2012-12-27 arstechnica.com - The top six business of technology stories of 2012

[Akka]

The top six business of technology stories of 2012 (Why six? Why not!)

#5: Bitcoin goes mainstream

If 2011 was the year that Bitcoin first appeared on many people's radars (including Sen. Chuck Schumer (D-NY)), then 2012 was the year that the cryptocurrency began to, slowly, but surely, move into the mainstream. Ok, your non-techy friends aren't going to be ditching their greenbacks anytime soon—but there were some signs that the digital cash may be strengthening and headed towards more ease-of-use.

First, the currency's exchange rate is on the rise. In April 2012, a Bitcoin was worth just $4.50. By July it had nearly doubled. Today, one Bitcoin is worth about $13.50. That's a massive increase by any measure. Second, in August, a company announced that it would be creating Bitcoin-based debit cards for all to use. Then, the Bitcoin Foundation threw open its doors hoping to spread the currency's gospel far and wide. WordPress started accepting Bitcoins, too.

Finally, perhaps the most exciting development is that Bitcoin Central, which operates in France, has been authorized by local authorities to operate as a bank under French law. As we reported in December, "The accounts will also be integrated with the French banking system, so users can have their paychecks automatically deposited into their accounts and converted to bitcoins."

Still, Bitcoin isn't perfect and definitely has some hurdles to overcome. In March, the lack of "chargebacks" prompted a lawsuit between two Bitcoin-related companies. In September, a Bitcoin company sustained a theft worth $250,000. And worse still, an August 2012 academic study on Bitcoin found that it had helped fuel $2 million per month in illegal drug sales online. So don't liquidate your Uncle Sam-backed bucks just yet.

Source: http://arstechnica.com/business/2012/12/the-top-6-business-of-technology-stories-of-2012-why-6-why-not/

[kiba]

Bitcoin is being used in the underground economy is a good thing.

The way bitcoin wins is that everyone use it, even scumbag congressmen and the CIA.

[cbeast]

Bitcoin is being used in the underground economy is a good thing.

The way bitcoin wins is that everyone use it, even scumbag congressmen and the CIA.

Who says they are not already using Bitcoin for shady deals?

[dree12]

Bitcoin is being used in the underground economy is a good thing.

The way bitcoin wins is that everyone use it, even scumbag congressmen and the CIA.

The CIA almost certainly uses Bitcoin. They even invited Gavin to give a presentation on it.

[Roger_Murdock]

"Bitcoin goes mainstream"? Wait, I thought Wired just told us that Bitcoin is "expired."  Who should I believe? The criticisms they offer are pretty weak.

Still, Bitcoin isn't perfect and definitely has some hurdles to overcome. In March, the lack of "chargebacks" prompted a lawsuit between two Bitcoin-related companies.

This appears to be a reference to the Tradehill / Dwolla dispute described here.  

http://arstechnica.com/tech-policy/news/2012/03/lawsuit-illustrates-bitcoins-chargeback-problem.ars

It sounds like the problem was not the lack of chargebacks on the Bitcoin side.  It was the presence of chargebacks on the fiat side (chargebacks that were, I'm guessing, in most cases fraudulent).  Actually, that's not quite right.  The dispute was over whether or not Dwolla had advertised its services as having "no chargebacks" and then reneged on that promise.  That's a contract problem - not a Bitcoin problem.  More fundamentally, suggesting that the irreversible nature of Bitcoin payments is a bug rather than a feature is ridiculous.  Bitcoins are digital cash.  If consumers want additional protections, those can be offered through escrow services / future Bitcoin credit cards, etc.    
 

In September, a Bitcoin company sustained a theft worth $250,000.

That's just silly. The fact that someone successfully robs a bank is not an indictment of the U.S. dollar.  The fact is that it's relatively easy to make your Bitcoin holdings extremely secure.

And worse still, an August 2012 academic study on Bitcoin found that it had helped fuel $2 million per month in illegal drug sales online.

Oh no, people are actually using the currency to trade with! Bitcoin's "black market" success is an indication of its strength.  

So don't liquidate your Uncle Sam-backed bucks just yet.

My recommendation: get out of the dollar while you still can.

[Gabi]

Yeah, a fail article. The anti-bitcoin propaganda is coming.

[kiba]

Yeah, a fail article. The anti-bitcoin propaganda is coming.

Deliberate or stupid?

[ShadowOfHarbringer]

Yeah, a fail article. The anti-bitcoin propaganda is coming.

Deliberate or stupid?

Perhaps both