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Hold on to Your Bitcoins: Why April 8th 2014 Might be a Defining Moment in Bitcoin History


         Hold on to Your Bitcoins: Why April 8th 2014 Might be a Defining Moment in Bitcoin History

Mark your calendars for April 8. It’s been a target day of dread for thousands of companies’ IT departments counting down the days before they cross the “finished” line. There are currently armies of IT folks throughout the world in a race to upgrade Microsoft Windows XP operating systems to modern versions of Windows before Microsoft officially pulls the plug. Windows XP is now a 13 year old operating system released only a month before the 9/11 attacks. This was arguably Microsoft’s most popular and longest lasting trusted version of Windows they’ve published. It is so popular that even though they stopped selling it to the public years ago, company IT departments have been slow to migrate to new versions of Windows including Windows 7 or the unpopular Windows 8.

A recent PCWorld Magazine poll shows Windows XP still runningon almost 30%of all installed PCs. This is over four times the install base of the 18 month old Windows 8. For the bitcoin community, this matters because of one extremely important factor:PCI compliance. April 8 is the last date Microsoft will publish the latest round of security fixes for Windows XP known in the IT departments as the monthly “Patch Tuesday”. The first reported vulnerability after that date means the computer is unsecured and no longer compliant with the laws established by the PCI organization that grants authority to use the credit card payment networks.

The credit card industry’s authority organization has issued rules and requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. As of April 9, any PC continuing to run Windows XP without the expensive extended Microsoft support contract will likely be considered non compliant.

As such, they may be barred from being allowed on the payment network. This includes ATM machines, which the organization estimates to be over 420,000 in the US alone and 95% of them are estimated to be running various versions of Windows XP underneath. This could spell the end for many merchants and ATM machines throughout the world that rely on credit cards or the payment networks under the control of the PCI organization. This message has been communicated regularly by the PCI Security Council but has been largely ignored by the retail industry until the last few months. Visa credit card has been updating its merchant banks on the varioussecurity mandates since 2007.

With no legal ability to process credit card transactions, businesses that rely on credit cards to run their operations could be in serious jeopardy. The backup plan has traditionally been cash, or written checks for the few that continue to accept them. Since the internet age, credit cards and Paypal have been the only payment options available to merchants.Many merchants have been in a state of denial about the Windows XP and PCI Compliancy predicament. Without a large IT organization to advise them, smaller companies may find this deadline comes as an unwelcome surprise.

It may be a good time to hold on to your bitcoins, or better yet – stock up.


Bitcoin Price Analysis: Blowing Through Support Levels on the Way to $3,000

Bitcoin continues to tumble lower and lower as it struggles to claim any footing in the market. It’s down almost 50% in three weeks and it’s showing very little sign of stopping. It’s currently clutching onto the $3,500 values but it doesn’t look like it can hold on much longer.

Bitcoin Schmitcoin

Op Ed: SEC’s Latest Declaration Creates Legal Minefield for Digital Assets

This broad, authoritative declaration is not unexpected, as, to date, the SEC has stated that all digital assets — regardless of whether they function as alt coins or utility tokens — are securities at least initially and, thus, subject to its jurisdiction.

Huhnsik Chung and Nicholas Secara

Op Ed: Cryptocurrency’s Unrealized Opportunities for U.S. Tax Professionals

Tax accountants and firms that specialize in cryptocurrency will emerge to capture and service this market. The first movers will be the ones who stand to capture the oversized profits.

David Kemmerer

Op Ed: Anatomy of the Tether Attack: Are Stablecoins Vulnerable?

Last month's attack on Tether contains a cautionary tale: Only those coins that can survive such attacks have the slightest chance of becoming the “holy grail" of stablecoins.

Henry He