Bitcoin's high valuation has ruined it as a medium of exchange

Technological limitations in the design of the Bitcoin system means that the network only processes about seven transactions per second, unless you pay someone with a lot of compute-power to log your transaction, currently at the rate of about $20/transaction. Read the rest

Financial consultancy says that Bitcoin's value is speculative, and as a currency, it should be worth $810

Wall Street consultants Quinlan & Associates have published "Fool's Gold: Unearthing The World of Cryptocurrency," a $5000, 156-page report that predicts that Bitcoin will drop to $1800 by next December, and down to $810 by 2020 (it is currently trading in the $14,000 range). Read the rest

"Financial dominatrix" orders the rich men who submit to her to operate a "crypto slave farm" to mine bitcoin

Theodora is a "financial dominatrix," a woman who sexually gratifies rich and powerful men by humiliating them with orders to give her money; in the age of cryptocurrency, she says her clients are now operating a "crypto slave farm" of cryptocurrency mining rigs built to her specification, which mine bitcoin and other cryptocurrencies for her. Read the rest

Bitcoin philanthropist donated $1 million to psychedelics research

The anonymous Bitcoin philanthropist behind the Pineapple Fund donated nearly 60 Bitcoins, approximately $1 million, to the psychedelics research and advocacy group Multidisciplinary Association for Psychedelic Studies (MAPS).

"The Pineapple Fund's outstanding generosity exemplifies how the growth of cryptocurrency can be leveraged for profound social change," says MAPS Founder and Executive Director Rick Doblin, Ph.D. "The blockchain community is helping to lead the way, not only in decentralized technologies and currencies, but in giving the gift of MDMA-assisted psychotherapy to the world in order to heal trauma and bring greater compassion to psychiatry and medicine."

The philanthropist, known as Pine, has also:

• Donated $1 million to Watsi, an impressively innovative charity building technology to finance universal healthcare.

• Donated $1 million to The Water Project, a charity providing sustainable water projects to suffering communities in Africa

• Donating $1 million to the EFF, defending rights and privacy of internet users, fighting for net neutrality, and far far more

• Donated $500k to BitGive Foundation, a charity building projects that leverage bitcoin and blockchain technology for global philanthropy.

Previously: "An anonymous person with $86 million in bitcoin is giving it to charity" Read the rest

Cryptocurrency: From Basic Definitions to Expert Issues in One Interview

You’d have to be living in some kind of a news blackout not to have heard chatter about cryptocurrencies recently. The granddaddy of ‘em all – BitCoin – has appreciated roughly 2000% over the past twelve months. This puts the total value of all BitCoin close $300B, making it more valuable than roughly 490 of the companies in the Fortune 500 – and far more valuable than any of the banks that were deemed too big to fail during the financial crisis.

So what in the world is going on here? As with all large markets, nobody fully knows. But my interviewee in today’s podcast, Fred Ehrsam, knows this area better than almost anyone. In 2012, he co-founded Coinbase, which is by far the world’s largest consumer-friendly service for storing and trading cryptocurrencies (though its users include many large nonconsumers as well).

Although our interview is a spontaneous conversation, Fred and I both put methodical thought into sequencing our topics, as well as the level of depth that we treat each with. The result is a robust introduction for who know nothing about cryptocurrencies, which can also truly fire the neurons of experts in this field. Will AI’s start running on the block chain? Could a full-fledged Uber, Lyft, or AirBnB competitor exist as a cloud-based Smart Contract? And how might the emergence of Ethereum stand in certain a line of historic events that stretches back before the Bronze Age?

Those who don’t yet know what a blockchain or a smart contract are should be able to follow the entire conversation, clear through to its complex and rather mindbending conclusions, just by listening carefully (although probably not on 2x speed!). Read the rest

Ugly cryptocurrency sweaters

It seems whatever you're into, there's an ugly holiday sweater for it. Now, with the rise in interest in cryptocurrency, there's a collection of machine-knit "ugly crypto sweaters" available. For $59.99 apiece, you can show your (ironic?) pride for Bitcoin, Ethereum, Litecoin, Monero, or Neo this winter. See them all over at Hodlmoon.

(Ufunk.net)

Previously: These ugly Christmas sweaters have special booze-bottle-holding pockets Read the rest

How much energy does Bitcoin consume, and can it improve?

After Digiconomist's analysis of the total energy consumption of the Bitcoin transactions on the blockchain went viral, Timothy Lee at Ars Technica provides a much-needed reality check in the form of some technical detail and nuance about what that energy consumption means, and where it might go. Read the rest

Bitcoin loses fifth of its value in 24 hours

It was a hell of a ride. Peaking at nearly $11,400 earlier this week, Bitcoin's value dropped by a fifth Thursday, deflating the cryptocurrency's explosive growth since last year. Reuters:

One market-watcher attributed the fall to outages in bitcoin exchanges and the heavy price surge of recent times.

“Naturally a few of the early bitcoin traders are taking some profits off the table,” said Charles Hayter, founder of CryptoCompare.com.

“Volatility is in the market at the moment and that means both positive and negative moves.”

The latest fall has tempered an astronomical rise for the cryptocurrency in recent months - bitcoin was up almost 1,100 percent year-to-date on Wednesday. As of 1500 GMT on Thursday, it was still up around 880 percent.

Read the rest

The crooked Secret Service agent who stole Silk Road bitcoins did it again after pleading guilty

Shaun Bridges is the disgraced ex-Secret Service Agent who pleaded guilty to stealing bitcoin from online drug dealers while he was investigating the Silk Road; he's serving a 71-month sentence and has just had two years added to it after he pleaded guilty to stealing more bitcoin after his guilty plea, while he was out on bail Read the rest

I forgot my PIN: My epic tale of losing $30,000 in bitcoin

In January 2016, I spent $3,000 to buy 7.4 bitcoins. At the time, it seemed an entirely worthwhile thing to do. I had recently started working as a research director at the Institute for the Future’s Blockchain Futures Lab, and I wanted firsthand experience with bitcoin, a cryptocurrency that uses a blockchain to record transactions on its network. I had no way of knowing that this transaction would lead to a white-knuckle scramble to avoid losing a small fortune.

Read the rest of my story at Wired.com Read the rest

Dutch man risks everything hoping to hit big with bitcoin

Didi Taihuttu expects the price of bitcoin will soar, so much so that he’s selling his house, car, and other valuables to obtain even more of it.

Now, 39-year-old Taihuttu is living at a campsite with his wife and three children, waiting till 2020 for his investment in cryptocurrency to pay off, according to Business Insider.

The cramped living space may be a bit different from the four-bedroom home the Taihuttu family, from the Netherlands, was used to, but since the house was sold under reservation partly for bitcoin in August, the value of a single bitcoin has gone from $3,700 to $4,800.

“At first my wife doubted the decision, wondering if it was the right decision for our kids — as did my brother and sister... but they are now supportive of the plan," Taihuttu told Newsweek.

Via Business Insider:

Taihuttu thinks digital coins such as bitcoin and the blockchain technology behind it are transforming the role of money and banks in society.

With blockchain, no third party is required to approve a payment — a role currently performed by banks — and a network of computers keeps a record of all transactions.

“The Internet was a revolution for information. I think that blockchain and cryptocurrency are revolutionising the monetary system,” says Taihuttu. “In five years’ time, everyone will say: ‘We could have seen it coming.’ I am responding to this change now.”

Image: BTC Keychain Read the rest

Wu-Tang Clan's Ghostface Killah launching cryptocurrency

Dennis Coles, aka Ghostface Killah of the Wu-Tang Clan, has co-founded a cryptocurrency company called Cream Capital. The name comes from the Wu-Tang Clan's 1993 jam C.R.E.A.M. ("Cash Rules Everything Around Me.") Apparently, the company now holds the trademark on the phrase "Crypto Rules Everything Around Me." Cream Capital is planning an initial coin offering on November 11 to raise $30 million. Apparently those tokens can be traded for Ether on the Etherium blockchain.

"Ghostface Killah is a longtime business partner of ours," Cream Capital co-founder/CEO Brett Wesbrook told Pigeons & Planes. "I personally connected with him during a Reddit AMA on /r/hiphopheads last year when he was seeking tech-inclined people to work with in future technology focused projects. Dennis is a very forward thinking person and has a keen interest in emerging technologies. It's hard to ignore blockchain tech today even when you're a busy, touring hip hop artist.

"He doesn't have any technical background with cryptocurrencies. However, remember that Wu-Tang is for the children. He is very focused on what the youth and millennials are interested in. He is a very solid businessman and has surrounded himself with bright individuals with a hunger for bring new, groundbreaking technologies to market...

"His work capacity will be laying out a framework for which cryptocurrencies are more familiar to everyday people." Read the rest

Chinese government sources tell the WSJ they're about to shut down all domestic Bitcoin exchanges

China's "economic miracle" has been accompanied by mass-scale looting, creating a class of super-rich, corrupt millionaires and billionaires to rival the US or Russia; these 1%ers know that their wealth is subject to the whims of the Politburo, which is why they are so anxious to acquire second passports, and to exfiltrate their cash through baroque schemes, anodyne scams, and runaway property speculation. Read the rest

List of dead and worthless cryptocurrencies

Deadcoins (by matixmatix) is a list of, well, dead coins: the Bitcoin-esque cryptocurrencies that failed to take off, which were scams or experiments, or which otherwise are now deceased. Or, perhaps they're all dead, the new Bitcoin boom notwithstanding. Speaking of which, Bitcoin is dead, long live Bitcoin.

If you want something truly, permanent, though, you can get a commemorative gold-plated bitcoin for... the grand sum of $7.88. Read the rest

Burger King launches cryptocurrency in Russia

Burger King launched its own cryptocurrency, WhopperCoin, in Russian markets. Managed by blockchain startup Waves, WhopperCoin is essentially a blockchain-based loyalty rewards program. A customer receives one WhopperCoin for each ruble they spend on whoppers. A free Whopper can be had for 1,700 WhopperCoins. From the BBC News:

Ivan Shestov, head of external communications at Burger King Russia, said the scheme turned the Whopper into an "investment vehicle"...

"I don't imagine McDonald's will be quick to allow someone to pay for a Big Mac with their whoppercoins," (said Dr Garrick Hileman, research fellow at the Cambridge Centre for Alternative Finance). "Burger King's competitors are more likely to accept an independent crypto-currency like bitcoin."

Read the rest

Global Wannacry payout: $140,000 -- a superweapon in the hands of dum-dums

The Wannacry worm burned through the world's unpatched IT systems, hitting more than 80 countries in 24 hours, taking down hospitals, airlines, banks and logistics companies, until a hidden killswitch was able to halt its spread. Read the rest

A new ransomware strain is seemingly using a leaked NSA cyberweapon to race around the planet

Petya is a well-known ransomware app that has attained a new, deadly virulence, with thousands of new infection attempts hitting Kaspersky Lab's honeypots; security firm Avira attributes this new hardiness to the incorporation of EternalBlue -- the same NSA cyberweapon that the Wannacry ransomware used, which was published by The Shadow Brokers hacker group -- into a new Petya strain. Read the rest

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