Tag Archives: cryptocurrency

Decision time for Bitcoin?

Source: American Institute for Economic Research
by Patrick Coate, PhD

"The current problems are an impressive illustration of both Bitcoin’s strengths and weaknesses. Bitcoin’s blockchain — the ledger of official records of Bitcoin creation and transactions — is continually updated by computers running Bitcoin software. A new block is added every ten minutes, and 'miners' that add these blocks are rewarded with newly created Bitcoins and transaction fees. The problem that has been brewing for some time is that the network is designed to add a new block every ten minutes no matter what the traffic, and each block only contains 1 MB of information. If there are more desired transactions than can be fit onto a new block, users have to pay higher transaction fees or wait. This is in contrast to credit card transactions, for instance, in which Visa or MasterCard can process huge numbers of transactions almost instantaneously. As Bitcoin increases in popularity, demand for transactions continually increases and this problem only becomes more acute. This is a serious bottleneck to any desire for Bitcoin to be used by a wide consumer base." (04/21/17)


Belgium: Pol wants guidelines for regime fencing of stolen Bitcoin

Source: CryptoCoins News

"Belgium’s justice minister, Koen Geens, has advised the government that the country’s laws need to cover virtual currencies like bitcoin, according to HLN. He wants the legal obligations that apply to the financial sector to apply to virtual money, which to date has not been subject to the established law. Geens is reportedly trying to determine how the government can [fence] bitcoins [stolen] in criminal cases. These include 1,050 bitcoins [stolen] in two separate drug cases, valued at more than $1.2 million." (04/18/17)


Traders raise concerns as biggest Bitcoin exchange halts deposits

Source: CoinDesk

"An announcement by one of the world's largest bitcoin exchanges has stoked fears another Mt Gox-style meltdown may be brewing. The largest bitcoin exchange by US dollar volume in recent weeks, Bitfinex revealed today it will be unable to accept incoming wires starting tomorrow, a statement that comes after it disclosed late last week that it was experiencing delays in US dollar withdrawals. … The victim of a hack last August, Bitfinex has shown a propensity to bounce back from operational difficulties. After losing nearly $65m in customer funds, it would go on to 'socialize' losses among exchange users, using a new cryptographic token to credit customers. The system would later win praise from supporters, who saw it as a creative way to avoid bankruptcy and pay back users." (04/17/17)


Bitcoin wallets under siege from "Large Collider" attack

Source: Fortune

"A group called the 'Large Bitcoin Collider' claims it can smash open bitcoin wallets by using a so-called brute force attack, which directs mass amounts of computer power at individual wallets in order to guess their private keys. The project, which has been underway for months, relies on a distributed network of computers (similar to bitcoin itself), and invites anyone to participate — those who do could potentially share in the proceeds of the wallets cracked open. A 'trophy list' on the home page of Collider (an apparent reference to the Hadron Collider) suggests the group has successfully opened over a dozen wallets, though only three had any bitcoin in them. It's unclear if the group is motivated by financial gain or the cryptographic challenge of smashing wallets — the answer is probably both based on the site's webpage and outside observers." (04/15/17)


Would Bitcoin "function" in a societal collapse?

Source: Bitcoin.com
by Wendy McElroy

"Even without nuclear war, would bitcoin be able to function during a collapse or a cold war? Yes. Electricity and the internet may be less reliable or more expensive but they would be available. An increasing dependence on the blockchain would make it a top economic priority. It would also be a top military priority. In October 2016, the Pentagon revealed it was actively exploring blockchain technology 'to create tamper-proof military computer systems, including those used to control America’s nuclear weapons.' Other nations are undoubtedly doing the same." (03/30/17)


It's time to fight fire with fire — is the Chinese government pushing Bitcoin Unlimited?

Source: Liberty Blitzkrieg
by Michael Krieger

"Irrespective of the scaling debate, we seem to have an uncomfortably centralized Bitcoin ecosystem in some important and meaningful ways. It is this backdrop which makes the current situation so concerning, and it is this backdrop that has made Bitcoin as vulnerable as it is right now. Now here's where it gets even more concerning. Many observers are warning that Bitcoin Unlimited (BU), if it happens, could make the centralization issue even worse. … If this is right (people I respect disagree on whether BU will make the miner centralization problem worse), this is a gigantic elephant in the room for Bitcoin Unlimited. It also makes it increasingly likely that behind the scenes the Chinese government is supporting BU as a way to either take over Bitcoin or destroy it from within." (03/20/17)


Bitcoin takes a beating while rivals soar to all-time highs

Source: MarketWatch

"Call it the schadenfreude trade. Bitcoin's price is taking a beating, having shed about one-fifth of its value over the weekend. At the same time, its biggest rivals in the cryptocurrency space are ascendent: The price of a single ethereum token, the second-largest cryptocurrency by market capitalization, touched an all-time high above $50 over the weekend just as bitcoin's losses were beginning to accelerate. … Ethereum isn't the only cryptocurrency benefiting from bitcoin's selloff: Dash, the third-largest cryptocurrency by market cap, broke to an all-time high above $100 a coin on Monday. Monero, the fourth-largest digital currency, touched an all-time high above $20. The bitcoin selloff started around the time that AntPool, the largest collective of bitcoin miners, on Friday adopted a controversial software update known as bitcoin unlimited." (03/20/17)


Can we trust the blockchain headlines of PR firms, VCs, corporatists and banksters?

Source: Bitcoin.com
by Jamie Redman

"Since the beginning of 2015, the word blockchain has become associated with a lot of hype, as many believe the technology will transform the world of finance and everything in between. Bitcoin is typically dismissed, even though it has proven to be a real world solution providing utility to many people. Private blockchains, however, have yet to show any real uses cases outside of a press statement." (03/15/17)


The Jason Stapleton Program, 03/14/17

Source: The Jason Stapleton Program

"Is Bitcoin Finished? No, not exactly, but it had a major setback last week. It’s a stretch to call it a setback. What really happened was the SEC stated publicly what professional traders and investors have been saying for years." [various formats] (03/14/17)


Do you think they'll use the US dollar on Mars?

Source: Bitcoin.com
by Julio Gil-Pulgar

"The space age is shifting into a higher gear with extraordinary momentum. The US Congress recently directed NASA to prepare a plan for deep space exploration, which should include sending humans to Mars. Concurrently, private companies continue to create and expand the commercial space market. In this regard, the fact that Bitcoin is borderless and possesses other relevant, unique features makes it essential for a space-based economy." (03/14/17)