June 9, 2015- In This Issue:


The Internet is Changing the Very Definition of Money

In a recent blog post, Truthcoin (not an altcoin) Creator Paul Sztorc made an interesting point about how the Internet is changing the traditional definition of money. In the past, an asset needed to serve as a medium exchange, unit of account, and store of value to be useful as money; however, the Internet is quickly removing two parts of this equation. As Sztorc explained:


"In fact, because modern computing [1] allows prices to be quickly and effortlessly recalculated and redisplayed, and [2] allows e-transactions to be fast and cheap, we have many options for fast roundtrip conversions that drastically reduces money's need to serve as a unit of account or even as a medium of exchange. This leaves only value-storage as a discriminator among money-types."


The overall goal of the blog post was to finally dispel the contention that bitcoin cannot succeed due to its deflationary nature. Part of Sztorc's argument rests on the idea that the Internet and bitcoin are changing the very definition of money.


Is Bitcoin a Huge Threat to Banks?

Just as the photography industry saw the bankruptcy of Kodak in the wake of digital pictures while compact discs soon became obsolete due to the rise of online music streaming, the financial industry might be in for a huge shakedown as bitcoin gains traction. Will banks cease to exist later on?


While several large financial institutions have shown openness to the cryptocurrency and urged governments to take active steps in integrating these developments, others are still struggling to understand how it all works.


Bitcoin and Banks


The Commonwealth Bank of Australia has recently announced its partnership with Ripple Labs in using blockchain technology for its offshore transactions. With this move, CBA is opening up to the idea that bitcoin-related developments could be the norm in the foreseeable future.


"I have a view that a bank account will become a storer of value, rather than a storer of currency value, so why can't a bank account be used to store loyalty points in the same way that you can use the slider on a Qantas website to decide whether you are paying with points or dollars?" said CBA chief information officer David Whiteing.

Blockchain Startups Named 'Top Innovatations' at Citibank's EMEA Mobile Competition

Blockchain-based social network GetGems was named 'Most Visionary Social Media Solution,' while bitcoin wallet Billon took home the title, 'Most Innovative Blockchain Solution,' during the Citibank Europe, Middle East and Africa (EMEA) Mobile Competition.


The annual competition, started just last year, was put together by leading global bank Citi and sponsored by IBM Cloud Computing and Mastercard Start Path, the payment company's fund to boost financial innovation.


Startups from 18 countries pitched 77 financial products and services to Citi executives and technology experts at showcases held in Nairobi, Jerusalem, Warsaw and London. Citi made the call for startups to apply in February and held the actual competition in April.


Overstock to Issue "Digital Corporate Bond" on Bitcoin Blockchain

UPDATE (9th June 10:49am BST): Overstock CEO Patrick Byrne has bought the company's first cryptobond for $500,000. "I intend to demonstrate my belief not just in Overstock, but in the TØ.com platform that we built and, indeed, in the cryptorevolution itself," he said in a statement.


E-retail giant Overstock has announced it will utilize colored coins to issue what it calls a "digital corporate bond", or a cryptocurrency-based security, based on the bitcoin blockchain.


The company said in a 5th June press release the issuance forms part of its development of cryptographic security technology aimed at reducing trade settlement friction.


Overstock previously expressed its interest in creating a cryptotoken-based security in an April filing submitted to the US Securities and Exchange Commission (SEC).


"To Young People, Bitcoin Makes A Lot More Sense"- Jeremy Gardner, College Cryptocurrency Network

Jeremy Gardner is the cofounder and Executive Director of the College Cryptocurrency Network - an international non-profit dedicated to blockchain education, innovation, and development that has taken root at MIT and has since then grew into a global network.


The CCN was established to help nascent, burgeoning, and not-yet existing college organizations build a presence on their respective campuses, receive administrative recognition and funding, and help students connect with similar college groups. Gardner also runs a small angel investing and consulting firm, Ausum Ventures.


CoinTelegraph had the chance to speak with Jeremy about his success and future plans with the CCN as well as the importance of Bitcoin education and support for young people wanting to get into the space.