Venture Capitalist Wins Bitcoin Auction
Tim Draper, a Silicon Valley venture capitalists, won the recent government auction for a portion of its Bitcoins bonanza acquired through the Silk Road drug bust. Mr. Draper ended up raking in nearly 30,000 Bitcoins, currently valued at about $19 million dollars. It is unknown how much Mr. Draper paid. Apparently, Mr. Draper plans to use the Bitcoins as part of an effort to bring the digital P2P currency to the developing world.
Bitcoin Coming to Emerging Markets in Force?
We mentioned this already, but the development could be so important for the Bitcoin community that it’s worth taking a moment to expound upon it. Tim Draper, the recent winner of the American government’s Bitcoin auction, will use his Bitcoins to expand Bitcoin use in developing countries. Apparently, Tim Draper and his business associates will use the Bitcoins to increase the supply of the currency, making it easier to use and trade. Exactly how this will be done, and specifically how it will be directed towards emerging markets remains unknown. Already, Mr. Draper has made it clear that he doesn’t intend to dump the Bitcoins, which would drive prices south. For people in emerging markets Bitcoin could offer a way to hedge against currencies that are rapidly losing their value.
Bitcoin Leader in Europe Calls for EU Regulation
Jeremy Allaire has called on the European Union to regulate Bitcoins. Mr. Allaire is the head of Circle, a Bitcoin company that serves people who want to use and store bitcoins online. He urged the European Union to update its laws to take into account the emergence of digital currencies. Mr. Allaire argues that doing so will clarify where Bitcoin stands, and will thus provide protection and reassurance for Bitcoin companies and users. So far the European Union has not commented, but the organization’s support would be a huge victory for the Bitcoin community. Undoubtedly, however, some Bitcoin users would prefer that the currency not be regulated.
Russia Warming to Bitcoin? It appears so
Russia isn’t exactly known for its warmth. Whether discussing the harsh winters that stretch for months on end, the country’s tendency to invade its neighbors, or its recent decision to bar the “House of Cards” from filming in the national security room, Russia isn’t known among its peers for being a warming place. It does appear, however, that a certain thaw is occurring in regards to the country’s stance on Bitcoin. Initially, the Russian government was very suspicious of the cryptocurrency, going as far as to say that it was illegal. Now, the Central Bank has said that it will not block Bitcoin and is instead going to take some time to gather information. Despite the Russian government’s previous promises to crack down on Bitcoin, the currency has garnered quite the following in the country.
Expedia: Bitcoin Usage Exceeding Expectations
Some weeks ago Expedia started taking hotel bookings in Bitcoin. Many wondered if it was a publicity stunt and even Expedia itself seemed uncertain about how much revenue would be generated by the currency. So far, the company says, revenues from Bitcoin have been exceeding expectations. The company has yet to release specifics, but its leaders are confident that the Bitcoin move will pay off.