From Buying Guns with Bitcoin to Consumer Protection Warnings Its the Crypto Corner for 8/12/14

A lot of news over the last two days on the crypto currency front, from guns for Bitcoin to Consumer warnings about the dangers and risks of virtual currencies.

Let’s start out with the Consumer Financial Protection Bureau, they want to let consumers know that virtual currencies like Bitcoin and Litecoin are targets for hackers and that there are costs many may not be thinking about.

Electronista wrote:

The Consumer Financial Protection Bureau (CFPB) issued a warning on virtual currencies like Bitcoin and Dogecoin on its website today. In the warning, the CFPB sounds off some well-known issues that generally circle around Internet currencies, such as the risk of hacking, fraud and lack of regulation in holding houses.

Bitcoin, Litecoin, Dogecoin and a plethora of other cryptocurrencies are still under a shroud of mystery when it comes to the average citizen. Regulatory agencies like the United States Securities and Exchange Commission have issued warnings in the past in an attempt to educate consumers, as well as make them aware of the risks involved with them.

However, for every agency that tries to point out valid risks, other entities like the Department of Defense drive the curious away by labeling currencies like Bitcoin as subjects of terrorism research. That hasn’t stopped the expansion of acceptance of Bitcoin though, as a number of large retailers now accept the currency as payment. Dell, Overstock.com and Newegg all accept Bitcoins through a third-party for immediate exchange rates.

Read the full story here

Another market with a lot of potential for Bitcoin is India, and while there have been some mixed signals, the government there said there are no plans to regulate the currency.

Tech Crunch covered Barry Silbert of Second Market, investing $250,000 into Unocoin.

Tech Crunch wrote:

Barry Silbert, a longtime Bitcoin enthusiast and founder of SecondMarket, just invested $250,000 in Unocoin. The company, which handles trading, merchant processing and storage for the currency, is based just outside Bangalore in Tumkur, India.

With 1.2 billion people and one of the widest income inequality gaps in the entire world, India has a population that is more than 40 percent unbanked. At the same time, it receives about $70 billion annually in remittances.

So Bitcoin could fill a market gap by offering lower fees on foreign exchange than traditional remittance providers like Western Union. Sathvik Viswanath, the company’s co-founder, had been running some mining operations until he shifted toward this model. It appears to mirror what companies like Coinbase do in operating as dual wallet and merchant processing providers, but with a specific focus on India and its unique logistical challenges.

Read the full article here

Next up is BitMags.com and their Bitcoins Firearms auction website

BitMags.com prides itself as the first and only escrow-enabled Bitcoin firearms auction website where users can buy and sell guns and related items for Bitcoin (BTC). Buyers and sellers are both protected by the escrow system that holds the funds until the transaction has been fully completed. Items must be received “as described” in the auction before funds are released to the seller. Pending shipping time, a typical transaction can easily be completed in 3-5 days from date of purchase, which is considerably faster than the traditional “wait for a cashier’s check, and then ship” approach.

Additionally, all disputes are moderated by the BitMags Admin, whose decision is final. “Buyers no longer have to worry about getting scammed, knowing their funds are safely in escrow”, says the BitMags management team.

Bitcoin’s reputation is largely tarnished to this day by its connection to illegal marketplaces like Silk Road, where one was able to purchase anything from drugs to a hitman. BitMags is trying to change that stigma by allowing Bitcoin users the ability to safely buy and sell guns for bitcoin and promoting the following of all local and federal rules and regulations.

‘Guns for Bitcoin’ is currently a seller’s market, due to the fact that there are very few places to buy firearms for Bitcoin. Buyers far outweigh sellers and are willing to pay a premium to be able to purchase with BTC. This has led to a large opportunity for sellers to begin listing their guns for Bitcoin, while furthering the adoption of the new type of currency.

The company’s success is also partially due to offering free registration and low selling fees that are only charged if the item sells. Currently, BitMags management is seeking more sellers to list their goods and is offering to feature seller’s auctions on the home page and category pages for free.