roadrunner

The IOTA network has been down for approximately 11 days and the IOTA Foundation doesn’t expect the mainnet to be reactivated until March 2. On February 14, our newsdesk reported on the beginnings of the IOTA outage, when the network status page indicated that it was down. The page still warns IOTA’s mainnet is “not operational” and there’s a number of updates from the developers about the alleged Trinity wallet exploit. Also Read: IOTA Network Still Down: How the Next Bitcoin Killer Screeched to a Halt IOTA Mainnet Halted for 11 Days Thanks to the Coordinator Node The 22nd largest blockchain by market capitalization IOTA has run into trouble during the last week and a half, as the project’s mainnet has been down for 11 consecutive days. IOTA has received some attention over the years, as the distributed ledger technology called “tangle” was said to be more efficient than a blockchain. Additionally, the community has claimed that the IOTA data structure will help bolster or even power the coveted internet of things (IoT) in the future. The IOTA ‘tangle’ network has been a trending topic lately on Twitter and Reddit, as the protocol’s mainnet has been down for 11 straight days. Bitcoiners first heard about IOTA in 2015 when the project was introduced by David Sonstebo, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov. There is a liquid supply of 2,779,530,283 IOTAs and the currency’s market valuation today is around $736 million. IOTA was first listed on a major exchange in June 2017 and the currency climbed to its all-time high (ATH) that year at $5.69 per token. IOTA’s network status page has a number of updates and explains that the mainnet is not operational. In 2018, IOTA developers went head to head in a debate with researchers from MIT’s Digital Currency Initiative (DCI) who claimed to have found an IOTA hash function vulnerability. DCI experts said that IOTA devs used a hash function called the Curl-P function, which is known amongst veteran cryptographers to have issues. IOTA developers note that the implementation of Curl-P was “intentionally designed” and they did it to protect the software. unlike other crypto “experts” and cultists, this is a very informed and constructive take on the #IOTA Trinity hack. read the thread. 🔥😎🍿 https://t.co/OxqaUwD4Op — ~C4Chaos (@c4chaos) February 15, 2020 Since then, IOTA’s price is down over 95% from its ATH and the protocol has made headlines again for being un-operational for over a week. It was only during the last week of December 2019 when the IOTA network stopped working for a 15-hour period. This time around, IOTA developers say that there was an exploit with the Trinity wallet and they recorded a loss of “8.55 Ti” or $2.3 million worth of IOTA. The team noticed issues on February 12, when they received reports of users losing funds and they decided to stop the coordinator. “Within the first four hours of investigation, the [IOTA] Foundation made the decision to halt the coordinator, which was put in place as a temporary security mechanism during the network’s maturation phase,” explained the project’s recent blog post. Trinity users – If you opened #Trinity between Dec 17th 2019 – Feb 18th 01.30 CET 2020, you will need to use the seed migration tool to protect your tokens. Further details about the tool and migration period soon. All updates at https://t.co/3blzUVGJTE or https://t.co/vbg93hQBiG — IOTA (@iotatoken) February 20, 2020 IOTA’s coordinator is controversial among cryptocurrency enthusiasts, because they believe the switch is centralized. However, IOTA proponents say the coordinator is meant to protect the network while it’s young, so it can provide milestone checkpoints during the network’s early stages. When the IOTA Foundation chose to halt the coordinator, the team created an incident management plan with status updates for the public. The foundation is aware of about 50 “independent seeds that had their tokens stolen during this attack,” which is how the team accounted for 8.55 Ti or ($2.3M). Even though the foundation identified several victims, it really doesn’t know the full extent of the damage. Because of possible unknowns, IOTA Foundation is asking all Trinity wallet users to leverage a migration tool in order to secure their funds going forward. I was the fan of #iota up to yesterday but I don’t support #iota anymore It’s not because of trinity wallet problem (hack) Because #iota team shut down the entire network for small problem. Yes ! #iota is centralized and Cordicide didn’t make iota decentralized — saman (@saman_saman17) February 14, 2020 Migration Tool Skeptics and IOTA Supporters Confirm Tangle Is Currently Not ‘Decentralized’ The migration tool and IOTA’s decision to lock down the network by leveraging the coordinator node has been a very contentious subject. Crypto veterans are questioning the very nature of any decentralization within the IOTA project. Some have argued that the migration tool implements a “KYC-ed reclamation plan,” which forces people to identify themselves when claiming their funds. The outage has invoked a number of IOTA critics to scrutinize the project and a few people think what happened was an embarrassment. With a facepalm emoji, the Twitter handle @Blockchainchick sarcastically remarked about the IOTA coordinator situation and tweeted: “When the co-chair of a foundation for a ‘decentralized’ network admits to being happy that they had the power to pause the network (and also solely determine ‘the finality and validity’ of transactions).” Many large companies have difficulties: VW, Apple, Microsoft, Toyota, Bayer, Huawai … It is important how the company deals with and solves this problem. I don't see the trinity hack negatively for IOTA in the long run. History shows that. #IOTA — Alexander Zima (@zima_alexander) February 17, 2020 Still, IOTA fans are not fazed by the week-long outage and supporters have even remarked that the project isn’t decentralized. “They never claimed as of today the tangle is ‘decentralized’ yet. But with the upcoming ‘coordicide’ it will be for sure one of the most decentralized networks,” ‘Chris IOTA enthusiast’ tweeted in response to Blockchainchick’s commentary. What do you think about the issues with IOTA during the last 11 days? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Twitter, Fair Use, and the IOTA Status Page. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post IOTA Network Down for 11 Days – Devs Claim Mainnet Will Be Operational Next Month appeared first on Bitcoin News. View the full article

On February 21, the crypto Twitter commentator Dovey Wan published a series of tweets about an alleged SIM card hack that purportedly saw the loss of $30 million in bitcoin cash. The story stemmed from a Reddit post that’s now deleted and so far no one has provided any verifiable proof from the proclaimed victim. Also Read: Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor $30 Million in BCH and $14 Million in BTC Allegedly Stolen in a SIM Hack A rumor has been floating around crypto Twitter after a now-deleted Reddit post said that a major Chinese investor allegedly lost $30 million worth of BCH and $14.4 million worth of BTC. The Reddit thread noted that the investor’s SIM card was breached and within the post, the supposed victim begs BCH miners to help with the transactions. “It’s only had 3 confirmations […] if any miners/the community can help somehow,” the alleged victim stressed. Not too long after the $30 million SIM hack post appeared, it was deleted by the person who created it. Then the crypto Twitter pundit Dovey Wan published a series of tweets about the SIM hack situation and her thoughts about the deleted Reddit post. “Breaking – BCH sim hack! Worth $30M from [a] single Chinese whale (he claimed lost $15M BTC too) He’s now asking for help from miners ..I’m talking with top BCH pool owners on this OMFG,” Wan tweeted. She then said it seems to her that the hacker was splitting the BTC into smaller amounts and she wrote “RIP BCH … only a double-spend can help this poor guy now.” For some odd reason, Wan’s tweets suggest that BCH miners needed to hard fork. “The best strategy for bcash now is an urgent hard fork it seems like …,” Wan insisted. She added: No matter what, this 60,000 BCH hack, the dispute among BCH camp between Ver and Johansson, all these will mark a slow death of it. After the Reddit post and the series of tweets from Dovey Wan, the SIM hack story started spreading across social media and forums. Despite the fact that most of the facts from this story stemmed from a deleted Reddit post and Dovey Wan’s biased statements against bitcoin cash, a few news outlets ran with the story. The only verifiable source that can be found is a BCH address that shows $30 million worth of BCH sent from the wallet. Publications like Toshi Times and Cointelegraph both wrote about the tale and both authors noted that it was “unclear” what Wan was talking about, as far as her alleged feud between Johansson and Ver goes. The story itself looks like propaganda meant to smear BCH, especially with the added claims that BCH needs to hard fork to erase one man’s crisis. Notably, Wan’s tweets are filled with derogatory statements about BCH and an absurd solution to fix the problem. Despite what she or any of the other Twitter commentators think, BCH supporters understand a hard fork to reverse these transactions won’t happen. A screenshot of the BCH address in question – qzumak2rvxksjgkjuxe2fe5jxatktlsnhy5sthr5p7 The Unverified Bitcoin Mining Flood Video The story about the so-called $30 million BCH SIM card hack is another example of how hearsay and rumors can become wild crypto stories. This particular story seemingly stemmed from the “bitcoin cash isn’t bitcoin” crowd of maximalists. Another example is when Wan shared a video tweet of a flooded mining farm in November 2018. However, Wan was accused of sharing a video that was ostensibly filmed months prior and one person said: “This is fake – Don’t fall for the BS. Pictures/video are from last year after a flood.” “Can you prove this was from recently? Seems it’s from earlier this year during flooding,” another person tweeted. This is a video from a last year's flood in China.Great job on the $CRYPTO #FakeNews .And after #DMOR I'm so glad I don't follow you or any of the projects you are working on/for! pic.twitter.com/1LQkxU1JSh — m3rt1x up in: $BTC $USDT $XTZ $ETH #Altcoins (@m3rt1x) November 20, 2018 “Those look like older generation Avalons, probably Avalon 741s,” crypto miner Jonathan Toomin responded to Wan’s tweet in November. “Those probably make about $0.05/kWh right now on BTC. Many Chinese mines pay about $0.05/kWh just for electricity, so they are obsolete and unprofitable.” Many skeptics believed at the time the video Wan shared in November came from the flooded Sichuan bitcoin mine story that actually happened in July. “Are there any links/sources to back this up?” another person asked Wan. SIM Card Story Has Numerous Skeptics and People Believe the Tale Is Fishy The $30 million BCH SIM hack story has a lot of similarities with the flood tale and there are vague reports and accusations floating around Twitter because of it. According to a few individuals who dug further into the tale, it was noted that the SIM hack victim was allegedly Dreamhost founder Josh Jones. Numerous BCH supporters have been skeptical of this story especially after a few crypto Twitter pundits claimed that BCH needed to hard fork in order to fix the situation. Moreover, Josh Jones has not come forward publicly to confirm this rumor. Reportedly, Jones is one of Mt Gox’s largest creditors and during the SIM hack someone also signed a message with the private keys. It’s still unknown why the victim had his private keys, but yet he still couldn’t access his funds. Throughout numerous Reddit threads and a few Twitter posts, a number of BCH proponents thought the latest SIM hack story was extremely fishy. “Are we being trolled? I don’t get it,” one Redditor commented on the r/btc forum. “How do you get a private key with a SIM hack? Something isn’t right here.” What do you think about the rumors and ostensible story of a $30 million BCH SIM card hack? Do you think this story is legitimate or fishy? Let us know what you think about this topic in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Twitter, the Bitcoin Block Explorer tool, r/btc, Fair Use, Wiki Commons, and Pixabay. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post $30M Bitcoin Cash ‘SIM Hack’ Sparks Wild Crypto Tales With Vague Sources appeared first on Bitcoin News. View the full article

Could this be a sign that the mainstream media is warming up to bitcoin again like they did before the 2017 rally? The Simpsons featured an almost two-minute segment explaining how cryptocurrency and blockchain work with the actor who played Sheldon Cooper on The Big Bang Theory. Also Read: 12.6M Viewers Will Hear About Bitcoin Watching The Big Bang Theory Cryptocurrency Explained on The Simpsons The animated family sitcom show that first aired in 1989 has featured an explanation on the nature of cryptocurrency in its latest episode. The Simpsons is now in its 31st season, and for the 13th episode of the season it brought in Jim Parsons, best known for Sheldon Cooper in the The Big Bang Theory, to explain the concept of cryptocurrency. In the segment, the animated Parsons tries to prove that he is not a nerd and actually “super cool” by the fact that he is talking about the subject of cryptocurrency. He also fakes jumping over a few buses in a motorcycle and is filmed with piles of cash stacked behind him. The segment also features a singing ledger that seems to really enjoy it when transactions are recorded on him. The sketch is somewhat informative to anyone who haven’t heard about the topic before and it avoids mentioning anti-crypto tropes like that it is only used by hackers or criminals, which it could have done. In a graphic shown near the end of the segment, the TV show’s creators seem to acknowledge that they know that the presentation makes them look like they have only a novice’s understanding of crypto but they dispute that and let us now that they even know who the real Satoshi is. That might be true as The Simpsons featured Bitcoin twice before 2016 and crypto was also included in a Simpsons video game in 2018. The Big Bang Theory Connection This isn’t the first time a TV sitcom involving Jim Parsons has tackled the topic of cryptocurrency. The Big Bang Theory aired an entire episode based on a digital assets storyline in November 2017. The episode, called “The Bitcoin Entanglement,” showed the cast of geeks and nerds learning about the price rally, suddenly remembering they mined some bitcoin a few years before and dreaming about all the stuff they can buy when BTC hits $5,000. While dedicating a whole episode to bitcoin was exceptional for a fictional show, the topic of cryptocurrency has appeared on other series before, such as Mr. Robot, Startup, CSI Cyber, The Good Wife, Jeopardy, Almost Human, Person Of Interest, House Of Cards, Parks and Recreation, HBO’s Silicon Valley, Supernatural, and Marry Me. Recently even MTV aired an episode of a new show called True Life Crime with a “crypto expert” (Rachel Siegel) that talked about SIM swap hacks. I’m MTVs first ever “crypto expert” and there’s not a damn thing you can do about it. It’s. Ya. Girl. 🔥 — Crypto Finally 💫 (@CryptoFinally) February 20, 2020 What do you think about cryptocurrency appearing on the latest episode of The Simpsons? Share your thoughts 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 Bitcoin.com Markets, another original and free service from Bitcoin.com. The post Cryptocurrency Explained on the Latest Episode of The Simpsons appeared first on Bitcoin News. View the full article

Wells Fargo, one of the largest U.S. financial services companies, has agreed to pay $3 billion to resolve the U.S. government’s investigations into fraudulent sales practices spanning over 15 years. The Wells Fargo fraud case involved the company forging customer signatures, moving money from millions of customer accounts to unauthorized accounts, and misusing customers’ sensitive personal information. Also read: Regulatory Roundup – Trump’s Cryptocurrency Proposals, IRS Changes Rule, China Quarantines Cash Illegal Practices for Over 15 Years The U.S. Department of Justice (DOJ) announced Friday that Wells Fargo has agreed to pay $3 billion to resolve criminal and civil investigations into fraudulent sales practices involving millions of customer accounts. The practices occurred between 2002 and 2016 when the company pressured its employees to meet unrealistic sales goals. The DOJ stated: Wells Fargo admitted that it collected millions of dollars in fees and interest to which the company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification. “When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle,” U.S. Attorney Andrew Murray for the Western District of North Carolina commented. “No institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings.” Founded in 1852, the San Francisco-headquartered company provides banking, investment, and mortgage products and services, as well as consumer and commercial finance. It currently has $1.9 trillion in assets, 7,400 locations, more than 13,000 ATMs, and offices in 32 countries and territories. According to its website, the company is the largest by total deposits based on FDIC data in 2019, Fortune ranked it as the 6th largest based on total assets, and Forbes ranked it as the 10th largest public company in the world based on sales, profits, assets and market value. The Wrongdoings The DOJ explained that Wells Fargo admitted to using illegal sales practices which began in 1998 when the company increased focus on sales volume. From 2002 to 2016, Well Fargo’s Community Bank used what it called “gaming” strategies. Community Bank was the company’s largest business unit at the time, consistently generating more than half of the group’s revenue. The gaming strategies “included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as ‘simulated funding,’ opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed,” the DOJ described. Community Bank’s top managers were aware of the unlawful, unethical and illegal gaming practices as early as 2002 but did not take sufficient action to prevent and reduce the incidence of such practices, the DOJ alleged, adding: Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business. The $3 Billion Settlement The $3 billion payment resolves three matters for Wells Fargo. “The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations,” according to the DOJ. “Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records.” The SEC independently issued a press release Friday confirming that Wells Fargo had agreed to pay $500 million “for misleading investors about the success of its largest business unit.” The company violated the antifraud provisions of the Securities Exchange Act of 1934. The DOJ detailed: The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors. Last week, crypto startup Elliptic announced that Wells Fargo Strategic Capital, an affiliate of Wells Fargo & Company, had joined its series B funding round. Elliptic is a provider of crypto risk management solutions. Its crypto transaction monitoring and investigations software enables clients to investigate and detect illicit activity in cryptocurrencies. What do you think of the Wells Fargo fraud case and the $3 billion fine? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Wells Fargo Fined $3 Billion for 15 Years of Illegal Practices Affecting Millions of Customers appeared first on Bitcoin News. View the full article

In April 2019, the UK issued an Online Harms White Paper to announce its campaign to rein in “harmful speech” on social media sites such as Facebook and TikTok. The public consultation period has ended and a full consultation response is expected in Spring 2020. (Initial Consultation Response here.) Legislation to criminalize freedom of speech will follow quickly. Also read: Cryptocurrency Is Agorism in Action The Death of Free Speech “The United Kingdom has become the first Western nation to move ahead with large-scale censorship of the internet … Boris Johnson has unveiled rules that will punish internet companies with fines, and even imprisonment, if they fail to protect users from “harmful and illegal content.” Couched in language that suggests this is being done to protect children from pedophiles and vulnerable people from cyberbullying, the proposals will place a massive burden on small companies. Further, they will ultimately make it impossible for those not of the pervasive politically correct ideology to produce and share content.” —Mark Angelides, “Britain allows the internet to be censored, a warning for the U.S.” The bill’s exact language is not known, but its thrust is clear. Internet companies with user-generated content will need to enforce anti-harm rules in order to avoid fines, imprisonment, or their sites being blocked. Home Secretary Priti Patel explained, “It is incumbent on tech firms to balance issues of privacy and technological advances with child protection.” The main target of attack is end-to-end encrypted (E2EE) messages that can be read only by a sender and a recipient by using unique cryptographic keys as decoders. Third parties cannot access the content. E2EE is the most effective privacy tool that is both easy to use and available to everyone, often for free. To comply with UK law, however, companies will need to eschew encryption or to install “backdoors”—portals that allow someone to enter a system in an undetected manner. Angelides’s warning to the U.S. is timely because Congress is considering a similar measure: the EARN It Act. Again, the Act’s justification is to protect children and to thwart evil-doers. After all, who else needs encryption? According to the United Nations, everyone. Encryption Is a Human Right In 2015, the UN issued a report on encryption and anonymity in the context of human rights. The report found encryption to be key to the right of privacy. In turn, privacy enabled freedom of speech through which people could explore “basic aspects of their identity,” including religion and sexuality. The report’s author David Kaye cautioned against using backdoors because of the “unprecedented capacity” of authorities, companies, criminals, and the malicious to attack people’s ability to share information safely. Kaye acknowledged the alleged need of law enforcement to read encrypted messages but on a “case-by-case” basis rather than blanket approach. This a long-held position for the UN. In 2016, Zeid Ra’ad Al Hussein, UN High Commissioner for Human Rights, published a warning entitled “Apple-FBI case could have serious global ramifications for human rights.” Zeid cautioned: Encryption tools are widely used around the world, including by human rights defenders, civil society, journalists, whistle-blowers and political dissidents facing persecution and harassment… Encryption and anonymity are needed as enablers of both freedom of expression and opinion, and the right to privacy. It is neither fanciful nor an exaggeration to say that, without encryption tools, lives may be endangered. In the worst cases, a Government’s ability to break into its citizens’ phones may lead to the persecution of individuals who are simply exercising their fundamental human rights. Amnesty International agrees. A 2016 article, “Encryption: A Matter of Human Rights,” argued, “Forcing companies to provide ‘backdoors’ to the encryption deployed … constitutes a significant interference with users’ rights to privacy and freedom of expression. Given that such measures indiscriminately affect all users’ online privacy by undermining the security of their electronic communications and private data, Amnesty International believes they are inherently disproportionate, and thus impermissible under international human rights law.” Why, then, are states rushing to crack open encryption? Because information is power. It is a prerequisite to demanding money and imposing social control. For decades, surveillance functioned from the shadows but now it openly demands access to people’s thoughts and lives. Who else but evil-doers would say “no?” The EARN It Act U.S. Attorney General William Barr has been loud in his demand that law enforcement be able to access encrypted communications—usually through a backdoor. Barr wants this access even when there is no cybersecurity risk or alleged crime. He may soon get what he wants so badly. The EARN It Act—Eliminating Abusive and Rampant Negligent of Interactive Technologies Act—would establish “a National Commission on Online Child Exploitation Prevention” to be headed by Barr, who has the authority to overrule it to become a one-man power. As well as “child exploitation prevention,” the Act asserts a vague mandate —“and for other purposes.” This is a blank check, with only the elimination of election misinformation being specifically mentioned. Republican Lindsey Graham and Democratic Richard Blumenthal are pushing the measure in the Senate on a bipartisan basis. The draft bill does not mention encryption, but it requires tech companies to assist law enforcement in identifying, reporting, and removing or preserving evidence about child exploitation … and “for other purposes.” E2EE would make it impossible for those companies to provide such assistance. The EARN It Act would de facto prohibit the E2EE offered by services such as WhatsApp; it would short circuit Facebook’s plans to encrypt its messaging apps; companies like Apple would be in legal jeopardy if they refused to insert backdoors in their software and devices. Setting a Dangerous Legal Precedent Legal jeopardy is the Act’s enforcement mechanism. A non-compliant tech company would lose Section 230 immunity in both civil and criminal courts for child exploitation and for as-yet-unspecified offenses that occur on its site or over its platform. The free-speech champion Electronic Frontier Foundation (EFF) explained the significance of Section 230 of the Communications Decency Act; it is “the most important law protecting free speech online.” The protection is based on distinguishing between a platform and a publisher. Section 230 states, “No provider or user of an interactive computer service [platform] shall be treated as the publisher or speaker of any information provided by another information content provider.” A platform provides services, tools, and products with which users create their own content; it bears no more legal responsibility for this content than a phone company does for the conversations that flow over it. By contrast, a publisher edits or otherwise controls content, which makes it legally liable. EFF continued, “Section 230 enforces the common-sense principle that if you say something illegal online, you should be the one held responsible, not the website or platform where you said it (with some important exceptions) … Without it, social media as we know it today wouldn’t exist … And it doesn’t just protect tech platforms either: if you’ve ever forwarded an email, thank Section 230 that you could do that without inviting legal risk on yourself.” EARN It not only strips immunity from non-compliant companies, it also weakens the standard by which they can be sued. It is now necessary for a plaintiff to prove that a company knew an offense was occurring in order to sue; EARN It would require a plaintiff only to show that the company acted “recklessly.” In a keynote address at the 2019 International Conference on Cyber Security, A.G. Barr defined E2EE as inherently irresponsible. “The costs of irresponsible encryption that blocks legitimate law enforcement access is ultimately measured in a mounting number of victims — men, women, and children who are the victims of crimes — crimes that could have been prevented if law enforcement had been given lawful access to encrypted evidence.” To Barr, the mere presence of backdoor-free E2EE constitutes recklessness. The targets of EARN It seem to be the internet giants that have aroused bipartisan rage. At a recent Senate Judiciary Committee hearing entitled “Encryption and Lawful Access: Evaluating Benefits and Risks to Public Safety and Privacy,” Apple and Facebook were attacked for using warrant-proof encryption that prevented authorities from investigating “terrorism, organized crime and child sexual exploitation.” Internet giants might not be the main victims of EARN It, however. EFF explained, “Undermining Section 230 does far more to hurt new startups than to hurt Facebook and Google. 2018’s poorly-named Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA)—the only major change to Section 230 since it passed in 1996—was endorsed by nearly every major Internet company. One consequence of FOSTA was the closure of a number of online dating services, a niche that Facebook set about filling just weeks after the law passed.” The legal need to screen or filter content placed smaller companies at a competitive disadvantage with the likes of Google. Conclusion Unfortunately, an ongoing backlash against Big Tech may propel EARN It through Congress. Moreover, Congress undoubtedly wants to have better control over social media before the 2020 elections. The EARN It Act will arrive with a cry of “Save our children!” But its impact will be to stifle freedom of speech across the spectrum, to hobble small businesses, and to make all users more vulnerable to criminals, including agents of the state. Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. 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. Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post No Backdoor on Human Rights: Why Encryption Cannot Be Compromised appeared first on Bitcoin News. View the full article

Tax season is one of the most dreaded times of the year for many, and when the added confusion of filing crypto returns is thrown into to the mix, things can get even stickier. News.Bitcoin.com recently talked with Clinton Donnelly of Donnelly Tax Law, a service that specializes in crypto returns. The U.S. Treasury-licensed Enrolled Agent shared some of his opinions and insights regarding crypto audits and what triggers them, as well as an example from a client. Also read: Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Out of Business Unclear Guidance Won’t Stop Audits The IRS announcement that thousands of tax warning letters would be issued to United States crypto holders last summer elicited calls for greater clarification and guidelines, but it hasn’t stopped the Internal Revenue Service audit train from steaming forward. The presence of a new crypto question on 2019’s Schedule 1 form has individuals concerned about reporting their crypto assets correctly more than ever, and according to experts, this is for good reason. “That is massive” says Enrolled Agent Clinton Donnelly of Donnelly Tax Law. “This question in the 2019 return … it forces every taxpayer in the United States to make a decision whether or not they’re going to be honest or not on this question, because its a yes or no and when you sign the tax return … it’s in small print, it says ‘under penalty of perjury I have reviewed this return and it’s true, complete and correct,’ so failing to check the box is incomplete.” He emphasizes: It’s a yes or no … it’s kind of like coming out of the closets … Anybody who was a trader in ’19, well, they were probably a trader in ’17 as well. Donnelly went on to explain that by reporting crypto gains in light of the new question, many crypto holders will inadvertently reveal that they first acquired their digital assets years back, which calls their previous years’ returns into suspicion and makes an IRS investigation more likely. Example of a Crypto Audit – Anti-Money Laundering the Active Focus Donnelly’s service has so far seen two cryptocurrency audits with its clients, and the tax professional is interested in learning more about what triggers an IRS investigation. One client claimed to have never received the 2019 warning letters, but was audited all the same. According to Donnelly, the focus of the IRS is not so much on the methods by which capital gains are reported, but that all inputs and outputs are accounted for, and that the AML (anti-money laundering) narrative remains in central focus. “I think people sense that the government views crypto traders as possibly engaging in some sort of crime,” Donnelly notes. “We shouldn’t feel that way, but we do.” He cites a recent Chainalysis report showing the darknet’s share of crypto usage is less than 1% of the total. The tax expert went on: I would say most of these questions, as you read them, fall into the category of anti-money laundering … My suspicion is that if the IRS wanted to crack down on every American that traded cryptos they could do it, but the backlash from voters back to congress would snap the IRS in the face and they would be sent packing … So I think as long as they stay on the money laundering theme, then they look above board. Donnelly also shared a non-confidential snippet of a client’s IRS audit letter for a 2017 return relating to just under $40,000 in crypto gains. This client claims to have never received the warning letters from the agency. Portion of a crypto tax audit document with notes from Donnelly. Source: cryptotaxaudit.com Donnelly emphasized throughout our conversation that it is not so much the various means by which a crypto holder reports gains — using different tax tools can and often does result in slightly different numbers — but that the IRS wants to verify total asset amounts add up, with all inputs and outputs accounted for. Especially where cash is concerned. The image of the form above lays out in detail what types of specific information the agency wants to know. Donnelly further detailed that high frequency traders are sometimes concerned when seeing large proceeds calculated for their trades on 1099-K forms from crypto exchanges, but that costs are not yet factored into these amounts. This can make some traders understandably hesitant to file, but audits are less likely if the proceeds amount is reported fully. IRS May Use Foreign Bank Account Form to Avoid Due Process in Audits “Half the court cases in tax court are because the IRS didn’t do the procedure right, the due process, if you will, ” Donnelly details, “but there’s this form called the FBAR form … that form is not a tax form, it’s not a part of the tax laws. The IRS administers it, but it’s not a part of the tax laws. It’s part of the Bank Secrecy Act, Title 18.” He goes on: Prosecutors love the FBAR form because they can say ‘you didn’t file it, you should have, whammo, here’s the penalty and we can assess it right now.’ There’s no due process defense on that. The FBAR form has to do with assets held in foreign bank accounts, and must be filed by U.S. taxpayers if “the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.” The FBAR brings Fincen (Financial Crimes Enforcement Network) into the tax action, and has to do directly with combating money laundering, so Donnelly suspects this may be part of the reason the AML narrative has become the focus of crypto tax reporting. It is also a frightening prospect for crypto traders utilizing overseas exchanges and accounts. The audit form asks taxpayers to report all crypto exchanges, opening up the possibility for FBAR to apply to them. Source: cryptotaxaudit.com “The penalty for the anti-money laundering form — this is FBAR — is $10,000, plus $10,000 for every foreign account that you’ve never reported,” Donnelly elaborates. “If you never filed the FBAR, you just told the IRS all the exchanges you were on … you just incriminated yourself. They say ah, ‘well you’re on Huobi, Kucoin, Binance, you got five of ’em. That’s $50,000 plus the $10,000 I originally smacked you with for not filing a form. You didn’t do this in ’17, you didn’t do it in ’18, you didn’t do it in ’16 either, so I can just add these penalties up.’ Before you know it you’re up to $200, $300,000 and they can get worse if they want to be hostile about it.” He concludes: The IRS controls the narrative. ‘We’re not going after crypto traders, we’re going after people that are violating the anti-money laundering laws’ … It’s implicitly ‘dirty,’ right? — to be caught for money laundering. Staying Safe Donnelly says his mission is to help people file what he calls a “bulletproof tax return,” as the penalties for simple mistakes and omissions can be so egregious, and so few tax advisors know how to help their clients when it comes to crypto. News.Bitcoin.com also regularly publishes articles on available tax tools and software which may make the job of reporting easier for bitcoiners. Of course, when dealing with unpredictable and potentially dangerous groups like the IRS, individuals should exercise due diligence and research thoroughly before pursuing any course of action. Not surprisingly, the permissionless, peer-to-peer money designed to fight financial censorship that is bitcoin, has fast become a prime target for the very groups of middlemen, banks, politicians and other third parties it makes largely unnecessary. What do you think of Donnelly’s views on crypto tax audits? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock, Cryptotaxaudit.com, fair use. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post How the IRS Audits Cryptocurrency Tax Returns – Filing Expert Shares Example, Insights on AML Focus appeared first on Bitcoin News. View the full article

Two recent flash loans on the defi platform Bzx have started a fierce debate about the subject of using uncollateralized loans in a quick trade. Essentially these flash loans are providing people with the ability to borrow crypto without relinquishing any collateral. The scheme was used to exploit funds from the Bzx platform twice, as an individual or group gathered around $954,000 in a matter of four days from well-executed flash loans. Also Read: Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor Flash Loans: Attack or Innovative Forms of Defi? Decentralized finance (defi) flash loans is a hot topic right now, after the lending platform Bzx saw $954,000 siphoned from two flash loans. The first one took place on February 14 and then another Bzx ‘attack’ occurred on February 18. The method of execution called a “flash loan” has been a contentious subject because people don’t necessarily agree that flash loans are an “attack,” “hack,” or “exploit,” because the scheme merely follows the rules of the said contract and loan system. A number of Ethereum proponents believe flash loans are useful and open up new avenues of decentralized finance. find the flash lenders: 👩🏻👩🏼👩🏽👩🏾👩🏿👩🏻👩🏼👩🏽👩🏾👩🏿 👨🏻👨🏼👨🏽👨🏾👨🏿👨🏻👨🏼👨🏽👨🏾👨🏿 👧🏻👧🏼👧🏽👧🏾👧🏿👧🏻👧🏼👧🏽👧🏾👧🏿 👦🏻👦🏼👦🏽👦🏾👦🏿👦🏻👦🏼👦🏽👦🏾👦🏿 can’t find them? that’s because they live among us, looking like normal people. the only real difference is they now have the access to whale-like liquidity. — stani.eth ’Flash Loans Maximalist’ Kulechov 👻 (@StaniKulechov) February 20, 2020 During the first big flash loan, the so-called hacker got 10,000 loaned ETH from the application Dydx and snagged 112 wrapped bitcoin (WBTC) from the defi protocol Compound. The individual then sent around 1,300 ETH to Bzx’s Fulcrum trading platform and then borrowed 5,637 ETH via Kyber’s Uniswap for around 51 WBTC. From here, that particular move caused significant slippage (the difference between the expected price of certain trades and the price of trade execution) within the market. After that, the individual made a profit from the 112 WBTC loan they first obtained from Compound and raked in roughly $318,000 in profit. This single transaction allowed the individual to easily pay back the 10,000 ETH from Dydx. 1/ WHAT WE KNOW SO FAR: There was a second attack. This attack was completely different from the first. This time it was an oracle manipulation attack, a modified version of the original exploit we worked closely with @samczsun to fix: https://t.co/lDcyDQf44i — bZx (@bzxHQ) February 18, 2020 Now as confusing as all that sounds, basically a flash loan is the ability to leverage uncollateralized defi capital in order to profit from a well-executed dex trade. The process is done very quickly and efficiently in order to curb the risk of losing funds during execution. The person performing a flash loan can use their assets to drop the price across markets in order to trigger defi apps with oracles to sell at the desired spot price. Defi apps like Bzx, Dydx, and Compound use price oracles to determine the prices across various decentralized exchanges (DEX) like Kyber’s Uniswap. Behind the scenes of a @MakerDAO collateral swap using @AaveAave Flash Loans, @UniswapExchange and @chainlink oracles 📸 @daveytea @RyanSAdams @econoar @nanexcool @EthereumMemes $LEND $LINK $ETH #Woah pic.twitter.com/NyKo1JHV6x — Jordan LG 👻 (@JordanLzG) February 20, 2020 The pricing information often has large discrepancies across exchanges, which allow for market anomalies like slippage and arbitrage. The speed of a flash loan’s execution is so fast because the loan, trade, settlement, and profits are executed simultaneously in a single transaction. The individual who performed the first massively sized flash loan against Bzx simply borrowed funds from the defi platform’s smart contract without any collateral and they were able to pay the loan back in a single transaction. Big discrepancies in the supply rate can cause massive slippage or the difference between the expected price of certain trades and the price of trade execution. Flash Loan Demos, Inflation and Deflation, and the Flavors of Flash Loans Following the two massive flash loans that took place on Bzx’s Fulcrum trading platform, the crypto community continues to debate the topic on social media and forums with great fervor. There has been deep analysis and studies done on the subject of flash loans and people debating about whether the acts are malicious. Moreover, some individuals have shown the public how simple it is to execute a flash loan using a defi platform and DEX. Flash loans are communism. Only rich ppl are allowed to manipulate markets — Joseph Delong (@josephdelong) February 18, 2020 On Twitter, Fiona Kobayashi showed crypto enthusiasts how she executed a small flash loan. In a single transaction, Kobayashi got a loan of ETH from the platform Aave with no collateral. She then exchanged it for BAT tokens on Uniswap and moved the BAT to Makerdao platform as collateral and withdrew ETH collateral from Maker. After that, Kobayashi repaid her loan on Aave and used Rosco Kalis’ revoke.cash platform to “revoke the original vault’s ERC allowances.” “Not sure why I ended up with an extra $4.70 worth of DAI, it was supposed to be a net neutral flash loan,” Kobayashi tweeted. Fiona Kobayashi’s flash loan can easily be noticed on a block explorer. The execution is done in a single transaction amongst different contracts, lending protocols, price oracles used, and decentralized exchanges that allow swift token trading. A few people think flash loans can cause inflation, similar to how central banks lower circulating supply and then they simply adjust rates. “Inflation happens, but so does deflation too, [the] Fed can lower circulating supply at any time and raise interest rates,” an individual remarked after the Bzx flash loan. “Flash loan exploit inflation is crazy,” another person tweeted on February 18. The reason people believe that flash loans could cause erratic inflation and deflation is because when a flash loan is executed, the profits are being taken from somewhere within the chain of events in the single transaction. Oracles are easily being gamed and developers may have to come up with new ideas to gather verifiable price data. Can someone flash loan attack ProgPoW? — eric.eth (@econoar) February 22, 2020 Emilio Frangella from the Aave Protocol wrote a blog post about the subject on February 12 and he said that flash loans were innovative. “Flash Loans have especially captured the attention of the defi crowd and we expect other defi protocols to follow our lead and implement their flavors of flash loans as well. Like any other building block of Ethereum composability, flash loans quickly allowed new creative ideas to become reality,” Frangella wrote. The Aave Protocol team member further added: Prime examples of this are Arbitragedao (a DAO with the goal to market make arbitrage opportunities by leveraging the flash loans) and the Maker Vault collateral swapper (which allows you to swap your collateral from ETH to BAT in one transaction). What do you think about flash loans in the crypto world? Let us know what you think about this topic in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Etherscan, Twitter, Fair Use, Bzx Fulcrum, and Pixabay. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Understanding Defi Flash Loans: Complex Attacks, Inflation and Composable Systems appeared first on Bitcoin News. View the full article

The company behind the privacy-oriented browser Brave has set out to convince regulators in the U.K. to end Google’s advertising monopoly in the digital space. In a filing with the country’s Competition and Markets Authority (CMA), Brave puts forward recommendations on how to “neutralize” the tech giant’s “unfair data advantage.” Also read: Google Executive From India Joins Coinbase as Chief Product Officer Failure to Enforce Data Protection Rules Enables Google’s Monopoly, Brave Warns In a submission filed with the CMA last week, Brave highlights what it views as gaps in the regulator’s “Online platforms and digital advertising” study. The company also argues that failing to enforce Europe’s rules under the General Data Protection Regulation (GDPR) enables Google’s monopoly in the online advertising market. The CMA, which is a non-ministerial government department responsible for preventing anti-competitive practices in the United Kingdom, published its interim report in 2019 with several consequent updates. The final report, part of a wider digital strategy aimed at addressing current challenges, should be published by July 2, 2020. The authority was accepting comments on its contents until Feb. 12. According to its preliminary findings, the digital advertising sector in the U.K. has grown massively, to around £13 billion (almost $17 billion), and is also quite concentrated. Google alone accounted for over 90% of all revenues earned from search advertising the previous year, with revenues of around £6 billion, while Facebook had almost half of all display advertising revenues, reaching more than £2 billion. Brave insists that a functional real-time bidding (RTB) market, where advertising is bought and sold per number of impressions, requires both internal and external data protection. The company notes that Google’s monopoly is based on its internal data free-for-all, or the use of personal data collected by its many platforms for its advertising business. The enforcement of GDPR is supposed to “neutralize Google’s unfair data advantage” and provide “functional separation” of Google’s businesses. Texts in the GDPR’s Article 5 postulate that “personal data shall be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes,” while its “integrity and confidentiality” should be ensured. Brave also calls for measures against the external data free-for-all between the participants in the RTB market, thousands of companies. Competition Authority Concerned About Tech Giants Undermining Publishers Brave’s pro-privacy browser has been designed to allow users to block ads and website trackers in ordure to offer them a faster and more private browsing experience. Within its attention-based rewards ecosystem, users are provided with an option to send cryptocurrency contributions in BAT, the platform’s proprietary Basic Attention Token, to support publishers and content creators. The company was founded by Brendan Eich, creator of Javascript and co-founder of Mozilla, who is now Brave’s chief executive officer. In its draft report, the U.K.’s Competition and Markets Authority remarks that while the services of platforms such as Google and Facebook appear to be free, consumers do pay for them indirectly by providing their attention and personal data, which is then used to sell digital advertising. The CMA is concerned about the negative consequences of their market position such as the lack of competition from potential rivals and proper choice for consumers. Higher prices for advertisers translating into more expensive goods and services can be another problem. Furthermore, the regulator points out that the ability of publishers to produce valuable content may be undermined by the tech giants squeezing their revenues and changing search and news algorithms. Do you agree with the concerns expressed by the CMA and Brave’s recommendations regarding the online advertising market? Share your thoughts on the subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock, Brave. Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card. The post Brave Challenges Google’s Advertising Power Before the UK Competition Watchdog appeared first on Bitcoin News. View the full article

The anticipation for the block reward halving for BTC, BCH, and BSV has been building. All three cryptocurrencies will see rewards halved from 12.5 to 6.25 coins throughout the months of April and May. The following is a comprehensive list of websites that are counting down each crypto’s reward halving in different ways, so people can monitor the data and prepare for halving parties. Also Read: How to Check the Bitcoin Price, Hashrate, Data – The 21 Best Monitoring Sites Clocks and Data Sites So You Can Monitor the 2020 Halving Countdowns The great halvings are approaching and in 2020 it will be the first time in history three SHA256 networks will see reward halvings around the same time. When Satoshi Nakamoto created Bitcoin he made it so the block mining reward halves every 210,000 blocks. When the network was first launched, miners got 50 BTC for every block they found and the rewards halved for the first time on November 28, 2012. Then another 210,000 blocks later on July 9, 2016, the BTC block reward halved again from 25 BTC to the current 12.5 BTC reward. From this point on and after the escalated scaling debate, there are now three powerful SHA256 networks (BTC, BCH, and BSV) that leverage the same consensus algorithm. All three of these networks have mining operations processing blocks from the three blockchains whenever one is more profitable than the other. Because of the network switching factor based on profitability, people are extremely curious about what will happen with all three SHA256 networks during the halving events. Just before the halvenings, crypto enthusiasts like to monitor the situation and plan ‘halving parties’ in order to celebrate the momentous occasion. For this reason, news.Bitcoin.com has listed popular halving countdown clocks and statistical sites that show all kinds of halving data so our readers can follow along with the reward countdown. BTC The BTC network is scheduled to halve every 210,000 blocks and this year will be around the first or second week of May. The block reward countdown clocks online are not exactly accurate and are a rough estimate of the timeframe. This is because the overall hashrate finds blocks at different speeds and the time to capture all 210,000 blocks can be done faster or slower than expected. For instance, blocks are typically processed every 10 minutes but that time frame can be quicker than 10 minutes or even longer than the traditional rate. Usually, the timeframe to process 210,000 blocks is roughly on or around a four-year period. Bitcoinblockhalf.com The website bitcoinblockhalf.com is a popular countdown clock for the BTC halving and the first site to come up on Google. The website was created in January 2015 and it shows a replica of an alarm clock ticking down until the halving date. Bitcoinblockhalf.com’s clock expects the halving to happen on or around May 12, 2020. The website also includes certain data points like the current number of BTC in circulation, percentage mined, number of coins left to mine, generated BTC per day, difficulty, inflation rates, and the current BTC hashrate. Bitcoin Halving – Brave New Coin The statistics on Brave New Coin’s halving page show a few different countdowns. There are actually four scenarios and countdowns for May 6, 9, and two different May 11 forecasts. “This page is dedicated to estimating the date and time of the next Bitcoin Block Reward Halving,” explains Brave New Coin’s stats page. “We have created four scenarios based on different block time metrics. Each scenario is a moving estimate and the timestamp, charts, and values shown on this page are re-calculated daily.” Users interested in monitoring the page get a different perspective than a simple countdown clock. Binance Academy – Bitcoin Halving Countdown Binance also has a statistical page dedicated to the BTC halving and the countdown from Binance Academy says 79 days until the halving. The stats page also shows the current block height, how many blocks are left until the halving, and the current BTC price. The site also gives people educational information on the halving by answering frequently asked questions like “What is a block halving?,” “Why are halvings significant?,” and “How many Bitcoin halvings have there been previously?” Bitcoinclock.com If you want to monitor the halving countdown using an old analog clock then bitcoinclock.com is the site for you. It shows an antiquated analog clock ticking down until the halving but everything is done in minutes. The website also explains what the halving is and how it happens every four years or so and it expects the 2020 halving to take place on May 8. Bitcoinclock.com also lists a number of articles that give resourceful information about previous halvings in 2012 and 2016. The website is much older than the bitcoinblockhalf.com website because it was created in 2011. Bitcoinclock.com also notes that online countdown clocks are not super accurate. “While most of the other sites estimate the halving for late-May, the more likely outcome is an early-May reward halving,” explains the website. BCH Coingecko – Bitcoin Cash Halving Bitcoin Cash is expected to halve before the BTC chain’s halving date and a few websites estimate it will be around one month prior. Coingecko offers a BCH countdown clock which estimates the halving will take place on Tuesday, April 7, 2020. This would be 45 days away with the current block height at 623,402. Coingecko’s BCH halving page is pretty straightforward with few frills or educational resources. The data from the site is powered by the block explorer Blockchair. Coinsalad – Bitcoin Cash Halving Coinsalad’s BCH halving countdown shows an alarm clock-like timer that expects the BCH network to halve on April 8, 2020, 7:14 am EDT. The webpage notes that BCH rewards halve every 210,000 blocks and BCH will see the reward slashed from 12.5 to 6.25 blocks after this date. Again, like many of the other countdown to the halving web pages, Coinsalad notes its clock is not entirely accurate. “This is a simple countdown timer that calculates the targeted halvening block height minus the current block height multiplied by the Bitcoin 10 minute block time interval (X – Y) * 10 * 60,” the page details. “This is an estimate and won’t be 100% accurate since not all Bitcoin blocks are found exactly in 10-minute intervals due to the time in between difficulty adjustments.” Bitcoincashblockhalf.com This webpage created on January 8, 2020, is identical to the bitcoinblockhalf.com website mentioned above but is dedicated to the Bitcoin Cash network instead. Similarly to Coingecko and Coinsalad, Bitcoincashblockhalf.com’s data shows the BCH halving is 45 days away and will be on or around April 8, 2020. Just like the website’s predecessor, it also contains data points that apply to the BCH halving like BCH in circulation, percentage mined, number of coins left to mine, generated BCH per day, and the network’s current hashrate. BSV Coingecko – Bitcoin SV Halving Bitcoin SV fans can find the halving date for BSV on a few different websites including Coingecko. Currently, Coingecko’s data which is also derived from Blockchair notes that the BSV halving will happen in 50 days or Sunday, April 12. “The number of Bitcoin SV found per block will become more scarce and this halving reward ensures that Bitcoin SV total supply will reach 21 million,” explains Coingecko. Again, the website does not include charts or any other educational information about the Bitcoin SV halving except for the countdown clock. Watch All Three Networks at the Same Time Blockchair – Bitcoin 2020 Halving Tools Bitcoin enthusiasts who want to see all the countdown clocks on one single page can reference the Blockchair website for stats on all three networks. Blockchair’s tools page on the 2020 halvings shows BTC (79 days), BCH (45 days), and BSV (47 days). The stats page also shows the current block and blocks remaining until the halving on each network. From each countdown window, users can toggle directly to each network’s block explorer for more data on these three networks. The term “bitcoin halving” has been trending on Google and the event has always been anticipated and watched by crypto supporters worldwide. For now, observers can only monitor the countdown and market prices leading up to the reward halvings and no one truly knows what will happen. That hasn’t stopped speculative theories and lots of discussions from forming about the halving subject which is at the forefront of a lot of people’s minds. What do you think about all the countdown clocks and monitoring tools available for the BTC, BCH, and BSV halvings? Let us know what you think about these applications in the comments below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Coingecko, Brave New Coin, Coinsalad, bitcoinblockhalf.com, bitcoincashblockhalf.com, Blockchair, Jamie Redman, Fair Use, and Pixabay. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor appeared first on Bitcoin News. View the full article

China’s Center for Information and Industry Development has published its latest crypto project ranking — the first this year. A total of 37 crypto projects, two more than in the previous ranking, were evaluated and ranked overall this month as well as in three separate categories. Also read: Bitcoin, Tesla Stock, Tron: How Warren Buffett Got His First Bitcoin The 16th Ranking, First This Year The Center for Information and Industry Development (CCID), under China’s Ministry of Industry and Information Technology, released its first crypto project ranking for the year on Friday. Prior to this, the last one was published in December, with 35 crypto projects ranked. This month, two more were added, bringing the total of ranked projects to 37. In addition to the overall ranking, the center evaluated the crypto projects based on their basic technology, applicability, and creativity. The ranking is updated every two months and this month is the 16th update. EOS remains top of the overall ranking, followed by Tron and then Ethereum. In December, Tron was in third place with Ethereum in second. This month, Bitcoin fell from the 9th place to the 11th place while Bitcoin Cash dropped from the 27th place to the 34th. Meanwhile, Nuls dropped from the 4th place to the 10th place, Bitshares from the 8th place to the 24th, Waves from the 12th to 22nd, Zilliqa from the 13th to 25th, and Tezos from the 26th to 33rd. Some projects improved such as Ripple which rose from the 18th place to the 13th and Cosmos from the 24th to the 14th. IOST and GXS Added Two additions to the list of projects ranked this month are IOST and GXS. The former describes itself as “an ultra-fast, decentralized blockchain network based on the next-generation consensus algorithm ‘Proof of Believability’ (PoB).” The latter, also called Gxchain, is “a fundamental blockchain for the global data economy, designed to build a trusted data internet of value,” according to its website. IOST debuted at number six in the overall ranking. Gxchain was previously ranked but was removed in the October update. It is now back at number seven in the overall ranking. In terms of the three sub-rankings, EOS scored the highest in the basic technology category, followed by Tron, IOST, GXS, and Steem. For the applicability category, Ethereum tops the ranking, followed by Tron, and Neo. For the creativity category, BTC scored much higher than the other projects. The second place is occupied by Ethereum, then Lisk, and EOS. The rankings are compiled by the CCID (Qingdao) Blockchain Research Institute, an entity established by the CCID. The evaluation work is carried out in collaboration with multiple organizations, such as the CCID think tank and the China Software Evaluation Center. “The result of this assessment will allow the CCID group to provide better technical consulting services for government agencies, business enterprises, research institutes, and technology developers,” the center previously explained. The CCID provides professional services to the government, including research, consulting, evaluation, certification, and research and development, its website details. In January, news.Bitcoin.com reported that the CCID released a report stating that there were more than 33,000 registered blockchain companies in December. What do you think of China’s new ranking? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock and the CCID. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Chinese Government-Backed Institute Releases New Ranking of 37 Crypto Projects appeared first on Bitcoin News. View the full article

Banking giant HSBC has unveiled a major restructuring plan that includes 35,000 job cuts. The move came as the bank’s net profit plunged 53% last year. HSBC is also slashing $100 billion in assets and closing many branches. “This represents one of the deepest restructuring and simplification programs in the bank’s history,” explained interim CEO Noel Quinn. Also read: Bitcoin, Tesla Stock, Tron: How Warren Buffett Got His First Bitcoin Major Layoffs and Restructuring at Hand One of the world’s largest banks, HSBC announced this week that it will be undergoing a major business overhaul. The London-based financial services company currently has 235,000 full-time employees across 64 countries and territories. According to reports, the bank plans to lay off around 35,000 workers over the next three years, reducing approximately 15% of its global workforce. Interim HSBC CEO Noel Quinn said during an earnings presentation: This represents one of the deepest restructuring and simplification programs in the bank’s history. As of Dec. 31, 2019, HSBC had $2.7 trillion in assets, more than 40 million customers and 197,000 shareholders in 130 countries and territories, its annual report details. Most of its customer accounts (35%) are in Hong Kong, followed by the U.K. (29%), other Asian countries (10%), and North America (10%). As part of its restructuring plan, HSBC will also ditch $100 billion in assets by the end of 2022 and shrink its investment banking division. Its global banking and markets team will focus more on Asia and the Middle East where the bank makes most of its profit. Since its U.S. operations have underperformed for years, a third of all HSBC branches in the U.S. will be shut down. Robert Sherman, a spokesperson for the bank’s U.S. operations, told NPR publication that about 80 U.S. branches will be closed this year but new branches will be opened on the West Coast to better serve the large Asian communities there. Shrinking Profit, Protests, Coronavirus The restructuring decision came after HSBC’s net profit fell 53% to $6 billion last year compared to the previous year. The banking industry worldwide has been suffering from a low interest rate environment, which hurt banks’ lending business. Brexit and ongoing protests in Hong Kong have additionally affected HSBC. In January, news.Bitcoin.com reported that the bank closed two branches in Hong Kong after new protests erupted. It also closed the account used to support protestors. HSBC’s interim CEO Noel Quinn The coronavirus outbreak which began in China has also hurt HSBC’s business since the bank derives the vast majority of its profit from Asia where the bulk of coronavirus cases have been reported. HSBC CFO Ewen Stevenson explained that the bank’s revenue will be more acutely impacted if the outbreak continues beyond the next month to six weeks. Nonetheless, Quinn clarified that the virus has not made mainland China, Hong Kong or Asia less attractive and the region remains HSBC’s core engine of growth over the next few years. Quinn was appointed interim CEO when John Flint stepped down in August after less than two years in the role. The virus outbreak has also affected the crypto industry. Hong Kong-based crypto exchange and remittance service provider Bitspark announced its decision to shut down early this month and several ASIC manufacturers have had to delay mining rig shipments. HSBC is not the only bank laying off workers worldwide. In December, news.Bitcoin.com reported that at least 75,700 jobs were being eliminated by major banks globally. With its latest layoff announcement, however, HSBC is cutting more jobs than all other banks so far, dethroning Deutsche Bank which plans to cut 18,000 jobs through 2022. What do you think of HSBC cutting 35,000 jobs and undergoing a major restructuring? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock and HSBC. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Major HSBC Layoffs: 35,000 Job Cuts and Massive Restructuring Announced appeared first on Bitcoin News. View the full article

During the first week of February, a few of the top mining rig manufacturers from China revealed they were forced to postpone device shipments due to the ongoing coronavirus outbreak. Regional reports from the country now disclose that shipments will be delayed even longer and Chinese mining rig companies and second-market suppliers are feeling significant stress from the situation. Also read: Hong Kong Crypto Exchange Bitspark Shuts Down Amid Coronavirus Outbreak and Protests Coronavirus Continues to Delay Mining Rig Shipments The coronavirus outbreak has been a trending topic worldwide, as the virus has spread since it was first identified in Wuhan, the capital of Hubei province, China. More recently the virus has been affecting the bitcoin industry because a large number of businesses and mining operations stem from China. At the end of January, Microbt announced that miner shipments would be delayed due to the coronavirus outbreak. The mining rig manufacturers Canaan and Bitmain also issued similar notices. On February 1, Ebang published a post on Wechat that notified customers about a delay as well. Weeks later and after the delay dates were supposed to be lifted, reports detail that mining rig manufacturers and suppliers are still being held up by coronavirus shipping delays. Estimates say more than 65% of the global SHA256 hashrate stems from China. On February 14, 8btc’s Vincent He interviewed a mining equipment vendor from Huaqiang North, a large distribution center for mining rigs. Miss Hu told the columnist “After waiting for a long time for bitcoin halving, my store couldn’t open.” The vendor explained that delays were issued twice already and she doesn’t know “if there will be any changes.” Even the aftermath may affect her sales as she believes newcomers might not visit the store over the risk of infection. Additionally, 8btc discussed the subject with Bitmain’s sales director Xiaojun Fan who stressed deliveries are still delayed. Fan noted that employees are unable to get back to work because of the coronavirus quarantine controls which in turn are affecting the mining rig supply chain. Delays were supposed to be lifted between February 8-9th, but the delays were extended. Will the Coronavirus Affect the Overall Hashrate and Upcoming Bitcoin Halving? Moreover, Btc.top founder Jiang Zhuoer discussed the coronavirus outbreak affecting mining operations on Weibo. “It is understandable to take our employees’ temperatures, call the roll and forbid them to go out, but how does shutting down mining machines help in quarantine controls? If we go on like this, most of the people (especially the laboring people in the front line) will have to die of poverty without suffering from the virus,” Zhuoer said. The comment came after one of his mining farms in Xinjiang was forced to shut down temporarily. BTC global hashrate on February 19, 2020. It is estimated that 65% of the global SHA256 hashrate resides in China and some speculators believe BTC’s recent difficulty adjustment dropped because of the coronavirus quarantine controls. BTC’s hashrate was averaging around 110 exahash per second (EH/s) all the way until February 15 but the hashpower dropped to around 97 EH/s on February 19. Because it hasn’t dropped too much, people assume there’s a possibility miners outside of China are carrying the weight. The delay is awfully close to the reward halving as well on chains like BTC, BCH, and BSV. As of today, there are 80 days left until BTC’s halving takes place and BCH and BSV will see halvings one month prior. Additionally, 8btc’s recent report highlights that if the epidemic gets worse mining operations located in Xinjiang, Inner Mongolia, Sichuan, and Yunnan could “suffer [from] losses.” At press time, next-generation miners like the T and S 17 series manufactured by Bitmain are scheduled to ship during the first week of April. What do you think about the coronavirus affecting the bitcoin mining industry and mining rig supply chain? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Twitter, Wiki Commons, Fair Use, BBC, and Pixabay. Do you want to maximize your Bitcoin Mining potential? Plug your own hardware into the world’s most profitable Bitcoin mining pool or get started without having to own hardware through one of our competitive Bitcoin cloud mining contracts. The post Coronavirus Quarantine Controls and Shipping Delays Impact Bitcoin Miners appeared first on Bitcoin News. View the full article

Bitcoin Cash House Ghana has announced they’ve found a liquidity provider for converting between BCH and Ghanaian cedi, and are now preparing to furnish their building and move in, preparing for official launch on March 1. A new read.cash post from organizer Kousha detailed the status of the project and also initiated a small fundraiser for internet setup which has already surpassed its goal as of Tuesday. BCH House Ghana was inspired by the already operational BCH House Venezuela. Also Read: Grassroots Bitcoin Cash House Movement Expands to Ghana Cash House Movement Grows Though not officially affiliated with BCH House Venezuela, the Ghana group’s implementation of the concept wanted to use the same name as a show of solidarity and community with the first version, and both have received support from Bitcoin.com. The project is free and decentralized, as concept creator Roberto Garcia notes in BCH House Venezuela’s recent update, which encourages anyone with the will to open their own local office to reach out for assistance and do so. BCH House Venezuela has been active since November last year. Kousha, ambassador for the Ghana project, is located in Heidelberg, Germany, and is working with “man on the ground” Mohammed Mustapha Yakubum, who can be seen posing with the BCH House Ghana signboard in this article’s featured picture. The goals listed in Kousha’s update post on the crypto hub are four-fold: tutoring payment partners, “creating and listing cashaccounts for merchants based on location,” designing a website and map for customers on bchghana.org, and “Hosting a meetup to celebrate the official start of operations,” which is set for March 1. BCH to Facilitate Remittances in West Africa “Mobile Money Services flourishing in Ghana,” a picture caption in the post reads, “However, BCH is still cheaper and easier to utilize.” Payment partners signing up with the BCH House will be able to handle remittances for customers in cheaper fashion by utilizing bitcoin cash. Kousha writes: These partners, providing a very similar product as mobile money services, will remit customer money easier, safer and still cheaper than the usual services. Internet Costs Covered by BCH Tips, Locals Already Expressing Interest In his read.cash update the ambassador details: The house is painted and the BCH sign is installed and already attracting people, who are interested in investing in BCH. It’s a good sign (no pun intended), that there are already people out there, who don’t have to be convinced to open up to cryptocurrencies or Bitcoin Cash. And we are their perfect contact to get started right away. Kousha goes on to note that while he will pay for some necessities like tables and chairs, BCH House Ghana must have their internet set up “In order for the attendees of the upcoming BCH House ‘opening’ meetup to be able to receive their first Bitcoin Cash, USDH or Lead transaction,” and that “we want to have the Wifi installed until the end of February.” He clarifies that the tips for the article will go toward the internet connection, which costs $75 for one year. The article at time of writing has already garnered over $250 in tips. Safarri Project Those that tipped toward the internet fund are to receive BCH House Ghana’s own SLP token as a reward, and Kousha affirms he is planning on using the dividends function to reward supporters down the road should the project be successful. “At first these tokens may not mean much more than an honoring badge,” the organizer explains, “But based on how big our project gets over time, we will find a way to reimburse your active support, when it was needed the most, in future funding campaigns and SLP dividends.” The token is to be minted at the end of the fundraising period on February 21, and is part of the larger vision for what the initiative calls the Safarri Project, which will equip payment partners in the money changing business to act as remittance services via BCH. Information about these partners will be included in the next read.cash update, according to the BCH House Ghana ambassador, and those looking to keep abreast of the latest info can also join the official Telegram group. eatbch.org Anybody Can Start a BCH Project The permissionless and decentralized nature of bitcoin cash allows for anyone with a cause to freely take action. Like the BCH House crypto resource hubs, BCH charities have also been started in diverse locations with no official connection to one another, but with the same overarching goal of bringing more economic freedom to the world. Charity initiative Eatbch, for example, is located in both Venezuela and South Sudan, though the groups are independently operated. Eatbch leverages bitcoin cash to feed impoverished communities and is a grassroots project, not dependent on regulators or politicians to function. Since BCH is a borderless money with negligible transaction fees, anyone with an idea and the resolve to get started can do so. What do you think about the developments at BCH House Ghana? Let us know in the comments section below. Images courtesy of Shutterstock, BCH House Ghana, Eatbch, fair use. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Bitcoin Cash House Ghana Finds Liquidity Provider, Seeks to Partner With Mobile Money Services appeared first on Bitcoin News. View the full article

Banco Central do Brasil has started testing a new payment network with the promise to offer Brazilians near instant transactions and many new services. Portrayed as a response to Bitcoin, the Pix system will be mandatory for major financial institutions to ensure wide coverage. The project aims to limit the use of paper money and plastic cards to reduce the costs of the national financial system. Also read: Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Out of Business Pix to Transfer Money Between Users Within Seconds Brazil’s new electronic payment system was officially launched during an event at the BCB headquarters in Brasília on Wednesday, Feb. 19. Pix was initially announced in the spring of 2019 but its name was revealed last week by the central bank’s president Roberto Campos Neto who shared details about the system. During an interview with the Brazilian TV channel Globo News, Campos Neto explained: Instant payment means that you will be able to pay between one person and another, 24 hours a day, seven days a week. The money will be transferred immediately to the recipient’s account, the banker emphasized. The system will operate automatically through an application that will also support QR code scanning. Brazilians will be able to use it to pay government fees as well thanks to the participation of the National Treasury. Tests began with the launch and will continue throughout the next nine months. Officials hope to open the network to the public on Nov. 16, Portal do Bitcoin reported. Mass adoption is a target for 2021. According to preliminary estimates, the time Pix is going to need to process a transaction should be less than 10 seconds. However, most financial transfers through the Brazilian instant payment system are expected to occur much faster, within around two seconds, according to the BCB Financial System Director João Manoel Pinho de Mello. The instant payment system developed by the Central Bank of Brazil comes as an institutional response to the challenges presented by decentralized cryptocurrencies. “This is one of the most important projects that we have this year. The world demands a payment instrument that is cheap, fast, transparent and secure,” commented the bank’s president. “If we think in terms of bitcoin and cryptocurrencies, they are born out of these needs, these characteristics. And Pix is our answer to these systems,” Campos Neto noted. Major Banks and Payment Processors Obliged to Join In In order to achieve compliance and wide coverage, BCB has decided to impose mandatory participation in Pix for all major banks as well as other financial and payment processing institutions that have over 500,000 accounts. Around 30 organizations managing more than 90% of all active accounts in Brazil will be integrated, including the country’s five major banks, Bradesco, Itaú, Banco do Brasil, Caixa Econômica Federal, and Santander, and the digital banks Inter, Original and Nubank. Institutions that are not authorized by the Central Bank, such as cryptocurrency exchanges, may be allowed to join Pix “indirectly.” Under current regulations, digital asset trading platforms are not considered financial or payment institutions in the traditional sense. Brazil is yet to adopt dedicated legislation for the crypto space and their activities are still regulated only under a ‘normative instruction’ issued by Secretaria da Receita Federal do Brasil, the country’s revenue service. As news.Bitcoin.com reported, three crypto bills are still under deliberation in the National Congress. Banco Central do Brasil has gradually softened its position on cryptocurrencies and the industry built around them. A couple of years ago, under its former president Ilan Goldfajn, the Brazilian monetary authority initially viewed decentralized digital assets as a “typical bubble” and a “pyramid.” Later, Goldfajn toned down the criticism and described bitcoin as merely a “risky asset.” His successor, Campos Neto, vowed to leave space for the advancement of new financial technologies and prepare the central bank for the accelerated transformations that will form the future market. Along with Pix, Open Banking is another initiative launched by his administration. It envisages deeper integration between traditional banks and fintech platforms. Do you expect Pix to become a successful instant payment system? Share your thoughts on the subject in the comments section below. Images courtesy of Shutterstock. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post In Response to Bitcoin, Central Bank of Brazil Presents Instant Payment System Pix appeared first on Bitcoin News. View the full article

On February 19, a group of well known software developers announced the launch of a new Bitcoin Cash full node with the Infrastructure Funding Plan (IFP) removed from the codebase. The news was announced on the read.cash platform by the developer Freetrader who told the public that strong demand from businesses, miners, mining pools, and developers invoked the team to create a “minimally-altered client based on Bitcoin ABC.” Also Read: BCH Funding Debate: Btc.top Founder Suggests 2/3 Hash Vote and 6-Month Evaluation Developers Announce a Bitcoin ABC Node Is in the Works With the Infrastructure Funding Plan Stripped from the Code The last week in Bitcoin Cash land has been filled with a lot of arguments and debate over the Infrastructure Funding Plan’s (IFP) latest developments. Just recently news.Bitcoin.com reported on the Bitcoin ABC team announcing they would add code for the IFP to the ABC version 0.21.0 client. The code was released on February 18 and included a few other features as well. Bitcoin ABC 0.21.0 release for 2020 May 15 upgrade is here!https://t.co/1C6zNZpYRl Includes improved SigOps counting, OP_REVERSEBYTES, bump tx chain limit from 25 to 50 and support for the infra funding plan. Release notes: https://t.co/QZVFgS7bAr — Bitcoin ABC (@Bitcoin_ABC) February 18, 2020 After the latest ABC client published, a group of programmers revealed the creation of a “minimally-altered client based on Bitcoin ABC.” The announcement was written by one of the earliest developers within the BCH ecosystem, Freetrader, and he explained that “prominent Bitcoin businesses, miners, mining pools, and developers” requested the alternative implementation. “The only difference between the new client and ABC v0.21.0 is the removal of the coinbase reward diversion code and its associated signaling and activation,” Freetrader explained. “The primary goal of this initiative is to provide a safe and professional node implementation that will neutrally follow the longest chain without contributing to the risk of a chain split,” wrote Freetrader. “The client is called Bitcoin Cash Node (BCH Node) and will function as a drop-in replacement for miners and businesses already running the ABC client.” The BCH Node Developers Are Speaking With Exchanges, Miners, and Mining Pools The developers who are contributing to the project include well known BCH devs like Andrea Suisani (Sickpig) of Bitcoin Unlimited, Calin Culianu (Nilacthegrim) of Electron Cash, Dagur V. Johannsson, Emergent Reasons, Fernando Pelliccioni of Knuth Node, Freetrader formerly of Bitcoin ABC, Imaginary Username, Jt Freeman of fountainhead.cash, Jonathan Silverblood, Joshua Green of Bitcoin Verde, Mark Lundeberg, and Tom Zander of Flowee the Hub. Every developer on the list also left their PGP signature, to make it known that their identities are really involved with the new node project. Miners wishing to vote against the IFP now have a drop-in replacement for ABC while still remaining compatible for the May Upgrade. https://t.co/XSViTdeovW — Joshua Green (@joshmgreen) February 20, 2020 According to Freetrader, the team is actively in discussions with exchanges, miners, and mining pools that are interested in the initiative. The developers have created a number of communication channels and the team says the code for the software will be available soon. Additionally, “a more detailed near-term plan” will follow the software release. If you are here for 10x, then do whatever you want with your block reward. If you are here for 1000x and something with even a chance of standing shoulder to shoulder with digital fiat, don’t even think about touching the block reward. — emergent_reasons#100🌵 (@EmergentReasons) February 19, 2020 The Bitcoin Cash Node (BCH Node) topic has been trending on Twitter among BCH proponents and there are multiple threads on the Reddit forum r/btc as well. The Bitcoin ABC camp has released the ABC version 0.21.0 client and a blog post that explains the “May 15th, 2020 protocol upgrade is locked in.” At the time of publication, there are roughly 1,435 publicly accessible BCH nodes and more than half of them support Bitcoin ABC (51.52%) and the lesser half supports the BU client (46.73%). Currently, only a small number of full nodes run BCHD, Flowee or other BCH clients. During the early morning hours on February 20, news.Bitcoin.com spoke with the developer Emergent Reasons and asked him why Freetrader and the group of other devs were doing this. “What brings everyone together on Bitcoin Cash Node is a practical desire to unite the BCH ecosystem and avoid a very damaging split,” Emergent Reasons told our newsdesk. “Even though Jiang Zhuoer, the original author of the IFP, has said that he will mine against the IFP for May, BCH is still at risk of activation by hostile pools. If it is activated, there is a high chance of a soft fork hash war and possibly a persistent chain split. Based on recent evidence, we expect that the result would be an exodus of talent from BCH due to loss of network effect, perceived loss of moral high ground and other reasons. Especially the loss of network effect could cause permanent damage to the viability of P2P electronic cash.” Emergent Reasons further added: Bitcoin Cash Node removes the activation and IFP code so that BCH can, as suggested by Jiang Zhuoer in his most recent update, have time to develop and pursue voluntary methods. The silver lining of the conflict is that it has renewed interest in accountability, communication, transparency and using BCH-based technology to achieve voluntary funding. Additionally, Freetrader published a read.cash post a few days prior, that explains the perspective of those who are working on the IFP-free ABC node. Freetrader’s post highlights that he has strong objections to the current plan, but he wholeheartedly believes the community at large has “numerous objections” that need to be heard too. The developer thinks the community could reach an agreement and it “seems possible” from his perspective. “Let’s try to construct a better path together – one which lets all future participants in the system enjoy the same economic freedoms that we have enjoyed in Bitcoin before, and Bitcoin Cash since 2017,” Freetrader conceded at the end of his post. In addition to the follow up post, the Asicseer.com pool has pledged 100 BCH toward the BCH Node effort. Moreover, an alternative website for bitcoincash.org is being created, the developer Pokkst disclosed on the Reddit forum r/btc. If you want to read Freetrader’s posts in their entirety then you can check out the announcement here and also the post he wrote three days prior. The IFP debate and discussion is continuing to unfold and news.Bitcoin.com will be there to inform our readers every step of the way. What do you think about the discussions revolving around the IFP subject? Let us know what you think about this topic in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Coin Dance, Twitter, Bitcoin.com, Fair Use, Read.cash, and Pixabay. Do you want to maximize your Bitcoin Mining potential? Plug your own hardware into the world’s most profitable Bitcoin mining pool or get started without having to own hardware through one of our competitive Bitcoin cloud mining contracts. The post BCH Funding Debate: Developers Plan to Launch IFP-Free Version of Bitcoin ABC appeared first on Bitcoin News. View the full article

Ireland’s Criminal Assets Bureau (CAB) seized 6,000 BTC from a Dublin resident who was accused of growing cannabis on property located in the Wicklow Mountain region. The police found around €450,000 of marijuana plants but the €52 million ($56.1M) of BTC was the biggest single-value asset seizure by the CAB since 1996. Also read: US Government Auctioning off Bitcoins Worth $37 Million in 2 Weeks **This article has been updated at 3:28 p.m. ET. An earlier version of this article stated that the 6,000 BTC had to be held for a seven-year period. This article has been updated to reflect a regional report that highlights Collins’ consent to the seizure removed the need for the CAB to wait for seven years.** Ireland’s Criminal Assets Bureau Seizes 6,000 BTC Worth $56M Three years ago during a Garda Síochána (police) inquiry, a man named Clifton Collins got caught driving his 4×4 with a small stash of cannabis. Collins lived in Crumlin and the police found that he had around €450,000 ($486k) worth of marijuana growing at a property in Corr na Móna in Co Galway. The officers also found the 49-year-old had a stash of around 6,000 BTC ($56.1M) and the police believe Collins invested his drug money into the crypto. Because the asset was so large in value, the police called in the CAB and they took over the remainder of the investigation. Regional reports in Ireland note that the seizure was the largest single-value asset ever taken by the CAB in 24 years. During a Garda Síochána (police) inquiry about a large marijuana grow, police arrested Clifton Collins who had €450,000 ($486k) worth of cannabis growing on a property in the Wicklow Mountain region. Collins also held 6,000 BTC, which was then handed over to the CAB. It took a while to get the ball rolling but by July 2019, prosecutors allowed the CAB to secure a temporary forfeiture order on the bitcoins under the Proceeds of Crime Act. The Irish Statutes Book details that law enforcement officials can take possession of the specified property if they were used directly or indirectly with the proceeds of crime. Collins went before the High Court and Justice Alex Owens ruled that the BTC was in fact proceeds of crime. The forfeited assets Owens said did fall under the Proceeds of Crime Act. Collins and his legal team did not object to the CAB’s appropriation of the funds and under the legislation. The 6,000 BTC captured is the largest haul for the CAB since 1996. A Significant Sum of Circulating Bitcoins Have Been Auctioned by Governments In nearly every crypto seizure throughout countries in Europe or in the U.S., law enforcement have auctioned the digital currencies quickly. The U.S. Marshals Service (USMS) has auctioned thousands of bitcoins since 2014 and the agency just sold 4,040 BTC on February 18. In September 2019, the U.K.’s Eastern Region Special Operations Unit (ERSOU) auctioned roughly $300,000 worth of cryptos confiscated from illegal proceeds. The U.S. Department of Justice (DOJ) and the Department of Treasury have disclosed that officers have seized over 22 different cryptocurrencies throughout numerous investigations. In 2018, there were rumors floating around that Bulgaria’s government was hoarding 213,000 BTC from a criminal case. Headlines reported that the country held the second-largest amount of BTC in the world. However, local reports from Bulgaria reported that the information was false and the Bulgarian government had auctioned off the entire haul. Bulgaria’s finance minister, Vladislav Goranov, explained the sale did indeed take place. Goranov revealed that the BTC lots were auctioned to “several sovereign wealth funds and Asian investors.” He also noted that crypto experts from the U.S. Federal Bureau of Investigation (FBI) helped ensure the transactions were secure. Ireland’s Criminal Assets Bureau’s 6,000 BTC haul will likely be the longest holding period for a government agency that has seized crypto from criminal investigations. In the last few years, CAB has dealt with a small number of crypto seizures but nothing as large as Collins’ stash. What do you think about Ireland’s Criminal Assets Bureau’s (CAB) recent seizure of 6,000 BTC? Let us know what you think about this topic in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, Fair Use, Wiki Commons, and Pixabay. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Ireland Seizes Bitcoin Stash Worth $56M in Criminal Forfeiture Ruling appeared first on Bitcoin News. View the full article

Virgin Galactic is one of the leading ventures in the emerging private space race alongside companies such as Spacex. However, it is being compared now mostly to another Elon Musk creation – Tesla. This is because Virgin Galactic stock is skyrocketing as traders rush in to bet on the futuristic promise of space tourism. Its founder, the famous entrepreneur Richard Branson, announced that the company already accepted bitcoin for space flight tickets back in 2013. Also Read: NASA to Launch Bitcoin to the Moon? Space Agency Seeks Crypto Experience Virgin Galactic Stock Is Skyrocketing Virgin Galactic, the space arm of Richard Branson’s empire, has been on a crazy rally recently. The company’s stock (NYSE: SPCE) jumped over 23% on Wednesday, closing at a new record high price of $37.35 after its best day of trading ever. In total, the Virgin Galactic stock has increased in value by a whopping 298% over the last three months. The forces that are considered to be driving this amazing rally are a new fascination by retail investors and a rush of speculative options traders on the Virgin Galactic stock. These two groups have sent trading volumes soaring and the price followed, eliciting comparisons to the Tesla stock rally that was fueled by similar forces. Virgin Galactic billboard on the New York Stock Exchange (NYSE) building The Virgin Galactic stock was priced at just $11.75 after it started trading on the New York Stock Exchange on October 28, 2019, making it the first ever publicly listed human spaceflight company. In November it released its financial results for its third quarter of fiscal year 2019, showing it had net proceeds of over $430 million, which Virgin Galactic intends to use to fund its operations. The company also reported it received customer reservations from more than 600 people in 60 countries, representing approximately $80 million in total collected deposits, and over $120 million of potential revenue. Will Take Bitcoin to Shoot You Into Space Virgin Galactic is in a very futuristic line of business, so it makes sense it would adopt cryptocurrency to give it an image as such. And most of the people who have joined the scene early and made a fortune from crypto are tech-minded people, the perfect fit for the company’s would-be-astronaut clients. This is probably why the company’s founder announced years ago that they already had a client that paid with bitcoin. On November 22, 2013, Branson stated that: “Bitcoin, the virtual currency, has really captured the imagination recently as one of the world’s most innovative businesses looking to the future. So we think it is about time Virgin Galactic customers can choose to pay with bitcoins. One future astronaut, a female flight attendant from Hawaii, has already purchased her Virgin Galactic ticket using bitcoins, and we expect many more to follow in her footsteps. All of our future astronauts are pioneers in their own right, and this is one more way to be forward-thinking.” The famous serial entrepreneur also added that: “I have invested in some bitcoins myself, and find it fascinating how a whole new global currency has been created. For people who can afford to invest a little in bitcoins, it’s worth looking into.” Since 2013 Branson has expanded his interests and reach within the cryptocurrency world, among other things hosting an annual Blockchain Summit for industry luminaries on his private island. Virgin Galactic’s White Knight Two spaceship landing in El Paso, Texas Other space ventures have also adopted cryptocurrencies for payments in recent years. For example, in December 2018 we reported on Orion Span, a project that has plans to launch a space station that will be used as a luxury hotel, where a 12-night stay on the craft will set you back $9.5 million. The project accepts a few cryptocurrencies including bitcoin cash (BCH) and BTC. Also, the founder of the rocket company Spacex, Elon Musk, is fascinated with Bitcoin so you might be able to pay for a trip to Mars with crypto one day. Finally, if you can’t afford any of these options, at least your crypto knowledge could someday get you a job with NASA. What do you think about Virgin Galactic and its connection to the cryptocurrency world? Share your thoughts 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 Bitcoin.com Markets, another original and free service from Bitcoin.com. The post Virgin Galactic Stock Is Skyrocketing, Will Take Bitcoin to Shoot You Into Space appeared first on Bitcoin News. View the full article

For news, gossip, FUD, FOMO, charts, bots, and project updates, crypto Telegram is where it’s at. The beating heart of the crypto community resides in Pavel Durov’s encrypted messenger application. Accessing Telegram is easy, but optimizing your experience to get the most out of the platform calls for a few do’s and don’ts. Here are eight tips to get you started. Also read: 10 of the Best Telegram Crypto Channels Do Telegram the Right Way Like the other CT (crypto Twitter), crypto Telegram encapsulates the best and worst elements of the industry. From the lowest scammers to the highest grade projects, it’s all here if you know where to look. Much like the crypto markets, however, failure to master crypto Telegram comes at a high cost. Here’s how to up your opsec, enhance your learning, and extract the most value from the industry’s favorite messenger platform. Lock Down Your Account If you haven’t already, go to “Privacy and Security” in Telegram’s Settings menu. Your phone number should be set as visible only to “My Contacts” or better still “Nobody.” If it’s set to “Everybody” you’re increasing your chances of being SIM swapped. While you’re in the Settings menu, there’s a few more options you should run through, the most important being “Two-Step Verification.” Unfortunately Telegram doesn’t offer 2FA, but it does allow you to set up an account password that will prevent anyone getting into your account, even if they’re able to swap your SIM. Getting a stolen Telegram account returned to its rightful owner is harder than it is with Twitter, so it pays to lock it down. Finally, set “Groups” so that only your contacts can add you to Telegram groups. Set it to “Everybody” and you’re prone to being added to spammy crypto groups by randoms. Keep It Secret If you need to discuss sensitive information with a Telegram contact, select “New Secret Chat.” All messages are stored solely on the sender and recipient’s device – not in the cloud. That’s why if you start a secret chat on your smartphone, you can’t view the conversation when you access Telegram Web on your desktop. For added security, secret chats don’t allow message forwarding and have a self-destruct timer, after which the conversation will be deleted. Signal is regarded as the most private encrypted messaging app, but for most confidential conversations, Telegram secret chat is fine. What’s in a Name? Impostors touting “ETH giveaways” and other low-level scams are more commonly found on Twitter, but Telegram is not immune. Be cautious of anyone who direct messages you on Telegram claiming to be the admin of a group you’re in, offering you discounted tokens OTC and similar deals. Similarly, don’t assume that a particular Telegram handle corresponds with the same personality on Twitter. You’re probably not going to be messaged by Satoshi Nakamoto or Nick Szabo on Telegram, so be highly skeptical of anyone purporting to be a known crypto influencer unless their username can be verified, such as by cross-referencing it with their Twitter bio. Pin Popular Groups, Archive Noisy Ones You can pin up to three groups to the top of your Telegram app for convenience. Just hold down the group name for a second and then push the pin icon that appears at the top of the page. Popular Telegram channels are alive with chatter, memes, and gossip – a little too alive at times. For fast-moving channels that provide more noise than signal, swipe left on them from the homescreen and they’ll be archived. You can still access them whenever you want to dive back in by clicking the “Archived Chats” button at the top of the page. Use ‘Saved Messages’ as Your Clipboard Telegram has a “Saved Messages” private channel where you can forward messages you want to store for future reference. It’s also handy as a general purpose clipboard for images and text when jumping between devices. If you need to access a mobile wallet address on your desktop, for instance, you can paste it into saved messages and retrieve it from Telegram Web on your laptop. Just remember to periodically clean your saved messages of sensitive data. For cryptocurrency transactions where privacy is paramount, avoid pasting addresses into Saved Messages altogether. Pick Your Stickers Carefully The best thing about crypto Telegram is the sticker packs of course. The bull market ones; the bear market ones; the Bogdanovs; the Wojaks and all the rest. While most of your stickers can be shared in most of the groups you use, there will be certain channels where pocket-sending a rude Pepe sticker can be the difference between keeping and losing your job. Unfortunately, there’s no ability to bar particular sticker packs from particular groups. Be careful which packs you install and deploy, therefore. For the ultra-cautious, Telegram will allow you to run multiple accounts from a single installation of the mobile app. The Blockstream NPC sticker pack Pick Your Groups Carefully This final piece of advice is a subjective one, since the Telegram groups and channels you join are dependent on your interests. News.Bitcoin.com has previously suggested a few of the better groups, but you’ll have your own favorites. If you find you’re not getting much value out of the channels you’re in, archive them or leave altogether. Telegram is your feed, after all, tailored just the way you like it. Like an altcoin you’ve fallen out of love with, don’t be afraid to dump channels that no longer give you that warm glow. Life’s too short for mediocre chat and bad memes. What other tips do you recommend for getting the most out of Telegram? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post 8 Tips for Getting the Most out of Crypto Telegram appeared first on Bitcoin News. View the full article

With the rising price and popularity of bitcoin come numerous scams. Bitcoin Superstar and Bitcoin Era are two investment schemes that have recently gained much attention. News.Bitcoin.com took a look at them, and it did not take much to spot how similar they are to each other and several other well-known scams. Also read: Bitcoin, Tesla Stock, Tron: How Warren Buffett Got His First Bitcoin Bitcoin Superstar vs Bitcoin Era – Same Template, Different Names Bitcoin Superstar and Bitcoin Era are currently two of the most popular bitcoin investment schemes, but it does not take long to spot how scammy their websites are. For a start, they both have the same cookie-cutter template. They both display a warning in red at the top stating that “Due to extremely high media demand, we will close registration as of 19/02/2020 – Hurry.” Such urgency and scarcity tactics have long been used to pressure people into buying many products. The Bitcoin Superstar website (left) and the Bitcoin Era website (right) using the same cookie-cutter template. Next comes the hype. Both the Bitcoin Superstar and the Bitcoin Era websites display numerous hype phrases, such as “Bitcoin is making people rich,” “you can become the next millionaire,” and “change your life today.” Both schemes also feature the same video, starting with CNN coverage, followed by well-known people including Richard Branson, speaking positively about bitcoin. To gain more credibility, the two sites additionally display logos of Bitgo, Norton, Secure Trading, and McAfee, with “As seen on” CNN, FT.com, Time, and Forbes. Bitcoin Superstar describes itself as a group of “people who jumped on the insane returns that bitcoin offers,” emphasizing that its members “make money on their laptop with just a few minutes of ‘work’ every day.” Bitcoin Era posted a similar message, with a focus on its trading software. “With the Bitcoin Era software, you can take advantage of the profit potential in the bitcoin and cryptocurrency markets,” its website describes. The Fake Testimonials How can one sell a scam without glowing testimonials? The next section of both the Bitcoin Superstar and the Bitcoin Era websites showcases the supposed testimonials of their successful traders. At the time of this writing, Bitcoin Superstar displays “Real testemonials from our users,” with the word testimonials misspelled. Both websites use the same four people’s images but change their names, locations, and the amount of profit they made. The testimonials on Bitcoin Superstar (top) and the testimonials on Bitcoin Era (bottom). The four user images can be found on many other websites. For example, the picture of the first user (Mark K. from Forth Worth, TX, on Bitcoin Superstar, who is also James H. from San Antonio, TX, on Bitcoin Era) can be downloaded from free stock photo website Pexels.com. Mark K. on Bitcoin Superstar (aka James H. on Bitcoin Era) whose image can be downloaded freely from Pexels.com. The Same Cookie-Cutter Template Used by Many Scams Bitcoin Superstar and Bitcoin Era are not the only ones using the same cookie-cutter template. These scams will keep appearing as long as there are people willing to shell out money to join them. Scamcryptorobots.com has named plenty more scams that are using the same website format. Among them are Bitcoin Investor, Bitcoin Revolution, Bitcoin Trader, Bitcoin Evolution, Bitcoin Formula, Bitcoin Secret, Crypto Revolt, Bitcoin Rush, and Crypto Xchange. The website also mentions another viral scam called Bitcoin Billionaire and notes that the first scam of this format was Bitcoin Trader. Examples of scams using the same cookie-cutter template Bitcoin Era, Bitcoin Superstar, and Bitcoin Trader use. Source: Scamcryptorobots.com. Over time, some of these websites may have changed their appearance. Bitcoin Era, for example, has put up another website with the same logo. There have also been several Bitcoin Era press releases published on some crypto news websites. Another Bitcoin Era website. The Scamcryptorobots website also notes that there are fake reviews and fake news stories for these scams. In addition to warning about three bitcoin scams, including Bitcoin Code and Bitcoin Trader, news.Bitcoin.com has outlined how to spot scams like Bitcoin Doubler Club, Cryptomia247, Mining Cheap, Orelex Financial Services, and Wintrust Expert Options. $250 Upfront Investment, €13,000 in 24 Hours Guaranteed It is always a red flag when an investment scheme asks for money upfront as Bitcoin Superstar and Bitcoin Era do. To get involved with either of them, you need to register on their websites and fund your account. “So to start profiting with the Bitcoin Superstar, you must invest any amount you desire of $250 or more,” its website states. Bitcoin Era asks for a similar upfront investment while claiming that its trading software is free to use. However, you are unlikely to ever see your $250 again. Both Bitcoin Superstar and Bitcoin Era also entice new signups by posting fake, unverifiable profits their traders supposedly made. At one point, Bitcoin Superstar even displayed on its website: “Bitcoin Superstar ride on the bitcoin wave and earn €13,000 ($14,038) in exactly 24 hours. Guaranteed.” Bitcoin Era advertises that it has “created an incredible trading software which provides highly accurate trade signals, allowing just about anybody to make massive profits from the bitcoin and cryptocurrency markets.” The scheme further claims: “With an unprecedented accuracy rate of 99.4%, the Bitcoin Era software will keep making you profits each and every single day without you having to worry about losing.” As icing on the cake, Bitcoin Era wrote: “Many of our users have reported making thousands of dollars per day using our advanced trading algorithms and the reality is, the earning potential is limitless.” Commenting on this unrealistic claim, a Bitcoin Era review article on the Scamcryptorobots site describes: In reality the only exclusive club you are invited to join is a losing club designed by professional con artists in order to rip you off and steal your money … So if you really believe you are about to make £979.98 every day for the rest of your life, you are in for a rude awakening. The type of promises Bitcoin Era and Bitcoin Superstar make has gotten many companies in trouble with regulators around the world. Some of them have been reported to the authorities. However, it takes time for each scam to be sanctioned and the scheme shut down. Meanwhile, they continue to prey on uninformed investors, luring in victims who hope to make easy money. The bottom line is any scam can put up any number of websites, call the scheme by different names, and generate a new look and feel. Remember, if the promise sounds too good to be true, it is most likely not true, and if any red flags are there, exercise extreme caution. What do you think of Bitcoin Superstar and Bitcoin Era? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock, Bitcoin Superstar, Bitcoin Era, and Scamcryptorobots.com. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Bitcoin Superstar and Bitcoin Era – The Latest Two Faces of the Same Scam appeared first on Bitcoin News. View the full article

Since the new German crypto regulation went into effect, financial institutions in Germany have been preparing to offer crypto custody services. Among them is Boerse Stuttgart, the country’s second-largest stock exchange. Having obtained a provisional license from BaFin, the regulator in charge of licensing crypto service providers, Boerse Stuttgart is preparing to offer crypto custody services to institutional investors. Also read: 40 Banks in Germany Declare Intent to Offer Crypto Services Under New Law New Regulation Attractive to Institutional Investors Boerse Stuttgart announced on Tuesday that its crypto custody arm is preparing to offer custody services to institutional clients, such as fintech firms, banks, and asset managers. Blocknox, a subsidiary of Boerse Stuttgart Digital Ventures, takes care of the custody of cryptocurrencies on an escrow basis. “With regard to the new legal regulation of crypto custody in Germany as of 1 January 2020, Blocknox has already announced its intent to the supervisory authorities to apply for the required license,” Blocknox Managing Director Ulli Spankowski explained, detailing how his company is complying with the new law. “This means the license is deemed to have been granted provisionally,” he elaborated, adding: We welcome the regulation of crypto custody as a reasonable step towards further professionalisation of the industry. Thanks to the new legislation, more institutional players are likely to enter the crypto market. Blocknox’s crypto custody service was established at the end of January 2019 for users BISON, a crypto exchange app powered by Boerse Stuttgart. This service was extended at the end of September 2019 for users of Boerse Stuttgart Digital Exchange (BSDEX), the digital asset trading platform of Boerse Stuttgart. While the exchange was launched in September, it opened to all traders across the country in December. Boerse Stuttgart also announced in December that it had partnered with Japanese financial services giant SBI Holdings to expand both companies’ crypto businesses in Asia and Europe. SBI has several crypto operations in Japan, including a regulated crypto exchange. BISON currently supports the buying and selling of BTC, ETH, LTC, and XRP. A German bank account is needed to use this app. Recently, the company announced the app now has around 81,000 active users and BCH will be added as an additional tradable cryptocurrency in the near future. Germany’s New Crypto Regulation The law implementing the amendment to the Fourth EU Money Laundering Directive went into effect in Germany on Jan. 1. It requires financial institutions wanting to offer crypto custody services to obtain authorization from the Federal Financial Supervisory Authority (BaFin). News.Bitcoin.com reached out to BaFin for more information about the new regulation. The regulator explained that financial institutions with existing crypto custody operations when the new law went into effect must submit in writing by March 31 an “expression of interest” to offer crypto services if they want to continue offering crypto custody services. Banks without an existing crypto custody business when the new law went into effect cannot start offering the services until they have obtained approval from BaFin. According to reports, over 40 financial institutions have already submitted this intent. Spankowski clarified that “Blocknox will submit the final application by the specified deadline.” BaFin confirmed to news.Bitcoin.com that banks failing to submit an expression of interest by March 31 must cease offering their existing crypto custody services. The expression of interest does not replace the application itself and does not have any bearing on whether the application will be approved. Financial institutions that have submitted an expression of interest must complete an application by Nov. 30 or cease crypto services by that date. BaFin also noted that the length of time it takes to issue a license depends on individual cases. The regulator is still finalizing its administrative practice for the approval and ongoing supervision of new crypto services. What do you think of more German institutional investors entering the crypto space? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Images courtesy of Shutterstock and Boerse Stuttgart. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Boerse Stuttgart: New German Crypto Regulation Poised to Attract Institutional Investors appeared first on Bitcoin News. View the full article

Cryptocurrencies are gradually becoming a viable alternative for savers in Switzerland, according to a new poll. The Alpine nation’s crypto-friendly business climate and increasing regulatory clarity makes them a relatively easy addition to investors’ portfolios. Many Swiss people can afford and regularly do put some money aside but bank accounts are no longer offering inflation protection. Also read: Swiss Financial Watchdog Proposes $1,000 Client Identification Threshold for Crypto Transactions 13% of Young Swiss Think Cryptos Will Be More Important in the Future For a few years now, cryptocurrencies have been gaining ground in Switzerland. The Crypto Valley in the canton of Zug has already attracted over 800 companies creating more than 4,000 jobs. The expansion of the blockchain sector facilitated by accommodating regulations has created conditions for Swiss banks to work with fintech companies and offer new crypto-related products and services to their clients. The Swiss Financial Market Supervisory Authority approved two crypto banks in August. Zug, Switzerland Zurich-based Migros Bank has become the latest traditional financial institution to include cryptocurrencies in its scope of interests. It recently published a report on the savings behavior of various age groups that demonstrated the growing popularity of decentralized digital assets. The gathered data shows that it’s not at all unusual anymore for people to store value in cryptocurrency investments. The survey conducted by market research institute Intervista on behalf of Migros reveals that 7% of the respondents in two age groups, 18 to 29 and 30 to 55 years old, now own cryptocurrencies. Furthermore, 13% of the younger participants believe that digital coins will become even more important for them, or state their intentions to invest in crypto in the future, compared to 7% in the second group. Older investors are more pessimistic and remain wary of the new investment class, as Swissinfo reported this week, with only a fraction of those aged over 55 years (0.5%) expecting cryptocurrencies to appreciate and grow significantly in the long run. Yet, even in that age group, one in every 100 savers currently owns digital money. 90% of Swiss People Save Regularly, Most Put Aside up to 1,000 Francs a Month Intervista carried out the poll online with over 1,500 respondents aged 18 and over from the German and French speaking regions of Switzerland as well as the Italian-speaking canton of Ticino. The researchers established that Swiss people from all ages are good savers. For example, over 90% in the 18 to 55-year bracket and 80% of those over 55 years regularly put money aside. That’s 88% of the adult Swiss population. 67% of the young, 52% among 30 to 55-year-olds and 61% among people over 55 save up to 1,000 Swiss francs per month. The majority of 18 to 29-years-olds still chose to use their savings accounts even for long-term purposes and a third of them keep over 70% of their funds in this type of account, despite no longer being offered protection against inflation. The policy rate set by the Swiss National Bank has been in negative territory for years and it’s currently at -0.75%. The young cite two major reasons for not switching to financial market investments – that they are not familiar with them (52%) and that there’s a limited amount of wealth they can set aside (48%). Savings interest adjusted for inflation. Source: Intervista Many of the young Swiss are afraid of making a wrong move with alternative investments. The lack of knowledge is considered to be the greatest risk by the surveyed 18 to 29-year-olds. At the same time, these respondents are quite open to closing the knowledge gap, the authors of the study point out. 41% of them are interested to learn more about financial and investment matters compared to 37% in the 30 to 55 years segment and 32% among older participants. Curiosity is what led many to discover Bitcoin, too, and that opens another opportunity for cryptocurrencies to attract more investors, especially among young people in Switzerland. Do you think the popularity of cryptocurrencies will continue to grow among Swiss savers? Share your expectations in the comments section below. Images courtesy of Shutterstock, Intervista. Do you want to dig deeper into Bitcoin? Explore past and present cryptocurrency prices through our Bitcoin Markets tool and head to our Blockchain Explorer to view specific transactions, addresses, and blocks. The post Swiss Savers View Cryptocurrencies as Option, Now That Bank Accounts Don’t Save Them From Inflation appeared first on Bitcoin News. View the full article

During the second week of February, a new project called tBTC was unveiled that is similar to the Wrapped Bitcoin (WBTC) created with the Ethereum network. However, the tBTC effort claims to be a noncustodial application that allows users to deposit BTC, mint tBTC, and lend it with interest. Also Read: Market Update: Bitcoin Halving Hype, Golden Cross Signals, and GBTC’s 41% Premium tBTC Project Launches on Ropsten Testnet On January 30, 2019, the Wrapped Bitcoin (WBTC) project launched on the Ethereum network using the ERC20 standard. WBTC allows people to wrap collateralized BTC in Ethereum but the method has a custodian. The WBTC custodian is Bitgo and the project is also backed by Kyber Network and Ren (formerly Republic Protocol). Last August, software developer Matt Luongo told people about his work on Twitter and published the tBTC specifications. Luongo tweeted that the “cat’s out of the bag” and he and his team were working on tBTC for 10 months prior. Then on February 13, Luongo announced the first release of tBTC on the Ropsten testnet. The software engineer stressed that this was the first of a “few planned releases leading up to mainnet” and the team is still auditing. Luongo added: tBTC opens the entire Ethereum ecosystem to Bitcoiners. What happens when Bitcoiners can choose between Coinjoin and Tornado.cash for fungibility? #tBTC is live on testnet! https://t.co/k8q5WLmOFu pic.twitter.com/FxA5moyi3c — Keep #tBTC (@keep_project) February 14, 2020 Luongo’s announcement was welcomed by a handful of bitcoiners and the Ethereum community as well, although the recent exploitation of Bzx has had a lot of skeptics questioning decentralized finance (defi) this week. Eric Wall from the trading and clearing technology firm Cinnober tweeted that concepts like tBTC should be embraced. “Stop thinking of Ethereum/DeFi as this crazy neighbor who’s always up to no good,” Wall wrote. “tBTC just launched on testnet. As it approaches mainnet, the hedge between our gardens is cut. Their garden becomes our garden. It’s time to start looking after each other.” “Wouldn’t it be funny if tBTC enables a Bitcoin fee market built on Ethereum,” another crypto Twitter personality commented. “Then, this fee market enables Bitcoin to maintain it’s monetary policy — A policy which would be secured by ETH,” they added. Project Developers Claim the Supply of tBTC Is Always Backed by an Equal Number of Reserved BTC Currently, the open source tBTC project is live on Ropsten and people can mint their own testnet tBTC using the reference app. Testers will need some testnet bitcoins and Ropsten ether to create their first tBTC. The project also has an in-depth whitepaper, which explains the tBTC concept in a technical and comprehensive manner. Being a noncustodial type of wrapped or collateralized BTC project, the concept has an edge over WBTC according to its creators. Blockstream’s Liquid and WBTC are considered “centralized, provable, [and] redeemable” whereas Maker’s DAI is decentralized, synthetic, [and] irredeemable.” The tBTC concept aims to leverage the ERC20 model but maintain a censorship and seizure-resistant “hard money” status. Not only must tBTC remain censorship-resistant but it needs to be inflation-resistant, leverage-resistant, and operate without middlemen. The whitepaper also says that tBTC must be redeemable, stating: The ability to trade scrip for its backing deposit freely is what distinguishes a backed currency from fiat money. The supply of tBTC is always backed by an equal number of reserved BTC. This means for every token in circulation, 1 BTC has been removed from circulation. The tBTC whitepaper shows the signer selection multi-part process which is described in the diagram above. Currently, the WBTC project created by Bitgo, Kyber Network, and Ren is a popular vehicle to wrap bitcoins. At press time, there is $9 million locked into the WBTC contract according to statistics from Defipulse. The Lightning Network has the same amount of funds locked into the protocol and WBTC has been around for a shorter period of time. For now, tBTC is being toyed with on Ropsten but will be deployed on Ethereum’s mainnet in the near future. What do you think about the tBTC project? What do you think about tBTC in comparison to Liquid assets or WBTC? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article. Image credits: Shutterstock, tBTC, the tBTC white paper, Twitter, Fair Use, and Pixabay. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Defi for Bitcoin: Collateral Peg Platform Provides Noncustodial BTC Lending on Ethereum appeared first on Bitcoin News. View the full article

Cryptocurrency markets have seen fresh gains on Wednesday after the slight pullback that started two days prior. Most of the top 10 digital currencies by market cap have gained between 4-8% and the entire market valuation of all cryptos has hovered between $295-300 billion. Also Read: Voluntary Financing: Bitcoin Cash Devs Reveal Noncustodial Funding App Flipstarter Crypto Markets Shave Prior Losses and Show Daily Gains On Wednesday, February 19, digital currency markets are in a sea of green again after a day or two of losses throughout Sunday and Monday’s trading sessions. Today most of the top 10 digital assets besides tether (USDT) are up between 4-8% but Tezos (XTZ) has captured the tenth position as XTZ is up 17.8% in the last 24 hours. BTC has once again surpassed the $10K zone and is currently meandering around $10,075-10,150 per coin. The digital asset is up over 4.7% today and has erased most of the losses from two days ago. BTC prices on Wednesday, February 19, 2020. Ethereum is up 5.7% during the last 24 hours and has gained around 8.8% during the last seven days. Right now, ETH is swapping for $279 per coin and market aggregators show $3.8 billion in reported trade volume but Messari.io’s real volume for ETH today is only $646 million. XRP still commands the third-largest market cap and each coin is trading for $0.29. The currency has gained over 4% during the last 24 hours of trades. The top 10 cryptos by market cap on Wednesday, February 19, 2020. Tezos (XTZ) leads the pack with more than 17% gains in the last 24 hours. Bitcoin Cash (BCH/USD) Market Action Bitcoin cash (BCH) currently captures the fourth position on Wednesday as far as market valuation is concerned. At press time, BCH is trading for $413 per coin and the currency has gained 5% today. The top five pairs swapped with BCH today are USDT (67.07%), BTC (17.53%), USD (10.01%), KRW (2.07%), and ETH (1.50%). The reported volume on Wednesday for BCH is $750 million, but real volume data shows $37 million in 24-hour trades. During the last 30 days, BCH has gained 3.4% but 90-day data shows around 84% in gains. For the last year, bitcoin cash has done very well, gaining 193% during the last 12 months. BCH/USD 7-day chart on Wednesday, February 19, 2020. Fxstreet analyst John Isige explained on Wednesday that the BCH/USD market managed to hold the $400 threshold and is currently focused on $500. ”Bitcoin Cash bulls struggle to beat the seller congestion at $425 in readiness for gains aiming for $500,” Isige noted. “Development in terms of recovery has been very forthcoming in a couple of days after BCH downside took a breather at $375. Aiding in the support was the 200SMA in the 4-hour timeframe. BCH/USD is back in the limelight above $400 and focused on sustaining gains above $425,” the analyst added. BCH price on Wednesday, February 19, 2020. Searches for the Term ‘Bitcoin Halving’ Surge Every 210,000 blocks, the BTC block mining reward halves and the coin reward decreases for miners hunting for blocks. The same event will happen on the BCH and BSV networks one month prior to BTC’s change, as coin rewards will be reduced from 12.5 to 6.25 coins. Right now, conversations about the halving are trending on social media platforms and forums like Twitter and Reddit. Alongside this, Google Trends reveals searches for the term “bitcoin halving” have been steadily gaining traction. BTC’s halving is estimated to take place on May 12, 2020, 82 days from now. Google Trends (GT) shows the term “bitcoin halving” has a 75 value and recently crossed a GT value of 50. It’s following a similar pattern to four years ago prior to the BTC halving in 2016. The Confounded Golden Cross This week traders have been talking about BTC charts showing a bullish indicator called the “golden cross” on social media and forums. Basically this means that the 50-day moving average crossed the 200-day moving average and this signal usually precedes a bull run. The golden cross is the opposite of a “death cross” which is a bearish signal. When the short-term moving average jumps above the long-term moving average, traders often believe a major rally will follow. #BTC …. BTC will touch 9k than continue upside movement…and also golden cross coming..so still in bullish on BTC..Not panic selling 9k is buying opportunity#BTC #ETC #EOS #ETH #LTC #BTC #cryptocurrencies #crypto #bitcoin #Altcoins #Binance #LTC #EOS #trading #blockchains pic.twitter.com/sDZIaksIkG — Kvcrypto (@Kvcrypto1) February 17, 2020 The popular bitcoin trader Cryptobull explained the golden cross move when it happened on February 17. “Ladies and gentlemen… let me present the golden cross — The last time this happened was April 24th, 2019 at $5,400 — Before that was October 28th, 2015 at $300,” Cryptobull tweeted. However, not all golden crosses and death crosses materialize into anything, as one Twitter personality recently pointed out. “1/3 bitcoin golden cross/death cross-analysis,” said Sh___coin Riddler. “Since 2014 there were 10 golden/death crosses (50MA crossing 200MA). In 3 of 5 death crosses cases BTC price didn’t dump after the event [and] in 2 of 4 golden crosses cases BTC price didn’t pump after the event.” Grayscale’s GBTC Premium 41% News.Bitcoin.com recently reported on Grayscale’s Bitcoin Trust (GBTC) seeing an uptick in demand and a 20-30% premium. This means investors are willing to pay more for GBTC than simply purchasing BTC on a traditional spot market. Investors who want to participate in a regulated environment have invested in Grayscale’s GBTC and this week the premium for the investment vehicle jumped to 41%. The CEO of Blockforce Capital, Eric Ervin, noticed this trend on February 18 and premiums have continued nearly every day since. “GBTC premium now up to 41%,” Ervin tweeted. “People want exposure to cryptocurrency and are willing to pay a significant premium to get it. Dear SEC, it is time for an ETF. Give investors the opportunity to make their own decisions.” The Biggest Stablecoin Is Rumored to Be Coming to Bitcoin Cash In a video posted to the Cryptofinder Youtube channel, the executive chairman of Bitcoin.com, Roger Ver, discussed the importance of the Simple Ledger Protocol (SLP) framework on the BCH network. Ver explained how anyone can issue tokens using BCH in a permissionless manner and he talked about stablecoins leveraging the SLP infrastructure. During the video, Ver noted that “a little birdie told me the world’s biggest stablecoin, Tether, is about to launch on top of SLP as well.” Tether, the largest stablecoin by market cap and by transactions, is hosted on a variety of blockchains like Ethereum, Tron, and Algorand. News.Bitcoin.com reached out to members of the Tether team and our newsdesk will have more on this story soon. Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below. Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded at 9:30 a.m. ET on February 19, 2020. Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, Eric Ervin’s tweet, Fair Use, Wiki Commons, Twitter, and Google Trends. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Market Update: Bitcoin Halving Hype, Golden Cross Signals, and GBTC’s 41% Premium appeared first on Bitcoin News. View the full article

Bitcoin mining is a great way to earn cryptocurrency while providing a valuable service to the global network of users. Miners can set up a hardware operation by themselves or join forces with a large venture via cloud mining. If you are looking to enter this field in 2020, here is what you need to know about the business. Also Read: Tradeblock Estimates Post-Halving Mining Cost of $12,500 per BTC What Does It Take to Mine Bitcoin in 2020 Bitcoin mining is a transaction security and validation service done via distributed computer systems each racing to solve complex mathematical problems before the competition. Miners keep the global ledger consistent and immutable by repeatedly adding newly requested transactions into a block, which is then broadcast to the network and verified. For providing their valuable hashing power to the cryptocurrency network, miners are rewarded each time a new block is created by them in this fashion. Anyone thinking about entering this line of work needs to know that long gone are the days where one could just mine bitcoin with a desktop PC or even an old laptop. These days, any profitable bitcoin mining is done via computer systems tailored exclusively for the task, professionally called application-specific integrated circuit (ASIC) miners. The most popular bitcoin mining machines are the Antminer series from Bitmain, but there are additional hardware offerings from companies such as Microbt, Canaan, Ebang, and a few others. Take note that while some machines are available to be purchased off shelf already, or even immediately as second hand goods in online markets, when the newer models come out there is often a waiting period until they are shipped, and you need to take that into consideration. Other than the upfront cost of the hardware, your main expense as a miner is electricity. The power is primarily for operation of the computer systems themselves, but also for ventilation and air conditioning systems that might be needed depending on the situation. This is why professional miners routinely migrate around the world to locations that can offer them an optimal combination of lower electricity prices and hospitable weather. Once the hardware is all set up, you then need to direct your mining machines to a mining pool such as F2pool, Poolin, Btc.com, and Antpool. These are groupings of miners that compete to get a block together and share the rewards according to the contributed hashing power, thus spreading the work and streamlining the revenue for each one. How to Start Cloud Mining With Bitcoin.com An easier alternative to setting up your own mining operation is to go for cloud mining. This is a way to generate cryptocurrency that doesn’t require buying any expensive equipment, or installing the infrastructure needed for it. All you have to do is find a provider that you trust and buy a contract from them, which is in essence renting hash power in a dedicated facility. Bitcoin.com is one such provider, with a cloud mining service focused on bitcoin cash (BCH) and BTC. The company offers a selection of contract lengths, currently starting from just six months and running up to two years, and if you already have your own mining hardware you can connect it to the pool as well. The service also includes an app for Android and iOS mobile devices, so you can keep track of earnings, hashrate, and other statistics related to your contracts right on your phone. What do you think about the attractiveness of mining bitcoin in 2020? Share your thoughts 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 Bitcoin.com Markets, another original and free service from Bitcoin.com. The post How to Mine Bitcoin in 2020 appeared first on Bitcoin News. View the full article

A report published February 7 and authored in part by Blockstream researcher Christian Decker found that the BTC Lightning Network is “evolving towards an increasingly centralised architecture.” Proponents of LN say this is not a problem, and even critics of the network point to the necessity of properly defining — and not deifying — “decentralization.” Still, real concerns are presented with the new information, and some are looking to alternative solutions like Drivechain to fill the gap. Also Read: Voluntary Financing: Bitcoin Cash Devs Reveal Noncustodial Funding App Flipstarter Increasing Centralization of LN The report, entitled “Lightning Network: a second path towards centralisation of the Bitcoin economy,” states at outset that “despite the huge activity characterising the BLN, the bitcoins distribution is very unequal.” The paper elaborates: “the average Gini coefficient of the node strengths (computed across the entire history of the Bitcoin Lightning Network) is, in fact, ≃ 0.88 causing the 10% (50%) of the nodes to hold the 80% (99%) of the bitcoins at stake in the BLN (on average, across the entire period).” While the Gini coefficient is typically used to measure income inequality, it is applied in the report as a means to determine relative centralization of Lightning. This type of metric for measuring centralization and decentralization, however, is criticized by some in the space as being inaccurate to the meanings of the terms as they pertain to bitcoin. Nevertheless the report details the continued emergence of centralized core-periphery structures, which some say make the network more vulnerable to attack. https://arxiv.org/pdf/2002.02819.pdf While the complex math and methodology are laid out in detail in the paper, the group of researchers ultimately concludes: In particular, its structure seems to become increasingly similar to a core-periphery one, with well-connected nodes clustering together (as revealed by the study of the eigenvector centrality). More precisely, our analysis reveals the presence of many star-like sub-structures with the role of centers played by the hubs, seemingly acting as channel-switching nodes. Both Proponents and Critics of LN Debate Implications, Definition of ‘Decentralization’ Reactions to the report have been varied in the crypto space, but LN supporters and critics alike think there may be something amiss in the way “decentralization” as a concept is being defined and even deified, in a sense, where bitcoin is concerned. For example, bitcoin researcher and Drivechain creator Paul Sztorc tweeted: Another user in the thread wrote, “Why do people care so much how decentralized LN is? It can work even semi-centralized, as long as it is mostly used for small payments and as long as there are other options.” But having to monitor a hub isn’t very convenient, and doesn’t seem to be in the original, non-third-party-dependent spirit of Bitcoin. CTO of Cointext Vin Armani noted that “decentralization” is often used imprecisely, pointing to the fact that influential actors wielding influence in a network doesn’t directly translate to centralization in the negative sense, where Bitcoin is concerned. That is to say, clustering of influence does not automatically equate to a change in codebase allowing for centrally orchestrated protocol adjustments. Still, with LN, transaction paths can be closed arbitrarily, and the increasing centralization of hubs as shown by the report brings an increased risk of applied KYC/AML requirements from authorities. This would effectively turn them into banks, increasing the likelihood that paths will be closed due to the same regulations. The true fragility of LN centralization, then, is the network’s foundational reliance on trusted third parties, and the ability of nodes to foul up transactions. In light of the report’s findings, the reliance on trusted third parties bitcoin sought to eliminate, now could return via increasingly powerful influence over transaction paths on LN. Some Think Drivechain Is the Answer Unlike so-called sidechains such as Blockstream’s Liquid federated network, Drivechain seeks to allow networks to branch off using a two-way peg, affording not only interoperability and customization, but also without sacrificing critical security or scalability. Incentivized mainnet miners, and not easily corruptible and insecure “federation members” or businesses, secure the sidechains via blind merged mining, and the two-way peg system is designed to stave off the risk of inflating bitcoin on the main network. It’s for this reason that Drivechain creator Paul Sztorc calls the idea a kind of layer 1.5. “It sneaks between the lightning network and layer 1,” Sztorc said in a 2019 presentation. “You can have lightning network on top of this. Because each piece of software that is a sidechain is going to be the layer 1 of its own blockchain. So this fits in between.” Though some criticize the idea, saying the protocol relies on security-compromising user-activated soft forks (UASF) to prevent miner theft of sidechains, others are convinced it is the inevitable future of Bitcoin. Sztorc seems to take the diplomatic view that market actors should be able to do what they want, and his views on interoperability point to an important aspect of money: saleability. In the Mengerian/Austrian School conception, money is defined as the most saleable, or widely accepted and utilized good in exchange. A million cryptos on isolated networks is an economic situation still in flux, seeking equilibrium. However, should each coin have the common thread of the underlying “drivechain” of the Bitcoin mainnet, a universal system could theoretically be born. Sztorc tweeted on Monday: I’m in favor of trying large blocks, as long as small block people can turn the larger blocks down (and pay the higher layer1 fees). But drivechain is the only way (I know of) for accomplishing all that. (And, larger blocks = higher node costs) Though Drivechain remains controversial in the crypto space, it seems a proposition seeking to be more closely aligned with Bitcoin’s foundational principles than others. The plan relies on miners with skin in the game to keep networks secure, and not arbitrary groups of non-hash-wielding federation members. The ultimate problem plaguing the Lightning Network is not merely a core-periphery centralization pattern emerging, but the more foundational reality that it ultimately relies on third party hubs routing payments, and not mainnet miners, to function properly. What are your thoughts on Lightning Network centralization? Do you think Drivechain is a viable solution? Let us know in the comments section below. Images courtesy of Shutterstock, fair use. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Lightning Network Increasingly Fragile to Attacks – Hope Turns to Drivechain for Bitcoin Scaling appeared first on Bitcoin News. View the full article