Crypto-Currencies Will Destroy The Criminal Bankster's Monopoly On Money
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CoinWallet.eu, the U.K.-based Bitcoin mining and wallet business has said it will be running another “stress test” in early September to test the Bitcoin network, according to International Business Times.
The company told the international journal that this round of “test” or “spam” attacks “will likely render most standard wallet software worthless and create nearly a 30-day backlog” in the system.
Bitcoin Magazine reached out to CoinWallet to learn more about the company’s plans but received no response by time of publication.
Stress Test will hammer the Bitcoin network
Much like its previous stress test in early July of this year, CoinWallet’s so-called “dust attack” will flood the network with thousands of small, spam-like bitcoin transactions that are large in data but small in value.
A backlog of thousands of transactions with almost no value (such as 0.0001 bitcoin) waiting to be confirmed can potentially tie up the network for hours.
Making it clear which side of the ongoing blocksize debate it’s on, CoinWallet said that it need to demonstrate that the current Bitcoin blocksize is inadequate and does not meet the needs of a growing bitcoin market.
Hello, welcome to episode 24 of The Bitcoin Game, I’m Rob Mitchell.
Earlier this month I got to speak with Andrew Lee from Purse, a company that allows people to use Bitcoin to buy stuff on Amazon, and at pretty large discounts. My own first thought about Purse was that it was some strange company trying to shoehorn its way between Bitcoiners and Amazon. But after talking to Andrew, I now see Purse as a company that is helping to spread the use and adoption of Bitcoin throughout the world. There’s a lot more to Purse than I realized! Hope you enjoy this interview.
Well-known Bitcoin investor Michael Terpin believes Bitcoin is now at the point in its evolution where Bitcoin firms can reach out directly to the consumer, citing Purse.io as an example of success in this pursuit.
“I think now we are the moment in Bitcoin where enough of the infrastructure has been built up we can serve the consumer,” Terpin said. “In January 2014, I said at a conference that you could not have the Google of Bitcoin until you have the Yahoo, and you can’t have the Netscape until you have the Cisco. Cisco is the mining equipment and brick-and-mortar of the Bitcoin system.” In Terpin’s opinion, Bitcoin has evolved in numerous ways quickly, allowing for Bitcoin to start reaching out to the consumer.
“Today we are dramatically further ahead in terms of quality of wallets and security and Two-Factor Authentication and multi-signature. This is all the stuff that didn’t exist or was very nascent when I first got into Bitcoin in the first part of 2013,” Terpin said.
In these bitcoin price watch pieces, it’s not uncommon for us to trade a relatively tight range. Over the last week or so, however, we had quite a lot of volatility in the bitcoin price, and it has afforded us the opportunity to widen out our parameters a little bit and try out some intra-range trading. We did this overnight in the Asian session on Thursday, and as we head into a fresh European session today, let’s try something similar. So, with this said, what are the levels that we are going to keep an eye on today, and how we going to look to trade bitcoin price as we head into the weekend? Take a quick look at the chart.
cointelegraph.com / Aaron van Wirdum / 2015-08-28 01:06 PM
Bitcoin mining pools BTCChina, BitFury, KnCMiner and 21 Inc. are now publicly backing Core developer Jeff Garzik’s BIP100 block size limit proposal, Blockstream and Bitcoin Core developer Pieter Wuille proposed the concept of Tree Signatures, and more top stories for August 28.
BTCChina, BitFury, KnCMiner and 21 Inc. Support BIP100 Block Size Proposal
Bitcoin mining pools BTCChina, BitFury, KnCMiner and 21 Inc. are now publicly backing Core developer Jeff Garzik’s BIP100 block size limit proposal. Under BIP100, the power to set the block size limit is transferred from the Bitcoin development community to mining pools – up to a roof of 32MB. Combined with F2Pool, the first and biggest pool to support BIP100, Garzik’s proposal is now backed by well over half of all hashing power on the Bitcoin network.
Blockstream’s Pieter Wuille Proposes Tree Signatures for Improved Multisig Transactions
Blockstream and Bitcoin Core developer Pieter Wuille proposed the concept of Tree Signatures, a multisig method with enhanced privacy features. Tree signatures can implement transactions that require more than one key-holder more efficiently than Bitcoin scripting.
“Merkle tree keys support very large 1-of-N. Schnorr signatures support very large M-of-M. This means that if we can write our spending conditions as a 1-of-(N possible M-of-M’s), we can build a Merkle tree consisting of Schnorr combined public keys.”
Bitcoin Company HashingSpace registers for US FinCEN regulations
Virtual currency firm HashingSpace Corporation has announced that it has filed its Registration of Money Service Business (RMSB) form with the US Financial Crimes Enforcement Network (FinCEN). The Bitcoin ASIC mining and hosting company’s decision was announced by HashingSpace Chief Financial Officer Terry Taylor.
coindesk.com / Pete Rizzo (@pete_rizzo_) / August 27, 2015 at 19:45 BST
Cryptosecurities and blockchain recordkeeping systems may not be subject to commercial transactions law under the US Uniform Commercial Code (UCC), according to new research from Cardozo Law.
Penned by professor Jeanne Schroeder, the 60-page research paper, released this week, provides a wide-ranging overview of how bitcoin transactions, both financial and non-financial, would be governed by laws relating to the exchange of property across US states.
The paper is the latest to highlight potential legal issues that could arise in disputes over ownership of cryptographic assets, such as bitcoin, following research by law firm Perkins Coie in January. At issue is that bitcoin does not fit the UCC‘s definition of money and challenges conventional notions of custody.
The UCC, first published in 1952, was created by private legal institutions seeking to harmonize state laws regarding commercial transactions. States may adopt the UCC as written or approve or deny specific changes to its provisions.
While the paper echoes many of Perkin Coie’s conclusions, it is perhaps one of the first to speculate on how the UCC would apply to alternative uses of blockchains. For example, Schroeder cites decentralized application platform Ethereum and Overstock’s tØ as a platform designed to enable the use of tokens outside of currency and payments.
The paper remarks that such transactions could be filed on a blockchain without any amendments to the UCC, stating:
This week on The Tatiana Show, Tatiana Moroz will be joined by Erik Voorhees and Shaban Shaame to chat about Spells of Genesis! It’s a brand new fantasy game that will use the blockchain and cryptocurrency as core elements of the in-game economy.
BTXCapital, the first bitcoin exchange to open in Iran, will be bringing the cryptocurrency to a previously untapped market. The company will will offer instant deposits and real-time buy and sell orders to users in the country through Draglet’s exchange platform.
Bitcoin regulation in Iran is still an unresolved issue, although the bitcoin exchange noted that there is an increase in demand for a remittance service in the country. The cryptocurrency could be the perfect vehicle, as it promises lower transaction fees compared to conventional forms of money transfer.
insidebitcoins.com / Bitcoinist.net / Aug 27, 2015 7:00 PM EDT
The confusion and tension surrounding the term “Bitcoin XT” is what many are pointing toward as a major factor of why the Bitcoin price has fallen significantly from the used-to-be norm of around $280. What exactly is BitcoinXT, and why is it causing so much controversy, to the point where mods on r/Bitcoin are censoring discussions regarding it?
What is BitcoinXT?
BitcoinXT, in its most basic form, is a fork, something we’ve seen before. A fork is a new version of Bitcoin Core that is no longer compatible with older versions and, therefore, creates a new chain of blocks which older versions will reject. This typically isn’t an issue; most people upgrade to the new Bitcoin core version immediately. However, with BitcoinXT being such a radical change, this could quickly escalate into Bitcoin splitting off into two distinct currencies.
BitcoinXT spawns from a single hotly debated topic: block size. Most people agree that the current block size of 1 MB will not scale well as more people use Bitcoin, effectively limiting the amount of transactions that can be recorded every 10 minutes or so. But how to address this issue is what’s causing the dispute.
The first solution most people come up with is to simply increase the block size. If 1 MB blocks are too small, why not just raise it to 2mb, 8mb, or some other size?
The Bitcoin block size is a hot topic in Bitcoin. Gavin Andresen has been at the center of the heated discussion of how to scale Bitcoin to accommodate higher transaction volumes. The Lightning Network has garnered much support as a possible solution to this problem.
The co-authors of the Lightning Network white paper, Joseph Poon and Tadge Dryja, gained credibility with the release of their ideas. Many projects have already seen the benefit of something like Lightning Network to their projects. And, according to Joseph Poon, this will be an easy thing for them to do.
“Most companies can hook into Lightning quickly, since there are minimal changes on backend service providers required,” Joseph Poon, a co-author of the Lightning Network white paper, told CCN. “They just hook into an API daemon running on top of bitcoind.” Even if a service is a hosted wallet, they can use the Lightning Network.
“It enables services like ChangeTip to do micropayments in a way in which the payment itself is decentralized between the service providers themselves,” Poon said. “So maybe in the future, when someone donates you $0.10 in bitcoin, you can spend it instantly on a newspaper article or video who get paid using Coinbase.” This doesn’t seem to be Poon’s preferred method of using the Lightning Network.
“Of course, it’s more fun and preferred to hold the coins yourself and use Lightning directly,” he added. As the Abstract for the white paper to Lightning Network reads:
cointelegraph.com / Evander Smart / 2015-08-28 11:13 AM
CoinTelegraph spoke with Genesis Mining head Marco Streng on the current state of the mining industry, the Life Inside a Bitcoin Mine project that aims to make cloud mining transparent, and how he sees the Bitcoin industry moving forward.
Bitcoin mining has become one of the world’s most difficult and competitive industries over the last 18 months. From the market price corrections after the Mt. Gox bubble burst, to specious national regulatory laws and banking lobbyist backlash, to the battle to have the latest and greatest ASIC mining rig technology and beyond, countless miners have fallen by the wayside. Not Genesis Mining, one of the world’s largest Bitcoin companies.
Not only have they survived, but they have thrived under the intense market pressures. They have even expanded their operations, creating Genesis Hive, to assist those who are looking to enter the Bitcoin mining industry do so under their umbrella of protection and leadership. Also, operations have been brought to new, more favorable regions like Iceland, while bringing you behind the scenes with a live streaming service to show you how the operation works in real time.
CoinTelegraph: How is the regulatory climate in Iceland for mining and running a cryptocurrency business?
Marco Streng: Owning and mining cryptocurrencies is ok. However, related to capital controls in Iceland, buying and selling bitcoin is prohibited.
CT: Are there other countries you would consider expanding to, or might recommend, as you see then as Bitcoin-friendly in their regulations?
The debate over the block size limit continues unabated. The details were covered in this week’s free 8-page Bitcoin Markets Report. We are also looking forward to seeing what you think when we publish the results from the industry wide Blockchain Scalability Survey currently being conducted. This is your opportunity to express your thoughts vote. For now we will cover two of the more important aspects here.
What has happened over the past two weeks is unfortunate and most of it stems from the political issues surrounding BitcoinXT, where people are forced to chose sides. There are also a lot of people in the middle, and even though many of them have been convinced to swing one way or another, the one good take away is that everyone will be paying more attention to core development in the future.
One of the concepts we should mention is the hierarchy of importance within the Bitcoin ecosystem. This can certainly be debated as well, but in the most likely order they are:
A virtual currency is shifting the idea of a centralized, corporeal currency while debates — with their pros and cons — on its safety and efficacy matters are underway.
Bitcoin is a digital currency that was created in 2009 by an individual or group called Satoshi Nakamoto, whose identity is still unknown.
One of bitcoin’s biggest features is that it is decentralized — not managed by typical monetary policymakers including central banks and finance ministries.
Instead, it is managed by groups or individuals who work as bitcoin miners, who earn (“mine”) bitcoins by running specialized computers that solve mathematical problems.
Users can use bitcoins by installing a bitcoin wallet on their computer or other device and send bitcoins to each other’s wallet addresses like sending an email. Users can create as many bitcoin wallets as they want.
coindesk.com / Pete Rizzo (@pete_rizzo_) / August 27, 2015 at 22:42 BST
“What can the blockchain do for me today?”
It’s a question that’s increasingly being asked by major financial institutions, and one that San Francisco-based Blockstack (formerly CryptoCorp) has been focused on finding an answer for since its relaunch in past June.
One of a growing number of companies seeking to provide custom blockchain solutions, Blockstack boasts unique expertise in Standard Chartered Bank veteran Peter Shiau, who serves as the company’s COO, and Phillip Harris, advisor and former head of FX at Nasdaq.
Shiau indicates that Blockstack is seeking to capitalize on the “thought shift” currently underway at major financial institutions, which by all accounts are becoming increasingly aware of the potential payoffs from utilizing blockchain-based systems as distributed databases.
In times of market turmoil, investors generally move their money away from riskier holdings into safe-haven currencies or precious metals such as gold. For Tim Draper, a founding partner of prominent Silicon Valley venture capital fund Draper Fisher Jurvetson, bitcoin could emerge as a safe-haven store of value during this type of market environment as well.
Global equity markets have been tumbling in the past few days, only to enjoy a brief respite mid-week then start falling again. China has already taken several measures to stem the bloodbath in their stock market, such as cutting interest rates or restricting margin requirements for speculative trading, but it appears that market confidence is hitting all-time lows.
technologyreview.com / Tom Simonite / August 28, 2015
The man who took over stewardship of Bitcoin from its mysterious inventor says the currency is in serious trouble.
The way things are going, the digital currency Bitcoin will start to malfunction early next year. Transactions will become increasingly delayed, and the system of money now worth $3.3 billion will begin to die as its flakiness drives people away. So says Gavin Andresen, who in 2010 was designated chief caretaker of the code that powers Bitcoin by its shadowy creator. Andresen held the role of “core maintainer” during most of Bitcoin’s improbable rise; he stepped down last year but still remains heavily involved with the currency (see “The Man Who Really Built Bitcoin”).
Andresen’s gloomy prediction stems from the fact that Bitcoin can’t process more than seven transactions a second. That’s a tiny volume compared to the tens of thousands per second that payment systems like Visa can handle—and a limit he expects to start crippling Bitcoin early in 2016. It stems from the maximum size of the “blocks” that are added to the digital ledger of Bitcoin transactions, the blockchain, by people dubbed miners who run software that confirms Bitcoin transactions and creates new Bitcoin (see “What Bitcoin Is and Why It Matters”).
Andresen’s proposed solution triggered uproar among people who use or work with Bitcoin when he introduced it two weeks ago. Rather than continuing to work with the developers who maintain Bitcoin’s code, Andresen released his solution in the form of an alternative version of the Bitcoin software calledBitcoinXT and urged the community to switch over. If 75 percent of miners have adopted his fix after January 11, 2016, it will trigger a two-week grace period and then allow a “fork” of the blockchain with higher capacity. Critics consider that to be a reckless toying with Bitcoin’s future; Andresen, who now works on Bitcoin with the support of MIT’s Media Lab, says it is necessary to prevent the currency strangling itself. He spoke with MIT Technology Review’s San Francisco bureau chief, Tom Simonite.
On Monday, there was a global stock market price plunge pummelling many stock markets, including China, Asia, Europe, and the USA. Some in the mainstream media are referring to it asthe worst day for stocks since 2008. Despite hopes for Bitcoin to receive all of this money fleeing the traditional markets, the bitcoin market had quite a bearish day overall as well, dipping beneath the $200 mark for the first time since January.
Bitcoin prices have already recovered from that damage, which is far better than any of the stock markets have performed. Upon closer inspection, the reasons causing bitcoin’s price plunge were numerous and it seems completely unrelated to the world’s stock markets, which appears to make the correlation between Monday’s performance a coincidence.
Among the world’s stock markets, the hardest hit was China’s Shanghai Composite Index. After Monday’s loss of 8.5 percent was declared the worst single day loss in more than eight years, it didn’t fare much better on Tuesday and the crash has been estimated at losses of more than $1 trillion in value.
The rest of the Asian markets followed suit and in the US, the Dow opened at an unprecedented 1,089-point decline on Monday, closing at 588 points down, which makes it the worst for the DJIA since August 2011 and the largest point loss ever during a trading day.
The bitcoin exchange price experienced a similar sell-off on Monday, driving bitcoin’s price to an average low of $198.81, the lowest since January 14, according to our global price index. The largest decline of the day was to $193.70 on BTC-e, however, the price soon recovered across all major exchanges.
Katheryn Haun, Assistant US Attorney and federal prosecutor
ibtimes.co.uk / Ian Allison /
The prosecutors that finally unravelled Silk Road, and who set a standard with money laundering charges against Ripple, have been described by members of the Bitcoin community as “bad-ass crypto cops”.
“I didn’t know we were called that,” said Kathryn Haun, Assistant US Attorney and federal prosecutor at the Department of Justice.
Haun’s colleague and cybercrimes investigator Tigran Gambaryan, a special agent with the criminal investigation division of the Internal Revenue Service, added: “I’m not Bitcoin police, I’m an investigator – whatever payment concerns an IRS investigator, that’s what our expertise is. We have been doing this since the days of Al Capone. No matter what method a criminal uses we will find a way to track it down.”
Haun and Gambaryan collaborate under the auspices of the National Cyber Investigative Joint Task Force’s virtual currency team. They will be talking in detail about their work at the forthcoming Consensus event in New York City on 10 September.
Silk Road, the movie
Haun explained that until sentencing is passed in the case of Silk Road there is a limit to what they can say about it. She noted that former DEA officer Carl Force, in his plea agreement entered on July 1, made it public that he had entered into a movie deal with 20th Century Fox, which accounted for some $240,000 of payments.
"At any rate, the spook spoke the truth: cryptology represents the future of privacy, and more. By implication cryptology also represents the future of money, and the future of banking and finance. (By "money" I mean the medium of exchange, the institutional mechanisms for making transactions, whether by cash, check, debit card or other electronic transfer.) Given the choice between intersecting with a monetary system that leaves a detailed electronic trail of all one's financial activities, and a parallel system that ensures anonymity and privacy, people will opt for the latter. Moreover, they will demand the latter, because the current monetary system is being turned into the principal instrument of surveillance and control by tyrannical elements in Western governments." - J. Orlin Grabbe