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Kim Dotcom Announces New Bitcoin Venture For Content Uploaders To Earn Money (reuters.com)

Posted by msmash on from the further-expansion dept.

Infamous New Zealand-based internet mogul Kim Dotcom plans to launch a Bitcoin payments system for users to sell files and video streaming as he fights extradition to the United States for criminal copyright charges. From a report on Reuters: The German-born entrepreneur, who is wanted by U.S. law enforcement on copyright and money laundering allegations related to his now-defunct streaming site Megaupload, announced his new venture called 'Bitcontent' in a video posted on YouTube this week. "You can create a payment for any content that you put on the internet... you can share that with your customers, with the interest community and, boom, you are basically in business and can sell your content," Dotcom said in the video. He added that Bitcontent would eventually allow businesses, such as news organizations, to earn money from their entire websites. He did not provide a launch date. Dotcom did not provide details on how Bitcontent would differ from existing Bitcoin operations or how it would help news organizations make money beyond existing subscription payment options.

1 of 38 comments (clear)

  1. It probably has little to do with Bitcoin by Baron_Yam · · Score: 3, Insightful

    Generally speaking, a 'Bitcoin payment system' isn't. You pay a middle man money for 'bitcoins', the middle man pays a vendor with your money (less their overhead).

    For appearances, they'll handle direct bitcoin deposits and withdrawals, but the real business is all good old cash and the bitcoin part is pretend. (Note: this is often useful for claiming hacks and loss of client funds)

    You'll still get hit with exchange rate differences, and you can bet the payment processor isn't taking a bath on Bitcoin fluctuations, so there will be something in the TOS about your account being settled in real currency as calculated at some point in the transaction process that is favourable to the processor.

    On the other hand, once you've handed over your real money, you don't have to deal with Bitcoin transaction issues, encryption keys, etc. Because you're not really using Bitcoin.

    You get BINO, Bitcoin In Name Only. Because if it was really Bitcoin, it wouldn't fucking work.