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The Cryptocurrency Roundup: Bitcoin's Four Glaring Flaws, A Blockchain Etf, And What Buffett Thinks Of It All

The Cryptocurrency Roundup: Bitcoin's Four Glaring Flaws, A Blockchain Etf, And What Buffett Thinks Of It All

The cryptocurrency roundup: Bitcoin's four glaring flaws, a Blockchain ETF, and what Buffett thinks of it all The subject who is truly loyal to the Chief Magistrate will neither advise nor submit to arbitrary measures. The cryptocurrency roundup: Bitcoin's four glaring flaws, a Blockchain ETF, and what Buffett thinks of it all Broken representation of the Bitcoin virtual currency, placed on a monitor that displays stock graph and binary codes, are seen in this illustration picture, Dec. 21. Due to the popularity of this newsletter, we're adding a third regular edition each week. This third edition will cover the hot topic of bitcoin and other cryptocurrencies. Look for this new newsletter every Thursday evening in addition to our two regular weekly newsletters on Tuesday and Friday evenings. As always, please send us your feedback . Globe Investor editor Darcy Keith This week's big read: Four glaring flaws that every investor should know about Bitcoin has earned the love of speculators thanks in large part to a blaze of self-congratulatory promotion on the part of middlemen and early adopters. According to its fans, the cryptocurrency will disrupt the financial establishment, make it a snap to transfer wealth around the world and put control of the money supply in the hands of real people instead of central banks. Maybe so. For now, though, it's important to check the big talk against the facts on the ground. As the rhetoric around bitcoin reaches frenzied levels, the limitations of the digital tokens are also becoming abundantly clear. Ian McGugan explains four big flaws with bitcoin. Blockchain ETF to offer Canadian investors another way to join the bitcoin frenzy Investing in the ever-growing popular blockchain technology could be more easily accessible as Harvest P Continue reading >>

Cryptocurrency Investors Risk Security Issues Like Theft, Loss

Cryptocurrency Investors Risk Security Issues Like Theft, Loss

Six ways to protect your bitcoin and ethereum investments from hackers In the last few weeks, hundreds of frantic people have called into McCann Investigations in Houston, Texas. Some have lost their cryptocurrencies. Others had them stolen. "There are a lot of vulnerabilities when you open a cryptocurrency account," said Dorothy Flippov, a private investigator with McCann Investigations who specializes in cryptocurrencies. Wallet Recovery Services, which helps people find their lost cryptocurrencies, warns web site visitors to expect a slow response time due to its " high volume of new requests ." "All the hackers in the world are targeting cryptocurrencies." -Eric Larcheveque, CEO of cryptocurrency security company Ledger Wallet Bitcoin was born out of a distrust for traditional markets and a desire to establish a new system, free from brokers or bankers. But as the value of many cryptocurrencies rise, so does people's uneasiness with being the only one with access to their digital fortune. Investors are finding that the system's high-security makes it easy for them to get locked out. Currently there are more than 3 million bitcoins that have been lost, according to blockchain tracking company Chainalysis. Since bitcoin was created in a way that makes its supply finite, that means that 14 percent of the currency could be gone for good. Even more alarming: cryptocurrencies are a dream for cyber criminals. "Let's say you manage to steal a Social Security number or banking information that's not money, it's information," said Eric Larcheveque, CEO of cryptocurrency security company Ledger Wallet. "You need to find a broker to sell the data." "It's immediate. It's already cash," Larcheveque said. "All the hackers in the world are targeting cryptocurrencies." Here are som Continue reading >>

Major Problems In The Cryptocurrency Market

Major Problems In The Cryptocurrency Market

Major Problems in the Cryptocurrency Market The cryptocurrency market seems to be growing in popularity every day. With the astronomical rise of cryptocurrencies like Bitcoin and Ethereum, there seems to be an influx of people into the market. Many cryptocurrency exchanges cannot even afford to have their account creation feature open all the time. Such is the demand for entry into the market that trading account creation for new customers is periodically disabled. The average daily trading volume of the market is usually in trillions of dollars. The total market cap of the entire market stands at more than half a trillion dollars which is an astonishing feat considering the market is less than a decade old. However, despite all of these large numbers, there are a number of major problems that plague the market. To use these numbers solely as an appraisal index of the state of the market would present a false narrative. There are structural and functional issues that affect the market. These problems stem from a variety of reasons such as the infant nature of the market, lack of understanding of the cryptocurrency space, and some peculiar economics of cryptocurrencies (tokenomics) just to name a few. The following are some of the major problems in the cryptocurrency market. By far the biggest issue in the cryptocurrency market is the excessive volatility. The prices of cryptocurrencies on exchange platforms rise and fall dramatically over a short period of time. When a tradable asset can drop by as much as 49 percent in less than 24 hours, then the volatility of the market is high. There are a number of reasons that contribute to the excessive volatility in the market but perhaps the biggest contributor is the activities of whales. Whales are individuals that have larg Continue reading >>

Problems Ethereum/wiki Wiki Github

Problems Ethereum/wiki Wiki Github

Anti-spam and anti-sybil attack algorithms Incentivized marketplaces for computational resources Decentralized systems for social welfare / mutual aid / basic income Decentralized governance (for both for-profit and non-profit entities) The increasing prominence of cryptoeconomics in the last five years is to a large extent the result of the growth of cryptocurrencies and digital tokens, and brings a new, and interesting, dimension to cryptography. While before cryptography was, by and large, a purely computational and information-theoretic science, with strong guarantees built on security assumptions that are close to absolute, once money enters the picture the perfect world of mathematics must interact with a much more messy reality of human social structures, economic incentives, partial guarantees and known vulnerabilities that can only be mitigated, and not outright removed. While a cryptographer is used to assumptions of the form "this algorithm is guaranteed to be unbreakable provided that these underlying math problems remain hard", the world of cryptoeconomics must contend with fuzzy empirical factors such as the difficulty of collusion attacks, the relative quantity of altruistic, profit-seeking and anti-altruistic parties, the level of concentration of different kinds of resources, and in some cases even sociocultural circumstances. In traditional applied cryptography, security assumptions tend to look something like this: No one can do more than 279 computational steps Taking nth roots modulo composites is hard The elliptic curve discrete logarithm problem cannot be solved faster than in 2n/2 time In cryptoeconomics, on the other hand, the basic security assumptions that we depend on are, alongside the cryptographic assumptions, roughly the following: No se Continue reading >>

What Meltdown And Spectre Flaws Mean For Crypto

What Meltdown And Spectre Flaws Mean For Crypto

What Meltdown and Spectre Flaws Mean for Crypto Jan 6, 2018 at 09:45 UTC|UpdatedJan 7, 2018 at 22:16 UTC Recently leaked computer vulnerabilities Meltdown and Spectre offer yet another reminder of how hard the digital age makes it to keep private information - even cryptocurrency private keys - safe. Unveiled Wednesday, the widespread hardware vulnerabilities simultaneously impact Intel, ARM and AMD computer chips, which power the vast majority of the world's computers, mobile devices and servers, making it possible to steal private data such as passwords, financial information or just about anything stored on any device that uses one of these chips. Where this is important for cryptocurrency in particular is, hackers can potentially use the specific attack vector to pinch the private keys that allow users to control their bitcoins on the blockchain. Popular Mechanics called it a "horrific" bug, contending it's "hard to zero in on the most troubling part of this flaw," while an informational page authored by security researchers remarks that you're "most certainly" impacted by the bug. And though there's no evidence that any passwords have been compromised, experts say it wouldn't be surprising if hackers or the NSA have been exploiting the attack. If you're already following best practices for cryptocurrency storage, then you're probably fine. But if not, or if you're a newer user, experts say it's important to keep private keys on a safe device. "Better safe than sorry," said Bitcoin Core developer Bryan Bishop told CoinDesk, adding: "An attacker who has knowledge of a sufficiently powerful vulnerability can theoretically force your CPU to reveal secret data such as private keys used to control your bitcoin." It's important to note that the advice to store private ke Continue reading >>

Cryptocurrency Infrastructure Flaws Pose Bitcoin Risks

Cryptocurrency Infrastructure Flaws Pose Bitcoin Risks

Cryptocurrency Infrastructure Flaws Pose Bitcoin Risks Major Cybercrime Gangs Shift From Hacking Banks to Bitcoins Mathew J. Schwartz ( euroinfosec ) December 14, 2017 Bitcoin, the world's most popular cryptocurrency, hit an all-time high of $17,428.42 on Tuesday. Despite it falling to below $16,000 on Wednesday, experts say bitcoin appears destined to soon break the $20,000 mark. See Also: Live Webinar | Benchmarking Your Organization's Security Performance with Security Ratings For a virtual currency that was trading at less than $1,000 at the beginning of the year, the massive rise in value and hype has brought hackers, scammers and other criminals calling (see Cybercriminals Go Cryptocurrency Crazy: 9 Factors ). "Not to perpetrate fear, uncertainty and doubt, but I was told by people I really respect in threat intelligence that there are at least four very advanced threat actor groups who have been attacking banks in recent years, and about a month ago, they just dropped their activities and moved over to bitcoin hacking," Avivah Litan, vice president and distinguished analyst at Gartner Research, tells Information Security Media Group. "I don't know if this is going to happen, but they're definitely setting up for attacks against exchanges and other parts of the cryptocurrency world." Security firm Imperva reports that from July to September, distributed denial-of-service attacks against cryptocurrency exchanges increased, accounting for 3.6 percent of all attacks they saw. "DDoS attacks could ... be attempted to manipulate bitcoin prices, a tactic attackers have been known to use in the past," the firm says. Indeed, in April 2013, former Tokyo-based bitcoin exchange Mt. Gox - then the world's largest cryptocurrency exchange - blamed a lag in trading on DDoS attac Continue reading >>

Problems And Risks For Cryptocurrency Users Kaspersky Lab Official Blog

Problems And Risks For Cryptocurrency Users Kaspersky Lab Official Blog

Cryptocurrencies are basically the same as e-money like WebMoney or PayPal. That means they also have the same problems as classic e-payment systems. However, the operating principles specific to cryptocurrencies sometimes make the problems more likely to occur, and thus more disturbing. In addition, the same principles are responsible for a certain number of risks unique to cryptocurrencies. Spoofing payment information and phishing Well start with common problems such as plain old theft. Lets say youre transferring money to a friend. You copy his wallet address accurately, but malware replaces the address in the clipboard with another one . Not every user is vigilant and double checks an address after copying it. Especially if the address is a long jumble of characters. Or take phishing, for another example. As with ordinary e-money, users can be tricked into going to a phishing website where they upload their cryptowallets and enter a password. Of course, users of a traditional bank or payment system can also run into trouble with cyberthieves. However, with a traditional system there is always a fairly good chance of canceling the transfer. In the case of cryptocurrencies, you might as well try to complain to the United Nations. What happens in blockchain stays in blockchain. On top of that, even using a genuine payment gateway with the correct address can result in a loss of money. In June 2017, the most popular Web wallet for the Ethereum Classic cryptocurrency, with the original address , suddenly started stealing money from users wallets. Turned out, hackers had used social-engineering methods to convince the hosting provider that they were the real domain owners. After gaining access, they started intercepting cash flows. Luckily, the strategy those hackers us Continue reading >>

6 Cryptocurrency Problems Andfixes

6 Cryptocurrency Problems Andfixes

Product and code. Views are my own. Tweets @pauliusuza angel.co/pauliusuza If you have ever bought or sold cryptocurrencies through a mobile wallet app or an cryptocurrency exchange website, you can consider yourself a part of the rapidly growing cryptocurrency retail market. Different from traditional foreign exchange, retail market in cryptocurrencies formed way before there were any institutional platforms, brokerages or funds. It is a true grassroots movement created from the bottom up. Fast forward to 2018, the big players are taking take control of the markets and things are starting to become complicated for the #hodl crowd. Heres the 6 things that are broken in cryptocurrency trading today. Lets start with the most obvious one fake news. Cryptocurrency market today is dominated by fake news stories which find their way to the unsuspecting mainstream media. Their editors cherry pick these stories directly from websites like Reddit and without any fact checking plop them onto their front pages for the whole world to see. Whats even more disturbing is that once the stories turn out to be untrue, no retractions are made and no action is taken to make sure a fake story will not be published again without proper fact checking. Mainstream audience has no ability to fact check cryptocurrency news, there are no known, established and reliable sources of information, so they trust their mainstream media to do the fact checking for them. As a result people will not know when they are being duped and the media can simply get away with it without sacrificing face. It might also be due to the fact that in post-truth world we dont need to apologize for anything anymore (thanks Donald!). Furthermore, mainstream medias inability to grasp the complexities of blockchain technolog Continue reading >>

Subscribe To Read

Subscribe To Read

Subscribe to the FT to read: Financial Times Problems at two cryptocurrency exchanges raise security concerns Keep abreast of significant corporate, financial and political developments around the world. Stay informed and spot emerging risks and opportunities with independent global reporting, expert commentary and analysis you can trust. Choose the subscription that is right for you Purchase a Digital Trial subscription for Not sure which package to choose? Try full access for 4 weeks For 4 weeks receive unlimited Premium digital access to the FT's trusted, award-winning business news Purchase a Standard Digital subscription for Be informed with the essential news and opinion MyFT track the topics most important to you FT Weekend full access to the weekend content Mobile & Tablet Apps download to read on the go Gift Article share up to 10 articles a month with family, friends and colleagues Purchase a Premium Digital subscription for All the essentials plus deeper insights and analysis In-depth analysis on trade, emerging markets, M&A, investing and more ePaper a digital replica of the newspaper Gift Article share up to 20 articles a month with family, friends and colleagues Purchase a Premium Digital + Newspaper subscription for FT Newspaper delivered daily plus unlimited digital access Continue reading >>

Cryptocurrencies Have An Everything Problem

Cryptocurrencies Have An Everything Problem

A mom from Arkansas, a major donor to Republican causes with very little experience in technology, wants to invest $50,000 in bitcoin. A man from Switzerland curses during a Skype call because his Korean over-the-counter exchange went down during a massive trade. An entrepreneur placed a Trezor bitcoin wallet worth $150,000 on his car key chain. Another futurist is Tweeting late at night about a failed $300,000 wire to a bitcoin exchange. Meanwhile, Kraken is throwing up server errors every few login attempts. Coinbase cant keep up with account creation and they can barely hire anyone to ramp up their engineering team of 20 souls. Exchanges take days to confirm new users, trapping bitcoin and cash inside their opaque innards. Shapeshift , a tool for converting currencies, is overwhelmed with work, some trades not going through for hours. We are hiring for dozens of positions in SF, NY and London. pic.twitter.com/gvUO3r6Tz4 Welcome to the new cryptocurrency boom, a roiling, boiling mess of speculation, broken transactions, and confusion. And thats just how the crypto lovers like it. There is a common thread in the Valley positing that cryptocurrencies are like Linux. In 1991, an unknown programmer named Linus Torvalds built on the work of previous OS devs and launched what looked to be a pet project. It quickly grew underground like a mine fire and slowly but surely upended Oracle, IBM, and Microsoft along with a large swathe of the server market. One one could have predicted that one day we would type a few lines of code into our terminal and spin up a dozen powerful Linux servers but, as the tools grew in popularity, the incumbents spread fear, uncertainty, and doubt until, ultimately, there was none to spread. Banks, for their part, are trying their FUD tactics as we Continue reading >>

The Truth About Bitcoin: Four Glaring Flaws That Every Investor Should Know About

The Truth About Bitcoin: Four Glaring Flaws That Every Investor Should Know About

The subject who is truly loyal to the Chief Magistrate will neither advise nor submit to arbitrary measures. The fastest way to curb your enthusiasm regarding bitcoin is to actually use the cryptocurrency. Or, at least, attempt to use it. A few days before Christmas, I watched as a friend tried to purchase a greeting card at a trendy Toronto boutique using her newly acquired bitcoin wallet. Yes, the helpful woman behind the register told us, we could certainly pay using bitcoin if we insisted on doing so. But we probably shouldn't, she told us, because there would be at least a $30 transaction fee on top of the $3 price of the card. So we walked away. Multiply that experience a few million times and you have some idea of the challenges lying ahead for the world's most famous pseudo-cash. Bitcoin has earned the love of speculators thanks in large part to a blaze of self-congratulatory promotion on the part of middlemen and early adopters. According to its fans, the cryptocurrency will disrupt the financial establishment, make it a snap to transfer wealth around the world and put control of the money supply in the hands of real people instead of central banks. Maybe so. For now, though, it's important to check the big talk against the facts on the ground (or in the boutique). As the rhetoric around bitcoin reaches frenzied levels, the limitations of the digital tokens are also becoming abundantly clear. At the moment, bitcoin offers an outlandishly expensive way to pay for everyday goods. It is also slow, wasteful and inept at handling many key responsibilities of a functioning currency. In many ways, the bitcoin ecosystem resembles a video game, where players compete to amass tokens that only have meaning within the game itself. To be sure, none of this necessarily spel Continue reading >>

Flaws Of Blockchains And Perspectives On Cryptocurrencies

Flaws Of Blockchains And Perspectives On Cryptocurrencies

Culture hacker, software architect, & targeted currencies geek Building bridges to the next economy & network society. Flaws of Blockchains and Perspectives on Cryptocurrencies Many are looking to the blockchain to solve many decentralization and consensus problems. I believe the infrastructure people are seeking is possible to build, but not in the way blockchain and cryptocurrencies have been approaching it so far. There are fundamental flaws to the current popular approach that will keep it from ever reaching the scale on which we need collective intelligence, currencies, sense-making and distributed computing infrastructure to operate. Systems will never scale if you require global consensus for local actions by independent agents. Of course, this is why weve been building Ceptr to provide the necessary infrastructure for these kinds of distributed systems. It solves all the same problems, but has been built from fundamentally different initial assumptions, so the more you know about cryptocurrencies, the harder it can be to understand why were doing what were doing. Ill start with a summary of highlights and then drill into greater detail in the next posts providing some examples of ways to make these kinds of distributed applications and cryptocurrencies work on a large scale. Stop the Nonsensus! (no more Nonsense Consensus): Systems will never scale if you require global consensus for local actions by independent agents. For example, I should not have to know where every dollar in the economy is when I want to buy something from you. That adds an overhead of ridiculous complexity to something which needs to follow the principle of pushing intelligence and agency to the edges rather than center. Likewise, an atom should be able to bond with another atom (see cart Continue reading >>

What Are The Disadvantages Of Cryptocurrencies?

What Are The Disadvantages Of Cryptocurrencies?

What are the disadvantages of cryptocurrencies? People do not understand if they are buying a currency, or a token to use on the platform or the cryptocurrency is just a form equity in the project These are yet not regulated. People may fall for different Ponzi schemes Security is taken for granted by many people and they are prone to risk of their account being hacked by mischievous people. I believe the *only* disadvantages of Bitcoin currently are: Lack of widespread adoption, causing thin markets and volatility. Though mostly upward volatility, which is welcome, the drops resemble a roller coaster Capacity limits, which are currently being addressed by micro-payment channels, which will add another delay to adoption Trustless operation, no need to trust others to hold and perform transactions Permission less, no need to get permission to spend in any way you see fit Low transaction fees and fast operation, particularly for largish transfers Better identity control, though not anonymous, instead pseudonymous, with likely anonymous operation in the future Perfectly divisible, great for micro-transactions once payment channels are in place As it stands today, Bitcoin is gold 2.0 with far better transactability. The adoption is very slow, can you go and pay for a car, get a coffee, or do your shopping with this. NO! If you ask the average person on the street what a crypto currency is, they will laugh at you. We could have this debate for days, because the pros and cons are huge, but I would class this as like going and building an adsl company when dial was the only main source. Blockchain and bitcoin will be huge. As long as they do not see govt regulation. Continue reading >>

Ubs Wealth Management Economist Paul Donovan On Bitcoin - Business Insider

Ubs Wealth Management Economist Paul Donovan On Bitcoin - Business Insider

A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Paul Donovan, a UBS Wealth Management economist, says cryptocurrencies like bitcoin can never truly be considered currencies. "A currency has to be a widely used medium of exchange," he said. "Cryptocurrencies are never going to achieve that. Period." They fail key tests for a currency, he says, including acting as a store of value. LONDON Cryptocurrencies like bitcoin and ether will never become true currencies because of a series of "fatal" flaws, a senior economist at the Swiss banking giant UBS says. At a roundtable discussion attended by Business Insider on Thursday, Paul Donovan, the global chief economist at UBS's wealth management arm, tore into the argument that cryptocurrencies could eventually replace fiat currencies like the pound and the dollar. "The problem that cryptocurrencies face is that they fail the two key metrics of what makes a currency a currency," Donovan said. "A currency has to be a widely used medium of exchange. Cryptocurrencies are never going to achieve that. Period." One of the main reasons for this, Donovan said, has to do with taxation and the inability to use cryptocurrencies to settle tax liabilities. "The reason I'm so definite about this is that if you look in the OECD, on average, 34% of all economic activity is taxed," he said, using the abbreviation for the Organisation for Economic Co-operation and Development. "Governments are not likely to accept cryptocurrencies that they do not control" to settle taxes. He continued: "Cryptocurrencies that they do not control will not be accepted by governments for tax payments. You are therefore removing one of the ma Continue reading >>

Public Access - The Biggest Problems With Cryptocurrencies, And How They Can Be Solved

Public Access - The Biggest Problems With Cryptocurrencies, And How They Can Be Solved

This post was created by a member of the Public Access community. It has not been edited for accuracy or truthfulness and does not reflect the opinions of Engadget or its editors. In Order to Experience a New Era of Virtual Reality, We Also Have to Usher in a New Era of Virtual Behavior How Much Internet Speed Do You Really Need? The Biggest Problems With Cryptocurrencies, and How They Can Be Solved There is no doubt about it, BitCoin is much more than a passing internet trend. Many people consider it to be the future of currency, however there are a few fatal flaws. Before the blockchain can make it into everyone's computers, there are three core issues that need to be addressed. Fortunately, some of the most brilliant minds in the industry are working to solve these problems. Outside of cryptocurrencies, most financial transactions are reversible. This doesn't mean that you can simply go on a shopping spree and try to refund the money, as there is usually a governing body that oversees the process. For example, let's say that you purchase something online and the vendor never sends you a product. You can contact your credit card provider, explain the situation, and after a brief investigation your money can be returned. People feel safe using credit cards as they are protected by fraud. Bitcoin aimed to be decentralized and pseudo anonymous. There are many pros to this system, but unfortunately security is the primary flaw. Because hackers can steal bitcoin with almost no repercussion, the currency is a major target for fraud. Dr. RUJA IGNATOVA CEO of Onecoin , has used identity verification to address this problem with his own cryptocurrency. "By requesting documentation that proves the identity of each user, Onecoin makes sure that each transfer made using the prot Continue reading >>

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