Mt. Gox — One Year Later

One year ago yesterday, I broke the news of the ~$480 million loss at Mt. Gox, and exposed the company’s intentions to cover up the damage via a hastily crafted “Crisis Strategy Draft.” After authenticating the document, and realizing the sheer magnitude of the bankruptcy, I concluded: “I believe this will be catastrophic for Bitcoin, both as a currency and as a fledgling industry.”

I was wrong. Bitcoin marches on, unencumbered.

That no one else (to my knowledge) acknowledged yesterday’s anniversary of Gox’s collapse speaks to our collective priorities and bitcoin’s under-appreciated strength. Six months after the Silk Road shutdown, and one month after the arrest of Bitcoin Foundation Vice Chairman, Charlie Shrem, the industry’s largest exchange lost 7% of the bitcoin money supply — a figure that still seems surreal to me. Yet just one year later, we are in the midst of another record quarter of bitcoin venture capital investment, progressing steadily towards US-regulated exchanges and a BitLicense, and lean upon bitcoin security ventures like BitGo and Xapo, that hadn’t even launched yet.

The growth and progress has been simply staggering.

But as I look back on my pessimistic forecast for bitcoin in the Gox haze, I can’t honestly say that I’d have predicted a different or “more measured” (as some criticized me for at the time) outcome for the industry. It is shocking that we ultimately emerged unscathed following that absolutely brutal six month stretch of bitcoin’s evolution. I think we may under-appreciate this chapter of the bitcoin miracle more than any other.

Our industry was like a troubled teenager that got expelled from school, arrested for a DWI, and then gambled away his parents’ money while under house arrest, and yet somehow still got to live at home and drive a Range Rover to his new expensive prep school while he was on probation. Some people might still look at him and say, “that kid’s bad news”, but his parents, who saw the potential from a young age, would refuse to give up on him for mere youthful indiscretions and stay the course.

I find it telling that on the one year anniversary of Gox, we heard nothing from the media about bitcoin’s tarnished brand, only about the LA ad agency which is starting to promote it.

Bitcoin marches on, unencumbered.

Poach Me From the Bit!

In the market for a summer finance intern who has developed an expertise in the bitcoin / fintech market? A well-polished business writer, social media guru, and all around workhorse? I’d love to talk! My name is Andrew Thomas, and I’m a junior at Boston College majoring in finance and information systems. I’m the co-founder and president of the BC Bitcoin Club, and for the past year, I’ve curated all of the news summaries, job postings and events you see “below the fold” in the Daily Bit. As lead editor, I’ve helped TBI double his subscriber base and triple his twitter following, but in the coming months, I hope to hand over the reins to my replacement as I begin an internship in financial services. Please email me at thomashr@bc.edu if you think I’d be a good fit for a position at your company!

For Entrepreneurs

The MIT E-Lab is a well established (20+ year) program that helps startups by matching them with MIT & Harvard business school students for a semester. The E-Lab is now looking for cryptocurrency related startups at various stages, so apply if you think this could help your efforts. (You don’t need to be local, but a c-level exec has to be in Cambridge frequently.) To apply, or for more info on E-Lab visit http://elab.mit.edu/.

Events

MIT Bitcoin Expo — March 7–8th

Get your tickets today — MIT is hosting its second annual Bitcoin Expo on March 7th and 8th!

This premiere student-run event, hosted by the MIT Bitcoin Club and Wellesley Bitcoin Club, features two days of panels and presentations from leading professionals and academics in the cryptocurrency space. You’ll hear from engineers who maintain and develop the core Bitcoin protocol, academics on the cutting edge of cryptocurrency research, and founders and executives of some of the hottest million-dollar startups in bitcoin.

Join hundreds of students and professionals as we learn about the most recent and upcoming legal and technical developments in Bitcoin. Delve into the heart of recent developments with experts like Gavin Andresen, Jeremy Allaire, Adam Ludwin, Charlie Lee, Constance Choi, Peter Todd, Jerry Brito, Joi Ito, Andreas Antonopoulous and many, many more.

Day One will provide insight into the Bitcoin mainstreaming process as well as the legal and security challenges for Bitcoin companies to overcome. Day Two will detail the inner workings of bitcoin and the new technologies that are emerging as the industry develops. Join us as we strive to understand the present and build the future.

The event is free for students and only $125 for 2 days for professionals.

For more information visit mitbitcoinexpo.org

Inside Bitcoins Conference and Expo — Berlin (Mar. 5–6), and New York (Apr. 27–29)

Inside Bitcoins is the largest bitcoin and blockchain technology focused event series worldwide. At each event you’ll hear about the latest challenges, trends, and opportunities in the industry from experts including Chris Odom, Co-Founder and CTO, Monetas; Marshall Swatt, Chief Technology Officer and Co-Founder, Coinsetter; Dan Morehead, Founder & CEO, Pantera Capital Management; Gil Luria, Managing Director, Wedbush Securities; and more.

Plus, TBI Daily readers get 10% off the Berlin and New York events with code TBIDAILY. See you there!

Jobs, Jobs, Jobs

Summer Internship Opportunity: The Future of Transactions, Participation & Trust
-Join IDEO’s Future Lab at the Harvard i-lab for a paid summer internship exploring trust in transactions, bitcoin, blockchain, micropayments, and the future of participation platforms.
-Participants will be placed on teams, learn skills from venture designers, and access emerging technology experts. Student ventures may become part of IDEO’s Start-Up In Residence Program or be funded by corporate sponsors.
-We want students with a mix of backgrounds. No prior experience required.
-Key Dates:
• Applications due February 25
• Make-a-Thon weekend (required participation) February 27 through March 1st
• Summer Internship June 1 to July 31
-Apply Here and direct questions to jgerber@ideo.com

Bitnet, San Francisco, Belfast, London (VC-backed)
-Leading digital commerce platform & former Visa team.
-Open positions: Engineering (Customer Success, Lead UI, Product, DevOps), Sales Director (EMEA), Sales Engineer (San Francisco)
-Check out Bitnet (https://bitnet.io/careers.html) and email jobs@bitnet.io

Coinbase, San Francisco (VC-backed)
-Largest “universal services” bitcoin company.
-Open positions: Security Engineer, Software Engineer (2–3 years mobile product development), Regulatory Compliance Investigator, (1 year conducting SAR investigations)
-Check out Coinbase (https://www.coinbase.com/careers/)

BitGo, Palo Alto (VC-backed)
-The leading Bitcoin multi-sig security company
-Open positions: Back-end / Front-End / iOS / Security Engineers, UX Designer
-Check out BitGo (www.bitgoinc.com/jobs) and email jobs@bitgo.com

Bolt, San Francisco (VC-backed)
-Stealth startup focused on consumer applications of Bitcoin.
-Open positions: Security Engineer, Ruby Engineer, UI/UX Designer, Executive Assistant.
-Check out Bolt (bolt.com) and email jobs@bolt.com.

Elliptic, London (VC-backed)
-Full-service bitcoin custodian.
-Open positions: Data Scientists and Front-end developers.
-Learn more and apply at elliptic.workable.com

Today’s Tid Bits

BitGo Secures First Ever Comprehensive Bitcoin Theft Insurance for up to $250,000
http://cointelegraph.com/news/113556/bitgo-secures-first-ever-comprehensive-bitcoin-theft-insurance-for-up-to-250000
BitGo, the multi-sig bitcoin security firm, announced today that it has partnered with the A-rated XL Group insurance companies companies to provide comprehensive coverage on its customers bitcoin funds. All of BitGo’s paying customers will be eligible for protection under the XL policy for up to $250,000 in covered theft claims. BitGo customers who opt in for the program will be protected from errors, or omissions of BitGo technology, processes, and employees, including external hacking incidents and employee theft.

Bucks to Bitcoin: Top Exchange Platform Fees Compared
http://www.coindesk.com/bucks-to-bitcoin-top-exchange-platform-fees-compared/
CoinDesk explored the fees of all major seven platforms based of $1,000 transactions. ItBit came in at the highest with a maximum purchase fee of $5.00, Bitstamp had $4.60, while BitFinex, Bitstamp, and OKCoin all had $2.00, and Coinbase and LocalBitcoins were fee less.

New Hampshire Lawmakers Debate Accepting Bitcoin for Tax Payments
http://www.coindesk.com/new-hampshire-bitcoin-tax-payments/
New Hampshire’s state legislature held two hearings earlier this month, which focused on how the state could create a easy way for residents to pay taxes and fees using bitcoin. The hearings were in response to a bill being proposed by state representative Eric Schlein that would allow the state to accept bitcoin, which is currently being weighed by the New Hampshire General Court Ways and Means Committee.

Is Bitcoin Speculative Foolery or a Financial Services Breakthrough?
http://www.entrepreneur.com/article/243071
Carol Roth of Entrepreneur interviewed Brian Kelly, author of the new book “The Bitcoin Bing Bang,” to discuss why Bitcoin is a breakthrough of financial services. Kelly explained the differences between small ‘b’ bitcoin and big ‘B’ bitcoin, and explained how it’s technology eliminates the middle man. Kelly argues that Bitcoin will help globalize small businesses, but did mention that the volatility of the price remains to be an issue.

T-Mobile Poland Trials Bitcoin Top-Ups for Mobile Customers
http://www.coindesk.com/t-mobile-poland-trials-bitcoin-top-ups-for-mobile-customers/
In Poland, T-Mobile customers can now purchase prepaid cellphone credit with bitcoin. T-Mobile partnered with local bitcoin payment processor InPay S.A., to roll out the three-month trial service. T-Mobile customers visit InPay’s web page and add bitcoin funds by selecting the equivalent amount in Polish zloties (PLN), then send funds via a QR code or bitcoin address provided. The entire process takes about 30 seconds and does not require the input of personal information.

WordPress Drops Bitcoin Payment Option, Says it ‘May Return
http://cointelegraph.com/news/113551/wordpress-drops-bitcoin-payment-option-says-it-may-return
WordPress has removed its Bitcoin payment option and has not really defined if it will return or not. The news was made without a formal announcement from WordPress or its payment processor, BitPay. Matt Mullenweg, WordPress co-founder, said putting the option back wasn’t a high priority because bitcoin payments were of a low volume compared to other options.

Have a tip or feedback? Email me! (2bitidiot@gmail.com)