Tag Archives: cryptocurrency

Mainstream journalist makes bizarre attempt at living on Bitcoin for a week

Source: Bitcoin.com
by Samuel Haig

“CNBC journalist Seema Moody recently published a report detailing the trials and tribulations of her attempt to live for a week solely using bitcoin as currency. This report, and others like it, fail to represent the actual ease with which one can exclusively use bitcoin as a money commodity, and spreads myths about the impracticality of cryptocurrency as a mean of exchange.” (06/22/17)

https://news.bitcoin.com/mainstream-journalist-makes-bizarre-attempt-at-living-for-a-week-using-bitcoin/

Why some cryptocurrencies fail and some don’t

Source: Foundation for Economic Education
by Larry White

“A well-known obstacle to the greater popularity of Bitcoin as a medium of payment is the high volatility of its exchange value. This volatility results from its built-in quantity commitment: because the number of Bitcoins in existence stays on a programmed path, variations in the real demand to hold Bitcoin must be accommodated entirely by variations in its unit value. When demand goes up, there is no quantity increase to dampen the rise in price; and vice-versa for a fall in demand. Not surprisingly, several cryptocurrency developers have thought of creating a cryptocurrency with a price commitment — namely a pegged exchange rate with the US dollar — rather than a quantity commitment, in hopes of greater popularity. The aim is to create a system in which dollar-denominated payments can be made with the ease, security, and low cost of Bitcoin payments, but without the exchange-rate risk.” (06/20/17)

https://fee.org/articles/why-some-cryptocurrencies-fail-and-some-dont/

The risks of Segregated Witness: Opening the door to mining cartels

Source: Bitcoin.com
by Craig Wright

“The bitcoin community continues to debate Segregated Witness, the Bitcoin Core development team’s proposed scaling solution which would separate signature data (witnesses) from transaction data. There are numerous risks with SegWit, but one in particular needs more attention: SegWit opens the door to methods of collusion and mining cartels which could undermine the bitcoin network.” (06/19/17)

https://news.bitcoin.com/risks-segregated-witness-opening-door-mining-cartels-undermine-bitcoin-network/

Central banks are driving many to cryptocurrencies

Source: Ludwig von Mises Institute
by Demelza Hays

“Two years ago, Bitcoin was considered a fringe technology for libertarians and computer geeks. Now, Bitcoin and other cryptocurrencies, such as Ethereum, are gaining mainstream adoption. However, mainstream adoption has been propelled by financial speculation instead of by demand for a privately minted and deflationary medium of exchange. After the Fed’s rate hike this week, Bitcoin and alternative cryptocurrencies, such as Ethereum and Dash dropped in value instantly. Bitcoin, for example, dropped by approximately 16% in value while other coins dropped by approximately 25%. However, Bitcoin’s price recovered to the previous high within 18 hours. The reaction of the cryptomarket to the Federal Reserve announcement provides evidence that cryptocurrencies are seen as a safe-haven investment during times of significant fiat currency dilution.” (06/16/17)

https://mises.org/blog/central-banks-are-driving-many-cryptocurrencies

Bitcoin drops to three-week low on profit taking

Source: Reuters

“Bitcoin fell to a three-week low on Thursday as investors took profits partly in response to a bearish report from Goldman Sachs as well as concerns about a Chinese bitcoin miner’s plan to undertake a ‘hard fork’ that will result in a split in the digital currency. … Bitcoin fell as low as $2,120 on the Bitstamp on Thursday and was last down 6 percent at $2,290. On the week, the currency has fallen about 22 percent, on track for its largest weekly slide since December 2013. On Monday, bitcoin hit a record just shy of $3,000. So far this year, bitcoin remains up 137 percent.” (06/15/17)

https://www.reuters.com/article/markets-forex-bitcoin-idUSL1N1JC1HN

Major Bitcoin exchanges hit by cyberattacks as record rally makes them a target

Source: CNBC

“Multiple cyberattacks on major bitcoin exchanges this week highlight the many challenges for the young digital currency world. A surge in investor interest also overwhelmed major bitcoin websites, while record-breaking levels of fundraising for new digital currencies add to worries that the largely unregulated cryptocurrency industry will be unable to manage the hype. … Bitfinex, the largest U.S. dollar-based bitcoin exchange, said on its status website Wednesday morning that its platform was under distributed denial-of-service attacks, or DDoS, that attempts to paralyze a system with a flood of information. … The news followed smaller BTC-e exchange’s tweet Monday of a similar attack on its systems that afternoon, when its website also temporarily went down. By Wednesday morning, BTC-e had deleted the tweet and its website showed trades going through.” (06/14/17)

http://www.cnbc.com/2017/06/14/major-bitcoin-exchanges-hit-by-cyberattacks-as-record-rally-makes-them-a-target.html

The hidden reason behind Bitcoin’s increasing fees: Darknet mixers

Source: Bitcoin.com
by Jamie Redman

“Just recently a darknet marketplace (DNM) vendor who details he’s been involved with the bitcoin industry for five years, says the rising fee market is caused by marketplace mixers that process multiple transactions at a time. The vendor details that DNM sales using these mixers are forcing him and many others to pay for 50 transactions at a time at ten times the cost, to cover their tracks.” [editor’s note: If I run a store and see that I have customers routinely waiting in line for 20 minutes, I don’t jack up my prices, shrug my shoulders, and tell people who complain ‘well, it’s all those people coming in to buy beer.’ I hire more cashiers and install more registers and checkout lanes. If the network congestion is coming from dark net markets and mixers, well, so what? The solution remains the same: Increase the block size – TLK] (06/13/17)

https://news.bitcoin.com/the-hidden-reason-behind-bitcoins-increasing-fees-darknet-mixers/

Vxlabs reveals Jaxx wallet “vulnerability”

Source: ETHNews

“On June 9, 2017, Dr. Charl Botha, owner and software engineer at vxlabs, published a brief analysis of the 12-word backup phrase used to restore Jaxx wallets. Botha positively identified the vulnerability on the Jaxx Chrome extension v1.2.17 and the Jaxx Linux desktop app 1.2.13. The Jaxx wallet does not need to be running for this weakness to be exposed. Botha expressed the primary problem is that Jaxx encrypts the 12-word phrase using a ‘hard-coded encryption key.’ Using relatively straightforward code, decryption from local storage is possible. … Today, tenuous reports circulated claiming that Jaxx users have lost $400,000 to theft. Jaxx’s director of business and community development, Charlie Shrem, told ETHNews he categorically denies this allegation: ‘There is no vulnerability, no one lost funds here. The author of the article basically says that someone can retrieve your 12 word backup seed if they have access to your device. If you aren’t securing your device (pin, password, encryption, etc) how can you blame JAXX if someone steals your unsecured device and steals your money?'” (06/12/17)

https://www.ethnews.com/vxlabs-reveals-jaxx-wallet-vulnerability

The rise of digital money has exploded since Bitcoin’s creation

Source: Bitcoin.com
by Jamie Redman

“Bitcoin changed the landscape of digital money when it was introduced to the world in 2009, and was followed by many other types of cryptocurrencies. Now bitcoin and the over 800 copycats (so called altcoins) have reached a very large market valuation of $110 billion. Let’s take a look at how this emerging digital assets landscape began and where we are today.” (06/12/17)

https://news.bitcoin.com/digital-money-exploded-bitcoin/

As Bitcoin’s price rises security shouldn’t be taken for granted

Source: Bitcoin.com
by Jamie Redman

“Recently there have been numerous reports of people losing their bitcoins to hackers and malware as bitcoin’s price continues to grow in value. It is safe to assume that organizations and individuals trying to steal people’s bitcoin reserves will persistently increase because the decentralized cryptocurrency becomes more valuable to thieves.” (06/11/17)

https://news.bitcoin.com/bitcoins-price-rises-security/