For no apparent reason NEM has given up the chase for these coins. In all fairness I don’t think it was ever their issue, the stolen coins were the fault of the Coincheck Exchange’s security and not due to any flaw in the NEM client or network side. Of course naturally they were interested but one bold prediction is that “hackers would not be able to launder the coins due to lack of liquidity”. I am not sure if the NEM developers really believed that or if they thought heat on the exchanges would dissuade or slow the thieves down. I suspect they exchanged the NEM for other coins and then sold them back again clean through multiple exchanges.
I would say this isn’t bad for cryptocurrency because bank heists occur each day and nothing stops one from spending or exchanging the money in real life. It’s really no different than the initial fears of “e-commerce sites were hacked” just as real life stores have theft and holdups everyday. It is just a matter of mitigation whether physical or virtual.
But with that aside NEM clearly said they were ending the chase and wouldn’t say much more due to the “sensitivity of the investigation”. This is something I find a little strange, is it that they did find something but the authorities have forbidden them from disclosing it?
Was this an inside job on the part of Coincheck in Japan or was it something else explosive that they found? Could it have been a rival currency, bankers or government behind the hack? Anything is possible and speculation will rightfully run abound until more details emerge.
Pablo Esobar’s brother makes some very bold claims surrounding his new cryptocurrency launch.
One of those claims is that Bitcoin was created by the CIA, however this may be contradicted by the fact he also claims he met a Satoshi Nakamoto of Japan. As proof he shows a Passport bearing the same name:
Of course it is possible someone from Japan could be working for the CIA, most people don’t believe a single person created Bitcoin. So I do think there is credence to believing a large organization such as the CIA or other resourceful and skilled group created Bitcoin (so I call this one plausible).
Some critics have said his website for his coin Diet Bitcoin was nearly copied from the original bitcoin.org and that so are the specs. I’m going to be fair in that I don’t see how Diet Bitcoin is any worse than other Bitcoin forks such as Bitcoin Gold. As many know I am against hardforks as I see them as counterfeiting, being confusing and just simply wrong but it also illustrates weaknesses in any currency which can be copied in such a manner (where I believe forks should be impossible to keep the network secure and ensure integrity).
I couldn’t have said it better myself although I have said as much about all cryptocurrencies which have a public ledger. Edward Snowden made the comment at the Blockstack event in Berlin, Germany. They are completely insecure and unsuitable for personal or business use in the long-term due to a lack of privacy. There are other issues that Edward touched on such as extremely slow transaction times and many more I’ve talked about in other posts.
Snowden also predicted that a coin which fixes these various issues could be the one to replace Bitcoin. While I fully agree privacy and security in Bitcoin and most other coins are an issue, aside from that most currencies are slow, inefficient, difficult to use and simply don’t work properly to send or receive payments. This will all eventually be fixed but so far what I find is that some currencies fix one problem while ignoring the rest.
I have warned for awhile about these hardware wallets. I’ve never trusted them as you truly don’t know what is in the hardware or firmware and if it could be extremely vulnerable. As bad as it sounds a traditional, secure PC is still the safer way to handle your cryptocurrency.
A teenager stumbled upon a vulnerability by noting the CPU that controls the private keys cannot differentiate between authentic or user made firmware. This CPU is used to transmit data including keys. Without much effort he was able to compromise this supposedly secure hardware wallet.
On top of that it looks like Ledger tried to downplay the issue and brush off the teenager who warned them of the vulnerability. In all fairness physical is required but that’s not good, you shouldn’t worry that if your hardware wallet is found that someone could easily extract your private keys and coins from it!
They’ve also recently admitted another vulnerability exists where attackers could trick users to send out their funds to hackers.
For this reason I still don’t recommend hardware wallets, you are much safer on a secure computer.
Unsurprisingly Edward Snowden recently revealed to the world that the NSA is tracking cryptocurrency users including Bitcoin. What makes it worse, but also not surprising is that they tricked users to install security software they wrote that actually feeds all of their private data, cryptokeys, back to the NSA directly. It is soon going to be an absolutely necessity to increase your own security and to start using better, more secure coins that cannot be so easily tracked. This is the equivalent of the government following you around and poking around your wallet and watching each transaction you do even with cash. There’s no privacy anymore and ironically cryptocurrency is part of this reason, or shall we say at least, the majority of insecure, public, permissionless blockchain based currencies. This could send the value of currencies like XMR/Monero skyrocketing as a Bitcoin alternative. While Monero is in my opinion better in almost everyway to Bitcoin, it is still not the perfect coin as it does have some issues including the use of PoW and of course the whole public, permissionless issue, speed issues etc..
First of all bravo for Coinbase, with a lot at stake itself, for getting this issue right in the following quote:
There is so much uncertainty about the definition of a security and the scope of regulatory control that the market is being chilled. This is bad for everyone because the technology won’t stop — it will simply move overseas and we will miss out on the opportunity to cultivate the benefits in the U.S.
Much like I’ve been saying is that governments who are overly aggressive, ambiguous and don’t create a fair playing field for cryptocurrency and related companies will be sidelined. Cryptocurrency cannot be contained by borders anymore than the web could be. Naturally, I do agree certain practical laws and regulations should apply but the laws should be clear and easy to follow. If companies are essentially being threatened, raided and faced with uncertainty it hurts both the company and investors. Ultimately as I’ve said before it will drive these huge sums of money away to countries that treat cryptocurrency users, traders and companies well.
There are so many conflicting statements from governments around the world and multiple bodies in the US. It sometimes seems as if government officials and bankers who have a lot of input in these matters diverge on the matter. This is OK but it should not be reflected by creating an atmosphere of fear and confusion whether by design or by fluke.
We all see the market has been impacted significantly with nothing but negative press for cryptocurrency but I believe it will resolve on the upside as investors realize it isn’t going anywhere and no single government or bank can ever stop it. In fact I predict that the market may just start using more privacy and security based coins and trade them exclusively and directly for goods, bypassing fiat altogether. Ironically this is probably the last thing governments and banks want but this is where all of this action is heading towards in my opinion.
Despite so much turbulence in the markets Ripple has returned 4.8% vs Bitcoin’s 2.64% in the last 24 hours or Ethereum’s -.75%. Ripple is proving itself to be able to withstand strong headwinds after nearly hitting the $5 mark last year. Of course $.70 is a far cry from its all time high but considering the market as of lately this is impressive. I think despite the concerns over XRP’s future in terms of it being associated with large and central banking clients, there is value in it being a hedge. This is one of the reasons I invested in Ripple as I feel with increasing government scrutiny, regulation, threats, bad news etc.. that this would all cause Ripple to return much better in the long-term. However as I’ve said in past posts, there appears to be the very real fear and possibility that Ripple may just dump XRP if the banks tell or pay them to. In fact I even e-mailed them with detailed concerns from another blog and they had no comment other than asking me to check their news, blog and website so at this point I feel it is very plausible. Ripple’s affiliation with banks and government will either help it right to the top or it could weight down Ripple. Besides that I feel Ripple is a fairly good currency but does suffer from a few other flaws that I won’t get into here.
Basically the SEC is making it easier for cryptocurrencies to legally IPO with an ICO if that makes sense. They have lifted the caq from 50 million to 75 million and a few ICOs have already launched under this rule. The SEC’s aggressive pursuit of cryptocurrency projects, traders and exchanges will either have one of two effects in my opinion.
- The SEC could create a strong cryptocurrency ecosystem if it is fair with its rules and regulations. This would be positive for the US cryptocurrency market.
- The SEC could completely alienate cryptocurrency users, traders and exchanges and force the majority of money to move offshore and this would be disasterous for the US economy but not necessarily cryptocurrency in the longterm.
It is concerning that the SEC seems to be going after even large firms and ICOs like tZero. If they are trying to show no one will be exempt they’re doing a good job but they’re also giving incentive to ICOs and related business to move away from SEC jurisdiction. Another concern is that the SEC as a branch of the US government can now legally and literally censor ICOs. If an ICO is coming out that restores free speech and the US government doesn’t like this do you think they will be allowed to ICO by the SEC? It could lead to far more than just financial consequences very quickly.
Only time will tell where things head but so far I suspect things are heading out of the SEC jurisdiction and people, especially investors, may view US cryptocurrency companies as a ticking time bomb or at least a liability.
In this case a Florida government employee was arrested for “mining Bitcoin”. But there’s more to the story that is probably missing or inaccurate.
Many people use work resources to mine but this case is unique. This IT manager apparently spent $22K using his workplace issued credit card on mining hardware including dozens of GPU cards.
Considering we are talking GPUs the IT manager was more probably mining Ethereum or another profitable coin. It also could be he had some ASICs for Bitcoin running considering he racked up an extra $800/month in power consumption!
The moral of the story is that he wouldn’t have been arrested and charged with theft and fraud had he not used his work credit card.
I could see it being normal for an employee to be disciplined but its a gray area especially for workplaces without applicable policies for mining.
As much I like mining here is one of the evils that it can impact anyone paying utilites.
Youtube has announced it will be the new thought police. They’ll be doing this by discouraging and contradicting any thoughts, beliefs or theories that are not within mainstream beliefs or teachings. At this rate they’ll have met the gold standard for censorship and subversion and China will be viewed as an easier place to share your thoughts. On its face it may not sound that bad to link to Wikipedia articles but in fact anyone can write and manipulate Wikipedia. Google will be choosing what counterpoints to make by of course selecting which article(s) get linked to. This is quite alarming and also frustrating since hate, racism and other harmful activity has been rampant on the web ever since it began but no company or government have made any concrete steps to counter it. So why worry about people posting their alternative beliefs and thoughts online and exposing the lies of the news? By the gauge of most the mainstream news is the fake news yet media giants like Facebook want to declare thoughts outside of that realm as “Fake News”. By this method then the PRISM system of spying on and intercepting people’s private information is a “bad conspiracy theory” that people have to be warned away from (of course most now understand this was never a conspiracy since Edward Snowden revealed more details about what most already knew). There are some valid reasons for this to be done (from the perspective of nice government men and corporate greed). There is a lot of information being shared on Youtube about pharmaceutical companies and really whole swaths of very solid information about a lot of things going on in our world. The majority of it is well sourced and quoted and most people won’t view that content as conspiracy. Could it be that anything that doesn’t fit the viewpoint or ends of certain elite companies and people are what is really being targeted? Until racism and hate has been cleaned up from these platforms I am just not buying there is any good or genuine reason for Google to do this. I think we’re heading down a slippery slope to the point where freedom of thought and expression will be completely eliminated gradually through these policies. Eventually Google will probably start deranking websites which fit into this category of “non-conformity” to the mainstream and elitists.
What do you guys think? I think it’s time to support Tron (TRX) and any other decentralized social media platforms. It’s time to take the internet back!