Doomstead Diner Menu => Economics => Topic started by: azozeo on November 18, 2017, 02:13:36 PM

Title: P O O F ! Goes The Crypto
Post by: azozeo on November 18, 2017, 02:13:36 PM
https://www.armstrongeconomics.com/world-news/cryptocurrency/ethereum-cryptocurrency-almost-400-million-vanishes/ (https://www.armstrongeconomics.com/world-news/cryptocurrency/ethereum-cryptocurrency-almost-400-million-vanishes/)

Thanks to a string of screw-ups and bugs, an unsuspecting developer recently took possession of an estimated $US390 million worth of the Ethereum cryptocurrency by accident. In an attempt to give back the money, however, the guy ended up locking up the funds permanently. Essentially, the money has just evaporated.

It turns out that hackers started the trouble getting into the cryptocurrency wallet service stealing about $42 million. To then patch the vulnerability to their block-chain technology, they introduced a bug that affected multi-signature wallets. These are wallets which require several people to enter keys before funds get transferred. This was intended to be top security for Ether which is the second largest cryptocurrency. Somehow, a guy called “devops199” triggered the bug and took control of all multi-sig wallets unintendedly. Then devops199 attempted to reverse the process to give back the money which then triggered the bug. The result was the destruction all of the funds. The bug caused a chain reaction of events that locked all multi-signature wallets that cannot now be unlocked.
Welcome to the world of Cryptocurrency.

BTW: Blockchain can be hacked, in case you did not know.
Title: Re: P O O F ! Goes The Crypto. $400,000,000 vanishes
Post by: moniker on November 20, 2017, 07:06:59 AM
https://www.armstrongeconomics.com/world-news/cryptocurrency/ethereum-cryptocurrency-almost-400-million-vanishes/ (https://www.armstrongeconomics.com/world-news/cryptocurrency/ethereum-cryptocurrency-almost-400-million-vanishes/)

Thanks to a string of screw-ups and bugs, an unsuspecting developer recently took possession of an estimated $US390 million worth of the Ethereum cryptocurrency by accident. In an attempt to give back the money, however, the guy ended up locking up the funds permanently. Essentially, the money has just evaporated.

It turns out that hackers started the trouble getting into the cryptocurrency wallet service stealing about $42 million. To then patch the vulnerability to their block-chain technology, they introduced a bug that affected multi-signature wallets. These are wallets which require several people to enter keys before funds get transferred. This was intended to be top security for Ether which is the second largest cryptocurrency. Somehow, a guy called “devops199” triggered the bug and took control of all multi-sig wallets unintendedly. Then devops199 attempted to reverse the process to give back the money which then triggered the bug. The result was the destruction all of the funds. The bug caused a chain reaction of events that locked all multi-signature wallets that cannot now be unlocked.
Welcome to the world of Cryptocurrency.

BTW: Blockchain can be hacked, in case you did not know.

At this point why would anyone buy any cryptocurrency at all. Then answer is the central bankers/cabal are behind it.
Title: Re: P O O F ! Goes The Crypto. $400,000,000 vanishes
Post by: Eddie on November 20, 2017, 08:33:37 PM
I think it was Knarf who posted some article that showed that the vast majority of bitcoin holdings were fairly meager amounts monetarily, while the number of large dollar crypto accounts was vanishingly small. That explains a lot.

It's millions of Chinese trying desperately to offshore whatever modest savings they possess, in any way possible. that's what's driving crypto.
Title: Re: P O O F ! Goes The Crypto. $400,000,000 vanishes
Post by: moniker on November 21, 2017, 12:16:58 AM
I think it was Knarf who posted some article that showed that the vast majority of bitcoin holdings were fairly meager amounts monetarily, while the number of large dollar crypto accounts was vanishingly small. That explains a lot.

It's millions of Chinese trying desperately to offshore whatever modest savings they possess, in any way possible. that's what's driving crypto.
Joseph Farrell has a recent post that the cabal is behind it. I would have to agree if coverage on main and alternative media is analyzed. Looks like a sophisticated psyop Also Lynette zhang gets it right when she says it’s a prelude to the nwo monetary system.
Title: After bitcoin’s wild week, traders brace for futures launch
Post by: RE on December 10, 2017, 02:15:41 AM
https://www.reuters.com/article/us-bitcoin-futures/after-bitcoins-wild-week-traders-brace-for-futures-launch-idUSKBN1E404D (https://www.reuters.com/article/us-bitcoin-futures/after-bitcoins-wild-week-traders-brace-for-futures-launch-idUSKBN1E404D)

After bitcoin’s wild week, traders brace for futures launch
Saqib Iqbal Ahmed

(http://www.greentv.com/wp-content/uploads/2017/11/As-Seen-on-GreenTV-11.28.17.jpg)

5 Min Read

NEW YORK (Reuters) - The newest way to bet on bitcoin, the cyptocurrency that has taken Wall Street by storm with its stratospheric price rise and wild daily gyrations, will arrive on Sunday when bitcoin futures start trading.
Virtual currency Bitcoin tokens are seen in this illustration picture, December 8, 2017. Picture taken December 8. REUTERS/Dado Ruvic/Illustration

The first bitcoin future <0#XBT:> trades are set to kick off at 6 p.m. EST (2300 GMT) on Cboe Global Markets Inc’s (CBOE.O) Cboe Futures Exchange.

The launch has given an extra kick to the cyptocurrency’s scorching run this year. It has nearly doubled in price since the start of December, but recent days saw sharp moves in both directions, with bitcoin losing almost a fifth of its value on Friday after surging more than 40 percent in the previous 48 hours.

Sponsored

But while some market participants are excited about a regulated way to bet on or hedge against moves in bitcoin, others caution that risks remain for investors and possibly even the clearing organizations underpinning the trades.

The futures are cash-settled contracts based on the auction price of bitcoin in U.S. dollars on the Gemini Exchange, owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

“The pretty sharp rise we have seen in bitcoin in just the last couple of weeks has probably been driven by optimism ahead of the futures launch,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin.

Bitcoin fans appear excited about the prospect of an exchange-listed and regulated product and the ability to bet on its price swings without having to sign up for a digital wallet.

The futures are an alternative to a largely unregulated spot market underpinned by cryptocurrency exchanges that have been plagued by cybersecurity and fraud issues.

“You are going to open up the market to a whole lot of people who aren’t currently in bitcoin,” Frederick said.

The futures launch has so far received a mixed reception from big U.S. banks and brokerages.

Interactive Brokers plans to offer its customers access to the first bitcoin futures when trading goes live, but bars clients from assuming short positions and has margin requirements of at least 50 percent.

Several online brokerages including Charles Schwab and TD Ameritrade will not allow the trading of the newly launched futures from day one.

Some of the big U.S. banks including JPMorgan Chase (JPM.N) and Citigroup (C.N), will not immediately clear bitcoin trades for clients, the Financial Times reported on Friday.
Slideshow (4 Images)

Goldman Sachs Group Inc (GS.N) on Thursday said it is planning to clear bitcoin futures for certain clients.
VOLATILITY DAMPENER

Bitcoin’s manic run-up this year has boosted volatility far in excess of other asset classes. The launch of futures may help dampen some of the sharp moves, analysts said.

“Hypothetically, volatility over the long run should drop after institutions get involved,” said Ophir Gottlieb, chief executive of Los Angeles-based Capital Market Laboratories.

“But there may not be an immediate impact, say in the first month,” he said.
Cboe Global Markets Inc125.27
CBOE.ONasdaq
+1.08(+0.87%)
CBOE.O

    CBOE.OJPM.NC.NGS.N

The launch futures on an underlying spot market can lend more order to spot trading in the long run, by facilitating better price discovery and directional bets, not just long bets, J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago, said.

Analysts, however, warn that much of how the futures market will react is a mystery, given that bitcoin is unlike any other asset.

“This is completely unknown territory,” said Charles Schwab’s Frederick.

Fears of inaccurate pricing and systemic risk to clearing houses should prices move sharply and clients fail to meet margin calls remain. Brokers have said that more safeguards are needed to protect against bitcoin’s high volatility.
Related Coverage

    Factbox: Cboe, CME to launch bitcoin futures contracts

For a factbox on the launch of bitcoin futures contracts, see:

The risk of market participants manipulating the underlying spot market to their benefit in the futures market is another big concern.

“Large equity indexes show some volatility around cash settlements and those are in highly liquid, highly regulated venues,” said Steve Sosnick, chief options strategist at Interactive Brokers Group Inc in Greenwich, Connecticut.

“Compare that to cash settlement in bitcoin, and there is a lot more uncertainty on how that would play out.”

(For a graphic on Bitcoin's blistering ascent, click here)

Reporting by Saqib Iqbal Ahmed; Additional reporting by Chuck Mikolajczak; Editing by Meredith Mazzilli
Title: Re: After bitcoin’s wild week, traders brace for futures launch
Post by: moniker on December 10, 2017, 02:12:56 PM
https://www.reuters.com/article/us-bitcoin-futures/after-bitcoins-wild-week-traders-brace-for-futures-launch-idUSKBN1E404D (https://www.reuters.com/article/us-bitcoin-futures/after-bitcoins-wild-week-traders-brace-for-futures-launch-idUSKBN1E404D)

After bitcoin’s wild week, traders brace for futures launch
Saqib Iqbal Ahmed

(http://www.greentv.com/wp-content/uploads/2017/11/As-Seen-on-GreenTV-11.28.17.jpg)

5 Min Read

NEW YORK (Reuters) - The newest way to bet on bitcoin, the cyptocurrency that has taken Wall Street by storm with its stratospheric price rise and wild daily gyrations, will arrive on Sunday when bitcoin futures start trading.
Virtual currency Bitcoin tokens are seen in this illustration picture, December 8, 2017. Picture taken December 8. REUTERS/Dado Ruvic/Illustration

The first bitcoin future <0#XBT:> trades are set to kick off at 6 p.m. EST (2300 GMT) on Cboe Global Markets Inc’s (CBOE.O) Cboe Futures Exchange.

The launch has given an extra kick to the cyptocurrency’s scorching run this year. It has nearly doubled in price since the start of December, but recent days saw sharp moves in both directions, with bitcoin losing almost a fifth of its value on Friday after surging more than 40 percent in the previous 48 hours.

Sponsored

But while some market participants are excited about a regulated way to bet on or hedge against moves in bitcoin, others caution that risks remain for investors and possibly even the clearing organizations underpinning the trades.

The futures are cash-settled contracts based on the auction price of bitcoin in U.S. dollars on the Gemini Exchange, owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

“The pretty sharp rise we have seen in bitcoin in just the last couple of weeks has probably been driven by optimism ahead of the futures launch,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin.

Bitcoin fans appear excited about the prospect of an exchange-listed and regulated product and the ability to bet on its price swings without having to sign up for a digital wallet.

The futures are an alternative to a largely unregulated spot market underpinned by cryptocurrency exchanges that have been plagued by cybersecurity and fraud issues.

“You are going to open up the market to a whole lot of people who aren’t currently in bitcoin,” Frederick said.

The futures launch has so far received a mixed reception from big U.S. banks and brokerages.

Interactive Brokers plans to offer its customers access to the first bitcoin futures when trading goes live, but bars clients from assuming short positions and has margin requirements of at least 50 percent.

Several online brokerages including Charles Schwab and TD Ameritrade will not allow the trading of the newly launched futures from day one.

Some of the big U.S. banks including JPMorgan Chase (JPM.N) and Citigroup (C.N), will not immediately clear bitcoin trades for clients, the Financial Times reported on Friday.
Slideshow (4 Images)

Goldman Sachs Group Inc (GS.N) on Thursday said it is planning to clear bitcoin futures for certain clients.
VOLATILITY DAMPENER

Bitcoin’s manic run-up this year has boosted volatility far in excess of other asset classes. The launch of futures may help dampen some of the sharp moves, analysts said.

“Hypothetically, volatility over the long run should drop after institutions get involved,” said Ophir Gottlieb, chief executive of Los Angeles-based Capital Market Laboratories.

“But there may not be an immediate impact, say in the first month,” he said.
Cboe Global Markets Inc125.27
CBOE.ONasdaq
+1.08(+0.87%)
CBOE.O

    CBOE.OJPM.NC.NGS.N

The launch futures on an underlying spot market can lend more order to spot trading in the long run, by facilitating better price discovery and directional bets, not just long bets, J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago, said.

Analysts, however, warn that much of how the futures market will react is a mystery, given that bitcoin is unlike any other asset.

“This is completely unknown territory,” said Charles Schwab’s Frederick.

Fears of inaccurate pricing and systemic risk to clearing houses should prices move sharply and clients fail to meet margin calls remain. Brokers have said that more safeguards are needed to protect against bitcoin’s high volatility.
Related Coverage

    Factbox: Cboe, CME to launch bitcoin futures contracts

For a factbox on the launch of bitcoin futures contracts, see:

The risk of market participants manipulating the underlying spot market to their benefit in the futures market is another big concern.

“Large equity indexes show some volatility around cash settlements and those are in highly liquid, highly regulated venues,” said Steve Sosnick, chief options strategist at Interactive Brokers Group Inc in Greenwich, Connecticut.

“Compare that to cash settlement in bitcoin, and there is a lot more uncertainty on how that would play out.”

(For a graphic on Bitcoin's blistering ascent, click here)

Reporting by Saqib Iqbal Ahmed; Additional reporting by Chuck Mikolajczak; Editing by Meredith Mazzilli
Futures price is above spot.
Title: Bitcoins, Crypto-Currencies and Other Financial Asset Bubbles
Post by: RE on December 11, 2017, 12:56:42 AM
https://jackrasmus.com/2017/12/09/bitcoins-crypto-currencies-and-other-financial-asset-bubbles-excerpt/

Jack Rasmus
Predicting the Global Economic Crisis

« Bitcoin, Cryptos, and Financial Asset Bubbles–audio
Bitcoins, Crypto-Currencies and Other Financial Asset Bubbles (excerpt)

(https://img.etimg.com/thumb/msid-61889795,width-672,resizemode-4,imgsize-324193/wealth/invest/want-to-gamble-on-the-bitcoin-bubble-beware-the-exchange-may-not-be-genuine/bitcoin-bubble-getty.jpg)

December 9, 2017 by jackrasmus

The following is an excerpt from my forthcoming article by the same title in the december-january issue of the European Financial Review. Many of the themes covered in my last friday’s Alternative Visions radio show on the topic of the Bitcoin-Crypto bubble are addressed in the article in print form.

The US and global economy are approached the latter stages in the credit cycle, during which financial asset bubbles begin to appear and the real economy appears to be at peak performance (the calm before the storm). This scenario was explained in my 2016 book, ‘Systemic Fragility in the Global Economy‘. In coming weeks I will be posting in serial form the concluding chapter of that book for readers on this blog, entitled ‘A Theory of Systemic Global Fragility‘.

Here’s the excerpt from the forthcoming European Financial Review article; (a book review of my most recent book, ‘Central Bankers at the End of Their Ropes?’ by Dr. Larry Souza will also appear in that coming EFR issue).

………………………..
Is Bitcoin a Bona Fide ‘Bubble’?
……………………………
“What’s a financial asset bubble? Few agree. But few would argue that Bitcoins and other crypto currencies are today clearly in a global financial asset bubble. Bitcoin and other crypto currencies are the speculative investing canary in the global financial asset coalmine.

One can debate what constitutes a financial bubble—i.e. how much prices must rise short term or how much above long term average rates of increase—but there’s no doubt that Bitcoin price appreciation in 2017 is a bubble by any definition. At less than $1000 per coin in January, Bitcoin prices surged past $11,000 this past November. It then corrected back to $9,000, only to surge again by early December to more than $15,000. Given the forces behind Bitcoin, that scenario is likely to continue into 2018 before the bubble bursts. The question of the moment, however, is what might be the contagion effects on other markets?”

……………………………..
What’s Driving the Bitcoin Bubble?
……………………………..
If Blockchain and software tech company ICOs are driving Bitcoin and other crypto pricing, what’s additionally creating the bubble?…..Who is buying Bitcoin and cryptos, driving up prices, apart from early investors in the companies? ……the absence of government regulation and potential taxation of speculative profits from price appreciation has served as another important driver of the Bitcoin bubble bringing in still more investors and demand and therefore price appreciation. No regulation, no taxation has also led to price manipulation by ‘pumping and dumping’ by well positioned investors….. Another factor driving price is that Bitcoin has become a substitute product for Gold and Gold futures……But what’s really driving Bitcoin pricing in recent months well into bubble territory is its emerging legitimation by traditional financial institutions………futures and derivatives trading on Bitcoin are set to begin in December 2017 in official commodity futures clearing houses, like CME and CBOE…..Bitcoin ETFs derivatives trading are likely not far behind……….big US hedge funds are also poised to go ‘all in’ once CME options and futures trading is established…… Declarations of support for Bitcoin has also come lately from some sovereign countries………While CEOs of big traditional commercial banks, like JPM Chase’s Jamie Dimon, have called Bitcoin “a fraud”, they simultaneously have declared plans to facilitate trading in the Bitcoin-Crypto market.

…………………………………………….
Bitcoin as ‘Digital Tulips’
…………………………………………….
Bitcoin demand and price appreciation may also be understood as the consequence of the historic levels of excess liquidity in financial markets today. Like technology forces, that liquidity is the second fundamental force behind its bubble. To explain the fundamental role of excess liquidity driving the bubble, one should understand Bitcoin as ‘digital tulips’, to employ a metaphor.

The Bitcoin bubble is not much different from the 17th century Dutch tulip bulb mania. Tulips had no intrinsic use value but did have a ‘store of value’ simply because Dutch society of financial speculators assigned and accepted it as having such. Once the price of tulips collapsed, however, it no longer had any form of value, save for horticultural enthusiasts.

What fundamentally drove the tulip bubble was the massive inflow of money capital to Holland that came from its colonial trade in spices and other commodities in Asia. The excess liquidity generated could not be fully re-invested in real projects in Holland. When that happens, holders of the excess liquidity create new financial markets in which to invest the liquidity—not unlike what’s happened in recent decades with the rise of unregulated global shadow banking, financial engineering of new securities, proliferating liquid markets in which securities are exchanged, and a new layer of professional financial elite as ‘agents’ behind the proliferating new markets for the new securities.

……………………………………………
Bitcoin Potential Contagion Effects to Other Markets
…………………………………………….
A subject of current debate is whether Bitcoin and other cryptos can destabilize other financial asset markets and therefore the banking system in turn, in effect provoking a 2008-09 like financial crisis………….Deniers of the prospect point to the fact that Cryptos constitute only about $400 billion in market capitalization today. That is dwarfed by the $55 Trillion equities and $94 trillion bond markets. The ‘tail’ cannot wag the dog, it is argued. But quantitative measures are irrelevant. What matters is investor psychology. ……For example, should cryptos develop their own ETFs, a collapse of crypto ETFs might very easily spill over to stock and bond ETFs—which are a source themselves of inherent instability today in the equities market. A related contagion effect may occur within the Clearing Houses themselves. If trading in Bitcoin and cryptos as a commodity becomes particularly large, and then the price collapses deeply and at a rapid rate, it might well raise issues of Clearing House liquidity available for non-crypto commodities trading. A bitcoin-crypto crash could thus have a contagion effect on other commodity prices; or on ETFs in general and thus stock and bond ETF prices.”

copyright Jack Rasmus, 2017
Title: Re: Bitcoins, Crypto-Currencies and Other Financial Asset Bubbles
Post by: Eddie on December 11, 2017, 04:02:23 PM
https://jackrasmus.com/2017/12/09/bitcoins-crypto-currencies-and-other-financial-asset-bubbles-excerpt/

Jack Rasmus
Predicting the Global Economic Crisis

« Bitcoin, Cryptos, and Financial Asset Bubbles–audio
Bitcoins, Crypto-Currencies and Other Financial Asset Bubbles (excerpt)

(https://img.etimg.com/thumb/msid-61889795,width-672,resizemode-4,imgsize-324193/wealth/invest/want-to-gamble-on-the-bitcoin-bubble-beware-the-exchange-may-not-be-genuine/bitcoin-bubble-getty.jpg)

December 9, 2017 by jackrasmus

The following is an excerpt from my forthcoming article by the same title in the december-january issue of the European Financial Review. Many of the themes covered in my last friday’s Alternative Visions radio show on the topic of the Bitcoin-Crypto bubble are addressed in the article in print form.

The US and global economy are approached the latter stages in the credit cycle, during which financial asset bubbles begin to appear and the real economy appears to be at peak performance (the calm before the storm). This scenario was explained in my 2016 book, ‘Systemic Fragility in the Global Economy‘. In coming weeks I will be posting in serial form the concluding chapter of that book for readers on this blog, entitled ‘A Theory of Systemic Global Fragility‘.

Here’s the excerpt from the forthcoming European Financial Review article; (a book review of my most recent book, ‘Central Bankers at the End of Their Ropes?’ by Dr. Larry Souza will also appear in that coming EFR issue).

………………………..
Is Bitcoin a Bona Fide ‘Bubble’?
……………………………
“What’s a financial asset bubble? Few agree. But few would argue that Bitcoins and other crypto currencies are today clearly in a global financial asset bubble. Bitcoin and other crypto currencies are the speculative investing canary in the global financial asset coalmine.

One can debate what constitutes a financial bubble—i.e. how much prices must rise short term or how much above long term average rates of increase—but there’s no doubt that Bitcoin price appreciation in 2017 is a bubble by any definition. At less than $1000 per coin in January, Bitcoin prices surged past $11,000 this past November. It then corrected back to $9,000, only to surge again by early December to more than $15,000. Given the forces behind Bitcoin, that scenario is likely to continue into 2018 before the bubble bursts. The question of the moment, however, is what might be the contagion effects on other markets?”

……………………………..
What’s Driving the Bitcoin Bubble?
……………………………..
If Blockchain and software tech company ICOs are driving Bitcoin and other crypto pricing, what’s additionally creating the bubble?…..Who is buying Bitcoin and cryptos, driving up prices, apart from early investors in the companies? ……the absence of government regulation and potential taxation of speculative profits from price appreciation has served as another important driver of the Bitcoin bubble bringing in still more investors and demand and therefore price appreciation. No regulation, no taxation has also led to price manipulation by ‘pumping and dumping’ by well positioned investors….. Another factor driving price is that Bitcoin has become a substitute product for Gold and Gold futures……But what’s really driving Bitcoin pricing in recent months well into bubble territory is its emerging legitimation by traditional financial institutions………futures and derivatives trading on Bitcoin are set to begin in December 2017 in official commodity futures clearing houses, like CME and CBOE…..Bitcoin ETFs derivatives trading are likely not far behind……….big US hedge funds are also poised to go ‘all in’ once CME options and futures trading is established…… Declarations of support for Bitcoin has also come lately from some sovereign countries………While CEOs of big traditional commercial banks, like JPM Chase’s Jamie Dimon, have called Bitcoin “a fraud”, they simultaneously have declared plans to facilitate trading in the Bitcoin-Crypto market.

…………………………………………….
Bitcoin as ‘Digital Tulips’
…………………………………………….
Bitcoin demand and price appreciation may also be understood as the consequence of the historic levels of excess liquidity in financial markets today. Like technology forces, that liquidity is the second fundamental force behind its bubble. To explain the fundamental role of excess liquidity driving the bubble, one should understand Bitcoin as ‘digital tulips’, to employ a metaphor.

The Bitcoin bubble is not much different from the 17th century Dutch tulip bulb mania. Tulips had no intrinsic use value but did have a ‘store of value’ simply because Dutch society of financial speculators assigned and accepted it as having such. Once the price of tulips collapsed, however, it no longer had any form of value, save for horticultural enthusiasts.

What fundamentally drove the tulip bubble was the massive inflow of money capital to Holland that came from its colonial trade in spices and other commodities in Asia. The excess liquidity generated could not be fully re-invested in real projects in Holland. When that happens, holders of the excess liquidity create new financial markets in which to invest the liquidity—not unlike what’s happened in recent decades with the rise of unregulated global shadow banking, financial engineering of new securities, proliferating liquid markets in which securities are exchanged, and a new layer of professional financial elite as ‘agents’ behind the proliferating new markets for the new securities.

……………………………………………
Bitcoin Potential Contagion Effects to Other Markets
…………………………………………….
A subject of current debate is whether Bitcoin and other cryptos can destabilize other financial asset markets and therefore the banking system in turn, in effect provoking a 2008-09 like financial crisis………….Deniers of the prospect point to the fact that Cryptos constitute only about $400 billion in market capitalization today. That is dwarfed by the $55 Trillion equities and $94 trillion bond markets. The ‘tail’ cannot wag the dog, it is argued. But quantitative measures are irrelevant. What matters is investor psychology. ……For example, should cryptos develop their own ETFs, a collapse of crypto ETFs might very easily spill over to stock and bond ETFs—which are a source themselves of inherent instability today in the equities market. A related contagion effect may occur within the Clearing Houses themselves. If trading in Bitcoin and cryptos as a commodity becomes particularly large, and then the price collapses deeply and at a rapid rate, it might well raise issues of Clearing House liquidity available for non-crypto commodities trading. A bitcoin-crypto crash could thus have a contagion effect on other commodity prices; or on ETFs in general and thus stock and bond ETF prices.”

copyright Jack Rasmus, 2017


I don't think the tulip analogy works here, although any fool can see cryptos are in a bubble. I'd say the bubble is mostly being driven by fairly poor Chinese people hoping to get their money into any asset not completely controlled by their despotic regime. There are an infinitesimally small number of really big bitcoin accounts, and a whole lot more (95%) that only have a tiny position. The big players will no doubt head for the exits quietly at some point and leave the peons holding the proverbial bag.

You do have to distinguish between blockchain technology and actual cryptocurrecnies, which are not one and the same.

Title: Bitcoin Futures: 3 Nightmare Scenarios
Post by: RE on December 12, 2017, 03:19:20 AM
7 more pages at the link.

RE

(https://i.ytimg.com/vi/NYwGKzQjwKI/hqdefault.jpg)

https://seekingalpha.com/article/4131235-bitcoin-futures-3-nightmare-scenarios

Bitcoin Futures: 3 Nightmare Scenarios
Dec.12.17 | About: Bitcoin Investment (GBTC)
Kyle Spencer

Long/short equity, special situations, contrarian, research analyst
(1,315 followers)
Summary

The CBOE's launch of Bitcoin futures on Sunday was a watershed event for Crypto, but Wall Street (mostly) stayed away.

Investment banks continue to have very real concerns about the stability about the risks associated with crypto derivatives.

They'll eventually get with the program, but not until their concerns about manipulation, counterparty risk and contango are addressed.

No matter how you look at it, the CBOE's launch of Bitcoin (OTCQX:GBTC) (COIN) futures on Sunday night - one week ahead of its rival CME - was a watershed event. Not since Facebook's IPO back in May of 2012 have the eyes of so many non-financial professionals been glued to a trading screen. Within minutes of the 6 PM EST open, the lookie-loos crashed the CBOE website, prompting CBOE to rush out a Twitter advisory.

With the media frenzy and all the new attention from millennials who, until a few weeks ago, weren't even aware of the existence of the Chicago Board Options Exchange, one could be forgiven for thinking that Bitcoin futures had taken Wall St. by storm.

Trading opened on a quiet note, but quickly picked up steam as the night wore on. By 6:35 PM EST, just 341 lots had traded, with each lot representing one bitcoin. By 8:00 PM, 800 lots had traded. The session ended on a high note, with about 2,700 contracts trading hands. While certainly respectable (when VIX (VIXY) trading opened in 2004, its first day haul was a paltry 421 contracts), it was a drop in the ocean compared to Bitcoin's $14.58 billion unregulated 24-hour trading volume from Dec. 9th to 10th. By way of comparison, about the same amount of money traded hands for #56 rated Power Ledger over unregulated exchanges in the same time frame.

Why? Simple: The institutional money didn't show.

It may seem awkward at first blush that people whose very livelihood depends on the marketing and managing of risk should shy away from a frothy instrument that guarantees just that, but Wall Street's financial titans are taking no chances. Even Goldman Sachs (GS), the investment bank famously described as "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money" by Rolling Stone's Matt Taibbi in 2010 - limited its involvement to clearing trades for only a small, select group of clients. Per Goldman Sachs spokeswoman Tiffany Galvin:

    “Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process.”

In fact, Goldman's wait-and-see approach is positively enlightened compared to its fellow megabanks, who penned a scathing open letter under the umbrella of the Futures Industry Association to CFTC chairman Giancarlo, in which they wrote that -

    "while we greatly appreciate the CFTC’s efforts to receive additional assurances from these exchanges, we remain apprehensive with the lack of transparency and regulation of the underlying reference products on which these futures contracts are based and whether exchanges have the proper oversight to ensure the reference products are not susceptible to manipulation, fraud, and operational risk."

Translation: There is simply no compelling reason for Wall Street banks who are just now beginning to shrug off the shackles of Dodd Frank and seemingly endless fines and widespread social revulsion associated with the financial crash of '08, who spend mountains of money every year on AML/KYC compliance, to bear the brunt of the risk associated with making markets in cryptoassets in the middle of the second longest bull market in history. Why take the risk and get dragged through the mud for another decade in penance?...
Title: Coinbase halts ether and litecoin trading: cryptocurrency market approaches $5B
Post by: RE on December 12, 2017, 10:59:06 AM
http://www.businessinsider.com/coinbase-halts-ether-and-litecoin-trading-2017-12 (http://www.businessinsider.com/coinbase-halts-ether-and-litecoin-trading-2017-12)

Coinbase halts ether and litecoin trading as cryptocurrency market approaches $500 billion

    Frank Chaparro

(http://static1.businessinsider.com/image/5a300d640b0f2755008b4ab8-776/screen%20shot%202017-12-12%20at%20120940%20pm.png)
Screen Shot 2017 12 12 at 12.09.40 PM MI

    Coinbase, the popular cryptocurrency trading platform, blocked users Tuesday from buying red-hot litecoin and ether.
    Investors poured into the two red-hot digital currencies Tuesday morning, pushing them both to new heights.
    Litecoin hit a record of $312 on Tuesday, while ether soared over to more than $600 for the first time.
    The cryptocurrency market is gunning for $500 billion.

 

Cryptomania has propelled two lesser-known cryptocurrencies to record highs Tuesday, forcing one exchange to halt trading.

Screen Shot 2017 12 12 at 1.01.59 PM Coinbase

Coinbase on Tuesday halted trading of red-hot litecoin and ether, according to cryptocurrency watcher CoinDesk. The publication tweeted a photo showing Coinbase "temporarily disabled" trades of the two digital coins on its platform.

Coinbase's status page showed ethereum and litecoin were experiencing major outages.

Both litecoin and ether hit all-time highs Tuesday morning.

Ether hit $600 a token, while litecoin gained more than 40% to $312.

Across the market for digital coins, new investors are pouring in. The 10 largest cryptocurrencies were all trading in the green Tuesday, according to data provider CoinMarketCap.

At the time of print, the entire market nearly reached $500 billion. Cryptocurrencies volumes approached record highs above $35 billion.

The launch of bitcoin futures by Cboe Global Markets, the Chicago exchange group, further pushed bitcoin and other cryptocurrencies into the spotlight. The new futures market, which went live Sunday, could pave the way for a bitcoin-linked exchange-traded fund and dampen bitcoin's spine-tingling volatility. Of course, the 1,000% plus returns across the market has also piqued the interest of Wall Street and Main Street investors.

Enthusiasts think the new found interest in the crypto-world will intensify in 2018.

"2018 will be the year of mass public awareness for bitcoin and cryptocurrency," Perry Woodin, CEO of Node40, said in preparded remarks sent to Business Insider. "It is going to be the year when every friend and relative will want to know how much you have and how to purchase it."

Still, many market watchers see a massive bubble in the crypto-market. Even Mike Novogratz, a famed hedge fund manager turned crypto-investor, called it "the biggest bubble of our lifetimes."

Litecoin's founder also chimed in on the frenzy. The former director of engineering at crypto exchange Coinbase tweeted a dire warning for potential litecoin holders Monday night:

"Sorry to spoil the party, but I need to reign in the excitement a bit…," he wrote. "Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can't handle LTC dropping to $20, don't buy!"

A spokeswoman for Coinbase told Business Insider, "The site is seeing high traffic volume at the moment and some users may be experiencing intermittent service outages."
Title: Bitcoin fever exposes crypto-market frailties
Post by: RE on December 14, 2017, 12:01:42 AM
https://www.reuters.com/article/us-markets-bitcoin-risks-insight/bitcoin-fever-exposes-crypto-market-frailties-idUSKBN1E7254 (https://www.reuters.com/article/us-markets-bitcoin-risks-insight/bitcoin-fever-exposes-crypto-market-frailties-idUSKBN1E7254)

#Business News
December 13, 2017 / 6:46 AM / Updated 15 hours ago
Bitcoin fever exposes crypto-market frailties
Jemima Kelly, Anna Irrera

(https://s2.reutersmedia.net/resources/r/?m=02&d=20171213&t=2&i=1214172601&r=LYNXMPEDBC1EH&w=1280)

9 Min Read

LONDON/NEW YORK (Reuters) - As bitcoin raced to another record high on Tuesday, one of the biggest providers of digital currency wallets, Coinbase, went down under the weight of traffic, leaving many of its more than 10 million customers unable to access their funds.
FILE PHOTO: A coin representing the bitcoin cryptocurrency is seen on computer circuit boards in this illustration picture, October 26, 2017. REUTERS/Dado Ruvic/File Photo

At the same time, Bitfinex, the world’s biggest bitcoin exchange by trading volume, said it was under a heavy denial-of-service (DDoS) attack, meaning its servers had been intentionally flooded with junk online requests, taking down its website and crippling its services.

The latest outages show how the market infrastructure for an immature and volatile instrument that millions of investors have piled into may be ill-equipped to cope with sudden shifts in demand, which is worrying some investors.

During a particularly volatile period of trading on Dec. 7, bitcoin surged from below $16,000 to $19,500 in less than an hour on Coinbase’s exchange GDAX, while it was changing hands at less than $16,000 on another, Bitstamp.

As trading volume surged, GDAX and Coinbase went down at least 10 times because of “record-high traffic”, Coinbase said.

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“More people are engaging with our platform than ever and that bodes well for the future of the digital currency. At the same time, it does create extreme volatility and stress on our systems,” the company’s director of business operations, David Farmer, said.

“We can confirm that there has been no unusual or suspicious activity. All we know right now is that there is a large amount of traffic,” he told Reuters.

Bitfinex said it had been under a sustained DDoS attack since last week.

“While last week the platform traded continuously, to effectively perform emergency maintenance, we took the website down for a brief time today (Tuesday) to mitigate further issues for customers,” a spokesman said.

“We are constantly improving our systems to ensure that we’re able to both accommodate the immense volume of trading that occurs on our platform while also fending off sustained DDoS attacks,” he said.
24/7 MARKET

Daniel Masters, founder of Global Advisors Bitcoin Investment Fund, worries the exchanges would struggle to cope if there were a sudden rush for the exit.

“The ability of these platforms to handle volume is yet to be tested properly,” he said. “What happens if this market turns into a lot of sellers? The liquidity itself could be an issue.”

Charles Cascarilla, chief executive of New York-based company Paxos, which operates cryptocurrency exchange itBit, told Reuters that dealing with spikes in volume was a problem faced by all exchanges, not just cryptocurrency platforms.

“Clearly the reality is the world of cryptocurrency is growing at an exponential rate right now and everyone is doing their best to expand infrastructure, but it is hard to know what would happen in a hypothetical scenario,” he said.
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Cameron Winklevoss, co-founder of the Gemini exchange, an early bitcoin investor and an outspoken supporter of the cryptocurrency, said the risk the wider market would suffer badly if one exchange went down no longer existed, as trading volume had become more evenly spread.

“We are definitely beyond the too-big-to-fail situation,” he told Reuters. “That was a problem we had five years ago when Mt. Gox accounted for 95 percent of volume.”

“Most of the exchanges are doing a good job. This is a 24/7 market, there is no session close and there is no downtime.”

Mt. Gox, the world’s biggest bitcoin exchange at the time, collapsed in 2014 after hackers stole 650,000 bitcoins, triggering a collapse in the bitcoin price.

The demise of Mt. Gox left more than 24,000 customers unable to access hundreds of millions of dollars of cryptocurrency and cash. More than three years later none has recouped a cent.
BITCOIN FUTURES

Some investors had said they were worried the launch of bitcoin futures by the world’s biggest derivative exchanges could exacerbate volatility by prompting some traders to take out large positions betting on a price fall in the future.
FILE PHOTO: A Bitcoin logo is displayed at the Bitcoin Center New York City in New York's financial district in NY, U.S. on July 28, 2015. REUTERS/Brendan McDermid/File Photo

The Chicago-based Cboe Global Markets Inc. futures launched a futures contracts on bitcoin on Dec. 10 and CME Group Inc will launch a rival contract a week later.

So far this week, the launch of futures by Cboe does not appear to have created any additional volatility, with price moves less violent than last week’s wild trading.

But Tim Swanson, a bitcoin expert and founder of Post Oak Labs, a technology advisory firm, said he was concerned that if the futures liquidity increases there could be an incentive for someone with a large bet against bitcoin to disrupt or attack the network to make money from the ensuing price fall.

CME Group and Cboe declined to comment.

Flooding the bitcoin network with tiny transactions could potentially send the price down sharply, said Swanson, as could sending many sell-signals to the market that are not honored - so-called spoofing, which is illegal in regulated markets.

A surge in bitcoin trades in recent weeks has also left the blockchain network that the cryptocurrency relies on to process and verify transactions struggling to keep up.

As of Wednesday at 1445 GMT, more than 125,000 bitcoin transactions remained unconfirmed.

In the past week, more than half a million new users have opened wallets with retail-focused bitcoin wallet provider Blockchain, the firm said, taking the total number of users to more than 20 million, from 10 million last year.

The London-based company has also been struggling to keep up, citing “record traffic levels” last week.
VOLATILE TRADING

Created in 2008, bitcoin uses encryption and a shared blockchain database that enables the anonymous transfer of funds outside of a conventional centralized payment system.

But there is little evidence to suggest buyers are using bitcoin as a means of exchange and payment. On the whole, they buy the cryptocurrency as a speculative investment, attracted by massive price gains, said Garrick Hileman, a research fellow at the University of Cambridge’s Judge Business School.

As a result, some banks say they are worried that a collapse in bitcoin would have a knock-on effect on investments by individual investors in other asset classes.

Deutsche Bank said in a report on Dec. 7 that a bitcoin crash - and the impact it could have on retail investors’ confidence - was one of the biggest risks to markets in 2018.

Periods of high volatility are not uncommon in other currencies and asset classes, particularly in commodities and emerging markets. But bitcoin’s volatility is extreme, and frequent: the one-day price move has been more than 10 percent on nine days in the past three months.

Moves of a similar magnitude for the U.S dollar, for example, are extremely rare. Its biggest one-day move against a major currency was in January 2015 when the Swiss central bank abandoned a cap on the franc, sending the dollar down 18 percent.

Some bitcoin watchers, such as Swanson, also worry about the risk of one of the big exchanges being suddenly shut by authorities.

In July, U.S. authorities shut down the website of the BTC-e exchange, saying it had “facilitated transactions involving ransomware, computer hacking, identity theft, tax refund fraud schemes, public corruption, and drug trafficking”.

BTC-e, which is no longer operating, could not be reached for comment.

The top three exchanges out of more than 100 - Bitfinex, GDAX and bitFlyer - are home to more than 60 percent of all trading, according to data provider Bitcoinity.

Another issue specific to the market is the risk of hacking and theft. More than 980,000 bitcoins have been stolen from exchanges, Reuters has found, with the Mt. Gox heist accounting for the majority.

Last week, a Slovenian cryptocurrency mining marketplace, NiceHash, said it had lost about $64 million worth of bitcoin in a hack of its payment system.

For graphic on bitcoin's blistering ascent, click: tmsnrt.rs/2zClJF3

Reporting by Jemima Kelly and Anna Irrera; additional reporting by Amanda Cooper; editing by David Clarke
Title: Re: P O O F ! Goes The Crypto. $400,000,000 vanishes
Post by: Palloy2 on December 19, 2017, 05:45:38 PM
I don't know if this is the same attack, but this attack got away with 4,000 bitcoins and the company has gone bankrupt. "Very sorry".

http://www.zerohedge.com/news/2017-12-19/asian-crypto-traders-spooked-after-korean-exchange-files-bankruptcy (http://www.zerohedge.com/news/2017-12-19/asian-crypto-traders-spooked-after-korean-exchange-files-bankruptcy)
Crypto Traders Spooked After Korean Bitcoin Exchange Files For Bankruptcy
Tyler Durden
Dec 19, 2017

A cryptocurrency exchange in South Korea collapsed on Tuesday after it suffered a second cyberattack in eight months and lost a large amount of its digital-currency reserves. This spooked Asian investors who sold Bitcoin (and other cryptos).

As The Wall Street Journal reports, Yapian, the company that operates a Seoul-based exchange called Youbit, suspended digital-currency trading and filed for bankruptcy after its systems were hacked in the predawn hours of Tuesday. The exchange trades 10 virtual currencies including bitcoin and ethereum.

Yapian said in a statement that the latest security breach caused it to lose 17% of its total assets. The company didn’t specify the type of virtual currencies that were stolen or the financial value of its losses. In April, Youbit, formerly called Yapizon, lost 4,000 bitcoins now worth $73m to cyberthieves.

Users of the exchange with digital coins in their online accounts were told by Youbit on Tuesday that they could withdraw about 75% of their cryptocurrency for the time being. The remaining balances would be returned after the company goes through bankruptcy proceedings, it said.

It said it was "very sorry" that it had been forced to shut down.

Once again however, the dip in BTC is being bought off the lows...

 

Ethereum had surged overnight (touching almost $900 in overnight trading) but was also sold on the Korea news...

However, on the positive catalyst side, CoinTelegraph reports that in 2018 central banks will hold cryptocurrency, alongside gold and foreign currencies, according to the CEO of Blockchain.info, Peter Smith.

Speaking in a short interview on CNBC’s Coin Rush segment, Smith forecast that next year would see the first such incorporations of crypto into traditional financial institutions, saying:

    “I think this year will be the first year we start to see central banks start to hold digital currencies as part of their balance sheet.”

2018 will be the year that central banks hold digital currencies: Blockchain CEO from CNBC.

Bitcoin’s rapid rise this year, from around $1,000 in January to $20,000 this week, has attracted the attention of banks, governments and regulators globally. In some markets banks specifically have adopted varying and sometimes polarizing, views on the cryptocurrency’s future.

While South Korea’s Shinhan announced it would become the first major bank to offer customers Bitcoin wallets and storage, the Governor of Denmark’s central bank this week described Bitcoinas “deadly” and urged citizens to stay away from it. 

As a trend, Smith continued, central banks would likely begin to issue their own branded digital assets “either late this year or early next year.”

Multiple governments, including Russia's, are considering issuing a national digital currency, and Dubai has already officially decided to do so.

During the interview, when quizzed about the likelihood of a “major hack” occurring in the crypto space in the future, Smith said that since it had been around five months since the last major hack, the ecosystem was “due for one in the next month or two.” Speaking of his own company, he told CNBC:

    “We’ve been one of the biggest targets for a long time; it keeps you busy.”

Title: Re: P O O F ! Goes The Crypto. $400,000,000 vanishes
Post by: Palloy2 on December 19, 2017, 06:25:33 PM
https://www.businessinsider.com.au/one-of-the-co-founders-of-bitcoincom-has-sold-all-of-his-bitcoin-2017-12 (https://www.businessinsider.com.au/one-of-the-co-founders-of-bitcoincom-has-sold-all-of-his-bitcoin-2017-12)
The Swedish co-founder of Bitcoin.com has sold all his bitcoins
Tom Turula
Dec 19, 2017

Emil Oldenburg, the CTO and co-founder of bitcoin.com has spent the past three years in Tokyo. Oldenburg is also the co-founder of Safello, a Swedish bitcoin exchange.

    Bitcoin is “as good as useless” and has no future as a tradeable currency says Emil Oldenburg, the co-founder and CTO of bitcoin.com, one of the world’s largest bitcoin websites.
    Oldenburg has sold his bitcoins and believes others will do the same when they realize how illiquid the market is.
    He says bitcoin’s drawbacks are high fees and transaction lead times – a heated topic of discussion in the community today – and resistance to change from people running the old bitcoin network.
    Oldenburg believes there’s a brighter future for Bitcoin Cash, a spinoff currency of bitcoin that is now being actively promoted by bitcoin.com.

Bitcoin.com is one of the world’s largest bitcoin sites, having grown its profile this year thanks to the remarkable price surge of the cryptocurrency. But its cofounder and CTO, Emil Oldenburg, a Swedish native, is extremely skeptical when it comes to bitcoin’s future.

”I would say an investment in bitcoin is right now the riskiest investment you can make. There’s an extremely high risk,” he says in an interview with Swedish tech site Breakit.

Although Oldenburg is far from the first to criticize the cryptocurrency’s viability as an investment asset, his position as an industry insider does stand out – even as he migrates to its spinoff, bitcoin cash (BCH).

“I have in fact sold all my bitcoins recently and switched to bitcoin cash,” he says, referring to the currency that split from bitcoin in August and recently overtook Ethereum as the world’s second-largest cryptocurrency. Bitcoin Cash has also gained the strong support of Oldenburg’s co-founder, Roger Ver.

Oldenburg’s big problem with bitcoin is high transaction costs and lead times. Indeed, by some counts, bitcoin transaction fees are doubling every three months, and it now takes on average 4,5 hours to confirm a bitcoin transaction. Ars Technica reported that fees reached $26 per trade recently.
“When people realize how bitcoin works, they will start to sell”

While buying, selling or trading bitcoin is not an issue today, Oldenburg says, problems surface when bitcoin transactions are recorded on the blockchain, the digital ledger that records each transaction.

There’s only a limited amount of transactions per second you can make in the bitcoin network, which in part depends on the “block size” of the memory that store the transactions on the blockchain. This bottleneck makes for a highly risky and illiquid cryptocurrency, Oldenburg says, adding that “the old bitcoin network is as good as unusable.”

The reason why bitcoin holders haven’t understood these risks, according to Oldenburg, is because most have so far only bought the cryptocurrency – but never sold or traded with them.

“As soon as people realize that this is how it works, they will start to sell,” he says to Breakit.
Read More: Bitcoin’s illiquidity is going to be a huge problem when the bubble bursts

As the chart below shows, the lead times and fees associated with bitcoin transactions seem only to be increasing as new investors crowd the market in chase of quick returns.

(https://edge.alluremedia.com.au/uploads/businessinsider/2017/12/5a33fd7c4aa6b519158b51df-1.jpg)

This chart shows a seven-day average of the total number of minutes it takes to conduct a bitcoin transaction, since May 2016. In short, the average transaction time has been rising with the price of bitcoin. Source: Blockchain Luxembourg SARL

Even though these “up to 12-hour transaction lead times” (when moving bitcoin to and from exchanges) could be adressed, Oldenburg sees no signs of change, because the currency is purportedly being run by the ”old” bitcoin network, the members of which he calls “fanatical bitcoin talibans”.

”[They] want things this way. They see bitcoin as a digital gold and a technical experiment, as opposed to something you can actually use.”
“Bitcoin Cash is the future”

In a move that could be considered ironic, Oldenburg says bitcoin.com is distancing itself from bitcoin (BCT) and has even stopped developing services around it – to mostly focus on bitcoin cash (BCH).

“It only costs $0,012 [BI Nordic: 10 Swedish “öre”, the centesimal subdivision of krona] to send a [Bitcoin Cash transaction] and there are no lead times. The only drawback is that you need larger hard drives, but that’s not a problem for most people,” Oldenburg says to Breakit.

Oldenburg says the bigger “block size” limit of Bitcoin Cash, currently at 8Mb – as opposed to bitcoin’s 1Mb – leads to lower transaction fees and a safer, more liquid investment.

All in all, he doesn’t believe bitcoin will be the currency for everyday use the world has been hoping for.

“Not as long as the network is run by this group of people [in the old bitcoin network]. The solutions will be found in bitcoin cash, that’s where I see a future.”

Based out of Tokyo but registered on S:t Kitts, bitcoin.com has tens of millions of unique monthly visitors, according to Similarweb, a web analytics site.

Bitcoin.com – not to be confused with the non-revenue making bitcoin.org – was founded in 2015 by bitcoin investor Roger Ver, and provides a range of services related to bitcoins, including a bitcoin casino, news services and its so called bitcoin “mining pool” – the site’s biggest single source of revenue – where it forges new units of the cryptocurrency to be released for trading.

That said, the company has a heavy vested interest in the cryptocurrency markets, with Roger Ver taking an open stance for the new Bitcoin Cash and against “Bitcoin Core” (i.e., BCT) for reasons similar to Oldenburg’s.

Oldenburg doesn’t want to talk about bitcoin.com revenues or to what extent they depend on trades in BCH versus BCT, but he reveals to Breakit the company makes “an awful lot of money”.

As do its employees. Seeing that bitcoin.com pays its employees’ salaries in bitcoin, many have struck gold on this year’s price surge, Oldenburg says.

“All my salary in the past three years has been paid in bitcoin,” he says.
Title: Re: P O O F ! Goes The Crypto. $400,000,000 vanishes
Post by: RE on December 20, 2017, 12:53:01 AM
I don't know if this is the same attack, but this attack got away with 4,000 bitcoins and the company has gone bankrupt. "Very sorry".

...and...It's Gone!

http://www.youtube.com/v/TGwZVGKG30s

RE
Title: South Korean Bitcoin Exchange Goes Bankrupt After Getting Hacked Again
Post by: RE on December 21, 2017, 03:19:21 AM
...and...it's gone!

RE

https://nextshark.com/south-korean-bitcoin-exchange-goes-bankrupt-getting-hacked/

South Korean Bitcoin Exchange Goes Bankrupt After Getting Hacked Again
Ryan General
By Ryan General
Posted on December 20, 2017

(https://nextshark-vxdsockgvw3ki.stackpathdns.com/wp-content/uploads/2017/12/bitcoin-2868703_1280.jpg)

Following a significant loss of Bitcoin assets due to its second alleged hacking this year, South Korean cryptocurrency exchange Youbit has announced that it is now shutting down and filing for bankruptcy.

The cyber attack, which reportedly caused a loss worth 17% of the exchange’s total assets, has further raised security concerns in local cryptocurrency trading in South Korea, Reuters reports.

Youbit suffered its first hacking back in April, losing almost 4,000 Bitcoin in the process. According to local media reports, South Korea’s spy agency has linked North Korea to the attack. Without elaborating on the actual amount lost in the latest attack, Youbit announced on its website that 17% of its total assets were indeed stolen via hacking at 4:35 a.m. local time on Tuesday.

“There were no additional losses, as other coins were in the cold wallet,” Youbit’s owner, Yapian, said Tuesday.

Due to the incident, all Youbit customers’ Bitcoin assets have been temporarily marked down to 75% of its total value per individual until the company moves through bankruptcy proceedings. As a precaution to minimize further customer losses, the exchange has also seized trading.

Youbit is a minor player in South Korea’s robust cryptocurrency market, with Seoul-based Bithumb, the world’s busiest virtual currency exchange, covering about 70%  of the local market share.

Cyber Crime agency Korea Internet & Security Agency (KISA) has confirmed that it has started an investigation into the hacking along with the police, according to the BBC. Bitcoin’s continuous surge in valuations in recent months has reportedly made cryptocurrency exchanges and wallets constant targets of cyber attacks.

Bitcoin has been so well received in South Korea that even the prime minister was prompted to warn that cryptocurrencies might corrupt the nation’s youth. The Bitcoin frenzy in Korea has reached to a point where locals are trading Bitcoin at a premium of about 23% higher than prevailing international rates, Bloomberg reports.

Security experts warn that they will continue to become more vulnerable to cyber-crime attacks as Bitcoin further increases its value in the future. Bitcoin has traded its highest record so far at over $19,000 per coin on Monday before dropping back to $16,800 per bitcoin the following day.
Title: A new hack serves as a reminder of Bitcoin’s structural flaws
Post by: RE on December 22, 2017, 02:23:10 AM
https://www.salon.com/2017/12/21/a-new-hack-serves-as-a-reminder-of-bitcoins-structural-flaws/ (https://www.salon.com/2017/12/21/a-new-hack-serves-as-a-reminder-of-bitcoins-structural-flaws/)

A new hack serves as a reminder of Bitcoin’s structural flaws
The latest string of hacks and alleged insider trading raise questions about cryptocurrency institutions

(https://securecdn.pymnts.com/wp-content/uploads/2017/01/bitcoin-exchange-operator-jpmorgan-hack.jpg)

Nicole Karlis12.21.2017•1:11 PM

A virtual heist hit a Bitcoin exchange in Seoul — again.

Youbit, a South Korea cryptocurrency exchange, announced it was closing its doors after digital robbers stole an undisclosed number of bitcoins. The exchange was hacked for the first time in April, when an estimated 4,000 bitcoins were stolen. While bitcoin has dramatic, sometimes hourly fluctuations in value, at today's going exchange rate of $15,000 USD per bitcoin, such a hack would equate to around $61 million lost; although in April, the same sum of bitcoin would be worth only around $4 million, as they were trading near $1,000 per bitcoin back then.

This more recent hack took a reported 17 percent of Youbit's assets, according to a Reuters report. The precise amount was not specified. The Reuters report also noted that the Korea Internet & Security Agency (KISA) is investigating the cyberattack.
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The previous hack of Youbit in April was reportedly linked to a hacker group in North Korea. Indeed, North Korea is suspected to be the culprit in this latest hack, though that remains unconfirmed.

This also marks the second time this week that North Korea has been blamed for a cyberattack.

The hack of Youbit comes at a moment of truth for cryptocurrencies. In the past month, bitcoin reached its highest value ever. That, and the announcement that both the Chicago Board of Exchange and the Chicago Mercantile Exchange would allow futures trading in Bitcoin, also gave the currency mainstream appeal.

Youbit isn’t the only cryptocurrency exchange to suffer a PR nightmare. CNBC reported yesterday that Coinbase, a U.S.-based exchange, was under scrutiny for alleged insider trading. On Dec. 19, the value of Bitcoin Cash — a currency which spun off of bitcoin — started to rise immediately prior to Coinbase’s announcement that it would be supporting it, a coincidence that raised suspicion. Brian Armstrong, Coinbase’s co-founder, wrote a Medium post detailing the company’s trading policy, and announced that an investigation had been launched.
 
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“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action,” he wrote.

While reports such as these might make one skeptical of the structural underpinnings of cryptocurrency, one expert says it might not be the cryptocurrency that is flawed — but rather the institutions exchanging and holding the cryptocurrency.

“It’s not the inherent security of bitcoin that was attacked, it was the security of the organizations that are keeping track,” Clifford Neuman, Director of USC's Center for Computer Systems Security, told Salon.

Neuman explained that these exchanges are no different than banks, but they are subjected to fewer regulations, which could be linked to their unforgiving vulnerabilities.

“If the exchange holds funds on behalf of its customers, either in its own Bitcoin wallet, or in Bitcoin wallets that it manages on behalf of its customers, then a hack to the system managed by the exchange can allow the attacker to obtain private keys associated with the bitcoin accounts or otherwise cause transactions to be initiated,” he said.

Yet some argue that the lack of regulation surrounding bitcoin is precisely the source of its appeal. Economist Joseph Stiglitz argued recently that bitcoin is "successful only because of its potential for circumvention, lack of oversight." Yet if the lack of regulation surrounding bitcoin is part of its appeal, it is also a drawback: hacks, insider trading, dramatic fluctuations, and a lack of a "bank" or somewhere to put one's money have become the norm.

More worrisome is the process of tracking and penalizing the criminals who orchestrate these hacks. And given that cyber-thieves may be orchestrating hacks from across the planet, or working under the guise of state intelligence agencies, it is unclear if many are even in the grasp of law enforcement.
Title: Bitcoin Plummets Below $14,000; Peter Schiff Says 'Mark It Zero'
Post by: RE on December 22, 2017, 03:31:35 AM
http://www.zerohedge.com/news/2017-12-21/crypto-carnage-continues-bitcoin-down-5000-record-highs-schiff-says-mark-it-zero (http://www.zerohedge.com/news/2017-12-21/crypto-carnage-continues-bitcoin-down-5000-record-highs-schiff-says-mark-it-zero)

[size=18pt][b]Bitcoin Plummets Below $14,000; Peter Schiff Says 'Mark It Zero'[/b][/size]

Tyler Durden's picture
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Update: 1005ET: The carnage across cyrptocurrencies has escalated with Bitcoin back to a $13K handle, Ethereum back below $700, and Bitcoin Cash below $2,600...

Bitcoin is now almost $6,000 off its record high...

For those who are keeping track...

Related Video
A Rival Bitcoin Was Just Created From Within
 

X

 

ETH and BCH in trouble too...

In fact almost the entire crypto space is collapsing with Ripple the only gainer for now...

There continues to be no obvious catalyst for the run.

Volume is heavy in futures tonight too...

 

The question is - which happens first - Bitcoin $10,000 or Gold $1,300?

*  *  *

After an exuberant few days following Coinbase's adoption of Bitcoin Cash, the forked currency has collapsed back below $3,000...

For the 4th night in the last 5, someone has started slamming Bitcoin at around 8pmET, pushing the biggest cryptocurrency back below $15,000 for the first time in two weeks...

Catalysts for the drop are unclear other than systematic selling pressure as Asia opens. There was chatter about the lack of security in South Korean local exchanges, but it is unlikely that is the cause for now.

Since CME launched its futures contract, Bitcoin has been under pressure and renowned market watcher Peter Schiff is pretty clear where he thinks this ends up...

As CoinTelegraph reports, speaking to RT this week, renowned analyst Peter Schiff, credited for predicting the 2008 housing market collapse, issued a foreboding warning to investors buying Bitcoin at current prices.

Even with a shaky week, Bitcoin is hovering around the $15,000 mark, after a two-month bull run that saw the price rise by more than 200 percent.

Schiff says those trying to ride the bubble are too late:

“People who got it years ago, even people who got it at the beginning of the year have the opportunity to cash out and make a lot of money. But people who are buying it at these prices or higher prices are going to lose practically everything.”

The old adage, “buy on the rumor and sell on the news,” seems to be the perfect way to sum up Schiff’s sentiments on the current attitude of green investors trying to make a quick buck out of Bitcoin:

“These currencies are going to trade to zero or pretty close to it when the bubble pops. Right now, the only reason why people are buying Bitcoin is because the price is going up. When it turns around, they are not going to sell it for the same reason."

He also voiced by now common criticism of Bitcoin Core’s transaction functionality, noting the low speed and high cost of transactions on the network:

“There is no value in Bitcoin, you can’t use it as money. It’s too slow, too expensive and too vulnerable.”

Still with gold's recent weakness, we are sure Peter has more than  a small ax to grind on this one.

Title: Bitcoin plunges below $12,000, heads for worst week since 2013
Post by: RE on December 22, 2017, 10:30:07 AM
How low can we go?

RE

https://in.reuters.com/article/us-global-bitcoin/bitcoin-plunges-below-12000-heads-for-worst-week-since-2013-idINKBN1EG0AA (https://in.reuters.com/article/us-global-bitcoin/bitcoin-plunges-below-12000-heads-for-worst-week-since-2013-idINKBN1EG0AA)

Bitcoin plunges below $12,000, heads for worst week since 2013
Jemima Kelly, Gertrude Chavez-Dreyfuss

(http://reut.rs/2BVVXQd)

5 Min Read

NEW YORK/LONDON (Reuters) - Bitcoin plunged by a quarter to below $12,000 on Friday as investors dumped the cryptocurrency in manic trading after its blistering ascent to a peak close to $20,000 prompted warnings by experts of a bubble.

It capped a brutal week that had been touted as a new era of mainstream trading for the volatile digital currency when bitcoin futures debuted on CME Group Inc (CME.O), the world’s largest derivatives market on Sunday.

Sponsored

Friday’s steep fall bled into the U.S. stock market, where shares of companies that have recently lashed their fortunes to bitcoin or blockchain - its underlying technology - took a hard knock in early trading.

The biggest and best-known cryptocurrency had seen a staggering twentyfold increase since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange BTC=BTSP on Sunday and to over $20,000 on other exchanges.

Bitcoin has fallen each day since, with losses accelerating on Friday.

In the futures market, bitcoin one-month futures <0#XBT:> on Cboe Global Markets were halted due to the steep price drop, while those trading on the CME BTCF8 hit the limit down threshold.

In the spot market, bitcoin fell to as low as $11,159, down more than 25 percent on the Luxembourg-based Bitstamp exchange BTC=BTSP, its largest one-day drop in nearly three years. For the week, it was down around a third - its worst performance since April 2013.
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“After its parabolic-like rally, a crash was imminent and so it has proved,” said Fawad Razaqzada, market analyst at Forex.com in London. “Investors may have also been put off buying bitcoin at those elevated levels amid repeated warnings from experts about the way it had climbed near $20,000.”

“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London. “A lot of traders have been waiting for this large correction.”

“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.

Warnings about the risks of investing in the unregulated market have increased - Denmark’s central bank governor called it a “deadly” gamble - and there have been worries about the security of exchanges on which cryptocurrencies are bought and sold.
FILE PHOTO: A collection of Bitcoin (virtual currency) tokens are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration/File Photo

South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year.

Coinbase, a U.S. company that runs one of the biggest exchanges and provides digital “wallets” for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp increase in the price of a bitcoin spin-off hours before it announced support for it.
CRYPTO-RIVALS

As rival cryptocurrencies slid along with bitcoin, the total estimated value of the crypto market fell to as low as $440 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier.
CME Group Inc149.49
CME.ONasdaq
-1.39(-0.92%)
CME.O

    CME.O

But other cryptocurrencies surged this week, with investors moving into cheaper digital coins, rather than cashing out of the sector.

Ethereum, the second-biggest cryptocurrency by market size, soared to almost $900 earlier in the week, from around $500 a week earlier. Ripple, the third-biggest, has more than quadrupled in price since Monday.

Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said that there have also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.

“Most of it is unsophisticated retail traders getting burned badly,” Innes said on bitcoin’s recent retreat.
Related Coverage

    Factbox: Companies change names, businesses to ride the crypto wave
    Factbox: Companies change names, businesses to ride the crypto wave

While some say the launch by CME and its rival Cboe Global Markets of bitcoin futures over the last two weeks has given the digital currency some perceived legitimacy, many policymakers remain sceptical.

Bitcoin is known to go through wild swings. In November, it tumbled almost 30 percent in four days from $7,888 to $5,555. In September, it fell 40 percent from $4,979 to $2,972.

To view a graphic on Bitcoin moves this year click on this link reut.rs/2BVVXQd
Reuters Graphic

Reporting by Gertrude Chavez-Dreyfuss in New York and Jemima Kelly in London; Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Keith Weir and Susan Thomas
Our Standards:The Thomson Reuters Trust Principles.
Title: Wolf Richter on Bitcoin Mania
Post by: RE on December 26, 2017, 06:52:19 AM
http://www.youtube.com/v/tGARD4AI7_4
Title: I’m in Awe of How Far the Scams & Stupidities around “Blockchain Stocks” are Goi
Post by: RE on December 28, 2017, 12:24:44 AM
https://wolfstreet.com/2017/12/28/im-in-awe-of-how-far-the-scams-stupidity-around-blockchain-stocks-are-going/

I’m in Awe of How Far the Scams & Stupidities around “Blockchain Stocks” are Going
by Wolf Richter • Dec 28, 2017 • 1 Comment   

(https://steemitimages.com/DQmVWHS6xnfFfDwX7zW8CVfrfLkoMchZQxJu9Eu41isbwhB/Bitcoan-Ponzi-Scheme-Scam-Alert.jpg)

This can happen only during the very late stage of a bubble.

It just doesn’t let up. UBI Blockchain Internet, a Hong Kong outfit whose shares trade in the US [UBIA], filed with the SEC to sell an additional 72.3 million shares owned by its executives. In other words, it isn’t selling the shares to raise money for corporate purposes, but to allow its executives, including CEO Tony Liu, to bail out.

This is happening after the company – which sports zero revenues and a disconnected phone number in its SEC filings – managed to get its shares to spike briefly by over 1,100%, pushing its market capitalization to $8 billion.

UBI Blockchain didn’t do an IPO. Instead, in October 2016, it acquired a publicly traded shell company registered in Las Vegas, called “JA Energy.” It then changed the name and ticker symbol to what they’re now.

Over the six trading days starting on December 11, 2017, its shares soared over 1,100%, from $7.20 to $87 on December 18, as the word “blockchain” in its name and sufficient hype and speculator-idiocy took hold. By December 21, shares had plunged 67% to $29. They closed on Wednesday at $38.50. At this price, it still has a ludicrous market cap of $3.64 billion.

by Cboe

In its prospectus for the share sale, filed with the SEC on December 26, UBI explains the overcooked spaghetti of its dreamed-up activities:

    UBI Blockchain Internet Ltd. business encompasses the research and application of blockchain technology with a focus on the Internet of things covering areas of food, drugs and healthcare. Management plans to focus its business in the integrated wellness industry, by providing procedures for safety and effectiveness in food and drugs, but also preventing counterfeit or fake food and drugs. With the advancement of the blockchain technology, the Company plans to trace a food or drug product from its original source within the context of the Internet of Things to the final consumer.

It explains that “management is uncertain that the Company can generate sufficient revenues in the next 12-months to sustain our operations. We shall need to seek additional funding to continue our operations and implement our plan of operations.”

It added that “due to the uncertainty of our ability to meet our financial obligations and to pay our liabilities as they become due,” the auditors in the financial statement for the year ended August 31, 2017, questioned “our ability to continue as a going concern.”

For the year, UBI had an operating loss of $1.83 million on zero revenues. It had $15,406 in cash, and: “In order to keep the company operational and fully reporting, management anticipates a burn rate of approximately $220,000 per month, pre and post-offering.”

    Without any additional funding, the Company will be unable to operate. Therefore, if we are unable to generate sufficient revenues, we must raise additional capital in order to continue operations in order to implement our plan of operations.

Alas, all of the shares will be sold by existing shareholders. The company “will not receive any proceeds from the sale of the common stock by the selling stockholders.” So even after the sale of the shares, it will have no cash to operate on.

The selling shareholders are the CEO Tony Liu and five other “individuals.” Speculators who buy these shares will hand their money to those individuals – not the company. And the company still has nothing, no revenues, no business model, no cash….

This wasn’t the only outfit to leverage the word “blockchain” to create hype and extract billions from gullible speculators.

There’s Longfin [LFIN]. The company went public in the US on December 13, 2017. In its SEC filing, it said it had revenues of $298,786 in the year 2017 and was sitting on $75 in cash. What sent the stock soaring 2,700%, from $5 to $142.82 in a few days, and gave it briefly a market capitalization of over $7 billion, was the December 15 announcement – an elegant and apparently very effective mix of gobbledygook, hype, and silliness that started out like this:

    Longfin Corp., a leading global FinTech company, announces the acquisition of Ziddu.com, a Blockchain-empowered solutions provider that offers Microfinance Lending against Collateralized Warehouse Receipts in the form of Ziddu Coins.

What actually happened, according to Longfin’s SEC filing: Longfin bought an asset called “Ziddu.com” from Meridian Enterprises, a Singapore corporation, 95% of which is owned by Longfin’s CEO and chairman.

On Wednesday, Longfin shares closed at $59.95, down 58% from its peak a few days ago.

This total insanity over outfits claiming to have a blockchain-related activity has been an ongoing movement over the past few weeks and months.

Shares of Digital Power Corp., a dotcom-bust survivor, if barely, soared 880% from $0.56 on November 21 to $5.50 on December 18, though it shares have since plunged to $4.05. The company makes lowly power supplies for computers, but after it announced that it would aim its power supplies at cryptocurrency miners, its shares took off.

There is a gaggle of others with similar trajectories: Beverage-maker Long Island Iced Tea soared 280% within seconds after it announced that it would change its name to Long Blockchain; also Riot Blockchain, Seven Stars Cloud Group, Siebert Financial Corp, among others. They all have minuscule or no revenues, though their combined market capitalization is many billions.

That these companies get away with this, that in fact speculators fall for this crap, that they’re stupid enough to bet what are in aggregate many billions of dollars in a matter of seconds after “blockchain” flashes across their screens, is a sign of just how far the global flood of liquidity has befuddled the minds of these speculators and turned them into knee-jerk betting automatons. This phenomenon happens only during the very late stages of a bubble. But going back over the last three bubbles and crashes, to 1987, I have never seen anything this crazy. This is truly awe-inspiring.

Leverage is the great accelerator on the way up and on the way down. Read…  Peak Good Times? Stock Market Risk Spikes to New High
Title: 12 changes that could shake up the blockchain world in 2018
Post by: RE on January 01, 2018, 03:09:30 PM
https://venturebeat.com/2018/01/01/12-changes-that-could-shake-up-the-blockchain-world-in-2018/

12 changes that could shake up the blockchain world in 2018
Jeremy Epstein, Never Stop Marketing@jer979   January 1, 2018 12:45 PM

(https://venturebeat.com/wp-content/uploads/2018/01/crypto.jpg?fit=578%2C409&strip=all)
Image Credit: jamesteohart/Shutterstock
VB Recommendations

    12 changes that could shake up the blockchain world in 2018
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If there is one thing I have learned in the last two years in the cryptocurrency world, it’s that things change so quickly in this sector, it can humble anybody. Anyone who says he knows what he is talking about, doesn’t!

Still, it’s New Year’s Day, so what the heck? I’ll put my neck out there with 12 predictions for 2018:
1. Ripple will lose its luster

People will realize that Ripple is a cool business but that it doesn’t actually require a protocol token to work. There are a number of other protocols (including some VERY high market cap ones) that also don’t require a token to work.  The market will start to weed them out. That said, Ripple will be a valuable company because of the service it provides. It just won’t be a valuable protocol. The protocol multiples are much higher. Disclosure: I previously owned XRP, but don’t hold any now.
2. The Lightning Network will face the big test

Either Lightning will work and Bitcoin will regain its prominence as THE default cryptocoin in the world, or it will fail miserably and Bitcoin will continue to fall further and further behind as a coin of relevance. If that happens, Bitcoin Cash becomes the “real” Bitcoin.

To me, it’s a coin toss. I’m playing catchup on this one as I sold a lot of my BCH when it came out in favor of BTC, thinking SegWit2x would happen, but I was wrong. Ouch.
3. The privacy wars will begin as people recognize the difference between pseudonymity and anonymit

When they do, the competition will intensify for adoption of a “privacy” coin like

    Zcash (disclosure: They’re a client and I’m biased)
    Monero (which seems to be the privacy coin of choice on the Dark Web).
    Dash has amazing marketing (Amanda B. Johnson is probably the best in the business) but questions abound about the reputation of some of the leadershp team, weaknesses within the masternode setup and possibly even legal implications.
    PIVX which has a fun team and is really fast plus can integrate with Slack.

I predict that one or two of these coins will be recognized as the next Bitcoin within the mainstream media. There are a lot of factors here that will determine the winner, but I it will come down to whose security mentality is superior. We’ll only know that after a few big attacks.
4. The DAO market will take off

The DAO market, currently led by companies like Aragon, Colony, District0x, and DAOStack — will soon have a few proof-of-concept DAOs running. It’ll be interesting to hear the metrics they report in terms of set up time, user base, types of activities/DAOs in operation, etc. These protocols have massive opportunity (as I wrote previously on VentureBeat), though the vision in this market may be way ahead of the tech.

If there are 50 or so legit projects in pilot in 2018, then this sector is on a fast pace. I’m planning a pilot DAO of my own, by the way, so I’ll be updating readers about what the process looks like from the inside.
5. More decentralized AI startups will emerge

Last month, blockchain-based AI-as-a-Service startup SingularityNet’s ICO sold out in 60 seconds, pulling in $36 million. It set the $36 million cap after receiving requests for $360 million worth of its tokens from investors. There will be more ICOs like this one. Since money attracts money, we will see a lot of people leaving high priced AI jobs at big tech firms like Google and Facebook to pursue billion-dollar paydays at the next crypto-AI protocol. We will probably see 10 crypto AI ICOs that are at least $50 million. For more on decentralized AI, see my earlier article here.
6. Ethereum will be the standard … or not

By now, we all know that CryptoKitties brought the Ethereum network to its knees. Ethereum cofounder Vitalik Buterin knows it too and is very aware of the challenges he and his team face.

I had the opportunity to spend time with Buterin and Ethereum developer Vlad Zamfir a few weeks ago, and — although I think the “Vitalik as Wunderkind” narrative is dangerous — I walked away from our conversation very impressed. These two are very thoughtful, articulate, open-minded, and brilliant. There are a ton of things that need to be done to prepare Ethereum to handle the scale and speed the community will need (as I have outlined before), but these two are both smart and humble enough that they could do it.

That said, with all of Ethereum’s issues, there is room for other, newer blockchains like NEM, QTUM, EOS, or AION to start closing the gap, if not overtake the platform. If we see more than 100 projects built on any one of those platforms, I think we’ll be seeing the emergence of an Ethereum contender. If not, Ethereum will keep its hold on the lead.
7. Interoperability protocols will remain immature

I’m rooting for interoperability players — like Polkadot, Cosmos and new entrants like Lamden and Metronome — that will enable transactions and information exchanges between different blockchains. But I think it will be a while before they really get off the ground. In the long term, they’ll enable a multi-blockchain world. But in the short term, they’ll increase the load on key blockchains like Ethereum and Bitcoin and so won’t likely get much love from those communities just yet. I expect them to be a bit quiet for the time being. For more on this sector, see my earlier story.
8. We’ll see more Crypto Valleys beyond Zug

I lead a quarterly trip to “Crypto Valley” in Zug, Switzerland as part of the Crypto Explorers Association. The next one is January 29, which is sold out, but applications are open for the April trip. See the site for details.

We’ve been approached by governments in places like Oman and Panama that want to set up Crypto Valleys in their geographies and use CryptoExplorers as a way of introducing themselves to the world. They have studied what Zug has done to drive innovation and job creation and they want to do that themselves.

That tells me governments in tier 2 or tier 3 locations see blockchain/crypto as a way to “leapfrog” tier 1 economies in the way Estonia did in the 1990s, going straight to a digital first country. (You can read about my experiences as an e-citizen of Estonia here.)

These new Crypto Valleys will try to become blockchain-first locations. And I think we will see two or three of them make it. I’m not talking about Dubai, Singapore, Tel Aviv, or Berlin. I’m talking about unexpected places like Bratislava, Florianopolis, Panama City, and Muscat.
9. Crypto will go mainstream

Three of the top 10 retail brokers in the U.S. will allow you to buy 1-5 cryptocurrencies directly from their websites, just as you do today with stocks or mutual funds. Coinbase, currently the most popular exchange for crypto newcomers, only supports four currencies at the moment. Unless it wants to start losing ground, it will need to improve its infrastructure and execute a plan for world domination.
10. ICOs will go mainstream

I think we will see the first legitimate ICOs take place on Indiegogo in February, or March at the latest. I predict that, over the course of the year, we will see at least nine more, for a total of 10 in 2018. (Here is Indiegogo’s original announcement.)
11. Reverse ICOs will intensify

Kik did the first reverse ICO; now YouNow is about to do one. I think we’ll see at least 15-20 more reverse ICOs in 2018. A “reverse ICO” is when an existing company decentralizes itself and issues tokens to its members to stimulate a circular economy. This is as opposed to a ICO from a brand new startup project. All this activity will require the services of a new type of professional — the tokenization consultant — so expect to see that role catch on in 2018, too. For more on reverse ICOs, see here.
12. Regulation will get more serious

I’m cautiously optimistic U.S. authorities will be relatively lenient on blockchain startups so as not to impede innovation. But companies that are negligent or outright deceptive will get shut down. ICOs will have to adhere to KYC/AML policies, and their solutions will have to scale. If you look at SEC Chairman Jay Clayton’s letter from December 12, he is pretty clear about the importance of crypto-innovation, and he deserves credit for that. But he is also putting decentralized projects on notice, saying essentially that ignorance of the law is not a defense. I think this is a healthy balance.

The bottom line: If you thought 2017 was crazy, get ready for a lot more upheaval in 2018. This crypto thing is just getting started. Happy New Year!

Jeremy Epstein is CEO of Never Stop Marketing and author of The CMO Primer for the Blockchain World. He currently works with startups in the blockchain and decentralization space, including OpenBazaar, IOTA, and Zcash.
Title: Crypto mining and outside control of markets
Post by: Palloy2 on January 04, 2018, 05:45:07 PM
After a power cut, when my computers came back on, my Minergate "balance" had gone to zero. I think it was only a theoretical balance and maybe not a real one, so it might suddenly reappear later.

Clearly a lot of money is going IN to cryptos at the moment. It hardly seems like normal trading. So there must be some heavy hitters in there - maybe Goldman Sachs and co?  Why not?

https://www.zerohedge.com/news/2018-01-04/anatomy-crypto-nightmare-ripple-ceo-now-richer-zuckerberg (https://www.zerohedge.com/news/2018-01-04/anatomy-crypto-nightmare-ripple-ceo-now-richer-zuckerberg)
Anatomy Of A Crypto-Nightmare: Ripple CEO Is Now Richer Than Zuckerberg
Tyler Durden
Thu, 01/04/2018

Having soared 36,000% last year and continuing its crazy run in 2018, Ripple has surged ahead of Ethereum as the second-largest cryptocurrency by market cap.

    Bitcoin $246BN
    Ripple $143BN
    Ethereum $97BN

 Leaving Mike Novogratz breathlessly berating the craziness as Ripple's CEO is now the 5th richest man in the world.

But it is Tom Luongo that is most-concerned at this "crypto-nightmare" and for good reason.

Amidst all of the bullish talk about cryptocurrencies we know that a strike back from the banking system and its owners is coming.  In fact, the attack as I see it is well underway.

And it began with the attack on the credibility of Bitcoin Cash and it’s continuing with the insane pump of Ripple and any coin which has direct ties to old money.  What I want to posit today is how the next crash in the cryptocurrency markets can, and likely will, play out.

To lay this out you have to believe a few things are true.

    The major money center banks have all been trading Bitcoin and other alt-coins for a long time. They have substantial books to push and pull the price.
    The futures market is used to control the price during daytime hours in the U.S. and Europe.
    Bitcoin’s failure to implement ‘Segwit 2x’ and its current dysfunction was intentional in order for Blockstream to offer a ‘solution’ to a ‘problem’ that needn’t have existed.
    Lightning Network is simply a backup control plan in case Ripple isn’t adopted by the marketplace as the crypto-settlement and exchange layer. It creates a second layer of centralization off-chain.
    Legislation and regulation to date has been designed to allow money to flow into the crypto-markets but not back out again.

Ripple, otherwise known as ‘BanksterCoin’ among we crypto-enthusiasts is the stalking horse of the cryptocurrency industry.  It’s meteoric rise in price coincides with Bitcoin’s peak and subsequent meandering.  It was done, timing-wise, to see articles like these (here, here and here) written as we ring in the new year.

The Bitcoin Trap

Look at the situation in Bitcoin.  After the failure to implement the New York Agreement, something that didn’t have to be an all-or-nothing proposition, Bitcoin spiked from $5000 to a high near $20,000 in less than a month.  Transaction fees soared, exchanges became illiquid, getting alt-coins off some exchanges was difficult as many were revealed (at least in the short term) to not have supply of the underlying assets people were ‘trading’ in their pools.

Services like Changelly and Shapeshift have much smaller lists of coins available for easy exchange than they did a month ago.  Try buying tokens like WAVES, STEEM, Golem, NEO or Komodo on these services.  You can’t.  They can’t source actual tokens or the gateways to exchange them are down.

The best way to kill a market is to get retail investors buying the peak and selling into it. Such is the stuff bear markets are made of.  It’s imperative to break retail investor sentiment down.  That’s how markets are brought to heel.  Then rotating out of that market into the next market you want to promote.  This is what the banking industry does with its sell-side ‘analysis’ all the time.

I have a rule, when Goldman-Sachs says “Buy” I sell and vice versa.  In my Universe, rightly or wrongly, Goldman and their ilk are still trading against its recommendations and its clients.  And if it’s not allowed to do so anymore *wink* *wink* because of Dodd-Frank then in the unregulated crypto-markets you should bet that they, J.P. Morgan and the rest of them are.

So, it’s easy to believe in an irrational pump of Bitcoin to $20,000 and the subsequent rotation out and into Ripple, boosting its price and profile, while leaving ‘teh newbz’ hanging at the top.  Add in Bitcoin futures trading to help the tail wag the dog, insane transaction fees that have everyone wondering what’s so great about this Bitcoin if it costs $30 to move $100 and you have a set-up for carnage.

The spike to $20,000, in my opinion, was created by the very hinckey roll-out of rival Bitcoin Cash by Coinbase last month.  The goal there was to sow confusion and undermine Bitcoin Cash as an alternative to Bitcoin.  Again, if you want control over the entire market, you do so by killing off real competition.

See, folks, all of this confusion and carnage comes from not having any kind of centralized control. But, hey, there’s this new cool thing called Ripple which solves all of that and the price is going bonkers!

Trap Set.
To Ethereum and Beyond

That’s the past.  That’s where we are as we enter 2018.  Now what?

In response to this, Ethereum begins another push towards $1000.  Now, Ethereum has its own problems that are technology-based.  Ultimately, its blockchain is only as secure as the code of the tokens issued on it.

We’ve seen this in reality a couple of times, including the hack because of bad code that forced a fork of the Etherum blockchain which created Ethereum Classic (ETC) and Ethereum (ETH).

While I fully believe that one (or many) of these Ethereum-based projects is likely to create another event like that one, the pure cynic in me says, “Why wait?”

If you were the bad guys wouldn’t that be your plan in the first place?  Create a crypto-project using ERC-20 tokens that resolve and clear on the Ethereum blockchain with the intention of breaking it.  Invite investor money in, say fifty million dollars.  A reasonable, but not insane amount of money.

Then let the code run until such time that it will cause maximal damage to Ethereum and the whole crypto-community.  The token goes up four or five times because that’s simply what is happening across the space.

At that point you’ve created a $200+ million meltdown and negative headlines galore.

At this point Bitcoin is neutralized and controlled, Ethereum is discredited and something like that would cause a major panic which is exploited by the same prop trading desks that blew the bubble up in the first place.

If you time that with a spike in Ripple, the banker-acceptable coin, and crash it too, you’ll take down most of the industry in almost no time.  The psychological damage from a scenario like this will create bear market not unlike the one created post Dot-Com bubble.

And like that bust, only those companies that are willing to play ball with Wall St. and Washington D.C. will be promoted and allowed to thrive.

Trap Sprung.

If you don’t think Wall St. isn’t thinking in these terms then you aren’t a serious crypto-investor.  This is the nightmare scenario, or one like it.

The Slipstream Solution

This is why I continue to bang on about the need for decentralized exchanges where the kind of manipulation described above is harder, if not impossible, to pull off.  I fundamentally do not believe most of the ‘liquidity’ that exists on exchanges like HitBTC, Bittrex, GDAX, etc. exists.

Between the false liquidity created by Tether and the potential for running fractional reserves it’s not hard to posit. It doesn’t take the weight of the entire Bitcoin market to raise the price.  It just takes one guy willing to buy the ask.  Once sellers lift their offers in response to a wave of buying things go up quick, especially with programmatic, algo-driven trading.

These exchanges who are not holding all deposits as smart contracts off-exchange with 100%+ reserves like BitShares are vulnerable to major price rises creating liquidity problems, which only adds to the perception that the industry is amateur-hour.

Another solution aside from Bitshares is Komodo’s BarterDEX, which exclusively trades through cross-chain atomic swaps and has no need for a third party intermediary.   Both of these, to me, represent where the industry needs to go to avoid us ending up with Ripple and Goldman still running the show.

Remember, no one is operating BitShares’ exchange.  It’s completely blockchain-based.  It has a fully-tradeable profit-token, OBITS, which distributes monthly profits from the exchange back to the token holders (current yield is around 4%). There is no central pool of liquidity that requires ever-growing ties to credit-providers.  The network only manages assets that have been deposited onto it.

Projects like AriseBank (full disclosure I bought into its ICO), I think, deserve a look.  AriseBank partnered with BitShares to provide the back-end technology to facilitate currency-swaps and brokerage services.  This is billing itself as the world’s first truly decentralized bank, designed to compete directly with the major banks and provide a new business model for banking altogether.

So, as 2018 plays out we as traders and investors need to be aware of the dangers of centralized liquidity and move our liquidity off of them, supporting projects that will build the kind of infrastructure Bitcoin’s initial design was supposed to support.

So many people who have gotten into cryptocurrencies in 2017 will not have an exit strategy in 2018 when the fan gets hit.  As we saw in the peak in December getting your money into or off of Coinbase was a nightmare.

Viewing the market structure through this lens provides a way to siphon off some of the energy the banks are propelling cryptos with to not only fatten your wallets but bring validity and stability to the markets and businesses that will carry on the fight before it’s yet another case of “Meet the new boss, same as the old boss.”
Title: Re: Crypto mining and outside control of markets
Post by: RE on January 04, 2018, 06:06:07 PM
After a power cut, when my computers came back on, my Minergate "balance" had gone to zero. I think it was only a theoretical balance and maybe not a real one, so it might suddenly reappear later.

Clearly a lot of money is going IN to cryptos at the moment. It hardly seems like normal trading. So there must be some heavy hitters in there - maybe Goldman Sachs and co?  Why not?

Don't you have a Batt backup system for your computers? ???  :icon_scratch:  I'm never offline due to power outage.

It's definitely the TBTF Banks manipulating the crypto market, they're the only ones with enough funny money to drive those prices up so high.  The crash will be mighty impressive when it comes.

RE
Title: Re: Crypto mining and outside control of markets
Post by: Palloy2 on January 04, 2018, 06:46:12 PM
Quote
RE: Don't you have a Batt backup system for your computers?

I do, but it didn't work. The computers are resilient in that they come back on and reboot automatically. I have a deep-cycle 12 V battery and inverter system for longer term back-up. Then a gas-fueled generator for even longer term.
Title: Re: Crypto mining and outside control of markets
Post by: RE on January 04, 2018, 07:51:46 PM
Quote
RE: Don't you have a Batt backup system for your computers?

I do, but it didn't work. The computers are resilient in that they come back on and reboot automatically. I have a deep-cycle 12 V battery and inverter system for longer term back-up. Then a gas-fueled generator for even longer term.

So what failed in the backup systems?

RE
Title: Re: Crypto mining and outside control of markets
Post by: Palloy2 on January 05, 2018, 04:04:24 PM
Don't know, perhaps the UPS battery has collapsed again. I would eliminate the UPS altogether but it has a good spike filter on it and there has been lots of lightning these past few days.  25 mm of rain last night and the frogs were driving me mad with deafening mating calls.
Title: South Korea plans to ban cryptocurrency trading, rattles market
Post by: RE on January 11, 2018, 02:35:37 AM
https://www.reuters.com/article/us-southkorea-bitcoin/south-korea-plans-to-ban-cryptocurrency-trading-rattles-market-idUSKBN1F002B (https://www.reuters.com/article/us-southkorea-bitcoin/south-korea-plans-to-ban-cryptocurrency-trading-rattles-market-idUSKBN1F002B)

#Business News
January 10, 2018 / 3:59 PM / Updated an hour ago
South Korea plans to ban cryptocurrency trading, rattles market
Cynthia Kim, Dahee Kim

(https://s4.reutersmedia.net/resources/r/?m=02&d=20180111&t=2&i=1220979773&r=LYNXMPEE0A01Z&w=1680)
FILE PHOTO: A copy of bitcoin standing on PC motherboard is seen in this illustration picture, October 26, 2017. REUTERS/Dado Ruvic/File Photo

SEOUL (Reuters) - South Korea’s government said on Thursday it plans to ban cryptocurrency trading, sending bitcoin prices plummeting and throwing the virtual coin market into turmoil as the nation’s police and tax authorities raided local exchanges on alleged tax evasion.

The clampdown in South Korea, a crucial source of global demand for cryptocurrency, came as policymakers around the world struggled to regulate an asset whose value has skyrocketed over the last year.

Justice minister Park Sang-ki said the government was preparing a bill to ban trading of the virtual currency on domestic exchanges.

“There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” Park told a news conference, according to the ministry’s press office.

After the market’s sharp reaction to the announcement, the nation’s Presidential office hours later said a ban on the country’s virtual coin exchanges had not yet been finalised while it was one of the measures being considered.

A press official at the justice ministry said the proposed ban on cryptocurrency trading was announced after “enough discussion” with other government agencies, including the nation’s finance ministry and financial regulators.

Once a bill is drafted, legislation for an outright ban of virtual coin trading will require a majority vote of the total 297 members of the National Assembly, a process that could take months or even years.

The government’s tough stance triggered a selloff of the cryptocurrency on both local and offshore exchanges.

The local price of bitcoin plunged as much as 21 percent in midday trade to 18.3 million won ($17,064.53) after the minister’s comments. It still trades at around a 30 percent premium compared to other countries.

Bitcoin BTC=BTSP was down more than 10 percent on the Luxembourg-based Bitstamp at $13,199, after earlier dropping as low as $13,120, its weakest since Jan. 2.

South Korea’s cryptocurrency-related shares were also hammered. Vidente (121800.KQ) and Omnitel (057680.KQ), which are stakeholders of Bithumb, skidded by the daily trading limit of 30 percent each.

Once enforced, South Korea’s ban “will make trading difficult here, but not impossible,” said Mun Chong-hyun, chief analyst at EST Security.

“Keen traders, especially hackers, will find it tough to cash out their gains from virtual coin investments in Korea but they can go overseas, for example Japan,” Mun said.

Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behavior in South Korea’s virtual coin market has raised concerns.

Indeed, bitcoin's BTC=BTSP 1,500 percent surge last year has stoked huge demand for cryptocurency in South Korea, drawing college students to housewives and sparking worries of a gambling addiction.

“Some officials are pushing for stronger and stronger regulations because they only see more (investors) jumping in, not out,” Park said.

By Thursday afternoon, the Justice Ministry’s announcement had prompted more than 55,000 South Koreans to join a petition asking the presidential Blue House to halt the crackdown on the virtual currency, making the Blue House website intermittently unavailable due to heavy traffic, the website showed.
REGULATORY CONUNDRUM

There are more than a dozen cryptocurrency exchanges in South Korea, according to Korea Blockchain Industry Association.

The proliferation of the virtual currency and the accompanying trading frenzy have raised eyebrows among regulators globally, though many central banks have refrained from supervising cryptocurrencies themselves.
Vidente Co Ltd18000.0
121800.KQKOSDAQ - Korea Secs Dealers Association Quotation
-7,700.00(-29.96%)
121800.KQ

    121800.KQ057680.KQ

The news of South Korea’s proposed ban came as authorities tightened their grip on some cryptocurrency exchanges.

The nation’s largest cryptocurrency exchanges such as Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion. The raids follow moves by the finance ministry to identify ways to tax the market that has become as big as the nation’s small-cap Kosdaq index in terms of daily trading volume.

Some investors appeared to have taken preemptive action.

“I have already cashed most of mine (virtual coins) as I was aware that something was coming up in a couple of days,” said Eoh Kyung-hoon, a 23-year old investor.

Bitcoin sank on Monday after website CoinMarketCap removed prices from South Korean exchanges, because coins were trading at a premium of about 30 percent in Asia’s fourth-largest economy. That created confusion and triggered a broad selloff among investors.

An official at Coinone told Reuters that a few officials from the National Tax Service raided the company’s office this week. The official, who spoke on condition of anonymity, said that Coinone was cooperating with the investigation.

Bithumb, the second largest virtual currency operator in South Korea, was also raided by the tax authorities on Wednesday.

“We were asked by the tax officials to disclose paperwork,” an official at Bithumb said, requesting anonymity due to the sensitivity of the issue.

The nation’s tax office and police declined to confirm whether they raided the local exchanges.

South Korean financial authorities had previously said they are inspecting six local banks that offer virtual currency accounts to institutions, amid concerns the increasing use of such assets could lead to a surge in crime.

($1 = 1,069.9600 won)

Additional reporting by Hyonhee Shin; Editing by Shri Navaratnam and Jacqueline Wong
Title: Mnuchin Warns Against Bitcoin Becoming the Next ‘Swiss Bank Account’
Post by: RE on January 12, 2018, 11:09:58 AM
So much for anonymity in crypto.  ::)

RE

https://www.bloomberg.com/news/articles/2018-01-12/mnuchin-warns-against-bitcoin-becoming-next-swiss-bank-account (https://www.bloomberg.com/news/articles/2018-01-12/mnuchin-warns-against-bitcoin-becoming-next-swiss-bank-account)

Mnuchin Warns Against Bitcoin Becoming the Next ‘Swiss Bank Account’
By Saleha Mohsin
January 12, 2018, 5:56 AM AKST Updated on January 12, 2018, 7:01 AM AKST

    U.S. Treasury chief warns against a new ‘Swiss bank account’
    No concern about Russia’s use of virtual money: Mnuchin

White House Frustrated About Trump's 'Shithole Countries' Comment
Wells Fargo's 4Q Earnings Hit by Litigation Charges
U.S. Treasury Secretary Steven Mnuchin says he’s "concerned consumers could get hurt" by cryptocurencies.

U.S. Treasury Secretary Steven Mnuchin said he will work with the Group of 20 nations to prevent cryptocurrencies such as bitcoin from becoming the digital equivalent of an anonymous Swiss bank account.

Speaking to the Economic Club of Washington on Friday, he said wants to ensure “bad people cannot use these currencies to do bad things.”

Under U.S. law, “if you have a wallet to own bitcoins, that company has the same obligation as a bank to know” you as a customer, Mnuchin said. “We can track those activities. The rest of the world doesn’t have that, so one of the things we will be working very closely with the G-20 is making sure that this doesn’t become the Swiss bank account.”

Mnuchin said U.S. authorities, including the Federal Reserve, were studying the pros and cons of issuing digital dollars instead of hard cash, but “the Fed and we don’t think there’s any need for that at this point.”
Russian cryptocurrency

Mnuchin also said that he is “not at all” worried that Russia may use cryptocurrencies to help its banks avoid international sanctions. An adviser to President Vladimir Putin is reported to have said that sanctions against Russia have created a need for digital currencies as officials there fear expansions in 2018.

Virtual currencies such as bitcoin, which has soared in price in recent months amid a rush by investors to buy the instrument, could help bypass any such U.S. measures because they allow users to remain anonymous.

See here: Russia’s Oligarchs Brace for U.S. List of Putin Friends

Russian Prime Minister Dmitry Medvedev signed a decree last month allowing the government to classify purchases by the Defense Ministry, Federal Security Service and Foreign Intelligence Service as state secrets.

“This idea that Russia or Venezuela can thwart the pressure from sanctions just by developing their own cryptocurrency is silly,” said lawyer Erich Ferrari of Ferrari & Associates in Washington. “It’s like trying to do it by using cash. Yes you can do it more easily with cash, but it doesn’t mean you’re evading. It’s harder to get caught.”
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on January 28, 2018, 04:28:28 PM
https://www.rt.com/business/417198-coincheck-exchange-hack-reparations/ (https://www.rt.com/business/417198-coincheck-exchange-hack-reparations/)

RT News
The losses of 260,000 customers of Coincheck, deprived of their money in what appears the to be the biggest crypto heist in history, will be repaid over $425 million. Even that sum does not cover all the damages.

The Japanese cryptocurrency exchange platform Coincheck suspended trading and withdrawals on Friday, as hackers had stolen more than 500 million NEM worth up to ¥58 billion ($532 million). As the news broke the token price plunged more than 15 percent from the day’s high of around $1.02, down to $0.85.

On Sunday, Coincheck said the users affected by the illicit transfer would receive reparations for all the lost tokens. But the payments are to be made at the average price over the period from “the suspension of new purchases and sales of NEM on the Coincheck platform” till the reparations announcement, rather than Friday’s peak.

Affected clients will thus receive around ¥88.549 for each stolen token. With the total of 523 million lost coins, the exchange platform will have to repay about ¥46.3 billion of the virtual money.

The timing and procedure of the compensation has not been decided yet, Coincheck said in a statement. To prevent such incidents in the future, the platform is currently “overhauling and strengthening” security measures and is trying to register with the Japanese government’s financial regulator, the Financial Services Agency, as a Virtual Currency Exchange Service Provider.

It is still unclear who was behind the hack and how it was perpetrated.

It is not the first time that a digital currency exchange has had to reimburse clients after a security breach. Another major exchange, Bitfinex, repaid customers who were affected by $72 million hack in August 2016.


Title: How Do You Hide Stolen Cryptocurrency?
Post by: RE on February 04, 2018, 07:53:09 AM
https://www.zerohedge.com/news/2018-02-03/how-do-you-hide-stolen-cryptocurrency (https://www.zerohedge.com/news/2018-02-03/how-do-you-hide-stolen-cryptocurrency)

How Do You Hide Stolen Cryptocurrency?

by Tyler Durden
Sat, 02/03/2018 - 19:11

(https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/stolen%20crypto.jpg?itok=HxsPomrN)

The anonymous nature of digital wallets continues to stymie investigators in last week's theft of 58 billion yen ($530 million) worth of NEM cryptocurrency from a Tokyo exchange, the biggest cryptocurrency heist in history.

Authorities know which user accounts were affected by the Jan. 26 hacking, and the accounts holding the pilfered funds can be immediately identified because the virtual coins are traceable. And, as the Nikkei writes, if the Coincheck exchange case were a regular bank robbery, identifying the bank accounts holding the stolen money would let law enforcement easily return the funds to victims.

But individuals who open a bank account must identify themselves, and no such requirement exists for opening a digital wallet. Anyone can obtain an anonymous digital wallet as easily as walking into a store and paying cash for an actual wallet.

That helps explain why Coincheck and the NEM Foundation, the international organization that manages and promotes the currency, are having trouble identifying the owners of the wallets and demanding the restoration of funds.
Sponsored By Dent Research
Bitcoin: Another Nail in Gold’s Coffin

All hell’s about to break loose. The run up of cryptocurrencies along with a strengthening dollar have sent Gold on a steady slide. Before you make another gold investment, it’s critical you review indisputable evidence of precisely where gold is headed next.

The foundation, which tags the NEM coins, could rewrite the blockchain virtual ledgers and forcibly return the stolen funds to Coincheck. But the NEM group has pledged never to rewrite blockchain records, so even those "transactions" resulting from a hack will remain valid.

    The Tokyo Metropolitan Police Department had received communication logs maintained by Coincheck as of Thursday. The logs are being analyzed for any violation of Japanese anti-hacking laws, but the investigation is expected to encounter challenges similar to those in past cybercrime cases.

In 2015, servers belonging to the state-run Japan Pension Service sustained a cyberattack in which computer viruses were used to obtain names, identification numbers and other data belonging to some 1.25 million people. The next year, travel agency JTB suffered a data breach affecting 6.79 million customers. In both cases, the hackers may have infiltrated systems via offshore servers, but no suspects have been named to date.

When Mt. Gox went bankrupt in February 2014 after a massive amount of cryptocurrency went missing from its exchange, it took about a year and a half for authorities to arrest CEO Mark Karpeles, who was suspected of falsifying account data. Investigators went as far as crunching data in servers located in the U.S.

Meanwhile, on Saturday, the infamous Coincheck exchange said it was preparing to announce a timeframe when yen withdrawals can begin. All yen deposits registered to customer accounts are being stored in a customer-specific account in a major financial institution, the exchange said adding that cryptocurrencies registered to customer accounts have been transferred out of hot wallets and are being stored in cold wallets, etc. And Google translated in its entirety:

    As we are announcing at the release on January 30, 2018, we are currently undergoing verification and verification of technical safety etc. accompanying Japanese yen withdrawal, and we are preparing for resumption We are. Based on the confirmation / verification that we are doing with the cooperation of outside experts, we will inform you of the timing of resumption of Japanese yen withdrawal.

    The Japanese yen held by the customer in the account is preserved in the customer exclusive account of the financial institution. Also, with respect to the virtual currency (BTC / ETH / ETC / LSK / FCT / XMR / REP / XRP / ZEC / LTC / DASH / BCH) which the customer has in the account, evacuate from the hot wallet, We keep it.

    We are sorry for the inconvenience for a while, thank you for your consideration.

Meanwhile, someone is half a billion richer following the Coincheck theft, and nobody has any clue who it is.


Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 04, 2018, 12:08:55 PM
Great thread.

I have a similar dilemma.....

Yeah see, there's this Wells Fargo stage that misplaced a strong-box loaded with 1860's $20 gold pieces !

https://www.legendsofamerica.com/az-canyonstationtreasure/ (https://www.legendsofamerica.com/az-canyonstationtreasure/)

Well, I have a pretty good idea where the loot is buried !

Trying to off-load $72k's worth of $20 gold rounds could bring  "suits"

That I don't need, another visit from the suits. So the problem is do you melt the shit down or just sit on it until
doomsday ?

My problems are golden indeed  :icon_sunny:
Title: Re: P O O F ! Goes The Crypto
Post by: Palloy2 on February 04, 2018, 03:30:58 PM
What's with this "gold has been on a slide" business?

(http://www.galmarley.com/ChartApp/Images/USD_Line_5years_300x150.gif)

Its almost at a 4 year high, and 2017 saw almost continuous gains.
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 04, 2018, 06:36:57 PM
Great thread.

I have a similar dilemma.....

Yeah see, there's this Wells Fargo stage that misplaced a strong-box loaded with 1860's $20 gold pieces !

https://www.legendsofamerica.com/az-canyonstationtreasure/ (https://www.legendsofamerica.com/az-canyonstationtreasure/)

Well, I have a pretty good idea where the loot is buried !

Trying to off-load $72k's worth of $20 gold rounds could bring  "suits"

That I don't need, another visit from the suits. So the problem is do you melt the shit down or just sit on it until
doomsday ?

My problems are golden indeed  :icon_sunny:

http://www.youtube.com/v/NBRrCY5uhWY&fs=1
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 04, 2018, 09:05:07 PM
So the problem is do you melt the shit down or just sit on it until
doomsday ?

As I have detailed on many prior occasions, in a post-SHTF world Gold won't have much more value than crypto.  Its main advantage over crypto right now is it's harder to steal if you have it buried in a TOP SECRET location which only you have the coordinates for, analog encrypted in your paper journal.

If you tried using it right now, you're going to have to dribble it out very slowly in small amounts to coin dealers.  If the coins are worth more than I think around $600, the dealer has to record this transaction and report it, so the IRS will find out about it.  If you use the same coin dealer all the time, this also will raise suspicion whether you melt the coins down or not.  To use many different coin dealers, you will need gas for your car to drive around to them, and where are you going to get that post SHTF Day?

Post SHTF Day, stores will not have goods to buy, and most individual sellers who have food are not going to trade the food for gold unless they are positively swimming in food plus other stuff they need like fuel, booze, ganja etc.

So overall it is just a shiny paperweight in the basement safe.  You can't even swim in it, if you pulled a stunt like diving into it a la Uncle Scrooge, you would crack your skull open.

RE
Title: Lloyds Bank to ban credit card owners from buying cryptocurrencies
Post by: RE on February 05, 2018, 01:24:05 AM
Not a good week for Crypto.

RE

https://www.reuters.com/article/us-lloyds-bank-uk-bitcoin/lloyds-bank-to-ban-credit-card-owners-from-buying-cryptocurrencies-idUSKBN1FO0UL (https://www.reuters.com/article/us-lloyds-bank-uk-bitcoin/lloyds-bank-to-ban-credit-card-owners-from-buying-cryptocurrencies-idUSKBN1FO0UL)

#Cyber Risk
February 4, 2018 / 2:11 PM / Updated 9 hours ago
Lloyds Bank to ban credit card owners from buying cryptocurrencies

(https://s3.reutersmedia.net/resources/r/?m=02&d=20180205&t=2&i=1228244138&r=LYNXMPEE130KN&w=1280)

Reuters Staff

2 Min Read

(Reuters) - Lloyds Banking Group Plc (LLOY.L) said on Sunday it would ban its credit card customers from buying Bitcoin and other cryptocurrencies.
Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration

Sponsored

”Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies,” a company spokeswoman said in an email.

Britain's biggest mortgage lender will ban its credit card customers from buying Bitcoin amid fears that they could run up huge losses, the Telegraph reported earlier on Sunday. bit.ly/2nGikQy

The company will block any attempts to buy Bitcoin with a credit card starting on Monday, but digital currencies could be purchased with debit cards, the newspaper said.

Credit card customers of the bank will be blocked from buying Bitcoin online through a blacklist that will flag sellers, according to the Telegraph.

The company fears that credit card owners will buy Bitcoin hoping to make a profit when its value goes up, but will be laden with debt if its price falls, the paper reported.
Lloyds Banking Group PLC68.04
LLOY.LLondon Stock Exchange
-0.71(-1.03%)
LLOY.L

    LLOY.L

British Prime Minister Theresa May has said Britain should take a serious look at digital currencies such as Bitcoin because of the way they can be used by criminals.

Digital currencies plunged on Friday, with Bitcoin at one point sliding below $8,000 and headed for its biggest weekly loss since December 2013, amid worries about a global regulatory clampdown.

Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Peter Cooney
Title: Re: P O O F ! Goes The Crypto
Post by: g on February 05, 2018, 03:43:51 AM
What's with this "gold has been on a slide" business?

(http://www.galmarley.com/ChartApp/Images/USD_Line_5years_300x150.gif)

Its almost at a 4 year high, and 2017 saw almost continuous gains.

Thanks, Most appreciated. 
Title: Bitcoin drops below $8,000 after another bank ban on credit-card buying hits
Post by: RE on February 05, 2018, 04:33:23 AM
Bye bye Bitcoin! (https://kasturisem2biochem.files.wordpress.com/2013/04/bye-bye-male-smiley-smiley-emoticon-000155-large1.gif)

I hope Roamer got out in time to lock in his winnings. 🤞

RE

Bitcoin drops below $8,000 after another bank ban on credit-card buying hits

Published: Feb 5, 2018 5:43 a.m. ET

(https://ei.marketwatch.com/Multimedia/2017/03/30/Photos/ZH/MW-FJ308_lloyds_20170330050609_ZH.jpg?uuid=1d825bb6-1528-11e7-9225-001cc448aede)
Lloyds ban is another sign of tightening on crypto trading
Getty Images

By
Barbara
Kollmeyer
Markets reporter

The cryptocurrency selloff got a reboot on Monday, as bitcoin pushed below $8,000 on news a major U.K. bank had banned purchases of digital currencies via its credit cards.

Bitcoin BTCUSD, -5.48%  was most recently trading at $7,951, a drop of 2.9%, leaving it at levels not seen since late November. The spot price briefly fell below $8,000 on Friday, then recharged and rose to as high as $9,471.46 on Saturday, before dropping back again, according to CoinDesk.com.

Early Monday, the total market value of bitcoin stood at around $377 billion, according to CoinMarketCap. The global cryptocurrency coughed up around $103 billion in about 24 hours at the end of last week.

Meanwhile, Ether coins on the Ethereum blockchain lost 3.5% to $810.62, trading at levels not seen since the start of the year. Ripple coins shed 3.8% to change hands at 79 cents, and Litecoin dropped 4.2% to $143.55, according to CoinDesk.

Fears of tighter regulation on trading of cryptocurrencies around the world have helped drive the selloff, with fresh concerns cropping up on Monday via news from U.K. banking giant Lloyds Banking Group LYG, -2.48% LLOY, -0.97%  .

“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies,” said a Lloyds Banking Group spokesperson.

“It’s a case of protecting our credit card customers from the risks associated with the price volatility of cryptocurrencies,” said the spokesperson, in emailed comments.

The move comes after several bank and card issuers, including Bank of America Corp. BAC, -2.25%  , said they would be reviewing their policies around the buying of crypto assets using credit cards. Capital One Financial Corp. COF, -3.01%   banned customers from using credit cards to purchase bitcoin or coins on the Ethereum blockchain, The Wall Street Journal has reported.

Read: 5 reasons virtual currencies have shed a half-trillion dollars in less than a month

Included in last week’s regulatory jabs at bitcoin and its rivals, was news that Facebook Inc. FB, -1.46%  will no longer allow cryptocurrency ads to run, and India’s finance minister, who said cryptocurrencies aren’t viewed by officials as a form of legal tender.

Opinion: These early retirees won’t touch bitcoin or other cryptos — and neither should you

Atulya Sarin: Regulators should keep their hands off bitcoin and blockchain

February bitcoin futures on the Cboe Global Markets Inc. XBTG8, -15.75% dropped 7.5% to $7,860, while comparable futures on the CME Group Inc. BTCG8, -10.83% lost 9% to $7,810.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 05, 2018, 12:53:25 PM
So the problem is do you melt the shit down or just sit on it until
doomsday ?

As I have detailed on many prior occasions, in a post-SHTF world Gold won't have much more value than crypto.  Its main advantage over crypto right now is it's harder to steal if you have it buried in a TOP SECRET location which only you have the coordinates for, analog encrypted in your paper journal.

If you tried using it right now, you're going to have to dribble it out very slowly in small amounts to coin dealers.  If the coins are worth more than I think around $600, the dealer has to record this transaction and report it, so the IRS will find out about it.  If you use the same coin dealer all the time, this also will raise suspicion whether you melt the coins down or not.  To use many different coin dealers, you will need gas for your car to drive around to them, and where are you going to get that post SHTF Day?

Post SHTF Day, stores will not have goods to buy, and most individual sellers who have food are not going to trade the food for gold unless they are positively swimming in food plus other stuff they need like fuel, booze, ganja etc.

So overall it is just a shiny paperweight in the basement safe.  You can't even swim in it, if you pulled a stunt like diving into it a la Uncle Scrooge, you would crack your skull open.

RE


My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 05, 2018, 12:57:19 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 05, 2018, 01:01:40 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 05, 2018, 01:06:53 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.

OK, go get it and send me an encrypted PM when you got it in your possession with a pic of the coins.  You can then re-bury it somewhere closer to your McHovel to retrieve after SHTF Day and try to use it to buy stuff.  I promise not to report you to the IRS.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 05, 2018, 01:13:30 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.

OK, go get it and send me an encrypted PM when you got it in your possession with a pic of the coins.  You can then re-bury it somewhere closer to your McHovel to retrieve after SHTF Day and try to use it to buy stuff.  I promise not to report you to the IRS.

RE


It's the property of Wells Fargo....
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 05, 2018, 01:18:41 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.

OK, go get it and send me an encrypted PM when you got it in your possession with a pic of the coins.  You can then re-bury it somewhere closer to your McHovel to retrieve after SHTF Day and try to use it to buy stuff.  I promise not to report you to the IRS.

RE


It's the property of Wells Fargo....

That is only one of the many problems you would have with it, if you actually found it.  Let me know when you have it in your possession.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 05, 2018, 01:43:07 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.

OK, go get it and send me an encrypted PM when you got it in your possession with a pic of the coins.  You can then re-bury it somewhere closer to your McHovel to retrieve after SHTF Day and try to use it to buy stuff.  I promise not to report you to the IRS.

RE


It's the property of Wells Fargo....

That is only one of the many problems you would have with it, if you actually found it.  Let me know when you have it in your possession.

RE
Oh, you'll get the nod alright...
GTFOD for sure.
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 05, 2018, 01:58:16 PM
LMFAO!!!!

If Wells Fargo owns it, I hope you figure out a way to make it all disappear and reappear as "nuggets" from your claim.
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 05, 2018, 01:59:52 PM
I could see how owning a mining claim could be beneficial in certain circumstances.  I know the vintage coins are priceless....but so much harder to "launder".
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 05, 2018, 02:06:59 PM
LMFAO!!!!

If Wells Fargo owns it, I hope you figure out a way to make it all disappear and reappear as "nuggets" from your claim.

There aren't any serial numbers on coins of that era, so WF would have a hard time proving they belonged to them.  It still would be quite difficult to unload them though in any quantity at one time.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 05, 2018, 02:10:19 PM
One a month would make the rent.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 05, 2018, 02:15:25 PM
One a month would make the rent.

True, but he still does have to actually FIND them though.  He also can't show up too many months in a row at the same coin dealer.  Somebody will get interested in WTf has all these 1860 era gold coins and where did he get them?

RE
Title: Re: P O O F ! Goes The Crypto
Post by: roamer on February 05, 2018, 02:26:08 PM
RE, Nope didn't make it out of this one, sold near the top though and then like a dumbass thought I could time buying back in.  Down more than i am comfortable admitting as of writing this.  Still optimistic on crypto long term and think that its beneficial that a big bear settles in an cleans out the junk.  95% of it is garbage and despite ethereum's progress and promise it can't even scale yet.  Eventually though we'll get secure scalable networks that we can build web 3.0 on and will provide the base layer for the solar decentralized economy.  Give it a 3-5 years to take shape.  If you can entertain that time frame perhaps not a bad time to consider in investing in some of the 3rd gen coins during the bear, $rchain is my favorite by a longshot, aion, polkadot, cosmos, maybe cardano worth a look. 

So looking like it'll be a lean year to roll out the farm airbnb and start my "Primal Pork" business (selling woodland pastured pork to rich city crossfitters).  Lucky im out of student loan debt.




Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 05, 2018, 02:28:54 PM
LMFAO!!!!

If Wells Fargo owns it, I hope you figure out a way to make it all disappear and reappear as "nuggets" from your claim.


This is why I love this shit....

Conversion.....

No taxes with gold to fiat conversion.

Conversion.....

Chemically change it to ORMUS  (White gold powder) Put it in the sunlight & it disappears  :icon_sunny:

Bring it back in & poof it's back. Sunlit heat sends it to 4D no shit.
Check the work of David Hudson, a Yuma, Az. cotton farmer.
Sell it as you need to make some cash.
Title: Re: P O O F ! Goes The Crypto
Post by: Surly1 on February 05, 2018, 04:13:45 PM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.

OK, go get it and send me an encrypted PM when you got it in your possession with a pic of the coins.  You can then re-bury it somewhere closer to your McHovel to retrieve after SHTF Day and try to use it to buy stuff.  I promise not to report you to the IRS.

RE


It's the property of Wells Fargo....

That is only one of the many problems you would have with it, if you actually found it.  Let me know when you have it in your possession.

RE
Oh, you'll get the nod alright...
GTFOD for sure.

(http://www.reactiongifs.com/wp-content/uploads/2011/05/tumblr_ljh0puClWT1qfkt17.gif)

Can't wait for the next installment!
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 05, 2018, 06:00:28 PM
RE, Nope didn't make it out of this one, sold near the top though and then like a dumbass thought I could time buying back in.  Down more than i am comfortable admitting as of writing this.  Still optimistic on crypto long term and think that its beneficial that a big bear settles in an cleans out the junk.  95% of it is garbage and despite ethereum's progress and promise it can't even scale yet.  Eventually though we'll get secure scalable networks that we can build web 3.0 on and will provide the base layer for the solar decentralized economy.  Give it a 3-5 years to take shape.  If you can entertain that time frame perhaps not a bad time to consider in investing in some of the 3rd gen coins during the bear, $rchain is my favorite by a longshot, aion, polkadot, cosmos, maybe cardano worth a look. 

So looking like it'll be a lean year to roll out the farm airbnb and start my "Primal Pork" business (selling woodland pastured pork to rich city crossfitters).  Lucky im out of student loan debt.

Sorry to hear that Roamer.  :(  Glad you got your college loan paid off though.  I won't be investing in any crypto.    I got out before the crash with my Kohl's winnings.  I might buy back in if this dip drops low enough, just have to see how far it will go.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 06, 2018, 03:13:05 AM

My gold dealer, neighbor across the street just showed me a beautiful 1901 St. Gaudins that he paid $4000 for last week.
1860's $20 gold rounds are worth more than a St. G...
They're pretty rare.
I'm sure they are.  Let me know when you dig them up and try to sell them.  ::)

RE

That area is solid rock all the way down to the chewy center, They're aren't a lot of places to bury
a strongbox up there. The weather has rotted the box away after 150+ years.
It's naked gold rounds 6 to 8 feet under the surface.
A cheap ground penetrating radar or a random gold detector should do the trick.
Plus the story says there's a marker.
2 guys on horseback carrying several hundred pounds of dead weight, won't get to far. The shits buried within 100 yds. of the robbery in that canyon.

OK, go get it and send me an encrypted PM when you got it in your possession with a pic of the coins.  You can then re-bury it somewhere closer to your McHovel to retrieve after SHTF Day and try to use it to buy stuff.  I promise not to report you to the IRS.

RE


It's the property of Wells Fargo....

That is only one of the many problems you would have with it, if you actually found it.  Let me know when you have it in your possession.

RE
Oh, you'll get the nod alright...
GTFOD for sure.

(http://www.reactiongifs.com/wp-content/uploads/2011/05/tumblr_ljh0puClWT1qfkt17.gif)

Can't wait for the next installment!


Any good at reading maps ?
We can figure this shit out right here.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 06, 2018, 04:57:04 AM
Any good at reading maps ?
We can figure this shit out right here.

No, then somebody else might read it and get to the gold first.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 06, 2018, 11:03:07 AM
Any good at reading maps ?
We can figure this shit out right here.

No, then somebody else might read it and get to the gold first.

RE

Trust me, the treasure hunter crowd has already tried & they're so frickin' turned around
it's hilarious.
This canyon was my office for four years.
I was the only realtor crazy enough to take on playing monopoly with those claims.
Did very well financially while I was at it, I might add.
I know what to post & what not to post to keep the suits off my back.
Since you & a few others here are savvy on posting photos & other items, help a brother out.

I need a map of the area. Kingman, Az.
The section of mountain (Cerbats) that is north of I-40 & east of Hwy 95, & northeast of Hwy 68. I-40 & Hwy 68 are E/W parallel
Find the dirt road named Champion Mine Road. The Champion is my digs.
It's north of So-Hi (housing community)
I'm planning a trip up to the mine soon. My friend Danny wants the silver dollar tour.

RE,
No fear porn. We drive it like we stole it. Besides, it's got a cop motor & brakes.  :icon_mrgreen:
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 06, 2018, 12:33:56 PM
One question I still have is the motivation behind the delivery of the box of gold.
Why would Ft. Mohave be the destination.
To pay the troops ? Perhaps.
Ft. Mohave was a sea port. The Colorado River washes into the Sea of Cortez before the dam system was constructed.

The gold coins could have been intended to be sent back east to fund the civil war.
I believe they were minted in Prescott, Az.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 06, 2018, 12:42:59 PM
Any good at reading maps ?
We can figure this shit out right here.

No, then somebody else might read it and get to the gold first.

RE

I need a map of the area. Kingman, Az.
The section of mountain (Cerbats) that is north of I-40 & east of Hwy 95, & northeast of Hwy 68. I-40 & Hwy 68 are E/W parallel
Find the dirt road named Champion Mine Road. The Champion is my digs.
It's north of So-Hi (housing community)
I'm planning a trip up to the mine soon. My friend Danny wants the silver dollar tour.


I'll whip up a map later this afternoon.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 06, 2018, 12:52:02 PM
Any good at reading maps ?
We can figure this shit out right here.

No, then somebody else might read it and get to the gold first.

RE

I need a map of the area. Kingman, Az.
The section of mountain (Cerbats) that is north of I-40 & east of Hwy 95, & northeast of Hwy 68. I-40 & Hwy 68 are E/W parallel
Find the dirt road named Champion Mine Road. The Champion is my digs.
It's north of So-Hi (housing community)
I'm planning a trip up to the mine soon. My friend Danny wants the silver dollar tour.


I'll whip up a map later this afternoon.

RE


Cool, thanks...

Jack Swilling was "the guy" in No. Az.

John W. (Jack)
Swilling
 (1830-1878)
led the first party of
non-Indians to explore
the Hassayampa River
in January 1860 where
he and his companions
declared that
“this
new region has the
finest indications of
gold of any they
have ever seen.”

http://www.prescottcorral.org/TT4/FirstMiningDistrict.pdf (http://www.prescottcorral.org/TT4/FirstMiningDistrict.pdf)


Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 06, 2018, 12:59:56 PM
Sounds like we could write a great story about that gold, the ship in the Sea of Cortez, and the Civil War. I want to make a movie of that one.

Ever hear of the legend of the ghost ship in the desert? This one's just for you AZ.

https://en.wikipedia.org/wiki/Lost_Ship_of_the_Desert

Title: Re: P O O F ! Goes The Crypto
Post by: RE on February 06, 2018, 01:25:31 PM
Sounds like we could write a great story about that gold, the ship in the Sea of Cortez, and the Civil War. I want to make a movie of that one.

If we actually find it, we sure could.  That would really be something.  We'd probably make more off the movie rights than the gold, so we could just give the coins to Wells Fargo for a finders fee of 20%.  Then it's all legal.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 06, 2018, 01:37:21 PM
We could get Quentin Tarantino to direct it. I see it as an homage to Sergio Leone's spaghetti westerns. "Like Two Mules for Sister Sarah", (but better , of course. :) )

http://www.youtube.com/v/OVC7aZoxPmU&fs=1

Not Sergio Leone. That's why this one wasn't as good as the others. It's a Hollywood copycat.


Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 06, 2018, 01:44:03 PM
Sounds like we could write a great story about that gold, the ship in the Sea of Cortez, and the Civil War. I want to make a movie of that one.

Ever hear of the legend of the ghost ship in the desert? This one's just for you AZ.

https://en.wikipedia.org/wiki/Lost_Ship_of_the_Desert

Excellent find Ed...

That brings up a stellar  :icon_sunny: point in the buried treasure here.
Very close to the canyon station property lies a modern day lake type boat, perhaps 60's era.
When RE posts the map we need to locate that boat for reference point.
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 06, 2018, 01:45:07 PM
Camels. It would have camels.....didn't they have camels in the desert West during the Civil War? I'm pretty sure they tried it.

Clint Eastwood could make a cameo appearance....or maybe play the CEO of Wells Fargo, or Abraham Lincoln or some other part appropriate for an old fuck.

I could so write the screenplay for this...if I only knew anything about how to write a screenplay, that is.



Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 06, 2018, 01:47:29 PM
Sounds like we could write a great story about that gold, the ship in the Sea of Cortez, and the Civil War. I want to make a movie of that one.

If we actually find it, we sure could.  That would really be something.  We'd probably make more off the movie rights than the gold, so we could just give the coins to Wells Fargo for a finders fee of 20%.  Then it's all legal.

RE

Fuck'em...
You're dealing with pi-ra-tes, MEN OF FIRE, here.
We keep the shit hidden in plain site. Just like them.
Title: Re: P O O F ! Goes The Crypto
Post by: g on February 07, 2018, 12:27:51 PM
Bitcoin appears to be making a valiant effort at bottoming somewhere in this area.

Not a prediction, just a casual observation.

Whack of 70 percent or so right off the top a most unusual occurrence. Would seem at least a dead cat bounce soon.   :dontknow:
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 07, 2018, 01:28:50 PM
https://www.politico.com/story/2018/02/05/pentagon-logistics-agency-review-funds-322860 (https://www.politico.com/story/2018/02/05/pentagon-logistics-agency-review-funds-322860)

Title: 💰 “Blockchain” Stocks Completely Disintegrate
Post by: RE on February 19, 2018, 12:46:01 AM
https://wolfstreet.com/2018/02/18/blockchain-stocks-completely-disintegrate/ (https://wolfstreet.com/2018/02/18/blockchain-stocks-completely-disintegrate/)

“Blockchain” Stocks Completely Disintegrate
by Wolf Richter • Feb 18, 2018 • 10 Comments   
Black Friday for them. Meet the OTC’s “skull and crossbones.”

(http://sixpl.com/wp-content/uploads/2017/09/Blockchain-and-Cryptocurrency-Content-Writer.jpg)

I’ve never seen a sector skyrocket and totally collapse this fast – in four months – as these newfangled “blockchain stocks.” Now they’re surrounded by debris and revelations of scams. These fly-by-night or near-failure outfits used the hype of “blockchain” and the whole media razzmatazz about cryptocurrencies to manipulate up their stocks, sometimes by several thousand percent in a matter of days.

I vivisected some of these outfits and their stock manipulation schemes on the way up. And on January 25, I documented Phase One of the collapse. This is now Phase Two of the collapse. And dip buyers are still not through getting crushed.

UBI Blockchain International got totally mangled. When I last wrote about UBIA on January 25, it was down 93% from the peak six weeks earlier. Since then, all heck has broken loose. On Friday, OTC Market, where the shares had been demoted to, slapped a “skull-and-crossbones” icon next to the ticker and no longer displays a quote.

It started out so promising: Over the course of a few days in mid-December, UBIA skyrocketed 1,500% to $115 a share intraday.


    December 28, I tarred and feathered the company, its executives, their shenanigans, and their Chinese connection [for details, read, I’m in Awe of How Far the Scams & Stupidities around “Blockchain Stocks” are Going].
    January 9, the SEC halted trading in UBIA, for two reasons: lacking “accuracy” in disclosures and funny trading activity. The trading halt froze the share price at $22.
    January 23, when trading resumed, shares plunged further.
    January 25, when I last wrote about it, they were at $8.25, down 93% from the peak.
    February 9, the company disclosed in its quarterly SEC filing that it had zero revenues and a quarterly loss of $1.24 million. It repeated that its ability to go on as a “going concern” depended on getting new financing and its “ability to achieve and maintain profitable operations.” Fat chance.
    February 15, shares closed at $6, down 95% from the peak.

Friday, February 16, OTC Markets Group stopped displaying quotes of UBIA, labeled the shares “Caveat Emptor (Buyer Beware),” and placed the skull-and-crossbones icon next to the stock symbol. It told investors to “exercise additional caution and perform thorough due diligence before making an investment decision in that security.”

In other words, the normal ways of obtaining a quote – on otcmarkets.com, MarketWatch, Yahoo, Bloomberg, WSJ, etc. – have disappeared. These shares are essentially goners.

Riot Blockchain down 75% from the peak. The vultures are circling. This was a failing biotech outfit called Biotix with annual revenues of less than $200,000 over the past four years, generating a total of $34 million in losses. Shares were trading at around $4.50. But on October 4, it announced that it would change its name and start investing in cryptocurrency and blockchain startups. BAM went the shares – up nearly 1,000% to $46.20 by December 19. But by January 25, they’d plunged 61% to $17.92.

On Friday, shares plunged 33.4% to $11.46 after CNBC published the results of its investigation into the shenanigans of the executives, a major investor, and the company.

Later that day, I received an email from U.S. Market Advisors Law Group PLLC. The law firm “represents investors in antitrust, securities and shareholder litigation.” It announced “the completion of an initial investigation on behalf of investors” into “whether Riot Blockchain and certain of its officers and directors violated federal securities laws”:

    As a result of its findings, the firm has prepared, but not yet filed, a proposed class action complaint to recover losses suffered by Riot Blockchain investors.

The law firm explained how the biotech company changed its name and used the hype around blockchain announcements to manipulate up its shares. Then…

    On December 29, 2017, after the market closed and heading into a three-day holiday weekend, John O’Rourke, the Company’s new Chief Executive Officer, made an SEC filing revealing he had sold over 30,000 Riot Blockchain shares. On this news, Riot Blockchain’s stock price declined more than 14% over two trading days.

    On January 31, 2018, before the market opened, the Wall Street Journal published an article detailing investor Barry Honig’s involvement with Riot Blockchain and his trading of the company’s shares. On the same day, Riot Blockchain announced that its annual shareholder meeting would be postponed for a second time. On this news, Riot Blockchain’s stock price declined more than 14% over two trading days.

    On February 16, 2018, CNBC reported that Riot Blockchain’s operations raise a number of “red flags,” including: (i) insider selling; (ii) making no apparent effort to timely hold annual shareholder meetings; and (iii) diluting the common stock. On this news, Riot Blockchain’s stock price fell more than 30% during intraday trading.

Not that dip buyers won’t plow in and drive up the shares for a little while. But RIOT is likely a goner too.

Long Blockchain Corp down 66% from the peak. LBCC is a failing beverage-maker that was called Long Island Iced Tea until December 18. With the name-change announcement, it manipulated its shares up by 360% from $2.06 on December 18 to $9.49 a few days later.

This scheme was hatched as the company had received a delisting notice from the Nasdaq, which it disclosed on October 13, 2017 in an SEC filing. The reason was that its market capitalization had dropped below the minimum of $35 million for 30 consecutive trading days.

It averted a delisting with the scheme of changing its name to “Long Blockchain” and peppering the announcement with gobbledygook about its new “blockchain” business model. Its market cap surged along with the shares. But…

    January 5, when it announced that it would sell 1.6 million shares in a secondary offering, shares crashed 21%.
    January 9, under intense scrutiny, it canceled the stock offering.
    January 25, when I last wrote about it, shares had plunged 61% from the peak to $3.72 and continued to drop until they hit $2.82 on January 30. Then dip buyers piled in and pushed shares back to $3.63.

On Friday, February 16, shares plunged 11% to $3.23. This leaves them down 66% from the peak. What caused the plunge?

On Thursday, the company had disclosed in an SEC filing that it had received another delisting notice from the Nasdaq. The company can appeal the delisting. But even if it wins the appeal, it will have to keep its market cap above $35 million for a minimum of 10 trading days in a row by April 9. As of Friday’s close, its market cap was $33 million.

Longfin down 76% from the peak. LFIN went public in November. On December 15, the company announced a mix of gobbledygook, hype, and silliness about having acquired a “Blockchain-empowered solutions provider,” namely some website that belonged to a Singapore corporation that is 95% owned by Longfin’s CEO. It didn’t pass the smell test.

But shares skyrocketed 2,700% over the three-day period to an intraday high of $142.82 on December 18, pushing the company’s market cap to a fabulous $7 billion and making it the role model of every “blockchain” scammer out there. By January 25, LFIN had plunged 71% to $41.61. On Friday shares plunged 18%. At $34.40, shares are now down 76% from the peak.

DPW Holdings down 70% from the peak. This was a penny stock before it came up with its blockchain scam. The company makes power supplies for computers. But when it announced that it would market its power supplies to cryptocurrency miners, shares skyrocketed 880% from $0.56 on November 21 to an intraday high of $5.95 on December 18. On Friday, the stock fell 6.4%. At $1.76, shares have plunged 70% from the peak.

On-line Blockchain [OBC] down 44% from the peak. This is another name-change scam. The company was called On-line Plc, a thinly traded penny stock in London. After it changed its name, its shares spiked nearly 1,000%, from 14 pence to 152 pence by January 9. By January 25, shares had plunged 35% from the peak to 97 pence. On Friday, shares dropped 7% and closed at 84.55 pence, down 44% from the peak.

Eastman Kodak [KODK] down 47% from the peak. Kodak’s blockchain-and-crypto manipulation scheme wasn’t a name change but an announcement on January 9 of a “blockchain initiative,” including its own cryptocurrency, KodakCoin. Shares soared 300% in two days, from $3.10 to $12.40. Interestingly, on January 8, the day before the announcement, seven independent directors awarded themselves big-fat stock grants. By January 25, shares had dropped 23% from the peak to $9.50. On Friday, shares dropped 7.8% to $6.55, and are down 47% from the peak.

Seven Stars Cloud Group [SSC] down 55% from the peak. The Chinese video-on-demand outfit, which is traded on the Nasdaq, manipulated its shares up by 200% from $2.33 on December 8 to $7.00 intraday on December 26, by claiming that it had taken a 27% stake in The Delaware Board of Trade Holdings, a private company. By January 25, shares had plunged 40% to $4.13. On Friday, they dropped 4.5% to $3.17 and are down 55% from the peak.

Siebert Financial Corp [SIEB] down 63% from the peak. Its shares had jumped nearly 400%, from $4.40 to $21.64 by December 21 after the 50-year-old New York brokerage announced on December 14 that it would venture into cryptocurrency trading. By January 25, they’d plunged 54% from the peak to $9.65. On Friday, they dropped 4% to $8.10, down 63% from the peak.

This amazing spectacle – these scams that caused stocks to soar and plunge over a period of four months – was brought to you by the greatest central-bank-fueled market ebullience and speculative fever mankind may have ever seen. And it may be a sign that the fever has broken.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 20, 2018, 11:35:48 AM
https://cointelegraph.com/news/polish-central-bank-secretly-funds-anti-crypto-youtube-propaganda-videos

Title: P O O F ! Goes The Crypto - Venezuela issues Crypto backed by Oil
Post by: azozeo on February 22, 2018, 09:43:57 AM
http://thefreethoughtproject.com/venezuela-cryptocurrency-petro-oil-backed/ (http://thefreethoughtproject.com/venezuela-cryptocurrency-petro-oil-backed/)

Title: 💳 TD Bank The Latest to Halt Cryptocurrency Purchases Using Credit Cards
Post by: RE on February 25, 2018, 12:01:50 AM
https://insidebitcoins.com/news/td-bank-the-latest-to-halt-cryptocurrency-purchases-using-credit-cards/107975 (https://insidebitcoins.com/news/td-bank-the-latest-to-halt-cryptocurrency-purchases-using-credit-cards/107975)

TD Bank The Latest to Halt Cryptocurrency Purchases Using Credit Cards

(http://bitcoinist.com/wp-content/uploads/2018/02/money-256319_960_720-e1519453860228.jpg)

By Gregory Rocco Feb 24, 2018 2:30 AM EST

Toronto-Dominion (TD) Bank is the latest financial institution to ban customers from using their credit cards to purchase cryptocurrency. As more retail investors continue to be onboarded, banks are looking to protect them from making ignorant decisions.
Weighing Risk, Regulation, and Rapidity

In a recent move that has become common from banks, TD Bank is effectively halting the use of credit cards to purchase cryptocurrency. Originally still permitting purchases even after the first move from banks began, TD Bank has now fallen in line with a growing policy change.

    At TD, we regularly evaluate our policies and security measures, in order to serve and protect our customers, as well as the bank. We recently made the decision to pause on allowing cryptocurrency purchases via credit cards to conduct a review and assessment of this evolving market.

Other Canadian banks, such as Royal Bank, have still been watching from the sidelines when it comes to credit purchases, but they too might soon follow in the footsteps of TD and most major international banks.

credit card
Banks are Moving to Protect Credit Lines

Earlier in the month, major banks including JPMorgan Chase, Bank of America, Citigroup, and Virgin Money all effectively banned purchasing cryptocurrency on credit cards. Although plenty in the space saw this as a move by the banks to stifle investment in this alternative asset class, the underlying premise of the ban had a bit more substance than a simple block.

As cryptocurrency saw historic rallies during the month of December, along with a subsequent fall beginning in January, plenty of retail investors were washed out from the markets. However, even with the media continually putting an emphasis on the volatility risk of cryptocurrency, credit cards became a quick way to invest.

The action of the banks was not a move to prevent people from buying cryptocurrencies but, rather, to prevent vacuous decisions. The ban was more of a safeguard, considering most investors not being able to pay back the issued credit due to the crashing prices.
A Growing Trend Set to End

As the markets fell, so did the interest to buy bitcoin on a credit card. According to Google trends data, search interest for the phrase “buy bitcoin with credit card” fell nearly 80% between the end of December and now – the exact period of time during the major market decline.

bitcoin search trend

Although popular cryptocurrency exchanges, such as Coinbase and BitStamp, allow credit card transactions, users are finding their transactions declined upon attempting to make purchases.

You can’t purchase traditional investments with a credit card, so it’s not surprising that the banks put their foot down when it came to cryptocurrency. Moving forward, banks that haven’t imposed a ban will most likely do so in the future. The days of purchasing cryptocurrency on credit are numbered.
Title: P O O F ! Goes The Crypto
Post by: azozeo on February 27, 2018, 03:35:55 PM
http://theantimedia.org/bank-of-america-admits-cryptocurrencies-threaten-business-model/ (http://theantimedia.org/bank-of-america-admits-cryptocurrencies-threaten-business-model/)




The Antimedia

(ANTIMEDIA)  — The world’s major banking institutions, however begrudgingly, may be starting to change their tune on the legitimacy of cryptocurrencies. Though not surprising, this shift is rooted in the most selfish of reasons — survival.

Last week, in an annual report filed with the U.S. Securities and Exchange Commission, Bank of America acknowledged that the growing acceptance of digital assets like bitcoin poses a major threat to its business model.

“Technological advances and the growth of e-commerce have made it easier for non-depository institutions to offer products and services that traditionally were banking products,” the report authors write, noting that this increased competition could “reduce our net interest margin and revenues.”

Indeed, Bank of America, which recently barred its customers from using credit cards to purchase cryptocurrencies, seems very much concerned that this “widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems” could have it falling out of favor with customers if it doesn’t adapt to the changing landscape:

“Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.”

A failure to do adapt, the report states, could “negatively affect our earnings” and adversely affect “the willingness of our clients to do business with us.” Staying relevant, however, would require “substantial expenditures” to Bank of America’s existing business model.

On the issue of adapting, the authors acknowledge that Bank of America already faces “competitors with more experience and more established relationships with clients, regulators and industry participants in the relevant market, which could adversely affect our ability to compete.”

Astonishingly, the report even admits that the bank may already be too late to the game:

“We might not be successful in developing or introducing new products and services, integrating new products or services into our existing offerings, responding or adapting to changes in consumer behavior, preferences, spending, investing and/or saving habits, achieving market acceptance of our products and services, reducing costs in response to pressures to deliver products and services at lower prices or sufficiently developing and maintaining loyal customers.”

While this is just one report from one bank — a bank that happens to be the second largest in the U.S. in terms of assets — it’s difficult to imagine that other major financial institutions aren’t experiencing similar concerns about the ever-expanding cryptocurrency movement.



Title: Crypto Carnage Continues - Bitcoin Back Below $7,000, Ether Under $400
Post by: RE on March 30, 2018, 12:14:12 PM
Are the Winklevoss Twins still Billionaires?  ???   :icon_scratch:

RE

https://www.zerohedge.com/news/2018-03-30/crypto-carnage-continues-bitcoin-back-below-7000-ether-under-400 (https://www.zerohedge.com/news/2018-03-30/crypto-carnage-continues-bitcoin-back-below-7000-ether-under-400)

Crypto Carnage Continues - Bitcoin Back Below $7,000, Ether Under $400

Despite a brief bounce overnight, cryptos are sliding once again with Bitcoin below $7,000; Ethereum below $400; and Ripple back below 50c.

"It's a sea of red," said one seasoned crypto-trader, adding after a stoic pause, "again!"

Amid the worst month for tech stocks in years, cryptos are in freefall...

 

 

Bitcoin is back below $7,000...

 

Heading towards its early Feb lows...

 

As CoinTelegraph notes, the overall market slump could be attribued to both Twitter’s recent announcment that would ban crypto-related ads, following on the heels of similar announcements from Google and Facebook, or Mailchimp’s apparent closure of crypto-related accounts.

In response to the social media ad bans, crypto and Blockchain associations in RussiaSouth Korea, and China have created a joint assocation in order to sue the social media giants, including Yandex, referring to the bans as “market manipulation” by “monolopies.”

Regulatory crackdowns on crypto could also be compounding the market’s downward trend, as two Japanese exhanges this week have decided to close instead of working with regulators for compliance.

Title: Cryptogeddon - Bitcoin Breaks Below $7,000; Ether Down 75% From Highs
Post by: RE on April 01, 2018, 11:58:20 AM
I don't think the Winklevoss Twins are Billionaires anymore.  :(

RE

https://www.zerohedge.com/news/2018-04-01/cryptogeddon-bitcoin-breaks-below-7000-ether-down-75-highs (https://www.zerohedge.com/news/2018-04-01/cryptogeddon-bitcoin-breaks-below-7000-ether-down-75-highs)

Cryptogeddon - Bitcoin Breaks Below $7,000; Ether Down 75% From Highs

As if the last few weeks were not bad enough, cryptocurrencies are re-tumbling since Friday's close.


 Once again there is no clear catalyst but headlines from crypto world include South Korean and Thai regulators preparing to unveil their crypto-tax proposals (and notably the maze of details surrounding US tax requirements for cryptos may also be forcing some unwinds to cover unforeseen 'costs').

The Kazakh National Bank has banned crypto-mining and The FBI has issued a warning regarding fraud and cryptos.

Bitcoin is now below $7,000 - a level it first hit in October 2017 - down 67% from its record high in December.

Ethereum is worse - down 75% from its highs and back below $400, this is the lowest level for the second largest crypto by market cap since November 2017.

 

While this collapse is very reminiscent of the dotcom debacle, CoinTelegraph's Nikolai Kuznetsov  sees innovation and sustainability.

While it is only prudent and smart for anyone entering the crypto space to proceed with caution especially when it comes to trading and investing in crypto assets, it would be unfair to be totally dismissive of what the Blockchain technology has brought about. The parallels with the dotcom bubble should serve as lessons to stakeholders.

One must remember that the aftermath of the dotcom bubble also affirmed that truly innovative organizations and technologies could weather the storm. Companies such as Amazon and eBay proved that pairing novel ideas with good business acumen can lead to success. Surely, the situation today with crypto and the environment of dotcoms from nearly twenty years ago would have their differences. Ventures must be able to navigate these nuances in order to make the best possible decisions moving forward.

Whether or not crypto ventures will share a similar fate to dotcoms remains to be seen. At least for now, crypto stakeholders have a chance to write a different story.

Title: 💸 Collapse of Cryptocurrencies
Post by: RE on April 02, 2018, 02:15:55 AM
https://wolfstreet.com/2018/04/01/collapse-of-cryptocurrencies-in-q1-even-the-biggest-crashed-67-to-88/

Collapse of Cryptocurrencies in Q1: Even the Biggest Crashed 67% to 88%
by Wolf Richter • Apr 1, 2018 • 33 Comments   

(https://wolfstreet.com/wp-content/uploads/2018/04/US-crypto-bitcoin-2018-03-31.png)

But nothing goes to heck in a straight line.

I don’t think there has ever been an entire sector that skyrocketed as much and collapsed as quickly as the cryptocurrency space. The skyrocketing phase culminated at the turn of the year. Then the collapse phase set in, with different cryptos choosing different points in time.

It doesn’t help that regulators around the world have caught on to these schemes called initial coin offerings (ICOs), where anyone, even the government of Venezuela, can try to sell homemade digital tokens to the gullible and take their “fiat” money from them and run away with it. There are now 1,596 cryptocurrencies and tokens out there, up from a handful a few years ago. And the gullible are getting cleaned out.

And it doesn’t help that the ways to promote these schemes are being closed off, one after the other.

At the end of January, Facebook announced that, suddenly, “misleading or deceptive ads have no place on Facebook,” and it prohibited ads about ICOs and cryptos.

On March 14, Google announced that it will block ads with “cryptocurrencies and related content,” including ICOs, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice. Its crackdown begins in June.

On March 26, Twitter announced that it would ban ads of ICOs, cryptocurrency exchanges, and cryptocurrency wallet services, unless they are by public companies traded on major stock markets. It will roll out its policy over the next 30 days.

On March 29, MailChimp, a major email mass-distribution service, announced that it will block email promos from businesses that are “involved in any aspect of the sale, transaction, exchange, storage, marketing or production of cryptocurrencies, virtual currencies, and any digital assets related to an Initial Coin Offering.” This broadened and tightened its policy announced in February that promised to shut down any account related to promos of ICOs or blockchain activity.

The overall cryptocurrency space, in terms of market capitalization, peaked on January 4, when market cap reached $707 billion, according to CoinMarketCap. Less than three months later, market cap has now plunged by 65% to $245 billion. $462 billion went up in smoke.

Here’s how the top five cryptos did over the past few months. Together they account for 76% of the total market cap of the space:

Bitcoin plunged 67% from its peak of $19,982 on December 17, to $6,573 at the moment. In just over three months, its market cap collapsed by $225 billion, from $336 billion to $111 billion. But as this chart shows, nothing goes to heck in a straight line (chart via CoinMarketCap):

Ethereum plunged 74% from its peak of $1,426 on January 13, to $367 at the moment. Market cap collapsed by $102 billion, from $138 billion to $36 billion (chart via CoinMarketCap):

Ripple plunged 88% from its peak of $3.84 on January 4 to $0.47. Over the period, its market cap went from $148 billion to $18 billion. On March 28, when I last wrote about the collapse of Ripple, it was at $0.57, but has since plunged another 18% (chart via CoinMarketCap):

Bitcoin Cash plunged 85% from its peak of $4,138 on December 20 to $632 at the moment. Market cap dropped from $70 billion to $10.8 billion. It was split from Bitcoin last August. On November 12, I featured Bitcoin Cash, in an article subtitled “Peak Crypto Craziness?” I was observing, practically in real time, how it quadrupled in two days to $2,448. It is now back where that quadrupling had started out:

Litecoin plunged 70% from its peak of $363 on December 19, to $110 at the moment. Curiously, its founder admitted on December 20 that he’d wisely cashed out at or near the peak by selling his entire stake. The true believers who bought the tokens have been eating losses ever since. Market cap went from $19.7 billion to $6.2 billion.

EOS plunged 71% from its peak of $18.16 on January 12, to $5.30. Market cap went from $11 billion to $4.1 billion: I pooh-poohed it on December 18 with “The Hottest, Largest-Ever Cryptocurrency ICO Mindblower.” The purchase agreement that buyers in the ICO had to sign – the ICO was not offered in the US due to legality issues – stated explicitly that holders of EOS have no rights to anything related to the EOS platform, and that they get nothing other than the digital token. Here is what the chart of this scam looks like:

And the blockchain technology (the distributed ledger technology) has nothing to do with cryptos. Cryptos merely use it. There have been a number of efforts underway for years to find large-scale commercial use for blockchain, outside of the crypto space. Those efforts have yet to bear fruit, though they may someday. All we have for now are small-scale experiments. Even if blockchain finds large-scale use, it will do nothing for these collapsing cryptos.

But the ancient theory that nothing goes to heck in a straight line still holds true, borne out by the charts above, and we can expect sharp volatility and a good amount of whiplash on the way there.

And here is an update on the hated “fiat” currency, the US dollar that cryptos were supposed to annihilate or at least obviate. Read… What Could Dethrone the Dollar as Top Reserve Currency?
Title: Re: P O O F ! Goes The Crypto
Post by: Palloy2 on April 02, 2018, 07:12:42 AM
What is more important for cryptocurrencies is, not the variations in the coin/USD price, but how many retailers are set up to accept the currency.  If you can still buy what you want with it, then it hasn't "gone to zero".  The transactions can only be processed if there are enough miners working on them.  That might be a problem for many.
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on April 02, 2018, 08:05:25 AM
Crypto sounds good until you realize that it can't exist in a powered-down world, which is surely coming. That's what made me decide to give it a wide berth.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on April 02, 2018, 08:18:02 AM
Crypto sounds good until you realize that it can't exist in a powered-down world, which is surely coming. That's what made me decide to give it a wide berth.

Forget Crypto.  Just imagine the havoc the day the CCs go down for good.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on April 02, 2018, 08:28:49 AM
It seems like CC's have been around a long time, but I remember when VISA was invented. Paul Hawken had a chapter in his book (The Seven Laws of Money? Think that was it. I read it in the early 90's) written by the guy who dreamed it up. That guy probably did okay, retirement-wise, LOL.

If I were one of those guys who got in on crypto early and still had huge gains against gov't fiat, I'd be spending it on real assets as fast as I could. We will probably live to see it go to zero.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on April 02, 2018, 08:55:56 AM
It seems like CC's have been around a long time, but I remember when VISA was invented. Paul Hawken had a chapter in his book (The Seven Laws of Money? Think that was it. I read it in the early 90's) written by the guy who dreamed it up. That guy probably did okay, retirement-wise, LOL.

If I were one of those guys who got in on crypto early and still had huge gains against gov't fiat, I'd be spending it on real assets as fast as I could. We will probably live to see it go to zero.

I wrote an article a while back about the beginnings of the CC system, don't remember the title though.  Started before VISA with Diner's Club and American Express.  They had to do the credit checks over the phone, it wasn't automated as it is today.  Remember those Card Swipers that took an imprint of the raised lettering on your card?  lol.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: Surly1 on April 02, 2018, 09:55:09 AM
It seems like CC's have been around a long time, but I remember when VISA was invented. Paul Hawken had a chapter in his book (The Seven Laws of Money? Think that was it. I read it in the early 90's) written by the guy who dreamed it up. That guy probably did okay, retirement-wise, LOL.

If I were one of those guys who got in on crypto early and still had huge gains against gov't fiat, I'd be spending it on real assets as fast as I could. We will probably live to see it go to zero.

I wrote an article a while back about the beginnings of the CC system, don't remember the title though.  Started before VISA with Diner's Club and American Express.  They had to do the credit checks over the phone, it wasn't automated as it is today.  Remember those Card Swipers that took an imprint of the raised lettering on your card?  lol.

RE

Damned right.
(http://ecx.images-amazon.com/images/I/31KH2YEV-IL.jpg)

Now THERE was something permanent.  :icon_mrgreen: :icon_mrgreen:
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on April 02, 2018, 09:58:43 AM
I'm sure I have one of those things somewhere. I wore out a few.
Title: Re: P O O F ! Goes The Crypto
Post by: RE on April 02, 2018, 10:28:56 AM
Here's another Memory for you.

Back in the mid-70s while in college, I got my first Plastic Money, issued by Chemical Bank. This before they were acquired by Chase Manhattan, later acquired by JP Morgan after they had also acquired Manufacturer's Hanover.  ::)

Chemical had a branch office on 112th Street & Broadway on the Upper West Side, just a couple of blocks south of the Columbia Campus which is between 114th & 121st Street & Broadway and Amsterdam Avenues.  They had one of the first "Cash Machines" (what we call ATMs now) and this was the reason I set up my checking account with them.  I was taking home decent money in my Work-Study job doing research int Radioimmunoassay testing.  My credit line wasn't huge, but not bad for a college age kid of the era.

After a night of serious Partying with my FIT (Fashion Institute of Technology) or Joffrey Dancer of the night, a stop at the Cash Machine was often necessary to buy another gram of Coke from one of my Dealer friends.  I wasn't going to get laid without some more Coke to stuff up her nose.  Also could not buy more beer, because at the time the delis that were still open at bar closing time (4AM) dd not take Plastic.  No Cash, no Beer.

The problem at the time was that if you were too shit faced and punched in the wrong PIN code, the machine would EAT your card!  :o You couldn't get it back until after the weekend when the branch opened up again.

This unfortunate event happened to me several times and put a big dent in my sex life.  :(

RE
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on April 02, 2018, 01:16:14 PM
Here's another Memory for you.

Back in the mid-70s while in college, I got my first Plastic Money, issued by Chemical Bank. This before they were acquired by Chase Manhattan, later acquired by JP Morgan after they had also acquired Manufacturer's Hanover.  ::)

Chemical had a branch office on 112th Street & Broadway on the Upper West Side, just a couple of blocks south of the Columbia Campus which is between 114th & 121st Street & Broadway and Amsterdam Avenues.  They had one of the first "Cash Machines" (what we call ATMs now) and this was the reason I set up my checking account with them.  I was taking home decent money in my Work-Study job doing research int Radioimmunoassay testing.  My credit line wasn't huge, but not bad for a college age kid of the era.

After a night of serious Partying with my FIT (Fashion Institute of Technology) or Joffrey Dancer of the night, a stop at the Cash Machine was often necessary to buy another gram of Coke from one of my Dealer friends.  I wasn't going to get laid without some more Coke to stuff up her nose.  Also could not buy more beer, because at the time the delis that were still open at bar closing time (4AM) dd not take Plastic.  No Cash, no Beer.

The problem at the time was that if you were too shit faced and punched in the wrong PIN code, the machine would EAT your card!  :o You couldn't get it back until after the weekend when the branch opened up again.

This unfortunate event happened to me several times and put a big dent in my sex life.  :(

RE


Do these new "Dick Tracy" watches know if your to piss-pants shitfaced to function & cut your funds off ?
Title: Banks Embrace Biometric Tracking of Customers, Cybertheft Explodes
Post by: azozeo on April 08, 2018, 12:53:52 PM
https://wolfstreet.com/2018/04/08/banks-biometric-tracking-of-customers-in-cybertheft-mexico/


Title: P O O F ! Goes The Crypto - All Major Financial Inst. going Block Chain (FBI)
Post by: azozeo on June 24, 2018, 10:17:12 AM
http://cointhud.com/fbi-consultant-major-bank-adopt-blockchain/?u (http://cointhud.com/fbi-consultant-major-bank-adopt-blockchain/?u)


FBI consultant reveals banks are moving towards the Blockchain

Master forger-turned FBI consultant Frank Abagnale, has revealed that every major bank is preparing to adopt Blockchain technology.

The real-life character from the popular movie “Catch Me If You Can,” made the revelation at the Blockchain Nation Miami Conference.

Abagnale says that the world’s biggest banks know that Blockchain is the future of secure data processing and payment settlement.

Speaking at the event, FBI advisor Abagnale said:

    “I think you would have to be pretty ignorant not to realise that blockchain is the way for the future, it is the best way to secure information 100 percent, so I think you will see banks, especially accounting practices and accounting firms, all move to the blockchain, keeping records through blockchain.

    “It will be the best way to do so because you cannot break the blockchain, you cannot hack into the blockchain, you can’t change anything in the blockchain.”

Expert opinion

Abagnale worked as a security consultant towards the end of his career.

Between the age of 15 and 21 years old, however, he was considered a master forger, who stole large sums of money.

In his speech, Abagnale explains that he observed major airlines and car rental companies like United Airlines and Hertz dropping off large sums of cash in zip-up bags in airports.

Abagnale says he bought a security guard costume, made a fake sign that read, “Out of Service, Place Deposits With Security Guard on Duty,” and walked away with millions of dollars.

Throughout his career as a forger, Abagnale faked cheques that he cashed out from big banks and financial institutions.

Eventually, Abagnale was found guilty of committing bank fraud and served his sentence in Miami.
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After his release, he started his career as a consultant, advising the FBI among others.

FBI Consultant: Every Major Bank is Preparing to Adopt Blockchain

Abagnale’s says the blockchain and cryptocurrency are noteworthy because he himself wouldn’t be able to defraud the system.

Bank fraud, which Abagnale is an expert, is not possible with the Blockchain.

Bitcoin, for example, can be used to send funds from one person or business to another.

The money is transferred without the need for security boxes armored cars, or third-party service providers.

It isn’t possible to forge or create more Bitcoin without running a 51 percent attack against the network,

Given the computing power required for such an attack, it is virtually impossible.

Abagnale continues:

    “One would have to be incredibly foolish not to see that [blockchain] is an incredible technology and that will be eventually adopted by all types of governments, businesses, and corporations.

    “A cyber currency [cryptocurrency], just like anything else, it will take time to get people to understand how it works and I tell people all the time, and they say “is it safe?” I say every financial transaction has a risk.

    “The only financial transaction in the world that exists that has no risk is a credit card because federal law takes total liability away from you.”

Blockchain adoption curve

As Abagnale emphasizes, digital currencies like Bitcoin and Ethereum are still in their infancy.

Ethereum is less than three years old and for these technologies to be adopted, it may take well over a decade, as seen with the adoption of the internet.

Title: P O O F ! Goes The Crypto - These Cats Will Hook You Up
Post by: azozeo on June 29, 2018, 11:06:20 AM
https://tradegeniusacademy.com/
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on August 26, 2018, 09:33:01 AM


Futurism
by Victor Tangermann August 23, 2018 Sci-Fi Visions

CRYPTO CRACKDOWN. More than 120 offshore cryptocurrency exchanges have been blocked by Chinese authorities, the South China Morning Postreports. The exact reasoning is not entirely clear — the central bank didn’t respond to calls from SCMPreporters — though some speculate that the crackdown is a response to increasing financial risk and instability.



https://futurism.com/chinese-cryptocurrency-crackdown/
Title: P O O F ! Goes The Crypto - Fiat Loans for Crypto IS HERE !
Post by: azozeo on December 10, 2018, 10:53:03 AM


Australian Company Issues Loans Backed by Cryptocurrencies

A Melbourne-based company is now offering crypto-backed loans. Helio operates under an Australian Credit License (ACL) issued by the Australian Securities and Investments Commission (ASIC). In the current bear market, cryptocurrency holders can borrow fiat money and keep their digital coins for better times.   

https://news.bitcoin.com/australian-company-issues-loans-backed-by-cryptocurrencies/
Title: Re: P O O F ! Goes The Crypto - Fiat Loans for Crypto IS HERE !
Post by: Eddie on December 10, 2018, 11:23:58 AM


Australian Company Issues Loans Backed by Cryptocurrencies

A Melbourne-based company is now offering crypto-backed loans. Helio operates under an Australian Credit License (ACL) issued by the Australian Securities and Investments Commission (ASIC). In the current bear market, cryptocurrency holders can borrow fiat money and keep their digital coins for better times.   

https://news.bitcoin.com/australian-company-issues-loans-backed-by-cryptocurrencies/

You'll be seeing more of these pop up. NEXO seems better, from what I know. Many of these companies only offer peer-to-peer loans, which sounds good, but has it's problems.
Title: Re: P O O F ! Goes The Crypto - Fiat Loans for Crypto IS HERE !
Post by: azozeo on December 10, 2018, 11:51:49 AM


Australian Company Issues Loans Backed by Cryptocurrencies

A Melbourne-based company is now offering crypto-backed loans. Helio operates under an Australian Credit License (ACL) issued by the Australian Securities and Investments Commission (ASIC). In the current bear market, cryptocurrency holders can borrow fiat money and keep their digital coins for better times.   

https://news.bitcoin.com/australian-company-issues-loans-backed-by-cryptocurrencies/

You'll be seeing more of these pop up. NEXO seems better, from what I know. Many of these companies only offer peer-to-peer loans, which sounds good, but has it's problems.


It's just a BIG game....

Full of sketchy playa's  :evil4:
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on January 02, 2019, 09:53:29 AM

Cryptocurrency’s Terrible 2018

Evangelista's to the Rescue .......

Prices plummeted. Scams abounded. But this bitcoin evangelist sees positives in the “year of consolidation.”

https://slate.com/technology/2018/12/bitcoin-price-cryptocurrency-bubble-burst.html
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on January 02, 2019, 10:08:45 AM

Cryptocurrency’s Terrible 2018

Evangelista's to the Rescue .......

Prices plummeted. Scams abounded. But this bitcoin evangelist sees positives in the “year of consolidation.”

https://slate.com/technology/2018/12/bitcoin-price-cryptocurrency-bubble-burst.html

When I started researching this market 4-5 months ago, I thought the 2018 Bitcoin Crash represented a good time to make some decent bets on good cryptos, if I could avoid the many pitfalls.

As of now I'm getting much more excited, because a number of things are happening that have made the outlook a whole lot more positive. The general public and even the financial press is absolutely clueless. Right now is the calm before the storm.

There will margin call days in 2019 that put hickeys in the crypto market, because cryptos are liquid assets that people sell to meet margin calls on stocks. But generally speaking, a perfect storm is in place to catapult cryptos much, much higher.

That's my honest opinion, not to be construed as financial advice, not that doomers ever take my advice anyway.

But I am now pretty well positioned, even though I'd like to double my bet from here. I expect to make a shit ton of money, frankly. if I don't, I won't have to sell the farm or anything, but it sure would be nice to be as rich as RE tries to claim I am.  LOL.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on January 02, 2019, 10:15:39 AM
Doomer Financial Advice, That's a new one  :icon_mrgreen:
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on January 02, 2019, 10:20:36 AM
I've been writing on that theme for what, 2-3 years now? I'd have thought you might have noticed. LOL.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on January 02, 2019, 10:21:35 AM
Blonde moment  :icon_sunny:
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on January 05, 2019, 12:42:31 PM

Ethereum Plans to Cut Its Absurd Energy Consumption by 99 Percent

The cryptocurrency is going on an energy diet to compete with more efficient blockchains


https://spectrum.ieee.org/computing/networks/ethereum-plans-to-cut-its-absurd-energy-consumption-by-99-percent
Title: P O O F ! Goes The Crypto - EBT snap cards inop in Indy !
Post by: azozeo on January 08, 2019, 11:49:05 AM
It’s STARTING: A Grocery Store in Indiana SAYS They Can’t Process Food Stamp Payments Due to Govt. Shutdown


https://www.theorganicprepper.com/cant-process-food-stamp-payments-due-to-govt-shutdown/ (https://www.theorganicprepper.com/cant-process-food-stamp-payments-due-to-govt-shutdown/)
Title: P O O F ! Goes The Crypto- Russia Buys $10B in crypto
Post by: azozeo on January 15, 2019, 03:24:16 AM

While the market has been increasingly focused on the rising headwinds in the global economy in general, and China’s economic slowdown in particular, while the media is obsessing over daily revelations that Trump may or may not have colluded with Russia to get elected, a far more critical, if underreported, shift has been taking place over the past year.

As we reported in June, whether due to concerns over draconian western sanctions and asset confiscations following the poisoning of former Russian military officer Sergei Skripal, or simply because it wanted to diversify away from the dollar, Russia liquidated virtually all of its Treasury holdings in the late spring and early summer, in the process sparking a major repricing of the 10Y US Treasury, whose yield jumped from 2.70% at the start of April to a high of 3.10% in May, a move which economists were struggling to explain at the time.

https://www.zerohedge.com/news/2019-01-14/russia-prepares-buy-10-billion-bitcoin-evade-us-sanctions (https://www.zerohedge.com/news/2019-01-14/russia-prepares-buy-10-billion-bitcoin-evade-us-sanctions)
Title: Wyoming Senate Passes Bill Recognizing Crypto as Money
Post by: azozeo on February 03, 2019, 11:36:19 AM

The Senate of the U.S. state of Wyoming has passed a bill which defines cryptocurrency as property and establishes rules including for allowing banks to provide crypto custodial services. For secured transactions, however, the bill recognizes cryptocurrency as money subject to some of the same rules as money in the state.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations


https://news.bitcoin.com/wyoming-senate-passes-bill-recognizing-cryptocurrency-money/
Title: A bitcoin millionaire created a haven for ‘anarcho-capitalists’ in Mexico,
Post by: azozeo on February 08, 2019, 05:58:32 AM
A bitcoin millionaire created a haven for ‘anarcho-capitalists’ in Mexico, He Got Bullets Instead......



John Galton and his girlfriend Lily Forester had finally made it. On a March 2017 evening, the young American couple sat on their balcony above Acapulco, Mexico, counting their blessings. They’d recently moved into a big house on a mountainside and were eyeing an ambitious push into the artisanal bong business.

Galton and Forester were anarcho-capitalists who slipped U.S. drug charges worth 25 years in prison, they said in a YouTube video that night. They’d hopped the border and resettled in what Galton called one of the world’s “pockets of freedom,” a community billed as a libertarian paradise.


https://www.thedailybeast.com/john-galton-wanted-libertarian-paradise-in-anarchapulco-he-got-bullets-instead (https://www.thedailybeast.com/john-galton-wanted-libertarian-paradise-in-anarchapulco-he-got-bullets-instead)
Title: Re: A bitcoin millionaire created a haven for ‘anarcho-capitalists’ in Mexico,
Post by: Eddie on February 08, 2019, 06:44:57 AM
A bitcoin millionaire created a haven for ‘anarcho-capitalists’ in Mexico, He Got Bullets Instead......



John Galton and his girlfriend Lily Forester had finally made it. On a March 2017 evening, the young American couple sat on their balcony above Acapulco, Mexico, counting their blessings. They’d recently moved into a big house on a mountainside and were eyeing an ambitious push into the artisanal bong business.

Galton and Forester were anarcho-capitalists who slipped U.S. drug charges worth 25 years in prison, they said in a YouTube video that night. They’d hopped the border and resettled in what Galton called one of the world’s “pockets of freedom,” a community billed as a libertarian paradise.


https://www.thedailybeast.com/john-galton-wanted-libertarian-paradise-in-anarchapulco-he-got-bullets-instead (https://www.thedailybeast.com/john-galton-wanted-libertarian-paradise-in-anarchapulco-he-got-bullets-instead)

You don't go into the illegal drug biz in Mexico if you're a twenty-something white kid with dreads. Fucking moron.

I wouldn't even spend the night in Acapulco these days. I'm even a little squinchy about Tulum, and that's my old stomping grounds.

Too many narco cowboys with guns. Life is cheap in Mexico. They shot a guy off his fuckin' jetski in Lake Amistad because they mistook him for somebody else (or maybe because he really was freelancing, dunno). Mexico is not a safe space.
Title: Re: A bitcoin millionaire created a haven for ‘anarcho-capitalists’ in Mexico,
Post by: Eddie on February 08, 2019, 07:11:30 AM
A bitcoin millionaire created a haven for ‘anarcho-capitalists’ in Mexico, He Got Bullets Instead......



John Galton and his girlfriend Lily Forester had finally made it. On a March 2017 evening, the young American couple sat on their balcony above Acapulco, Mexico, counting their blessings. They’d recently moved into a big house on a mountainside and were eyeing an ambitious push into the artisanal bong business.

Galton and Forester were anarcho-capitalists who slipped U.S. drug charges worth 25 years in prison, they said in a YouTube video that night. They’d hopped the border and resettled in what Galton called one of the world’s “pockets of freedom,” a community billed as a libertarian paradise.


https://www.thedailybeast.com/john-galton-wanted-libertarian-paradise-in-anarchapulco-he-got-bullets-instead (https://www.thedailybeast.com/john-galton-wanted-libertarian-paradise-in-anarchapulco-he-got-bullets-instead)

You don't go into the illegal drug biz in Mexico if you're a twenty-something white kid with dreads. Fucking moron.

I wouldn't even spend the night in Acapulco these days. I'm even a little squinchy about Tulum, and that's my old stomping grounds.

Too many narco cowboys with guns. Life is cheap in Mexico. They shot a guy off his fuckin' jetski in Lake Amistad because they mistook him for somebody else (or maybe because he really was freelancing, dunno). Mexico is not a safe space.

I see people who might be cartel here all the fucking time. I saw some last Friday night at Bartlett's. Big table, guys in cowboy hats with their wives and kids. Bartlett's is not a place where poor immigrants eat.

I've had guys come into my office and pay cash money to pay for thousands of bucks worth of dental work, eager to get it done as fast as I'm willing to proceed. Young guys who don't speak any English. Nice hats and boots.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 08, 2019, 11:16:26 AM
I guess we need a wall then wouldn't u say ?  :icon_mrgreen:

Dopey ass white kids with deep pockets need no neck meatheads in the Adult Day Care dept.....
Title: Four Iranian Banks Support Gold-Backed Cryptocurrency
Post by: azozeo on February 08, 2019, 11:24:12 AM

By Adrian Zmudzinski
FEB 05, 2019

Four banks in the Islamic Republic of Iran have developed a gold-backedcryptocurrency called PayMon, financial news website Financial Tribune reportedon Jan. 30.

According to the article, the crypto asset has been developed in cooperation with the Parsian Bank, the Bank Pasargad, Bank Melli Iran and Bank Mellat. Iran Fara Bourse, an over-the-counter (OTC) cryptocurrency exchange, will reportedly list the new cryptocurrency.

The director of Kuknos, the blockchain company taking care of the technical aspects, said that the new crypto asset is a way to tokenize assets and excess properties of the banks. A billion PayMon tokens will be initially released, according to the article.

As Cointelegraph recently reported, Iran is allegedly negotiating with Switzerland, South Africa, France, the United Kingdom, Russia, Austria, Germany and Bosnia to carry out financial transactions in cryptocurrency.

Recently, rumors spread that Iran could unveil its state-backed cryptocurrency at the Electronic Banking and Payment Systems conference that took place last week in Tehran, but the announcement has not been made as of press time. In July 2018, it was reported that the country confirmed that it will create its own state-issued cryptocurrency to circumvent United States sanctions.


https://cointelegraph.com/news/four-iranian-banks-support-gold-backed-cryptocurrency
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 08, 2019, 11:53:15 AM
I guess we need a wall then wouldn't u say ?  :icon_mrgreen:

Dopey ass white kids with deep pockets need no neck meatheads in the Adult Day Care dept.....

Way cheaper to legalize the drugs and fire the DEA and all the narcs, than build a wall.

The cartels made so much money they own Mexico now. Park Place and Boardwalk too, and they have hotels on both.

When you get enough money in our world, it does not matter that much where it came from. The money just makes you a force to be reckoned with, and it makes you legit on a lot of levels.

I'm not saying its right....but what i am saying is that those people have power. Walls don't means shit to people who own private jets. You get what I'm saying? Walls won't work on people with billions of bucks, and they have that now. They're just here, and they're not about to be kicked out. They contribute a lot of money to the US economy and they ARE the Mexican economy.

That's the reality.

I'm not a wall guy.  The whole Wall story is just about pumping up the Trump base. it sounds good to them, but those people are like kids who will never grow up. They're one step above being retarded.

Guys like Trump will say anything. He doesn't give a shit about keeping out the cartel. He'd love to sell them an over-priced condo, like he did to all the Russian dirty money guys in the 90's.  It's not about the wall. It's about the votes.
Title: Re: Four Iranian Banks Support Gold-Backed Cryptocurrency
Post by: Eddie on February 08, 2019, 12:07:06 PM

By Adrian Zmudzinski
FEB 05, 2019

Four banks in the Islamic Republic of Iran have developed a gold-backedcryptocurrency called PayMon, financial news website Financial Tribune reportedon Jan. 30.

According to the article, the crypto asset has been developed in cooperation with the Parsian Bank, the Bank Pasargad, Bank Melli Iran and Bank Mellat. Iran Fara Bourse, an over-the-counter (OTC) cryptocurrency exchange, will reportedly list the new cryptocurrency.

The director of Kuknos, the blockchain company taking care of the technical aspects, said that the new crypto asset is a way to tokenize assets and excess properties of the banks. A billion PayMon tokens will be initially released, according to the article.

As Cointelegraph recently reported, Iran is allegedly negotiating with Switzerland, South Africa, France, the United Kingdom, Russia, Austria, Germany and Bosnia to carry out financial transactions in cryptocurrency.

Recently, rumors spread that Iran could unveil its state-backed cryptocurrency at the Electronic Banking and Payment Systems conference that took place last week in Tehran, but the announcement has not been made as of press time. In July 2018, it was reported that the country confirmed that it will create its own state-issued cryptocurrency to circumvent United States sanctions.


https://cointelegraph.com/news/four-iranian-banks-support-gold-backed-cryptocurrency

Not sure how this will go. I give Iran a better chance with their crypto than Venezuela. Nobody is going to buy the Petro, because nobody trusts the people behind it. It's that simple. Bad as the other side is, Maduro is a liar and a thief, and he's surrounded himself with many more like him.

Iran might be able to pull it off. The mullahs must be doing a lot of handwaving, because the Koran doesn't exactly support this move, from what I know about Islam.....but they can probably figure out a way to make it acceptable, if it suits their purposes. Religion can alway adapt to economic necessity.

I wouldn't buy it. Crypto shouldn't need to be backed by gold. The whole idea is that it's a system that does NOT require trust.

And there already is at least one supposedly gold backed crypto, and it's not that popular.  Wall Street gold ETF's are supposed to be gold backed too, but I wouldn't count on it in a crunch.  Nobody here could ever redeem that crypto for Iranian gold, even if the Iranians could be trusted. It'd violate sanctions.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 08, 2019, 02:17:38 PM
I guess we need a wall then wouldn't u say ?  :icon_mrgreen:

Dopey ass white kids with deep pockets need no neck meatheads in the Adult Day Care dept.....

Way cheaper to legalize the drugs and fire the DEA and all the narcs, than build a wall.

The cartels made so much money they own Mexico now. Park Place and Boardwalk too, and they have hotels on both.

When you get enough money in our world, it does not matter that much where it came from. The money just makes you a force to be reckoned with, and it makes you legit on a lot of levels.

I'm not saying its right....but what i am saying is that those people have power. Walls don't means shit to people who own private jets. You get what I'm saying? Walls won't work on people with billions of bucks, and they have that now. They're just here, and they're not about to be kicked out. They contribute a lot of money to the US economy and they ARE the Mexican economy.

That's the reality.

I'm not a wall guy.  The whole Wall story is just about pumping up the Trump base. it sounds good to them, but those people are like kids who will never grow up. They're one step above being retarded.

Guys like Trump will say anything. He doesn't give a shit about keeping out the cartel. He'd love to sell them an over-priced condo, like he did to all the Russian dirty money guys in the 90's.  It's not about the wall. It's about the votes.

"All the worlds a stage, and we are but mere actors" How apropos.....

That wall nonsense is the biggest lie of 45's term, & there's a lot of them. I'm just screwin' around as usual.

Under the radar, always.... or figure out how to manifest the 5th  :icon_sunny:
Title: Move over Vegas Baby ! It's Cryptopulco TIME ....
Post by: azozeo on February 10, 2019, 08:18:38 AM
http://www.youtube.com/v/VDZWKnXzf2o&fs=1
Title: Re: Move over Vegas Baby ! It's Cryptopulco TIME ....
Post by: Eddie on February 10, 2019, 10:11:12 AM
http://www.youtube.com/v/VDZWKnXzf2o&fs=1

That's Jeff Berwick's personal fundraiser, more or less.

He lives in Acapulco and claims it's safer than living in the US....and maybe it is for him, since the IRS would probably throw him under the jail if he lived here. He's a Canadian anyway....but crypto-anarchists with money tend to become ex-pats to whatever jurisdiction is the least taxing in terms of....taxes.

It isn't safer, as the recent murder of Bong Boy John "Galton" makes perfectly clear. As I said, I wouldn't want to even visit.

However.....the Sea of Cortez would be a fine place to live on a boat, if you had the money. The marinas are not super cheap. Corpus Christi is a cheaper place to live....

Guaymas is an easy drive from Tuscon, and a great place to live on a boat, from what I gather. FYI.

I love Mexico. I wish the narco cowboys would go out of  business.

Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on February 19, 2019, 12:28:47 PM

Once hailed as unhackable, blockchains are now getting hacked
More and more security holes are appearing in cryptocurrency and smart contract platforms, and some are fundamental to the way they were built.


https://www.technologyreview.com/s/612974/once-hailed-as-unhackable-blockchains-are-now-getting-hacked/ (https://www.technologyreview.com/s/612974/once-hailed-as-unhackable-blockchains-are-now-getting-hacked/)
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on February 19, 2019, 12:55:20 PM

Once hailed as unhackable, blockchains are now getting hacked
More and more security holes are appearing in cryptocurrency and smart contract platforms, and some are fundamental to the way they were built.


https://www.technologyreview.com/s/612974/once-hailed-as-unhackable-blockchains-are-now-getting-hacked/ (https://www.technologyreview.com/s/612974/once-hailed-as-unhackable-blockchains-are-now-getting-hacked/)

Just depends. XRP has never been hacked and never will be.

In general it is MINED coins that are the most hackable. It's not quite that simple, but that's a  good rule of thumb. One reason I don't own a single mined coin. Zero.
Title: Re: POP Goes The Crypto
Post by: Eddie on February 19, 2019, 01:47:47 PM
It's looking more likely every day that Bitcoin turned the corner on February 8th, just over ten days ago. All I'm waiting on now to declare a new bull market for cryptocurrencies is for BTC to rise above it's Dec 24th high of roughly $4180. It could still retrace, but we're very close to having a good technical confirmation of a brand new cycle.

My crypto mentor has also called a bottom as of this morning. My chart voodoo is slightly different than hers, but we are in fairly close agreement that the worst is over, and we go up from here.

BTC has been trying to break out for the last 48 hours, ever since Indonesia announced that cryptos would be treated as commodities for tax purposes.

I told you guys Asia was more important than the US in this market. Since the announcement there, volume in BTC is significantly up and making a slow build. Nothing explosive yet, but that is coming, I believe.
Title: Re: POP Goes The Crypto
Post by: azozeo on February 19, 2019, 04:31:42 PM
It's looking more likely every day that Bitcoin turned the corner on February 8th, just over ten days ago. All I'm waiting on now to declare a new bull market for cryptocurrencies is for BTC to rise above it's Dec 24th high of roughly $4180. It could still retrace, but we're very close to having a good technical confirmation of a brand new cycle.

My crypto mentor has also called a bottom as of this morning. My chart voodoo is slightly different than hers, but we are in fairly close agreement that the worst is over, and we go up from here.

BTC has been trying to break out for the last 48 hours, ever since Indonesia announced that cryptos would be treated as commodities for tax purposes.

I told you guys Asia was more important than the US in this market. Since the announcement there, volume in BTC is significantly up and making a slow build. Nothing explosive yet, but that is coming, I believe.


Asians are gamblers..... They juice on the shit & you're probably right  :icon_sunny:
Don't bet the 'stead though. Thar's gold in them thar hills  :icon_mrgreen:
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on April 09, 2019, 01:23:30 PM
Eddie,

Were you riding this 1 trick pony ?  :coffee:

Canadian Crypto Exchange QuadrigaCX Officially Declared Bankrupt



Canada’s major cryptocurrency exchange QuadrigaCX has been officially declared bankrupt, local media outlet CBC reported on April 8.

Quadriga’s bankruptcy was reportedly approved today by Nova Scotia Supreme Court Justice Michael Wood, and follows the court monitor Ernst & Young’s (EY) recommendation that it should be declared bankrupt earlier this month.

EY’s legal team then argued that the ongoing restructuring process for QuadrigaCX under the Companies’ Creditors Arrangement Act (CCAA) should shift to an alternative process under the Bankruptcy and Insolvency Act (BIA).

The ruling now grants EY enhanced investigative powers as a trustee under the BIA, which means the company can require production of documents and testimony from witnesses.

Today, Wood also granted a so-called asset preservation order from EY, which extends to all assets held by Jennifer Robertson — the wife of Quadriga’s late co-founder Gerald Cotten — and the Cotten estate. The order prohibits Robertson from selling, removing and transferring any assets.

As previously reported, Quadriga filed for creditor protection when — following Cotten’s death — it lost access to its cold wallets and corresponding keys, that ostensibly held the assets owed to various clients. Currently, the exchange reportedly owes more than $195 million to over 115,000 customers.

In late March, Quadriga’s legal representatives — law firms Miller Thomson and Cox & Palmer — formed an Official Committee of Affected Users of the exchange. The committee is set to help the law firms represent all affected users in the court proceedings against QuadrigaCX.





https://cointelegraph.com/news/canadian-crypto-exchange-quadrigacx-officially-declared-bankrupt
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on April 09, 2019, 06:47:09 PM
Eddie,

Were you riding this 1 trick pony ?  :coffee:

Canadian Crypto Exchange QuadrigaCX Officially Declared Bankrupt



Canada’s major cryptocurrency exchange QuadrigaCX has been officially declared bankrupt, local media outlet CBC reported on April 8.


Quadriga’s bankruptcy was reportedly approved today by Nova Scotia Supreme Court Justice Michael Wood, and follows the court monitor Ernst & Young’s (EY) recommendation that it should be declared bankrupt earlier this month.

EY’s legal team then argued that the ongoing restructuring process for QuadrigaCX under the Companies’ Creditors Arrangement Act (CCAA) should shift to an alternative process under the Bankruptcy and Insolvency Act (BIA).

The ruling now grants EY enhanced investigative powers as a trustee under the BIA, which means the company can require production of documents and testimony from witnesses.

Today, Wood also granted a so-called asset preservation order from EY, which extends to all assets held by Jennifer Robertson — the wife of Quadriga’s late co-founder Gerald Cotten — and the Cotten estate. The order prohibits Robertson from selling, removing and transferring any assets.

As previously reported, Quadriga filed for creditor protection when — following Cotten’s death — it lost access to its cold wallets and corresponding keys, that ostensibly held the assets owed to various clients. Currently, the exchange reportedly owes more than $195 million to over 115,000 customers.

In late March, Quadriga’s legal representatives — law firms Miller Thomson and Cox & Palmer — formed an Official Committee of Affected Users of the exchange. The committee is set to help the law firms represent all affected users in the court proceedings against QuadrigaCX.


https://cointelegraph.com/news/canadian-crypto-exchange-quadrigacx-officially-declared-bankrupt

Absolutely fuckin' NOT. 

To start with, nobody should ever trust an EXCHANGE to be the custodian of their crypto. That's just taking unnecessary risk, these days. There are multiple decent options for security. When you buy crypto it goes into an exchange wallet. You should immediately move any large buys OFF the exchange and into a more secure wallet.

Offline is safest, but now there are decent mobile wallets. All my cryptos are in mobile wallets. Mostly in different ones, because I STAKE my coins. STAKING is how to make income (cash flow) from crypto. You aren't reading that much about it yet, but you will.

The people who got scammed by Quadriga simply bought some crypto and never moved it to a secure wallet. Lazy and dumb, imho.
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on May 03, 2019, 06:46:12 AM
I'll be posting this on my crypto thread too, but I though it might be appropriate to drop it here too.

There is a potential crash situation developing in real time this week I'll try to explain it, but it requires an understanding of how markets work to understand fully, and I am just starting to get clued myself.

Okay...here we go. The biggest exchange in the world right now is in Hong Kong, and the company is Bitfinex. Well backed, makes a ton of money. They came up with the world's first and hitherto most popular stablecoin, Tether.

Tether is the problem. So, I explained this before, but stablecoins are like a USD proxy....indexed to the USD. Very convenient. A way to have assets on the exchange with no crypto volatility exposure. The problem is the counter-party risk, which in this case is Bitfinex.

Bitfinex tried to claim they had 100% dollar cash in the bank to collateralize Tether, but they weren't transparent and it was questioned. This has been going on for months and months. Other, safer stablecoins have been invented elsewhere, but Tether is still number one, and it still has all the market share and all the liquidity.

New York State regulators have been on Bitfinex's ass, and so, since I've been in cryptos, USAnians aren't even allowed to open an account there. It hasn't hurt their business or affected Terher until this week.

It has been revealed that Bitfinex actually only had 74% collateralization, as a result of the ongoing attacks on Bitfinex by the regulators (this looks like a political thing to me, a backdoor attack on crypto, maybe). The regulators claim US money  has still been accepted by Bitfinex, but I'm not sure that's even true..

Now people (rich people) are trying to take large Bitcoin and Ethereum positions off the Bitfinex exchange, and so now Bitcoin is back up over $6000 on Bitfinex. That's a $200 premium over the price on the other exchanges. It looks like a major arbitrage opportunity.

But as someone more knowledgeable than I am explained it to me,

" if we look at the USDT trading pairs on all other exchanges they all report a 5% premium of $1.05. So to move money to Bitfinex you pay a 5% premium getting into a USDT position to transfer and try and buy an asset 5% higher in valuation to then move back and sell on a different exchange. It’s a wash and super risky given Bitfinex could pull the plug on withdrawals at any time. "

Meanwhile, the market price of BTC has crept up on less than reassuring volume all week, following the Bitfinex artificial premium.

This morning, the volume I was hoping to see anyway back on the 1st of the month seems to be coming in.

With the short squeeze and the action on Bitfinex, the price of Bitcoin might go parabolic and crash.

Given the heavy correlation the entire crypto space has with BTC, the alt coins I own might go parabolic if this keeps up.

But it could come down like a house of cards, if Bitfinex locks up.  Knowledgeable people I talk to say the situation with Bitfinex is at least somewhat analogous to the famous Mt. Gox crash.

If so, you heard it from me before it happened.

You're welcome.



Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on May 03, 2019, 07:28:42 AM
I'll be posting this on my crypto thread too, but I though it might be appropriate to drop it here too.

There is a potential crash situation developing in real time this week I'll try to explain it, but it requires an understanding of how markets work to understand fully, and I am just starting to get clued myself.

Okay...here we go. The biggest exchange in the world right now is in Hong Kong, and the company is Bitfinex. Well backed, makes a ton of money. They came up with the world's first and hitherto most popular stablecoin, Tether.

Tether is the problem. So, I explained this before, but stablecoins are like a USD proxy....indexed to the USD. Very convenient. A way to have assets on the exchange with no crypto volatility exposure. The problem is the counter-party risk, which in this case is Bitfinex.

Bitfinex tried to clam they had 100% dollar cash in the bank to collateralize Tether, but they weren't transparent and it was questioned. This has been going on for months and months. Other, safer stablecoins have been invented elsewhere, but Tether is still number one, and it still has all the market share and all the liquidity.

New York State regulators have been on Bitfinex's ass, and so, since I've been in cryptos, USAnians aren't even allowed to open an account there. It hasn't hurt their business or affected Terher until this week.

It has been revealed that Bitfinex actually only had 74% collateralization, as a result of the ongoing attacks on Bitfinex by the regulators (this looks like a political thing to me, a backdoor attack on crypto, maybe). The regulators claim US money  has still been accepted by Bitfinex, but I'm not sure that's even true..

Now people (rich people) are trying to take large Bitcoin and Ethereum positions off the Bitfinex exchange, and so now Bitcoin is back up over $6000 on Bitfinex. That's a $200 premium over the price on the other exchanges. It looks like a major arbitrage opportunity.

But as someone more knowledgeable than I am explained it to me,

" if we look at the USDT trading pairs on all other exchanges they all report a 5% premium of $1.05. So to move money to Bitfinex you pay a 5% premium getting into a USDT position to transfer and try and buy an asset 5% higher in valuation to then move back and sell on a different exchange. It’s a wash and super risky given Bitfinex could pull the plug on withdrawals at any time. "

Meanwhile, the market price of BTC has crept up on less than reassuring volume all week, following the Bitfinex artificial premium.

This morning, the volume I was hoping to see anyway back on the 1st of the month seems to be coming in.

With the short squeeze and the action on Bitfinex, the price of Bitcoin might go parabolic and crash.

Given the heavy correlation the entire crypto space has with BTC, the alt coins I own might go parabolic if this keeps up.

But it could come down like a house of cards, if Bitfinex locks up.  Knowledgeable people I talk to say the situation with Bitfinex is at least somewhat analogous to the famous Mt. Gox crash.

If so, you heard it from me before it happened.

You're welcome.



It's all unraveling before our eyes.

 :coffee:
Title: Re: P O O F ! Goes The Crypto
Post by: RE on May 03, 2019, 07:52:15 AM
EZ come, EZ go.

RE
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on May 03, 2019, 07:57:49 AM
I'm told that the arbitrage on Bitfinex is real and possible because there is a BTC/USD pair and you can avoid Tether and still get the premium.

I'm not sure that make the situtation any better. I might, in fact, make it worse.
Title: Re: P O O F ! Goes The Crypto
Post by: roamer on May 03, 2019, 08:09:23 AM
Hmmm given that BTC has been fair indicator of dollar liquidity in past and we are headed towards USD liquidity crunch I might have to investigate some shorts...
Title: Re: P O O F ! Goes The Crypto
Post by: Eddie on May 03, 2019, 08:33:59 AM
Hmmm given that BTC has been fair indicator of dollar liquidity in past and we are headed towards USD liquidity crunch I might have to investigate some shorts...

(https://files.slack.com/files-pri/T04PMGQGG-FJCP7UDUL/image.png)

Title: P O O F ! Goes The Crypto - CONgress bans Crypto, prices SOAR
Post by: azozeo on May 12, 2019, 12:11:16 PM


U.S. Congressman Proposes Bill to Outlaw Cryptocurrency Purchases

https://www.cryptoglobe.com/latest/2019/05/u-s-congressman-proposes-bill-to-outlaw-cryptocurrency-purchases/ (https://www.cryptoglobe.com/latest/2019/05/u-s-congressman-proposes-bill-to-outlaw-cryptocurrency-purchases/)
Title: 💸 Bitcoin price tanks less than a day after trading above $8,000 level
Post by: RE on May 17, 2019, 05:33:24 AM
I wonder how Eddie's Crypto investments are doing?

RE

https://www.cnbc.com/2019/05/17/bitcoin-prices-after-earlier-trading-above-8000-level.html (https://www.cnbc.com/2019/05/17/bitcoin-prices-after-earlier-trading-above-8000-level.html)

Bitcoin price tanks less than a day after trading above $8,000 level
Published Fri, May 17 2019 1:22 AM EDTUpdated an hour ago
Eustance Huang
@EustanceHuang
   
(https://image.cnbcfm.com/api/v1/image/105610790-1544148793140gettyimages-1064216666.jpeg?v=1558069758&w=740&h=493)
   

Key Points

    As of 12:59 a.m. ET Friday, the price of bitcoin was at $7,215.79 apiece, according to data from Coindesk — a 10.1% drop in the last 24 hours.
    Similar losses were seen in other major cryptocurrencies over the same period. The price of Ethereum fell 7.97% to $241.33, while XRP plunged 15.4% to $0.399378.
    In the 24 hours from 12:42 a.m. ET Friday, data from Coinmarketcap.com showed the total market capitalization of the cryptocurrency industry falling more than 8%, with more than $21 billion wiped out in that time period.

GP: Bitcoin 181120
A visual representation of the cryptocurrency Bitcoin on November 20, 2018 in London, England.
Jordan Mansfield | Getty Images News | Getty Images

Bitcoin prices plummeted less than a day after the world’s largest cryptocurrency traded at levels above $8,000.

As of 12:59 a.m. ET Friday, the price of bitcoin was at $7,215.79 apiece, according to data from Coindesk — a 10.1% drop in the last 24 hours.

Similar losses were seen in other major cryptocurrencies over the same period. The price of Ethereum fell 7.97% to $241.33, while XRP plunged 15.4% to $0.399378.

In the 24 hours from 12:42 a.m. ET Friday, data from Coinmarketcap.com showed the total market capitalization of the cryptocurrency industry falling more than 8%, with more than $21 billion wiped out in that time period.

“This last drop was likely caused by a combination of profit-taking and also algorithmic trading compounding the swift fall,” said Jehan Chu, co-founder of Kenetic Capital. “We can expect these types of steep rises and drops to continue for some time until institutional investors grow market volume.”

“The key takeaway from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real blockchain use and adoption,” Chu said.

The moves came just days after bitcoin more than doubled in price for 2019. Amid sizzling tensions between the U.S. and China in their protracted trade war, some even made the case that bitcoin was emerging as a global hedge against stock market movements.

The cryptocurrency industry, in general, has struggled to return to its levels from when a frenzy of interest from retail investors drove prices to all-time highs in late 2017 — before dramatically falling in 2018.

— CNBC’s Arjun Kharpal contributed to this report.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on May 21, 2019, 01:58:01 PM

Why Outlawing Cryptocurrency Purchases is a Terrible Idea

A member of the U.S. House of Representatives last week called for a bill outlawing Americans from making cryptocurrency purchases, aligning with anti-cryptocurrency policies in countries such as Iran and Egypt. There is no language for this potential bill or any explanation of whether such a bill would ban Americans from buying cryptocurrencies, using cryptocurrencies to make other purchases, or both. Nonetheless, it’s a good moment to remind everyone why a bill outlawing cryptocurrencies is a terrible idea.

Attempts to ban cryptocurrencies are often rooted in fundamental misunderstandings.

Attempts to ban cryptocurrencies are often rooted in fundamental misunderstandings. One common refrain is that criminals use cryptocurrencies to facilitate illegal activity, and thus we should ban cryptocurrencies to hamper that illegal activity. This is wrong for several reasons: first, it ignores the many entirely legal uses for cryptocurrencies that already exist and that will continue to develop in the future. Cryptocurrencies have been used for a decade to store and transfer value with near-zero transaction costs and no need for intermediaries like banks. As more applications make holding and exchanging cryptocurrencies easier, everyday consumers are using cryptocurrency regularly for innocuous activities like buying furniture on Overstock.com and sending money to family members overseas. And innovation related to cryptocurrency technology is giving rise to more use cases: for example, some cryptocurrencies enable programmers to write computer programs (so-called “smart contracts”) that automatically transfer cryptocurrency to others upon certain conditions being met. These are just a few examples of the many potential uses of this technology that a ban on cryptocurrency would undermine.

The fact that a technology could be used to violate the law does not mean we should ban it. Notably, criminals have long used cash—which, like some cryptocurrencies, allows for greater anonymity—to aid in committing crimes. But we don’t call for a ban on cash as a result, and we don’t blame Ford when one of its cars is used as a getaway vehicle in a bank robbery. Nor would such a law likely stop criminals from using cryptocurrency, since criminals are, by definition, more willing to violate existing laws. Ultimately, banning cryptocurrencies would rob Americans of opportunities to access potentially significant technologies, and have no real impact on criminals abusing these tools.

We’ve seen this line of reasoning before. Critics of end-to-end encryption and Tor have claimed criminals can hide behind the privacy-protective functions of such technologies. But the increased anonymity and privacy-enhancing features of some cryptocurrencies are part of what make the technology so potentially important. To date, many cryptocurrencies are not terribly private; transactions are recorded on permanent public ledgers, and while users are identified with pseudonymous public keys, this is far less privacy-protective than using cash. There are promising new approaches to developing more private cryptocurrencies. However, none of those tools has yet reached the widespread popularity of Bitcoin or Ethereum. As the rise of privacy-protective cryptocurrencies begins to gain traction, it’s important we don’t let regulatory backlash prevent these tools from reaching people.

Our financial transactions paint an intimate portrait of our lives, often exposing our religious beliefs, family status, medical history, and many other facets of our lives we might prefer to keep private. Yet American laws do not adequately secure financial privacy. Rather, there is a patchwork of limited protections. These include the Gramm-Leach-Bliley Act (which requires banks to notify you about their information-sharing policies and give you some opportunity to opt out); the stronger California Financial Information Privacy Act (if you happen to be Californian); and the Fair Credit Reporting Act (which is primarily focused on credit and not financial transactions). That’s why new tools that people can use to protect the privacy of their own financial transactions are so appealing: they offer a technological solution to protecting consumer privacy when the legal rights aren’t as robust or enforceable as we would like. A bill banning cryptocurrency would cut off this pro-privacy innovation, chilling the development of new technologies that might protect financial privacy before they have any chance of being developed and widely adopted.

Cryptocurrency innovation also holds the promise of righting other power imbalances. There are millions of people living in the United States who cannot obtain a bank account because they don’t have appropriate government-issued identification, don’t have a permanent physical address, fear exposing their home address for safety reasons, or have a history of unpaid bank fees. The Fair Credit Reporting Act requires banks to tell consumers why they are denied an account, but doesn’t guarantee them a bank account. Cryptocurrency may eventually help many of these unbanked individuals get access to financial services.

Cryptocurrency is also naturally more censorship-resistant than many other forms of financial instruments currently available. At EFF, we’ve tracked numerous websites engaged in legal speech that faced financial censorship, often with little recourse. These include a social network for kinky people, a nonprofit supporting LGBTQ fiction, an online bookseller, and most famously the whistleblower website Wikileaks. Cryptocurrencies provide a powerful market alternative to the existing financial behemoths that exercise control over much of our online transactions today, so that websites engaged in legal-but-controversial speech have a way to receive funds when existing financial institutions refuse to serve them.

These ideas are not new. Censorship-resistance and privacy are attributes of cash, which people have enjoyed for thousands of years. Cryptocurrencies offer a pathway for bringing those attributes into our online world.

This is not to imply that cryptocurrency has achieved all of these goals. In fact, many watching the space have expressed frustration and skepticism about whether cryptocurrency can ever execute on some of the hopes of early adopters. But even the staunchest cryptocurrency critic should be concerned about how misguided regulation in this space might constrict the legal rights of coders.

As with many new technologies, the cryptocurrency ecosystem faces serious challenges. These include fraudsters taking advantage of people’s ignorance about technology to scam them, problems around achieving true decentralization of control, strong security in the applications built on top of cryptocurrencies, and the opportunity for entities holding cryptocurrency keys to abuse that access. These problems likely require responses that are technological and community-driven. In some instances, laws may be appropriate. But thoughtful laws regulating cryptocurrencies must focus on those who abuse the technology for fraud, not everyday consumers.

Crafting such laws requires a lot of care. Any such law would need to provide a significant on-ramp for emerging technologies, clear protections for anyone engaged in non-custodial services that technically aren’t able to exchange or take cryptocurrency from users without their participation, and strong protections for people who are merely writing and publishing code. These laws must also be technologically neutral, to avoid enshrining one particular cryptocurrency into law in ways that have unexpected consequences for projects with similar functionality.

Finding the right balance for regulating cryptocurrency requires that lawmakers protect consumer rights and foster innovation. Banning Americans from cryptocurrency purchases is short-sighted and anti-consumer, and falls far short of that standard.



https://www.eff.org/deeplinks/2019/05/why-bill-banning-cryptocurrency-purchases-americans-terrible-idea (https://www.eff.org/deeplinks/2019/05/why-bill-banning-cryptocurrency-purchases-americans-terrible-idea)
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on June 04, 2019, 12:25:49 PM




ICOx Innovations Inc., which designs, builds and manages digital currencies so organizations can grow their businesses by attracting, engaging and retaining customers through the creation of their own digital currency, announced today a new customer, Cathio. Cathio is a public benefit corporation founded specifically in service of the Catholic economy.

Cathio is applying blockchain technology to offer an easy-to-use payment solution that responds to the needs of the Catholic community, non-profits, and institutions.

    Cathio was founded in 2018 and is working to transform the way the Catholic community moves money. By bringing innovative technology and best practices from the tech world, Cathio is providing a turnkey solution for Catholic organizations to bring their financial transactions into alignment with their beliefs. Cathio was created to address the needs of the Catholic church. –Cathio‘s website

    5 Ways the Catholic Church Can Use Blockchain Technology to Better Carry Out Her Missionhttps://t.co/4awA6jZwDv#blockchain#ethereum #bitcoin

    — Catholic Blockchain (@cathblockchain) June 3, 2018

    A blockchain-based charity and non-prot cryptocurrency, Catholiccoin seeks to provide an all-in-one solution to how we donate transparently on the Ethereum Blockchain. We are aware of the disruptive power of Blockchain technology and that the adoption of cryptocurrencies will significantly influence how we donate to charity in the future. As a result, Catholiccoin aims to play a tremendous impact on this innovative period of fundraising. –Steemit

“We are excited to announce our new customer Cathio, which will provide the first of its kind payment, remittance, and funding platform that will enable the Catholic economy to save money and position it to provide greater transparency of financial transactions and to connect the Catholic community,” said ICOx Innovations President Bruce Elliott according to anICOx press release.

    Through our ecosystem of services with a user-friendly interface, Catholiccoin connects the non-prot and charity community while enabling traceability and full transparency of donations. –Steemit

That’s a pretty big step for an entity as wealthy as the Catholic Church. While Cathio is attempting to make it very clear that this cryptocurrency will make payments and donations easier for Catholics worldwide, one can’t help but wonder just why they need more money, to begin with.

No one really knows how much wealth the Catholic Church controls, and the organization’s secrecy and obfuscation of the facts surrounding its wealth continue to confuse many. The Vatican’s cash flow is in the hundreds of millions a year, individual holdings in the Vatican Bank total perhaps $15 billion, property held by the Vatican may be worth over a billion dollars, and the Church owns the largest store of the world’s most priceless art.




https://www.shtfplan.com/headline-news/catholic-church-jumps-head-first-into-blockchain-technology-and-cryptocurrency_06032019 (https://www.shtfplan.com/headline-news/catholic-church-jumps-head-first-into-blockchain-technology-and-cryptocurrency_06032019)
Title: Re: P O O F ! Goes The Crypto - It's ZUCK BUCKS TIME !
Post by: azozeo on June 18, 2019, 02:04:59 PM

FACEBOOK’S LIBRA

Facebook has officially announced details of its cryptocurrency, which it’s calling Libra.

The idea, like with pretty much every other cryptocurrency ever, is that it can be used to buy and sell products or services without having to rely on a credit card or bank account. It’s a huge step for blockchain visibility — not for any technological reason, but because Facebook is by far the biggest online network of people in the world, which means it can strongarm them into jumping on board.

At least, that is, if it has any user trust left after a spate of privacy violations, leaks, and election meddling scandals.
ZUCK BUCKS

To buy or sell Libra, you’ll have to go to a local exchange point, like a participating nearby store, third party resellers or via Calibra, the partnering app that will take care of Libra transactions. Facebook wants to “enable a simple global currency and financial infrastructure that empowers billions of people,” according to its white paper.

Facebook aims for Libra to be a “stable digital cryptocurrency,” backed by a reserve of real assets including bank deposits and securities to ensure that Libra’s value won’t fluctuate wildly like Bitcoin.

Facebook is also throwing its weight around with corporate partners including Uber, Spotify, PayPal, Visa, and Mastercard — each of which are investing $10 million, and which could offer a powerful network of entities that could actually accept the new currency.

Even big investment banks are excited about the prospect of an international digital currency.

https://wordpress.futurism.com/facebook-libra-cryptocurrency/
Title: Re: P O O F ! Goes The Crypto - Witches & Crypto, you can't make this up
Post by: azozeo on June 18, 2019, 02:08:16 PM
http://www.youtube.com/v/OqlxEmhGDKs&fs=1
Title: Re: P O O F ! Goes The Crypto - Libra is Shady as HELL !
Post by: azozeo on July 01, 2019, 05:51:43 PM

What is Libra?

It’s an excellent book by Don DeLillo, the American master. Published in 1988, it is a fictional account of the life of Lee Harvey Oswald, President John F. Kennedy’s eventual assassin. It’s better than White Noise but not as good as Underworld.

Liz.

Fine. It’s Facebook’s new cryptocurrency. The point is that you can send money all over the world with lower fees than if you were to engage, say, Western Union.

It’s shady as hell, though. You remember Tyler and Cameron Winklevoss? The twins from whom Mark Zuckerberg ripped the initial idea for Facebook? Yeah, so they have a cryptocurrency exchange called Gemini. As any astrology buff will tell you, both Libra and Gemini are air signs, and Geminis are stereotypically scarier than Libras. Gemini is the sign of twins and is associated with two-faced-ness. Plus, it’s a mutable air sign, which makes it somewhat unstable. Libra, as a cardinal sign, is somewhat more stable. Libra sees both sides; Gemini tries to be both sides.


https://www.theverge.com/2019/6/26/18716326/facebook-libra-cryptocurrency-blockchain-irs-starbucks (https://www.theverge.com/2019/6/26/18716326/facebook-libra-cryptocurrency-blockchain-irs-starbucks)
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on July 09, 2019, 03:47:44 PM

Buying and selling cryptocurrencies like bitcoin (BTC) is illegal in Iran, a senior government official declared, according to a report by local news agency Tasnim News on July 8.

Nasser Hakimi, deputy governor for new technologies at the Central Bank of Iran (CBI), said that bitcoin trading is not legal in the country, citing a related prohibition by a local anti-money laundering (AML) authority, the Supreme Council of Combating and Preventing Money laundering and Financing of Terrorism Crimes.

In an interview with Tasnim News, Hakimi warned the public against legal and investment risks associated with cryptocurrency trading, outlining a high level of bitcoin’s volatility. Alongside, the official also expressed concerns about crypto advertisements, bringing awareness of promoted bitcoin pyramid schemes in the public.

The official has also reportedly raised the issue of the need to draw a distinction between the production of cryptocurrencies and its trading.

In late June, Iranian authorities announced that they start cutting power to cryptocurrency mining until new energy prices are adopted, with a local energy official reporting an abnormal spike of electricity consumption allegedly caused by increased mining of crypto. As such, local prosecutors seized around 1,000 bitcoin miners from two now-defunct farms in late June, BBC reported.


https://cointelegraph.com/news/trading-bitcoin-is-illegal-in-iran-central-bank-official-warns
Title: 💸 The IRS is warning thousands of cryptocurrency holders to pay their taxes
Post by: RE on July 26, 2019, 12:51:20 PM
I wonder if Eddie got "the letter" from the IRS? ???

RE

The IRS is warning thousands of cryptocurrency holders to pay their taxes
Published 2 hours ago Updated an hour ago
Kate Rooney @Kr00ney

(https://image.cnbcfm.com/api/v1/image/105923299-1558378606208gettyimages-1088204056.jpeg?v=1563460425&w=740&h=493)
GP: Bitcoin logo is seen on an android mobile phone
Omar Marques | LightRocket | Getty Images

Key Points

    The Internal Revenue Service is sending letters to 10,000 digital currency holders who potentially failed to pay the necessary taxes or improperly reported taxes on their digital assets last year.
    In some cases, the IRS says taxpayers could be subject to criminal prosecution.
    “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” says IRS Commissioner Chuck Rettig.


If you own bitcoin or other cryptocurrencies, you might want to check your mailbox.

The Internal Revenue Service is in the process of sending letters to U.S. citizens who own virtual currency and potentially failed to pay the necessary taxes and to those who improperly reported taxes on digital assets last year, the agency announced Friday.

“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” IRS Commissioner Chuck Rettig said in a news release. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics.”

The agency said it started sending out letters last week that by the end of August will reach 10,000 taxpayers. The list of names was obtained through “various ongoing IRS compliance efforts.” In some cases, the IRS said taxpayers could be subject to criminal prosecution.

Last year, popular trading platform Coinbase alerted 13,000 customers that it was complying with a court order to provide the IRS with information on accounts worth at least $20,000 from the years 2013 to 2015. The IRS did not say whether its mailing list was a result of the Coinbase disclosures.

Based on guidance issued in 2014, the IRS treats all virtual currencies — including bitcoin, ethereum and XRP — as property under U.S. tax law. That means that like real estate, the sale or exchange of tokens for other goods is a taxable event. And similar to stockholders, digital currency holders are required to report capital gains and losses from cryptocurrency trades.

Most trades count as short-term capital gains, which can be taxed at as high as 39% depending on income bracket. Those who hold bitcoin for more than a year and then sell it, however, are only liable for a long-term capital gains tax, which is levied at a significantly lower rate of 15% to 23.8%.

Rep. Warren Davidson, R-Ohio, a member of the House Financial Services Committee, is one of the relatively few lawmakers pushing for blockchain legislation that includes changes in the tax code. He and his co-sponsors introduced a bill earlier this year to exempt cryptocurrencies from federal securities laws that apply to traditional equities. The cryptocurrency tax issue has gained more attention recently in light of Facebook’s proposed digital currency Libra.
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on July 31, 2019, 09:42:49 AM
(https://galacticconnection.com/wp-content/uploads/2019/07/DvOnbhmUUAAExVJ-749x640.jpg)



How bout' that shit. Pirate Bankster's hate cash  :coffee:
Title: Re: P O O F ! Goes The Crypto
Post by: azozeo on September 15, 2019, 04:35:27 AM


During the crypto bull market of 2017, everybody was happy. It wasn’t just the BTC maximalists, BCH enthusiasts, or proponents of ETH. Privacy coins like monero were doing great, and even charity-supporting “comic relief” coins like doge were riding high. Since that enchanted time, however, the diverse class of tokens known as altcoins has somehow faded into obscurity. Just recently though, the tectonic plates of alt-crypto deadlock appear to be rumbling, and change might be just on the horizon for the spare change of the crypto world.


The Lost Altcoin Conversation


https://news.bitcoin.com/cryptos-forgotten-altcoins-re-emerge-a-look-at-whats-happening/
Title: 💰 Five charged in alleged $722 million cryptocurrency Ponzi scheme
Post by: RE on December 11, 2019, 03:43:37 PM
More POOF...IT'S GONE! for the Crypto Archives.

http://www.youtube.com/v/-DT7bX-B1Mg

RE

https://www.nbcnews.com/news/all/five-charged-alleged-722-million-cryptocurrency-ponzi-scheme-n1099511 (https://www.nbcnews.com/news/all/five-charged-alleged-722-million-cryptocurrency-ponzi-scheme-n1099511)

Five charged in alleged $722 million cryptocurrency Ponzi scheme
"We are building this whole model on the backs of idiots," one of the alleged conspirators said of the purported multilevel marketing scheme.
Dec. 10, 2019, 7:22 PM AKST
By Andrew Blankstein

LOS ANGELES — Five men were charged Tuesday in connection with what federal prosecutors called a lucrative cryptocurrency scheme that fleeced investors out of $722 million in a business model that one of the defendants described as built "on the backs of idiots," according to court documents.

The 27-page indictment, unsealed in U.S. District Court in Newark, New Jersey, names Matthew Brent Goettsche, 37, of Lafayette, Colorado; Jobadiah Sinclair Weeks, 38, of Arvada, Colorado; and Silviu Balaci, whose age and residence were not immediately known, as part of a conspiracy to commit wire fraud. They were also charged with conspiracy to offer and sell unregistered securities.

"What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars," U.S. Attorney Craig Carpenito said.

Prosecutors allege that BitClub Network, which operated from April 2014 to this month, was built on soliciting money from individuals in exchange for shares of purported cryptocurrency mining pools and on rewarding investors for bringing in new clients. The group did not register shares sold with the U.S. Securities and Exchange Commission, the indictment alleges.

To bolster their business, Goettsche, Weeks and others conspired to solicit investments by providing false and misleading figures described as "bitcoin mining earnings," prosecutors alleges. Weeks and a fourth man, Joseph Frank Abel, 49, of Camarillo, California, created videos and traveled around the country and the world to promote BitClub Network, describing their firm as "the most transparent company in the history of the world that I've ever seen" and "too big to fail," according to prosecutors.

But behind the scenes, they appeared to combine greed, contempt for their investors and, at times, doubt about sustaining the scheme, according to prosecutors.

In February 2015, Goettsche directed Balaci to "bump up the daily mining earnings starting today by 60%," according to the indictment, to which Balaci is alleged to have warned "that is not sustainable, that is ponzi teritori [sic] and fast cash-out ponzi ... but sure."

Balaci told Goettsche not long after launching the company that their target audience would be "the typical dumb MLM (multi-level marketing) investor," according to the court filing. Months later, the complaint alleges, Goettsche told Balaci that "we are building this whole model on the backs of idiots" and that to "prove the mining ... just means convincing the morons Q."
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In September 2017, Goettsche sent an email to another alleged conspirator, suggesting that BitClub Network "[d]rop mining earnings significantly starting now" so he could "retire RAF!!! (rich as f---)," according to the indictment.

But court documents indicate that cracks were showing. Weeks remarked in an email to Goettsche and another accused conspirator in June 2017 that BitClub's selling shares and not using the money to buy mining equipment was "not right."

Four of the men were scheduled to make court appearances Tuesday. Authorities also are seeking a fifth man, whose identity was redacted pending his arrest.

If convicted, the defendants face maximum penalties of 20 years in prison and fines of up to $250,000 on the fraud conspiracy count. The charge of conspiracy to sell unregistered securities carries a maximum sentence of five years with a $250,000 fine.
Andrew Blankstein

Andrew Blankstein is an investigative reporter for NBC News. He covers the Western United States, specializing in crime, courts and homeland security.