Opinion Bitcoin In Trouble?

Discussion in 'Newsroom' started by Quitline, Jan 4, 2016.

  1. 2017/12/15 - Decred v1.1.2 released! → Release Notes  → Downloads
  1. Quitline

    Quitline New Member

    Dec 17, 2015
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    Here is an interesting read,

    Bruce Fenton, executive director at the Bitcoin Foundation, opened its December 15 board meeting with a sense of urgency.

    "We need additional funds if we wish to retain employees."

    The numbers didn't look good. In two years, the foundation had seen at least $US7 million evaporate. As of November 30, its total assets stood at $US12,553.06.

    To sustain the Bitcoin Foundation's operations, which have included lobbying, putting on conferences, and providing technical support for the digital currency, Fenton urged the group to find ways to raise money quickly. They considered cold- calling ex-members, and Fenton said he's working on marketing materials for prospective donors to explain the organisation's purpose. "There is no material saying what the foundation does," he said.

    Eventually, Jim Harper, a board member and senior fellow at Cato Institute, a think tank, interjected. He questioned whether the foundation was offering its members enough value to warrant its existence, according to minutes released on December 21 from the meeting. "Asking for money is just throwing money away," Harper said. Olivier Janssens, another director, suggested that the organisation may not be "fixable."

    A volatile symbol
    The Bitcoin Foundation has become a symbol of the challenges facing the digital asset it was designed to steward. While advocates have promoted bitcoin as a global, decentralised currency for the internet age, it's proved to be more volatile than many penny stocks. Its role in money laundering and other illegal activity is a constant source of questions, and the price fluctuates with each regulatory clampdown or criminal investigation. In November 2013, it reached a high of $US1137 before falling to $US183 in January 2015 following a slew of problems, including the collapse of Mt. Gox, once the world's largest bitcoin exchange.

    Beyond financial trouble, two former Bitcoin Foundation board members have been charged with crimes. Mark Karpel s, former chief executive officer of Mt. Gox, was arrested in Tokyo and charged with embezzlement in September. Charlie Shrem, former vice chairman of the Bitcoin Foundation, resigned before pleading guilty to helping launder money for transactions through the illicit online marketplace Silk Road. He's currently serving two years in a federal prison.

    Several people still involved with the Bitcoin Foundation said the wounds may never heal. "I don't know if the foundation has a future," Gavin Andresen, a former board member who now holds the title of chief scientist, wrote in an e-mail. "It is very difficult to regain trust once trust has been lost, and the illegal behaviour of two of the foundation's former board members destroyed a lot of trust."

    When the Bitcoin Foundation was formed in 2012, the group was intended to give legitimacy to a relatively unknown technology. By the end of that year, bitcoin traded at about $US13. The organisation grew almost in lockstep with the popularity of bitcoin. Comprising pioneering coders and entrepreneurs behind the digital currency, the Bitcoin Foundation would soon become a familiar face in Washington, spreading the gospel of bitcoin around the world.

    US lawmakers and congressional committees appreciated having a central figure to represent bitcoin, but foundation members have sometimes become punching bags for politicians. At an event in 2013 attended by Andresen, who was appointed to lead bitcoin development by the anonymous creator, Satoshi Nakamoto, a Justice Department prosecutor compared bitcoin with child pornography, according to a report in the Washington Post.
     
  2. jy-p

    jy-p Sr. Member
    Organizer

    Jan 2, 2016
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    The Bitcoin Foundation (TBF) suffers from a classic problem with donation-funded entities, e.g. not-for-profits - a few people have large salaries, which drains the funds available to the organization. This is typical of many not-for-profit companies that beg for donations: sure, the company may not be able to retain profit, but the employees can siphon off disproportionately large salaries.

    Decred's dev org will pay for deliverables, mostly software development early on, and we will not be paying people in suits high salaries to look pretty for the camera, as this is a waste of money. I will never draw a salary for the work I perform for Decred or its dev org, Decred Holdings Group LLC, so you can be confident the failure mode observed with TBF will not occur with Decred.
     
  3. Quitline

    Quitline New Member

    Dec 17, 2015
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    That does sound reassuring, I do like the Idea of having a system that benefits the many rather than the few.
     
  4. Renato Abreu

    Renato Abreu Jr. Member
    Advocate (Twitter)

    Jan 3, 2016
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    Programador
    Brazil
    Decred is the revolution of digital currency. Differentiated initiative for a transparent setting.
     
    Jazzah likes this.
  5. Gorei

    Gorei New Member

    Dec 28, 2015
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    Thumbs up for you guys! This is why I really like Decred and you devs.
     
  6. Purelis

    Purelis New Member

    Jan 8, 2016
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    Decred ist better than btc
     
  7. Oscar Fotaroma

    Oscar Fotaroma Jr. Member
    Advocate (Facebook)

    Jan 16, 2016
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    in other point of view, this issue gonna make decred shine even more
     

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