Introduction All Bitcoin are created equal, but they rarely remain that way. With the traceability and open nature of Bitcoin's Blockchain, individual Bitcoin and satoshis can be traced back to cypherpunk giants like Hal Finney, or even Satoshi Nakamoto himself. Furthermore, newly minted, or old-minted-but-never-moved Bitcoin trade at a significant premium, compared to the Bitcoin spot price (it's been reported that there have been premiums of 15-20% for coinbase Bitcoin). These coins are novelties. Collectables. Because they can be tracked, identified and are cryptographically verifiable. So with that dynamic in place, there is an opportunity for a Premium Bitcoin market to form. This subreddit will attempt to form the infancy of that market for retail customers, and perhaps whales. Instructions for Buyers on making a Post If you wish to buy a specific kind of coin you can make a post is this subreddit starting with
followed by the kind of Bitcoin you wish to buy,
followed by specific requirements, like the number of transactions away from the source/event/coinbase/person/exchange
followed by the premium above spot price as a percentage in which you are willing to buy the novelty, collectable or even tainted Bitcoins.
followed by your preferred payment method
[WTB] 1 Satoshi Nakamoto Bitcoin, 1 transaction away from coinbase: 100% above spot - USDC [WTB] 2 Bitcoin Coinbase from 2013, less then 2 transactions away from origin: 21% above spot - Bitcoin [WTB] 0.5 Silk Road Bitcoin, any length of transactions away from origin: -10% below spot - Monero
Instructions for Sellers on making a Post If you believe you have collectable, unique or novelty Bitcoin for sale, you can make a post in this subreddit starting with
followed by the kind of Bitcoin you wish to sell,
followed by any specifics of those Bitcoin, like the number of transactions away from the event/source/coinbase/person/exchange
followed by the asking premium above spot price as a percentage you wish to charge for the novelty, collectable or even tainted Bitcoins.
followed by what kind of payment you accept
[WTS] 1 Satoshi Nakamoto Bitcoin, 2 transactions away from coinbase, 121% above spot - Accepting Bitcoin, ETH, USDC [WTS] 25 Bitcoin coinbase, from 2014 has not be moved, asking for 25% above spot - Accepting USDT [WTS] 1 Hacked Bitfinex Bitcoin, 21 transactions away from source, -20% below spot - Accepting Monero
Instructions for Escrow Agents on making a Post If you want to offer your escrow services to facilitate the buying and selling of Premium Bitcoin between two parties then you can make a post in this subreddit starting with
a short description of yourself
the percentage or flat rate you will charge for your services
any extra features available
payment methods accepted
[EA] Experienced and Reviewed Escrow Agent here to help, flat rate of 0.01BTC - all payment methods accepted [EA] Bitrated verfied Escrow Agent, 0.5% commission - physical opendime optional for 150$ more - Bitcoin and USDC accepted upfront
Best Practices for Buyers, Sellers and Escrow Agents once you submit a post, a seller may try to contact you by private message, chat, or by replying to your post. Most will claim that they have what you are looking for. But you will need to verify on your own that the person you are communicating with does have the type of coins you are looking for. You can verify this by having the seller who contacts you sign a message from the address that holds the coins that satisfy your buying requirements. It's recommended that the verification message format be something like "I am ." Further instructions on signing messages can be found here: http://support.vaultoro.com/knowledgebase/articles/536758-how-do-i-sign-a-message-with-my-bitcoin-wallet https://www.youtube.com/watch?v=B4GZ4qDEanA https://www.youtube.com/watch?v=S88ciN9DsRk Once the buyer has verified the coins are possessed by the seller with a signed message from the seller, the transaction can begin. Other useful tools for looking up the transaction trail of the coins being sold can be found here: blockpath.com blockchain3d.info symphony.iohk.io walletexplorer.com a list of MTGox cold wallet coins a list of historic bitcoin transactions It's recommended that a trusted third party escrow agent be used to ensure that neither party scams another. It's important that the seller, buyer and escrow agent all know the details of the transaction that is to occur, including the evidence to support the Bitcoins novelty. It's important that the buyer conduct his due diligence in verifying the evidence of the coins authenticity and related history. If possible, the escrow agent should do the same. To find a escrow agent, a buyeseller can search this subreddit for EA posts, use www.bitrated.com to search for a trusted escrow, or use a different escrow agent service that they both agree to using. Once all parties are clear on the details of the transactions, including the EA's fee, the transaction can proceed. If the transaction is successful, please let us know in the original subreddit posting.
Apologies for typos and grammatical errors; wanted to get this out as soon as possible for those that weren't able to watch the live stream. Cleaned up formatting to make it more readable.
While this isn't a 100% word-for-word transcript, the overtone of the meeting should have been conveyed. SEC and CFTC want protections for consumers, but don't want to outright ban crypto. I was under the impression that both agencies were well-educated, but understaffed. They both want to introduce protections for customers and investors and go after scam artists, but don't want to impose any restrictions or regulations that would be bad for crypto as a whole (both from a security perspective, and a technological innovation perspective). Overall a huge positive.
Touched on the definition, use, history, all-time-high, market cap, negative news
Mentioned that the techonology has positives to transform the financial landscape, transfer risk
Volatility, 1000% rise, 60% fall, compared to DOW Jones
touched on scam artists/hackers, undereducated market participants
mentioned there are regulatory gaps, potentials for abuse
neither SEC/CFTC has authority to police all aspects
mentioned some analogies to the dotcom bubble
may be used to fund illicit activity
says they need to do more to get ahead of the curve
"don't forget your day jobs to pursue and punish misconduct", mentioned the 3 big banks being punished recently
crypto brings us to a new age, but don't overlook the princilpes of going after the bad guys and being tough
estimated highest market cap $700 bn; promising new technology
great efficiencies, including capital markets; seek to WORK WITH those who seek to bring innovation
Crypto currencies - replacement for dollars
widely known introduced as substitutes
make it easier and cheaper ot buy and sell goods
verification and fees/costs eliminated
ICOs - stock offering
stocks and bonds, under a new label
security being offered is a virtual token
"if it functions as a security, it IS a security"
doesn't mean you are investing in blockchain ventures
market have less oversight than traditional securities
if it looks like a stock exchange, don't take comfort
no capital and conduct requirements
many ICOs are conducted illegally
creators not following securities laws
those who try to circumvent the SEC are in their crosshairs
do not have control over the regulation of the markets that exchanges exist in
"do not view this as a request for increased SEC jurisdiction"
"I believe every ICO I have seen is a security"
we are working with the DOJ to enforce laws
story about how his kids recently showed an interest in Bitcoin
"we must foster their interest, but crack down hard on those that abuse"
response should have several elements:
learn as much as we can - Lab CFTC to engage with innovators
put things in perspective - as of this morning, Bitcoin 113 bn market cap. less than the market cap of McDonald's. sometimes compared to gold; value of gold dwarfs Bitcoin at 8 trillion market cap
educate consumers - podcasts, webinars, visits to libraries, outreach to seniors
legal authority - "The CFTC does not regulate the dozens of cryptocurrencies"; through their authority, they have enforcement over spot coin markets; analyze manipulation
tough enforcement - they have already launched civil actions, more will follow overall take: wants to work to foster education but introduce protections
Suggesting that perhaps one or both of SEC/CFTC may or should have full control
we should all come together and have a coordinated plan for dealing with the virtual currency market
far from how the stock market is addressed
asked by Crapo if there needs to be additional measures, responded "we may"
FINCEN has been active with AML/KYC
there isn't a comprehensive structure to deal with this
cross-border and international concerns; what challenges?
international nature means patchwork is not sufficient
FINCEN reports that these currencies are used for
encourages FINCEN to continue pursuing this
Markets have been global
Challenge working with overseas and bringing regulations
Challenge requires a lot of new thinking
Encourage to work together to decide how the regulation should look
ICOs raised $4bn globally
SEC focused to protect investors
not clear how much was raised in the U.S., due to unregulated basis; "significant portion"
cooperation between SEC and CFTC regulating Bitcoin but doesn't mention consumer protection bureau CFPB
we're in the enforcement perspective, i can check on that
report that "SEC has stopped enforcement actions against wall street firms"
"I saw that report"; found it annoying; gestation period is 22-24 months, latency period
we've put out a comprehensive report; i'm happy with that
we're pursuing our securities laws vigorously
troubled by a statement "SEC might lose 100 of its enforcement staff by not hiring those who leave"
how are you going to stay on top of everything else we've talked about as well as virtual currencies
personnel is my biggest challenge at the moment
we have a hiring freeze - natural cost, trouble finding people, etc
would receive the "greatest return for additional bodies"
is that the message that you're not the cop it should be?
not at all
I hope you will ask for money and flexibility
I've been very straight about money and value that can be added
Federal reserve is the biggest bank regulator we have
how are you going to put together a task force to deal with crypto currencies before this gets out of control
treasury secretary has brought us together to talk about this
"the funny thing is, they only work for their purported purpose if they're integrated with the financial service"
we are going to be coordinating responses; needs to be clear as to what we're doing
do you need additional legislation
we may be back to ask for that
virtual; go to a virtual doctor, virtual currency, etc
"i started out with pencil and paper in school"
Lack intrinsic value, lack liquidity
gained money going up, lost money going down
don't know where the floor is
relation between Bitcoin value and the cost of mining
charts plotting the correlation
the floor isn't zero, because there is some cost
"think there is something to the value of the crypto exchange"
"I'm not seeing the benefits manifesting themselves in the market yet"
"I'm interested in protecting the main street investors; they should see that"
in the securities world, there are rules that dictate how much you have to tell someone about what they're investing in
we will give you every tool you need to do your job and to hire every person you need to execute that
(essentially) do you have any cryptologists?
emerging area; could always use more horsepower
hired the industry's first "chief innovation officer"
started Lab CFTC
formed virtual currency task force
brought 3 cases against bitcoin fraudsters
used bypass authority for additional resources (13% over budget)
Bitcoin isn't the only one; there are seemingly new ones every day
are you tracking them all?
is someone looking at the long-term systemic effects
eerily similar to late-90s derivatives
Bitcoin is one of many; important to know that many are fraudulent
"MyBigCoin" which became known as "MyBigCon" - Ponzi scheme; we went after them
relatively small market, but we have to watch it
we have had to watch it because they're integrated with the markets we do oversee
on systemic - agrees with Giancarlo
if people are getting ripped off, that is an issue
"I used a pen and pencil as well"
fascinating to see how things are moving
we keep coming back to dollars and cents
new type of exchange; bartering
could avoid determination of the value of the dollar and cents
how do you tax? how do you recognize income?
seems that have to be filled, but basics that a lot of us don't understand
how do you respond to ICOs?
definition of a security is broad
"when you're offering me something and i give you money and the purpose of me giving you money is to profit from your actions going forward"
is Bitcoin a commodity or a security or is it both?
has characteristics of both
is a "medium of exchange, store of value, or a means of account"
we hear a lot of people holding - "HODL - hold on for dear life"
30 year old niece bought some years ago, is holding on
in this regard, it's a commodity
we are looking for fraud and manipulation so that people like his niece are protected
Jan 26th Bloomberg "SEC weighs a big gift [...] blocking class action lawsuits"
wants to get a straight yes/no - "do you support this enormous change in SEC policy"
bottom line - "I can't dictate whether or not this issue comes to us, but I'm not anxious to see a change in this area"
change can't happen without your approval
I'm only 1 of 5 votes
I'd guess there will be at lest 2 votes against it
It would take a long time
I'll let you get away with that
SEC's mission is to protect; not throw under bus
advisers that put fees, kickbacks for recommending product ahead of interest of clients
I want to know that you will not weaken the protections for retirement savers
that's what I'm trying to do - the relation between a broker and their client is regulated by no less than 5 people (the SEC)
want to make sure you're not jeopardizing investors
insufficient standard, lack of clarity, "the standard is only as good as the remedy available"
what dollars do you actually collect when someone does you harm?
if you want to strengthen it, i'm with you
who pays for frivolous lawsuits?
regulatory arbitrage, hard to trace
South Korea, China
was a largely unregulated space
each country is now taking regulatory measures
there's a lot happening beyond the understanding of your average investor
what do we need to do to combat this?
regulatory arbitrage, price arbitrage
different regional and international market
regulation - i think some time ago there was a perception Bitcoin was off the regulatory grid
enforcement / ICOs - we're using our full authority
we will go after misconduct
pump and dump
unregulated exchange, ability for price manipulation
we've taken 3 cases in the last few weeks, more to come
digging deep, learning a lot, seeing a lot
we are working the beat hard
what about retail investors?
formed partnership with CFPB (Consumer Financial Protection Bureau)
Bitcoin is one of the most frequently searched term on library computers
enhancing outreach to educate people coming to the library
getting the word out - financial intermediaries
are you protecting retirement investments
seniors seem to be the prey of choice - not just for Bitcoin
we seek to prosecute these predators
article from Kentucky "Bitcoin is my potential pension"
what would you do to protect them?
troubling, which is why we're putting out so much material
"if it sounds too good to be true, it is"
"if you're giving them money, you'd better be prepared to lose it"
disruptive technologies, but you shouldn't bank on it
pumping all of your money into a disruptive technology has a very high probability of not working out
"there will be winners, but there will be many losers"
want to ensure it's not used against terrorist groups and countries like N Korea
working with FBI; will require cooperation among multiple organizations
also has a dark web working group
when was the last time you bought a fund?
a year or two ago, index funds
did you read the fine print?
not cover to cover
so what's the point of all this over-disclosure if nobody's reading it?
why do we want to do the same for Bitcoin?
adequacy of full disclosure
"I don't think the disclosure we have right now works"
good for lawyers / financial advisers, but right now, we over-disclose
how far should we go to protect people from themselves?
how far do you think we ought to go here? should we just go after the shysters and fully disclose?
what is the right way to deal with this new technology?
we want to deal with ICOs; don't want to go too far
our securities laws work pretty well, but disclosure can be improved
we have to have disclosure that works, and helps the helpless people
if we see the same continued growth, we may see the market cap at 20 trillion dollars by 2020
we may see the same transformation take place
we are going to have to wrap our hands around this
not sure what the right answer is, but this could systemically rise to an FSOC-level event
if this does keep going, is this a systemic issue?
want to go back to separating these two things
should regulate ICOs like securities
false disclosure is fraud, period
so much more to be done
Ethereum - creating "file sharing or extra computer time"
are these in your realm?
if it's an ICO that promises to deliver server time, it's a security
worried that we need a much more coordinated effort
could be as transformational as wireless technology
it is important; we are all working to understand our authorities
bitcoin futures are different; fully transparent and regulated, compared to Bitcoin that's opaque and unregulated
ICOs should be taken under our regime
Putting aside Bitcoin and other distributed ledger, what do you think the value is?
Without Bitcoin, there would be nothing. everything grew out of it.
applications range from financial services and banking, to charity dollars are spent, refugee, access to banking for those who don't have it
66 million tons of soybeans were traded using Bitcoin
allow regulators to do really close market surveillance with precision
challenges, but the potential is significant
agree the potential is significant
hope people pursue it vigorously
DOW Jones fell 4.6%; dollar seen 2% inflation or less; Bitcoin seems to be very volatile in comparison
we have seen volatility but in our world, we're used to it
emergence of futures to provide those who are exposed to it
don't really know what's driving the volatility
not related to foreign currencies
must be something different
lot of volatility compared to what they're supposed to be a substitute for
(essentially) so how does that bode to its claim?
it would not be a very effective means of exchange
with the volatility and delays, there's a significant risk
(quick shout out to) rogue nations, hackers, etc
under what circumstances do the SEC and CFTC have a role in regulating this?
fraud and manipulation - will not hesitate to take authority
what about manipulating to avoid U.S. sanctions?
I'll have to look into that
are there gaps that could create vulnerabilities?
part of a virtual currency task force; includes the fed and FINCEN
meeting with FINCEN this week to get some discussion of cooperation started
seen increase in ICOs; investors using digital tokens
grew from $96mil in 2016 to $4bil in 2017
celebrity promotion - Floyd Mayweather, Kardashian, et al
investors may not understand true risk when they see a product promoted by celebrities
we put out an alert that if you promote a security, you are taking on securities law liability
can you walk us through why the SEC is not comfortable with approving ETFs with crypto currencies?
we've made it clear that there are some issues - price discovery, custody, volatility
don't want to approve an ETF product with a cryptocurrency underlier without working out these issues
don't ETFs mitigate those concerns? are crypto currencies different?
MGT act - modernizing government technologies
create a fund for federal agencies to rid themselves of legacy technology
allows access to dollars; move to cloud
i would be delighted that there isn't a SEC/CFTC hack in the papers soon; advise strengthening cyber security
Kodak and Burger King investments
companies are using block chain as an opportunity to pump up stock prices
Long Island Ice Tea - Long Blockchain
nobody should think it's okay to chain your name to something that contains block chain when you have no idea what you're doing
any time there's something new that can raise the value of their stock without the underlying goods being there, it's not good
ICOs misrepresenting their affiliation where there are wild claims
"Our big task is bringing in enforcement cases and letting people see that"
3bn Bitcoin have been hacked, $500bn hack weeks ago, MtGox
what can buyers do to get their money back?
when you engage in investing online with an offshore entity, the chances that we can do anything to get your money back are very low
for the underlying spot markets, we don't have the authority to enforce safeguards and protections; this is a problem
"It's the old axiom "buyer beware"."
(in regards to the stock market) "Is this perhaps more than ordinary correction?"
I asked my staff and the federal government the same question
nothing to indicate any of our systems didn't indicate properly
largest volume since 2016
Neither single stock nor circuit breakers triggered
Nothing that came out of this are concerning
Is it profit taking? Is it a spook?
Interest rates? Fed has info we don't have?
Economy high, unemployment low?
Combination? Can we really say?
I can't really say. Lots of opinions.
Our job is to look at the systemic risks.
I've not seen anything.
"Markets up? More people bought than sold. Market down? More people sold than bought."
Markets are very complex. Fundamentals are sound. Doesn't appear to be any significant breeches.
Some ICOs are legitimate, some are just Ponzi schemes
"It's now so bad that Facebook recently banned all ads for virtual currencies"
How do we make ICOs safer?
Companies raised more than $4bil
How many companies registered with SEC?
Can you say just a word as to why that's so?
the gatekeepers haven't done their job. we've made it clear what the law is.
there are thousands of private placements. we want them to raise capital. but we want them to do it right.
folks somehow got comfortable that this was new and it's okay.
Hodl Hodl launches new project called "Predictions" on TESTNET
From the related blog post (https://medium.com/@hodlhodl/predictions-by-hodl-hodl-available-on-testnet-83f8ff97a98d): Today we’re officially announcing our project “Predictions by Hodl Hodl” which is now available on TESTNET — predictions.cc. In this blog post we want to give instructions, explain how everything works, and give you some use-cases for our new project. Let’s get everything in order. Overview Predictions is a project by Hodl Hodl that is a marketplace where you can go and create a contract with someone else, where the conditions of the payout depend on the outcome of a certain event. The payouts are only made in Bitcoin. Let’s say you want to predict that the price of Bitcoin will be above $15,000 by July 2019. The other party may disagree with you. The condition of the contract states that each one of you locks 1 Bitcoin into escrow and whoever turns out to be correct in the prediction of the price of Bitcoin gets 2 bitcoins in July. We provide you with a solution to make this possible:
An offer desk
Simply put, it’s a place where you can find other users’ predictions and create your own;
For each contract we generate two multisig addresses, where the funds are being stored safely during the prediction contract, with two out of three keys needed for release.
In case of a disagreement between the two parties on the prediction contract’s outcome, Hodl Hodl intervenes and resolves the dispute. Use cases The use case described above is the simplest one. Here are just a few more examples from an infinite number of options:
You can buy public company shares, and try predicting the price of that stock. Choose any public company, e.g. Google, and predict the price of its shares by, for example, the end of 2019.
If you’re long on renewable energy, you would probably expect the price of oil to fall at some point — predict when exactly.
Payouts to creditors of MtGox
If you’re a MtGox creditor (a Bitcoin exchange that was hacked and went bankrupt back in 2014) and awaiting the payout, you might be interested in creating a contract that says “creditors of MtGox will not be paid anything in 2019” even though your expectation is that they will be. Thus, if you get paid by MtGox, you receive bitcoins from them, but lose the ones you locked in your contract. If you don’t get paid by MtGox, you’d get some of the bitcoins that will be sort of a compensation for a longer wait period.
The outcome of the Champions League final
You can make the final more exciting by creating a prediction of who gets to be the Champions League winner in 2019.
Peter McCormack VS Craig Wright
If you follow these kinds of events and want to support either side, make a prediction of who wins the trial, or whether it goes to trial at all. Offer creation To make a prediction offer, simply press the “Add offer” button on the front page of the website, or on “My offers” page. When creating offers, you have to describe the event, the outcome you predict, how many bitcoins you would like to lock in escrow and how much your counterparty should lock in escrow. We made the process as simple as possible, and creating offers won’t take much of your time. Please note:
Every offer is pre-moderated by Hodl Hodl admins Your offer should not describe anything illegal You should be as specific and unambiguous as possible when describing the event outcome
Contract workflow When you create an offer and someone accepts it, or you accept an existing offer, a contract is created. Let’s analyze this step by step. 1) Contract is created; Right after the contract is created, Hodl Hodl generates two unique escrow addresses. It’s worth mentioning: We support native Bech32 SegWit addresses. This means you can send and receive the funds from escrow to Bech32 addresses when the contract is completed We generate P2SH-P2WSH SegWit multisig escrow addresses. For every contract we generate multisig addresses in SegWit format. 2) Both parties make deposits; Both offeror and acceptor make deposits to the escrow addresses we present them with, sending funds from their own Bitcoin wallets. 3) Waiting for the event to take place; When both counterparties have sent bitcoins to the escrow addresses and transactions are confirmed, we inform users that everything is alright, and we’re waiting for the event to take place. 4) Acknowledging the contract outcome; Once the event has happened, we ask both parties to decide who was right and who was wrong regarding the prediction made. Both parties are given 3 days to acknowledge this. If there’s a disagreement between them or one party doesn’t make the decision as to the outcome of the contract within 3 days, a dispute is started. It’s also possible for both parties to declare a draw — in this case, both parties are able to refund the funds they’ve previously locked in escrow. 5) Prediction contract is now complete! If the parties agreed on the contract outcome, the party that predicted the outcome correctly can release all locked funds from the escrow to their own Bitcoin wallet: both the funds the party itself locked and the funds that the counterparty locked. That’s it, the workflow is as simple as that. Dispute case It’s worth asking, what exactly happens in case of a disagreement between the two parties in a prediction contract? Say we have a dispute in which case Hodl Hodl intervenes and resolves the dispute by:
Analyzing the prediction contract;
Verifying the event outcome;
Deciding, who predicted the outcome correctly.
Administrator has the following options: either resolve the dispute in favor of one of the counterparties, or to recognize a draw. We do not expect this scenario to be difficult or waste our resources, because every offer is pre-moderated and we apply strict rules for offer creation. That’s it A new milestone begins in our company’s development, we would appreciate support from your side: please share this news, send us suggestions and bugreports about this project, and be sure you’ll see more exciting things to come very soon. Predictions on MAINNET The mainnet version is going live in June 2019, follow our news to stay informed!
Hello! My name is Inna Halahuz, I am a sales manager at Platinum, the largest listing service provider for the STO and ICO projects. We know all about the best and most useful STO and ICO marketing services. By the way, we developed the best blockchain platform: [Platinum.fund] (https://platinum.fund/sto/) We also created the UBAI, the unique educational project with the best and most useful online courses. We not only share our knowledge but also help the best graduates to find a job! After finishing our courses you will know all about crypto securities, ICO and STO advertizing and best blockchain platforms. What a Blockchain Wallet is? What is its purpose? Find the answer after reading this article. Public/Private Key The public key is the digital code you give to someone that wants to transfer ownership of a unit of cryptocurrency to you; and a private key is what you need to be able to unlock your own wallet to transfer a unit of a cryptocurrency to someone else. The encoding of information within a wallet is done by the private and public keys. That is the main component of the encryption that maintains the security of the wallet. Both keys function in simultaneous encryption systems called symmetric and asymmetric encryption. The former, alternatively known as private key encryption, makes use of the same key for encryption and decryption. The latter, asymmetric encryption, utilizes two keys, the public and private key, wherein a message-sender encrypts the message with the public key, and the recipient decodes it with their private key. The public key uses asymmetric algorithms that convert messages into an unreadable format. A person who possesses a public key can encrypt the message for a specific receiver. Accessing wallets Methods of wallet access vary depending on the type of wallet being used. Various types of currency wallets on an exchange will normally be accessed via the exchange’s entrance portal, normally involving a combination of a username/password and optionally, 2FA (Two factor authentication, which we explain in more detail later). Whereas hardware wallets need to be connected to an internet enabled device, and then have a pin code entered manually by the user in possession of the hardware wallet in order for access to be gained. Phone wallets are accessed through the device on which the wallet application has been downloaded. Ordinarily, a passcode and/or security pattern must be entered before entry is granted, in addition to 2FA for withdrawals. Satoshi Nakamoto built the Satoshi client which evolved into Bitcoin in 2009. This software allowed users to create wallets and send money to other addresses. However, it proved to be a nightmarish user experience, with many transactions being sent to incorrect addresses and private keys being lost. The MtGox (Magic the Gathering Online exchange, named after the original intended use of the exchange) incident, which will be covered in greater detail later, serves as a reminder of the dangers present in the cryptosphere regarding security, and the need to constantly upgrade your defenses against all potential hacks. The resulting loss of 850k BTC is a still unresolved problem, weighing heavily on the victims and the markets at large. This caused a huge push for a constantly evolving and improving focus on security. Exchanges that developed later, and are thus considered more legitimate and secure, such as Gemini and Coinbase, put a much greater emphasis on vigilance as a direct result of the MtGox hacking incident. We also saw the evolution of wallet security into the physical realm with the creation of hardware wallets, most notable among them the Ledger and Trezor wallets. Types of Wallets & Storage Methods The simplest way to sift through the dozens of cryptocurrency storage methods available today, is to divide them up into digital and non-digital, software and hardware wallets. There are also less commonly used methods of storage of private keys, like paper wallets and brain wallets. We will examine them all at least briefly, because in the course of your interaction with cryptocurrencies and Blockchain technology, it is essential to master all the different types of hardware and software wallets. Another distinction must be made between hot wallets and cold wallets. A hot wallet is one that is connected to the internet, and a cold wallet is one that is not. Fun fact: The level below cold storage, deep cold storage has just recently been implemented by the Regal RA DMCC, a subsidiary of an internationally renowned gold trading company licensed in the Middle East. After having been granted a crypto trading license, Regal RA launched their “deep cold” storage solution for traders and investors, which offers the ability to store crypto assets in vaults deep below the Almas Tower in Dubai. This storage method is so secure that at no point is the vault connected to a network or the internet; meaning the owners of the assets can be sure that the private keys are known only to the rightful owners. Lets take a quick look at specific features and functionality of varieties of crypto wallets. Software wallets: wallet applications installed on a laptop, desktop, phone or tablet. Web Wallets: A hot wallet by definition. Web Wallets are accessible through the web browser on your phone or computer. The most important feature to recognize about any kind of web wallet, is that the private keys are held and managed by a trusted third party. MyEtherWallet is the most commonly used non-exchange web wallet, but it can only be used to store Ethereum and ERC-20 tokens. Though the avenue of access to MEW is through the web, it is not strictly speaking a web wallet, though this label will suffice for the time being. The MEW site gives you the ability to create a new wallet so you can store your ETH yourself. All the data is created and stored on your CPU rather than their servers. This makes MEW a hybrid kind of web wallet and desktop wallet. Exchange Wallets: A form of Web Wallet contained within an exchange. An exchange will hold a wallet for each individual variety of cryptocurrency you hold on that exchange. Desktop Wallets: A software program downloaded onto your computer or tablet hard drive that usually holds only one kind of cryptocurrency. The Nano Wallet (Formerly Raiwallet) and Neon wallet for storage of NEO and NEP-5 tokens are notable examples of desktop wallets Phone Wallets: These are apps downloaded onto a mobile phone that function in the same manner as a desktop wallet, but actually can hold many different kinds of cryptocurrency. The Eidoo Wallet for storing Ethereum and its associated tokens and Blockchain Wallet which currently is configured to hold BTC, ETH and Bitcoin Cash, are some of the most widely used examples. Hardware wallets — LedgeTrezoAlternatives Hardware wallets are basically physical pathways and keys to the unique location of your crypto assets on the Blockchain. These are thought to be more secure than any variety of web wallet because the private key is stored within your own hard wallet, an actual physical device. This forcibly removes the risk your online wallet, or your exchange counter party, might be hacked in the same manner as MtGox. In hardware wallet transactions, the wallet’s API creates the transaction when a user requests a payment. An API is a set of functions that facilitates the creation of applications that interact and access features or data of an operating system. The hardware then signs the transaction, and produces a public key, which is given to the network. This means the signing keys never leave the hardware wallet. The user must both enter a personal identification number and physically press buttons on the hardware wallet in order to gain access to their Blockchain wallet address through this method, and do the same to initiate transfers. Paper Wallets Possibly the safest form of cryptocurrency storage in terms of avoiding hacking, Paper Wallets are an offline form of crypto storage that is free to set up, and probably the most secure way for users, from beginners to experts, to hold on to their crypto assets. To say it simply, paper wallets are an offline cold storage method of storing cryptocurrency. This includes actually printing out your public and private keys on a piece of paper, which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user. You do not need to worry about the security or condition of a piece of hardware, nor do you have to worry about hackers on the net, or any other piece of malware. You just need to take care of one piece of paper! Real World Historical Examples of Different Wallet Types Web Wallet: Blockchain.info Brief mechanism & Security Blockchain.info is both a cryptocurrency wallet, supporting Bitcoin, Ethereum and Bitcoin cash, and also a block explorer service. The wallet service provided by blockchain.info has both a Web Wallet, and mobile phone application wallet, both of which involve signing up with an email address, and both have downloadable private keys. Two Factor Authentication is enabled for transfers from the web and mobile wallets, as well as email confirmation (as with most withdrawals from exchanges). Phone Wallet: Eidoo The Eidoo wallet is a multi-currency mobile phone app wallet for storage of Ethereum and ERC-20 tokens. The security level is the standard phone wallet level of email registration, confirmation, password login, and 2 factor authentication used in all transfers out. You may find small volumes of different varieties of cryptocurrencies randomly turning up in your Eidoo wallet address. Certain projects have deals with individual wallets to allow for “airdrops” to take place of a particular token into the wallet, without the consent of the wallet holder. There is no need to be alarmed, and the security of the wallet is not in any way compromised by these airdrops. Neon Wallet The NEON wallet sets the standard for web wallets in terms of security and user-friendly functionality. This wallet is only designed for storing NEO, Gas, and NEP-5 tokens (Ontology, Deep Brain Chain, RPX etc.). As with all single-currency wallets, be forewarned, if you send the wrong cryptocurrency type to a wallet for which it is not designed, you will probably lose your tokens or coins. MyEtherWallet My Ether Wallet, often referred to as MEW, is the most widely used and highly regarded wallet for Ethereum and its related ERC-20 tokens. You can access your MEW account with a hardware wallet, or a different program. Or you can also get access by typing or copying in your private key. However, you should understand this method is the least safe way possible,and therefore is the most likely to result in a hack. Hardware: TrezoLedger Brief History Mechanism and Security A hardware wallet is a physical key to your on-chain wallet location, with the private keys contained within a secure sector of the device. Your private key never leaves your hardware wallet. This is one of the safest possible methods of access to your crypto assets. Many people feel like the hardware wallet strikes the right balance between security, peace of mind, and convenience. Paper Wallet Paper wallets can be generated at various websites, such as https://bitcoinpaperwallet.com/ and https://walletgenerator.net/. They enable wallet holders to store their private keys totally offline, in as secure a manner as is possible. Real World Example — Poor Practices MtGox Hack history effects and security considerations MtGox was the largest cryptocurrency exchange in the world before it was hacked in 2014. They were handling over 70% of BTC transactions before they were forced to liquidate their business. The biggest theft of cryptocurrency in history began when the private keys for the hot wallets were stolen in 2011 from a wallet.dat file, possibly by hacking, possibly by a rogue employee. Over the course of the next 3 years the hot wallets were emptied of approximately 650000 BTC. The hacker only needed wallet.dat file to access and make transfers from the hot wallet, as wallet encryption was only in operation from the time of the Bitcoin 0.4.0 release on Sept 23rd 2011. Even as the wallets were being emptied, the employees at Mt Gox were apparently oblivious to what was taking place. It seems that Mt Gox workers were interpreting these withdrawals as large transfers being made to more secure wallets. The former CEO of the exchange, Mark Karpeles, is currently on trial for embezzlement and faces up to 5 years in prison if found guilty. The Mt Gox hack precipitated the acceleration of security improvements on other exchanges, for wallets, and the architecture of bitcoin itself. As a rule of thumb, no small-to-medium scale crypto holders should use exchange wallets as a long-term storage solution. Investors and experienced traders may do this to take advantage of market fluctuations, but exchange wallets are perhaps the most prone to hacking, and storing assets on exchanges for an extended time is one of the riskiest ways to hold your assets. In a case strikingly similar to the MtGox of 2011–2014, the operators of the BitGrail exchange “discovered” that approximately 17 million XRB ($195 million worth in early 2018) were missing. The operators of the exchange were inexplicably still accepting deposits, long after they knew about the hack. Then they proceeded to block withdrawals from non-EU users. And then they even requested a hard fork of the code to restore the funds. This would have meant the entire XRB Blockchain would have had to accept all transactions from their first “invalid” transaction that were invalid, and rollback the ledger. The BitGrailexchange attempted to open operations in May 2018 but was immediately forced to close by order of the Italian courts. BitGrail did not institute mandatory KYC (Know your customer) procedures for their clients until after the theft had been reported, and allegedly months after the hack was visible. They also did not have 2 factor authentication mandatory for withdrawals. All big, and very costly mistakes. Case Study: Good Practice Binance, the Attempted Hack During the 2017 bull run, China-based exchange Binance quickly rose to the status of biggest altcoin exchange in the world, boasting daily volumes that surged to over $4 billion per day in late December. Unfortunately, this success attracted the attention of some crafty hackers. These hackers purchased domain names that were confusingly similar to “binance.com”. And then they created sufficiently convincing replica websites so they could phish traders for their login information. After obtaining this vital info, the scammers created API keys to place large buy orders for VIAcoin, an obscure, low volume digital currency. Those large buy orders spiked VIA’s price. Within minutes they traded the artificially high-priced VIA for BTC. Then they immediately made withdrawal requests from the hacked BTC wallets to wallets outside of the exchange. Almost a perfect fait accompli! But, Binance’s “automating risk management system” kicked in, as it should, and all withdrawals were temporarily suspended, resulting in a foiled hacking attempt. Software Wallets Web/Desktop/Phone/Exchange Advantages and Limitations As we said before, it is inadvisable to store crypto assets in exchange wallets, and, to a lesser extent, Web Wallets. The specific reason we say that is because you need to deliver your private keys into the hands of another party, and rely on that website or exchange to keep your private key, and thus your assets, safe. The advantages of the less-secure exchange or web wallets, are the speed at which you can transfer assets into another currency, or into another exchange for sale or for arbitrage purposes. Despite the convenience factor, all software wallets will at some point have been connected to the internet or a network. So, you can never be 100% sure that your system has not been infected with malware, or some kind of keylogging software, that will allow a third party to record your passwords or private keys. How well the type of storage method limits your contact with such hazards is a good way to rate the security of said variety of wallet. Of all the software wallets, desktop and mobile wallets are the most secure because you download and store your own private key, preferably on a different system. By taking the responsibility of private key storage you can be sure that only one person has possession of it, and that is you! Thereby greatly increasing the security of your crypto assets. By having their assets in a desktop wallet, traders can guard their private key and enjoy the associated heightened security levels, as well keep their assets just one swift transfer away from an exchange. Hardware Wallets Advantages and Limitations We briefly touched on the features and operation of the two most popular hardware wallets currently on the market, the Ledger and Trezor wallets. Now it will be helpful to take a closer look into the pros and cons of the hardware wallet storage method. With hardware wallets, the private keys are stored within a protected area of the microcontroller, and they are prevented from being exported out of the device in plain text. They are fortified with state-of-the-art cryptography that makes them immune to computer viruses and malware. And much of the time, the software is open source, which allows user validation of the entire performance of the device. The advantages of a hardware wallet over the perhaps more secure paper wallet method of crypto storage is the interactive user experience, and also the fact that the private key must at some stage be downloaded in order to use the paper wallet. The main disadvantage of a hardware wallet is the time-consuming extra steps needed to transfer funds out of this mode of storage to an exchange, which could conceivably result in some traders missing out on profits. But with security being the main concern of the vast majority of holders, investors and traders too, this slight drawback is largely inconsequential in most situations. Paper Wallets Advantages and Limitations Paper wallets are thought by some to be the safest way to store your crypto assets, or more specifically, the best method of guarding the pathways to your assets on the Blockchain. By printing out your private key information, the route to your assets on the Blockchain is stored 100% offline (apart from the act of printing the private key out, the entire process is totally offline). This means that you will not run the risk of being infected with malware or become the victim of keylogging scams. The main drawback of using paper wallets is that you are in effect putting all your eggs in one basket, and if the physical document is destroyed, you will lose access to your crypto assets forever. Key things to keep in mind about your Wallet Security: Recovery Phrases/Private Key Storage/2FA/Email Security Recovery phrases are used to recover the on-chain location for your wallet with your assets for hardware wallets like ledgers and Trezors that have been lost. When you purchase a new ledger for example, you just have to set it up again by entering the recovery phrase into the display and the lost wallets will appear with your assets intact. Private key storage is of paramount importance to maintain the safety of your on-chain assets! This should be done in paper wallet form, or stored offline on a different computer, or USB device, from the one you would typically use to connect to the 2 Factor Authentication (2FA) sometimes known as “two step authentication”. This feature offers an extra security layer when withdrawing funds from cryptocurrency wallets. A specialized app, most commonly Google Authenticator, is synced up to the exchange to provide a constantly changing code. This code must be entered within a short time window to initiate transfers, or to log into an exchange, if it has also been enabled for that purpose. You must always consider the level of fees, or the amount of Gas, that will be needed to carry out the transaction. In times of high network activity Gas prices can be quite high. In fact, in December 2017 network fees became so high that some Bitcoin transactions became absolutely unfeasible. But that was basically due to the anomalous network congestion caused by frantic trading of Bitcoin as it was skyrocketing in value. When copying wallet addresses, double check and triple check that they are correct. If you make a mistake and enter an incorrect address, it is most likely your funds will be irretrievably lost; you will never see those particular assets again. Also check that you haven’t input the address of another one of your wallets that is designed to hold a different variety of cryptocurrency. You would similarly run the very great risk of losing your funds forever. Or, at the very least, if you have sent the wrong crypto to a large exchange wallet, for example on Coinbase, maybe you could eventually get those funds back, but it would still entail a long and unenjoyable wait. How to Monitor Funds There are two ways to monitor you funds and your wallets. The first is by searching for individual wallet addresses on websites specifically designed to let you view all the transactions on a particular Blockchain. The other is to store a copy of your wallet contents on an application that tracks the prices of all cryptocurrencies. Blockchain.info is the block explorer for Bitcoin, and it allows you to track all wallet movements so you can view your holdings and all the historical transactions within the wallet. The Ethereum blockchain’s block explorer is called Ether scanner, and it functions in the same way. There is a rival to Ether scanner produced by the Jibrel Network, called JSearch which will be released soon. JSearch will aim to offer a more streamlined and faster search method for Ethereum blockchain transactions. There are many different kinds of block explorer for each individual crypto currency, including nanoexplorer.io for Nano (formerly Rai Blocks) and Neotracker for NEO. If you simply want to view the value of your portfolio, the Delta and Blockfolio apps allow you to easily do that. But they are not actually linked to your specific wallet address, they just show price movements and total value of the coins you want to monitor. That’s not all! You can learn how to transfer and monitor the funds in and out of your wallet by clicking on the link. To be continued! UBAI.co Contact me via Facebook, Instagram and LinkedIn to learn more about the best online education: LinkedInFacebookInstagram
Hello! My name is Slava Mikhalkin, I am a Project Owner of Crowdsale platform at Platinum, the company that knows how to start any ICO or STO in 2019. If you want to avoid headaches with launching process, we can help you with ICO and STO advertising and promotion. See the full list of our services: Platinum.fund I am also happy to be a part of the UBAI, the first educational institution providing the most effective online education on blockchain! We can teach you how to do ICO/STO in 2019. Today I want to tell you how to sell and transfer cryptocurrencies. Major Exchanges In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem. Function and History Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe. The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people. Popular Exchanges Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence. Bitfinex Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT). Binance Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours. Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles. Have you ever thought about what are the types of Crypto exchanges?
Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet. Regulatory Environment and Evolution Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold. The United States of America A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system. The European Union The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology. Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto. Behavior of Cryptocurrency Investors by Demographic Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions. The Cryptocurrency Market Cycle Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins. Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years. The Influence of Age upon Trading Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.” Geographic Influence upon Trading One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside. 2013 Bull run vs 2017 Bull run price Analysis In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely. Fraud & Immoral Activity in the Private Market Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak. What are the Exchange Hacks? The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts. Hardware Wallet Scam Case Study In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified). Hardware Wallet Scam Case Study Social Media Fraud Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed. Market Manipulation It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase. Examples of ICO Fraudulent Company Behavior In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”. Signposts of Fraudulent Actors The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper. Signposts of Fraudulent Actors §2 No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out. Methods to Avoid falling Victim Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.” Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not? If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper. Is this too good to be true? All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH. Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take: If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees. Selling Cryptocurrencies Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time. Methods of Sale Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons. The influence and value of your Trade There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project. Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market. Market Behavior in Different Time Periods The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order. Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens. Follow the link: UBAI.co If you want to know how do security tokens work, and become a professional in crypto world contact me via Facebook to get all the details: Facebook
Bitcoin is not user-friendly. Here's a short list of problems, and proposed solutions.
While a lot of attention is being paid to the technical side of the bitcoin protocol, I've noticed a disturbing lack of attention paid to the user experience of the client, and of the ecosystem in entirety. "It's good enough" is tossed around a lot. It works, it's functional. Let me say this unequivocally: Bitcoin is not even close to ready for use by the general public. The problem is not a lack of exposure. The problem is that it's a pain in the ass. I mean no offense to the developers working on the client. I'm a web developer myself, and I have a ton of respect for the complexity of what they're building. But, someone needs to throw up some giant red flags as soon as possible to ensure that development starts to trend more towards usability rather than just functionality. For the sake of making this discussion easier, I'd like to define a few classes of people:
Developers are the folks working on the client itself, building tools like MtGox to trade bitcoins, and so on.
Nerds are folks like you and I, the majority of people using Bitcoin today. We have a high tolerance for pain and can cope with difficult or unnecessarily complex programs; some of us even enjoy it. We'll spend a week learning the quirks of the system for the sake of using it.
Users are normal people, like your parents or people who watch American Idol. (I'm generalizing, but you probably understand what I mean.) They like things to be easy to use. Truly easy, not easy-after-I-spent-2-weeks-learning-it easy. If something is difficult, they will stop using it. Nerds have a strong tendency to look down upon Users, because we're anti-social and kind of jerks and because Users are great at pointing out when a system that we spent hours building has a stupid flaw that makes it utterly baffling to use for anyone who didn't build it.
Developers are building Bitcoin for Nerds right now, but Users make up the majority of the human race. If we don't start working on making it accessible to Users, and soon, this bubble that everyone keeps talking about is going to burst and instead of being left with an inflated currency but a thriving, stable economy, we'll have a bunch of Nerds who spent a lot of time day-trading and never actually buying anything. Bitcoin needs sellers of goods and services in order to thrive, sellers can't thrive without buyers, and we need Users to buy. There aren't enough of us Nerds alone. There has to be growth. So, without further ado, please refer to this image: http://mlkshk.com/35UI Here's what I think needs to change.
This Address Book hijacks the common usage of the phrase - that is, the place where a User keeps data about their personal contacts. The Bitcoin Address Book is where one keeps a list of their own addresses. For a new User, this is incredibly confusing. There are a number of immediate, unanswered questions: Why do I have multiple addresses? Which one should I keep my money in? I didn't create this address, why is it here?
I'd recommend obscuring the multiple address concept as much as possible. The creation of a new address when sending bitcoins is a clever anonymizing tactic, but very confusing to the User. The client can create as many addresses as it needs to, but the User should see their funds as existing as one cohesive unit unless they explicitly create a new address. (Side note: if one wanted to determine where someone had sent bitcoins, wouldn't it be easy to research both the addresses used and find out which one had a history and which didn't? If I donate .90 of my 1.00 BCD to the EFF, the public will see .90 go to address ABC and .10 go to my new address XYZ. If they Google both of those, one shows up on the EFF's website, and the other is brand new. Seems sort of frivolous to me.)
Calling this "Your Bitcoin Address" implies that the User has one address. "This is your address". In reality, this displays the currently selected address, which doesn't appear to change the UI in any significant way. Copy needs to be changed, at least, but I'd again recommend obscuring the concept as much as possible for the sake of preventing confusion.
The balance is, arguably, the most important bit of data in this interface. It should be significantly more prominent. Perhaps the transactions table below should be redesigned (see #9 for more) with the UI border removed and table headers less accentuated, and the current balance displayed in larger text above the Credit column. This would create a visual flow between where a user is now in terms of bitcoin balance, and how they got there.
For about a week in to learning Bitcoin, this New button scared the hell out of me. Combined with the "Your Bitcoin Address" copy, it creates the implication that you can create a new address - that is, replace your current (singular) address with a new address, theoretically wiping out your old one. The button copy needs to be improved, to better explain what is really going on. "Create Additional Address", "Add Address", something like that. Less new/replacing, more creating/adding.
Why can't I just highlight the address and copy it with Command/Ctrl-C? Visually, it's in a stinking text box. The cursor even changes from arrow to text selector! The fact that I can't copy it is silly. Make the box look different, or remove the button and allow for selecting with the cursor.
This doesn't belong at the beginning of the table. Confirmation count is only useful to determine whether or not a transaction is valid, so once it's accepted this data doesn't need to be displayed at all. Probably doesn't ever need to be displayed to Users. What's the difference between 200 confirmations and 300? Practically: nothing.
Hid this for the sake of protecting my privacy, but the date format is silly. 24-hour time by default, no way to change it, no indication of the time zone used. There are a number of little quirks like this in the UI. Individually, they're just picked nits, but combined they create enough cognitive stress to make an interface "difficult". It just doesn't feel good.
Listing the address that received the transaction is silly. Of course I received it with that address, because that's the address I'm currently viewing the transactions for. Show me where it came from.
If you're going to use plus signs, you don't need to use Debit/Credit columns. Redundant data, one way or another.
I'm twelve years old and what is this. Or if you'd prefer, this data is contextless and meaningless to Users (and frankly, I'm not entirely sure why I should care either). Connections count could be useful as an indicator of client connectivity, but that should be displayed as a binary Connected/Not Connected indicator (red/yellow/green light?) or not at all. Block count isn't important for a User to know unless they explicitly want details on the system's status, which should be buried in a menu somewhere. Transactions count should be with the transactions themselves.
So that's a short list. I didn't even get in to the concept of the ambiguous delay when receiving bitcoins, or why requiring manual Wallet backups is a dangerous idea, or why the Wallet itself is stupidly fragile, but maybe I'll touch on that later. For now, think about Bitcoin from the perspective of a User. I mean, really think about it. Could your grandmother use it, as it stands today? Why would she? How could she? Bitcoin needs to be accessible, easy, and - dare I say it - fun to to use if it's ever going to succeed. Functional isn't good enough, and the discussion about the next steps needs to start now. And for what it's worth, I'm willing to put my money where my mouth is. If you're developing a client or a Bitcoin-related service, I'd really like to stop complaining and do whatever I can to help fix this. Get in touch. (Note: this isn't a plea for work. I have a full-time job, I'd just like to offer anything I can to improve the system.) Thoughts? [Edit] Wow, this got significantly more attention than I expected. Glad to see so many people contributing to the discussion; even most of those who disagree with some/all of what I said have pretty good arguments! I am working on a basic GUI wallet as a proof of concept of what I'd like to start seeing, but no guarantees that it will ever actually get finished. I don't have nearly enough free time to devote to it right now, sadly, but I'll do what I can. The post from MtGox today implied that they're working on reducing the difficulty surrounding converting currencies, which would be a huge step in the right direction too. Also realized I should have included my Bitcoin address!
Write a long post.
Get a ton of attention.
Don't include Bitcoin address.
If you feel like throwing a few bitcoins my way: 1KSEKy3XTRxJd7CqKciSsnx752VRaibBWr
NOTE: I'm trying my best but because of the sheer volume of tidbits popping up every day, this post might ocasionally miss some updates. Please feel free to point it out in the comments whenever you feel there is information missing in the post, thanks! A note on recovering funds: We have no information on how to recover fiat/bitcoins/goxcoins yet and MtGox has only given very vague statements so far. It is speculated Mark Karpeles (CEO of MtGox) is currently figuring out what to do and not flying to the Bahamas with our money. It is advisable to have patience and wait for new developments on the subject for the time being. March 26th, 2014
Following its application for commencement of civil rehabilitation, MtGox Co., Ltd. consulted with the metropolitan police department with regard to the disappearance of bitcoins which is one of the causes for said application. MtGox Co., Ltd. hereby announces that it has submitted necessary electronic records and other related documents. MtGox Co., Ltd. intends to fully cooperate with each competent authority. Further, MtGox Co., Ltd. continues to make efforts to clarify facts as quickly as possible and to recover from damages.
Match 25th, 2014 A new rumor has surfaced twitter, currently unsubstantiated, from @CanarslanEren who according to his previous tweets would have previously either guessed correctly or know in advance about the recovered 200K BTC (emphasis mine):
Within a few days(or hours) @MtGox will announce that "they found ~670.000 #bitcoin & may release some BTCs to the victims. @PatronaPartners
There's a new update on mtgox.com confirming the previous story of having recovered 200K BTC that were thought lost. Key points:
On March 7, 2014, MtGox Co., Ltd. confirmed that an oldn format wallet which was used prior to June 2011 held a balance of approximately 200,000 BTC (199,999.99 BTC)
For security reasons, the 200,000 BTC which were at first on the 7th moved to online wallets were moved between the 14 th and the 15th to offline wallets.
The bitcoins held today by MtGox Co., Ltd. amount to a total of approximately 202,000 BTC, including the above 200,000 BTC and the approximately 2,000 BTC which existed prior to the application for commencement of a civil rehabilitation proceeding.
March 20th, 2014
Several users were reporting issues with the balance-checking tool online at mtgox.com, namely that bank transfers and transactions stuck in progress were not showing. This is now apparently fixed and balances seem to have been accordingly updated. Thread here.
In line with the blockchain movements we've seen for the past few weeks and the respective MtGox API activity, finally a japanese news article appeared where MtGox lawyers announce MtGox has found and owns 200K BTC, translation, courtesy of h1d:
Bitcoin exchange Mt.Gox which collapsed in February announced on 20th that they have found they're still in possession of the 200,000 BTC out of the 850,000 BTC that was reported to be lost. According to the lawyer, they found them on the 7th of this month by searching through a storage on the internet called a "wallet" which was being used by MtGox up until June 2011. MtGox has reported that they have lost almost all of the 850,000 BTC owned while filing for bankruptcy protection on February 28th.
A new update on mtgox.com is now online: account holders can now provide their login authentication data on the site to retrieve the last status of their wallets for convenience. It would appear that this update is legimitate, Redditcoinstates:
I just called the MtGox call centre in Japan - they confirmed that the login has been put there by "legal" and they have not been hacked. I called this number from the original banckrupty announcement (I called from Australia - we are only 2 hours ahead): +81 3-4588-3922. A nice man with an American accent said that the login has been put there by "legal" for users to check their balances and that the website has not been hacked.
Redditcoin asked for transaction history data as well:
I called the number again (about an hour later) - again, absolutely no waiting - I called again to ask about my transaction history. The same man answered, with the American accent (although sounded Japanese), who spoke impeccable English. He said that the transaction history is still unavailable because the courts still have to "polish" it (whatever that means). I said I needed it for taxation purposes. He replied by saying he will "check on this, and post an update on the website soon".
As for the balance data that can now be retrieved on mtgox.com, the site notes (emphasis mine):
This balance confirmation service is provided on this site only for the convenience of all users. Please be aware that confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure and note that the balance amounts shown on this site should also not be considered an acknowledgment by MtGox Co., Ltd. of the amount of any rehabilitation claims of users. Rehabilitation claims under a civil rehabilitation procedure become confirmed from a filing which is followed by an investigation procedure. The method for filing claims will be published on this site as soon as we will be in situation to announce it.
The MtGox API which used to list pending transactions has been removed today. In the past few weeks, this API had shown that the hundreds of thousands of BTC moving in the blockchain connected with MtGox wallets could still belong to Gox. Thread.
we are working on resuming service, can't say how soon it'll be
While the authenticity is still in question, if true this would be in line with all the rumors and hints we've seen up until now. March 15, 2014
The hundreds of thousands of coins moving in the blockchain that MtGox allegedly still own have been spotted doing something new: the outputs are now merging in new addresses of 2K BTC each. This was first spotted in this thread and later confirmed here. As usual, we have zero indications of what this means yet. -Mahnspeculates:
The only thing I can imagine myself is that whoever is doing the splitting decided 50 BTC was too little or would take too long and switched to bigger outputs per address.
New movement in the MtGox order book as reported by their still online API has been detected. Thread.
March 14th, 2014 There's a new update on mtgox.com concerning their Chapter 15 US filing. It contains no new information other than the confirmation of the news that appeared on March 11th. March 12th, 2014
MtGox US subsidiary assets have been temporarily frozen by US Judge. Story here.
"On February 7, 2014, all bitcoin withdrawals were halted by MtGox due to the theft or disappearance of hundreds of thousands of bitcoins owned by MtGox customers as well as MtGox itself. The cause of the theft or disappearance is the subject of intensive investigation by me and others -- as of the present time I believe it was caused or related to a defect or "bug" in the bitcoin software algorithm, which was exploited by one or more persons who had "hacked" the bitcoin network. On February 24, 2014, MtGox suspended all trading after internal investigations discovered a loss of 744,408 bitcoins presumably from this method of theft. These events caused among others MtGox to become insolvent and to file the Japan Proceeding."
Another week, another Mycelium feature description. This time one of our newest features: Message Signing!
Message Signing First, make sure that Expert Mode is enabled in Advanced Settings. Swipe to the left for a list of your addresses, select the address you wish to sign with, which will change the top bar to blue, click the dropdown menu, and select Sign Message. Type in the message you wish to sign, and press the Sign Message button. Your text will be signed, and you will get two options, Copy Signature to Clipboard and Share Text + Signature The first option copies just the signature into your clipboard. You can use this if you just need to submit the signature by itself to a text challenge screen, such as to register on #bitcoin-otc channel. The second option will share the text, address, and signature all bundled together in a format similar to PGP. For instance, in the example above, the shared result will look like this:
As for updates, we have released version 1.1.10 this past week, which added the following features:
message signing (go to Keys tab)
Hebrew, French, Korean, Polish translation
canonical S-values in signatures.
improved handing of exchange rates
added Kraken, Bitpay, Coinbase
new high-res launcher icons
Our developers (Jan and Andreas) are still working hard on Local Trader. We plan on getting the Testnet version out by Wednesday of this week, just in time for the Bitcoin Conference in Austin, TX. I'll be there, so feel free to grab me for a demo. The thing we're working on now is push notifications for the trader, which will alert you when you have a pending or accepted trade even while Mycelium is not running. I know some of you have asked for notifications for when you receive payments (because it's always great to hear the Ka-Ching! of incoming money ;D), and this will be the first step towards implementing that. Or rather will make adding that feature much easier.
LAST UPDATE: 8 JULY 2015 12:00 PM GMT CLAIMS ARE NOW OPENED AT: https://claims.mtgox.com NOTE: Progress is slow nowadays, so this current state of affairs sticky thread should be up to date. Deadline for claims extended: From announcement dated 6 July 2015: The period for filing bankruptcy claims was until May 29, 2015, but the bankruptcy trustee has been accepting filings of bankruptcy claims after the expiry of the said period. The bankruptcy trustee decided that the deadline for filing bankruptcy claims using the Online Method will be 12 noon on July 29, 2015 (Japan time). A note on recovering funds: From announcement dated 22 April 2015: Please access https://claims.mtgox.com and enter the username or e-mail address and password that is registered with the MTGOX Bitcoin exchange. After entering this information, please log in to the System after agreeing to certain terms and set a new password using the temporary authentication code which will be sent to the e-mail address that was originally registered with the MTGOX Bitcoin exchange. As the said temporary authentication code is only effective for 15 minutes, please set a new password immediately after receiving the code. Otherwise, it will be necessary to request another temporary authentication code.
Important dates: From announcement dated July 6th 2015 and July 24th 2014:
Commencement of the bankruptcy proceeding for TIBANNE, as a creditor thereof, with permission from the Tokyo District Court. In response, on January 30, 2015, the Tokyo District Court issued an order of commencement of the bankruptcy proceeding for TIBANNE.
The second creditors’ meeting of MtGox Co., Ltd. (“MtGox”) was held on November 26, 2014. In addition to the FAQs previously disclosed on this website, below are our answers mainly to questions, etc. that the creditors were particularly concerned about at the second creditors’ meeting.
Payward Japan K.K (Kraken) has been selected as the supporting company for the bankruptcy Proceedings concerning MtGox. How will Payward support MtGox from here on? Pursuant to its agreement, Payward’s support for the bankruptcy proceedings of MtGox will entail, among other things, (i) cooperation concerning the investigation of the bitcoins which are said to have been possibly lost; (ii) cooperation concerning the filing of claims and investigation related thereto; and (iii) cooperation concerning bankruptcy distributions (items (i) and (ii) will be provided without charge up to 500 hours in total, and item (iii) will be provided without charge). In addition, Payward will purchase MtGox’s equipments (formatted after deleting all the saved data and software).
On July 24, 2014, the Tokyo District Court 20th Civil Division issued an order to change the period for filing proofs of claims and the date for investigation of claims... (refer to top of this sticky for the dates)
On July 23, 2014, the first creditor's meeting was held. The second creditor's meeting will be held at Tokyo District Courtroom for Creditors' Meeting No.1 (5F, joint government building for the domestic, summary and district courts) at 13:30 on November 26, 2014.
Please find below our responses to frequently asked questions regarding creditors' meetings (to be held July 23, 2014). We will update this page as needed, and thus please check this webpage periodically.
Postcard from Office of Bankruptcy Trustee sent to MtGox victims starting from July 1st, which appears to be still being sent, as some people have been receiving the postcard a week later. The postcard content is similar to the May 21st announcement. The postcard cover contains a unique number that may or may not be significant so it is worth storing the postcard, just in case.
My Heir Wallet I decided I needed something slightly different than a paper wallet or a brain wallet. I am calling it an Heir Wallet. The idea is to have an offline wallet to store Bitcoins, with a private key that is defined by a hash of some answers that are commonly known by my heirs. My spouse and children should know the answers to all of the clues. Others will likely know the answers, if they combine efforts. Worst case, if they know most of the answers, a brute force attempt can be made to recover the bitcoins. My Heir Wallet can appear in plain sight in my house, in multiple locations, with little risk of someone stealing my wealth. (I still will protect it as I would my checkbook or credit cards in the traditional banking system, but it’s nice to know that my heirs will be able to access the bitcoins when I am gone.) For the benefit of this subreddit, I have created an illustrative example (fake), so you can see how this might work: FOR ILLUSTRATIVE PURPOSES ONLY To my survivors: I have stored some of my assets in the form of Bitcoin, which is a virtual currency. These instructions contains the information necessary to retrieve the bitcoins located at this address 14koNnJrrUWmDLPeAjVQYv2bA22szm63fM . To estimate the value of these bitcoins, you can view the current balance at https://blockchain.info/address/14koNnJrrUWmDLPeAjVQYv2bA22szm63fM , and you can see the current value of a single Bitcoin at https://blockchain.info/ticker or a number of other sites online. [These links are accurate as of March 2013.] To gain access to the above Bitcoin Address, you must possess the "Private Key". If you can answer the following questions, then you have access to the private key. The Private Key is a "hash" of a pass phrase, which is defined below. To determine the Private Key, go to https://www.bitaddress.org/ and use their Brain Wallet feature. Use the Algorithm SHA256(passphrase), with the passphrase that is defined using the clues below. [These instructions are accurate as of March 2013.] The Pass Phrase is 100 characters, made up of the answers to the ten questions listed below. Each answer is ten characters long. If the answer is longer than ten characters, truncate it at ten characters. If it is shorter than ten characters, then pad it with the following characters until it is ten characters long: *^^$!!$#^ Example: If the answer to a clue is “Apple”, then pad it with 5 extra characters, making the answer “Apple*^^$!”. Note that capitalization, punctuation, and spacing are all critically important. Once you know all of the answers, key in the passphrase into bitaddress.org's "Brain Wallet" feature, and the above Bitcoin Address should be displayed, along with the correct Private Key. Import that Private Key into a service that allows you to import it, and then you can spend the Bitcoins, exchange them for Dollars, or distribute them to others. Currently, several services allow you to import private keys, including Coinbase.com, blockchain.info, Mtgox.com, and various bitcoin clients. Here are the clues. Note that capitalization is important in all answers (as defined by normal rules of English), but I remind you in the first few clues.
What nickname did my college roommates call me? (capitalize the first letter)
What first name did we give our baby that was stillborn? (capitalize the first letter)
What middle name did we give our baby that was stillborn? (capitalize the first letter)
Someone from my childhood got extreme cases of poison ivy. What was his/her first name? (capitalize the first letter)
What company did I work at, for six years from high school through college? (Formal name)
Last name of my extremely tall, good friend who I went to high school with.
Last name of the friends that we go on cruises with (2000-2013).
College that I got my undergraduate degree from. (Just the first word; leave off University / College, etc.)
Street I grew up on (include “Rd.”, “Ave.”, “Cir.” Etc., and put a space between the street name and the “Rd.” part)
Name of the company that I started my professional career with, out of college, and worked at for 15 years. (2 words, dash between)
Remember, each answer is ten characters, so the total passphrase is 100 characters long. My wife and children all were able to pass this test (on paper) to answer these questions. My wallet was created offline, and the money resides in the derived Bitcoin Address, which is different from my sample, above). These instructions are in several places in my house and away from my house (and also in my email). I hope someone benefits from this. Any suggestions on how to make it better? Edit: fixed formatting of the carat.
The challenges and false ideas of bitcoin have become apparent since the fall of MtGox. A dialogue.
So scouring the vast number of posts/topics related to bitcoin/mtgox situation that has been developing over the past few weeks several things have become apparent. Many have some conflicting ideas about bitcoin that sometimes are actually antithetical to the bitcoin they hold near and dear. Some of the most naive or ill informed comments and opinions can come from obviously passionate individuals. I hope if this sparks an interest with you that you please challenge and engage. The jist of these ideas I have condensed to short phrases below: 1) Now that gox failed you want the Gov to come and save you? (this is said by bitcoin proponents and opponents alike) 2) Congrats, this is what you get without regulation! (again from both sides of the aisle) 3) Good that MtGox failed they sucked and we needed to weed out the bad, their customers were idiots for holding money on an exchange, you are retarded for not keeping it in cold storage either tattooed on the underside of a wolverines tongue, or tattooed under "mama Junes" clitoral hood! (I apologize for the visual and to any minors, if this is over your head disregard it or else ask your parents) 4) Actually this is good news! Fewer bitcoin are good for bitcoin since if makes them even more scarce! I become wealthier! Forget trying to find the lost private key to that giant stash of bitcoins, or coming to a miner consensus to release "lost bitcoins". I will attempt to address the faults with each of these ideas as I see/understand it applying to bitcoin, and please understand I am not nor do I hold myself out to be an expert in any of the fields that I touch on below. It is as much about getting information and a dialogue out there as it is trying to take it in. With regard to: 1)The events that have transpired over the past few weeks have produced very few pieces of credible information. Nobody really knows whats going on but it does seem that some amount of negligence, fraud or theft might have occurred. Bitcoin was not meant to replace or eliminate contract law, property rights, or due legal process. Bitcoin was only a free to use, free to participate, trust free system of value accounting. Thus, if a theft, breach in contractual obligation, or fraud occurs and BTC is involved then guess what, laws still apply whether or not that same law recognizes BTC as a currency or store of value. The law doesn't care if its BTC LTC or beanie babies, it's all encompassing. Therefore simply because we are trying to pursue a gov/political free monetary system and record keeping and as libertarian as it might be, it doesn't mean lawlessness. Fundamental laws and upholding them are just as important to bitcoin as the underlying protocol. 2)Regulation wouldn't have helped stop any of this. How was Madoff stopped? How was the housing crash and predatory lending oversight. How is the facked up incentivized risk taking by commercial banks being managed? How has the precious metal market manipulation been handled? Regulation doesn't resolve any of the problems. It just changes the framework within which the problems will happen, it doesn't prevent them. It simply gives those with power hungry and elitist attitude control over and bias within the market. This allows for favoritism and the situation is worsened by the fact that gov bodies/regulators and the investment banks etc are just a revolving door. Just look up the names and try to ignore the conflicts of interest. Lastly, basic laws in place adequately and efficiently deal with any and all problems that can arise when the shit hits the fan. There is no slowing the fan before shit gets flying toward the blades, is what pro-regulation types don't get. 3)This one has so many issues intertwined that I will outline them individually in more detail. With regard to "bad" service providers in the market place this will all be sorted out through lack of service or failures etc. in relation to other more successful/desirable providers etc. We all know the basic story here, not much to discuss but important to keep in mind that it is subjective and what might be ok for one individual might not be so for another. When people diss Mtgox I get where they are coming from but from my perspective they don't have much to stand on with their arguments. Mtgox had been around for a long long time and had faced ddos, hack, crashes, etc and through it all always came back and in cases even made their customers WHOLE! They even publicized wallet amounts to satisfy the community regarding their BTC holdings. Yes they were slow at certain things, and perhaps their coding wasn't to certain peoples tastes but it worked better with time. As most current exchanges they served certain geographic regions better than others given banking difficulties. Doing a paper analysis with pros and cons I think Mtgox was one of the better exchanges out there. It is only in recent hindsight (which every wise ass forgets is 20/20) and given very recent events that Mtgox actions seem to add up (perhaps even as far back as the hack days). Saying all along that you "knew that mtgox was going to go bust" is BS. Given the track record of all bitcoin services that have come and gone since inception leaves your guess about as good as a flip of a coin, and more likely based on a personal bias. With regard to blaming individuals for holding balances on mtgox (or any exchange) is quite low. If it were not for these same individuals (whether on mtgox or other exchanges) who take on counterparty risk to allow for actual utility of the BTC, price finding, and ecosystem development, bitcoin would not likely be in the same place nor headed down the same path. It likely wouldn't have garnered as much mainstream attention either. The cold-storage purists need to get their head out of their ass and realise that the world and ecosystem that bitcoin has to survive in and is headed toward is much the same as the current legacy system. Markets for exchange, investment, price discovery, storage, security etc etc all need to exist for bitcoin to do what it is meant to do, the only difference being the medium through which its done....BTC and the protocol. If we all played the cold storage game we would be nowhere fast. So please next time you preach the cold storage case take a minute to consider what it actually means. 4)This one is the scariest for me. The idea that scarcity is the be all and end all. Yes the built in scarcity of the protocol will inherently be a potentially positive thing in many regards but it could also become the thing that destroys bitcoin. If we get so worked up about the scarcity factor and lose sight of the actual intent of it then the pursuit of making it more scarce really becomes destructive. When I heard the theory of Mtgox having lost the keys to the cold wallets it got me thinking. If the keys can be discovered/pieced together(credit to others for this idea) or miners agreeing to distribute the coins (again credit to others for this idea), then the coins could be distributed to the rightful owners. I was shocked to find that so many bitcoin enthusiasts thought this was a bad idea. Some sighted is as going against the core protocol of bitcoin, ie having the rules set from the get go and changing them via the miners would be setting a precedent etc etc ( I argue you don't understand the fundamental difference in bitcoin and its intent). Others said that it was a good thing that coins are lost due to the scarcity argument... If we start playing this game it creates an incentive to destroy instead of produce. If the incentive is to make the coins more and more scarce (yes I'm aware of the divisibility..) then I might be more inclined to destroy my neighbors wallet, burn their house down or write code/viruses to corrupt wallets or exchanges etc... It cannot be held that destroying your competitors/neighbors means of production to gain value be more beneficial then actually using such factors to create value. We can't allow the idea of scarcity and the false pretense of the bitcoin protocol sanctity take precedence and willfully allow rightful owners of coins or assets to be lost forever when in fact they could be just as well released or verified without altering the true underlying spirit of the protocol. There is no moral hazard created in recognizing property rights and returning it to rightful owners. In the absence of this bitcoin will surely fail and I would bet the majority of individuals would agree with me. The goal and intention of bitcoin was to give economic freedom and political separation to the medium of exchange and store of value. Central to this is upholding property rights. If the blockchain can be used to tie all sorts of assets to ownership and transfer of that ownership then how can we also let that ownership simply disappear due to human error in the application of technology. Believe me, LOTS of that will happen as it becomes more mainstream and even once it's matured. We all want this to take off and become something bigger but that will not happen if we treat each other like adversaries. We need to keep open minds and open dialogue and abstain from becoming dogmatic in our understanding. Becoming attached to being right or our perspective will always put us behind the curve. Our understandings will always be changing as they did when we all met and came to appreciate the elegance bitcoin. We can't be afraid to think differently tomorrow. Ps thanks for taking the time to read, please note I'm not a professional writer nor do I actually like writing. edit: formatting
Australian software enthusiast Craig Steven Wright, also known as CSW, born in October of 1970, is notable for making an unsubstantiated claim to be Satoshi Nakamoto in May of 2016.
It is known that Craig Wright is definitely a software enthusiast. He volunteered as an unpaid computer science lecturer at Charles Sturt University and paid to complete various technical certification tests: a GIAC certification in Compliance and Audits, a GSE Malware certification, and a GSECompliance certification. Craig has claimed to have a doctorate in computer science, although when contacted Charles Sturt University made a statement to the contrary. CSU further went on to contradict his characterization of his employment there, clarifying that the position he had previously referred to was an unpaid volunteer role. Craig has often referred to himself as a doctor in software contexts, but his only doctorate claim that is not questioned is that of a theological doctorate with a thesis relating to creationism. Over the years Craig Wright has been mentioned in relationship to various marginal activities. Craig helped create a casino in 1999. In 2004 he was convicted of contempt of court and sentenced to 28 days in jail. Craig maintained his innocence, but the charges were held up on two separate appeals.
In recent years Craig has been mentioned in relation to a questionable deal in which his company claimed $54 million in tax rebates from the Australian government that were earmarked to reward tech industry investment in Australia. The circumstances around that substantial rebate have been called into question, by the Australian authorities and others. There remains a distinct lack of information as to whether the rebates were warranted. Craig Wright claimed that his claimed government monies were to be used in relation to a Bitcoin related supercomputer project his company Cloudcroft was creating, in partnership with the well known computing firm SGI. His company circulated a signed letter on SGI letterhead declaring the partnership. But when asked to confirm the partnership directly, the SGI Chief Operating Officer denied any involvement with the project. He went further, stating that SGI had never even had any contact with Cloudcroft. No proof of the Cloudcroft supercomputer's existence was ever published. In December of 2015, Craig Wright's house was raided by the Sydney police in a tax investigation relating to tax rebates. Part of the claims of this tax rebate related to Bitcoin: it was claimed by Craig that he had a large amount of Bitcoin in the makeup of his investments, but no proof of these assertions was ever made available. Craig was in fact listed as a MTGox customer on leaked customer reports published in 2014, but only purchasing Bitcoin and after a large media blitz where buying Bitcoin was becoming increasingly well-known. By the leak's numbers Craig spent about five thousand dollars to acquire fifty coins, losing fifteen to the MTGox collapse. This raised a question, why would someone holding over a million bitcoins worth hundreds of millions of dollars spend thousands of dollars over a long stretch of time to buy fifty more? In December of 2015, around the same time as the heated tax investigation into the veracity of Craig's Bitcoin investment and holding claims, unsourced rumors started to suggest that Craig is Satoshi. If he were Satoshi, it would have given great credence to his tax related claims of large Bitcoin related holdings and investment. Some of these rumors find their way into public stories published by news outlets, but no credible evidence is found, and some evidence that is produced seems to have been fabricated to mislead people into misinterpretation.
It was revealed by Andrew O'Hagan in the London Review of Books that Craig had been working with some business associates on the assumption of his secret Satoshi identity. Craig privately claimed, but never showed proof, to many people that he was Satoshi, and had arranged a high stakes business relationship to create a large series of Bitcoin related patents in a very large multimillion dollar deal. As an advance on the anticipated profits, Craig was offered large sums of money, which he spent lavishly on ostentatious cars and clothing, to the chagrin of his business partners. After 2015, the story died down due to the disproven evidence and dead-end leads. Craig and his partners, with a professional PR company, began to contact news outlets about publishing new evidence to his Satoshi identity, promising them a valuable story on very specific terms. Craig demanded that all involved sign non disclosure agreements and then go to meet him in a rented conference room to validate his claim. He demanded that only a computer produced by his assistant is used to cryptographically sign his proof, a computer that the verifiers are not allowed to keep for an inspection. Craig further demanded that he be allowed to add a modifier of his initials to a signing statement. The signing tool used was the Electrum Bitcoin wallet, but Electrum developers reported no UK IP downloaded the verifying software signature file that would confirm the software's legitimacy. The entire setup of these in person proof sessions was created in a suspect way, leading experts to believe that an in-person proof could easily have been stage managed and faked. The reason stated for the careful controls was to avoid early release of the proof, however this could have been done in a remote way using a method of cryptography where Gavin could have been able to receive a personal proof of a signature that he would still be unable to use to publicly prove to the world was real. It's possible that Gavin was unaware of this cryptographic method, but then the lack of knowledge would imply that Craig and everyone involved in the proving sessions were not very qualified in cryptography related subjects. Gavin has previously stated that he is not a cryptography expert. As part of his proof, Craig also reintroduced some of the fabricated evidence that surfaced during the December rumors. To counter the critics who pointed out the uselessness of the evidence, he produced and quoted verbatim a supposedly third party report substantiating the evidence and personally and separately attacking the people, mainly Greg Maxwell, who called into question the veracity of the evidence. The report in question was sourced from a paid technical evidence consulting agency located in the same city as Craig. This agency, with no known connection or published history with Bitcoin, addressed the unrelated Bitcoin Core project quite specifically and negatively, with views consistent with Craig's previously stated views. The writing style of the report, Craig's ability to repeat it verbatim, and the geological proximity and nature of the firm publishing the report suggested his close involvement with its creation. Although he printed and passed around the report to reporters, Craig did not disclose any relationship with the formation of the report. In May of 2016 Craig Wright lifted the embargo on the story and declared himself to be Satoshi, with a lengthy blog post about how he could cryptographically sign a statement to prove he is Satoshi. At the top of his post he added a statement to sign stating that he is Satoshi, encoded in an unreadable machine format, as would be fed into the signing process he then went on to describe. At the end of the post describing how to derive a cryptographic signature from a statement, he quoted a cryptographic signature which could be run through the described signature verification to show that it is Satoshi's signature. However the signature at the end of the post did not sign the statement at the beginning of the post. Instead it was a well known and completely unrelated old signature from Satoshi. This fact left unstated by Craig was soon discovered by fact-checkers who referenced the signature against Satoshi's previously known signatures. Given the missing evidence and suspicious circumstances and history, his claim was widely called a scam, although Jon Matonis and Gavin Andresen maintained their positions, despite the evidence of malfeasance. Gavin did express surprise at the lack of public evidence, implying that he was previously led to believe that the evidence would be public and inspectable beyond the confines of the fixed private demonstration. Even so, when pressed Gavin demurred from backing off his claim. Gavin also does not mention any separate evidence that he said earlier he would demand, such as private correspondence that only he and Satoshi would have been privy to. One point of skepticism mentioned by evaluators of Craig Wright's published works is that there are no commonalities found between his writing style and that of Satoshi Nakamoto's published works. Even trivial style choices like choosing double spaces after every period, a signature of Satoshi's, was absent from Craig Wright's writings. Suspiciously, after this point was widely mentioned, Craig Wright started going out of his way to add multiple spaces after his periods in his HTML blog posts. HTML by default does not visually display redundant white-space, but Craig added special default override code to force its display. After the ensuing the adverse reactions to his claim, Craig Wright contacted the press and put out statements to the effect that he would produce compelling public evidence, as previously was tacitly promised. He claimed to have evidence that would put to rest any remaining doubt with an extraordinary new proof. He asks Gavin and BBC reporters to send funds to Satoshi's known addresses, so that he can send it back. However as the time ticks down on his promise, he backs out, with a nonsensical and wandering statement about being worried to provide actual proof. Gavin and the BBC's money was never returned to them.
MtDox Co. Ltd. had certain old-format wallets that had been used in the past and thought they no longer held bitcoin but had actually been reused. WizSec said the stolen Mt Gox bitcoins were traced to MtGox, where they were believed to have been sold and laundered. Other stolen Bitcoins are said to have been laundered through MtDox and other exchanges such as Bitfinex, Bitstamp and Silk Road ... The shared keypool of the copied file led to address re-use, which meant that the company appeared to be oblivious to the theft, with the Mt. Gox systems interpreting the transfers as deposits apparently being moved to more secure addresses. Whenever the wallets emptied, the Mt Gox system’s interpretation of the theft as deposits resulted in an additional 40,000 extra bitcoins being credited ... Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. With Bitcoin, you can MtGox Cold Wallet Monitor This script monitor's MtGox Exchange's Cold Wallet Movements and alerts if there is any Bitcoin or Bitcoin Cash moved from those addresses. Basically this script keeps track of all MtGox Exchange's cold wallet addresses. It is believed that MtGox directors have the access this addresses and they are constantly moving ... Launched in 2011, Mt. Gox was the world’s largest bitcoin exchange, handling up to 70% of bitcoin trades, until its spectacular demise in 2014.
New Bitcoin Record, Mt Gox Delays, China Mining Madness & IMF Boosting Global Economy
SUBSCRIBE ! for videos on finance, making money, how to invest and creative ways to acquire passive income ! After 10+ years of investing and saving, I'm here to pass the knowledge onto you ! Ways ... This video is unavailable. Watch Queue Queue. Watch Queue Queue Queue In this video Jason talks about how to get money into Dwolla. This is the first step in buying bitcoins. What is BitCoin: http://youtu.be/Um63OQz3bjo Dwolla:... Hello everyone in this video I talk about how we are just a few days away for when the claims period of MtGox's Bankruptcy will end. Go clam your coins now. ... My Second Channel: https://www.youtube.com/channel/UCvXjP6h0_4CSBPVgHqfO-UA ----- Supp...