, the agency's service fees will still be paid i

Bitcoin In July, the U.S. Securities and Exchange Commission (SEC)  moved in on the "Wild West" world of ICOs , which has sent the blockchain world reeling. Now, the Israel Securities Authority (ISA) has announced its own plans to form a panel to regulate Initial Coin Offerings (ICOs). This week, the ISA announced that its chairman, Prof. Shmuel Hauser, has put together a committee to examine the regulation of ICOs. The committee will investigate the applicability of securities regulations on ICOs based on shared ledgers that are being offered to the Israeli public. On July 31, the Israeli Bitcoin Association (IBA) made its own  official public statement on the topic of ICOs. The IBA cautioned potential ICO participants that it’s important to understand the huge risks that exist in investing in ICOs. This new world tends to captivate innocents tempted by the hope of getting rich quick. We implore the public considering investment in ICOs to treat the matter with serious

BTC A brand new technical conference is hitting the Bitcoin space this week. Loosely inspired by the well-known  Scaling Bitcoin  workshops, the French Bitcoin community will host the  Breaking Bitcoin conference in Paris, on September 9 and 10. The conference has an explicit focus on security and is targeted at an audience with an understanding of the technical aspects of Bitcoin. “All of the talks and panels will have different angles that tie in to this theme,” co-organizer Elizabeth Stark told  Bitcoin Magazine. The Breaking Bitcoin conference was born out of discussions on the   CryptoFR Slack , a discussion platform for the growing developer community in France. A group of volunteers, including French Bitcoin community member Pierre Lorcery, Chainsmiths  managing director Kevin Loaec  and Ledger  CTO Nicolas Bacca, as well as California-based  Lightning Labs CEO Elizabeth Stark, decided to organize the technical event. “The idea was simple,” said Stark, who has previously

cryptocurrency With the aggregate cryptocurrency market cap soaring above $150 billion, an  above-800% increase  in the first eight months of this year, parties that previously dismissed digital currencies as a niche market are starting to make their mark. Governments and financial institutions, which were previously observers, are now taking a more active role in the development of  token sales  and the trading of digital currencies. Some analysts and speculators are interpreting these developments as the glimmers of  the cryptocurrency bubble  preparing to burst. However, some interesting developments are indicative that the landscape might in fact be evolving into a more stabilized market. While stricter regulation might put a plug into the hype surrounding cryptocurrencies, it will also help bring order to the chaotic landscape of cryptocurrencies. In tandem, startups and projects are emerging to help the market adapt to the new rules. Crypto exchanges mature The first crypto

BTCC, a major bitcoin exchange and trading platform operator in China, officially launched its first mobile application, “ Mobi ,” introducing various features and products including Twitter payments and the company’s signature bitcoin-based Visa debit card. With its private blockchain, Mobi allows smartphone users to gain access to over 100 currencies including bitcoin, gold and reserve currencies such as USD, and allows users to instantly convert, store or transfer funds globally to other smartphone users. Mobi accounts are simply linked to users’ mobile numbers and therefore a smartphone is all that is needed to use the app. The main feature of BTCC’s Mobi app is the BTCC bitcoin debit card, which operates just like a normal bitcoin wallet. Funds in the wallet are pegged to the debit card and balance is automatically deducted when users make payments at retail points of sale (POS) that accept Visa or withdraw cash via bank ATMs. It is BTCC’s first initiative to target a global

Only Expedia's US site will accept bitcoin during the trial Travel website Expedia has become the latest company to accept bitcoin transactions as a form of payment for hotel bookings. When Expedia's US customers come to pay to reserve their hotel, bitcoins will be offered as a payment method alongside Visa, MasterCard, American Express, JCB, Diners Club and Paypal. To begin with, the company will only accept the virtual currency for hotel bookings, and will restrict the trial to its US site. Expedia boss Michael Gulmann said: "We're continually looking at ways consumers want to pay for their travel; bitcoin is a great example of how Expedia is investing early in an array of payment options to give our customers and partners more choice in the ways they interact with us." Other big businesses such as Virgin Galactic now accept bitcoin, as do a range of  UK companies from Theatre Tickets Direct to the law firm Sheridans.  Video:Shop Holds Bitcoin-Only Trial

Ethereum fans got a bit of a boost today from two different companies in the crypto space. UK-based cryptocurrency firm  Blockchain  and Luxembourg-based cryptocurrency exchange  Bitstamp  have each added ether to their platforms for the first time. Blockchain  says its customers can simply toggle between bitcoin (BTC) and ether (ETH) to manage and transact funds quickly and easily. Additionally, Blockchain has also integrated ShapeShift’s API so trading bitcoin to ether and vice versa can happen all from one place. In an earlier, separate announcement to its customers, Bitstamp said it will allow full trading functionalities of ether today. Ether deposits and withdrawals opened at 9 am (UTC) and began to allow full trading functionalities at 1 pm (UTC). Nejc Kodrič, CEO of Bitstamp, said: "We've been encouraged by ether's potential and the demand shown for its inclusion among our trading pairs.” Ether now joins USD, EUR, bitcoin, litecoin and Ripple among the coins

The number of countries with banks experimenting with blockchain technology is growing rapidly. The Pacific island nation of Papua New Guinea (PNG), north of Australia, has joined the movement with its own central Bank of Papua New Guinea running blockchain trials. Central Bank Governor Loi Bakani,  known  as a champion of new technologies as a way to enable financial inclusion, recently hosted a conference to showcase his country’s commitment to blockchain technology, with participants from at home and around the world, including Abt Associates, Paycase, Othera, IDbox, Pacific Markets, UCash, Seso and ADCCA. At the conference, Bakani described the blockchain trials underway at the  Bank of PNG  and introduced the  PNG Digital Commerce and Cryptocurrency Association  for the growing number of Papua New Guinea tech entrepreneurs and businesses interested in blockchain technology. Bakani said, “This will allow PNG to join the Global Blockchain Forum, which gets PNG a cutting edge in

Questions about how identity is tied to Bitcoin and its use are understandable. It can be more than a little confusing to parse what aspects of your name and personal information will be tied to the platform. While it carries a reputation for allowing users to operate in the shadows, you may also know that Bitcoin is tied to distributed ledger technology, which records every transaction and traces them back to their origin. So, is Bitcoin anonymous? The short answer is no, not entirely. While anonymity indicates that the identity of an actor is unknown, Bitcoin transactions are linked to a specific address and, thus, an “identity.” However, that address does not necessarily have to be tied to a real-life identity. That is why Bitcoin is often described as “pseudonymous.” If a user’s Bitcoin address is tied to their real identity, then it is possible to trace activity back to them. If not, it is possible only to trace activity back to their Bitcoin pseudonym. Bi

Using our handy guide, you may have already familiarized yourself with the ins and outs of Bitcoin. But aside from bitcoin, there are hundreds of other digital currencies out there. These are known as “altcoins,” or alternatives to bitcoin; for example, ether, ripple, zcash, monero and dash, to name just a few. Altcoins can differ from Bitcoin in a range of ways. Some have a different economic model or a different coin-distribution method, like altcoins that were given away to all citizens of a country. Others employ different proof-of-work mining algorithms, perhaps to resist specialized mining hardware — or maybe they don’t even rely on proof of work at all. Several altcoins offer a more versatile programming language to build applications on top of, while yet others offer more privacy compared to Bitcoin. And there are also altcoins that serve very specific, non-monetary use cases, like domain name registry or data storage pointers. However, there are also

One of the fundamental questions many people have about Bitcoin revolves around the tokens themselves. Questions about its value, security and history, all eventually lead to one place: Where do bitcoins come from? While traditional money is created through (central) banks, bitcoins are “mined” by Bitcoin miners: network participants that perform extra tasks. Specifically, they chronologically order transactions by including them in the Bitcoin blocks they find. This prevents a user from spending the same bitcoin twice; it solves the “double spend” problem. Skipping over the technical details, finding a block most closely resembles a type of network lottery. For each attempt to try and find a new block, which is basically a random guess for a lucky number, a miner has to spend a tiny amount of energy. Most of the attempts fail and a miner will have wasted that energy. Only once about every ten minutes will a miner somewhere succeed and thus add a new block to the bl

The digital currency Bitcoin has a dedicated following, regularly makes headlines and inspires countless investors to consider making digital currency part of their portfolios. Yet it enjoys the backing of no government or third-party entity like a bank, and it can be hard to understand where its perceived value comes from. So, you may be asking, what makes bitcoin valuable? Fundamentally, bitcoins derive their value just as anything else does: because people want them. Like any other currency, bitcoin follows the basic rules of supply and demand. Currencies have always been useful tools to make trade easier, enabling holders to convert goods into a widely tradable commodity through sale, then use the proceeds of that sale to purchase nearly anything they wish. While fiat currencies derive value from the governments that back them, currencies like gold are valuable in and of themselves. Currently, bitcoin isn’t like other currencies in that it is not universally

It’s understandable to have questions about the legality of using Bitcoin. The platform introduced a brand new paradigm away from the traditional regulators and regulations that govern fiat currency. Unlike illegal, counterfeit money, which is a blatant example of a “currency” that misrepresents itself as legal tender, Bitcoin is entirely different. Nevertheless, it operates in a seemingly gray area when it comes to regulation. However, many of these concerns boil down to misunderstandings or a lack of concrete rules that govern Bitcoin, rather than overt violations of the law. The question surrounding the relationship between Bitcoin and the law really depends on how the digital currency is being used. Ever since the now-defunct Silk Road gained notoriety, regulators have been concerned about Bitcoin’s semi-anonymity and decentralized nature. In the U.S., as well as in other countries, authorities fear that the platform could be used for money laundering and the

Bitcoin depends on a distributed ledger system known as the blockchain. The blockchain is possibly the most powerful innovation associated with Bitcoin, as countless industries from financial services to healthcare have begun contemplating how to leverage the technology for their own uses. So it’s worth asking: What is a blockchain? The essential power of blockchain technology is its ability to distribute information. Because it is distributed across all of the nodes, or individual computers, that make up the system, the term “blockchain technology” is often swapped with “distributed ledger technology.” A blockchain’s database isn’t held in a single location, which could be infiltrated or controlled by a single party, but rather it is hosted by numerous (in the case of Bitcoin, tens of thousands of) computers all at once.   The blockchain network automatically verifies itself at certain intervals, creating a self-auditing system that guarantees the accuracy of

Victims lost $1.33 billion to cyber criminals in 298,728 cases, with hackers stealing and extorting $28.3 million in cryptocurrencies in 2016. On June 22, the Federal Bureau of Investigation presented its annual  Internet Crime Report  for the year of 2016. The FBI analyzed the victim reports at the  Internet Crime Complaint Center  (IC3) and used the information from their database to publish the annual study. It is important to mention that, according to the Department of Justice’s research, only an  estimated 15 percent  of the U.S. fraud victims reported their crimes to law enforcement. The FBI highlighted multiple “hot topics” regarding internet crimes for the year of 2016. This included Business Email Compromise (BEC), which resulted in the loss of $360 million from victims, currently standing in first place in the category of most damage caused. BEC is a sophisticated scam targeting companies working with international or foreign businesses or suppliers who conduct wire

Digital currency practices have exploded in recent months, bringing to the forefront new regulations. This means VC investors looking to get a piece of the action need to do further due-diligence and remain informed on the legal side. According to  Inside Bitcoins , last year two Bitcoin and blockchain-related startups raised over $1 billion in total investment. This is a massive increase from the $347 million invested in the space in 2014. So what are the latest issues around cryptocurrencies? How will the recent  SEC announcement  impact investors? Bob Graham, partner and head of the digital currency services practice at  Friedman LLP , has been receiving inquiries from both Bitcoin and blockchain-related firms and investor funds asking for audits and advice. Graham tells  Bitcoin Magazine  in an exclusive interview what VC investors should be aware of and how Bitfinex recently engaged Friedman to assist with an audit. What issues are VCs facing related to digital currency? The

A fork could change the equation for thousands of bitcoin users. The biggest, newest fear for bitcoin investors and users is a fork. In financial terms, a fork isn’t for eating — it represents a split in the currency that could significantly destabilize the cryptocurrency’s value by splitting it into two completely different currencies — “bitcoin classic” and “bitcoin current.” Right now, bitcoin’s price has been rising, but come August 1, there’s a small chance its future could change forever. So when will Bitcoin fork, and what does that mean for the future of the currency? The answer is a bit complicated. To understand it, here’s a rundown of the central problem facing bitcoin and the various ways its software-savvy community is trying to fix it. The problem Bitcoin has one central problem — it’s slow as heck. The world’s leading cryptocurrency is crippled by its meager ability to facilitate a mere seven transactions per second. As more and more people buy in and adopt the cry