We all bemoan the lack of retailers currently accepting Bitcoin.  But I wonder - how many of us are really ready right now to pay with Bitcoin?  If not, what are we waiting for?  How do we expect retailers to begin accepting a currency that even some of the most devout adherents don't carry in their wallet (or smartphone)?

My Trezor is great for storage, and for spending via online, but not so useful at my local coffee shop.  Not that my local coffee shop takes Bitcoin, but can you blame them?  I'm (one of) the biggest Bitcoin fans they serve, and I don't carry any with me. 

I realized today that I have been contributing to that issue and pledge from here out to always have a hot wallet installed and ready to spend on my phone.

The IRS's ruling on virtual currencies specifies that they adhere to the definition of a convertible virtual currency as specified in FINCEN's document FIN-2013-G001.

According to that document, part of the definition of a virtual currency is this stipulation:

"In particular, virtual currency does not have legal tender status in any jurisdiction."  

It's clear from context that "any jurisdiction" includes countries other than the US. So, any jurisdiction out there want to step up and bestow legal tender status on Bitcoin so it can be exempted from the new rulings?

 

[Moist Satan Hooka]

Anagram for Satoshi Nakamoto..... wait for it.... prepare yourself.... don't say I didn't warn you!

Moist Satan Hooka

Boogah! Boogah!     

 

For those looking for a relatively easy method of securing your long-term bitcoin savings, without requiring a non-Windows install, here's what I do.  Feel free to pick it apart. 

One-time steps:
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- On a clean PC, install the bitcoin client and create one or more addresses via the "New..." button.  Email these addresses to yourself via GMail or similar.
- Close Bitcoin and encrypt the Wallet.dat file (for instance with 7-zip, entering a strong password)
- Make copies of this file (burn to CD, email to yourself via GMail or other online email, etc.)
- Destroy the wallet.dat file via secure erase (SDelete works well, http://technet.microsoft.com/en-us/sysinternals/bb897443)

Ongoing steps:
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- When your main bitcoin balance gets larger than you like, send the extra to one of the addresses you emailed to yourself.

Some notes:
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- What is a clean PC? Well ideally it's a fresh install of Windows 7 SP1, restarted in Safe Mode with Networking.
- There's no need to access the encrypted wallet file unless you either want to spend from it, or desire additional addresses.
- You really only need one address from the encrypted wallet of course, but I like to keep each payment separate for my own accounting.
- Be careful when you select your password! It should be strong (http://www.microsoft.com/security/online-privacy/passwords-create.aspx), memorable, and NEVER REUSED ELSEWHERE!  Recent database hacking successes should teach us all that reusing passwords is a Bad Idea.

Apologize if this has bee discussed before, but if so I missed it.  With the recent uptick in discussion on namecoins, I began to wonder if a similar system couldn't be used for software licensing (especially PC games and shareware programs.)

For want of a better name, I'll refer to these as gamecoins, but keep in mind they could be used for any licensed software.

Similar to namecoins, gamecoins would share much of the architecture design of bitcoins, would be purchased only for bitcoins, and mine-able as well.

A software developer who desires to offer his software for gamecoins would set a price for a) new licenses, and b) license transfers.  They may set a 0 price for transfers, in which case they make income only off the initial purchase.  Or, they may set a transfer price (fixed or percentage of sale) for transfers, in which case they make a continuing trickle as their game spreads, rather than filling the coffers of Gamestop.

As the software runs, it can verify current ownership from the block chain against the users' private keys.  Sharing of private keys would of course be possible but would result in anyone you shared them with having the ability to transfer all your licenses away from you.

This kind of system would be beneficial to end users:
  - DRM restrictions would be essentially gone - install on as many PCs as you like and share your gamecoin wallet between them.
  - Easily sell games you no longer use, with no risk of fraud/chargebacks
  - Buy used games with confidence - download from the software developer for free and activate via purchase of license 

For the publisher:
  - Eliminate the Gamestop leech, and instead make some profit from transfers (using some of this to pay for continuing software download availability)

Anyways, just musing out loud.  Feel free to tear it apart.