It's All About the Bitcoins
BitInstant, the New York-based Bitcoin startup that promises to make it easier and faster to transfer Bitcoin funds, has been hit with a class action suit, according to CoinDesk.
In the suit, three BitInstant customers allege that the startup makes false claims about its services, including advertisements that say customers can obtain coins “within an hour or two,” and that they will be refunded if their transfers experience “undue delays.” The customers call these representations “disingenuous,” and are suing the company for relief for the company’s false representations of the speed of its service.
It's All About the Bitcoins
You can buy Domino’s pizza and busted Mercedes convertibles and a night in a Howard Johnson’s with Bitcoin, the digital cryptocurrency that’s taken New York and beyond by storm. Now added to the roster of ridiculous things available for purchase with Internet money: a beautiful $1.9M condo in the fancy Trump SoHo building.
As evidenced in the past week, dealing with Bitcoins can be a traumatic experience. With so many record highs followed by equally steep drops that seemingly happen several times an hour, we wouldn’t be surprised if traders have broken out the Xanax by now.
Now, some fans of the hacker-created, crypto-currency are complaining that their problems are only being compounded by BitInstant, an online exchange service that transfers cash into Bitcoins.
The FBI recently estimated that after three years, the Bitcoin economy is worth at least $35 million. Thanks to the uncertainty surrounding certain government currencies, it may soon be worth more. The Financial Post reports that fear over the value of the euro, strained by potential government insolvency in Greece and Spain, has led to a significant uptick in euro-for-Bitcoin trading.
The Bitcoin markets have been sleepy over the past week or two, and Bitcoin traders are starting to whine. What happened to the drama of hacks, the excitement of skyrocketing prices? The biggest news out of the weekend’s Bitcoin World Conference and Expo was that the organizers teased future conferences in Thailand and Amsterdam. “As fun as it was, seems there were no great world-shattering announcements that would affect the world of bitcoin in the near future,” one Bitcoiner who was present told Betabeat. “Other than more conventions as announced by Bruce.” On the Bitcoin Forum at bitcointalk.org, user tacotime wrote: “Well, someone buy or sell a bajillion BTC and do something, it’s boring as hell right now out there.”
But the Bitcoin markets may soon pick up again as a Bitcoin start-up launching later today, in partnership with one of the better-known exchanges, is likely to encourage a new crop of casual traders and the Bitcoin-curious.