H/t reader kevin a.
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If you’ve invested in the cryptocurrency, Ethereum, you may want to check that your funds are safe.
More than £200 million ($280 million) of the virtual currency, ether, has been lost after a developer accidentally deleted a vital part of the code while trying to fix a flaw to stop hackers.
Experts describe the error as a ‘suicide’, and predict that this loss is roughly 20 per cent of the entire Ethereum network.
A top Deutsche Bank strategist speculates that we may be looking at the “start of the end of fiat money”.
Bitcoin was originally developed as a peer-to-peer electronic cash system that would free its users from the bondage of state-controlled currency and the erosion of wealth due to inflation. Despite its phenomenal growth, most mainstream financial analysts remain skeptical that it will ever achieve mainstream adoption – at least as a currency used for everyday transactions.
However, as Business Insider reports, Deutsche Bank strategist Jim Reid envisions that the current fiat monetary system could begin to collapse within the next decade, creating a climate that would encourage the rise of an alternative currency system.
According to online records, e-commerce giant Amazon, often seen as the “white whale of bitcoin payments, recently registered three cryptocurrency-related domain names: “amazoncryptocurrency.com,” “amazoncryptocurrencies.com,” and “amazonethereum.com.” The move was first reported by domain industry news website DomainNameWire.
Whois records link the domains to a subsidiary of Amazon.com, Amazon Technologies, which has in the past been linked to patent filings. At press time, all three domains are a dead end, but a domain the e-commerce giant registered in 2013 – amazonbitocoin.com – redirects to its main page, Amazon.com.
As technology stocks and securitized mortgages have demonstrated all too recently, just because a bubble pops doesn’t mean it’s the end of the market. Hell, it doesn’t even necessarily preclude that another bubble won’t emerge years later.
Wall Street analysts trying to figure out if JP Morgan CEO Jamie Dimon and Bridgewater Associates’ Ray Dalio are right about bitcoin – i.e. that digital currencies are frauds doomed to fail – should consider this phenomenon as they try to game out different scenarios for the future of the digital-currency market, said Ethereum co-founder Joe Lubin.
When asked by Quartz about his thoughts on whether digital currencies are in a bubble, Lubin responded with an unequivocal yes.
“Of course it’s a bubble. Hopefully it’s one in a series of increasingly larger bubbles,” Lubin said. “These bubbles bring attention, they bring value into the ecosystem. That value is recognized by software developers and business developers, and they create fundamental value and projects that grow the new architecture.”
“It is the biggest scam ever, such a huge gigantic scam that’s going to blow up in so many people’s faces. It’s far worse than anything I was ever doing,” explained Jordan Belfort concerning ICOs (initial coin offerings) of cryptocurrencies. The former penny-stock broker portrayed by Leonardo DiCaprio in The Wolf of Wall Street should know: He spent 22 months in the hoosegow for securities fraud and money-laundering.
Just about anyone can call themselves a startup, make promises of future products or services, and sell digital tokens to raise funds. These digital tokens become tradable cryptocurrencies. Buyers do not receive any ownership of the startup, which is what traditional startup investors get. Instead they’re usually promised something in the future, such as free access to the service once available. It doesn’t really matter what the promises are because people buy the tokens to get rich, hoping that they’re getting into the hottest cryptocurrency on the ground floor. ICOs are not regulated and anything goes.
A New World Order.
(Click on images to enlarge.
We reported back in November 2016 – Cashless World: 1 out of 3 People Never Use Cash – fewer and fewer people understand the importance of using cash to protect themselves from an overarching government warlord. At the time, China’s use of digitized currency was growing at about 40% per annum. This means millions of people each year freely hand over their cash and opt to use their cell phone, online currency transfers or a plastic debit/credit card to make 100% of their purchases. We see this as nothing short of happily going into the gulag of digital enslavement.
Today we learned China is taking another step toward being a cashless society. Not just any cashless society, but the largest populated nation on the planet. Please keep in mind this announcement is coming on the heels of China’s closest ally, Russia, announcing she would be issuing a crypto-ruble – Which is a digitized currency as well.
Once these two nations go cashless that will be a huge blow to hard currency in circulation around the world.
Russian President Vladimir Putin has officially stated that Russia will issue its own ‘CryptoRuble’ at a closed door meeting in Moscow, according to local news sources. The news broke through Minister of Communications Nikolay Nikiforov.
According to the official, the state issued cryptocurrency cannot be mined and will be issued and controlled and maintained only by the authorities. The CryptoRubles can be exchanged for regular Rubles at any time, though if the holder is unable to explain where the CryptoRubles came from, a 13 percent tax will be levied. The same tax will be applied to any earned difference between the price of the purchase of the token and the price of the sale. Nikiforov said:
Somewhere in the mountains near Switzerland’s Lake Lucerne lies a hidden underground vault containing a vast fortune.
It’s no ordinary vault, according to Quartz. Built inside a decommissioned Swiss military bunker dug into a granite mountain, it’s precise location is a closely guarded secret, and access is limited by myriad security precautions.
But instead of gold bars, the bunker contains hard drives on which customers’ bitcoins are being kept in what’s call “cold storage” – i.e. the owners’ private keys are protected by an air-gapped hard drive. The vault is one of many operated by Xapo, an early bitcoin company known for its cold storage wallet products and a debit card that pays for transactions in digital currencies.
The company won’t disclose how much bitcoin is stored in the vault, but one employee who spoke with Quartz said he sometimes takes customers with millions of dollars in bitcoin on tours of the vaults where their fortune is stored. Xapo was founded by Argentinian entrepreneur and current CEO Wences Casares, whom Quartz describes as “patient zero” of bitcoin among Silicon Valley’s elite. Cesares reportedly gave Bill Gates and Reed Hoffman their first bitcoins.
H/t reader kevin a.
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Former Wall Street giant turned billionaire private investor Mike Novogratz would not be surprised to see bitcoin price hitting above $10,000 in early 2018.
Michael Novogratz, a retired Wall Street investor and noted cryptocurrency advocate who is starting a $500 million crypto hedge fund – with $150 million of his own money – was speaking to CNBC when he revealed he was an early investor in ‘bitcoin, ethereum and a lot of different ICOs.”
Asked to put an estimate on bitcoin’s value in the coming months and years, Novogratz prefaced his take by stating “the herd [is] coming”, referencing several institutional investors getting into bitcoin – a decentralized cryptocurrency traditionally popular with the everyday retail investor.
H/t reader kevin a.
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At a time when the SEC is still debating whether to permit bitcoin-based ETFs in the US, Europe has been one step ahead thanks to the Swedish-based XBT Exchange Traded Notes (from provider CoinShares). And today, remaining one step ahead of the US, the same team behind the XBT ETN has launched the first ever ETN for Ether, the native token of the Ethereum platform, which will be listed on the Nasdaq Stockholm.
The two ETNs, COINETH:SS and COINETHE:SS are denominated in SEK and EUR respectively, and similar to the group’s bitcoin ETNs, the ether products are structured to track the price of ether, as determined by an index rate comprising the average of the 3 most liquid ether exchanges, daily. The factsheet for the ETN creator, CoinShares, can be found here.