Turnbull government to compel social media giants to hand over encrypted messages – The New Daily

Social media giants will be compelled to pass encrypted messages on to Australiansecurity agencies under new laws introduced by the Turnbull government on Friday.

Prime Minister Malcolm Turnbull said the new laws were needed to target terrorists, paedophile rings and organised crime gangs.

Similar laws already affected telco companies, hesaid.

We have the right now to get the cooperation from the telephone companies. What we dont have is the legal right to get that sort of cooperation from the internet companies like Facebook, or WhatsApp, or Telegram and so forth, and Google, Mr Turnbulltold Channel Sevens Sunrise program.

He said the legal system needed to catch up with technological changes.

We cannot allow the internet to be used as a place for terrorists and child molesters and people who peddle child pornography and drug traffickers to hide in the dark.

Those dark places online must be illuminated by the law.

Im not talking about giving intelligence agencies backdoors or anything underhand. This is simply saying the rule of law must prevail online as it does offline.

Attorney-General George Brandis told ABC Radio hed been assured it was feasible to seize encrypted messages from WhatsApp or Signal.

What this does is merely contemporise for the modern era what is a well-established legal principle, and that is persons, including companies, can be subject to an obligation to assist law enforcement in resolving crimes and that principle shouldnt depend upon the nature of the technology, Senator Brandis said.

What we are proposing to do, if we cant get the voluntary cooperation that we are seeking, is to extend the existing law that says to individuals, citizens and to companies, in certain circumstances you have an obligation to assist law enforcement if its within your power to do so.

The laws that exist at the moment predate the development of encryption, all we are seeking to do is to apply an existing principle to a new technology.

Senator Brandis said he would introduce the laws between now and the end of the year.

He told Sky News the proposed laws had nothing to do with mass surveillance and most Australians would not be impacted.

It is not mass surveillance and its not going to make their everyday dealings in social media insecure, Senator Brandis said.

The fact is that information security is a very high value. It is an economic benefit. It matters to people and the Government is determined to protect it.

But having said that, there is also an important value to be served in protecting national security.

David Glance, Director of the University of Western Australia Centre for Software Practice, said it was not knownhow the proposed laws would take effect.

Although Brandis referred to the UKs Investigatory Powers Act, the UK Government hasnt actually made public how dealing with encrypted messages would work, Dr Glance toldThe New Daily.

There is obviously the debate about whether this will really help them in any event Plus, they are [already] able to hack peoples devices, get metadata, et cetera. So the question is why isnt that enough?

Dr Glance said encrypted messages could only be decoded if the companies involved weakened their encryptions and stored user keys.

He said people had reason to be concerned about what it could mean for them.

Not necessarily from the government but from criminals and hackers who will exploit weakened security to snoop, steal intellectual property, identities and other things.

Obviously there is a contradiction in their attempts to increase cybersecurity against nation state attacks and at the same time, weakening encryption to allow them to access anyones communications. They cant have it both ways.

Anthony Albanese told Channel NineLabor would consider the legislation.

The New Dailyhas contacted Greens spokesperson for communications Senator Scott Ludlam for comment.

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Scality Launches Zenko, Open Source Software To Assure Data Control In A Multi-Cloud World – PR Newswire UK (press release)

Zenko provides a unified interface based on a proven implementation of the Amazon S3 API across clouds. This allows any cloud to be addressed with the same API and access layer, while storing information in their respective native format. For example, any Amazon S3-compliant application can now support Azure Blob Storage without any application modification. Scality's vision for Zenko is to add data management controls to protect vital business assets, and metadata search to quickly subset large datasets based on simple business descriptors.

"We believe that everyone should be in control of their data," said Giorgio Regni, CTO at Scality. "Our vision for Zenko is simplebring control and freedom to the developer to unleash a new generation of multi-cloud applications. We welcome anyone who wants to participate and contribute to this vision."

"With Zenko, Scality makes it even easier for enterprises of all sizes to quickly and cost-effectively deploy thousands of apps within the Microsoft Azure Cloud and leverage its many advanced services," said Jurgen Willis, Head of Product for Azure Object Storage at Microsoft Corp. "Data stored with Zenko is stored in Azure Blob Storage native format, so it can easily be processed in the Azure Cloud for maximum scalability."

Zenko builds on the success of the company's Scality S3 Server, the open-source implementation of the Amazon S3 API, which has experienced more than 600,000 DockerHub pulls since it was introduced in June 2016. Scality is releasing this new code to the open source community under an Apache 2.0 license, so that any developer can use and extend Zenko in their development.

Zenko Multi-Cloud Data Controller expands the Scality S3 Server, and includes:

Application developers looking for design efficiency and rapid implementation will appreciate the productivity benefits of using Zenko. Today, applications must be rewritten to support each cloud, which reduces productivity and makes the use of multiple clouds expensive. With Zenko, applications are built once and deployed across any cloud service.

"Cityzen Data provides a data management platform for collecting, storing, and delivering value from all kinds of sensor data to help customers accelerate progress from sensors to services, primarily for health, sport, wellness, and scientific applications," said Mathias Herberts, co-founder and CTO at Cityzen Data."Scality provides our backend storage for this and gives us a single interface for developers to code within any cloud on a common API set.With Scality, we can write an application once and deploy anywhere on any cloud."

For more information on the Scality Zenko Multi-Cloud Data Controller and to download it for free, visit http://www.zenko.io.

Register for the Zenko webinar at: http://www.zenko.io/webinar.

About ScalityScality, a world leader in object and cloud storage, develops cost-effective Software Defined Storage: the RING, which serves over 500 million end-users worldwide with over 800 billion objects in production; and the open-source Scality Zenko. Scality RING software deploys on any industry-standard x86 server, uniquely delivering performance, 100% availability and data durability, while integrating easily in the datacenter thanks to its native support for directory integration, traditional file applications and over 45 certified applications. Scality's complete solutions excel at serving the specific storage needs of Global 2000 Enterprise, Media and Entertainment, Government and Cloud Provider customers while delivering up to 90% reduction in TCO versus legacy storage. A global company, Scality is headquartered in San Francisco.

Follow us on Twitter @scality and visit us at http://www.scality.com to learn more.

Press ContactJacqueline Velasco Lumina Communications for Scality (408) 680-0564 scality@luminapr.com

Logo: http://mma.prnewswire.com/media/519854/Scality_Logo.jpg

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Mouser Latest Bluetooth 5 SoCs deliver superior RF performance and enhanced cryptography acceleration (Silicon … – Electropages (blog)

Mouser now stocks the EFR32BG12 and EFR32BG13 Blue Gecko SoCs from Silicon Labs. Part of the Wireless Gecko portfolio, these Bluetooth low energy SoCs deliver superior RF performance, enhanced cryptography acceleration, larger memory options, on-chip capacitive touch control, and additional low-power peripherals and sensor interfaces.

Their SoCs integrate a high-performance 32-bit 40MHz ARM Cortex-M4 core with a 2.4GHz and sub-1GHz radio transceiver. The devices offer more memory than previous generations of Blue Gecko devices, with EFR32BG12 devices offering 1Mbyte of flash memory and 256kbytes of RAM, while the EFR32BG13 devices offer 512kbytes of flash memory and 64kbytes of RAM. This significant memory expansion makes it easier to develop complex, feature-rich IoT applications supporting multiple protocol stacks, real-time operating systems such as Micrium OS, backup images for devices and OTA updates for field upgrades to extend the life of IoT products.

The companys Blue Gecko SoCs are ideal for enabling energy-friendly Bluetooth 5 networking for IoT devices, wellness products, home and building automation, and smart metering.

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What the Fuck Is Julian Assange Doing? – Gizmodo

Attempting to figure out whats going on in Julian Assanges head is a daily struggle. After moving into the Ecuadorean embassy in London seven years ago to avoid extradition to Sweden on since-dropped sexual assault allegations, the 46-year-old has remained holed up there with Twitter as his main means of communication. From the embassys confines, hes kept himself busy leaking a slew of hacked DNC emails,CIA exploits,and generally inserting himself into world events in which he plays no part. Now, it looks like Assange is doubling down on his attempt to join the Trump clan.

A few hours after Donald Trump Jr. tweeted out an absurdly incriminating email chain in an apparent attempt to pre-empt a New York Times story about those emails, Assange tweeted this:

Todays humble brag follows a slightly more veiled attempt at currying favor with the Trump administration that occurred earlier in the week. On Sunday, the WikiLeaks Twitter account replied to a Trump tweet and suggested the president name Julian Assange as head of an impenetrable Cyber Security unit the president claimed he discussed forming with Russian President Vladimir Putin. Aside from the fact that Assange is not an American citizen, this idea seems pretty ludicrous in light of the fact that Trumps Justice Department is reportedly considering bringing criminal charges against Assange and WikiLeaks for releasing classified government information. Even still, WikiLeaksand probably Assange himself, whos often the operator of the accounttweeted:

This is also really weird.

But lets get back to todays tweet. On one hand, Assange seems to be implying that he knew about the Times scoop well before the paper published its very damning story. On the other hand, Sundays tweet implies that Assange is begging Trump Jr. to bring him and, presumably, WikiLeaks into the presidents inner sanctum, a disgustingly powerful collection of President Trumps allies and confidants. What an odd thing for Assange, a self-described information activist who claims he has dedicated his life to exposing the truth, to do. What strange allies hed find in Donald Trump and his closest aides, a group of people who simply cant stop lying about issues central to the worlds most prominent democracy. What a weird coda for Assanges already controversial career.

Then again, if youve paid much attention to Assange and his curious character in recent years, these attempts to cozy up to Trump make total sense. Assange, you might say, loves him some anarchy. And as Risk, the new documentary about WikiLeaks and its founder, paints in painful detail, Assange is obsessed with power. He wants to be close to those who have it, and he wants to stockpile it for himself, however hes able to do that. Theres a scene in Risk that shows Assange considering how his organization could influence the 2016 presidential election. It appears that the then-accused rapist (the charges were subsequently dropped) was literally looking for ways to tamper with the democratic process, not necessarily because he favored one candidate over the other but because he could. Eventually, by publishing a slew of hacked emails from the Democratic National Committee during the 2016 presidential campaign, Assange did.

Where does one go from there? According to Assanges recent behavior, you try to advise the leaders who you helped tilt the election towards. It remains unclear whether the leaked DNC emails that WikiLeaks released came from the Russian government. Assange insists they didnt, although he also refuses to reveal his sources.

At this point in time, though, its safe to assume that this Assange character isnt exactly trustworthy. Is he a sociopath? Thats for the psychologists to decide. Is he a lackey for seemingly authoritarian regimes? Thats for history to determine. Is he a twerp? He sure is.

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What the Fuck Is Julian Assange Doing? - Gizmodo

WikiLeaks founder Julian Assange: I told Donald Trump Jr. to release emails – USA TODAY

Donald Trump Jr. released emails suggesting 'incriminating information" about his father's Democratic campaign rival, Hillary Clinton. USA TODAY

WikiLeaks founder Julian Assange on Tuesday claimed that Donald Trump Jr. releasing his own emails was the result of a conversation they had.

Assange said on Twitter that he contacted Trump Jr. to make the case that he should release theemails that led up to the president's oldest son meeting with a Russian lawyer, and that it should be done via WikiLeaks.

Two hours later, Trump Jr. did it himself, Assange said.

In a reply to one of his Twitter followers, Assange said he told Trump Jr. that his "enemies" had the documents and would "milk isolated phrases for weeks or months" that would have their own "context" or "spin."

It was better to be transparent, Assangesaid.

Still, Assange disagreed with how Trump Jr. revealed the emails. He said it would have been "safer" for the oldest son of President Trump to publish the emails with WikiLeaks so it would have an "anonymous source."

"By publishing it himself it is easier to submit as evidence," Assange said.

He ended his statement by saying that "even the innocent need Wikileaks."

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Donald Trump Jr. reveals emails promising sensitive information from Russia to help campaign

Congressional Republicans deflect, dodge and downplay Donald Trump Jr.'s meeting with Russian attorney

Read Donald Trump Jr.'s emails seeking sensitive information about Hillary Clinton from Russia

Timeline: Donald Trump Jr.'s interactions with Kremlin-linked lawyer

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REcoin is a new Ethereum-based cryptocurrency

Ethereum cryptocurrency code is used, which means the following options:

The technology of blockchain proved itself as perhaps the safest way of keeping records of transactions performed within a certain society, each member of which owns a copy of the database distributed among members of the given society.

Blockchain - a chain built from the formed blocks with records of all transactions. A copy of the Blockchain chain or its part is simultaneously stored on multiple computers and synchronized according to the formal rules for constructing the chain of blocks. The information in the blocks is not encrypted and is available in clear form, but is protected from cryptographic changes through hash chains. Thus, the Blockchain database is distributed (decentralized) and cryptographically protected (https://en.m.wikipedia.org/wiki/Blockchain).

The possibility of mining, which gives the use of the methodology of protection against false data and fraud PoW, is by far the most widespread and reliable crypto currency in the environment.

A proof of work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated (https://en.bitcoin.it/wiki/Proof_of_work).

The minimum unit is 10^-4, 0,0001 RCN.

The conclusion of the block will occur every 20.5s (Similar to the Ethereum software environment, https://bitinfocharts.com/ru/ethereum/ ). The block volume limit is 12 KBytes.

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REcoin is a new Ethereum-based cryptocurrency

How Exactly Do You Get Rich of the Hot New Cryptocurrency? – Gizmodo

With the meteoric rise in popularity of Ethereum, cryptocurrencies and blockchains are back in the news again. Graphics card prices have soared with the promise that those who have the computers and know-how to do some serious mining can take home huge sums in a Bitcoin-like gold rush to snatch up as much virtual currency as possible. But how easy is it to make your fortune in cryptocurrency? And is it worth your while getting started?

For the uninitiated, mining for currencies like Bitcoin and Ether means devoting a huge amount of computer processing power to doing accounting sums for the platforms behind them, helping to verify the accuracy of the public blockchain ledgers.

Youre essentially getting rewarded for keeping the books for these platforms, which weve explained in more detail here, and the rise of cryptocurrencies like Bitcoin and others has led to a flood of amateur enthusiasts jumping into the mining businessthe idea of having your computer whirring away making you free money sounds almost too good to be true.

And in reality, it almost isyou can get rich from cryptocurrencies, but you need to put in plenty of work, and have luck on your side. Youre more likely to get a windfall due to market pressures than the quality of your mining rig, which is why its only worth a shot for the most committed and the most adventurous.

Mining for cryptocoin requires some free software tools and a dedicated rig. Turn the clock back several years and you could get away with a powerful home PC and make a few bucks. These days you can waste a weekend and a months wages on building a machine with four graphics cards purring away in a row and still not make a profit.

GPUs are now established as the mining processors of choice in most situationsgraphics cards are even built for and marketed towards miners nowbasically because theyre better at doing lots of laborious, repetitive tasks, whereas CPUs are better suited to switching between many tasks quickly.

The trouble is, the serious players have got whole farms of these computers, and unless youve got a warehouse and some life savings to spare, youre going to be lagging a long way behind. Youre up against huge foreign operations running off cheap electricity and hardware bought wholesale.

Even if you do get yourself a rig set up and find a currency with a bit of a profit margin, youre still putting yourself at the whims of the cryptocurrency marketsmining can start or stop becoming profitably depending on a currencys current value.

There are several profit calculators on the web that will tell you how much computing power and electricity you need to make a certain amount of cash, so you can see exactly how much (or more likely, how little) you could make. Take Bitcoin, for example, which is now just about impossible to mine profitably for average users at homeyoud need thousands of GPUs running before youd get close to getting more back in Bitcoin than youd be paying for electricity.

You can fork out thousands of dollars on specialized kit, if you want to, but even then youre only going to be raking in a handful of dollars a day with Bitcoin. That of course can go up or down as the currency value fluctuates, and whats profitable one day might not be the next if your chosen cryptocurrency dips in value, or gets some bad media coveragethats where the slice of luck we mentioned earlier comes in.

Other options, like Feathercoin and Ether, have a better profit potential than Bitcoin right now, with the caveats weve already mentioned: If youre serious about your mining then you need to keep a very close eye on the market trends, because the situation can change on a weekly or even daily basis. A single Litecoin, another cryptocurrency, has swung from costing you between $10 and $55 this year alone.

For instance, a huge $64m Ether heist carried out last year was severe enough to cause a fork in the Ethereum platform it runs on top of, and a halving in price of Ether itselfif youve got a powerful, expensive, cryptocurrency mining operation going on in your basement then thats a serious hit on your profits through factors completely out of your control. Sure, a swing the other way can make you relatively rich, but its a risk, and the upward trend wont necessarily continue.

Many modern-day miners join a mining pool, combining resources with other users and getting a share of the profits, but the same risks remain. Fork out a few thousand on a mining rig, take the time to study the market trends, go through the process of setting up the programs, join up with a mining pool, and yes you canif the prices stay buoyant and youve picked your cryptocurrency wiselymake a few thousand dollars a year. Whether or not its worth the risk and investment is up to you.

And if your investment isnt already precarious enough, remember the scene is constantly changing: In the near future Ethereum is set to switch from its existing Proof of Work (PoW) system for extending the blockchain to a new Proof of State (PoS) system which is easier to scale and less energy intensive.

Without going too far into the technical details, it essentially makes the mining process more like earning interest on money youve already got: Racks of graphics cards wont be able to generate wealth as they did in the past, which is bad news for miners looking for a profit even if its good news for your electricity bill. Instead, earning money will rely on staking (investing) rather than mining.

In other words, if youre already halfway through building your Ethereum mining machine you might want to pick a new cryptocurrency... at least until the ground rules change on that one too. (Remember what we said about the constant state of flux?) And thats really the only way to squeeze any profit out of cryptocurrency mining operationskeep moving as fast as the market does, and switch up the currencies you target as conditions change.

As soon as one cryptocurrency becomes profitable to mine, as weve seen with Bitcoin and Ethereum, everyone wants a piece of the action and making money gradually gets harder. Its then time to get in early on another currency. In short, if you want to get rich (or at least make a profit), you need to pick and keep picking the right cryptocurrencies, have a serious amount of graphics processing power in hand, hope that your chosen currencies stay secure and keep increasing in value, and put in a lot of time and effort.

Its not impossible, but we can think of easier ways to make a buck. If youre determined to jump in and get involved in cryptocurrency mining, if only for the educational and geek appeal rather than to make any money, your best bet is to immerse yourself in one of the many mining forums out there, which will give you the inside track on the latest news and market trends.

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Kik looks to cryptocurrency instead of an IPO commentary – CNBC.com – CNBC

Unless you've been under a rock, you've likely read a lot about ICOs (initial coin offerings) in the last few weeks. These are offerings by companies starting their own variant of blockchain-based digital currencies.

This year has not only seen the explosion in the price of bitcoin itself but also the second and third most popular cryptocurrencies Ethereum and Ripple.

More interesting, there's been a rise of many additional cryptocurrencies such as Steem, Dash, AntShares and Dogecoin. In fact, if you measure bitcoin's market capitalization as a percentage of the market capitalization for all cryptocurrencies, it's currently at 45.5 percent, down from 94 percent a year ago.

The value of all cryptocurrencies now is $88 billion, which is actually down from $114 billion a few days ago.

New ICOs have raised $500 million so far this year. One community that is showing great interest in becoming part of the trend of launching a new cryptocurrency is start-ups.

Last week, Thai fintech start-up Omise raised $25 million in an ICO to develop a decentralized payment platform. The company had already raised $20 million in traditional VC funding.

Rahul Sood's esports betting company Unikrn is launching its own cryptocurrency called UnikoinGold as the way to place esports bets on its platform. Unikrn has raised $10 million from Mark Cuban, Shari Redstone's Advancit Capital, Elisabeth Murdoch's Freelands Ventures and others.

However, social messaging company Kik has bigger plans for its upcoming ICO. In a recent talk given by Kik founder and CEO Ted Livingston, he explained that Kik saw its ICO of a currency called Kin as a potential alternative exit for them.

Like the Omise and Unikrn examples, Kik has also raised traditional venture capital money more than $120 million, including $50 million from Tencent most recently valuing the company at $1 billion. Kik's ICO will help bring it more money. Kik will sell 10 percent of its Kin currency (half to institutional investors and half to retail investors). Kik will keep 30 percent of Kin and 60 percent of Kin will be overseen by a nonprofit Kin Foundation aimed at making Kin a popular cryptocurrency. That foundation will give away 20 percent of its stock of Kin every year to developers and others who help build out the economy for Kin.

Kin will be used as the currency on the Kik social network for things like emojis, stickers, hosting and participating in group chats, building apps like bots, etc. However, the stated goal is for Kin to also be used as currency outside of the Kik app.

Even if stays confined within the Kik community, Kik has 15 million monthly active users. It's currently ranked in the 60s in terms of popularity on the App Store. That community alone will make the currency among the more popular cryptocurrencies.

But here is what's interesting, Livingston said that, if all goes well, this ICO could be Kik's liquidity event. Up until now, Kik has been thinking it had to translate its popular youthful community chat service into ad dollars in order to make a successful business similar to what Facebook has done. The problem is that Facebook and Google continue to suck up more and more of the ad dollars that are getting spent in the space.

Livingston said in the talk that the penny dropped for him when he saw Snap's S-1 IPO filing in February. Here was a young Facebook competitor seemingly doing everything right and yet still failing in its growth of its ad-based revenue. If Snap was failing, Livingston thought, what hope did Kik have of building a better ad mouse trap?

Yet, he thought, if Kik could develop a cryptocurrency that became a self-sustaining economy and Kik owned a big chunk of that supply limited currency the value of that stake in Kin could end up being more valuable than the potential exit valuation for Kik as an ad-based business in an IPO or through an acquisition. Luckily, one of Kik's earliest investors was Fred Wilson of Union Square Ventures, also a big investor in the cryptocurrency space. He agreed with Ted.

Can you name the fourth most popular cryptocurrency? It's Litecoin and has a market cap of $2.5 billion. If Kin got that kind of valuation and with an established community of 15 million monthly active users, it could be a currency worth more Kik's 30 percent stake in Kin would be worth $750 million, almost equal to the valuation of Kik's last round. If Kin became as valuable as Ripple the third most popular cryptocurrency today Kik's stake would be worth $2.5 billion.

Livingston pointed out that, in this kind of scenario, an exit via M&A or an IPO would be unnecessary for Kik. Its existing backers could simply convert their shares into Kin and liquidate them. Kik could stop trying to win advertiser dollars, if it wanted. It could simply focus on developing the community's use of Kin and helping Kin proliferate outside of the Kik ecosystem.

In this scenario, according to Livingston, "we just step back and watch it continue."

Will it work out this way? Possibly for some lucky start-ups but certainly not for all. The world likely doesn't need 1,000 different cryptocurrencies. The current gold rush mentality with ICOs will probably only get bigger in the months and years to come but will probably also meet the inevitable bust of the dot-com era.

But some cryptocurrencies will endure especially ones with strong use cases and/or communities supporting them. It's intriguing to imagine if some ad-dependent companies like Kik will opt to stop competing with Facebook and Google on a battlefield they can never succeed at and go for an alternative cryptocurrency path to value creation.

Kik is truly breaking new ground with its ICO. It will be intriguing to see if it causes other unicorns to follow its lead.

Commentary by Eric Jackson, sign up for Eric's monthly Tech & Media Email. You can follow Eric on Twitter @ericjackson .

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.

Disclosure: CNBC parent NBCUniversal is an investor in Snap

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Cryptocurrencies Are Getting Crushed – Bloomberg – Bloomberg

The cryptocurrency Cassandras are starting to look right.

The sector has lost about a third of its market value since peaking in early June, pushing it into what traditional equity market analysts label as a bear market. Bitcoin, the largest of the digital currencies, is down about 20 percent from its peak of $3,000, reached June 12. Smaller rivals such as ethereum and ripple are getting hit even harder.

When when we look for signs of excess in the market, I look at bitcoin and to me that looks pretty scary, Richard Turnill, global chief investment strategist at BlackRock Inc., said during a midyear outlook presentation in New York on Tuesday.

Whether the virtual currencies were caught up in an asset-price bubble was debated as the market capitalization of the sector soared this year, raising skepticism from pundits including tech billionaire Mark Cuban. Backers such as Ripple Chief Executive Officer Brad Garlinghouse, whose money-transfer company is tied to the third-largest cryptocurrency by market value, said he isnt convinced.

"I would be surprised if there was a major crash," Garlinghouse said in an interview at Bloombergs New York headquarters Monday. "Could we see digital assets continue to double or triple or quadruple from where we are today? That wouldnt surprise me at all."

Digital coins are currently worth around $80 billion, down from a market capitalization of $100 billion on Friday and $115 billion on June 14, according to data from Coinmarketcap.com.

This weeks slump coincides withinitial hearings in the trial of the former head of Mt. Gox, the bankrupt Japan-based bitcoin exchange that imploded in 2014 after losing hundreds of millions of dollars worth of bitcoin. Chief Executive OfficerMark Karpeles pleaded not guilty in Tokyo on Tuesday to charges of embezzlement and inflating corporate financial accounts.

The turbulence may be far from over, too, as rival bitcoin enthusiasts are set to adopt two competing software updates at the end of July. This has raised the possibility that bitcoin will split in two, an unprecedented event that would send shockwaves through the market.

Read more on the dispute between bitcoin developers

Volatility is nothing new for cryptocurrency buyers, who have faced losses in recent months as exchanges grapple with outages and poor performance, struggling to keep up with the volume surge that has swept the market amid speculation about the potential for widespread adoption of virtual assets and blockchain technology.

"It is easy to look at the appreciation that we have seen this year and conclude that we are witnessing a bubble, said Martin Garcia, vice president of sales and trading at Genesis Global Trading. While I understand that the prices we are seeing now a more than a little frothy, I think that we are in the very early stages of the development of an entirely new asset class."

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BlackRock Strategy: Cryptocurrency Speculation Doesn’t Present Systematic Risk – PYMNTS.com

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BlackRock Global Chief Investment Strategist Richard Turnill argued Tuesday (July 11) that loose monetary policy has resulted in a huge run up in cryptocurrency, such as bitcoin, but it doesnt pose a risk to the financial system.

According to a report in Reuters, Turnill said bitcoin price movements could be influenced by easy monetary policies that were instituted by central banks following on the heels of the global financial crisis that started in 2007 and lasted until 2009. The gains in cryptocurrencies could also be a sign the market could be in a bubble.

I look at the charts, and to me that looks pretty scary, Turnill said at a media briefing in New York covered by the newswire. He and his BlackRock colleagues have been telling clients to remain invested in global stocks despite the risk and despite warnings from some strategists that prices are too high. As to the speculations, hes not concerned about the broader implications from the wild movements in the digital currencies.

Theres no evidence that if that price went to zero tomorrow that thered be any broader financial implication over time, but to me it is [an] example of where youre getting some big price movements in the market.

BlackRock isnt the only one to warn about a bubble in cryptocurrencies. Those same concerns have hurt Ethereums price this week. According to a news report, the digital currency has been having a tough go of it lately, falling more than 45 percent since hitting a record high of $400 in mid-June.

There is talk that the cryptocurrency market is reaching a bubble after Mark Cuban said bitcoin, the Ethereum competitor, was already in bubble mode. I think its in a bubble. I just dont know when or how much it corrects, Cuban recently tweeted, noted the report. When everyone is bragging about how easy they are making $=bubble.

Following those speculations, came a statement from Jeffrey Kleintop, Charles Schwabs chief global investment strategist, who, according to the report, also suggested bitcoins price was in a bubble and in one not seen before.

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