[2015-07-01] Bitcoin Foundation Blew 5800 BTC in 10 Months

[tyz]

The Bitcoin Foundation(TBF) Founding Director Jon Matonis explains the $ 4.6m loss in 2014. Funds had been drained by exorbitant monthly bills, conferences and the falling cost of bitcoin. Today the ex-VISA worker advises Bitcoin entrepreneurs on funding.

https://www.cryptocoinsnews.com/bitcoin-foundation-blew-5800-btc-10-months/

[unamis76]

This is just revolting

Tax documents from 2013 show employee compensation, conference costs and legal fees as the largest expenditures

Absolutely revolting when one can afford absurd employee compensations and then blame bankruptcy on "the declining BTC/USD rate" It remembers me the corrupt government that governs itself, expenses paid by taxes, "business" trips everywhere in the world in first class, high end cars for their personal (and their families) transportation... And then they blame "bankruptcy" on everyone else, while still living large. And demand more taxes and austerity.

Sorry about the rant, but this is completely absurd and makes me disgusted... If they can't live large, well... Cut the budget down and spend less. But there's nothing left to be done for this Foundation unfortunately

[odolvlobo]

The title of the article is an exaggeration. According to John Matonis, the operating expenses were around $150,000 per month. The rest of the money was lost because it was held as BTC as the price dropped from $673 to $264.

[p3yot33at3r]

The Bitcoin Foundation is FAIL.

Can we get rid of it now please? Everyone pretty much ignores it anyway.......corrupt as banks.

[jbrnt]

The title is an exaggeration. According to John Matonis, the operating expenses were around $150,000 per month. The rest of the money was lost because it was held as BTC as the price dropped from $673 to $264.

I agree, the title is misleading. TBF didn't spend the $4.6 million. Most of the money "lost" is the fiat book value of the held bitcoins. This is "present value" book keeping method is required for tax purposes. If bitcoin price were to reach $800, TBF would make massive a "profit".

[qwk]

TBF didn't spend the $4.6 million. Most of the money "lost" is the fiat book value of the held bitcoins. This is "present value" book keeping method is required for tax purposes.

Correct. The Foundation never established a revenue stream that matched their expenses. They just believed they could overspend because Bitcoin was going to the moon anyway

If bitcoin price were to reach $800, TBF would make massive a "profit".

Sorry no, they had to sell their BTC to pay for running costs, so they won't make a profit from an increase in BTC price now.

[Bit_Happy]

The Bitcoin Foundation is FAIL.

Can we get rid of it now please? Everyone pretty much ignores it anyway.......corrupt as banks.

Sadly, the media (and sometimes the government) looks to the Bitcoin Foundation as a "voice" representing Bitcoin. Perhaps, someday we can have a much better way to "communicate" with the world.

[qwk]

Sadly, the media (and sometimes the government) looks to the Bitcoin Foundation as a "voice" representing Bitcoin. Perhaps, someday we can have a much better way to "communicate" with the world.

Define "we" before even thinking about a better way.
TBF as spokesperson for Bitcoin is the best we have.
Not because they're doing such a great job, but because they exist.
I personally doubt that anyone could do much better.

[LiteCoinGuy]

Sadly, the media (and sometimes the government) looks to the Bitcoin Foundation as a "voice" representing Bitcoin. Perhaps, someday we can have a much better way to "communicate" with the world.

Define "we" before even thinking about a better way.
TBF as spokesperson for Bitcoin is the best we have.
Not because they're doing such a great job, but because they exist.
I personally doubt that anyone could do much better.

https://coincenter.org/

they can do it too.

[qwk]

Sadly, the media (and sometimes the government) looks to the Bitcoin Foundation as a "voice" representing Bitcoin. Perhaps, someday we can have a much better way to "communicate" with the world.

Define "we" before even thinking about a better way.
TBF as spokesperson for Bitcoin is the best we have.
Not because they're doing such a great job, but because they exist.
I personally doubt that anyone could do much better.

https://coincenter.org/

they can do it too.

Depending on the definition of "we".
I doubt that they will ever speak for me.
Where's the opportunity for participation?
Oh, you can contribute, and you even get a t-shirt

[Bit_Happy]

Sadly, the media (and sometimes the government) looks to the Bitcoin Foundation as a "voice" representing Bitcoin. Perhaps, someday we can have a much better way to "communicate" with the world.

Define "we" before even thinking about a better way.
TBF as spokesperson for Bitcoin is the best we have.
Not because they're doing such a great job, but because they exist.
I personally doubt that anyone could do much better.

"We" (still undefined, for now) might not need any type of Bitcoin Foundation. If there is a legit need, then (in theory) "the market" will fund an efficient organization, since any corrupt, inefficient group cannot compete (long-term) with a clearly better one.
Isn't that how a 'free market' is supposed to work? 

[unamis76]

Sadly, the media (and sometimes the government) looks to the Bitcoin Foundation as a "voice" representing Bitcoin. Perhaps, someday we can have a much better way to "communicate" with the world.

Define "we" before even thinking about a better way.
TBF as spokesperson for Bitcoin is the best we have.
Not because they're doing such a great job, but because they exist.
I personally doubt that anyone could do much better.

https://coincenter.org/

they can do it too.

Suddenly many people are having the need to be or to replace a the Foundation... After what's happened I'm always going to doubt such kind of organizations, I don't see a bright future for these things. They'll most probably either end up doing nothing or doing wrong. And it's not just because Garzik is there that they're going to make a good job...

[lucaspm98]

Although these numbers are totally exaggerated given the huge price drop in bitcoin that year, it still goes to show that central governing authorities quickly go towards lavish spending and corruption when given the chance.

[p3yot33at3r]

It seems many people are confused about what the definition of Foundation actually is, as well as what it's purpose is. A Foundation is called such because it is funded:

"an institution financed by a donation or legacy to aid research, education, the arts, etc".  Profit or loss does not enter into the equation at all.

In other words, they are being funded to live lavish lifestyles, flutter away funding, have meetings behind closed doors & make decisions that affect us all & generally do what they want without any recrimination from anyone whatsoever.

The voice of Bitcoin?  I think not. What a joke 

[bryant.coleman]

Although these numbers are totally exaggerated given the huge price drop in bitcoin that year, it still goes to show that central governing authorities quickly go towards lavish spending and corruption when given the chance.

What did you expect when ex bankers were rushed to the top positions in the Bitcoin Foundation? Jon Matonis worked many decades with institutions such as the Sumitomo Bank and Visa. Old habits die hard. It is not surprising at all, to see these people throwing away money, just like what they did when they were with the banks.

[p3yot33at3r]

Although these numbers are totally exaggerated given the huge price drop in bitcoin that year, it still goes to show that central governing authorities quickly go towards lavish spending and corruption when given the chance.

What did you expect when ex bankers were rushed to the top positions in the Bitcoin Foundation? Jon Matonis worked many decades with institutions such as the Sumitomo Bank and Visa. Old habits die hard. It is not surprising at all, to see these people throwing away money, just like what they did when they were with the banks.

+1 

[jorjito25]

There simply was a collision by values of the cypher-punks/early adopters/fans and the values help by those brought into the Foundation. BTC is not ready to be treated as your normal growing start-up company.