[How to Handle Crypto’s 4 Major Problems and Finally Achieve Mass Adoption:]

How to Handle Crypto’s 4 Major Problems and Finally Achieve Mass Adoption: Opinion

As Blockchain-based cryptocurrencies like Bitcoin and Ether continue to progress in terms of development and popularity, the mass adoption dream begins to look more achievable.

However, there is still much to do and even Bitcoin, the most popular, valuable and secure cryptocurrency is far from being consumer-ready.

Even though Bitcoin couldn’t handle mainstream adoption if it happened today, there are other key factors that must first be dealt with if we are to ever break out of the “Blockchain sandbox”.

While Blockchain technology has come a long way, there is still a lot to be done. The four problems analyzed are still major impediments and some continue to be problems in the traditional economy itself.

The Blockchain development sector is one where creativity and commitment never cease to amaze, and as so we think the future will continue to shine bright for cryptos.


Scalability


This is the first thing that comes to mind and the most incapacitating roadblock. Bitcoin’s transactions throughput capacity were put to the test these recent months, and the results are well-known: delayed transactions, high fees, and a lot of name calling on Twitter.

Yes, scalability is a problem in and of itself, but the tension created by the discussions surrounding it can be just as bad, leading to panic sales in the market, competing protocol changes, and overall confusion for entrant users.

Luckily, this has been a main focus in the developer community with no shortage of ideas and BIP (Bitcoin Improvement Proposals) being submitted to that effect.

Many developers have also turned their sights to alternative Blockchains that are designed with the latest technology and mass adoption in mind.


Customer protection



Earlier this month, the crypto community rejoiced as Bitcoin’s market cap overtook PayPal’s. This, however, can also be viewed as a problem.

Although Bitcoin has overshadowed the PayPal stock, its user base is nowhere near the 210 mln users that own a PayPal account.

With this in mind, it’s simple to conclude that crypto is still a highly speculative market.

So, what's stopping people from using Bitcoin and other cryptocurrencies that offer far more advanced technology than that employed by PayPal?

Two words: consumer protection. There is simply no such thing in crypto.

If you want to buy something with Bitcoin, you either have to trust the merchant completely or you have to get an additional escrow agent that can mediate the transaction, making the whole process complicated and expensive.

Nuno Correia, CEO of Utrust says his team is building a simple, yet effective solution on a  platform that will feature its own consumer protection system, allowing users to shop online with the same ease they do when using eBay or PayPal.

Cointelegraph asks Correia how the platform can help cryptocurrencies achieve mass adoption.

He states:

“UTRUST will bring confidence to crypto adopters. They will no longer feel that they are taking a risk when purchasing online!”


Volatility



Bitcoin is no stranger to volatility, the bipolar cousin of inflation. Although volatility is where traders make a living, it’s not a desired property in any currency.

This problem ties in nicely with the consumer protection issue we just reviewed.

Merchants and customers are the two basic components of any transaction and although there are many Bitcoiners out there ready to spend their BTC wherever they can, merchants may be reluctant to deal with the added risk.

While the system employed in the Utrust platform allows merchants to deal with fiat only, this is not a complete solution to the volatility problem.

However, projects like Bitshares, Waves and Tether are leveraging Blockchain technology to provide us with Blockchain-based fiat tokens like BitUSD, wUSD, and USDT, respectively.


Security


This isn’t a cryptocurrency-specific problem per se, but it’s still something that must be addressed urgently if cryptocurrencies are to continue on their ascent towards the mainstream stage.

We’re not even talking about the ridiculous numbers of scams, schemes and tricks designed to take your coins online. We’re talking about exchanges.

Exchanges have become a gateway into the cryptocurrency world, providing a convenient and affordable service.

However, these same exchanges have become centralized fail points to an otherwise decentralized economy.

From the infamous Mt. Gox hack, to the latest problems found in Bitfinex and BTC-e, this problem doesn’t seem to have got better with time.

The solution lies with decentralized exchanges (DEX). Open-source projects like Bitsquare, Waves DEX and the upcoming BarterDEX by SuperNet all put control back in the user’s hand, allowing them to buy and sell cryptocurrencies without the need to trust a third-party entity, promoting security, privacy and efficiency.

Audo, Community Leader of SuperNet, tells Cointelegraph:

“With a decentralized exchange like BarterDEX, trading can be done through a wallet in a decentralized environment. So, a user would just have to download one app that functions both as a multi-coin wallet and coin exchange. That is all he needs, and at the end will make it very easy to store, buy and sell multiple cryptocurrencies, while allowing for further functionalities to be built into the app.”


Source:  https://cointelegraph.com/news/how-to-handle-cryptos-4-major-problems-and-finally-achieve-mass-adoption-opinion

[Fake Satoshi Trolls Bitcoin News Sites, Tim Draper To Push New Altcoin]

Fake Satoshi Trolls Bitcoin News Sites, Tim Draper To Push New Altcoin

A number of news publications, as well as Tim Draper, were trolled Friday by someone claiming to be the ‘real’ Satoshi Nakamoto. After a number of attempts to document his identity as Satoshi via private keys, the fake Satoshi cut off communication.

After some research, it was clear that the statements were made in order to pump a new altсoin. The fake Satoshi continued to mention the Blockchain platform, and even produced some interesting documents including emails to and from Satoshi. However, the emails have been publicly available, and though difficult to find, did not prove the caller’s identity.

Both the Verge and Tim Draper confirmed that the self-proclaimed Satoshi was a fake, and encouraged others to be vigilant.


Fakers fakers



It seems that being Satoshi has become something of a fad, with a number of other fake Satoshis popping up lately.

The recent suggestion that Craig Wright is the real Santoshi was revealed to be a hoax, based on a deal signed with a Canadian company to prove his identity.

Newsweek has also suggested the model train collector Dorian Nakamoto was the real Satoshi - a suggestion met with a lawsuit from the accused.

As cryptocurrencies increase in popularity and the Bitcoin price still rises, Satoshi wannabes will likely continue to crop up. However, apart from moving Bitcoins known to be held by Satoshi himself, little can be done to prove any individual claims.


https://cointelegraph.com/news/fake-satoshi-trolls-bitcoin-news-sites-tim-draper-to-push-new-altcoin

[Antpool, ASICBOOST Share Blame for Bitcoin Network Delays]

Antpool, ASICBOOST Share Blame for Bitcoin Network Delays

Bitcoin (BTC) transaction delays and fees are increasingly thought to be the result of Antpool mining empty blocks.

Multiple reports surfacing on social media pin the blame for the slow rate of approvals on miners deliberately not including SegWit transactions.




The practice would cut capacity, increasing waiting times and driving up fees.

Data from Blockchain.info on blocks found post-SegWit activation suggests Antpool, the largest Bitcoin mining pool, is circumventing SegWit transactions despite losing revenue.

“Normally miners will confirm as many transactions as they can, because when they confirm one they earn the transaction fees from that transaction,” one explanation reads.


“Antpool has given up $100,000+ in transaction fees in the last 24 hours alone by not confirming as many transactions as they can.”

The figure calculated by one Reddit user suggests Antpool missed out on $102,400 in fees in the past 24 hours alone.

The motivation behind boycotting SegWit transactions lies in suspected use of ASICBOOST by miners, a function which manufacturer Bitmain had previously denounced.

“[Using ASICBOOST], however profitable, is not something we would do for the greater good of Bitcoin,” the company wrote in a blog post in April.


https://cointelegraph.com/news/antpool-asicboost-share-blame-for-bitcoin-network-delays

[Not Bubble - Bitcoin Growing Up, Heading to $10,000: Dave Chapman]

Not Bubble - Bitcoin Growing Up, Heading to $10,000: Dave Chapman

No one knows if the recent rally is the last pump before the bubble pops, or indeed if it is the tipping point. But, Octogon Strategy Dave Chapman is seeing a new breed of investors flowing towards cryptocurrency that makes him believe Bitcoin is growing up.

Chapman’s company, which specializes in commodity investment, especially digital currencies, is seeing a new flow of institutionalized money opening accounts with Octagon. These new account holders are the type of people that make it look like Bitcoin is growing up, not preparing to pop.


Heated market



The talk and debate around Bitcoin, especially at big rallies, is whether the digital currency is preparing to pop on the same level as Tulip Mania, the dotcom bubble and other such market crashes.

Chapman admits that the market is a heated one, but it is also a very different one.

“I don't think we are looking at a bubble at all,” Chapman told Bloomberg. “I would say that the market is heated and a lot of people do think it is a bubble and it is sometimes hard for me to defend that position. But what I will say we are potentially at the tipping point.”

“Bitcoin is growing up. What we are seeing at Octagon Strategy with the account applications today is that we are serving a very different demographic, looking at high net worth individuals, funds and asset managers, private banks, the institutional flow is coming and I think that is one of the main reason why we are seeing the price at what it is today.”


$10,000 not out of sight



For Chapman, the idea thrown around that Bitcoin could hit $10,000 by the end of the year is not as absurd as many think.

“I don’t think it is unimaginable to think we will have a five figure headline at the end of the year,” Chapman added. “There has been an enormous amount of investment that has come into cryptocurrencies as a whole.

“The total market cap for all cryptocurrencies in January this year was $20 bln, today we are looking at $146 bln. In the space of eight months we have had $126 bln enter this sector, so it is  heated, but I believe we are seeing a tipping point, it is a totally different institutionalised flow that is entering this market right now.”


https://cointelegraph.com/news/not-bubble-bitcoin-growing-up-heading-to-10000-dave-chapman

[Segwit2x and Bitcoin Core Drama Flares Up ‘Community’ Tension]

Segwit2x and Bitcoin Core Drama Flares Up ‘Community’ Tension

On August 17 the bitcoin payment processing company Bitpay published a blog post about Segwit2x that stirred quite a bit of controversy with the bitcoin ‘community.’

Bitpay Sparks Controversy for Promoting the BTC1 Codebase as a Reference Client to Bitcore Nodes

The post called “What Bitcore Users Need to Know To Be Ready for Segwit Activation” gives a detailed explanation to its Bitcore user base about the upcoming consensus process with Segwit2x. However, the post also leaves btc1 software (Segwit2x) as a form of upgrade for Bitcore full nodes.

Immediately a few bitcoin proponents and developers such as Peter Todd, Tuur Demeester, Francis Pouliot‏, John Carvalho‏, Rodolfo Novak‏ and others got angry with Bitpay for recommending an alternative to the Core reference code. Developer Peter Todd called Bitpay’s statement “fraudulent” and talked of litigation. Programmer Eric Lombrozo has asked his Twitter followers to openly ban any company that supports Segwit2x. Across forums and social media, the blog post caused relentless debate throughout the entire day of August 17.

Bitcoin.org Operator Theymos Seeks to Remove Copay Wallet and All Bitpay Services from the Website

Then later on into the day the owners of Bitcoin.org decided to create a pull request to remove Bitpay’s services and the Copay wallet from the site’s recommended wallet section. One of the operators of Bitcoin.org and the lead administrator of r/bitcoin, Theymos, explains that Bitpay is pushing “fraudulent” software.

“Bitpay is fraudulently passing off btc1 as Bitcoin software to which people are required to upgrade,” explains Theymos. “This is highly unethical and a violation of the bitcoin.org hard fork policy.”

"  Therefore, this pull request removes from bitcoin.org any references to Bitpay and their software/services Copay and Bitcore. "

Bitcoin developers like David Harding detailed that Bitcoin.org should “proceed slowly and try to get Bitpay to clarify their position before we delist them.” Other developers agreed with Harding’s opinion, but others agreed with the proposal set forth by Theymos. Then btc1 developer Jeff Garzik explains his view stating, “NAK. It is reasonable and practical to follow the blockchain with the most hashpower (thus most secure).” Bitcoin.org operator Theymos didn’t like this statement and replied back to Garzik by saying, “Bitcoin is not and must not be ruled by miners,” and leaves a link to a Bitcoin Wiki site he controls.

Segwit2x Developer Jeff Garzik Removed From Github Repo

Just when you thought the drama would end, it didn’t, as later on that day Jeff Garzik was removed from the Core bitcoin repository as a contributor. This also created quite a stir on Twitter as people who are angry about Segwit2x stated things like, “you brought it upon yourself Jeff, enjoy working on btc1 alone.” While others defended Garzik and called the action “ludicrous.”

According to bitcoin Core contributor, Matt Corrallo, Garzik’s statements in the past would agree with the decision. “As Jeff himself advocated for several times, this is just the removal of people who haven’t been active in the project for years. No need to read too much into such things.” Software developers Peter Todd and Greg Maxwell also confirm the reason why Garzik was removed was due to inactivity. However, there are some speculators who believe the move was far more political, and coincidently done before the second half of the compromise.

It doesn’t seem like Segwit2x is off to a good start for the second half of the New York Agreement. Already bitcoiners are talking about the birth of a third bitcoin called “B2X.” Meanwhile, bitcoin cash supporters are telling Segwit2x proponents to join them, as most believe the compromise is a failed attempt. It’s safe to say the quarreling will be very intense over the next couple months in bitcoin-land, and another blockchain split is looking more probable as the days continue.

The Segwit2x Working group (btc1) plans to hard fork the network to increase the block size to 2MB on block 494,784 on the Bitcoin blockchain.


https://news.bitcoin.com/segwit2x-and-bitcoin-core-drama-flares-up-community-tension/

[Washington Politicians Defend Regulations as Cryptocurrency Exchanges Flee]

Washington Politicians Defend Regulations as Cryptocurrency Exchanges Flee

Washington regulators recently introduced exchange rules for any firm wanting to allow customers to trade in cryptocurrency. They said they created Senate Bill 5031 to make the ecosystem fair for cryptocurrency exchanges and their customers. However, a number of exchanges have left the area, because they believe the rules were too burdensome. Now Washington lawmakers are defending the bill on the grounds that it helps the exchanges and their clientele.


Poloniex, Bitstamp, Kraken, and Bitfinex are a few of the exchanges that left the area after Washington announced its regulatory requirements in July. Each company provided their reasoning why they stopped servicing Washington area customers.

Bitstamp wrote a letter to its customers back in 2016, saying, “After long and careful deliberation, we are sorry to inform you that due to recent regulatory constraints imposed by the State of Washington, Bitstamp will cease to serve customers from The Evergreen State, effective 20th December 2016.”

Bureaucrats Claim Bill is Good

Charlie Clark, deputy director of the state’s Department of Financial Institutions and director of the authority’s division of consumer services, did not comment on the specific companies that left. He did suggest the restraints were not imposing or negative, though. He mentioned State financial regulators spent months preparing and detailing the bills.


A Payment Compliance article quoted Clark. He said,


" The phone calls and conversations were part of an effort to strike a balance between protecting consumers and not heaping onerous and unnecessary regulations on virtual currency start-ups "


Clark just wanted businesses to understand that their goal was not to punish new tech businesses, but to protect customers and help startups gain compliance. He did not mention the amount of digital currency firms who are not in compliance or which ones left.

Bitcoin Exchanges Licensed in Washington; Specific Requirements for Operating

Despite this exodus of exchange firms, several remained and decided to apply for licenses. According to Payment Compliance, there are 7 cryptocurrency or blockchain startups licensed by the department of financial services. 5 more have applied for a new license. Furthermore, news.Bitcoin.com recently reported that Gemini had applied for a license and was granted approval to conduct business in the State.

Even though these companies decided to stay, they still have quite a burden to fulfill to gain compliance in the State. A Payment Compliance article elaborated on their burden:

" Money transmitters must take out a surety bond based on the dollar volume handled the previous year, ranging from $10,000 to $550,000, with anywhere from $10,000 to $50,000 required for money exchangers. "


These companies must also submit to third party audits of their systems, and they must provide additional information to their clientele. Overall, obtaining a license for companies in the state is a time consuming and pricey process to undergo.

Do you think Washington’s regulations are too burdensome? Are regulations necessary? Let us know your opinions in the comments below

https://news.bitcoin.com/washington-politicians-attest-to-regulations-as-cryptocurrency-exchanges-flee/

[One Coin, Much Scam: Italy Brands OneCoin Ponzi, Issues €2.5 Mln Fine]

One Coin, Much Scam: Italy Brands OneCoin Ponzi, Issues €2.5 Mln Fine

OneCoin, after garnering a lot of support in the early days of cryptocurrency, is still facing the music as Italy becomes one of the first countries to take a hardline stance against the company, demanding a €2.5 mln fine.

The Italian Antitrust and Consumer Protection Authority (AGCM) has branded OneCoin a pyramid scheme, or ponzi scheme.


Troubled times for OneCoin



OneCoin has been under investigation from the AGCM since December last year, where it ordered local affiliates to stop promoting the so-called digital currency.

However, Italy is not the only country that has been protecting its citizens from the financial fraud that seemed to be brewing under OneCoin. Prosecutors in Germany opened up criminal investigations into the company and in Hungary the government also took steps to tackle the ponzi scheme.

Italy’s AGCM has been working hard at shutting down OneCoin's influence in the country as its investigation was based on its suspicion that the currency was a “deceitful Ponzi scheme”.

The investigation wrapped up in February with OneCoin contesting the results, but regardless, the digital currency was banned in Italy at the end of February.


Cease and desist


OneCoin was required to respond to the AGCM with a detailed plan as to what measures it would take to stop all promotion of its company within Italy’s borders, or face a fine.

When there was no response from the ponzi scheme, the AGCM announced that they would incur a fine of between €10,000 to €5 mln. As such, the fine has now been set at €2.5 mln based on findings that OneCoin is a “pyramid sales system” that sold “one coins” to the general public


First fine of its kind


While OneCoin has faced many bans and measures to stop its functioning in different states, the monetary fine imposed by Italy seems to be the first of its kind.


https://cointelegraph.com/news/one-coin-much-scam-italy-brands-onecoin-ponzi-issues-25-mln-fine

[First Bitcoin Exchange Launching in Egypt]

First Bitcoin Exchange Launching in Egypt

Bitcoin Exchange Launching in Egypt

Founded by Rami Khalil and Omar Abdelrasoul, Bitcoin Egypt plans to launch a bitcoin exchange this month. “The tentative launch date is the 31st of August. We will definitely at least go into alpha testing at that time if we are not fully operational,” Khalil told news.Bitcoin.com.

First Bitcoin Exchange Launching in EgyptHe claims that it will be the first in the country. “There were no prior (registered) exchanges before,” he detailed, citing “everything operates peer-to-peer and under the radar now. It’s currently a ‘black’ market in Egypt.”


At launch, the exchange will only support trading between the Egyptian pound and bitcoin. “The fees will be a fraction of the transaction size (<0.25%),” Khalil said. The company plans to add support for ether, other altcoins, as well as other fiat currencies in the near future, followed by a payment service next year.

Only “rudimentary contact information (full name, ID numbers, address, etc..)” will be collected by the exchange, he detailed, adding that “since bitcoin is technically a commodity in Egypt, we’re not bound to any formal KYC/AML regulations.”

The bitcoin ecosystem in Egypt is currently small with only a handful of traders listed on Localbitcoins. However, Khalil said “there are a few hundred people actively using and trading bitcoin on a daily basis in Egypt on online forums.” As for merchant adoption, he said it is “virtually non-existent,” noting that “people generally assume it’s taboo. We’re of course looking to change that outlook, and improve adoption.”

Authorities’ Warnings

Last week, Chairman of the Egyptian Financial Supervisory Authority (EFSA) Sherif Samy reiterated that digital currencies such as bitcoin and ether are not authorized or supervised by the authorities, according to local publications. With the absence of legal and loss protection, any dealings with them carry significant risks, the chairman noted.

First Bitcoin Exchange Launching in EgyptIn June, there were reports that suggested that the central bank was considering allowing the circulation and trading of digital currencies, which the bank’s deputy governor Lobna Helal promptly denied.

“The central bank rejected this currency because the state can control the local and foreign traditional currencies, and can impose certain fees on their movement and transfer to and from Egypt,” banker and economist at Zagazig University Ashraf Ibrahim told Al-Monitor. With state-controlled currencies, “the central bank can tax the investment and trade activities generated by those funds, but cannot do the same with bitcoin,” he asserted.

No Digital Currency Laws Currently

Khalil told news.Bitcoin.com that “from personal contacts, the Ministry of Finance fully understands what bitcoin is, and only has problems with its potential for money laundering,” adding that:

"Formally, there are zero laws or regulations in place about digital assets/cryptocurrency. We’re hoping to help shape their views and provide any assistance where needed."

He then noted that “the local banks have been very firm in asserting that they have no plans to start providing bitcoin services themselves and that they will never consider it a currency, but so far no one has turned us away from opening a bank account in our company’s (very explicit) name.”


https://news.bitcoin.com/first-bitcoin-exchange-launching-in-egypt/

[Segwit2x Working Group Announces Hard Fork Roadmap]

Segwit2x Working Group Announces Hard Fork Roadmap

Segregated Witness has locked-in and the Segwit2x working group has announced its roadmap for the next three months. The team of developers have detailed they are going forward with the 2MB block size increase that miners and businesses agreed upon at the New York Agreement.

The Segwit2x Roadmap

It’s been over 24-hours since Segregated Witness (Segwit) locked-in on the Bitcoin network after nearly 90 percent of miners pushed the protocol activation forward. Now the Segwit2x working group member Jean-Pierre Rupp revealed the team’s plans for the upcoming 2MB hard fork. The announcement called “Bitcoin Upgrade at Block 494,784,” states;


"During the month of November 2017, approximately 90 days after the activation of Segregated Witnesses in the Bitcoin blockchain, a block between 1MB and 2MB in size will be generated by Bitcoin miners in a move to increase network capacity. At this point, it is expected that more than 90% of the computational capacity that secures the Bitcoin network will carry on mining on top of this large block."

‘Compatibility With the New Larger Blocks’

The announcement explains the upgrade to 2MB was first discussed at the ‘Hong Kong Roundtable Agreement’, and had further solidified at the ‘New York Agreement’ (NYA) this year at the Consensus conference. Both agreements involved implementing Segwit first and a block size increase from 1MB to 2MB later. The working group says, now that Segwit has locked-in, the ecosystem should update to Segwit-compatible software if they want to benefit from the protocol. Alongside this, the announcement explains “readiness” preparation for the fork including port changes, network changes, DNS seeds, and the Segwit2x “Testnet5.”


“The November 2017 upgrade to 2MB blocks is a hard-fork, but necessary changes are trivial to perform,” explains the Segwit2x working group’s announcement. “Some SPV clients are expected to work without any change at all. Most clients will need to tweak only two constants to remain compatible with the new larger blocks.”

Segwit Is Here but the Bitcoin ‘Community’ Infighting Remains

As the plan moves forward many developers and bitcoin community figures have been quarreling over the proposed upgrade. Moreover, last week developer Matt Corallo introduced an idea that would further separate the Core reference client away from Segwit2x.

The infighting and attempt to disconnect Core software 0.15.0 further solidifies people’s theories that the cryptocurrency community could see a third bitcoin. A vast majority of bitcoiners are discussing this subject fervently and come November the Bitcoin network may see some fireworks again.

https://news.bitcoin.com/segwit2x-working-group-announces-the-hard-fork-roadmap/

[Major Japanese Retail Chain Marui Now Accepts Bitcoin Payments]

Major Japanese Retail Chain Marui Now Accepts Bitcoin Payments

Major Japanese retail store chain Marui has signed a partnership agreement with Bitcoin exchange Bitflyer that will enable it to accept Bitcoin payments in stores starting August 7. With this move, Marui becomes the first large department store chain in Japan to accept the digital currency for payment.


Plans to roll out to all 31 stores



Marui is a reputable and well-known chain of stores in Japan that features high-end fashion brands and designers, as well as boutiques. The department store is owned by Marui Group, which was founded in 1931 and incorporated in 1937. The group owns 31 stores across the country.

According to the Japan National Tourism Organization (JNTO), Marui’s department stores are among the top seven shopping attractions in the nation.

Meanwhile, Culture Trip considers Marui as a department store chain that mainly caters to the needs of young and stylish customers aged 20-35 years. The chain has stores in Tokyo and other major cities in Japan.


Test run in Shinjuku


Marui will test the use of Bitcoin as a payment method at its Shinjuku Marui Annex site in Tokyo from Aug. 7 to Oct. 31, 2017. The site is a major commercial and administrative center in the country’s capital. If the pilot goes well, Marui could continue the adoption of Bitcoin, ultimately allowing it at all 31 stores.


Other Bitcoin adoption developments


Despite the temporary halt on Aug. 1 due to uncertainties over forks, the number of Japanese merchants accepting Bitcoin is growing rapidly. This growth was spurred when the Japanese government gave Bitcoin legal tender status earlier this year. Among the merchants now accepting Bitcoin is Bic Camera, which introduced a Bitcoin payment option to all its stores in Japan, as well as in some Sofmap and Kojima stores.

Japan is also considered as one of the best countries to buy and spend Bitcoin due to the regulatory climate and favorable tax regime.


https://cointelegraph.com/news/major-japanese-retail-chain-marui-now-accepts-bitcoin-payments

[German Bitcoin Exchange Hands Out Private Info to Investigators]

German Bitcoin Exchange Hands Out Private Info to Investigators

Bitcoin.de, renowned as Germany’s biggest digital currency exchange, has been handing out its clients’ private account information voluntarily to German Police. There has been a big push from law officials to take down darknet markets, and as such, they have been using exchange information to track cryptocurrency users.

User privacy and information has been a thorny issue as Coinbase, one of the most popular exchanges in the US has been fighting the IRS who have been hunting for information on the exchange’s clients.


Legal reporting obligations


There have been some big dark net take downs recently, with AlphaBay and Hansa both falling. Hansa was taken down by Dutch authorities, and it seems that there is a big push in Europe to stop these illegal marketplaces.

The information that German police have been seeking from the exchange has been Bitcoin addresses, names, associated emails, locations, account summaries, IP addresses and login history.

The exchange has defended itself by saying this reporting is justified and that it has a trustworthy cooperation with the German authorities.

However, a professor and data protection officer from Hamburg, Johannes Caspar, says Germany’s Money Laundering Act (AMLA) says there is no legal obligation to give data to police.

This goes hand in hand with what has been happening in the US and the IRS as their call for hundreds of thousands of customers’ information has been unprecedented and blocked by many different players.


Outraged


The draw of digital currency like Bitcoin is its anonymity, and a lot of that has to do with the protection that exchanges have in not needing to divulge information on transactions.

One customer from South Germany says he is outraged at how this major exchange has compromised his privacy.

“I am speechless,” explains Jansen. “I thought this is a serious company and that my data is safe there.”

https://cointelegraph.com/news/german-bitcoin-exchange-hands-out-private-info-to-investigators

[Despite Naysayers the Bitcoin Cash Blockchain Chugs Forward]

Despite Naysayers the Bitcoin Cash Blockchain Chugs Forward

Over the course of the past twelve hours, the Bitcoin Cash (BCH) blockchain has been chugging along as miners have processed a total of 37 blocks so far. Further, the network is operating at 26% of the original chain’s difficulty as mining has become much easier on the BCH chain

The Bitcoin Cash Chain Chugs On With 37 Blocks Mined So Far and Difficulty Much Lower Than the Legacy Chain

The Bitcoin Cash blockchain is still alive, and mining newly minted BCH tokens has become a whole lot easier. At press time three mining pools are participating in finding and confirming blocks on the BCH chain which include Viabtc, pool.bitcoin.com, and an unknown miner. It seems the miner from Hong Kong is not participating anymore or he’s decided not to advertise on the blocks’ corresponding coinbase data. So far approximately 37 blocks have been found by mining pools, and the BCH network is 274 blocks behind the legacy chain.

Block 478577 activated the last adjustment to 26 percent of BTC’s difficulty and many of the BCH blocks have been varying in size from under 1MB, 2MB+, and a 4.6MB block. The BCH chain’s genesis block mined by Viabtc contained over 6.000 transactions. Out of the three pools participating right now, the unknown miner has captured two-thirds of the entire network hashrate and blocks found. Pool.bitcoin.com and Viabtc are capturing the remaining hashpower.

At press time blocks mined are averaging 25 minutes between each other which is far faster than August 2nd’s BCH block times. Yesterday a lot of naysayers believed the chain would not overcome the initial difficulty as the first block of August 2nd took 12 hours to complete. However, Bitcoin Cash is now moving along like “The Lil’ Engine That Could.”

BCH Markets Down 40% Over the Last 24-Hours

Right now BCH markets are dipping in value pretty significantly, and roughly half of Bitcoin Cash markets are being traded in fiat with the other half captured by BTC trades. So far there are not that many exchanges taking BCH deposits, and many wallets still haven’t provided a splitting tool for users. This has made the currency’s $6B market thinner than most cryptocurrency trading markets, which can be seen with the tokens volatile price swings.

At the time of writing one BCH is averaging around $385-430 depending on the exchange used, and has $325M worth of daily trade volume. Meanwhile, BTC markets have been up about 2-3% on August 3 reaching a high of $2745 across global exchanges.



https://news.bitcoin.com/despite-naysayers-the-bitcoin-cash-blockchain-chugs-forward/

[New York City Government Punishes Employee For Mining Bitcoin at Work]

New York City Government Punishes Employee For Mining Bitcoin at Work

The City of New York (NYC) Conflicts of Interest Board has meted a disciplinary action against Vladimir Ilyayev, an employee of the city’s Department of Education, after being caught mining the cryptocurrency Bitcoin using his work computer.

Ilyayev has already admitted that he conducted Bitcoin mining during work hours in 2014.

Based on the public records about the case, the employee has installed mining software that ran at night on his work computer and monitored its progress from his home. The document was signed by Ilyayev, NYC Education Department counsel Karen Antoine, and Conflicts of Interest Board chairperson Richard Briffault.

Part of the public document reads:

"I ran Bitcoin mining software on my [work] computer from 6:00 p.m. until 6:00 a.m. every night from March 19, 2014 until April 17, 2014, when my Bitcoin mining software was shut down by [the Department of Education's] Division of Instructional and Information Technology."

Punishment

After careful and thorough investigation of the case, the board has issued a sanction against Ilyayev for violation of the city’s statutes relating to the use of city time and resources for personal financial gain. He was mandated to forfeit four days of paid annual leave that is worth a total of $611.

Bitcoin mining is an energy intensive process using a computer by which new deals are added to the Blockchain, generating new Bitcoin tokens that are equivalent to the value of the blocks created.

Other Bitcoin mining-related cases in government agencies

Ilyayev’s case is not the first case recorded in the city in relation to Bitcoin mining. In early 2015, a network engineer of the Department of Education was investigated by the Conflicts of Interest Board for trying to run mining software on his work computer. However, he was eventually cleared due to lack of evidence that he successfully mined Bitcoin.

https://cointelegraph.com/news/new-york-city-government-punishes-employee-for-mining-bitcoin-at-work

[btc-e-on refunds the fbi and alexander vinnik]

btc-e-on refunds the fbi and alexander vinnik

On July 31 the bitcoin exchange BTC-e sent a message over Twitter and on the forum Bitcointalk concerning the company’s recent website seizure by U.S. law enforcement. Additionally, the statement claims that Alexander Vinnik was not the head operator of BTC-e and further states the detained Russian was never an employee.

BTC-e Reveals Information on FBI Takedown

Bitcoin.com recently reported on the recent takedown of the exchange BTC-e and the arrest of its alleged operator Alexander Vinnik. According to U.S. law enforcement Vinnik operated the trading platform and laundered $4B worth of bitcoins tethered to illicit activities since 2011. The exchange domain was seized following the arrest of Vinnik by six law enforcement agencies working on the investigation, and now many innocent BTC-e traders are concerned about their holdings. Then on Monday someone who had access to the company’s Twitter handle and Bitcointalk account sent out a message to the public.

“On July 25, FBI staff came to the data center where our server equipment was located and seized all of the equipment, the servers that contained databases and the purses of our service,” explains the translated BTC-e message on the Bitcointalk forum. “For almost six days now we could not get sane information from our hosting provider on what happened to our servers and because of this information we publish now.”

The Exchange Claims it Will Process Refunds Soon

BTC-e also states that other employees servicing the facility were also taken into custody by the FBI. Moreover, the trading platform says it will soon be revealing how it might be able to come back online and start a refund process.

“The next update will include information on what options are available to restore the service, and also the procedure for obtaining funds, in the event that the service is not started. In the current situation, if the service is not started before the end of August, then from September 1 we will start the process for refunds.”


https://news.bitcoin.com/btc-e-on-refunds-the-fbi-and-alexander-vinnik

[Washingtons bitcoin exchange regulations become active]

Washingtons bitcoin exchange regulations become active

Back in April, Washington politicians finished piecing together and finalizing the regulations for bitcoin exchanges. Those guidelines and rules are now active. Lawmakers pushed Senate Bill 5031 through the House and Senate, and it was signed into existence by governor Jay Inslee.

Bill Requirements for Bitcoin Exchanges

The rules declare that anyone who operates a cryptocurrency exchange within Washington must apply for a license from the State. They must also contract with a third party auditor and have their system disrobed and inspected.

The bill states, “For business models that store virtual currency on behalf of others, the applicant must provide a third-party security audit of all electronic information and data systems acceptable to the director.”


Lawmakers also created a rule that says exchanges have to have a bond associated with their business. The figure of the bond has to be tied to the amount of currency transacted in the previous year.

Reaction From Popular Exchanges

As a result of the new law, major exchanges Poloniex and Bitfinex said they would cease conducting business in the state. The new regulations do not seem to jibe with their goals and ability to serve the customer. However, the exchange Gemini has already been granted approval and a license to begin allowing Washington-based clients to buy and sell on their exchange. The Poloniex website read:

" After careful consideration of the Washington State Department of Financial Institutions’ interpretation of its financial services regulations, Poloniex will suspend Washington account creation until further notice. For existing Washington customers, you will receive an email with instructions on how to wind down your account. "

https://news.bitcoin.com/washingtons-bitcoin-exchange-regulations-become-active

[candy]

I saw something that caught my attention as soon as i read this thread:

Thread link


https://bitcointalk.org/index.php?topic=2051623.0

https://www.ethereumplus.org/#team



I had seen these two guys louis stocking and Nominee reyes somewhere, so i decided to search where i had seen these two people and find this:

https://ethtrade.org/






https://www.cryptocompare.com/profile/CryptoInvestor/#/activity

You can also see that candy is part of the ethtrade.org team.


Accusations against ethtrade.org:


https://managingyourfinance.com/ethtrade-review-is-ethtrade-a-scam-or-legitimate-read-before-you-invest

[btc-e domain seizure by us law enforcement sparks jurisdiction questions]

btc-e domain seizure by us law enforcement sparks jurisdiction questions


On July 28, 2017, the bitcoin-exchange BTC-e domain was seized by six U.S. law enforcement agencies including the Secret Service. Many international bitcoin proponents are questioning why the U.S. is claiming jurisdiction over an exchange registered in another country.

BTC-e Domain Seized by U.S. Law Enforcement 

Last week we reported on the U.S. Department of Justice’s (DOJ) charges against the alleged operator of the exchange BTC-e, Alexander Vinnik. The agency has charged Vinnik with nineteen counts of illegal money transmission and money laundering. According to the indictment Vinnik and the bitcoin trading platform, BTC-e helped launder over $4B in illicit funds since 2011. Since Vinnik’s arrest, the website BTC-e has had an “Under Maintenance” static page showing up when visiting the trading platform’s domain.

Bitcoiners worldwide wondered what would happen to the exchange that stopped operating a few days before Vinnik’s detention. According to the DOJ charges, the trading platform faces a fine of $110M, but no one was sure if the site was officially closed. Now visitors of the website see a seizure notice when visiting the domain. The site says the seizure is pursuant to its warrant and was issued by U.S. Homeland Security, the DOJ, the Treasury, the Inspector General, and the nation’s Secret Service.

‘So did I just get robbed by the US Government?’

Of course, much of the discussion from bitcoiners across forums and social media was about the U.S. and its jurisdiction over this exchange. Like many other alleged crimes in the past with well-known characters like Kim Dotcom, the U.S. seems to think it can charge any person or organization even though they never operated on U.S. soil. For instance, Alexander Vinnik was a Russian native who spent time in Cyprus but never lived or operated in the U.S. Secondly, the website BTC-e is registered in New Zealand alongside the platform’s shell company Canton Business Corporation. 

Another topic people have been discussing is the amount of funds left on BTC-e by customers who are completely innocent of any wrong doings. At the moment no one knows how much bitcoin was left on the exchange, but already people are complaining about losses on forums. Some of these customers are not from the U.S. and think it’s outrageous the country is acting like the world’s police once again. One bitcoiner explains his frustrations with the U.S. stepping in and closing BTC-e down;

https://news.bitcoin.com/btc-e-domain-seizure-by-u-s-law-enforcement-sparks-jurisdiction-questions/

[bollywood celebrities embrace bitcoin]

bollywood celebrities embrace bitcoin



Bollywood news recently reported celebrities are going bonkers for bitcoin. Famous Indian entertainers have been tweeting and commenting positively about bitcoin. They appear to find the currency fascinating, and see its potential for future growth. Some of the celebrities include, Shilpa Shetty, Raj Kundra, R. Madhavan, Huma Qureshi Neha Dhupia, Vir Das, Nargis Fakhri, and Prachi Desai, according to a recent Bollywood news article.

Indian Bitcoin Boom Has Enticed Bollywood Big Shots

Bollywood celebs have likely gotten attracted to bitcoin because of its explosion in India. After the Indian government instigated demonetization efforts, alternative forms of currency have spread like wildfire, especially bitcoin. There are now multiple digital exchanges based out of India. The Bollywood News site explained:


"  There are several online portals in India where one can buy and sell Bitcoins. Some of the popular portals are, Coinsecure, Zebpay, Unocoin, BTCXIndia. According to MSN, there are approximately one million Bitcoin users or enthusiasts in India alone, from all walks of life.  "

https://news.bitcoin.com/bollywood-celebrities-embrace-bitcoin/

[the curious cases of the alphabay kingpin and hansa takedowns]

the curious cases of the alphabay kingpin and hansa takedowns



This week we reported on the takedown of the two largest darknet markets on the deep web — Alphabay, and Hansa. Now reports further reveal how global law enforcement seized the alleged Alphabay administrator, Alexandre Cazes, as well as the internal investigation of the Hansa marketplace which collected data on more than 50,000 cryptocurrency transactions.

Law Enforcement Seizes Alleged Alphabay Kingpin’s Luxury Cars and a Crypto-Portfolio Worth $8M

This week the global police force working on infiltrating darknet markets have revealed lots of info about their investigation. Now a forfeiture complaint details the asset seizure of Alexandre Cazes (Desnake), the alleged administrator for the Alphabay marketplace, who was found dead in his cell after his arrest in Thailand. According to the report from the U.S. court, officials confiscated over $8M in assorted cryptocurrencies including bitcoin, ether, and monero. Investigators say they obtained Cazes private keys from a text file found on his computer including another file detailing his net worth of $23M.




The complaint also details how authorities obtained warrants for cryptocurrency exchange accounts by tracing bitcoin transactions that came from the Alphabay administrator’s wallet. Cazes allegedly made commission off of every purchase made on the darknet marketplace. The court document reveals Cazes used cryptocurrency tumblers which processed “tens of millions of dollars in commissions.” Additionally, the report covered the extensive collection of luxury automobiles purchased by Cazes, one of them a Lamborghini worth $1M. Police say that Cazes used his business “EBX Technologies” as a front for his illegal activities and used the company to launder his Alphabay revenue. 

“Approximately 1,605.0503851 bitcoins were seized from Alexandre Cazes and moved to a secure government-controlled bitcoin address,” explains the forfeiture complaint. “ Approximately 293.79476862 bitcoin was moved from server 3203 (Alphabay) to a secure government-controlled bitcoin address.”



Living the life of luxury. One of Alexandre Cazes homes in Thailand. Cazes also maintained properties in Cyprus, Liechtenstein, Switzerland, Antigua, and Barbuda.


Investigators say that the 25-year old Cazes was caught because he used his personal email “Pimp_Alex_91@hotmail.com” and messaged Alphabay users who lost their login credentials. This mistake allowed authorities to trace the email back to Cazes and begin monitoring his activities. Law enforcement has also revealed that Cazes was logged into the Alphabay as an administrator when he was initially arrested, similarly to the Ross Ulbricht arrest.

Dutch Police Infiltrate Hansa Market from Inside

According to the Netherlands Police and Public Prosecutor’s Office, authorities dismantled the Hansa darknet marketplace by taking over the site in early June. Law enforcement ran the illicit market while collecting customer data, sales revenue, and data on 50,000 cryptocurrency sales related transactions. The investigation and taskforce was also conducted with cooperation from officials from Germany, Lithuania, the U.S., and Europol.


“A total of more than 1.000 bitcoins have been seized” details the Netherlands prosecutor’s office."


"On average, 1000 orders were made per day in response to some 40,000 ads. The market place counted in 1765 different sellers. Since the acquisition of Hansa Market’s management, more than 50,000 transactions have been counted, especially for soft and hard drugs."


The darknet taskforce revealed the two Hansa market administrators lived in Germany while other market workers resided in Siegen in the state of North Rhine-Westphalia. Further, the report also reveals that the downfall of the Alphabay was kept “secret” in order to continue working on the inside of Hansa. At the time Bitcoin.com reported on Hansa receiving a large swathe of new registrants and stopped accepting new customers.

“The goal was to attract unsatisfied Alpha Bay users to other marketplaces —  On Hansa Market, the number of visitors increased from 1000 to 8000 per day,” explains the Dutch taskforce.



https://news.bitcoin.com/the-curious-cases-of-the-alphabay-kingpin-and-hansa-takedowns/

[Predicting bitcoin markets is near impossible]

Predicting bitcoin markets is near impossible



There has been a lot of fear, doubt, and panic sweeping through the cryptocurrency world the last few days. Many people made doom and gloom bitcoin price predictions, especially this last Sunday when the price went into a bomb-propelled plunge. People and media sources said this could herald the end of bitcoin or suggest the”bubble” had popped. However, just a few days later, the price started to skyrocket again, vexing naysayers and overturning shortsighted predictions. Looks like they ate their words.

Bloody Sunday Price Analysis

For perspective, lets analyze recent price movement in greater detail. Prior to last weekend, the price was hovering healthily in the upper $2,000 range and flirting with a $3,000 peak. As the weekend rolled around, the price began to plummet. This occurred in lockstep with fearful signals that the bitcoin community would not be able to reach consensus on the scaling debate. So during the wee hours of Sunday, the price dropped roughly 10% to a devastating $1851.49, a record low in recent weeks.

Catastrophic Media Headlines and Price Predictions

During the price downturn, media sources exacerbated fear by writing clickbait headlines to scare people into a panicked frenzy. CBS news wrote on July 14, “Did a Bitcoin Bubble just Burst”? On July 17 Fortune wrote “Wipeout: Bitcoin and Other Digital Currencies in Price Collapse.”

https://news.bitcoin.com/predicting-bitcoin-markets-is-near-impossible/