Introducing Bitcache! Kim Dotcom’s Bitcoin shop front for MegaUpload 2.0.

 

More details are revealed of colourful racing identity Kim Dotcom’s terrible Bitcoin idea: Bitcache! Which even has a Wikipedia page! (With a totally non-promotional-looking edit history.)

Dotcom introduced the idea last year with this frankly disturbing tweet:

It wasn’t clear what the idea in fact was, but the crowdfunding pitch somehow netted £850,000 of actual money.

He released a video yesterday with a quick explanation and demo:


It looks like it doesn’t just supply a payment mechanism for MegaUpload 2 — it’s a frontend that lets you monetise any Internet files or “streaming site” — “two cents, two dollars, twenty dollars.” The Bitcache link is then available on MegaUpload 2. So it’s really a shop front for anything, taking Bitcoins as payment.

There are a number of problems with this idea, most of them being Bitcoin, which has been addressed at length on Rocknerd previously: it’s awful garbage you should stay away from if you value your bank account. (And I’m currently writing a book on how relentlessly terrible absolutely everything to do with Bitcoin and blockchains is.) Bitcoin is presently useless for micropayments — the median transaction fee is on the order of 50 cents US — so most of the money will be processed off-chain, where you can’t see it. But you can trust Kim.

It’s not clear how a shop front like this benefits from Bitcoin, except of course the hype angle, which has admittedly done wondrously for it in the past couple of days. Dotcom is only slightly a convicted felon with an extensive history as a con man, so I’m fully confident it’ll all be fine, fine.

 

3 thoughts on “Introducing Bitcache! Kim Dotcom’s Bitcoin shop front for MegaUpload 2.0.

  1. “It’s not clear how a shop front like this benefits from Bitcoin”

    Actually I think you might’ve been onto something when you mentioned the off-chain accounting. Fractional Reserve, anyone?

  2. “Fractional reserve” is a phrase from banking practice when there’s regulation, central bank backing, etc. The applicable concept here is the more standard Bitcoin business model: “just keeping everyone’s money.”

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