Crypto-currenciesWhat’s new?

2014

The Law

UPDATES

IRS

The IRS ruled on Bitcoins and other similar virtual currencies on March 25, 2014. Services to account for this have already popped up:

• Coinreporting.com (which claims 11,238 new users over the last year) • Bitcointaxes.info

Brian Klein Partner, Baker Marquart

“[The] exchange of… virtual

currency … to pay for goods… has

tax liability”

“Every regulation is also a business opportunity. Tax accounting for

Bitcoin is needed. TurboTax for

Bitcoin”

Digital Currency Entrepreneurship & Startups

Bitcoin is Legally Recognized

* Brazil followed suite, but has exemptions for those transacting less than $16k per year http://www.coindesk.com/brazil-tax-bitcoin-investors-everyday-users/ * IRS guidelines: http://i.cdn.turner.com/money/2014/images/03/25/IRS_Notice_2014_21.pdf?iid=EL

Digital Currency Entrepreneurship & Startups

Rumors swirl that China’s orders shut down of exchanges’ bank accounts

1BTC Trade and Huobi confirm rumor while BTC China denies it

2BTC China opens Bitcoin ATMs in China3

CHINA OUTLAWING IT?

http://blogs.wsj.com/moneybeat/2014/04/14/bitbeat-bitcoins-status-in-china-not-so-black-and-white/ http://www.cnbc.com/id/101583758 http://www.reuters.com/article/2014/04/16/us-china-bitcoin-idUSBREA3F0MK20140416

Prices

UPDATES

Digital Currency Entrepreneurship & Startups

A ROUGH MONTH

!!

Auroracoin, a Litecoin derivative, introduced at $100,

launched via “Air drop” on March 25 for ~$11 ($300 for each citizen) and now sits

at ~$1

Bitcoin Litecoin

Auroracoin Ripple

Digital Currency Entrepreneurship & Startups

CoinTerra

Mines about $230,000 to $260,000 worth of Bitcoins a dayCloud Hashing

250 customers switched to alternative-currency mining machines

KnCMiner

Saw new sales shrink by 30 percent in the past three weeks

LOSING MONEY MINING

2013: $25.2M/week

2014: $14.9M/week

Global Miner IncomeGlobal Income

Global income has fallen from $25.2M a week to $14.9M in one quarter

• Less lucrative http://www.sfgate.com/technology/article/Bitcoin-mining-leaves-some-speculators-in-a-hole-5398031.php • http://www.pymnts.com/news/2014/bitcoin-mining-train-losing-steam-as-some-face-cash-losses

Security

UPDATES

Digital Currency Entrepreneurship & Startups

Exchanges were taken offline and the official Windows client was deemed vulnerable. Unlucky individuals saw their wallet keys stolen by hackers.

HEARTBLEED HACKING

Disruptions

• Exchanges go offline http://techcrunch.com/2014/04/09/what-bitcoin-users-need-to-know-about-heartbleed/ • http://motoringcrunch.com/news/bitcoin-owners-devastated-over-heartbleed-infiltration/10012555/

Thanks, Lab Zero (our host)

Michi Kono

Visit our host at http://labzero.com

Visit the Meetup page at http://meetup.com/digital-currency/

Contact the author at michi.kono@coinposit.com