Authorities still not convinced on cryptocurrency, feel it could turn into a bubble – The New Indian Express

Express News Service

NEW DELHI: Despite the Supreme Court ruling allowing trading in crypto-currencies, neither North Bloc nor most bankers are enthused by the new beast on the street.

A little over two years ago the government had warned citizens against investing in crypto-currencies terming them as `Ponzi schemes. That view seems intact in Finance Ministry where top officials still feel that virtual currencies issued by private firms are not legal tender and thus have no protection for investors if and when the bubble bursts.

Officials said RBI will have to now frame rules on crypto-currency trading in light of the apex courts order passed on Wednesday. Those who wish to take the risk and trade in crypto-currencies can then play it just as they would play any other games of chance, said Sanjay Bhattacharyya, former Managing Director of State Bank of India.

A top Department of Economic Affairs official pointed out these digital currencies are issued by private firms and not backed by any sovereign state. Their prices are arrived at through pure speculation and hence playing them will always remain akin to playing the Russian roulette.

ALSO READ |SC allows trading in cryptocurrency, quashesRBI's 2018 ban

In December 2017, the Ministry had through a statement warned there is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors (in virtual currencies), especially retail consumers losing their hard-earned money.

Lobbyists for cryptocurrencies have long been seeking some form of legal recognition. However, a cautious North Bloc has stalled pointing out that investments in crypto-currencies could be used to launder illegal or undeclared wealth and are really mere speculative trading.

Economists say to qualify as a `currency', whether issued on paper, coin or digitally, the money issued should represent a stable store of wealth, be backed by a Sovereign state which stands guarantor to its value and be generally acceptable. Digital currencies issued by private corporations fail on at least two counts by this definition point out analysts stable store of value and Sovereign guarantee.

Other than sovereign states, one of the few corporations which has in historical times issued its own currency was the East India Company and it did so after it assumed the status of a Sovereign power by taking over rich territories in India.

Economists point Even the Pacific island societies which issued cowry shell currencies in the past, issued them because a rudimentary state-backed those currencies.

Sometime back an inter-ministerial committee, in a report had recommended banning all privately circulated cryptocurrencies and imposing heavy fines and even jail terms for those dealing with unauthorized digital currencies.

The panel which included the then finance secretary S.C Garg however also asked the Government to keep an open mind on a possible official digital currency which could be launched by the Reserve Bank of India.

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Authorities still not convinced on cryptocurrency, feel it could turn into a bubble - The New Indian Express

Meet the Northumbrian using cryptocurrency to address the UK’s housing crisis – North East Times

March 4 2020 @ 13:42 by Steven Hugill

Having swapped the rolling Tynedale hills for the ever-shifting Dubai dunes more than two decades ago, James Hares thoughts have once again turned to home.

Not necessarily his old abode, but the fact that the UK has almost two million people registered as waiting to find a home and a Government facing up to a severe lack of social housing.

The least anyone living in a country as rich as the UK deserves is a place to live, said James, who has more than 20 years experience in property development, private equity and operating in international markets.

To come anywhere near addressing the current housing shortage, the Government must build over three million homes over the next 20 years, and even that doesnt help the people who are desperately in need of homes now.

I dont think Im alone in thinking that to get anywhere near this target, a radical re-think of the way affordable and social housing is currently being delivered is required.

And this is where BRIKCOIN comes in.

James developed BRIKCOIN to offer investors access to an easy in/easy out high-growth UK property investment, with no fees, no commissions and secured by ownership of the properties themselves.

We are developers, said James.

Our aim is to turn a profit and investors are no different. But this business model enables us to do that as well as act as a catalyst for a social housing rebirth, helping improve the quality of peoples lives by creating safe, healthy and sustainable communities.

BRIKCOIN is the first decentralised blockchain application dedicated to delivering 100 per cent genuinely affordable and social housing in the UK.

The business last year issued one billion tokens to potential investors on its platform and was released on global cryptocurrency exchanges on February 29.

It has become more than a business venture for James. Having worked for 20 years in the worlds of international finance and development, he backs the BRIKCOIN concept to not only stimulate housebuilding across the UK, but also revolutionise current investment models, making them quicker, simpler and more transparent.

Dubai may now be home, but James hails from a Tynedale family.

His father Rad is a councillor and served twice as town Mayor. The Hare family spent James early years in Nigeria, before returning to Northumberland, where he attended Mowden Hall School, in Stocksfield.

My first full-time job was in banking and finance in Dubai. I received an offer and travelled over on my own in 1997, to a place very different to what it is now.

I wanted the adventure of living and working abroad while building my own career, said James.

When Dubais freehold property market opened up, I structured project finance for residential and commercial projects, working with both international and regional banks. These were first of their kind structures for this region, where I was securing senior debt funding for foreign-owned development companies.

Based in Dubai for 22 years, James has developed affordable residential schemes, exclusive villa collections and commercial office towers in London, Dubai and Colorado, USA. His knowledge of structuring, recapitalising and driving projects to completion led him to creating his current vision and to the launch of BRIKCOIN.

Cryptocurrency represents a world of opportunity for investors, but we recognise that were going to have to overcome some misconceptions, mainly due to high-profile Bitcoin scams a few years ago, adds James.

Those were a lifetime ago in terms of the speed that technology is moving, but its what comes to mind for some when they think crypto.

However, many of the worlds largest companies are now integrating the blockchain into investment models and its advancement and adoption is moving far quicker than the internet 20 years ago.

BRIKCOIN utilises crypto as a new form of shares, but with the significant efficiencies the blockchain offers its fast, transparent, cost effective and liquid.

James said: We are matching future tech to accepted understanding of land and property.

BRIKCOIN is a second-generation crypto and has been established as a company built on solid ground with a highly experienced team driving itour ultimate aim is to be the UKs top community-focused affordable housing developer.

So, how will BRIKCOIN deliver the bricks and mortar to solve the UK housing crisis?

The model is relatively simple: the sale of BRIKCOIN will fund affordable housing schemes across the UK, working in partnership with local authorities.

BRIKCOIN retains ownership of, and management responsibility for, the properties, building a portfolio and increasing the token value.

Long lease guarantees from the local authority are then sold to financial institutions, such as the pension funds, with BRIKCOIN benefiting from a competitive profit.

BRIKCOIN will also generate revenues from fees associated with property development and facilities management.

James added: We believe everyone should have a home safe, clean and secure, a place to grow and live a happy and healthy life with your family. Thriving communities are our focus and our future.

BRIKCOIN will help address the UK housing crisis by delivering 100 per cent genuinely affordable housing.

And with the long lease agreements, everyone living in a BRIKCOIN home will have a home for life.

And the best bit? Through covenant, every propertywe build will remain affordable forever.

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Meet the Northumbrian using cryptocurrency to address the UK's housing crisis - North East Times

Julian Assange case is a retreat in civic progress and protection | Opinion – Commercial Appeal

Kelly Brother, Guest Columnists Published 10:00 a.m. CT March 4, 2020 | Updated 4:23 p.m. CT March 4, 2020

Whether you agree with him or not, WikiLeaks founder Julian Assange is no stranger to controversy. USA TODAY

The case of Julian Assange, founder of WikiLeaks, violates not only Assange's rights as a public servant but journalism as a whole.

Is it hyperbolic to question whether or not a major pillar of Western Civilization - freedom of the press, the fourth estate, the right to both tell and hear hard truths - is in danger of collapse?

The farcical show-trial underway at Belmarsh prison in London, England of WikiLeaks founder, Julian Assange, provokes this extreme question.

During his presidential campaign, President Donald Trump declared, WikiLeaks, I love WikiLeaks, when the divulged DNC and Hillary Clinton emails suited his political aspirations.

Now in power, Trumphas fallen in line with those who wish to protect state secrets." A related issue is the partisan, feckless case made by Democrats in the headlong rush to create political separation by impeachingTrump. And who consequently protested to the skies that the Ukraine-gate whistleblower--whose name is easily discoverable on the internet--should not only remain anonymous but should be treated with the utmost care and protection. Special pleading at its worst.

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Does it matter? The use of digital technology to disseminate news should play no role in deciding this question. No more than deciding whether or not TV and radio are more trustworthy than print. Neither should the size or nationality of the news organization in question matter.

Arianna Huffington once stated that anyone with a cell phone can be a journalist. Local and national news media routinely ask for news tips and cell phone imagery.

The precedents of Ellsberg (Pentagon Papers), Webb (cocaine, Iran-Contra), Hersh (My Lai), and many others along with their hard won, concomitant legal and ethical touchstones renders the case against Assange a retreat in civic progress and protection.

Whether one regards him a hero or traitor, Assange will become a martyr if he is allowed to die in captivity or languish in prison for years on end. Nations will continue to criminally overstep their bounds--especially in war--and truth-seekers will continue to reveal dark secrets. That evens the pretense or illusion of what many, both left and right, now question is a truly honest, free and functioning press, and that is now under such assault, bodes ill for everyone--those in power as well as those not.

The stench of hypocrisy in the global promotion of democracy and Western values now reeks to high heaven.

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Freedom to report all news must remain sacrosanct.

It is never too late to change course. Let all people of conscience, duty and humanity lift their voices in opposition to this attack on the ability to both tell and hear hard truths and free Julian Assange, Chelsea Manning, Edward Snowden and all those who seek to hold to account our democratic, representative institutions of power.

We the people should demand no less.

Kelly Brother is a freelance graphic artist and former citizen editor with The Commercial Appeal.

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Julian Assange case is a retreat in civic progress and protection | Opinion - Commercial Appeal

Foreign affairs department questioned over whether Julian Assange is getting a fair trial politics live – The Guardian

Weve now rolled around to Scott Morrison attempting to get the Hillsong pastor Brian Houston an invitation to the White House in Dfat estimates.

What a stupid saga this has been.

The Labor senators Tim Ayers and Penny Wong want to know what Morrison asked the Americans for in terms of the invitation.

The Dfat secretary, Frances Adamson, says shes not aware of that information.

Ayers raises FOI applications about the Houston invite, which were denied on the basis the disclosure would harm the bilateral relationship with the US.

Was Dfat consulted about those denials? Another Dfat official says the department was consulted.

The only embarrassment here was for the prime minister, Wong says.

He didnt want to answer the question so the whole public service had to fall into line with that.

The Liberal senator Eric Abetz observes thats a comment.

Wong agrees. It is, indeed, a comment.

Ayers wants to know whether Dfat knew, when it last gave not very helpful evidence about this matter at estimates, that Morrison wanted Houston at the state dinner at the White House.

Adamson says Dfat didnt have complete visibility over that issue, noting she travelled with Morrison during last years visit to Washington.

It was a matter for the prime minister and his office, she says. Ayers asks when Adamson knew Morrison wanted Houston at the state dinner.

Adamson says she knew when Morrison told the radio host Ben Fordham this week.

She was aware of speculation prior to that, but she says Dfat wasnt handling that element of the visit.

Ayers wonders why it was vital that information not be shared to protect the bilateral relationship, and then it was suddenly OK this week.

Adamson tries to tough the reverse-ferret out, but Wong is on a roll about Morrisons embarrassment.

We are on the big issues here, Eric Abetz notes.

Wong notes the honesty of the prime minister is a significant issue.

Continued here:
Foreign affairs department questioned over whether Julian Assange is getting a fair trial politics live - The Guardian

We’re making a very important decision when it comes to Julian Assange – The Big Smoke Australia

The entirety of the Julian Assange case now boils down to a solitary argument: Should journalists be jailed for exposing war crimes?

The facts are all in, and yes, the US government is moving to imprison a journalist for exposing its war crimes. That is happening, and there is no justifying it.

So the narrative managers, by and large, have gone silent.

Which is good. Because it gives us an opening to seize control of the narrative.

Its time to go on the offensive with this. Assange supporters have gotten so used to playing defence that it hasnt fully occurred to us to go on a full-blown charge. Ive been guilty of this as well; Ill be letting myself get bogged down in some old, obsolete debate with someone about some obscure aspect of the Swedish case or something, not realising that none of that matters anymore.

Everything that was used to get Assange to this point are impotent, irrelevant expenditures of energy compared to the fact that the US government is working to set a precedent which will allow it to jail any journalist who exposes its misdeeds, and we can now force Assanges smearers to confront this reality.

Should journalists be jailed for exposing war crimes? Yes or no.

Thatsthe debate now. Not Russia. Not Sweden. Not whether he followed proper bail protocol or washed his dishes at the embassy. Thats old stuff. Thats obsolete.

We now have two and a half months to prepare for the second half of Julian Assanges extradition hearing: all of March, all of April, and half of May. Were going to need all that time to seize control of the narrative and make it very, very clear to the world that a very important decision is about to be made by the powerful on our behalf, if we dont make that decision for them.

This really is do or die time, humans. If we allow them to extradite and imprison Julian Assange for practicing journalism, thats it. Its over. We might as well all stop caring what happens to the world and sit on our hands. Its impossible to hold power accountable if youre not even allowed to see what its doing.

If we, the many, dont have the spine to stand up against the few and say No, we get to find out facts about you bastards and use it to inform our worldview, you dont get to criminalise that, then we certainly wont have the spine it will take to wrest control of this world away from the hands of sociopathic plutocrats and take our fate into our own hands. We are deciding, right now, what we are made of. And what we want to become.

This is it. This is the part of the movie where we collectively choose the red pill or the blue pill. We are collectively being asked a question here, and our answer to that question will determine the entire course we will take as a species.

So whats it going to be, humanity?

Truth, or lies?

Light, or darkness?

A world where we can hold power to account with the light of truth, or a world where power decides whats true for us?

A world with free speech and a free press, or a world where journalists are imprisoned whenever they expose the evils of the most powerful institutions on this planet?

A world where we all actively fight to free Assange and get the job done, or a giant, irreversible leap toward the end of humanity as we know it?

Do we free Assange?

Or do we sit complacent with our Netflix and our KFC and trust the authority figures to do whats best?

Do we take the red pill?

Or do we take the blue one?

Choose your path, humans.

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We're making a very important decision when it comes to Julian Assange - The Big Smoke Australia

Bitcoin, Uncertainty and the Ultimate Narrative – Coindesk

Noelle Acheson is a veteran of company analysis and CoinDesks director of research. The opinions expressed in this article are the authors own.

The following article originally appeared in Institutional Crypto by CoinDesk, a weekly newsletter focused on institutional investment in crypto assets. Sign up for free here.

If there ever was a week when crypto narratives got confusing, it was last week.

Those who believe in bitcoins safe-haven narrative (fewer in number by the hour) are struggling to make sense of the correlated slump which left the bitcoin (BTC) price down even more in percentage terms over the past two weeks than the S&P 500 (-15 percent vs -12 percent). Gold, bitcoins analog counterpart, actually went up (4.5 percent).

Those that maintain it is a risk-on asset (growing in number by the hour) are transfixed by the jump in correlation between bitcoin and the S&P. Whatever happened to the pitch on the importance of having an uncorrelated asset in your portfolio? (True, its still at a low level, but its no longer negative.)

While analysts and fund managers produce arguments for bitcoin being both risk-on and risk-off at the same time, the bigger crypto story is happening beyond our markets. And it is worth paying attention to.

The stock market's shellacking last week seems to have been triggered by concerns about the economic impact of supply chain disruption and production slowdowns caused by coronavirus prevention measures. While these factors are unlikely to have a big impact on bitcoin fundamentals (no matter how delayed mining equipment deployment gets, the protocol will keep doing its thing), in times of fear investors exit riskier assets. They also exit liquid assets, and bitcoin is probably easier to offload than other high-risk holdings such as thinly traded stocks or private equity.

Supply chain impact

Moving beyond markets,the disruptions will have a deeper and longer-lasting impact on global supplychains. This threat, combined with building tensions elsewhere, couldeventually consolidate cryptos risk-off status, and endow it with the use casethe market has been waiting for.

Unless the coronavirusspread is quickly contained, global supply chains will need to be reconfiguredto more local variations. This will most likely accelerate the already-presentunwinding (due to trade tensions and increased border controls) of the globalizationtrend in manufacturing that had led to lower costs all around.

This unwinding will mostlikely push up costs for consumers, as low-cost manufacturers (usually based inAsia) are replaced by less efficient or more highly taxed local suppliers. Thiscould finally produce the inflation that central bankers have been longing for.

However, this inflation could manifest just at the time central banks are yet again lowering rates and flooding the markets with new money to combat the market slump. Last weeks fall may be temporary but it was the largest since the 2008 crisis, which is understandably ringing alarm bells.

Running in parallel, we have political uncertainty. The market rout, if it continues, could end up having a significant impact on the upcoming U.S. elections. A large driver of Donald Trump's support has been the strength of the S&P 500. Should that evaporate, support could swing. And an increased likelihood of a victory for Bernie Sanders, for instance, could further spook the markets, perhaps making that victory even more likely.

Climate of uncertainty

Uncertainty in theU.S., both economic and political, is likely to spill over into other regions,perhaps pushing countries further towards populism as economies struggle and localtensions escalate.

You see where Imheading with this? Its not towards a fog of doom and despair. Its toward the growingrealization that there is an alternative. The mix of rising inflation, moreprinting of money and growing populism should heighten global interest in analternative asset that is immune to inflation, monetary depreciation andpolitical manipulation.

The likely eventual outcome,after tragic suffering and wealth destruction which is never a good thing, willbe a new type of narrative, one with greater clarity and acceptance, not tomention urgency.

Bitcoin may be a risk-on asset now, as uncertain narratives, contained liquidity and limited awareness put it in the optional bucket of most portfolios. But as its use case becomes even more obvious, given macro developments that highlight the vulnerability of fiat-based finance, it could finally rise to become the safe haven or necessary hedge that we have been talking about. This is the kind of scenario that bitcoin was created for.

Disclosure: the author holds a small amount of bitcoin and ether, and no short positions.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin, Uncertainty and the Ultimate Narrative - Coindesk

Almost Half of All Bitcoin Has Not Moved in 2 Years – Bitcoinist

42% of Bitcoin has not moved on-chain for at least two years, the highest concentration of hodling since June 2017.

HODL Waves are periods of heavy bitcoin accumulation which can be monitored by Bitcoin Unspent Transaction Outputs (UTXOs). When block rewards are given to a miner, a UTXO is created. When BTC is spent, the UTXO becomes an input to the user receiving the Bitcoin, and any change is sent back to the spender as a different UTXO.

Every BTC transaction consists of inputs (spent BTC) and UTXOs (unspent BTC). My spent UTXO becomes an input sent to you, and that input becomes your UTXO to spend as you please.

UTXO analysis enables analysts to roughly gauge how much Bitcoin is actively being hodld by investors, by analyzing how long it has been since a UTXO has been used to make a transaction. The longer the time period, the more it indicates cold storage and long-term saving.

Coinmetrics just recently published a cryptocurrency valuation report. In this report they use UTXO age analysis as a valuation metric. They discovered that as of March 1st, 42% of Bitcoin UTXOs have not moved in 2 years or more.

This is the highest this number has been since June 2017, shortly before Bitcoins bull run to all time highs in December of that year. This could be a fundamental indication that Bitcoin is preparing for an epic tear towards new all time highs after Mays halving.

HODL Waves are identified by what are called Bitcoin Age Days(BADs). Basically, if a Bitcoin UTXO is not spent for 30 days, it has 30 Bitcoin Age Days, if it gets spent on the 30th day, 30 BADs are destroyed.

There are 3 major Bitcoin HODL Waves, the oldest of which are BTC UTXOs which have not moved in 5 years or more. These are the hodl stashes of the first people who mined Bitcoin, Bitcoin OGs, and early adopters.

This also includes a concentration of lost coins, or coins that early adopters lost access to the private keys; a common occurrence in Bitcoins early days. Chainalysis, a blockchain forensics service, estimates up to 4 million BTC have been lost permanently.

HODL Wave 2 is the UTXOs that are between 3-5 years, which was the wave of new adopters that came into the Bitcoin markets after it first began to capture headlines with its first major bull run to $1200, as well as the people who entered during the 2017 bull run to 20K.

HODL Wave 3 is made up of UTXOs that are between 18-24 months of BAD. These are the investors who sat on the sidelines during Bitcoins 2017 bull run, but who bought BTC during the crypto winter, taking advantage of bear market lows to accumulate.

As hodlers increase, the lead cryptocurrencys scarcity is magnified. This adds upside price pressure, especially with the incoming halving, which will reduce the supply new BTC produced. This could be a perfect storm to cause prices to explode.

What do you think about the concentration of hodld BTC? Let us know in the comments!

Images via Shutterstock, Twitter @natemaddrey

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Almost Half of All Bitcoin Has Not Moved in 2 Years - Bitcoinist

Super Tuesday Special: Which US Election Outcome Is Best for Bitcoin? – Coindesk

It's 'Super Tuesday' in the U.S., and as Democrats take to the polls to pick their nominee, @nlw polled Twitter to see who the crypto community thought would be best for bitcoin (BTC) and the industry.

Today is Super Tuesday - one of the biggest days of the U.S. election primary season. Increasingly, prediction markets and pollsters suggest its coming down to a two-person race between Joe Biden and Bernie Sanders (although Mike Bloomberg has insisted hes staying in).

In this episode, NLW breaks down each candidate in the context of their positions vis a vis cryptocurrency, and looks at the possible role of three other fallen contenders during the rest of the campaign.

As Bernie leads the Twitter poll, the question arises: Do people think Bernie will be good for bitcoin because he shares the same values of prioritizing the little guy over big banks, or because his programs will demand so much quantitative easing (QE) it will send bitcoin to the moon?

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Super Tuesday Special: Which US Election Outcome Is Best for Bitcoin? - Coindesk

Sunday Digest: Bitcoin Price Crash and Other News – Bitcoinist

Its been hard to avoid the coronavirus this week, at least in the news, as the US confirmed its first death this morning. If it turns into an all-out pandemic, youll be glad that you sealed yourself away and stocked up on bitcoin you did do that, right?

What can be said? Not a great week for bitcoin price at the risk of stating the obvious. So how did it play out?

After gains last weekend, Monday trading saw these wiped out after $10k was rejected again. Analysts predicted a pullback, and price continued to fall on Tuesday, breaking $9.5k, with some expecting a drop to as low as $8,300.

Krakens Director of Business Development, Dan Held, remained bullish, however, believing that bitcoin could be on the edge of a super-cycle that would quickly take it to $100k and beyond. Meanwhile, a cash crunch in Lebanon propelled bitcoin price to an inflated $15k between local peer to peer sellers.

However, on global markets losses continued into Wednesday, breaking $9k support, and also dragging down most altcoins, and threatening to wipe out the years gains so far.

Stock to Flow proponent, PlanB, predicted that bitcoin would not fall below $8,200 during this crash, and we all hoped he was right, although prices didnt seem to stop falling during early trading on Thursday.

Thankfully bitcoin did then find some support at $8,600, bouncing up as high as $8,900, before tailing off again on Friday. This time solid support was found at $8.5k, and the price has been trading in a range between this level and $8,800 ever since.

However, at a macro level, there are concerns that bitcoin is still in a bear market. Certainly, the bulls must defend key levels to stem the recent flow.

The Bank of Englands chief cashier voiced her support for a Central Bank Digital Currency this week, saying that governments must act fast to avoid losing out to tech giants such as Facebooks Libra.

Meanwhile, Chinas proposed CBDC faced delays due to the coronavirus outbreak, although officials were still aiming to launch a pilot in 2020.

Although Canada has decided that it doesnt need a CBDC at the moment, it has put in place a blueprint for one, just in case.

YouTube continued its assault on channels related to cryptocurrency, this week suspending Ivan on Tech until after the May halving event.

Craig Wright faces more questions about the purported Tulip Trust and Bonded Courier, as the estate of Dave Kleiman wants to expose what it says are just more lies. Meanwhile, Binance CEO, CZ, called Wright a fraud in no uncertain terms earlier in the week.

Amid major losses for Ethereum this week, the community also came to blows over the approval of a controversial change to its mining algorithm. The Programmatic Proof of Work (ProgPoW) algorithm is supposed to reduce the advantage of ASIC hardware but caused a big discussion online as to its implications.

Exchanges OKEx and Bitfinex were both hit by DDoS attacks this week, with OKEx CEO Jay Hao offering a bounty for information on the attackers.

Bitfinex claims that it has repaid $100 million of the $700 million it borrowed from Tether last year. And Paolo Ardoino, CTO of Bitfinex & Tether, will be speaking at the Digital Asset Summit next month, marking the first time that a Bitfinex/Tether exec has spoken at an industry event.

The SEC denied Wilshere-Phoenixs application for a Bitcoin ETF, which was disappointing, but not entirely unexpected given its track record.

Warren Buffett appeared on CNBC this week, telling the world once again that he will never own cryptocurrency.

This caused Justin Sun, who Buffett said was very polite at their recent charity lunch date, to call foul play. After all, the joy of blockchain meant that he could show the bitcoin and Tron he gifted Buffett at the dinner had not been moved.

To which, Buffett responded that he had given the phone away on which Sun had loaded the wallets to his favored Glide charity.

Surely its time to stop trying to teach the old dog new tricks already.

What was your favorite bitcoin or crypto story of this week? Let us know in the comments below!

Image via Shutterstock

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Sunday Digest: Bitcoin Price Crash and Other News - Bitcoinist

Bitcoin Off the Grid: The Promise of Mesh Networks – Bitcoin Magazine

What happens if the internet goes down?

Youve heard it, Ive heard it weve all heard the refrain. Its a favorite of FUDster journalists like Frances Coppola and David Gerard, and they treat it like the ultimate trump card when debating Bitcoins value.

Correct! If the internet goes down across the globe, Bitcoin would be in trouble. But so would the global banking sector, the healthcare industry, the food industry and basically the entire fabric of our hyper-connected existence. If the internet is kaput, then you should probably be worried about stocking supplies and ammo, because its going to get wild.

But what if I told you that, in the event of a mass internet outage, theres a good chance that Bitcoin would survive? That chance is real and growing thanks to the promise of mesh networks.

Put simply, mesh nets are networks of peer-connected nodes that offer offline connectivity by means of radio signals. Depending on the bandwidth of the network, you could do things like send a bitcoin transaction or download the Bitcoin blockchain.

When coupled with something like the Blockstream satellite network, which broadcasts the Bitcoin blockchains data across much of the surface area of the globe, you could architect a nearly foolproof, decentralized infrastructure that could be used as a makeshift web in case the actual internet goes down.

The goTenna team may come to mind when you think of mesh networks. So, too, might Locha Mesh, an open-source mesh network project kickstarted by Randy Brito, the philanthropic entrepreneur behind the non-profit Bitcoin Venezuela.

For this weeks issue on the use of Bitcoin through dissident technology, we talked to Brito and Blockstream developer Grubles about the promise of mesh networks. Grubles has published demonstrations on how you can use mesh networks in conjunction with Blockstreams satellite to send transactions and messages on Bitcoin offline. The satellite is a boon to the mesh network use case here because, as Grubles put it, The coverage area is enormous. We can practically blanket an entire continent with Bitcoin data with just one of the satellites in the Blockstream Satellite network.

Our Q&A with the pair below covers the what, why and how of mesh networks, along with what situations they can ameliorate and what conditions need to be met before they can bring offline Bitcoin access to the masses.

Bitcoin Magazine: For those who might be unfamiliar, what are the benefits of mesh networks?

Grubles: In a traditional network, like the one you likely use today at home or at work, youre connected to an ISP [internet service provider] which is typically controlled by a for-profit corporation. Your ISP then has its own providers which it connects to, also owned by for-profit corporations. Sometimes these corporations are pressured by governments to filter, or otherwise censor, information on their networks.

A mesh network is, at the most basic level, a peer-to-peer network. Peers in the network provide connectivity to other peers they are connected to, and the peers of their peers gain connectivity, and so on. The result is a network without a central entity, and if you visually graph the layout of the network, it resembles a mesh, rather than a hub-and-spoke-like traditional network where everyone is eventually connected to a central ISP.

BM: How are they good for Bitcoin?

Grubles: How mesh networks tie into Bitcoin is pretty straightforward. Currently, there is a reliance on the traditional ISP-controlled networks. Not just for Bitcoin but for most things on the internet. If a network is controlled by a central entity, it can be easily shut down or censored. A mesh network is resistant to parts of the network going offline, so peers can route their data around the parts that have gone offline. This kind of resilience is important for a system like Bitcoin because it means that transactions can keep flowing and miners can keep producing blocks. If youre a merchant or a miner and your ISP decides to shut off your connection, youre kind of screwed.

BM: To you, which is the more important side effect of mesh networks: the privacy they provide or the benefit of not having to rely on the internet?

Grubles: Different people will have different answers for this but, for me, its the added redundancy and the breaking free of the reliance on traditional ISPs. Privacy is important, but if you have a network which provides privacy but is bottlenecked by a central entity, then the central entity can just be pressured to shut the network down altogether. If we focus on building out mesh infrastructure first, we can always overlay something like Tor on top or bake privacy into the mesh protocol itself.

BM: On that note, what are some of the pitfalls of mesh networks? Where are the weak points?

Brito: For using Bitcoin via mesh networks, the amount of data that needs to be transmitted could be its weakness. If you are in the Locha Mesh but you dont have an internet connection or a satellite dish, you will need to get the latest Bitcoin block data from a peer in the mesh and the number of hops you may need to do and bandwidth will be key for you to accomplish this. If there isnt anyone offering you this service, you would be isolated from the Bitcoin network itself.

Fortunately, the Bitcoin community doesnt stop innovating in the network side of Bitcoin, so improvements like Erlay, FIBRE and more will make transmitting Bitcoins block data over the mesh achievable. You will still be able to pretty easily use your Electrum wallet within the Locha Mesh as far as you can reach an Electrum server that serves you with your wallets latest balance updates, or you could make offline signed bitcoin transactions, reach a push-tx gateway and then receive a message when your transaction has been added to a block.

BM: Do you have anything to add to that, Grubles? And do you think that mesh networks will enjoy greater development and adoption, or do you think they will always be a fringe interest?

Grubles: Mesh tech is still in its early stages. Setting up most mesh technologies requires some technical proficiency, so the vast majority of people will have a hard time getting connected. This means the total size of a mesh network will be relatively small to begin with. Once its easier for the average person to get set up and connected to a mesh, then I think it will really start to take off.

I think mesh networking is one of those things that you dont really care about until you actually need it. But I think that as the internet and communications become more and more of a necessity in our lives, there will be more awareness for mesh networking as a side effect.

BM: Randy, youve been working on Locha Mesh specifically with your home country of Venezuela in mind. What needs to be done for something like Locha Mesh to be adopted in parts of the world that need it most?

Randy Brito: The decentralized nature and censorship resistance of the Locha Mesh are very important, but without a way to incentivize people to offer these services of Bitcoins blocks data and latest bitcoin transactions, Electrum servers, Lightning Network watchtowers, offline push-tx services and gateways, all within the mesh, the Locha Mesh would be limited to mainly messaging and would need people to have their Locha Mesh nodes always online with the only incentive being able to send messages within the mesh.

To solve the incentivization problem, weve been thinking from the start on how users will be using the Lightning Network to pay for these services, and well continue researching any available options to make this possible. One of the other methods we are currently looking at, with the support of other members of the community, is, for example, the use of Moneros new RPC-Pay feature. Well continue researching this matter and welcome anyone who would like to suggest or test their incentivization ideas for Bitcoin and the Locha Mesh sustainability and availability.

BM: If I recall correctly, Locha Mesh relies on radio signals broadcasted on the ground. Grubles has used the Blockstream satellite for his own mesh networks. In what ways does your design differ, and what are the pros/cons of your approach?

Brito: What the Blockstream satellite does is beam Bitcoins blockchain data and messages to Earth. You could use this service to get the latest transactions and blocks using a satellite dish on your rooftop and then transmit this important data to others through the Locha Mesh to allow people to transact in Bitcoin and the Lightning Network, even if they dont have an internet connection. They just need to be inside the Locha Mesh and get the Bitcoin data from you.

This is the same [solution that] Grubles has demoed, but the mesh hardware he has tested it with is not capable of transmitting Bitcoins blocks data due to hardware and bandwidth limitations, only short messages. We are working on the needed capabilities for the Locha Mesh to be useful for Bitcoin in a worst-case scenario.

Continued here:
Bitcoin Off the Grid: The Promise of Mesh Networks - Bitcoin Magazine