The Bitcoin Foundation was founded in September 2012 with the stated mission to promote, protect and standardize the use of Bitcoin for the benefit of users around the globe. The organization was modeled on the Linux Foundation and is mainly funded by its members and by for-profit companies that depend on Bitcoin technology.
A few days ago, one of the newly elected board members of the organization declared the group “effectively bankrupt”, claiming that the board members were hiding the Bitcoin Foundation’s financial difficulties to its members.
“The Bitcoin Foundation hates transparency. If they would have been transparent then everyone would know there is no money left.”
This immediately triggered big media unrest and enormous controversy, but somehow has been obscured. Now, the Bitcoin Foundation seems to be involved in more controversy regarding the new restructuring proposal. At issue is a sided discussion over how to maintain the Foundation financially viable while ensuring that funding keeps flowing for the Bitcoin Core development.
This also revealed that within the Bitcoin Foundation there is growing tension between members and their beliefs on whether the organization can continue to support bitcoin development. The Board members recently announced they were lacking funds to continue the current Bitcoin Core development process and that they would have to re-think their priorities.
Many believe that the organization leadership has been acting in secrecy and this has increased the level of distrust within the organization and to introduce a more decentralized approach on how decisions are taken.
The Bitcoin Foundation has been facing financial distress and allegations of incorrect behavior from board members. Now the organization is facing an internal skirmish, which upon ending will set the course for the Bitcoin Foundation’s future.