Bitcoin press hits, notable sources

[julz]

Don't Bank On Digital Currency 'Bitcoin' Replacing The Dollar

Ben DeMeter
2012-04-11

http://www.businessinsider.com/dont-bank-on-digital-currency-bitcoin-replacing-the-dollar-2012-4

What a nasty little piece of FUD this is:

It’s not just safety that has us concerned about Bitcoin, though. We’re also skeptical about how “decentralized” this digital currency can really be. Though the official wiki claims that the protocol is now mandated by community consensus, it’s impossible to ignore the power that the original developers have over the system.

They have a skeleton key that gives them control of the whole machine, any time they want.

[Stephen Gornick]

Congrats, author Ben DeMeter ... you win the prize!   It's been quite some time since there has been so much fail in a single article.

At the moment, the average Bitcoin transaction fee is .99%, while Square and PayPal’s processing apps charge 2.75% and 2.7% per swipe of your credit card.

In Africa, where inflation is out of control, many merchants are choosing to hang onto their bitcoins so that they don’t have to push around wheelbarrows full of $100 trillion notes.

And I think I once read on the internets that in China they're trading kidneys for bitcoins!  (incidentally Kenya leads the list as being the country in Africa with the most bitcoin nodes ... 5: http://pastebin.com/G4dq2vcC )

Unlike your credit card, Bitcoin currently provides no protection or compensation in the event of fraud. Recently, a hacker managed to raid several Bitcoin “bank” accounts – the credit and debit accounts of “rich” Bitcoin users – around the world and got away with $228,845.

Now that money is gone.  In theory, security analysts should be able to trace IP activity while the raids happen, thereby snaring the thieves.

"Rich" Bitcoin users?  How the hell did the Linode breach get spun as "rich users" getting their coins stolen?  And "credit and debit accounts" LOL

We’re also skeptical about how “decentralized” this digital currency can really be. Though the official wiki claims that the protocol is now mandated by community consensus, it’s impossible to ignore the power that the original developers have over the system.

They have a skeleton key that gives them control of the whole machine, any time they want.

In the U.S., the Federal Reserve handles the printing and regulation of the dollar.

If the bitcoin is to become a widely accepted global currency, a regulating agency more complex and thorough than the Fed is required.

In fact, the market price for Bitcoin has been plummeting since 2011.

It’s easy to see how Bitcoin might remain a fixture on the black market and within the larger shadow economy for years to come. But as for your mobile phone? You might as well pass now and save yourself the trouble.

 - http://www.businessinsider.com/dont-bank-on-digital-currency-bitcoin-replacing-the-dollar-2012-4

Oh, and DeMeter's angle?  http://www.creditcardassist.com  (a credit card comparison site)

[SgtSpike]

Wow, that's awful.  Someone should email the editor of that site and inform them of how little DeMeter actually knows about the subjects he writes about!

EDIT:
CEO / Editor-in-Chief: Henry Blodget - hblodget@businessinsider.com
COO / Publisher: Julie Hansen - jhansen@businessinsider.com

[julz]

Eric Thomson is an independent economist in Ottawa, Ontario.

The Canadian Mint Has Unveiled the Blueprint of Bitcoin Successor

Eric Thomson
2012-04-11

http://envelopeeconomics.com/2012/04/11/canada-has-unveiled-the-bitcoin/


...
I am certain that someone will develop an app that will allow people to trade Canadian dollars anonymously via cellphones or the internet, thus eliminating the only small advantage that Bitcoin had. Once mints and central banks around the world start unveiling similar portable digital wallets, and developers swiftly move in to ensure that transactions can be done anonymously, the Bitcoin experiment will end.

[payb.tc]

Eric Thomson is an independent economist in Ottawa, Ontario.

The Canadian Mint Has Unveiled the Blueprint of Bitcoin Successor

Eric Thomson
2012-04-11

http://envelopeeconomics.com/2012/04/11/canada-has-unveiled-the-bitcoin/


...
I am certain that someone will develop an app that will allow people to trade Canadian dollars anonymously via cellphones or the internet, thus eliminating the only small advantage that Bitcoin had. Once mints and central banks around the world start unveiling similar portable digital wallets, and developers swiftly move in to ensure that transactions can be done anonymously, the Bitcoin experiment will end.

dear eric, anon transactions are great, but you forgot the issue of 'quantitative easing'.

[btccomm]

Eric Thomson is an independent economist in Ottawa, Ontario.

The Canadian Mint Has Unveiled the Blueprint of Bitcoin Successor

Eric Thomson
2012-04-11

http://envelopeeconomics.com/2012/04/11/canada-has-unveiled-the-bitcoin/


...
I am certain that someone will develop an app that will allow people to trade Canadian dollars anonymously via cellphones or the internet, thus eliminating the only small advantage that Bitcoin had. Once mints and central banks around the world start unveiling similar portable digital wallets, and developers swiftly move in to ensure that transactions can be done anonymously, the Bitcoin experiment will end.

looks like just a hit piece to me.  who controls the Canadian currency again?  Oh yeah, just look at the obverse of any canadian coin or bill.  freaking lizards

[julz]

Abstract of a paper to be presented at VB 2012 in Dallas, 26-28 September 2012
The Virus Bulletin International Conference is a major anti-malware conference - about to host its 22nd annual event.

Malware taking a bit(coin) more than we bargained for   (Abstract)

Amir Fouda Microsoft
2012-04

http://www.virusbtn.com/conference/vb2012/abstracts/Fouda.xml

Social and technological change often creates new opportunities for positive change. Unfortunately, it also means more opportunities for crime. So, when a new system of currency gains acceptance and widespread adoption in a computer-mediated population, it is only a matter of time before malware authors attempt to exploit it. As of half way through 2011, we started seeing another means of financial profiteering being perpetrated by the malware authors; they started targeting Bitcoins.

Bitcoin mining and stealing functionality has been discovered in a number of the most notable and prevalent malware families, including Alureon, Sirefef and Kelihos. Notably, Bitcoin being open-sourced software means that Windows users are not the only target. Cross-platform attacks have already been seen, with OS X threats such as MacOS_X/DevilRobber.A emerging on the scene in October 2011.

The very nature of the way Bitcoin operates also has telling implications. Bitcoin mining is a legitimate part of the system, allowing Bitcoin clients to compete with other clients in performing complex calculations using the computer's processing power, aiding in the flow of transfers and thus generating Bitcoins for the winning miner. The potential for botmasters is clear: the more computers and resources they can control in this distributed computing technique, the more they are likely to profit.

This paper examines the various malware families that target this currency, provides an analysis of how these families target Bitcoins, and details the methods they use to steal and mine this increasingly popular digital currency. This paper will also give an insight into how malware authors and cybercriminals may exploit the Bitcoin system for their own financial gain, and details what the future holds for this form of exploitation.

[Stephen Gornick]

Banks Will End Up Obsolete as Silent-Film Stars, Unless....
by Kosta Peric
Head of innovation, SWIFT

But the banks are under pressure today to change, due to several factors:

- The advent of complementary currencies (such as airline miles or Facebook credits) and digital currencies (such as Bitcoin and Ven)
- The advent of easy, inexpensive person-to-person international payment schemes (Paypal and others)
- The advent of telecom operators as payment processors in mobile payments schemes not involving banks.

 - http://www.americanbanker.com/bankthink/innovation-disruptive-technology-BankSimple-Movenbank-Bitcoin-1048311-1.html

[julz]

MintChip Misses the Point of Digital Currency

Jon Matonis
2012-04-12

http://www.forbes.com/sites/jonmatonis/2012/04/12/mintchip-misses-the-point-of-digital-currency/

Ironically, one of the leading ideas for the use of MintChip in the MintChip Challenge is to purchase bitcoin with it since it’s irreversible.

[Cyberdyne]

Stephen and Julz, please post your bitcoin addresses to receive some tips.

[julz]

I'll start posting press hits as their own thread from now.

For the subject... I'm using  the format:  'iso date'  'domain'  'article title'

(Due to subject length limitations - article title will probably often be truncated in the subject line.)

[jgarzik]

Locking this topic.

Please post new press hits in the Press board.  Create a new thread for each new story.