Today, we bring to you 3 Developments in the World of Bitcoin. All of which happened within a 24 hour period. Bitcoin is still remarkably new, and people are still getting the hang of it. They’ve been given this great and wonderful tool, While some, Like Mike Tyson, who is taking a very active role in the development and growth of bitcoin, others are figuring out how to milk the system and create some sort of fortune of their own. Which Brings us to the first development in the world of bitcoin.

 

Mt Gox CEO charged with embezzling £1.7m worth of bitcoin

The first 1st development in 3 Developments In The World of Bitcoin is the MT Gox embezzlement. It looks like there some trouble in paradise for Mt Gox, a bitcoin exchange based in Tokyo, Japan. Mt Gox launched in 2010, and by 2013, they were handling over 70% of all bitcoin transactions.  The Former CEO, Mark Karpeles, has been charged with embezzlement by Japanese Prosecutors. Karpeles is said to have embezzled ¥321 m. Which is roughly around $2.6 Millions. This act of thievery caused Mt Gox to collapse in 2014 after realizing the incredible shortfall in customers funds.

Karpeles transferred the funds straight from the MT Gox bank account into a number of separate accounts in 2013. Karpeles used the money for a number of things. Including, licenses for 3D rendering software of some sort. He also apparently splurged a little and spite quite a bit of money on a custom-built bed. Perhaps that’s what his motivation was all along. I can only imagine the conversations he had in his head. “Hmm…If I embezzled $2.6 million from my own company, I can get that bed that I really want. Then maybe, just maybe, I might get a good nights sleeps.” I gotta say, It is a good argument. A good night’s rest is very important. Or Perhaps he couldn’t sleep at night on his regular bed from all the guilt and shame he had from doing something he knew was wrong.

Of Course, like any good criminal, Karpeles has completely denied any and all charges against him. According to Yomiuri Shimbun newspaper, Karpeles said that he had every intention of paying the money back (Of Course he did).  I for some reason have the hardest time believing that Mark Karpeles had every intention of paying back $2.6 million. It just sounds like he got caught with his hand in the cookie jar, and is just trying to offset the blame. “No Mom, the cookie is not for me. Dad asked me to get him one.” said, every guilty child ever.

The Allegations against Mark Karpeles and Mt Gox have infuriated a lot of people. Including the vast majority of the bitcoin community. Gavin Anderson, the Chief Scientist of The Bitcoin Foundation had a some things to say about all this. “He had (has) the ego of someone wanting to prove themselves, some antisocial behaviors, some social behaviors, and everything in between. He’s still a complete mystery to me, and absolutely unpredictable. He’s a maverick, and that’s coming from someone who knows people (in my opinion) pretty well,” said Gavin. It’s truly unfortunate to see how to actions of one greedy man effected the lives of many. Mt Gox was a great service, and Mark Karpeles took advantage of his position and ruined it for everyone. I will tell you one thing. The competitors that Mt Gox had are probably rejoicing. 70% of all bit  coin business went up for grabs.

 

The Risk of Benevolent Dictatorship in Bitcoin

The 2nd Development in 3 Developments In The World of Bitcoin would be the idea of Benevolent Dictatorship. As we mentioned before, the bitcoin industry is still a bit of a spring chicken. It benefits many, but also creates new potential for the less morally sound. New opportunities and ways for people to take advantage of the system. Benevolent Dictatorship is an idea that has become a huge topic of discussion throughout the bitcoin community. There’s a number of issues associated with Benevolent Dictatorship that all sort of gravitate around the potential of great moral failure. Adam Back Talks about a few things to consider when discussing Benevolent Dictatorship. They are:

  •  The Potential of the Bitcoin Economy
  • The Pressure that Comes with Being the Arbiter of the Bitcoin Community
  • The Possible Influence of Criminal Organizations over the Arbiter

The Potential of the Bitcoin Economy

In an Interview, Adam Beck talks about how Bitcoin, can go from a $4 billion economy to a $4 trillion economy if bitcoin continues at the pace its going and sees adoption in certain segments for international settlements. Or perhaps even a competitor for something like gold. he makes a great point. Bitcoin has only been an open source software for about 6 years, and it’s already built so much momentum. People are now starting to see Bitcoin as a valid currency that can be very beneficial, and not just some weird computer geek credits. Take the word bitcoin for example. If you were to ask a regular person on the street a few years ago if they have ever heard of bitcoin, they’d probably think you were talking about the coins used in a Super Mario game. Now, they might actually give you a real answer.

 

The Pressure that Comes with Being the Arbiter of the Bitcoin Community

Beck Also talks about how you wouldn’t even want to be the Dictator of the Bitcoin Economy. You would have the biggest target on your head. Everyone, and I mean everyone would be trying to get a piece of your pie. Beck says, ” You would be subject to immense amounts of international pressure, potentially blackmail, people bugging your equipment, [people] trying to sabotage [you.]” With that kind of hostility coming at you from all sectors you have to ask yourself; Is it worth it? I personally don’t think so.

 

The Possible Influence Of Criminal Organizations Over the Arbiter

The problem of having one person in this sort of position is that you run the risk of them having their own agenda. An Agenda that could be influenced by criminal organizations or some foreign government that could have a conflict of interest. Just Imagine the amount of damage if a country like North Korea or a terrorist group like ISIS would do if they somehow got into a position of influence in the Online Bitcoin Community. It would be absolutely catastrophic. It would be a new kind of war that we would be fighting. We would no longer be fighting men with guns.  It would be a war against people with cruel intentions and a wifi connection, sitting behind a computer.

Bitcoin Foundation Chief Scientist, Gavin Anderson, feels that we need to “evolve” past the point of Benevolent Dictatorship. He says. “So that no one person or group of people feels like the whole weight of the system rests of their decisions, so there is more room to make decisions, to innovate and even make mistakes.” It’s good to know that we have people like Gavin Anderson really Shepherding the Bitcoin world, and really fighting to keep it democratic.

 

Bitcoin Wanting to Get Rid of The Banks

The 3rd Development in the 3 Developments In The World of Bitcoin would be people wanting to get rid of traditional banking. . There’s a lot of excitement that is created when a new technological advancement is brought to light. When something really great surfaces. Something that will bring great strides in the never technological race. Of Course, you’re going to have people who will always predict the absolute worse. You know, the kind of people who say robots will take over the world if we continue on this path of recklessness. Those downers who are so encompassed by fear that they feel its best to stop advancing. It’s happened every single time there’s been some major advancement. Whether it be the invention of electricity, the automobile, or the internet. There have and always will be people who say it’s just a fad, and eventually it will die down. A lot of people are saying similar things about Bitcoin. A lot their argument are valid, but like past non-believers, they are coming from a place fear. One thing that a lot of people were excited about when bitcoin first emerged was the possibility of completely replacing the traditional banking system. Which sounds sort undo able now, but people are adamant about making it a reality. There’s 2 things that Bitcoin Users must implement in order to make this dream a reality.

  • Reinvent Personal Banking
  • Find Better Designers 

Reinvent Personal Banking

One of the issues with this whole ‘replace the bank‘ movement is that all the companies out there are trying too hard to be like the banks they are trying to replace.  They’re so hung up on what’s worked in the past, they aren’t realizing that they are being so heavily influenced by the very thing they are trying to destroy. They have to create a new understanding of banking and personal finance. There are people who have attempted this in the past, and have really accomplished nothing but create a traditional banking system with just a few minor difference. These are understandable mistake. The traditional banking system is something that is tried and true. It’s a system that we have used years. How do you all of a sudden introduce a new system to counter the old reliable one? the key to accomplishing this and setting yourself apart is to approach the idea of personal banking as one that has not been approached before. It’s sort of like every time they reboot a film franchise. Take Man of Steel for example. The Director said they approached this film like nobody has ever done it before. They understood the importance of being unique, but at the same time keeping the same spirit of the franchise. With Bitcoin, it’s the same thing. Take the idea of personal banking and approach it like nobody has before.

 

Find Better Designers

One of the things that bitcoin needs in order to actually attract people of all kind, is better designers and more applications. It’s all about the user experience, and making it more accessible to everyone. Take the internet for example. When the Internet just came out, it was amazing. This great new technology opened up a whole new world to what we could as humans could do. The possibilities were all of a sudden endless. The only issue is, the internet was sort of complicated and ugly in appearance. The only people who were truly proficient in the world-wide web were the technological savvy people. It was a great technology, but it really want user-friendly. Sort of like how bitcoin is today. Then came things like instant messaging, and social media sites. Then all of a sudden everyone and there Grandma was on the internet. I kid you not, all Facebook is now in days is a place for people over 50 to re-post things. This once incredibly complicated and fidgety technology is now the social norm for ages 3 and up. Now people can’t get enough of the internet. It’s with them wherever they go. I think bitcoin has the same potential. In ten years or so I could see bitcoin as being something of a social norm. If they work hard at it now. If they tackle general usability, and make it more accessible to the general public.

 

Conclusion

The great thing about witnessing the rise of a new technology like bitcoin, is all the news that is constantly coming out. The refreshing thing about the news is that it’s not just new from large companies, and wealthy people. It’s from all sorts of different kinds of people from various backgrounds. Everyone has the ability to jump into the race, and make some contribution to furthering this great and new technology. There you have it ladies and Gentlemen. 3 Developments in the World of Bitcoin.  Keep your eyes peeled for further posts on this topic and many others. If you’re new to the world of bitcoin, check out some of our other posts relating to this topic. Check Our Resources page for a list of trusted companies, which have received 4 stars or better. Check Our Reviews page for more insight into trusted companies.