2012-11-29 bbc.co.uk - Piracy site Newzbin2 gives up and closes

[meanig]

Article about Newzbin2 closing after legal and financial trouble.

http://www.bbc.co.uk/news/technology-20540853

Newzbin2, once one of the web's most popular sites offering links to pirated content, has decided to close.

It comes 15 months after a UK court ordered internet service providers to block the site, and amid global pressure from copyright holders.

Internet rights groups said the move was "pointless" in stopping piracy.

In a statement, Newzbin2's owners said it had struggled to cover costs because payment providers had "understandably lost their nerve".

"Newzbin2 was always hoped to be a viable underground commercial venture," the site said.

"The figures just don't stack up."

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"All our payment providers dropped out or started running scared," the site said.

It added that accepting Bitcoin - an electronic, hard-to-track currency - had not been an option because it was "just too hard for 90% of people".

Pretty pathetic that they wouldn't give Bitcoin a chance even for the 10% of their customers who "got it".

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[FreeMoney]

This is what happens to pirates who won't accept bitcoin.

[evanesce]

This would have been the perfect opportunity for bitcoin's fundamental purpose!!!  I have no idea why they decided against THE OBVIOUS alternative payment system!

[BkkCoins]

I think lack of knowledge is the primary culprit.

The thing is it could have started out as a few percent and they could have launched a Bitcoin publicity/education campaign that would have gradually pushed that figure up. They had the chance to be a forerunner and they threw it away.

My guess is that within the next year there will be a significant successful file download service that uses Bitcoin to good effect and these guys will be kicking themselves. They could just be too battle worn and weak and decided they'd rather cut and run than keep up the fight.

Part of the problem is that many still see using the std client as the way to get into Bitcoin when it is much easier for beginners to use blockchain.info or similar services. Using one of their instant deposit methods and wallet, now it's pretty darn simple for beginners. Probably easier than using Paypal for those who live in suitable areas.

I really think they mis-judged the ease-of-use factor - though at this time they may be right about small market size it is growing every day and restructuring their business would seem preferable to just giving up.

It may also be the IP blocks that make it unfeasible. A better plan might be to start again with Bitcoin and a Tor based interface thus laying the ground work for a much more censorship resistant approach. I'm not suggesting transfer files via Tor, just finding, account mgmt. I have an idea how to do the file transfers anonymously and direct, outside Tor, but I haven't had the chance to write code and test it yet.

[evanesce]

Not only did they give up, but they threw away the paying users top off credits they had with no refund or compensation, and suddenly with no notice.