Gavin Andresen identified two former board members as the primary source of the Bitcoin Foundation's damaged reputation: Charlie Shrem and Mark Karpeles. Speaking with IBTimes, the Bitcoin core develo
Gavin Andresen identified two former board members as the primary source of the Bitcoin Foundation's damaged reputation: Charlie Shrem and Mark Karpeles. Speaking with IBTimes, the Bitcoin core developer explained that their roles at the Foundation shattered the trust between the community and the organization. Donations suffered as a result. "That was a huge, deplorable, terrible hit to the foundation—a huge black eye," Andresen told the publication. "It was very damaging. Membership revenue went down and there was a lot of trust we lost."
A second factor compounded these problems: the declining value of Bitcoin itself. Andresen cited both the personnel crisis and the price downturn when discussing the Foundation's financial situation. The organization had been wrestling with these challenges even before Olivier Janssels published his whistleblowing post detailing the Foundation's internal dysfunction and leadership failings.
Shrem founded BitInstant. He pleaded guilty to aiding and abetting the operation of an unlicensed money transmitting business and is serving a two-year prison sentence. His presence on the Foundation board raised troubling questions about how the organization had vetted its own leadership.
Karpeles held the position of CEO at Mt. Gox. The now-infamous exchange fell apart in early 2014, taking with it hundreds of millions of pounds worth of Bitcoin that users had entrusted to the platform. Authorities launched an investigation into the collapse, and observers expected that prosecution might follow. Karpeles has not been charged with any crime. His name appeared in court documents related to the Silk Road case, but otherwise the media attention moved on.
The Bitcoin Foundation selected a new Executive Director after Patrick Murck left his position.
The New York Department of Financial Services released word this week that the BitLicense proposal is in its final stages. The agency did not provide a target date for completion. Before arriving at this draft, the NYDFS had opened its doors to community feedback, then opened them again for additional input.
Establishing regulation for Bitcoin while the technology is still in its early stages carries real risks of hampering what becomes possible. The NYDFS, however, did engage with community input and took people's concerns into account. The Bitcoin world will not celebrate this proposal or embrace regulation more broadly. I would want to see changes. None of that changes the fact that the NYDFS made a sincere effort from its institutional position. The outcome could have been far worse. Imagine if this was Russia instead.
Bitcoin conferences attract a particular crowd. They feature speakers from the top ranks of the industry. Attendees share a common obsession with the technology. The food tends to be decent. The major obstacle is what tickets cost. Most conventions price their tickets in the hundreds of dollars, which excludes people who are just interested or undecided. The attendees who make it through the doors are either serious investors with substantial capital to put to work, or the devoted type who will spend whatever it takes to hear Andreas Antonopoulos in person.
A Bitcoin conference launching in Atlanta this Friday and Saturday is trying something different. The Bitcoin Consumer Fair is offering a consumer track for $49. For casual observers or people trying to decide if Bitcoin matters, that price point works. The event includes a technical track priced at $225 designed for developers and businesses that have committed to Bitcoin's importance. That lower consumer option means this conference might reach people beyond the predictable audience of hardcore believers.
The Bitcoin Consumer Fair happens April 17th and 18th at the Loudermilk Conference Center in Atlanta, Georgia.
