Crypto-Currencies Will Destroy The Criminal Bankster's Monopoly On Money
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LONDON (InsideBitcoins) — Spain is a land of contradictions. A powerhouse economy exists side by side with the highest youth unemployment in Europe; coastal tourist traps give way to the architectural magnificence of its interior. Languages mingle and define identity, Spanish Catalan, Basque and Galician, each provide nuance and texture to a country that has rightly become the playground of Europe. Spain is a land of contradictions and it may too, become a land of bitcoin.
Bitcoin’s greatest failing stems not from a confused and often hostile public perception, but from its immaturity. At only around five years old, it has survived the complete dependency of its first awkward months, taken its first steps into the terrible twos and ultimately, it has found its voice.
Yet like most children, the currency has not learned to play well with others and has balked at authority figures whose rules seem inconsistent, irrational even. This is a child that has flexed its sense of individualism — that has consistently refused to be pigeon-holed and in doing so has left those immersed in the world of fiscal regulation scratching their heads.
When you store your bitcoins on an exchange, a gambling site, or in an investment site, you’re placing a lot of trust in the company.
Personal wallet security with a relatively small amount of coins is one thing, but these sites store many more bitcoins than the average user, and are therefore prime targets for attack. So how do they protect your money?
Some, like the gambling site Seals With Clubs, use their own proprietary wallet technology, while others work with third-party services.
There are a variety of techniques and tools that companies can use to try and keep customers’ cherished coins safe.
Cold storage is an obvious candidate, and this is what wallet provider and merchant payment gateway Coinbase does.
The company, which claims to store more bitcoin than anyone in the world, holds 97% of it offline, on a combination of USB keys and paper backups. The private keys on the USB drives are encrypted and stored in safe deposit boxes around the world.
Exchanges, too, rely on cold storage for their security. “All of the funds held on Coinsetter are currently in cold storage,” said the New York-based exchange’s founder, Jaron Lukasiewicz. “We have multiple tiers of cold storage, depending on a number of factors.”
A firm can manage its own cold storage, or it can get someone else to do it. Coinsetter stores around 50% of its funds in Xapo‘s bitcoin vault.
Xapo charges around 0.12% of the amount stored to look after enterprise bitcoins in its bitcoin vault, which consists of offline servers held in three locations in Asia, South America and the US.
Chi Onwurah MP, Shadow Minister for Innovation and Science
cryptocoinsnews.com / John Weru Maina / November 26, 2014
UK Shadow Minister for Innovation and Science, Chi Onwurah believes that digital currencies such as Bitcoin are a real opportunity for currency to be back in the hands of those who use it.
Ms Onwurah who is also the Member of Parliament for Newcastle upon Tyne Central has been leading a Labour Party review that is examining the way digital technology can improve both the effectiveness and efficiency of “people-powered” public services. The review also hopes to develop a framework for powering digital government and giving citizens control in their relationship with the government.
Josh Garza, who has built what may be the world’s fastest growing bitcoinmining operation, is setting his sights on something even bigger: “the cryptocurrency of the future.”
That’s the claim made in a press statement Monday to mark the launch of the ICO (initial coin offering) of Paycoin, a digital currency that Mr. Garza’s GAW Miners company says will address “all the inherent shortcomings that have prevented bitcoin from achieving mainstream adoption.”
The core technology underlying Paycoin, which was previously codenamed “Hashcoin,” is modeled on bitcoin and its public ledger, known as the blockchain. However, Paycoin’s blockchain is independent of bitcoin’s and, unlike the better known digital currency, will involve an additional layer of “mining” computers beyond the base level of miners employed to routinely confirm the validity of transactions and to maintain the ledger. Those higher-level “controller” miners will perform the special task of compressing data to make Paycoin transactions more streamlined. The controllers will periodically bid for the right to perform this task, for which they will be rewarded in paycoins. In theory, their contributions to computing efficiency should allow Paycoin transactions to be confirmed and settled much faster than the 10-minute minimum that applies to bitcoin.
NEW YORK (InsideBitcoins) — In the days following the shutdown of Silk Road 2.0, many people were speculating as to whether or not Tor — the software and network that allows anonymous online access — was broken by the FBI. Law enforcement agencies around the world were claiming that they had taken down 414 darknet websites, and they also claimed that criminals should not feel safe when they are operating on various anonymizing networks. Roughly one month later, it seems clear that Operation Onymous was not the large, rousing success that it was originally made out to be.
Silk Road 2.0 and what else?
Before getting into greater detail about the kinds of sites that were shut down in this operation, it’s important to note the large number of revisions that took place when it comes to the total number of onion sites seized by law enforcement. As mentioned above, the original number was 414, but that number eventually came down to just over two dozen. Needless to say, Silk Road 2.0 was by far the most popular darknet website included in the list of seized domains.
In this podcast update, John and Cat are having a treacherous time as they make their way through the Colorado Mountains on their way to Denver, CO for more bitcoin antics. The Blush Family ends up stranded in a small Colorado town but made the most out of it when they find an awesome Chinese Restaurant and a really cool hotel. Listen in as the couple recounts the accidents and rough conditions they encountered along the way and how social media and peer to peer technology helped them through their journey.
It’s still a novelty in the west, but one expert argues the technology has the potential to elevate the lives of five billion people on the planet.
Bitcoin, the headline-grabbing crypto-currency, is more than just a technological oddity for criminals, libertarians and technology buffs — it’s merely the first ‘app’ in the “internet of Money”.
That’s the view of Andreas Antonopoulos, world-renowned crypto-currency expert and author of Mastering Bitcoin, who is currently visiting Australia to speak at The Bitcoin Address, an open-to-the-public meetup hosted by CoinJar, College Cryptocurrency Network and the Bitcoin Association of Australia.
While it’s still a novelty in countries like Australia, the potential for developing nations is enormous. Australians have a relatively robust banking system.
That’s pretty rare, he argues — only about three quarters of a billion people enjoy that.
Putting the ability to create financial systems outside of the control of “corrupt” institutions and into the hands of individuals will be transformative for the roughly five billion people who have either no access or limited access to banking.
Bitcoin: “There is no reason to believe that a privately created currency will demonstrate any more monetary discipline than a desperate despot.”
smh.com.au / Matthew Canavan and Sam Dastyari / November 26, 2014
The emergence of Bitcoins and other forms of digital currency could revolutionise money markets. If competition is so good in markets for products, why shouldn’t we allow competition in markets for currency too?
The upfront cost of printing a piece of paper and calling it “currency” is essentially zero, as Robert Mugabe can confirm.
Who knows if in the future, Australian airlines will hold digital currency reserves to buffer against changes in the value of our dollar?
The short-term benefits of printing lots of money are as enormous as you want them to be, but the long term costs of inflation and loss of reputation are devastating.
But there is no reason to believe that a privately created currency will demonstrate any more monetary discipline than a desperate despot.
cryptocoinsnews.com / Jonathan Saewitz / November 26, 2014
Today, the first Bitcoin ATM in Virginia launched. The ATM is owned by BlockBox, a company which provides Bitcoin services. According to Coin ATM Radar, the ATM converts fiat to bitcoin, with a 4% fee. The ATM is in Sterling Mower, a mower company, located at 22005 Shaw Rd, Sterling, VA 20164.
With this ATM, Virginia joins the club of states in America to have a Bitcoin ATM. Less than two weeks ago, Pennsylvania got its first ATM. Virginia’s ATM is a Lamassu machine, so it is small compared to most other Bitcoin ATMs. In images, it is resting on top of a stool in Sterling Mower.
theguardian.com / Sam Dastyari and Matthew Canavan / 26 November 2014
If competition is so good in markets for products, why shouldn’t we allow competition in markets for currency too?
The emergence of Bitcoins and other forms of digital currency could revolutionise money markets. If competition is so good in markets for products, why shouldn’t we allow competition in markets for currency too – why should governments have a monopoly?
Our current system of coinage and paper money has evolved from centuries of turbulence – could digital currencies provide the stability to prevent shocks in the future?
The upfront cost of printing a piece of paper and calling it “currency” is essentially zero, as Robert Mugabe can confirm. The short term benefits of printing lots of money are as enormous as you want them to be, but the long term costs of inflation and loss of reputation are devastating.
So there is not much more reason to believe that a privately created currency will demonstrate any more monetary discipline than a desperate despot. In America, various colonial and continental currencies were in circulation before independence in 1776. Ten years later the Continental Congress tied the value of the US dollar to gold reserves, marking the start of almost 200 years on the “gold standard”.
cryptocoinsnews.com / Yannick Losbar / November 26, 2014
McDonald’s Hackathon held in London from 21 to 23 November invited to participants to think and design applications around a brand new digital restaurant experience. Fittingly, the hackathon participants had the pleasure to meet with Blockchain.info team and experiment around the digital currency.
We already knew that bitcoins startups were fond of bitcoins events that unfold in the various parts of the world. A new strategy now seems to involve bringing Bitcoin to larger and arguably more far-reaching industry specific hackathons and events, Blockchain explained:
Digital currency exchange Kraken announced today that it has been chosen to support the investigation of Mt Gox’s stolen bitcoins, manage the claims process and distribute the defunct company’s remaining assets to creditors.
The announcement was made at the second hearing for Mt Gox creditors held today at Tokyo’s District Court.
Speaking at a press conference following the hearing, Kraken CEO Jesse Powell said he was “very humbled for the opportunity to help the community like this”, and that his firm hopes to repair bitcoin’s damaged reputation in Japan as much as build its own in the local market.
“It’s Kraken’s philosophy to always put the clients’ best interests first, and this is a philosophy that we will carry with us through supporting the trustee.”
There are still many decisions to be made in the process and Kraken has many questions of its own, he further added. The exchange will work closely with the trustee Nobuaki Kobayashi to investigate what happened at Mt Gox as much as possible, although it will not have direct access to Mark Karpeles, Mt Gox’s CEO.
“Black Friday” is one of the busiest shopping days in the United States. It is a day of unbridled consumerism on steroids, when people pitch tents and lay sleeping bags in front of retail stores and malls across the country, getting ready for the big event.
Black Friday is usually celebrated exclusively in the United States, but this is rapidly changing following the introduction two years ago of “Bitcoin Black Friday.” The event is the brainchild of Jon Holmquist, the event’s founder and primary cheerleader.
Black Friday has been getting quite a bit of negative press in recent months because many retail stores are opening up on the day of Thanksgiving, rather than waiting for Friday. Some are even threatening to fire workers who fail to show up. Walmart workers are threatening to strike.
The Thanksgiving holiday, for those unfamiliar with it, is not celebrated on a specific date. Instead it is scheduled for the last Thursday of each November. The holiday was created by President Abraham Lincoln during the Civil War and workers were traditionally given a long weekend to celebrate.
NEW YORK (InsideBitcoins) — The bankruptcy proceedings of Mt. Gox, the infamous failed bitcoin exchange, will now be directed by Payward Inc., owner of Kraken, a San Francisco-based bitcoin exchange. In a directive issued by the Tokyo District Court today, Kraken was selected to “support the investigation of missing bitcoin and the distribution of remaining assets to the creditors.”
This will likely please many of the creditors still clinging to hopes of some restitution from the Mt. Gox failure, who have complained about substantial and continuing cash payments to Tibanne K.K., the company owned by Mark Karpeles, former chief executive of Mt. Gox.
"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