Will Bitcoin ever rebound? – Jan. 15, 2015

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NEW YORK (CNNMoney)

Bitcoin lost more than 60% of its value last year. The digital currency has already plunged another 30% in the first few days of 2015 -- and that includes a 30% rebound on Thursday!

The price of Bitcoin (XBT) briefly fell below $200 on Wednesday, an important psychological barrier, before bouncing back.

According to Bitcoin news site Coindesk, it is not profitable for people to process transactions or mine for Bitcoins when the price falls below $200. "Mining" is the term used to describe the complex math puzzles solved by computer networks in exchange for new Bitcoins.

So what's next for Bitcoin? There is an intense debate about its future.

Bitcoin was a bubble that has burst. Jeffrey Gundlach, head of influential investment firm DoubleLine, is firmly in the Bitcoin bear camp. In a webcast on Tuesday, Gundlach declared that Bitcoin is "on its way to being relegated to the ash heap of digital currencies."

Those comments may be one of the reasons why Bitcoin plunged on Wednesday.

But is it fair to focus on Bitcoin's price as a measure of failure or success? This is a currency after all.

Related: Bitcoin was one of the tech failures of 2014

The problem is that some fans of Bitcoin seem to think that it is also something that could be a good investment.

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Will Bitcoin ever rebound? - Jan. 15, 2015

Bitcoin revealed: a Ponzi scheme for redistributing wealth …

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If Bitcoin were a currency, it'd be the worst-performing one in the world, worse even than the Russian ruble.

But Bitcoin isn't a currency. It's a Ponzi scheme for redistributing wealth from one libertarian to another. At least that's all it is right now. One day it could be more. Venture capitalists, for their part, are quick to point out that it's really a protocol, like the early internet, and its underlying technology could still be revolutionary. What are they supposed to say, though, whenthey've bet hundreds of millions of dollars on it?

But that's not much of a consolation to anyonewho bought anywhere near Bitcoin's $1,100 top. Or near $1,000, or $900, or $800, or, well even yesterday's prices. That's because Bitcoinhasn't just fallen 76 percent the past year. It's fallen 36 percent the past two days, as you can see below, with a 24 percent decline the past 24 hours. It's too bad Bitcoin doesn't have a central bank to help stabilize its value.

Source: Coindesk

What in the name of Satoshi Nakamoto is going on? Well, two things. First, Bitcoin's big bubble has been slowly deflating for over a year now. It has no inherent value, after all, because, despite companies trying to get free PR by saying they'll accept it, almost nobody uses it to buy anything other than drugs. Second, though, is a problem that's all too familiar to anyone who tried flipping condos in Miami ten years ago. Bitcoin miners, you see, borrowed moneyand real money, as in dollarsthat they could only pay back if Bitcoin prices kept rising, or at least didn't fall this much.

Bitcoin, remember, is a digital "currency" that lets you send money online without needing a bankto confirm it. That's because it substitutes a decentralized network of middlemen for a single middleman. And instead of paying them fees, it pays them with new Bitcoins. Think about it this way. The problem with sending money online is that you don't know if I'm trying to scam you by sending the same money to someone else, too. So the solution has been to have a bank sit in between us: I send the money to the bank, it verifies that I haven't sent it to anyone else, and then sends it to you, all for a 2 percent cut, of course.

Bitcoin, though, has a network of miners sit between us instead. These miners try to win new Bitcoins by solving difficult math problems that get even more difficult the more miners there areand, in the process, they create a public ledger of every single Bitcoin transaction. This means we don't need a bank to know that I've sent money to you and only you, but it comes at the cost of making it irreversible. (And that makes Bitcoin an even more appealing target for hackers who know that you have no recourse if they steal your money).

The key here is that the math problems the miners have to solve get harder the more of them there are. If there's a big influx of miners, say, because of a big bubble that pushes prices into quadruple digits, then there's even more pressure on everybody to upgrade to the latest supercomputers to stay competitive. The thing about the latest supercomputers, though, is that they're expensive to buy and expensive to run. (That's why some miners have set up shop in Iceland, where they can use geothermal energy to powertheir computers, and Arctic air to cool them). So miners had to borrow lots of money to try to keep up in the Bitcoin arms race.

Butall that borrowing hasn't paid off now that Bitcoin prices are free falling. In fact, it's part of the reason that they're doing so. Bitcoin prices are so low, you see, that miners are spending more money running their supercomputers than they're making from new coins. So why are they still going? Well, they have dollar debts that they need to pay back, and where else are they going to get the money? They're stuck, in other words, in a catch-22: they can't afford to keep mining, but they can't afford to stop mining, either. (This, coincidentally, is the same dilemma that oil drillers who borrowed a lot during the boom face now during the bust). This has already forced one big mining group into default. And it's forced the rest to sell the only assets they haveBitcoinsto pay back their dollar debts. That, of course, only pushes the price of Bitcoin down even further, which makes even more miners sell their Bitcoins to pay back they owe as mining becomes more unprofitable. And so on, and so on.

Bitcoin, in other words, is suffering a deleveraging shock like the one that hit our economy in 2008, but without a Federal Reserve to cushion the blow. That means this doom loop of debt and Bitcoin deflation could take prices down a lot further still. The only solace is that, in the long run, the system should self-correct, as miners drop out and mining gets easier.

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Bitcoin price plunges, prompting concerns about mining …

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Bitcoin is getting hammered in markets that trade the digital currency, prompting providers of its core computing infrastructure to shut down operations.

The selloff, which appears to have been exacerbated when Asian traders were forced to meet collateral demands under margin trading rules, left bitcoin down 14.49% at $194.04 in the late New York morning Wednesday, following a 15.02% plunge Tuesday, according to news service Coindesk. The digital currency is now down 39% from Dec. 31 alone and is off 83% from the all-time high of $1,165 that it hit at the end of a furious rally in November 2013.

That price decline is creating something of a mini-crisis in the business of bitcoin mining, the vital process through which new bitcoins are added to the money supply. Working within a network of independent computers, bitcoin miners are tasked with confirming transactions initiated by users of the digital currency and compete to solve a mathematical puzzle in order to be compensated for that work with newly issued bitcoins.

As the price of bitcoin falls against the dollar and other fiat currencies, it induces miners to shut down operations, because they can no longer cover costs such as equipment, rent and electricity quoted in those traditional currencies. The problem was made more acute by what had been a yearlong, exponential buildup in mining infrastructure -- machines comprised of highly specialized, super-powerful computers -- which made competition for bitcoins tougher. Bitcoins core software algorithm periodically adjusts the difficulty of its mathematical puzzle to keep it in line with the amount of computing power in the network. That way, new bitcoin payouts are kept to more or less a 10-minute schedule regardless of how well equipped the miners are to solve the puzzle.

On Monday, CEX.io, a company that mines bitcoins on behalf of clients that rent out its computing power, announced that it would temporarily halt this cloud mining operation, citing the recent bitcoin price drop, as well as the upscaling of the mining difficulty.

An expanded version of this report appears at WSJ.com.

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Bitcoin price plunges, prompting concerns about mining ...

Bitcoin might be dead. It doesn’t matter. – Telegraph

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In any case, the experiment is new and most Bitcoin Whales got in early and cheap. The way you feel about a $177 Bitcoin has a lot to do with what you paid for it. If you bought in January 2011 you paid just $0.38. A year later you spent $15.11, and a year from that youd have been stung for $854.

So, whats causing this crash? Bitcoin exchanges are unregulated and market fluctuations can be as unusual as they are unexplainable. A cryptography nerd who mined coins as an experiment in 2010 could have found himself a millionaire many times over in 2013, holding so many coins that cashing-out moved markets.

Other manipulations occur which are more intentional and less benign.

Some suggest that the recent Bitstamp hack could be behind losses, which is probably true to some extent. But the exchange honoured all lost coins and has since re-opened for business, so it seems unlikely to be the only cause. Especially as the price was already sliding before it happened.

The crux of the issue, the important point which should be made, is this: Bitcoin the currency may be dying, but it doesnt matter because Bitcoin the technology is thriving.

The currency is just one application of the Blockchain which powers it. It has served a purpose, in that it has established the infrastructure on which a flotilla of new services will launch in coming months.

Essentially, Bitcoin runs without any central authority. Instead there is a Blockchain, a digital ledger of all transactions. Each and every payment made in Bitcoin is encoded into this Blockchain by miners by performing some mathematical and cryptographic heavy-lifting.

These miners could be an individual on a laptop or a warehouse full of dedicated machines in China. But they power Bitcoin and are rewarded for their efforts with new coins that are periodically created.

Benefits of that become clear when you imagine a social network free of shareholders, advertising or privacy intrusion, or a voting system that's mathematically impossible to manipulate. Or perhaps a whole new internet outside the reach of governments who want to censor, filter or delete information?

All of that is being worked on, right now. Hundreds of millions of dollars in venture capital investment has been poured into Bitcoin startups like these in recent years, and they are only now beginning to bear fruit.

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Bitcoin might be dead. It doesn't matter. - Telegraph

Admirals Late Goal Dooms Comets

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January 16, 2015 - American Hockey League (AHL) Utica Comets The true meaning of Pink the Rink night and the money raised for Breast Cancer research and awareness, overshadowed the 2-1 loss the Comets had dropped to the Milwaukee Admirals Friday night at The Utica Memorial Auditorium.

Dustin Jeffrey (1-0-1) found the Comets only goal of the night despite their onslaught of an attack on Magnus Hellberg, the American Hockey League's number one goaltender. Hellberg stopped 30 out of the 31 shots the Comets took on him and improved his overall goals-against average to an un-real 1.68 and his save percentage to a .937.

The visitors from Wisconsin managed to put one up on the scoreboard first to take the early lead in the opening period. Richard Clune found himself to the left of Jacob Markstrom and before the Swedish goaltender could get a firm handle on the puck, Clune popped the puck between Markstrom and the goalpost at 12:11 with the help of his fellow comrades Ian White and Brendan Leipsic.

It was kind of an oddity for the Comets to have a no-goal second period, but they finally found one just past the halfway mark in the third period. At 13:15 Brandon DeFazio managed to get a point-blank shot off on net that rolled to the right of the net after Hellberg had made the save. Little to Hellberg's knowledge, Hunter Shinkaruk grabbed the rebound and slid it across the crease for Jeffrey who netted the puck into the wide open right side of the net for the 1-1 equalizer and the Comets only goal of the game.

The game was looking remarkably better for the Comets as the clock winded down in the third period, but things took a turn for the worse with only 34 seconds remaining in the game.

After receiving a quick give and go pass from Viktor Arvidsson, Mark Van Guilder streaked down the right wing and as soon as he reached the circle, he snapped off a wrist shot to the far side which deflected off of Markstrom's right pad and in to the net. Ian White was credited with the secondary assist on the play.

After finishing tonight's three-game home stand, the Comets will head out on the road for an away stint that will take them right up until the AHL All-Star break. They will begin their road trip on Jan. 21 as they follow the Admirals back to Wisconsin for an 8 p.m. ET puck drop at the BMO Harris Bradley Center in Milwaukee.

Three Stars: 1. MIL Magnus Hellberg (W, 30 Saves) 2. MIL Mark Van Guilder (goal) UTI Jacob Markstrom (19 Saves)

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Admirals Late Goal Dooms Comets

Comets Defeat The St. Louis Ambush 7-5 And Remain Undefeated After Thirteen Games

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January 16, 2015 - Major Arena Soccer League (MASL) Missouri Comets INDEPENDENCE, MO "" The Missouri Comets (13-0) did not seem to struggle without head coach Vlatko Andonovski who had to watch his team earn a 7-5 home victory over the St. Louis Ambush (3-8) all the way from Philadelphia where he attended the National Women's Soccer League College Draft.

Team captain Vahid Assadpour was named Borden Man of the Match with a four-point game scoring a hat trick and recording one assist. Also, goalkeeper Stephen Paterson made his professional debut with the Comets finishing the match with a total of twelve saves in front of 4,587 fans in attendance.

The reigning MISL Champions were without Danny Waltman (ankle), Milan Ivanovic (AC strain) and Coady Andrews (ankle) due to injury. In addition, Max Touloute and Ramone Palmer dressed but didn't play.

Less than a minute after kick off, Assadpour put the home team up assisted by league leader Leo Gibson followed by Brian Harris' only tally of the night. Moments later, Andre Braithwaite would find the back of the net assisted by Josh Gardner before Gibson notched his 26th goal of the season to give the Comets a partial 4-0 lead to end the first quarter.

However, the Ambush would keep the Comets scoreless and notched two goals of their own in the second quarter ending the half 4-2. Six minutes after the third quarter began, Matingou scored the only goal of the stanza and his second one of the night making it 5-2.

St. Louis came out stronger in the final quarter and nearly came back scoring three goals. However, Assadpour scored twice to give his team their thirteenth consecutive victory.

Next up, Andonovski's team will travel to Mexico where they will visit Southern Conference folks Saltillo Rancho Seco and Monterrey Flash on Friday and Sunday respectively.

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Comets Defeat The St. Louis Ambush 7-5 And Remain Undefeated After Thirteen Games

Workington Comets sign two young speedway stars

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Last updated at 12:06, Friday, 16 January 2015

The future looks bright for Workington Comets after the signing of two young riders.

Starlets Paul Bowen and David Morgan have signed full contracts and become club assets.

Workington have pledged to support the two young riders in developing a career in the sport through the guidance of team member Steve Lawson.

Twenty-five-year-old Bowen, a former Moto-X rider, came to the attention of the Comets management after turning his hand to speedway and putting in several sterling performances while riding for Workington Meteors at Northside speedway training track.

He secured a place at National League side Buxton late last season and he has been signed up by the Hitmen for this coming season.

Morgan, 17, also hails from the Moto-X scene and was encouraged to take up speedway by Lawson late last season. Morgan proved to be a fast learner with natural ability, and finished in the top places in several amateur meetings.

Steve Whitehead, Comets co-promoter, said: This is exactly what we need to be doing, finding our own British riders to support and develop with the hope that they will come into our side at some point in the future.

Paul and David are the first of what we hope will be a long line of prospects that we can help to the mutual benefit of the riders and Workington speedway.

They understand there is a lot of work to do but are enthused to be Workington assets. We will help them develop through the National League by making them available to NL clubs when ready and then they will come into our line-up as a reserves on a three-point average when ready to do so.

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Workington Comets sign two young speedway stars

A travel guide to the Rugby World Cup 2015

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LONDON CALLING: Skaters at the ice rink near the London Eye.

So you're coming over for the World Cup? Brilliant. Lovely place, Britain. Lots to see and do. The weather sucks, but it's no worse than Dunedin in July. Or May. Or December.

And you get the chance to see the All Blacks win the World Cup on foreign territory! How many people can say they've done that? Er none. Nada. Zero. Ever. And with the current geriatric lot and Israel Dagg doing a remarkable Colin Farrell impersonation (the 1979 All Black, not the actor) at fullback , that's unlikely to change, but don't let that stop you enjoying the trip of a lifetime, with a bit of footy in the background.

If you're on your way, the trip could look very much like this:

September 20: New Zealand v Argentina, Wembley Stadium, London London. Home to 8.4 million people, most of them riding bikes through red lights and on pavements. Enjoy one of the most remarkable cities in the world. A word of warning, though: If you go to the East End, it bears zero resemblance to EastEnders. And not in a good way.

Places to stay: The Apex Temple Court Hotel in Fleet Street (something has to be in Fleet St - all the newspapers have gone); the Tower Hotel (offers the best view in the city - overlooking the Tower of London and Tower Bridge).

PINT STOP: The Founders Arms, on the south side of the Thames.

Places to drink: The Founders Arms, on the south side of the Thames. Overlooking the river, opposite St Paul's Cathedral. A great place for a pint and to watch the world go past. Two hundred years ago, you would have literally been watching the world go past.

Places to see: Where do you start? Madame Tussauds (boring), London Eye (great, unless it's a cloudy day), the Natural History Museum (superb), the National Portrait Gallery (incredible), the Tate Modern (who the hell makes a phone out of a lobster?), the London Aquarium (only good if you've got kids, or can borrow some), London Zoo (nice if you like gorillas or penguins, but no elephants - what sort of zoo doesn't have elephants?), Tower of London (worth it), Greenwich Park (totally worth it - it's where time begins).

September 24: NZ v Namibia, Olympic Stadium, London Namibia? Seriously? Thanks for the 120 points. Still London. Only a bit east of Wembley. See above.

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A travel guide to the Rugby World Cup 2015

Travel in 2015: Vegas or Vietnam?

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You've got vacation time accumulated, but where to go? Although hard to believe, a recent study found that many Americans don't use manyor anyof the paid vacation days they're offered.

The new year offers opportunities to venture out to one of the dozens of spots experts say are hot right now. Industry experts have plenty of suggestions about where you should go, both internationally and domestically.

Whatever your choice of destination, one thing is certain: You won't be out there alone.

Read More2015 travel hot spots: Cuba and...Russia?

The U.S. Travel Association is forecasting that there will be 2.1 billion domestic trips in 2015, with more than 78 percent being leisure travel. The organization also expects 75.1 million international travelers will be coming to the United States this year, about a 4 percent increase over 2014.

International outbound business travel from the U.S. in 2015 should increase by 6 percent, "despite the overall weaker economic outlook overseas," said Mike McCormick, executive director of the Global Business Travel Association. He said overall U.S. business travel spending will increase to 6.2 percent to $310.2 billion.

And, thanks to factors such as falling unemployment and a strengthening dollar, the ITB World Travel Trends Report 2014-2015 forecasts a 3 percent increase in overall North American outbound travel in 2015.

Many of those restless souls are expected to be millennials. Hotwire found that approximately one-third of that age group intend to travel more this yearand are a budgeting a total of $226 billion for their domestic and international adventures.

"This mentality is exciting to see and we anticipate that their travel intentions will have significant impact on the industry in the coming months," said Henrik Kjellberg, president of the Hotwire group, told CNBC via email.

Separately, the over-50 group may spend at least $120 billion on leisure travel, according to data from the AARP, and plan to take at least four trips in 2015

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Travel in 2015: Vegas or Vietnam?