Blockchain Blog

Bitcoin News for the week of 10/26/15

Welcome to our weekly bitcoin news recap, where we cover top headlines and stories in the world of bitcoin each week. This past week was intense as we wrapped up Money20/20, which we provided an update on how it went. We touched on the blockchain again this week, which remains a hot topic, as more people and organizations learn about it. There is also an exciting AMA event coming up in November and December, which you can get the details for below.

Hindsight is 20/20

![Money20/20 photo via @Blockchain on Twitter](http://blog.blockchain.com/content/images/2015/10/blockchain-2020-oct-2015.png)
Money20/20 photo via @Blockchain on Twitter
[Recapping the 2nd annual Money20/20 Hackathon](http://blog.blockchain.com/2015/10/30/recapping-the-2nd-annual-money2020-hackathon/)

The second annual Money20/20 Hackathon was a sold out event that invited over 750 of the most ambitious and talented developers to collaborate and create over 24 hours. The stakes were high, with $125k in cash prizes, plus another $100k in challenge prizes. As a sponsor, we also rewarded $5k to the best project built on our API, and a MacBook and Xbox to the runner up team. Nearly 200 projects were created overall, and this year we had 21 different teams building on our API. From those teams, 2 of them each ended up winning one of the $20k finalist prizes, and our sponsor prizes.

For the second year in a row, the Las Vegas-based financial conference dedicated a track dubbed (Bit)coinWorld to the technology, however, 2015 was heavily focused on the blockchain, bitcoin’s distributed ledger, where bitcoin and blockchain squared off at Money20/20. The view of the bitcoin industry companies on the issue was perhaps best on display during a roundtable featuring Digital Currency Group founder Barry Silbert and Blockchain CEO Peter Smith.

“Today we’re all building blockchain companies. You need to be aware of how to situate your business in the perception battle,” Smith told the crowd, noting that he feels this will be particularly important for companies looking to raise funds in the next six months. Smith believes the major financial institutions that are today interested in private blockchains, either based on bitcoin or another protocol, will eventually come to the “logical conclusion” that the bitcoin blockchain is a superior platform.

**The ghost in the machine **

![The trust machine, via The Economist](http://blog.blockchain.com/content/images/2015/10/trust-machine.png)
The trust machine, via The Economist
[The promise of the blockchain](http://www.economist.com/news/leaders/21677198-technology-behind-bitcoin-could-transform-how-economy-works-trust-machine)

This innovation carries a significance stretching far beyond cryptocurrency. The blockchain lets people who have no particular confidence in each other collaborate without having to go through a neutral central authority. Simply put, it is a machine for creating trust. The blockchain is an even more potent technology. In essence it is a shared, trusted, public ledger that everyone can inspect, but which no single user controls.

With a blockchain system in place, financial firms left and right are jumping on board forming new partnerships placing their bets on the blockchain. Mastercard, American Express and Visa are all companies invested into bitcoin-related companies, says American Banker. At Money20/20, a Capital One survey finds that nearly 20% of attendees believe that blockchain technology will have the greatest impact on the financial services space over the next three to five years. And technology providers are already starting to build private blockchain solutions for financial institutions.

But is it all about the blockchain only? Entrepreneur and investor Erik Voorhees penned a compelling piece, It’s all about the blockchain, saying:

“Supporters who are ‘all about the blockchain’ may counter that the blockchain demonstrates truth, demonstrates finality, and thus as banks adopt this technology they will be made more efficient because the uncertainty of settlement will be resolved. Sure, blockchains can help with this, and banks can be more efficient for it. It seems clear that blockchain-based banking network could settle payments in minutes, not days. But that’s missing the point. A marginal gain in efficiency isn’t what we’re excited about.”

**October price prospects **

[![Image via TechCrunch](http://blog.blockchain.com/content/images/2015/10/bitcoin-falling.png)](http://blog.blockchain.com/content/images/2015/10/bitcoin-falling.png)
Image via TechCrunch
[Biting back: bitcoin heads for best month in 1-1/2 yrs](http://www.reuters.com/article/2015/10/30/global-markets-bitcoin-idUSL8N12R3NQ20151030)

This October price jump caught the attention of many news media outlets, with many wondering how long this rally will last, and why it happened. Despite a consistently lower price throughout 2015 so far, the currency demonstrates a possible shift into a stage of improved longterm stability. When asked about the recent price activity, Blockchain CEO Peter Smith said, “what I’m happy about so far is that the price run-up hasn’t been overly dramatic or disorganised.”

The bitcoin price reached its highest we’ve seen since May 2014. For the majority of 2015, the price spent most of its time lingering between the low to mid $200 range, creeping up occasionally and reaching above $300 very briefly last July. October showed a slow and steady climb in price, and bitcoin hit a high of $334.05 on Bitstamp, near the end of the month.

What is the price prospect for the end of 2015 and into 2016? As the end of 2015 approaches, we’re excited to find out.

**Disrupting your comfort zone  **

![AMA image via Bitcoin.com](http://blog.blockchain.com/content/images/2015/10/AMA-fearued-image-PR.jpg)
AMA image via Bitcoin.com
[The Bitcoin.com Forum’s All-Star AMA Event](https://news.bitcoin.com/bitcoin-com-forums-star-ama-event/)

Bitcoin.com AMA all-star event features developers, CEOs, and leaders within the cryptocurrency environment. The event’s sole purpose is to allow community members to interact with these innovators directly to gain insight on their roles in this growing industry.

Guests that will be participating range from Gavin Andresen to Jeremy Allaire, CEO of Circle, Nic Cary, Co-founder of Blockchain, Bobby Lee, CEO of BTCC, and many others. Bobby Lee recently said in an IBT article that one day in the future he can see banks will hold on to his bitcoin – because in the future they [banks] will have adapted to the new technology. You can make sure to ask Bobby about that in the AMA event in November!

Is bitcoin that disruptive? The question is still too early to answer, but the fact that bitcoin can disrupt the largest and most interconnected marketplace in the world—money, banking and finance—makes it perhaps the most promising investment opportunity of our age.

What do you think about the topics we covered this week? Let us know by commenting below!