New Hampshire: The World's Most Bitcoin-Friendly Community

When US-based online retailer, Overstock.ccom, began accepting Bitcoin at the beginning of 2014, the state of New Hampshire delivered the highest sales per capita of any state, relegating the company’s home state of Utah to second place. This was largely due to the presence in New Hampshire of the Free State Project, a political movement whose members tend to believe in decentralized and non-governmental forms of currency, making them very receptive to BitcoinCT r:  9.

Because of New Hampshire’s high concentration of tech-minded entrepreneurs, combined with its historically-high rating overall freedom ranking, the state has developed a robust Bitcoin ecosystem, allowing its residents to operate off of a 100%-cryptocurrency income.

World’s longest-running Bitcoin meetup

Manchester, New Hampshire is home to what its attendees claim to be the longest-running consecutive weekly Bitcoin meetup in the world. Zach Harvey, CEO and co-founder of BTM manufacturer Lamassu, founded the meetup with his brother and business partner Josh Harvey.

“My brother started the Manchester Bitcoin Meetup in July 2012, right after the 2012Porcfest which was a huge booster for Bitcoin.

Porcfest 2012 was one of the first times many of us got to actually use Bitcoin to buy and trade on a daily basis. For Bitcoin enthusiasts, it was a move from talking about Bitcoin and theorizing to using it in practice.

That's what led to having a weekly meeting, to experience using Bitcoin once a week. And of course talking about it as well.”

Matt Whitlock, longtime attendee of the weekly meetup, has been able to easily acquire or offload Bitcoin between private parties whenever desired.

“It's very easy to trade Bitcoins at the meetups. There's always someone looking to buy or sell. Of course, depending on recent market price movements, finding someone willing to trade at spot may be more or less difficult.”

Rent for Bitcoin

Matthew Ping, owner of Ledgeview Commercial Properties, is one of the several property owners in the Manchester area that accepts Bitcoin for rentpayments.

“To my knowledge I'm the only property management company that accepts Bitcoin in New Hampshire. I know of a few property owners who rent out rooms and would accept Bitcoin.”

A resident of the Freecoast region (another name for New Hampshire’s coast), Mike Vine, LBRY’s technology evangelist, also runs a coworking andevent space called the Praxeum, which accepts Bitcoin for membership dues.

“There has been a lot of interest. Bitcoin is a very popular means of exchange in our Freecoast community… coworking is a natural market for Bitcoiners. Both communities tend to be tech-oriented, free-spirited, and avante-garde.”

Bitcoin-friendly businesses of all types

Coinmap.org lists more businesses accepting Bitcoin in New Hampshire than in Massachusetts immediately to the south, despite having less than one-fifth the population, and lacking a major metropolitan area like Boston.

Within 20 minutes drive of downtown Manchester, Bitcoin-accepting businesses include pubs (including one of New Hampshire’s top-rated establishments), a pizza restaurant, a chocolate shop, a barber shop, a construction company, and two separate law offices. Elsewhere in the state, Bitcoin is accepted at a farm, a gas station, a silver mint, a news stand, and a firearms manufacturer. Finally, as has been publicized by CoinTelegraph before, ride-sharing service Arcade City, which officially launched earlier this month, allows drivers to accept Bitcoin payments.

The underground market

Unique to New Hampshire’s Bitcoin scene is theCommunity Market Day project, a decentralized marketplace featuring dozens of vendors, many of whom are clandestine. Jessica Love, the initiator of the project, also vends bulletproof coffee, receiving about one-third of her sales in Bitcoin.

“The vendors may vary some but typically a [Community Market Day Manchester] event has at least 10 out of the 12 - 15 vendors accepting Bitcoin. There are [Community Market Day] event hubs being opened over the next few months in 3-4 different areas around the Free State on rotating weekends where more Bitcoin users will be attracted to vending.”

Love has seen all manner of goods and services being sold for Bitcoin at the various market days around the state.

“But seriously, there are lots of products and services that you can pay for with Bitcoin at [Community Market Day] events. Farm meats, eggs, produce, honey, and such raised by friends and neighbors. Organic soaps, candles, coffee & tea, jewelry, crochet goods, household items, crafts, and more. Services too - massage, chiropractic care, and even hypnotherapy.  I believe that anything that can be brought to this market model and traded for Bitcoin should be. We are living the ultimate agorist experiment of an off the grideconomy and beginning to implement the currency.

I do see Bitcoin interest growing in the market. As more products become available in exchange for it, people seem happy to transfer more of their business to the new free market local economy that we are building here. The Community Market Day Project and Bitcoin are a winning combination.”

The world’s most Bitcoin-friendly community

It is very possible to live entirely off of Bitcoin in New Hampshire, as Whitlock has done.

“I took a cue from Erik Vorhees and cashed out early. Cashed out of dollars and into Bitcoins, that is. I only hold as much in dollars as I need to pay the current month's expenses.”

Harvey, having traveled the world for his business, LamassuCT r:  197, still finds New Hampshire to be the most Bitcoin-friendly.

“You don't get more Bitcoin-friendly than New Hampshire, specifically the Free State Project community. People are always discussing it with local businesses and now you can buy boutique chocolates, pizza and beer in Manchester. When Overstock started accepting Bitcoin, half the community bought something just to show support. I bought a towel set.”

When asked how friendly New Hampshire is to Bitcoin compared with the rest of the world, Whitlock responded without hesitation.

“That's almost an absurd question. There is no comparison. Practically everyone in this community either owns Bitcoins or wants to learn more about Bitcoin, with an eye to acquiring some. Outside of this community, people think it's something they saw referenced in a TV show once.”

 

Bitcoin Price: Compulsive Buyers Cool Down

Bitcoin price dropped below $420 yesterday and continues sideways in most exchange charts while compulsive buying at the Chinese exchanges attempts a revival of the strained, low-volume advance.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC

OKCoin 3Month Futures 1-Hour Chart

From the analysis pages of xbt.social, earlier today:

Unusual for the strangely coordinated bitcoin chart, today saw divergence in price action across exchanges. Whereas the USD exchanges (notably BTCe, Bitfinex, Bitstamp) have held near $420 for most of the day, the Chinese exchanges (BTCC, Huobi and OKCoin amongst others) have swung strongly in the chart area below yesterday’s high.

Early trade saw price make a larger correction from yesterday’s high. Again, there was disparity between exchange charts: price hit the top of the channel trendline illustrated in yesterday’s analysis chart (light blue), while the OKCoin 3Month shown above did not hit this upper resistance level and the bulls in the exchange are throwing everything including the kitchen sink and their grandma at trying to complete the journey.

If the current correction, apparent in the majority of charts, will continue lower then price must get below the 1hr 20MA (green) and in this case it is likely that price will target the lower channel trendline (light blue) and, if decisive, the red Fibonacci trendline.

Until we see price break below that lower channel trendline we can only assume that the uptrend will continue.

Summary

Bitcoin price continues advancing without technical support and the bulls will retain control of the uptrend until the lower channel trendline is broken. Had it not been for the fundamental security threat posed by non-science, and dangerous, populist-led projects like Unlimited and Classic(TM), this uptrend would have been believable – and enjoyed more participation.

Bitfinex Depth Chart and Buy/Sell Volume

Profit-takers wait overhead.

Click here for the CCN.LA interactive bitcoin price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

6 Ways Blockchain Could Change The World

Cryptocurrencies like bitcoin have seen a drop in enthusiasm over the past year as more people have become wary toward the currencies.

A spate of high profile scams and illegal transactions that involved bitcoin painted the cryptocurrency as a tool for criminals and an unsafe avenue with which to move money. While bitcoin enthusiasts continue to rework the currency's image in order to gain mainstream approval, others say the coin itself isn't what the world should be focused on.

Blockchain, the ledger-like technology that bitcoin runs on, has instead emerged as one of the most important technological advancements from the past decade. Blockchain's ability to facilitate transactions seamlessly without a third party intermediary has been driving bitcoin's popularity over the past few years.

Related Link: Ben Bernanke Sees Serious Problems With Bitcoin

While the system was developed in order to easily transfer bitcoins from party to party, many believe that supporting a bitcoin market is one of many uses blockchain could have in the future.

Some analysts believe that blockchain could significantly change the way that the financial system operates, overhauling everything from banks to exchanges. Others say the financial space is just the starting point for blockchain; the technology could be applicable to a wide range of industries and activities as it becomes more and more advanced.

Here's a look at 6 ways blockchain may be seen in the future.

1. Banks

One of the first places blockchain is likely to turn up is at banks.

As bitcoin threatened to disrupt the traditional finance system, many big banks created dedicated teams to study the cryptocurrency and experiment with its use. While the majority of banks are still wary of bitcoin itself, many have become increasingly interested in how bitcoin might improve their operations.

So far, the best use-case for blockchain within a bank has been to . At the moment, sending money from one country to another requires a great deal of time and administration, but using blockchain to run those payments could change that. For one, the system would likely make such transactions cheaper by eliminating the need for a middleman. Not only that, but blockchain would also speed up processing, a benefit to both banks and customers.

Related Link: Trading Bitcoin Binary Options

2. Exchanges

Blockchain has also been touted as a viable way to run an exchange. Using a ledger like blockchain would make trade data much more accurate by conducting the trades on a peer-to-peer basis.

Applying this technology to an exchange would cut down on the need for supervisors, a cost-saving measure that would also reduce the instances of human error. Not only that, but a blockchain-run exchange would also speed up transaction times, allowing traders to see real-time results when their trades are placed.

Nasdaq Inc (NASDAQ: NDAQ) has already begun for a blockchain-based exchange; the company has partnered with Chain, a blockchain infrastructure provider, to work on integrating blockchain into the exchange's operations.

While blockchain may be a good way to overhaul U.S. exchanges, many worry about technological problems that might arise, especially after several mishaps delayed trading on U.S. exchanges this year.

3. Legal Contracts

The legal space could also be turned on its head by blockchain, as the ledger has been suggested as a way to facilitate contracts. Dubbed "smart contracts," blockchain-supported contracts would be able to essentially enforce themselves without the need for a third party.

Computer programs would be able to set conditions laid out in a contract and when they were satisfied, the next part of the contract would be released. That means contractual obligations could be easier to enforce, as they would be automated and security surrounding such transactions would be enhanced.

One example would be the ability for a customer to pay for a package at the moment it was delivered. International Business Machines Corp. (NYSE: IBM) has a dedicated research team to investigate the possibility of creating smart contracts. The firm believes that such a system would enhance privacy for participating businesses and ensure that required conditions are met.

4. Politics

This year was the first year that a presidential candidate accepted bitcoin donations for their campaign, but many believe that blockchain will truly revolutionize politics in the years to come.

Voting has always been a hot topic among the U.S. public; each election ends with questions about accuracy and efficiency, as well as calls to reform the system and update the technology used. Blockchain supporters say that the ledger bitcoin runs on could the voting process by making it more secure. In such a voting system, blockchain would store each vote with an encrypted hash.

These encryptions are exceedingly difficult to break and would require a hacker with an impossible amount of computer power in order to change just one vote without being noticed. The Liberal Alliance, a political party in Denmark, has already to run its internal voting system using blockchain, making it the first political group in the world to integrate blockchain into its voting practices.

Related Link: Paris Attacks Weigh On Bitcoin

5. Microtransactions

Companies like Netflix, Inc. (NASDAQ: NFLX) have revolutionized the way people view content by disrupting traditional cable broadcasters and pushing more people to watch TV and movies online.

However, subscription services like that one may be under fire in the coming years if blockchain is used to facilitate . This type of system would allow users to pay per minute, or per show in a pay-as-you-go manner.

Such payment systems could benefit both customers and content providers, as it gives a more realistic view of what people are actually using. Subscription bundles often result in a great deal of unused services, which customers may be overpaying for. On the flip side, cheaper bundles or less complex bundled options could sway customers away from one subscription service to another, but a pay-as-you-go option allows customers to view and pay for exactly what they want.

5. Tipping

Another way micropayments might enhance online content is through a tipping service. Allowing users to "tip" for particularly entertaining or insightful social media posts or blogs would diminish the need for online advertising and give content creators a new source of income.

Many believe that such a system would improve the quality of online content and help eliminate some of the spam that circulates throughout the Internet. This kind of system would also be facilitated through blockchain, and many believe that a cryptocurrency like bitcoin would make such a tipping scheme possible.

6. Music

The music industry has been alight with debates over whether artists are being fairly compensated for the value of their work. Many believe that big name labels like Sonyare unfairly negotiating royalty fees with music distributors in a way that doesn't deliver that value back to the content creators themselves.

However, with the help of blockchain, some say the music industry could shift to a more artist-driven model in which blockchain makes artists' contracts more transparent, thus eliminating arguments over how royalties are distributed when their label makes a deal with a firm like Spotify.

In 2016, a company called is planning to work together with music companies and artists to see how blockchain-supported infrastructure might improve the way business is conducted within the industry.

White and Black Market Businesses Talk Bitcoin

During its early adoption phase, Bitcoin was frequently associated with black market uses, most notoriously the Silk Road. Today, CoinMap.org lists over 7,000 businesses employing BitcoinCT r:  9worldwide.

CoinTelegraph talked to several business owners, both legal and extralegal, about their use of Bitcoin.

White Market 

Dr. Darren Tapp, Ph.D., a mathematics professor who teaches mainly homeschooled children, started using bitcoin as a toy.

“As I learned more about it, I started to realize that bitcoin or something like it will change the future.”

He believes accepting Bitcoin helps him retain certain clients who pay with it exclusively.

Responding to local market demand

Matthew Ping, a property manager who manages several rental units in the Manchester, New Hampshire area, adopted Bitcoin to facilitate the rent payment process.

“There was a market demand for it in Manchester and I’m intrigued by the technology.  As a property manager I received the request to accept bitcoin because some of my residents get paid in bitcoin. I want to make it easier and less expensive for my residents to pay rent on time.”

Ability to instantly accept payments

And largely, this has helped Ping’s business, since he can receive on-time payments when residents are traveling anywhere in the world, without accruing an additional transaction cost or waiting for a check to arrive. However, he doesn’t see using Bitcoin as being without complications.

“It is sometimes difficult because the mortgage lenders and vendors don’t accept bitcoin yet. The rent payments have to be converted by using a service like Bitpay orCoinbase which make the facilitation much easier but still somewhat of a hassle.”

Compliance with all local regulations

Ping seeks to operate in complete compliance with all local governmental regulations for the security of his business.

“I operate my business above ground because I am a licensed Real Estate Broker.  I follow all rules and regulations set forth by the state and I wouldn’t do anything to jeopardize my livelihood.”

Dr. Tapp also operates above ground and reports income etc. to all applicable authorities, but admittedly faces less regulatory hurdles than Ping.

“The whole point of my project is to provide services outside of a highly regulated industry. Since I do not offer any certification,  I am not a school, and I do not claim to be accredited there are no applicable regulations to comply with.”

Black Market 

On the other side of the equation, CoinTelegraphCT r:  26 interviewed Bitcoin-using business owners who explicitly choose to avoid governmentcompliance. Ron Helwig, creator and owner of Shire Silver, an alternative currency based on precious metals, chooses not to report any of his activities to regulators.

“Well, I have no contact with government, if that's what you mean. No registration of the business, no taxes, no filings. The business isn't a corporation of any kind.”

Government cooperation as unprofitable

Amanda B. Johnson, co-founder of dailycryptocurrency and peer-to-peer network news show, has also not sought out compliance with any legal or governmental framework.

“We try to only do things that are profitable, and I wouldn’t consider a governmentpartnership to be profitable.”

Johnson, who heavily relies on Bitcoin as it makes up roughly 90% of her business, sees it as immensely practical.

“Sending and receiving payments is so fast and easy, and when they’re received they’re confirmed within 20 minutes, so it’s not days with a bank, it’s not I have to go to an ATMnow, it’s not I have to go deposit a check now. It’s I sent my client an invoice 5 minutes ago, they paid me 4 minutes ago, and now the money is right here on my computer.”

Avoiding involving third parties in Bitcoin transactions

Helwig, who runs a lean operation and whose business does just-in-time manufacturing, nonetheless stopped using BitpayCT r:  13specifically to avoid government involvement.

“When I started accepting it I was using a website plugin to use Coinapult's services. I switched after a while to a Bitpay plugin. But recently Bitpay has caved in to KYC/AML requirements (even though they shouldn't apply in my case) and I am not able to give them the information they demanded, so I stopped using their plugin. For now I've been using manual and ad-hoc processes, although I am planning on implementing my own plugin which won't rely on third parties.”

Bitcoin as a way to avoid government involvement

Bitcoin allows Helwig to operate outside of a legal structure more freely.

“When using a third party such as Bitpay, there really isn't much difference as far as legal ramifications since they will be required to behave similarly to Paypal or other more traditional money services. But if you handle things yourself then yes bitcoin can be more convenient in that you don't need to worry about things you do getting reported without your consent or knowledge. And of course bitcoin's non-legal advantages make it even more attractive.”

Bitcoin Price Fluctuation In 2015 And A Forecast For 2016

The year 2015 has ended and investors can now calculate the result of their investment activities. What has Bitcoin brought to us last year? On the first day on the year 2015, January 01, 2015, the price of BitcoinCT r:  9 moved to the level of $313, which is 59.35% less than a year before that, on January 01, 2014, when the price was $770.

During the first two weeks of 2015 the price of Bitcoin dropped sharply to $177. The price then rose gradually to $250 in September and had moved to another top of $300 by the end of October. The maximum price in 2015 we saw in December 2015, when the Bitcoin price was approaching a level of $480. However, on New Year’s Eve investors decided to take their profit and the price of Bitcoin has now dropped to $430.

As we have seen, in 2015 Bitcoin had to deal with a lot of factors that influenced the cryptocurrency’s volatility and price. However, in 2015 the daily volume of transactions reached new levels as Bitcoin approached world famous payment systems, such as Western Union and PayPal. Bitcoin’s transaction fee is relatively lower than most other payment systems. The volume of investments in USDollar in 2015 increased to $469 million. More than one hundred thousand companies worldwide are now accepting Bitcoin as payment. Therefore, despite all the difficulties that the cryptocurrencyhad to face in 2015, Bitcoin confidently holds its position and is firmly embedded in our daily lives.

The year 2016

In 2016, with some confidence we can say that Bitcoin will continue to grow. One reason for this is the two-time reduction of new Bitcoin coming into the market. According to the Bitcoin algorithm the reward for confirming one block is reduced twice every four years. And the year 2016 is one such year. In addition, the growing popularity of Bitcoin as a means of payment for goods will lead to an increase in its use. These two factors together will cause increased demand and a shortage of Bitcoin in the market.

According to Tone Vays, Head of Research at BraveNewCoinCT r:  62, the bullish trend of Bitcoin will be restored in the 3rd quarter of 2016, but has not ruled out a rollback to the level of $300. We asked Patrick Dugan from USA - CFO at Omni Foundation about when to expect a recovery of the bullish trend on Bitcoin, too. According to him:

“We're in the eye of the storm of an extremely bullish wave that will eclipse the previous one before going into an even larger triangle consolidation between $600 and $350.”

Let’s now take a look at the major competitors of Bitcoin. In our opinion, they are the US Dollar, Euro, British Pound, Japanese Yen, Chinese Yuan andGold. This time oil will not be considered due to the collapse of its price.

Dollar

The US Dollar is the strongest and the main competitor of Bitcoin. Despite December's decline, the Dollar has managed to finish the year 2015 with a growth of 9 percent against other major currencies. Last year, the dollar has shown the maximum growth of the last 10-15 years. According to experts at the big banks, the Dollar will continue to grow in 2016 as well. So, Bitcoin will always feel the pressure of the Dollar.

Euro

The second most important currency in the world and the main competitor of the Dollar is the Euro. It has a leading position as one of the major reserve currencies. The Euro is considered to be a funding currency.  This means that European banks use this currency to raise funds in order to ensure their core business. Previously, this function was performed by the Dollar. Such status has a positive effect on the Euro and makes it a sort of safe sanctuary. However, forecasts for the Euro price in 2016 are disappointing. By year end, the EUR/USD exchange rates could come close to a level of 0.95.

British Pound

Since 2006, the Pound returned itself to a status of reserve currency and became the third largest among the world's currencies. An especially noticeable rise in popularity of pounds is seen in recent years. In 2016, the British Pound will be under pressure from the Dollar, due to the reduction of the budget of England and the constant threat of the UK’s exit from the EU. Moreover, theBank of England continually postpones rate hikes, which adversely affects the Pound. Next year, we will clearly see the decrease to 1.4 and maybe even 1.3.

Yen

Japan’s national currency has a status of reserve currency. In 2016, the Yen will obviously continue to decline against the Dollar to the levels of $130. However, there is huge potential in the Yen. As it is the only one  of the world's currencies, which in 2016 will be able to provide decent resistance to the Dollar.

Yuan

In 2015, Yuan fixed its positions as the main currency in settlements with the neighboring countries, and has become one of the most popular currency in the world. In Southeast Asia the Yuan is considered to be the main currency. The global share of RMB settlements also increased. Now, the Yuan is considered to be the fourth most popular currency in the world. However, the IMF has not included Yuan as a reserve currency yet. Rising pressure of Yuan may also put pressure on the Bitcoin. In China, as we know, there are three Bitcoin exchanges, and China has the largest the population in the world. Therefore, Bitcoin traders and users should pay more attention to Yuan movements.

Gold

In recent years we have seen precious metals gradually loses their status as safe investment instruments. The attitude to Gold is set to be quite negative and by end of the year it is possible that the price will fall lower than $1,000.

To date we are not considering other cryptocurrencies as competitors. That is a topic for another article. We also believe that the factors that affect the Bitcoin price with the negative and the positive side, will also continue to influence this cryptocurrency in 2016.

This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.

 

Bitcoin Mining Firm Butterfly Labs Settles with FTC Over Customer Deception Charges

The US Federal Trade Commission (FTC) has announced that bitcoin mining hardware company Butterfly Labs and two of its operators have agreed to settle charges that pointed to the company deceiving customers.

The FTC revealed today that bitcoin mining hardware manufacturer Butterfly Labs and two of its operators: part-owner and vice president of product development, Sonny Vleisides and general manager, Darla Drake have settled charges filed against the company.

Under the terms of the settlement, Butterfly Labs must pay the FTC $38,615,161, according to the judgement ordered against the mining hardware firm and its operators. However, that figure will be suspended when the company pays $15,000 while Vleisides pays $4,000.

Additionally, a judgement against the company’s general manager, Jody Drake was put forth at $135,878. The figure will be suspended again, “once she surrenders the cash value of all Bitcoins she obtained using company machines,” the FTC revealed.

In a statement, Jessica Rich, Director of FTC’s Bureau of Consumer Protection said:

Even in the fast-moving world of virtual currencies like Bitcoin, companies can’t deceive people about their products. These settlements will prevent the defendants from misleading consumers.

The judgements were suspended due to the defendants’ inability to pay, the FTC confirmed. The Commission also added that if the defendants have been found of misrepresenting their financial condition, the full amount of over $38 million will become due.

Following the FTC’s revelation of the settlement, Butterfly Labs released astatement that claimed:

BFC continues to believe that the FTC case has no merit, but agreed to settle for $15,000 to avoid ongoing litigation expenses and conserve remaining assets for payment of refunds to consumers.

The company contends that the typing up of assets and the FTC’s initial injuction meant that Butterfly Labs was “prevented” from issuing refunds to customers as well as the testing and shipping of additional products.

The original charges were brought forth by the FTC in September 2014, when Butterfly Labs was sued and shut down. At the time, the suit by the FTC alleged Butterfly Labs had engaged in “unfair or deceptive business practices in or affecting commerce.” Butterfly Labs subsequently attempted to dismiss the FTC complaint. Eventually, the mining hardware developer saw the light of day again afterreopening in early 2015.

Bitcoin could help cut power bills

The technology behind the Bitcoin virtual currency could help cut electricity bills, suggests research.  A blockchain-based smart plug that can adjust power consumption minute-by-minute has been created by technologists at Accenture.  The blockchain is the automated ledger that underpins Bitcoin and tracks where the coins are spent and swapped.  The plug shops for different power suppliers and will sign up for a cheaper tariff if it finds one.  Accenture said the smart plug could help people on low incomes who pay directly for power. 

The smart plug modifies the basic Bitcoin blockchain technology to make it more active, said Emmanuel Viale, head of the Accenture team at the firm's French research lab that worked on the plug.  Instead of just resolving and confirming transaction records, the Accenture work has changed the blockchain to let it negotiate deals on behalf of its owner.  Image copyrightGetty ImagesImage captionThe blockchain is an open record of which coins were used in which transactions  "It's about how we put more business behaviour or logic into the blockchain," said Mr Viale, adding that this essentially embeds a "smart contract" into the digital ledger.  The smart plug prototype works with other gadgets in the house that monitor power use. When demand is high or low it searches for energy prices and then uses the modified blockchain to switch suppliers if it finds a cheaper source.  So far, said Mr Viale, the Accenture system was just a proof of concept, but it could help many people on lower incomes who pay for their power via a meter.  Being able to quickly shift suppliers could save this group more than £660m in the UK annually, suggests Accenture research.  A blockchain-based system that can act on behalf of its owner might also prove useful as the Internet of Things becomes more ubiquitous, said Mr Viale.  Managing many different gadgets might be tricky without a more centralised system, he said,  Martin Garner, a mobile services expert at analyst firm CCS Insight, said blockchains were starting to crop up in many different areas including share trading, fishing rights databases and land registry claims.  They had two chief attractions for the Internet of Things, he said.  "They avoid dependence on any one supplier or ecosystem - some users have concerns about the potential dominance of key internet players creating, for example, the Google-of-Things or the Amazon-of-Things," he said.  "The second attraction is as a way of enabling autonomous trading between things, such as the appliances in your house being set up to re-order supplies from a pre-approved list of suppliers," he added.