Blockchain-Based Community Currencies to Be Launched in Kenya

Blockchain-Based Community Currencies to Be Launched in Kenya

Bancor has announced today it will launch a network of blockchain-based community currencies in Kenya. The new project is expected to combat poverty through the stimulation of local and regional commerce and peer-to-peer collaboration.

By using the Bancor Network, disadvantaged communities in Kenya will be able to create digital currencies that can hold one or more balances in a connected way such that integrated currencies can be swapped for one another without needing a counterparty.

Bancor will launch the new currencies by contributing capital from the proceeds of its $153 million token sales in 2017.

In correspondence with Bitcoin Magazine, Galia Benartzi, Bancor’s co-founder, said, “Bancor will serve as one of several donors in the program providing initial capital to fund the token balances contained within each of the community currencies. In addition, Bancor will provide in-kind operational support, including technical and integrations work, marketing and hardware to get the currencies distributed and operational.”

The company will partner with Kenyan nonprofit foundation Grassroots Economics, who has experience developing community currency programs in Africa.

Grassroots Economics founder Will Ruddick, who is also the newly appointed director of community currencies at Bancor, will oversee the launch of the community currencies from Nairobi. The team will use Bancor Protocol to expand the current paper currency system used by local businesses to reduce poverty and create stable markets.

Ruddick believes that when “communities have the same right as nations to create and manage currencies, they will unlock their full potential.”

Kawangware and Kibera are the focal points for the pilot launch. These communities, which happen to be the largest slums in Kenya, will be used to circulate the currency by incentivizing customers to use it.

Bancor expects that as more people in the community buy and hold the local currency, its market cap can increase, which will create more wealth and a higher purchasing power for the holders.

Community members and supporters of the initiative will have the option to buy and sell the local currencies via the open-source Bancor Protocol using any of the popular cryptocurrencies or a major credit card.

Before its partnership with Grassroots Economics, Bancor had launched a similar program in Israel. The pilot program, aimed at mothers, was processing over 1,000 daily transactions before activities peaked due to the difficulty of transferring wealth outside of the community.



This article originally appeared on Bitcoin Magazine.

Op Ed: The Rise of Cryptocurrency Securities Lawsuits

The Rise of Cryptocurrency Securities Lawsuits

As the cryptocurrency market develops and grows, cryptocurrencies have become the subject of an increasing number of securities lawsuits. This year alone, more than 10 cryptocurrency securities lawsuits have been filed in federal district courts throughout the country.

While regulations and laws governing the cryptocurrency market continue to develop, recent activity involving cryptocurrency has raised a host of questions concerning investor protections. As federal and state regulators and policymakers grapple with how to regulate digital currencies, some investors have sought protection through securities lawsuits.

Based on the number of lawsuits filed to date and the recent decline in the price of cryptocurrencies, such litigation will likely increase in volume in the coming year. Investors should be aware of recent cryptocurrency case law to safeguard their rights and preserve their legal remedies. A selection of recent securities lawsuits against five cryptocurrency companies is highlighted below to illustrate some of the typical cases in which investors have found reason to pursue legal action against cryptocurrency companies.

Longfin: Precipitous Drop in Stock Value After Disclosure

Longfin Corp., a global cryptocurrency company, was a “pure stock scheme.” On April 9 and April 19, 2018, two classes of investors sued Longfin and its top officers for allegedly violating Sections 10(b) and 20(a) of the Securities Exchange Act. The investors allege that Longfin misrepresented the location of its primary offices and the identity of key employees in its public statements; had numerous material weaknesses in its operations and internal financial reporting controls; and was ineligible for inclusion in certain stock indices.

The investors allege that when this information was made public, Longfin’s stock value declined more than 86 percent in two weeks. The investors are attempting to recover damages associated with the decline in stock value.

Takeaway: This case is an example of a cryptocurrency company’s shares plummeting after company executives disclosed financial information to the public. Prospective investors should be wary of giving too much credibility to unsubstantiated statements made by cryptocurrency companies and should be selective when determining the trustworthiness of sources.

Nano: Danger of Foreign Exchanges and Hacks

Nano, a U.S.-based blockchain developer and cryptocurrency issuer, was involved in a hack scandal. On April 6, 2018, a class action was filed against Nano and its key officials for allegedly violating federal securities laws.

The complaint alleges that Nano engaged in an unregistered offering and sale of securities by issuing cryptocurrencies on BitGrail, an Italian cryptocurrency exchange, in violation of Sections 12(a) and 15(a) of the Securities Act. The complaint also alleges that Nano wrongly encouraged investors to invest assets with BitGrail, which lost $170 million worth of the cryptocurrency “XRB” due to a hack on the exchange platform. The investors are asking for, among other relief, rescission of their investments.

Takeaway: This case is noteworthy because it illustrates the vulnerabilities of cryptocurrency exchanges and their susceptibility to theft. To protect cryptocurrency investments from possible hacks and cyber theft, investors should take a number of precautionary measures, including closely examining where funds are being held and inquiring about the security controls in place to prevent potential hacks.

Giga Watt: Mismanagement Allegations

Giga Watt, a U.S.-based cryptocurrency startup, was a promising venture that was arguably mismanaged by its founder. On March 19, 2018, an investor sued Giga Watt for allegedly violating federal and state securities laws by selling cryptocurrency investments without registering those investments with regulatory entities.

The investor alleges that he invested more than $500,000 in the Giga Watt ICO with an expectation that his investment would increase in value, but Giga Watt “pocketed for themselves large sums of money for their promotional efforts,” resulting in his not receiving “any meaningful return on his investments.” He is suing to rescind his investments and impose a constructive trust over the assets that were collected by Giga Watt.

Takeaway: This case is important because it highlights how investors who find out after the fact that a cryptocurrency company founder has mismanaged funds may pursue legal action against the company. Investors may also protect themselves from potential mismanagement of their investments by researching company governance and only investing in companies whose managers have a proven business track record. Investors should exercise caution if company managers lack experience or knowledge or if an ICO fails to disclose the identity of company managers.

Bitconnect: Investors Allege Scam

Disgruntled investors allege that Bitconnect, a U.K.-based cryptocurrency company, implemented a classic Ponzi scheme. Three lawsuits have been filed this year against Bitconnect for allegedly violating federal securities laws by engaging in the offer and sale of unregistered securities and other unlawful conduct.

Most recently, on February 7, 2018, a class action lawsuit was filed against Bitconnect and key officers for allegedly violating various provisions of the Securities Act and the Securities Exchange Act. The investors allege that Bitconnect operated a Ponzi scheme to cheat thousands of investors out of millions of dollars. The investors allege that they were scammed by Bitconnect after being guaranteed monthly returns of up to 40 percent only a month before Bitconnect collapsed. Furthermore, they allege that after the site was shut down, the cryptocurrency lost more than 90 percent of its value, and they are seeking damages and equitable relief.

Takeaway: This case is significant because it serves as a cautionary tale for investors who are promised high monthly returns from companies that do not actually perform legitimate business activities. Investors evaluating an ICO should be wary of red flags for scam cryptocurrency investments, including insufficient detail on how the technology operates and the viability of the technology over time, the history of team members involved in the project, and the legitimacy of the venture itself.

Paragon Coin: Aggressive Marketing Claims

Paragon Coin, a cryptocurrency startup invested in the marijuana industry, is an example of a heavily marketed cryptocurrency ICO that promised high investment returns without delivering results. Paragon Coin drew attention to its ICO with celebrity endorsements, including endorsements by rapper The Game and by its founder former Miss Iowa Jessica VerSteeg.

On January 30, 2018, a class action lawsuit was filed against Paragon Coin, Inc., for allegedly violating Sections 12(a)(1) and 15(a) of the Securities Act by failing to register its ICO as a securities offering. The complaint alleges that “Defendants marketed the Paragon ICO as offering a path towards legalization of cannabis,” but in fact, “the Paragon ICO was simply a method for Defendants to raise capital in order to purchase real estate investments.”

The class seeks, among other relief, rescission of investments and compensatory damages.

Takeaway: This case is significant because it illustrates the lure that celebrity endorsers, social media and marketing statements can have on investors. Investors should look beyond the hype generated by celebrity endorsements and aggressive marketing campaigns and consider the risks of would-be attractive investments.

The Future of Cryptocurrency Securities Lawsuits

As these cases illustrate, investors are increasingly turning to litigation to pursue their legal rights following failed cryptocurrency investments. Given the wide fluctuations in the price of cryptocurrencies and the recent precipitous drop in value, the lawsuits discussed above are only the beginning wave of securities lawsuits filed relating to cryptocurrencies.

By heeding the lessons gleaned from these securities lawsuits and exercising due diligence before investing in cryptocurrency, investors may protect their investments against loss, theft, scams and other risks associated with cryptocurrency.

First, investors should be wary of giving too much credibility to unsubstantiated statements made by cryptocurrency companies. Second, investors should take precautionary measures to protect their cryptocurrency investments from possible hacks and theft. Third, investors should protect themselves from potential mismanagement of their investments by researching company governance and only investing in companies whose managers have a proven track record. Fourth, investors evaluating an ICO should be wary of red flags for scam cryptocurrency investments. Fifth, investors should look beyond celebrity endorsement buzz and aggressive marketing campaigns when evaluating potential investments.

Whether investors in these lawsuits will prevail remains to be seen, but, based on the allegations in these complaints, investors should always be cautious and perform their own due diligence before deciding where and how to allocate their funds.

This is a guest post by Craig Weiner and Chelsea Walcker. Views expressed are their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.


This article originally appeared on Bitcoin Magazine.

Updated Edition of Blockchain Revolution Fills In Some Big Gaps

Updated Edition of Blockchain Revolution Fills In Some Big Gaps

“When Blockchain Revolution came out, bitcoin was worth around $7 billion. Today, it’s more than twenty-two times that. Bitcoin is the workhorse of the cryptocurrency world and the cryptocurrency that launched a thousand ships.”

So reads part of the preface in the newly-released second edition of Blockchain Revolution by the father-and-son team of Don Tapscott, founder and executive chair of the Blockchain Research Institute (BRI), and Alex Tapscott, founder and CEO of NextBlock Global, a digital asset company.

The first edition of Blockchain Revolution, published in May 2016, has been translated into 15 languages, is a bestseller in five Asian languages and remains Amazon’s number one selling book about blockchain technology.

Two years in the crypto world is a lifetime, so there’s lots of catching up to do in the second edition which contains a lengthy preface with plenty of new material, including information about tokens (utility, security, natural asset and commodity), a who’s who of the crypto world, leading companies in the space, instructions for leading crypto companies and their managers, and the “leadership of nations.”

Predicting a rosy future for bitcoin, the new edition notes that bitcoin’s impact on culture and the economy in the last two years has been “extraordinary” and points out that the remarkable price rise since 2016 means bitcoin has become an asset class too big for investors to ignore.

The attitude on the part of banks has changed since 2016 when blockchain “good,” bitcoin “bad” was the dominant ethics. Now even Goldman Sachs and JP Morgan are getting into the cryptocurrency market.

Noting bitcoin’s continuing success, the authors say:

“With the launch of the Lightning Network and other scaling solutions in 2018, bitcoin may also fulfill the promise of its most ardent supporters and obliterate the need for traditional financial intermediaries.”

Top 10 Crypto “Leadership” Countries

The new second edition names 10 “leadership nations” who are best placed to lead the blockchain revolution and build the new innovation economy.

Alphabetically the countries are: Australia, Canada, China, Dubai (United Arab Emirates), Estonia, Singapore, Sweden (Stockholm and the “Node Pole”), Switzerland (Zurich and Zug), United Kingdom (London) and the United States (New York City and Silicon Valley).

Each country is briefly assessed with suggestions on how to move forward.

Silicon Valley’s important role is noted, but the authors also say that since blockchains are decentralized by design, it may be that a cross-border collaboration is more likely in the future, rather than being dependent on one or two dominating hubs.

Seven “conditions for success” in developing a blockchain hub are described: Incubators and Entrepreneurship, Corporate Leadership, Educational Institutions, Investment Climate, Government Support, Regulatory Environment and Communities of Talent.

The authors also describe Ethereum’s meteoric rise since 2016, from newly created startup to platform with a market value of $70 billion today. They also examine some of the new platforms built on the Ethereum blockchain and the current work around identity DApps.

ICOs and tokens were not part of the cryptocurrency landscape of two years ago, so they are explained in detail, as is the ongoing development of smart contracts.


_________________________________________________________________





















QUOTES FROM BOOK


“When Blockchain Revolution came out, bitcoin was worth around $7 billion. Today it’s more than twenty-two times that. Bitcoin is the workhorse of the cryptocurrency world and the cryptocurrency that launched a thousand ships.”


“Bitcoin has become a store of hundreds of billions of dollars of value on the most robust computer network ever formed…”


“With the launch of the Lightning Network and other scaling solutions in 2018, bitcoin may also fulfill the promise of its most ardent supporters and obliterate the need for traditional financial intermediaries.”



xxxi






“We believe that this next era could be inspired by Satoshi Nakamoto’s vision, designed around a set of implicit principles, and realized by the collaborative spirit of many passionate and equally talented leaders in the community.”







This article originally appeared on Bitcoin Magazine.

As Korean Crypto Exchanges Step Up AML Compliance, Banks Are Failing

As Korean Crypto Exchanges Step Up AML Compliance, Banks Are Failing

As the South Korean government steps up its anti-money laundering (AML) oversight, major crypto exchanges in the country are voluntarily complying while banks are reportedly failing to meet the guidelines for compliance. South Korea has also been discussing ways to boost crypto-related AML measures with the U.S.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Government Concerned About Bank’s AML Compliance

As Korean Crypto Exchanges Step Up AML Compliance, Banks Are FailingSouth Korea’s AML directives currently do not apply to cryptocurrency exchanges directly. The government has made banks responsible for monitoring and reporting any crypto-related money laundering activities.

In an effort to comply with the country’s AML directives, most major South Korean banks have been adding compliance officers.

NH Nonghyup Bank, for example, “recently created an independent unit exclusively to handle compliance-related issues,” the Korea Times reported on Friday, adding that the bank increased the number of its employees working in that unit from 16 to 23. Nonetheless, the Joongang Daily noted on Saturday:

Despite the effort, Korea’s financial watchdog, the Financial Supervisory Service [FSS], warned that the bank has not sufficiently improved its internal control system.

Collaborating with the US

South Korea has also been collaborating with the U.S. to boost AML measures relating to cryptocurrencies. The Korea Times described:

U.S. Treasury Secretary Sigal Mandelker has discussed with FSC Vice Chairman Kim Yong-beom how to boost anti-money-laundering measures especially related to crypto-assets in addition to international cooperation measures.

As Korean Crypto Exchanges Step Up AML Compliance, Banks Are FailingHowever, the U.S. has found Korean banks’ AML measures to be inadequate. South Korea’s top financial regulator, the Financial Services Agency (FSC), said Friday that the New York Department of Financial Services (NYDFS) “has notified the financial regulator of its plan to investigate Korean banks [with operations in New York] that are suspected of failing to meet compliance guidelines.”

As Korean Crypto Exchanges Step Up AML Compliance, Banks Are FailingThe U.S. regulator has already fined Nonghyup Bank $11 million “for inadequate control and a compliance system against money laundering,” the Joongang Daily conveyed, adding that the NYDFS “will start probes into six Korean banks operating in New York either by the end of this month or next month.” They are “Nonghyup Bank, Woori Bank, KB Kookmin Bank, Shinhan Bank and two state-run banks – the Industrial Bank of Korea and the Korea Development Bank,” the publication detailed, elaborating:

Since penalties from the New York DFS would damage the reputation of Korea’s financial industry in general, local financial regulators are also working to encourage the banks to strengthen their control and compliance systems.

The list includes banks that are providing real-name services to crypto exchanges: Nonghyup Bank, Shinhan Bank, and the Industrial Bank of Korea. They are responsible for ensuring that the crypto accounts they service are AML compliant.

Crypto Exchanges Voluntarily Complying

As Korean Crypto Exchanges Step Up AML Compliance, Banks Are FailingIn South Korea, the Financial Intelligence Unit (FIU) is responsible for money laundering prevention and illegal fund flows, including terrorist financing. The FIU collaborates with the FSS to ensure that banks are adhering to AML rules. Both agencies report to the FSC.

Crypto exchanges are currently not directly regulated by the FIU or the FSS, but the regulators have proposed bringing them under the two agencies’ jurisdiction.

Meanwhile, the largest crypto exchanges in the country are voluntarily upgrading their AML and internal control systems. Bithumb has blocked 11 countries from using its platform and reduced withdrawal limits for accounts that are not using the real-name system. The Kakao-backed Upbit has adopted Thomson Reuters’ system for the same purpose. 23 crypto exchanges have also agreed to comply with the self-regulation standards set by the Korean Blockchain Industry Association.

What do you think of how the South Korean government, banks, and crypto exchanges handle AML measures? Let us know in the comments section below.


Images courtesy of Shutterstock, NYDFS, and the Korea Times.


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This Village Decided to Launch Japan’s First Municipal ICO

This Village Decided to Launch Japan's First Municipal ICO

A village in Japan has announced its decision to launch an initial coin offering in order to secure funds for creating a sustainable region. This will be the first time in Japan for a municipality to use a token sale to raise funds.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Local Government Launching ICO

This Village Decided to Launch Japan's First Municipal ICOA village in Japan has decided to issue an initial coin offering (ICO) which it describes as “Japan’s first decision to issue a regional ICO by a local government.”

Nishiawakura Village is in Okayama Prefecture, which is located in the southern part of Japan’s Honshu island. The prefecture is largely known for its rural landscapes, feudal castles and art museums. With 95% of the area covered in forest, the village has a population of approximately 1,500. In the early 2000s, the village refused to merge with Mimasaka City when municipalities nationwide consolidated, wanting to remain economically independent.

According to the village’s announcement:

In order to promote the creation of a sustainable region in the future, as a means for small local governments to secure new financing resources and to build up regions through upfront investment, tokens issuance, and the creation of virtual currencies, we will introduce fundraising through an ICO for the first time as a municipality in Japan.

Village’s Coins

This Village Decided to Launch Japan's First Municipal ICOThe village’s tokens will be called Nishiawakura Coin (NAC) and will be issued by the Nishiawakura Village Token Economy Association. The NAC coins will carry voting rights which allow their holders to participate in decision making relating to local ventures, the village explained.

“We plan to advance according to the revised fund settlement law…in line with the self-regulation rules on the management and finance by the Japan Virtual Currency Exchange Industry Association,” according to the announcement. This industry association was established in April and consists of 16 government-approved crypto exchanges. The revised fund settlement law went into effect in Japan last year, legalizing crypto as a means of payment. The village added:

The funds procured will carry out business development, etc. in collaboration with Nishiawakura Village, and will develop a sustainable community.

Currently, Japan has no specific law for ICOs, but the regulators have recently been discussing a specific regulatory framework for them. In February, the country’s top financial regulator, the Financial Services Agency (FSA), issued a warning to an unregistered ICO for allegedly conducting business without a license.

What do you think of this Village in Japan launching an ICO? Let us know in the comments section below.


Images courtesy of Shutterstock, Okayama-iju, Turns, and Nishiawakura Village.


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The Reasonable Network

The Reasonable Network

This article is my advice on how reasonable people can have a public discussion that is strong enough to avoid being derailed by trolls, no matter who they are. I believe the key is the conviction that if there were such a thing as a reasonable public discussion, everyone else would depend on the conclusions that it arrived at. Thus, everyone taking part in the discussion will tend to prefer to follow the rules over anything that might serve a conflicting interest.

Also read: Markets Update: SEC Adds a Brief Market Spike — But Will It Last?

If you are someone who prefers the Reasonable Network, then you are looking for people who also prefer the Reasonable Network. You must look at what they prefer and see that they prefer to be reasonable. You don’t need to bug him or manipulate him. You just have to let him show you that he prefers reason.

I am not going to define precisely what I think reasonableness is because I would want people to develop their reasonableness test based on everything they know rather than just what is in this article. However, I will say that I think that a person’s ability to repeat an intellectual position to his discussion partner is a test that is so easy to administer and evaluate, and simultaneously such a good indicator that I recommend it as the first step in any evaluation of another person’s reasonableness.

You, of course, don’t want to waste people’s time, especially your own, so I think you should be able to find the best one-sentence version of your position and look for people who appear to be capable of reporting your position back to you. He does not have to get everything right, but you should believe that he is interested in getting it right. I think it is good to let a person talk for a bit after you give them your test and see if they say anything on their own that shows that they have understood basic things about it. If they do not do this, I think that there is nothing wrong with asking them to repeat your position back to you, just to make sure they got it. Someone who is good at discussions may do this without being prompted because he knows he can’t possibly have a reasonable discussion without understanding the basics of the other person’s position.

The Reasonable Network
“He does not have to get everything right, but you should believe that he is interested in getting it right.”

No matter who you are and what you think, it is relatively easy to see whether someone can correctly repeat back what someone else said, if such an event were recorded publically. Furthermore, I think it is hard to argue that there is anything unfair about my reasonableness test and it is easy for you to argue publicly that someone has passed it. Remember, we are talking about a public discussion, so everything that is said should be something that can potentially have a lot of attention drawn on it. You want to be able to behave according to rules that you can defend later, in case anything that you do attracts attention. I believe that my reasonableness test is something that people with many divergent viewpoints could agree on, if they all wanted to have a reasonable discussion.

It is easy to show that someone has passed the test, but there are many reasons that someone might fail it. I would say that it is hard to show that someone has genuinely failed the test, or in other words, shown that they are uninterested in a reasonable discussion or unable to have one. Someone who does not pass the test is not necessarily someone who does not want a reasonable discussion. I think it is important to differentiate between people who cannot pass the test and people who simply have not. People can have many reasons to choose not to pass your reasonableness test. You must pass their reasonableness test at the same time as they are passing yours, so if you won’t say anything that demonstrates a grasp of whatever they have said to you, they might not bother to say anything. I think the reasonableness test should be based on what people have actually said in the current conversation and they should not expect one another to be familiar with who they are or their prior work as part of the reasonableness test. This ensures that both people are engaging with one another regardless of who they are.

On the other hand, someone who makes the same mistake several times in a row and who does not correct his version of your position after you have given him feedback about his response is someone who doesn’t want a reasonable discussion. If he failed because he is stupid, then you don’t need to talk to him anymore. If he failed because he is a troll, then you might see some variety and inventiveness in his failures. In that case, he is testing you to see how easily you can tell that he is a troll. I think it is ok, if you feel like it, to engage with trolls who have a sense of humor, but they should be doing at least something that you find entertaining, and if not, you should not let yourself respond to any of their lures.

The Reasonable Network
“It may be necessary to prove that you are a troll before you can begin to assess another person’s reasonableness.”

A troll who is failing your test in a way that is a very obvious joke is telling you that there is something wrong with your reasonableness test. For example, let’s say that some ideology or religion has taken over your brain to the degree that you have forgotten how to evaluate other people for reasonableness, then a joke may be a way of drawing your attention to some way that you are excluding thinking people from your network. For example, perhaps your reasonableness test is too big. I think that you should not expect people to have to repeat more than a one-sentence version of your position, and if you are in an ideology or religion, it is often impossible to explain your position in one sentence.

On the other hand, in the event of an environment in which there is a lot of thought-control, in other words, there is social punishment for expressing certain ideas, then it may be necessary to prove that you are a troll before you can begin to assess another person’s reasonableness. You want to be talking to someone first who is able to play with social conventions and who is creative with the way that he expresses forbidden thoughts as jokes or in terms that are cryptic so that few will notice.

Someone who deliberately fails your test in a way that is not an obvious joke is a suspicious person.

There is a bootstrapping problem with the reasonableness network because you cannot reliably pick out reasonable people from a crowd. In a good network where people were genuinely reasonable, you would expect the most prominent people to be reasonable. Unfortunately, you cannot depend on this. I believe it is necessary to be able to pick out reasonable people from a crowd, independent of whether they are prominent.

In public, anyone can transmit anything and there can be very loud signals that do not contain a high originality. You must have something that filters people based on what you can see about them publicly, even if it is not a direct test of reasonableness. You, conversely, should want to be someone who is easily identified as someone who wants to have a reasonable discussion. So you need to transmit a signal that will attract reasonable people to you.

Since reasonable people cannot depend on having any shared ideas that will always stand out in a crowd, I think the best signal of reasonableness is the ability to stand out itself. You should be someone who can stand out in any crowd, not just the one you’re in. In other words, just be some kind of individual. In an environment in which there is a lot of ‘group-think’ and in which individuality is punished, it is easy to design a signal that goes against the crowd. You may have to endure some social punishment to transmit it, but you can try to come up with something that goes over most people’s heads. I think that you just need to believe that having a reasonable discussion is more important than the disapproval of people who don’t want one. I think it is ok if you just want to play some goofy character and you don’t show yourself directly. You just have to be an individual.

I would argue that the ability to go against the crowd is the purest signal of intelligence because it involves identifying a class of behaviors and abstracting something about it. If you are looking at a crowd that’s very unfamiliar to you, then someone who is going against the crowd is the signal that an intelligent person could make which would most easily stand out to you. If you are looking at a crowd and it appears that there are many individuals and you can’t tell who the best contrarian is, then that is a sign that you are looking at a crowd of intelligent people who are able to have a reasonable discussion. If a crowd appears to be many people moving together, then a contrarian among them should be easy to identify.

The Reasonable Network
“If you are looking at a crowd that’s very unfamiliar to you, then someone who is going against the crowd is the signal that an intelligent person could make which would most easily stand out to you.”

A connection in the reasonable network is valuable because once it exists, it is not easy to replace. Thus, you must be someone who can identify signals of reasonableness and maintain good relationships with such signals, no matter where you see them. The only thing that keeps you in the reasonable network is your ability to be reasonable. You have to learn to prefer rational discussions to feeling like you have won the argument or to feeling like you want to be a celebrity, or from whatever other motivation you might have for engaging in the discussion.

In the reasonable network, there is nothing wrong with the existence of celebrities or with wanting to be a celebrity or any kind of important person that you want. It is necessary to withhold judgment somewhat about celebrities whom you have not interacted with. If you do talk to any, you need to get your own sense of how reasonable they really are. The best way to become a celebrity in the reasonable network is to show people that you prefer reasonableness over being personally important.

I think that someone who were to think about the problem that I have attempted to solve here would come up with a roughly similar solution. Therefore, I think that the reasonable network exists already. In fact, it exists everywhere, throughout all ages in history. You just have to find it.

Steps for finding the reasonable network:

  • Express individuality (may require trolling)
  • Prefer other people who are expressing individuality when you open discussions.
  • Prefer what you learn from other people you know who have passed your reasonableness test to what you learn from anyone who transmits information without interacting with you.  
  • People you have not met but who appear to be able to pass the reasonableness test publicly should be preferred as sources of information over those who do not.

What do you think about having a public conversation strong enough to derail trolls? Let us know what you think about this subject in the comment section below.

This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


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Brazilian Entrepreneur Creates Bitcoin-Powered Coffee Machine

Ricardo Reis, a Brazilian entrepreneur, has recently created a bitcoin-powered coffee machine, in an attempt to show the flagship cryptocurrency has various potential use cases as actual “programmable money.” A video of the coffee machine in action was initially shared with a BTC-focused group on Facebook, and made the rounds on social media. The machine

The post Brazilian Entrepreneur Creates Bitcoin-Powered Coffee Machine appeared first on CCN

Mining Consumes Half as Much Power as BECI Estimates – Coinshares

Mining Consumes Half as Much Power as BECI Estimates - Coinshares

Embellished estimates as to the total electricity consumed through bitcoin mining have again made the rounds in the media recently, with many stories claiming that energy consumed by mining annually is comparable to that which is consumed by the entire nation of Ireland. Said stories appear to have been triggered by research published by Alex de Vries citing Digiconomist’s Bitcoin Energy Consumption Index (BECI) – an index that critics have approximated to overestimate the power consumed through bitcoin mining by more than 115%. Refuting estimates based upon the BECI index, Coinshares has published a report claiming that the mining industry consumes approximately 35 terawatt hour (tw/h) worth of power each year – a 50% reduction from estimates based upon BECI.

Also Read: ”Ludicrous” – Analysts Debate How Much Power Is Consumed per Bitcoin Transaction

Exaggerated Reports Claim BTC Mining Consumes As Much Electricity as Ireland

Mining Consumes Half as Much Power as BECI Estimates - CoinsharesA report into the energy consumed by the bitcoin mining network by Alex de Vries, the founder of the Digiconomist blog, has inspired a recent barrage of reports claiming that bitcoin mining consumes as much electricity as the entire nation of Ireland.

Receiving less attention, however, have been the criticisms of the assumptions underpinning Digiconomist’s BECI. Mr. de Vries himself has acknowledged that “We’ve seen a lot of back-of-the-envelope calculations, but we need more scientific discussion on where this network is headed. Right now, the information available is pretty poor quality overall, so I’m hoping that people will use this paper as a foundation for more research.”

Coinshares Study Estimates Mining to be Half as Energy Intensive

Mining Consumes Half as Much Power as BECI Estimates - CoinsharesA report published by Coinshares has found that the total energy consumption of bitcoin mining to be 35 tw/h, or roughly half of that produced by Mr. de Vries’ study based on Digiconomist’s BECI.

The head of Coinshares Research and co-author of the report, Christopher Bendiksen, states “The argument has long gone that the carbon footprint of mining is antithetical to the world’s environmental needs. Many miners we’ve spoken to have objected to the data used by Digiconomist; although they don’t make their methodology clear, it appears that they have taken a bottom-up approach by assuming a small pool of miners is representative of the community.”

Of BECI, the report states “Our findings strictly contradict both of these figures and we believe that they rest on incorrect assumptions resulting from inadequate research.”

BTC Mining “Mainly Powered by Renewable Energy”

Mining Consumes Half as Much Power as BECI Estimates - CoinsharesThe report finds that the bitcoin mining industry to be primarily fuelled by renewable energy sources, particularly hydropower.

“Overall, we find that contrary to previously reported assumptions, bitcoin mining is largely driven on cheap renewable energy, dominated by hydro, with the limited permanent use of, and some seasonal migrations to, coal-based generation in certain areas of China only representing a small part of the network’s total electricity demand.”

“China has huge excess electricity generation capacity locked up in hydropower stations in the south and southwestern provinces,” the report adds.

Do you mine for cryptocurrency using renewable energy? Join the discussion in the comments section below!


Images courtesy of Shutterstock, Coinshares.co.uk


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Japanese Police Arrest Coinhive Users for Violating Law Banning Computer Viruses

Japanese Police Arrest Coinhive Users for Violating Law Banning Computer Viruses

Japanese police from 10 prefectures have arrested website operators using Coinhive to tap into the computer power of their site visitors to mine cryptocurrencies without consent. They are accused of violating the law banning the use of computer viruses. Some people have already been fined. The police have been monitoring the Coinhive program since it was released.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

16 People Caught

The police from 10 prefectures throughout Japan have reportedly caught 16 people using mining programs to mine cryptocurrencies using other people’s personal computers, according to local media. The Japan Times reported the National Police Agency saying:

Sixteen people in Japan have been found to have embedded computer programs on their own websites to use personal computers of viewers for cryptocurrency mining without their consent…These people have been accused of violating the law banning the use of computer viruses.

The Asahi Shimbun elaborated, “Three men were arrested on suspicion of illegal use of what were defined as computer viruses, while 13 other men had their papers sent to prosecutors for the same suspicion.” Previously, news.Bitcoin.com reported that the police were investigating the three people whom they have now arrested.

Japanese Police Arrest Coinhive Users for Violating Law Banning Computer VirusesAll of the accused operate their own websites which allegedly had programs installed to use visitors’ computers to mine crypto. The 16 are between the ages of 18 and 48. One is a teenager, seven are in their 20s, four are in their 30s, and the remaining four are in their 40s.

Some of them have already been fined ¥100,000 (~US$904), the Japan Times further revealed, noting that “The most money earned among the 16 suspects was the equivalent of about 120,000 yen ($1,100).”

Furthermore, the publication emphasized, “It is the first time in Japan that a person has been accused by police of using another person’s personal computer through a cryptocurrency mining program without approval.”

Police Keeping an Eye on Coinhive

Japanese Police Arrest Coinhive Users for Violating Law Banning Computer VirusesJapanese police have been monitoring the Coinhive program since it was released in September last year to determine where it has been installed, the publication noted.

Citing that the programs were embedded in adult, music and game websites to mine four cryptocurrencies, including monero and jsecoin, the news outlet wrote:

Of the 16 people, 14 used Coinhive, a program that provides 30 percent of mined cryptocurrencies to the developer and the remaining 70 percent to owners of websites in which the program is embedded.

Hisashi Sonoda, a professor at Konan Law School knowledgeable about cybercrimes, believes that “the sudden arrests may have been somewhat excessive because there are no legal precedents on how to handle the use of such programs,” the Asahi Shimbun conveyed.

What do you think of the Japanese police’s action? Let us know in the comments section below.


Images courtesy of Shutterstock and Coinhive.


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Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain’s Official Account

Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain's Official Account

This week the Twitter handle @Bitmaintech was locked down because Twitter administrators claimed the account belongs to a 4-year-old. The Twitter handle’s owner and Bitmain’s head of marketing have complained to the social media company’s support team and Twitter’s CEO Jack Dorsey. The account lockdown marks the second high profile bitcoin-related account that’s been banned from Twitter in just a few months.

Also Read: Study Reveals ASIC Miners Represent 30% of the Equihash Mining Hashrate

The Official Bitmain Tech Twitter Account Has Been Suspended

On June 14 Bitmain Tech’s head of marketing Nishant Sharma tweeted to his followers that the company’s official Twitter account @Bitmaintech had been banned from Twitter. At the moment the Twitter account is completely inaccessible to the public and the Beijing-based company’s active ad campaigns have been paused.   

Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain's Official Account
The official @Bitmaintech Twitter account was locked on June 14, 2018.

Bitmain’s account accumulated thousands of Twitter followers over the past four years and now the account is unable to post or utilize the social media platform in any manner until the case is resolved.          

“The @Bitmaintech account is temporarily inaccessible because apparently, Twitter thinks that the people behind the account are as old as Bitmain i.e. 4 years old,” says Sharma.

It should be back soon (and long before Bitmain turns 13). @Jack help please. Case# 85911059

The Recent @Bitcoin Account Suspension

The account removal comes at an awkward time for the Twitter CEO, Jack Dorsey, who has been asked to address multiple issues tied to the social media platform. For instance, just recently the @Bitcoin account was banned and the topic was very controversial. The account with over 750,000 followers was initially suspended and then the account was restored with a much lower follower count than it had prior to the ban. Some people accused Dorsey of being biased and showing a conflict of interest towards supporters of the Lightning Network (LN) by allowing the banning of the @Bitcoin account. The reason for this speculation is due to Dorsey’s recent investment into the LN project.

Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain's Official Account Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain's Official Account

 Legitimate Accounts Banned, but ETH Bot Impersonation Thrives

Twitter users within the cryptocurrency industry are also dealing with the vast amounts of scamming ETH bots that have cloned nearly every well-known person in the crypto-community. The ETH bots have managed to scam millions worth of ether because Twitter will not remove the fraudulent accounts impersonating digital currency luminaries. So essentially people are pretty frustrated that Twitter has managed to ban and censor legitimate users like @Bitcoin and @Bitmaintech, while allowing fraudulent scammers to run amuck all over the platform.

Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain's Official Account

The case of Bitmain losing it’s official account, because Twitter admins believe it belongs to a four-year-old, seems absurd, but Twitter has been a whacky place lately, and the company hasn’t been very responsive. The issues with Twitter also follows the recent accusations and admissions stemming from other social media platform CEOs abusing their powers. Back in 2016, the Reddit CEO Steve Huffman admitted to editing comments on the pro-Donald Trump subreddit, r/the_donald. This year Facebook’s Mark Zuckerberg has been scrutinized for selling user data to Cambridge Analytica. And now Twitter users are complaining about banned accounts and censorship and many of them are pointing their fingers at Jack.   

What do you think about Bitmain’s Twitter account getting banned because admins believe the account belongs to a four-year-old child? Do you think Jack Dorsey and Twitter have a lot of explaining to do? Let us know your thoughts on this subject in the comment section below.


Images via Pixabay, Bitmaintech, the Twitter logo, @bitcoin, @bitmaintech, @laurashin 


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Censorship, Bans, and ETH Scams: Twitter Suspends Bitmain’s Official Account appeared first on Bitcoin News.

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among Attendees

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among Attendees

For more than a decade, Freedom Fest has been a top attraction on the conference circuit for those leaning toward freer markets. Through the years, it has grown to include speakers and topics well beyond economics. In doing so, it has attracted some of the most interesting minds in the world. 

Also read: William Shatner Joins Bitcoin Mining Project, Admits He Doesn’t Quite Get It

Freedom Fest Founder Talks Crypto

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among Attendees

This year’s gathering in Las Vegas, July 11th through 14th, is continuing to branch out. Cryptocurrency and its underlying technology are taking up more intellectual space this July, with a host of debates, lectures, and presentations sure to interest news.Bitcoin.com readers. We caught up with its founder, legendary economist Mark Skousen, to gain insight into the popular conference.

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among Attendees
Dr. Skousen

News.Bitcoin.com: Freedom Fest is one of the biggest, best attended libertarian/freedom movement soirees. Why do you think it’s so popular while other conferences struggle to sell tickets?

Founder Mark Skousen: We do several things unique — first of all, Freedom Fest is a Renaissance gathering, where we talk more than just politics. We also discuss and debate philosophy, history, science & technology, healthy living, music & dance, law & religion, etc. We even have a film festival. There’s something for everyone. We also have lots of breakout sessions, so there’s plenty to choose from, and nobody is bored. We also have a “financial freedom” investment conference, my area of expertise. I think if we were strictly a libertarian conference, we wouldn’t be so successful. I also like to think that because we are a “for profit” business, we focus more on what the attendee wants, rather than what the donors want. Also, we aren’t competing with non profits and engaged in fundraising. 

I do think we could be a lot bigger and more influential — as “the greatest libertarian show in earth,” as the Washington Post calls us — if everyone in the freedom movement, including think tanks, would join together instead of each one starting their own conference, which is what they are all doing. As Ben Franklin says, “We just all hang together, or we shall surely all hang separately.” (So let’s hang out in Vegas!) We are relatively small in the world, and spreading ourselves too thin these days. So we offer every major freedom organization a chance to create their own mini-conference at Freedom Fest.

Every year Freedom Fest seems to incorporate more cryptocurrency themes into the program. I’ve counted at least four events centered around them, including what looks to be a pretty great debate. Is it just my bias showing? Or, have you seen a growth in interest by Freedom Fest participants as well?

Yes, I think so.  We’ve been covering digital currencies for several years now, which I regard as a legitimate currency, although not especially utilitarian given its volatility. That’s why we invited Patrick Byrne, CEO of Overstock, to address us this year — he thinks bitcoin and blockchain are revolutionary. I agree.

This year’s Freedom Fest boasts Naomi Brockwell, Bitcoin Girl, as the gathering’s mistress of ceremonies. We’re, of course, big fans of her, but why did you choose her as MC?

Not because she’s the Bitcoin Girl, but because she’s young, attractive, and intelligent — and a great voice. She’s also well known in the freedom community.

Just about every year, there’s a surprise guest or someone thought to be controversial. Two years ago, for example, no less than candidate Donald Trump made a pitch to participants. Any hints as to what might happen this year?

We have invited a surprise guest, and if he shows up, it will be standing room only. But it’s a long shot.

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among Attendees
Naomi Brockwell

I printed out the agenda, itinerary, for this year’s Freedom Fest. Wow. It’s something like 20 pages. Is having a wide arrange of topics, from religion to education, to anarchy, done on purpose? Or has it just evolved that way?

We’ve had wide diversity of topics, debates, panels, etc. from the very beginning. We also work hard to make the topics provocative. It’s essential to get a good turnout, since each session competes with nine others.

We also have a different theme every year…In the past, it’s been “Are We Rome?”…”Are We Headed for Another French Revolution?”…”Is the American Dream Lost?”…and this year “Where is the Voice of Reason?”

Your seminal textbook, Economic Logic, now in its 5th edition, has a brief mention of bitcoin. Do you think that’s bound to change, say, for the 6th edition? In other words, do you think economists such as yourself will be compelled to grapple with it to a greater degree?

I do plan to include a major section of digital currencies in the 6th edition. I wished I had put in more in the 5th edition.

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among AttendeesAt least one of your quotes about bitcoin went viral a while back. You basically contend it won’t ever replace gold due to the fact computers can be effectively shut off, shutting off access to bitcoin. Do you still maintain your contention about it never replacing gold?

I’m of the opinion that the upward trend in gold seems to have been affected by the increasing interest in bitcoin and other cryptocurrencies as a legitimate alternative. But because it’s digital and non-physical, it can never replace the benefits of actual gold ownership.

You were one of the few well-known economists to express a bullishness towards cryptocurrency. Do you still think well of crypto? Has the price drop changed your mind?

Volatility is still a problem, and that’s keeping back its use by everyman. Most investors hold it as a speculation rather than a medium of exchange.

Do you, or have you, actually used cryptocurrency to purchase goods and services? Just curious.

Not yet.  Like everybody, I wished I had gotten in early and become a millionaire!

Freedom Fest 2018: Cryptocurrency Speakers, Debates, & Growing Interest Among AttendeesThis year Freedom Fest is throwing a 50th Anniversary celebration for Reason. How important is Reason to the liberty movement in your view?

Reason Foundation has grown tremendously in the past 50 years and now competes with the Cato Institute as the most influential libertarian freedom organization. I’m a big supporter, and they are equally supportive of what we are trying to do. We are delighted to have them co-sponsor many of our events this year. For the first time, they are holding their Reason Media Awards at Freedom Fest at the Saturday night banquet on July 14 rather than in New York.

We are honored to celebrate special years with all the freedom organizations.

Next year we have a theme that will draw a big crowd (I predict): “The Wild West.” July 17-20, 2019, Paris Resort, in Las Vegas. And yes, we are planning a square dance!

What do you think about Freedom Fest? Let us know in the comments. 


Images via the Pixabay.


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Survey: 13% of Net-Savvy Ukrainians Own Cryptocurrencies

Survey: 13% of Net-Savvy Ukrainians Own Cryptocurrencies

Ukrainians are increasingly aware of cryptocurrencies, and 13 percent of those using the Internet own digital coins, according to a new survey. The total of the daily turnover on the three leading cryptocurrency exchanges in the country currently reaches $2 million USD.  

Also read: Ukrainian Companies Mint 25 Coins, Raise $132 Million

Majority of Ukrainians Know About Bitcoin

A sizable majority of the respondents in an online survey in Ukraine have said they are aware of digital currencies – 72 percent of those questioned know what cryptocurrency is. Another 23 percent have heard the term, while 5 percent told interviewers they were hearing the word for the first time. Ukrainian men are better informed about coins – 81 percent, as well as youngsters – 79 percent.

Survey: 13% of Net-Savvy Ukrainians Own Cryptocurrencies

The poll has been conducted by Kantar TNS, the local representative of the marketing research firm Taylor Nelson Sofres (TNS). 1,000 residents, aged 18-55, have been contacted online throughout Ukraine, with the exception of the conflict zones in the eastern part of the country and Crimea.

The results show that bitcoin (BTC) remains the most well-known cryptocurrency, with 98 percent of the Ukrainians with access to the web saying they know about it. It’s followed by litecoin with 29 percent and bitcoin bash (BCH), 27 percent. Fourteen percent of the participants recognize dash, and 6 percent – NEM.

Survey: 13% of Net-Savvy Ukrainians Own CryptocurrenciesThe authors of the study have also tried to determine how involved Ukrainians are with cryptocurrencies. According to their data, 13 percent of the respondents own digital money. Among them 88 percent have acquired bitcoin core (BTC), and 25 percent – bitcoin cash (BCH). 18 percent own litecoin, and dash and ethereum – 7 percent each. The rest either do not trust cryptocurrency, don’t have the technical means to acquire it, or do not understand its principles.

Participants were asked if they thought cryptocurrencies should be treated just like regular, fiat money. The answer options yes/no/I don’t know received about a third of the votes each.

Survey: 13% of Net-Savvy Ukrainians Own Cryptocurrencies

A majority of 41 percent said authorities should support the free circulation of cryptos, 19 percent stated it should be banned by the government, and 37 percent had no opinion. Only 1 present of the polled believe regulation is necessary, while 2 percent think the state should not interfere at all.

Ukrainians Trade $2 Million Worth of Crypto Daily

Survey: 13% of Net-Savvy Ukrainians Own CryptocurrenciesDespite the lack of comprehensive data about the size of the Ukrainian cryptocurrency market, it has been estimated that the daily crypto-hryvnia turnover on the three major exchanges reaches $1.9 – $2 million USD (~$700 million a year), local media reported.

Experts note, however, that the transactions on these trading platforms, Exmo, Kuna and BTC Trade UA, are only a part of the total. More than a dozen other platforms, as well as thousands of individual traders are offering exchange services, both online and offline.

Other sub sectors are also contributing to the growth of the industry. “According to market sources, approximately $80 million have been invested in mining in Ukraine. About 90 – 95,000 Ukrainians own cryptocurrencies. The majority have invested small amounts in 2017 – 2018,” Ekaterina Belous, an expert working on the USAID “Financial Sector Transformation” project, told Realist. For the past several years, more than 50 high-ranking officials and members of parliament have declared digital assets on their tax returns.

Do you expect the ownership of cryptocurrencies in countries like Ukraine to increase in the near future? Let us know in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com

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Bitcoin Magazine’s Week in Review: Looking Back to See the Way Ahead

Week in Review

It’s been a turbulent time for the cryptocurrency markets, so now is a good time to reflect on how and why we got here in the first place. First, an op ed makes the ideological case for Bitcoin. Then, we continue to review the history of Bitcoin from its Cypherpunk days, with the latest installment of The Genesis Files, this time paying tribute to Wei Dai and his “b-money” protocol.

South Korea has seen one of their cryptocurrency exchanges hacked this week, with Coinrail reporting a major theft. Meanwhile, Coinbase has added more tokens and a crypto index fund to its exchange offerings.

Misconceptions about Tether and what is going on with this U.S.-dollar-backed token are explored and explained.

Featured stories by Robert-Jan den Haan, Andrew Kiguel, Randolph Malone, Nick Marinoff and Aaron van Wirdum.

Stay on top of the best stories in the bitcoin, blockchain and cryptocurrency industry. Subscribe to our newsletter here.

Op Ed: I Think, Therefore I Bitcoin: The Case for Bitcoin

Andrew Kiguel, founder of Hut 8 Mining, reflects on what Bitcoin means, beyond the hype of its bumpy price charts. He argues that Bitcoin represents freedom to store wealth in an asset that is out of government’s reach; freedom to conduct transactions — peer to peer — without relying on centralized financial institutions that have eroded our trust.

He acknowledges that Bitcoin is not perfect. It will evolve. Scammers will remain, as they do everywhere in the financial community. Regulation will come. Gains will be rightfully taxed. Detractors will continue to hate. Volatility will remain. However, because of the freedom it puts in the hands of individuals, Bitcoin will not disappear or pop like a bubble. Ever.

The Genesis Files: If Bitcoin Had a First Draft, Wei Dai’s B-Money Was It

Wei Dai is best known for an idea he casually announced in November 1998, just after graduating from university. His idea, b-money, was eventually included as the first reference in the Bitcoin white paper.

“Efficient cooperation requires a medium of exchange (money) and a way to enforce contracts,” Dai explained in his initial proposal. “The protocol proposed in this article allows untraceable pseudonymous entities to cooperate with each other more efficiently, by providing them with a medium of exchange and a method of enforcing contracts. [...] I hope this is a step toward making crypto-anarchy a practical as well as theoretical possibility.”

Clearing Up Misconceptions: This Is How Tether Should (and Does) Work

There is substantial controversy surrounding Tether, a cryptocurrency that claims to be pegged to the U.S. dollar. According to Tether, each token is backed by one U.S. dollar, held in the full reserve of Tether. But the existence of the U.S. dollars pegging Tether has been called into question. Worries also exist that Bitfinex has been using Tether to prop up the price of bitcoin.

Research shows that misconceptions exist regarding how Tether functions, which in turn may be contributing in part to the existing controversies. By better understanding how Tether functions, it may be possible to provide some clarity.

South Korean Exchange Coinrail Hacked, $40 Million in Crypto Reported

Executives at South Korean cryptocurrency exchange Coinrail reported a hack on June 10, 2018, when thieves allegedly made off with 30 percent of the tokens on the exchange, worth over $40 million and made up of altcoins and assorted tokens. An investigation is under way, and law enforcement officials are working to figure out who was behind the attack. This is the fifth major hack of 2018.

New Coinbase Additions: Ethereum Classic and Crypto Index Fund

Among all the other big announcements that have been coming from Coinbase recently, the company announced on Monday, June 11, via blog and Twitter, that during the coming months it intends to add support for Ethereum Classic (ETC) to its exchange platform. The currency will join bitcoin (BTC), ether (ETH), litecoin (LTE) and bitcoin cash (BCH) as the fifth digital currency supported by the largest U.S.-based crypto exchange.


This article originally appeared on Bitcoin Magazine.