According to a press release from the Department of Justice on November 29, 2019, Virgil Griffith, resident of Singapore and U.S. citizen, was arrested for a criminal complaint where he was charged with violating, ...the International Emergency Economic Powers Act (IEEPA) by traveling to the Democratic Peoples Republic of Korea (DPRK or North Korea) in order deliver a presentation and technical advice on using cryptocurrency and blockchain technology to evade sanctions.

Virgil Griffith

Mr. Griffith allegedly traveled to North Korea without permission from the federal government, and with knowledge what he was doing was against the law.We cannot allow anyone to evade sanctions, because the consequences of North Korea obtaining funding, technology, and information to further its desire to build nuclear weapons put the world at risk.Its even more egregious that a U.S. citizen allegedly chose to aid our adversary.

In this case, Griffith is specifically accused of traveling to North Korea (DPRK) in April 2019 to attend and present at the Pyongyang Blockchain and Cryptocurrency Conference (the DPRK Cryptocurrency Conference), even though the U.S. Department of State had denied Griffith permission to travel to the DPRK. Griffith presented at the DPRK Cryptocurrency Conference, knowing that doing so violated sanctions against the DPRK and at no time did Griffith obtain permission from OFAC to provide goods, services, or technology to the DPRK.

Despite receiving warnings not to go, Griffith allegedly traveled to one of the United States foremost adversaries, North Korea, where he taught his audience how to use blockchain technology to evade sanctions.By this complaint, we begin the process of seeking justice for such conduct.

EXECUTIVE ORDERS ON PROTECTING U.S. SANCTIONS BROADEN FROM TRADING CRYPTO TO TEACHING CRYPTO

Griffith is specifically charged in connection with the IEEPA as a result of an Executive Order 13466 of June 26, 2008, Continuing Certain Restrictions With Respect to North Korea and North Korean Nationals and enforced under the Office of Foreign Assets Control (OFAC). Most recently, Forbes reported on how Congress may enact a law with the Executive Order from Trump specific to Venezuela and the use of Petro cryptocurrency by U.S. citizens.

In both cases, U.S. persons, in a dramatic twist of foreign policy and the ability of the U.S. to enforce sanctions in light of technological disruption, are held to account for actions that may help a country evade sanctions through the use of cryptocurrency and blockchain technology. With concerns over this latest incident resulting in an arrest, the Department of Justice appears to be signaling the level of concern law enforcement have with respect to the power of cryptocurrency and blockchain to disrupt the effectiveness of U.S. sanctions as a foreign policy tool.

Despite receiving warnings not to go, Griffith allegedly traveled to one of the United States foremost adversaries, North Korea, where he taught his audience how to use blockchain technology to evade sanctions.By this complaint, we begin the process of seeking justice for such conduct.

In the press release - provided below - U.S. Attorney for the Southern District of New York, Assistant Attorney General of National Security, the Federal Bureau of Investigation (FBI) Counterintelligence Division, and the Assistant Director-in-Charge of the New York Field Office of the FBI jointly announced the arrest of Mr. Griffith. Griffith was arrested yesterday on Thanksgiving in Los Angeles National Airport and awaits disposition of his case before a judge today. The DOJs Terrorism and International Narcotics Unit will be handling the case.

More:
U.S. Authorities Arrest Virgil Griffith For Teaching Cryptocurrency And Blockchain - Forbes

The federal parliament of Germany has drafted a bill that, if enacted, will allow banks to become custodians and merchants of cryptocurrency in 2020, German business newspaper Handelsblatt reported Wednesday. The move represents a bombshell milestone in adoption and could, in theory, make crypto as liquid as cash in the worlds fourth-largest economy.

The new Bundestag bill proposes the deletion of a clause in the European Unions Fourth Anti-Money Laundering Directive that prohibits banks from directly dealing in cryptocurrency. Since 2017, the directives separation bid has required all EU banks to conduct crypto operations through third-party custodians and subsidiary entities.

If the bill is adopted as expected, starting next year banks, operating in Germany will be legally allowed to store crypto and securities like stocks and bonds and offer them to customers likely as they would cash.

The Association of German Banks a.k.a. BdB lauded the possible regulation changes, stating banks are experienced in the safekeeping of client assets and in risk management, and are committed to investor protection.

Others arent so sold on the motives of banks or their commitment to investor protection. The consumer protection watchdog from Germanys third-largest state, Baden-Wuerttemberg, is concerned banks could aggressively pitch crypto to uneducated customers and put them out of pocket. They stated:

Basically, banks sell a variety of financial products, if the commission is right. If they are allowed to sell cryptocurrencies and keep them for a fee, they run the risk of turning their assets at risk of total loss to their clients, without them knowing what they are getting into.

The bill may be a portent of a coming power grab by banks, one where financial institutions attempt to dominate crypto with the almighty level of control and profit they enjoy in the currency market.

It has long been feared that banks would enter in this fashion and corrupt Bitcoin and broader crypto with opaque controls like fractional reserves. In fact this particular possibility was described ten years ago as being the ultimate fate of Bitcoin by early crypto pioneer Hal Finney.

A more immediate possibility is the enforcement of banking-style controls over crypto aside from the German bill, this is becoming a reality in a number of key markets. In October, the U.K. Financial Conduct Authority announced that as of 2020, all crypto businesses, ATMs, and even open-source wallets, will be required to collect KYC information on users.

Read more:
Germany proposes bill to allow banks to deal in cryptocurrency in 2020, heres what this will mean [UPDATED] - CryptoSlate

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South Korea has achieved a high level of national informatization in recent years. The country is a world leader in internet access speed, some 92 percent of population is internet users, and, in 2005, South Korea was the first nation to complete the transition from dial-up to broadband internet access. The government is pursuing an active ICT development policy by adopting master-plans for national informatization and initiating the establishment of various institutions in the field of cybersecurity and internet regulation.

One could assume that South Korea should be at the vanguard of cryptocurrency introduction as well, and to some degree, this is correct, inasmuch as South Korea is the worlds third largest bitcoin trade market and therefore has a great potential to attract digital currency investment. However, since 2017 the Korean government maintains an ICO (Initial Coin Offering) ban policy, i.e. it prohibits any forms of receiving investments in exchange for cryptocurrency sale from domestic companies. Many consider such a stance counterproductive and say it seriously affects cryptocurrency trade by making prices volatile and thus undermining the market.

The South Korean government certainly has a strong rationale for restricting ICOs, since such form of investment may involve substantial risks of defrauding due to the anonymity of ICO transactions (not to mention that cryptocurrencies have been generally associated with illegal activities for a long time). The official South Korean position on the issue is expressed in the Financial Supervisory Commissions statements. The conclusions of its 2019 report examining the activity of 22 domestic companies which had been running ICO businesses abroad confirm that unregulated token sales are too risky and unstable to institutionalize ICOs. In August 2019, FSC chairman candidate (subsequently elected chairman) Eun Sung-soo reiterated governments commitment to take a cautious stance toward ICOs and mentioned on several occasions that significant work is yet to be done regarding the legalization of this type of cryptocurrency sale.

The situation is further complicated by actual fraud or failure cases, for example, the closure of Coinnest, one of the largest crypto exchanges in South Korea. Coinnest is notorious for a corruption scandal in which its top executive was charged with accepting a billions of won bribe and conducting an accidental airdrop of more than $5 million to its clients. Both incidents provided a direct impetus for Coinnests closure and, along with a Ministry of Justice 2019 report estimating losses from cryptocurrency crime over a two-year period at $2.3 billion, generated a distrust on the part of the government toward the feasibility of ICO legalization. Nevertheless, this doesnt mean that South Korean leaders are eager to hinder the development of blockchain and cryptocurrency technologies; on the contrary, they do admit the possibility of legalizing ICOs in the future, provided that a proper regulation framework would be designed in order to minimize investment risks.

But it may not be easy to develop efficient regulation because the question of cryptocurrency circulation concerns a rapidly evolving information space, which has proven so far difficult to define as a legal reality. The example in this regard is the case of public debates over cybersecurity and cybercrime regulation in South Korea: Not only legal difficulties prevent government from adopting comprehensive cybersecurity policy guidelines, but the oppositions strong disapproval of embedding the concepts of cybercrime and cyberterrorism in legislation (understood as a measure that aims to eventually provide authorities with more tools of tight control over information spaces) stalls the process of state policy adaptation to the challenges of the fourth industrial revolution.

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ryptocurrencies may await the same fate, being assessed by some as a potential threat to the economic sustainability of the nation and thus obtaining a degree of relevance similar to that of cybersecurity. The opposition Liberty Korea Party has already taken advantage of the situation with ICOs when criticizing the administrations economic policy: the LKPs 2020 economic transformation plan (dubbed Wealth of People, paraphrasing Adam Smiths famous work) condemns the governments reluctance to legalize cryptocurrency funding as being counter-progressive and restrictive towards open market principles. The worlds crypto community has subscribed to that criticism, including Vitalik Buterin, the inventor of the Ethereum cryptocurrency, who urged the South Korean government to ease regulation of the blockchain industry, mentioning that the ICO ban will inevitably affect further introduction of blockchain technology due to the inherent interconnection between crypto and blockchain.

Moon Jae-ins administration, nevertheless, understands the complexity of the situation and has no intention to give up the idea of ICO legalization completely. As a preliminary and experimental step to the future blockchain liberalization, a decision has been made to establish a regulation-free zone in Busan, where some of the blockchain-related restrictions are now lifted in the form of digital voucher introduction. This voucher can be exchanged in local cash and also used in transactions in various blockchain services. Although its not the same as allowing ICOs, such initiatives demonstrate that the Korean government is open to a search for compromise, albeit a tentative and cautious one.

Such attention is paid to the ICO issue for political reasons. The North Korean factor in many respects shapes both South Korean domestic and foreign policy planning, and cybersecurity is no exception to this. The recent years have been marked by an extensive public discussion on the North Korean cyber threat, generally attributed to the activities of North Korean hackers. Whether the North Koreans are really involved in numerous cyberattacks (including the infamous Sony Pictures hack or WannaCry ransomware attack) or some parties are trying to exploit the image of North Korea as a hacking superpower for their own purposes is the subject of ongoing debate, but what remains crucially important is the high level of the securitization of the North Korean hackers issue in South Korea. Beyond that, a particular North Korean interest in cryptocurrencies as targets for cyberattacks is frequently noted: North Korean hackers are allegedly responsible for multiple attacks on both crypto exchanges and individuals owning cryptocurrencies. According to information provided by the United Nations Security Council Panel of Experts for sanctions on North Korea, North Koreans have stolen around $670 million in foreign currency and cryptocurrency over the 20152018 period; South Korean estimates reach tens of millions of dollars in cryptocurrencies stolen by North Korea in the last year alone. Such data and general discussion cannot but provoke a reaction aimed at efforts to protect the cryptomarket. The ICO legalization issue thus also belongs to the national security domain and the security discourse has the special claim on it, which would make it difficult for an opposing party to deregulate blockchain in case they come to power. The opposition would find themselves exactly in the same position as the current administration.

In light of the above, the prospects for lifting the ICO ban remain unclear, since some technical (lack of intellectual and technological resources as well as bureaucratic complexities) and economic (inherent volatility of cryptomarket) problems are amplified by posing it as a cybersecurity challenge. The steps toward deregulation taken by the government in trying to establish an experimental blockchain zone are important, but it can hardly be said that the complete legalization of blockchain is going to happen in the foreseeable future. The ICO conundrum can nevertheless be used as a powerful tool of anti-Moon Jae-in critique and, on top of unfolding public disapproval of Moons economic policy, it can possibly contribute to the undermining of the authority of current administration, even though the problem seems to go beyond the question of who holds power.

Valentin Voloshchak is a teaching assistant at the Department of International Relations at the Far Eastern Federal University

This work was supported by the Core University Program for Korean Studies through the Ministry of Education of the Republic of the Korea and Korean Studies Promotion Service of the Academy of Korean Studies (AKS-2015-OLU-2250003).

Original post:
What Hides Behind South Korean Cryptocurrency Regulation Policy? - The Diplomat

Trend or Anomaly? Lowest Quarterly Crypto Asset Thefts and Scams in Two Years

CipherTrace, the leading cryptocurrency and blockchain intelligence firm, released its Q3 2019 Cryptocurrency Anti-Money Laundering (AML) Report. Highlights of the report address cryptocurrency regulation, nefarious actors within the ecosystem, impending legislation, international trends and prevailing sentiments. Of particular note, CipherTrace conducted a first-ever comprehensive investigation of cryptocurrency exchange Know Your Customer (KYC) procedures and found that two-thirds (roughly 65 percent)of the top 120 exchanges lack strong KYC policies.

has been conducting examinations that include compliance with the funds Travel Rule since 2014.

On June 21, 2019, the Financial Action Task Force (FATF), an intergovernmental organization that standardizes global legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats, released Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers. In this Q3 Crypto AML Report, CipherTrace reveals that, with only seven months left for nations to pass laws and virtual asset service providers (VASPs) to comply with the guidelines, the majority of exchanges are not equipped to handle basic KYC, let alone comply with the stringent new funds Travel Rule included in the updated FATF guidance.

The research results revealed that the lions sharemore than two-thirdsof exchanges do not have good KYC. The breakdown of the ratings shown in Figure 1 are as follows:

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The FATF funds Travel Rule requires VASPs to securely transmit (and store) sender and receiver personally identifiable information (PII) with any cryptocurrency transaction valued at or exceeding USD/EUR 1,000. Consequently, stringent KYC is necessary to meet the Travel Rules base requirements.

Nations that fail to enforce FATF guidelines are often subject to political ostracization, financial sanctions, and are added to a FATF blacklist, which documents countries that it judges to be non-cooperative in the global fight against money laundering and terrorist financing. The U.S. has maintained a similar Travel Rule through the Treasury Departments Financial Crimes Enforcement Network (FinCEN) since 1996. Recently, Kenneth Blanco, FinCEN Director,explainedthat his organization has been conducting examinations that include compliance with the funds Travel Rule since 2014.

(The Travel Rule) is the most commonly cited violation with regard to money service businesses engaged in virtual currencies, said Blanco.

The Travel Rule has proven particularly problematic for privacy coins, whose primary use case, to obfuscate money transmitter data, seemingly contrasts with the information sharing required for compliance. In expectation of regulatory crackdown, many exchanges have pre-emptively removed privacy coin listings. However, 32 percent of exchanges, including those determined to have weak or porous KYC, still have privacy coins listed.

In its report, CipherTrace explains how exchanges and cryptocurrency developers have grappled with the privacy dilemma. Although the report does punctuate a concern for privacy coins that have no compliance strategy, CipherTrace affirms that recent reports of the death of privacy coins have been greatly exaggerated. In fact, many of the top privacy coin developers have already released statements (outlined in the report) on how they could comply with the Travel Rule.

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Outside of the significant KYC research findings and the Travel Rule, the CipherTrace Q3 CAML report discusses this quarters top stories related to cryptocurrency crime. After two years of large, high-profile exchange hacks and exit scams, there has been a significant reduction in cryptocurrency crime. Still, even with the lowest quarterly cryptocurrency thefts and scams in two years, 2019 still experienced a massive spate of crypto crimesmore than $4.4 billion to date.

While CipherTrace has no hard data to explain the Q3 dropoff except for potentially the anomalous nature of the QuadrigaCX and PlusToken frauds skewing the numbers in previous quartersone possible explanation is that government regulation of the industry is having a positive impact. CipherTrace had previously speculated that the shift from outright thefts to exit scams and other frauds perpetrated by insiders indicated that crypto exchanges had begun to adequately invest in hardening their IT infrastructures. This is because criminals, as they are wont to do, follow the path of least resistance.

CipherTrace cites maturing and sophisticated terrorist and criminal syndicates as partially responsible for the global regulatory clamp-down on cryptocurrency. Terrorists, other criminal organizations and their supporters and sympathizers are constantly looking for new ways to raise and transfer funds without detection or tracking by law enforcement. As regulators continue to stifle resources for criminal cryptocurrency use, terrorists are using more sophisticated methods to secure funding and launder money for operations and attacks.

Read More: HashCash Gets Into Precision Healthcare with New DNA Database Collaboration

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CipherTrace Q3 2019 Cryptocurrency AML Report: 2/3 of the Top 120 - AiThority

According to a recent Reuters report, cryptocurrency crime is higher in 2019 than 2018.

More money flowed through digital exchanges in 2019 but criminals saw that as an opportunity to hack blockchains, says the report.

More from the Reuters report:

Losses from digital currency crime soared to $4.4 billion in the first nine months of the year, up more than 150% from $1.7 billion in all of 2018.

The 150% increase in crypto theft and fraud reflects how criminals are adapting for bigger and better scores, Dave Jevans, CipherTrace chief executive officer, told Reuters.

Criminals chase money and the money is right here and ripe for the taking. Little attacks are often easy to defend against, but targeted attacks are far more lucrative, he added.

According to one of Reuters primary sources, crimes valued under $5 million often go unreported or underreported because larger crimes tend to pose larger threats to business.

That source also said the the industry is seeing fewer reported attacks but greater amounts of loss.

Read Next:Blockchain Benefits: Why Your AV Business Should Embrace Blockchain Technology

While blockchain technology in general can be beneficial to many different business and certain efficiencies are opened to said businesses by accepting cryptocurrency it is clear thatcryptocurrency crime has itself cornered far away from a solution.

If small and medium businesses dont feel that an incident will be looked into by the right authorities, it could have a freezing effect on adoption.

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Cryptocurrency Crime Spikes This Year and SMBs are Paying the Price - Commercial Integrator

Cryptocurrencies are not known for their stability as an investment, yet growing numbers of institutional investors are diversifying their portfolios with digital assets, according to a survey by Fidelity Investments.

The survey found 47% of institutional investors saw cryptocurrencies as suitable to add to their investment portfolios, and the same percentage of respondents appreciated the innovation behind the digital assets.

Institutional investors are using funds to invest in cryptocurrency and get exposure without [risk], as it is a cash settlement so you dont have any custody risk, nor do you have any [money laundering risk with] tainted coins. These are issues you have all the time otherwise, said Jan Brzezek, founder and CEO of Crypto Finance AG.

Crypto Finance is a crypto asset management, brokerage and storage platform that aims to mitigate the risk involved in investing in various cryptocurrencies. Despite the volatility of cryptocurrencies such as bitcoin, a growing number of investors are experimenting with them as an asset class.

Earlier this month, the New York State Department of Financial Servicesgranted a license to Fidelity Digital Assets, a cryptocurrency branch of Boston-based Fidelity Investments.

Tom Jessop, President of Fidelity Digital Assets, told Reuters that demand for digital currencies has been changing, and that they are Seeing strong demand and greater diversity of client types there are more traditional investors. When we started it was crypto funds and hedge funds.

Nonetheless, Bitcoin prices have recently dropped nearly 50% in value from their highest point in 2019, and is trading at around USD$7,000, according to CoinDesk.

One reason why investors may be seeking out cryptocurrencies is global economic instability affecting traditional assets amid an ongoing trade war between China and the U.S. Moreover, 46% of respondents to Fidelitys survey said that they found digital assets low correlation to other assets as a positive factor.

Hong Kong may become a testing ground for the use of digital assets as a financial instrument as the citys Securities and Futures Commission (SFC) recently announced anew regulatory framework for virtual asset trading platforms.

SFC CEO Ashley Alder said at Hong Kong FinTech Week that the new rules will cover aspects of financial security including custody, know-your-customer requirements, anti money laundering rules and market manipulation.

See related article: Behind the Scenes Conversation with: Ashley Alder, CEO of Securities and Futures Commission

A lack of regulation for cryptocurrency in numerous countries has been one aspect hindering wider adoption from traditional investors, and observers will watch to see how the legitimacy of obtaining an SFC license will affect the industry.

Other financial organizations experimenting with cryptocurrency include the owner of the New York Stock Exchange, Intercontinental Exchange Inc., and CME Group Inc.

Forkast.News Senior Editor Sam Reynolds spoke with Brzezek on the sidelines of Hong Kong FinTech Week to find out how traditional investors are starting to adopt cryptocurrencies.

Sam Reynolds: We are back at Hong Kong FinTech Week and were talking now with Jan from Crypto Finance. Crypto Finance offers a fund that gives investors some exposure to crypto. Jan, tell us about your product and how would it differ from investing directly in crypto.

Jan Brzezek: Yeah, thanks very much for having me here. Were not just doing asset management, we have two other offers as well, which is brokerage and custody infrastructure. But back to your question on asset management. What we do is we come from traditional finance.

We aim to fulfill all the best practice in the traditional world, and give clients and traditional investors access to this asset class without the operational risk on top, which is normally pretty high in crypto, and thats what most of the investors are still cautious on. Thats why they are not currently investing.

Sam Reynolds: Well, thats a good point. When you talk about risk, that is pretty much synonymous with crypto, so perhaps you can go into how this risk is avoided with your products.

Jan Brzezek: So what we do is we set up a CTA fund. Thats a long/short fund and algorithmically quant-driven fund where we just go long and short the bitcoin futures at a CME. Currently, the only CME bitcoin futures are the only regulated proper futures which have proper liquidity.

Obviously you have Bakkt now as well, but liquidity there is still rather small. And with that, you can really get this exposure without [risk], as it is a cash settlement so you dont have any custody risk, nor do you have any [money launderingrisk with] tainted coins. These are issues you have all the time otherwise.

Sam Reynolds: We had the Crypto Winter, which was a time where crypto assets, be it coins like Bitcoin or Ethereum or other projects, experienced quite a big chill. Talk to me about this Crypto Winter and how you guys survived it.

Jan Brzezek: It was definitely not fun for everyone in the space, but I think it was very healthy. There was such a hype before and now you really see most of the not really professional or sustainable businesses disappear. So you have very good companies here who are strong, tech-wise, business-wise, professionally set or professionally managed, and I think thats exactly what we need in the space.

Sam Reynolds: So we are at Hong Kong FinTech Week. What is your favorite trend youve seen here so far in the show floor?

Jan Brzezek: I think Asia is very progressive in general. For Hong Kong, obviously, as a very big financial hub, it was very important to be here as well and to meet investors, partners, other fintechs. You have very good companies here in Hong Kong in the crypto space.

And for me, it was good to feel a little bit the spirit, and to see whats going on, exactly what they are doing. Maybe we can cooperate. You know, its this is about an ecosystem. Its not just about you or me. Its about working together and really building this foundation and this technology.

Sam Reynolds: Exactly. Definitely seeing lots of that at the show, cooperation and building a stronger ecosystem. All right. Well, thanks for your time.

Read more from the original source:
More traditional investors are eyeing cryptocurrency to diversify their portfolios - Forkast News

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When bitcoin was first created by the mysterious Satoshi Nakamoto in 2009, it was intended to make virtual finance accessible to all people. A decentralized cryptocurrency would allow people to make money for themselves, as one could mine pieces of bitcoin and then cash in once they acquired a whole bitcoin. Today, one bitcoin is worth $7,082.05. While its not worth nearly as much, the newest cryptocurrency, called Pi, takes that goal a step further.

Bitcoin has waned in popularity and in value because mining is extremely expensive and requires extensive knowledge of the mining technology, which also contributes to CO2 emissions. There are also only 21 million bitcoin to mine, and it isnt clear if or when more will be created. So not only is bitcoin exclusive, but its also harmful to the Earth.

Luckily, the rise of bitcoin led to the development of other cryptocurrencies, known as altcoins. Most of these, such as Litecoin, Dogecoin and Ethereum, are more accessible than bitcoin but still follow the same basic model and algorithm.

For example, Litecoin has 84 million coins to be mined, which is over four times more than its predecessor. The code is also easier to learn, but this comes at a cost. To keep any one user or group from dominating the market, Litecoins scrypt makes it harder to generate coins, and as a result, Litecoin requires much more time and money to attain a solid investment. At this point, the crypto game is simply a pick your poison ordeal.

The newest cryptocurrency promises to change all of that. Pi is officially known as a social currency, backed by everyday people. Instead of using costly and complicated machines to mine, users simply mine using their smartphones. The basic idea is to get 100 million regular people to download the mobile app and be active miners, then Pi will have enough users backing it that itll become a legitimate cryptocurrency. Its because of these founding principles that Pi ensures it will be everything bitcoin is not: inclusive, practical and eco-friendly. But to understand how the network came to fruition, one only need look to Palo Alto, California.

Launched in March 2019, the Pi Network was created by three Stanford Ph.D. graduates: Dr. Nicolas Kokkalis, Dr. Chengdiao Fan and Vincent McPhillip. Dr. Kokkalis is a computer engineering Ph.D. and teaches Decentralized Applications of Blockchain at Stanford. Hes been working with blockchains since he began his early Ph.D., designing several social apps that have garnered over 20 million active users. That list includes Gameyola, the online gaming platform. He also helped found StartX, a Palo Alto startup designed to help entrepreneurs perfect their business models. With an extensive background in computer engineering and software, Dr. Kokkalis mainly focuses on the Pi Networks scrypt and code design.

Dr. Chengdiao Fan has been studying interactions between humans and computers for years. She is fascinated by the impact that recent technological advances have had on both individuals and society as a whole. Some of her research has involved developing software to monitor productivity, as well as improve social capital. For those who dont know, social capital is essentially networks that serve a functional purpose in society.

Dr. Fan graduated from Stanford with a Ph.D. in computational anthropology, and her work for the Pi Network is focused on social computing, envisioning how virtual currency can not only spark financial transactions, but also cultural exchanges. Dr. Fan explains, I believe their [cryptocurrencies] potential is far beyond the realm of finance, and will create values that have otherwise not been created or captured on individual, societal and global levels. My hope for Pi is the establishment of an inclusive economy for global citizens to unleash and capture their own value, and in turn, create value for society and the world.

Vincent McPhillip earned his bachelors degree in Political Science from Yale University. He spent time working for a Nongovernmental Organization called Bridgespan, distributing millions of dollars to communities across the United States to help develop their schools and local workforces. It was this work that cultivated his keen interest in the distribution of wealth, particularly as its related to upward mobility. This led him to enroll in Stanfords Graduate School of Business, where he discovered the power of cryptocurrencies.

What fascinated him about digital currency the most was its potential to help people find previously unattainable levels of wealth and prosperity. His official title at the Pi Network is social movement builder, as the majority of his duties involve managing Pis ability to empower everyday citizens with a tool to redistribute wealth and create a more financially literate populace.

The three founders all met at Stanford, and their individual interests resulted in the creation of the Pi Network and the currency known as Pi. What makes Pi different is its status as a social currency, which means the power of Pi lies in its capability to create its own security through peoples social networks. When users join Pi, they not only mine for it, they also create security circles, which indicates that users are trustworthy and validates transactions involving Pi.

To incentivize users to grow their security circles, the system is designed to allow users to mine at a higher rate as more people join their network. The basic mining rate is 0.20 Pi per hour, but someone with two others in their security circle mines at 0.27 Pi per hour. That may not seem like a huge difference, but it adds up over a 24 hour cycle.

If youd like to invest in Pi, its best to download the app and start mining immediately. Once the crypto reaches 100 million users, it will become a real currency and can be used in transaction. At that point, the standard mining rate will go down to around 0.1 Pi per hour. For now, higher rates are spurring the growth the app needs in order for Pi to become legitimate. The same can be said of the exchange rate, which is currently estimated at $200 per Pi. However, this is bound to change as the Network grows in numbers. It will likely remain high, as most crypto rates are.

To start mining, download the Pi Network app and set up an account. You have to open the app and hit the Mine button once every 24 hours, but you dont have to keep it open. It wont use up much battery either. You can also use the app to invite people to your security circle, see a breakdown of your mining rate and even chat with a Pi Team Member if you have any questions.

With an extremely helpful app and revolutionary technology, the Pi Network hopes to transform global finance by creating a unified community focused on creating their own net worth and expanding opportunities for everyone.

More here:
Meet Pi, the Much More Accessible Cryptocurrency - Study Breaks

The cryptocurrency community has almost become an alliance, a group of people spread across the world pledging their support to a new global financial system. The only real way of supporting cryptocurrency is to get involved with it or is it?

You can now do more than keep up to date on developments and promote it over dinner tables and glasses of red with your friends. More joy can be found in crypto in the TV series that have touched on crypto. And there are more than you think.

Here are the best TV shows that have ties to crypto. Some of them you have probably seen before but didnt realise the connection.

The most loved bunch of geeks must have dedicated an episode to cryptocurrency, surely? Well, they did and they would have a fortune to their name f they could only remember where they stored their mined coins all those years ago. They tell the story of the almost dream of crypto and they do it well. If only they had left it in a secure Luno Bitcoin Wallet, they would be rich now. Actually, they already are

Arguably the best insight into crypto with laughs along the way is found in Silicon Valley. In the first season, the characters wanted to start their own digital coin and in season five, they are enjoying the fruits of their crypto business. Diehard crypto fans need to know about Richard Hendricks and the gang.

The Good Wife is a show that has won around the masses, from lunchtime viewer to midnight TV bingers. In one episode towards the end of season three, the complexities of Bitcoin are laid bare for a court case and is a great insight into crypto for newcomers to the scene.

One of the successes of The Simpsons is that it includes a wealth of characters and personalities, just like our real world. And with different people, it is unsurprising that Bitcoin has become a part of some of their lives. There have been subtle Bitcoin hints at stages, but one particular episode features Krusty the Clown discussing his own bitcoin ventures.

The fact that TV makers are referring to Bitcoin is a great advert for the industry. It helps people to be exposed to it and be less fearful of something that is unknown or only whispered about between people in tech and finance circles. The power of TV and film to promote products and services is monumental, and with TV makers on side, it could have positive and lasting effects on the crypto sphere.

Although a Bitcoin film or crypto blockbuster has yet to be made, dont be surprised if one is in the pipeline or coming to a cinema near you soon!

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Best TV Shows About Cryptocurrency - Fortress of Solitude

Bold Profits DailyNovember 29, 2019

Paul Mampilly: Its Paul on the Iancast again. Im hijacking this permanently.

Ian Dyer: Fine with me. We have good discussions.

Paul: With Market Talk Im always trying to keep it tight down to three to five minutes. I have a lot of competition between Hudson and Amber. On this one, were going to do it long. How about that?Ian: Sounds good.

Paul: Lets start with dramatic news. You and I never sleep. I know you were up watching Bitcoin hit $6,500.

Ian: The whole time, yes. It bounced. The Bakkt futures we talked about last week, the expiration date came into play there. Bitcoin fell to below $7,000, then it bounced and went a little lower.

Again, around these expiration dates in the futures, all these new Bitcoins are being sent out from the actual futures company to all the investors. It creates an immediate supply that can have an effect on price.

Paul: Long term, I dont know anybody who would ever want to be short those futures. Youd have to deliver something of a fixed quantity. I remember seeing analysis that something like 30-40% of Bitcoin are being HODLed. Hold on for dear life, thats what HODL means.

The crypto world has its own language. We have HODL. We have FUD.

Ian: Thats fear, uncertainty and doubt, right?

Paul: Time to lambo for time to move. So 40% of all Bitcoin approximately is being HODLed. I read analysis on The Block, which is a website where they do crypto analysis, that hedge funds are short Bitcoin. This sounds crazy to me.

Ian: Me too. Theres a lot of questions around it. When you look at all these hedge fund managers that are into traditional investments like 60% stock and 40% bonds. Bitcoin doesnt fit anywhere in there and they dont know what to do with it. They dont think it will ever overtake gold as a safe haven asset.

Theres a lot of naysayers out there still which is surprising considering its survived for 10 years now almost 11 and it started out as a fraction of a penny and has grown into a $150 billion asset class all on its own with no promotion other than word of mouth. Its amazing what it has done so far. Its an alternative currency.

Paul: Exactly. Both Ian and I are on the record of seeing Bitcoin at much higher numbers. Ian has a $50,000 by end of 2020. Is that right?

Ian: Yes, $50,000 next year and somewhere around $100,000 in 2021.

Paul: I think thats conservative. I think we might hit $100,000 maybe even by the end of 2020. Heres why. To me, Bitcoin is the first exponential asset. It runs off a digital mechanism rather than a lineal mechanism which is the stock market, the bond market. In other words, it requires human intervention.

If you think about gold, you have to go dig it out of the ground. Theres a whole process. Bitcoin is completely digital. Theres no physical element to it. It can exponentially grow and its already done that. This is why it has so much skepticism because theres never been an exponential asset in history this is asset number one. Its going to be the most valuable.

Ian: Theres never been something like these halving events in any asset before. When the supply is limited by this much on one specific day, that day has a lot of say in the future of Bitcoin. Weve seen that because after the past few halving events, theres a gigantic rally by thousands of percent after the supply is cut.

Paul: I went back and modeled the Litecoin halving event to Bitcoin. For sure, its setting up to be a minimum of $25,000 to $30,000 the way it models. Most of the people who believe in Bitcoin largely never bat an eye at the volatility. Its the disbelievers who come to really give us a lot of grief about it.

Ian and I believe in Bitcoin. We think Bitcoin is going to the moon. Everyone can make their own judgment. There is that one indicator that we both track. We should tell people about it.

Ian: A company called Grayscale has their own Bitcoin trust. They own a lot of Bitcoin and sell it as a fraction on the stock market. You can buy shares of the trust backed by Bitcoin. Its a way of buying Bitcoin on the stock market, which is really interesting and not a lot of people know it exists.

Weve seen all these headlines and rumors of a Bitcoin ETF, but there already is one and it doesnt get that much press. It gives us a good indicator because when theres a lot of bullish or bearish sentiment on Bitcoin you will see the premium of this ETF start to go up or down. Right now its trading about 27% above the price of Bitcoin.

The stock market is giving Bitcoin a premium even though it fell 50% in just a few months. Thats a really bullish indicator to me. Its been as low as 10% and then it bounced from there. Now, like I said, its up almost 30% and people are paying a lot more for Bitcoin in the stock market because as of right now more people have stock accounts than crypto accounts.

Paul: Its a pain to get a crypto account. I have a coin-based account and you probably have one as well, but most people dont want to deal with that. I can tell you from tracking the Grayscale Bitcoin Trust, at the peak in 2017 the premium was something like 130-140%.Ian: It was more than double.

Paul: At the low about this time last year I believe the premium was something like 3-4%. Right now its nowhere near as pessimistic as it was back then so theres no reason to expect the premium to be as low. I dont believe it has traded at a discount any time recently.

All signs point to Bitcoin going higher sooner rather than later. I feel like we can leave that one right there and move to the next one. I think we should name the Iancast, Tesla, Bitcoin and Pot.Ian: Thats what we talk about. Its the fastest growing things out there.

Paul: Its also what most millennials like to trade and are invested in. When I did a Tesla, Bitcoin and pot video for my Tuesday Bold Profits, I got 30 comments. I dont think Ive ever received 30 comments on anything before. Thats where people are at.

So lets deal with Tesla. Cybertruck.

Ian: Yea. Cybertruck. Just to start off, Tesla has never had an advertisement before. Theyve never spent on marketing. Its crazy the publicity this stuff is getting. Literally everybody was talking about the Cybertruck over the weekend. We both pre-ordered one.

I personally love it. I know a lot of people are really skeptical of the design. I think its going to grow on people. Its a steel truck thats supposedly bulletproof, although the window did break during the promo.

If you throw a steel ball at any other car window its going to go right through the car window. Bulletproof glass breaks. It doesnt shatter but it breaks like that.

Paul: I follow Elons tweets. It turns out, when they hit the sledgehammer against the Cybertruck it cracked the window. Thats why when they threw the ball, it shattered the window. Elon said what they should have done is first throw the ball and then hit the Cybertruck with a sledgehammer.

Then the demo would have worked out fine. But, you know, thats how it is in life. I think they got $100 million worth of free publicity as a result of the windows breaking because everybody felt like they had to show it.

Ian: Yes. And they have more than 200,000 orders already in the first few days for this truck.Paul: I feel like the truck makers depend on trucks and SUVs. Between the Model Y coming out and now with this, its really time. Those companies are going to struggle. Maybe some of the others will end up being a competitor, but for now theres no competition of any kind for Tesla.

Ian: It even blows the gas-powered pickup trucks out of the water. I drive a pretty good truck and the Tesla can tow more, carry more, has a bigger truck bed and it faster. Its a super powerful truck. Ive heard a lot of people say it doesnt appeal to the kind of market that drives pickup trucks.

They want more power. What doesnt appeal? I guess the design? I think it will grow on people and I dont see it as a reason not to buy it.

Paul: My reaction was pretty much what everyone elses was. I didnt stay up for the launch, but I woke up and looked at it and then I thought, Whoa, thats different. Then about a minute later I thought, I really like it. Then five minutes later I thought, I need to order one.

Ian: Same here. I woke up and saw it and thought, Thats weird. Thats actually what it looks like? But then it grew on me. Its going to take time. Its what everyone imagined future cars would look like 20 years ago and now its finally here. I think its going to grow on people. Its kind of iconic.

Paul: Im watching the reaction on Twitter and people are having a slightly slower version of what we went through. It came out and now they think its kind of cool. I think this might be as fast selling as the Model 3. People say its only a $100 deposit and it doesnt mean anything. But 200,000 is a lot of people.

Ian: Even if 90% of them cancel thats more than $1 billion theyre getting from this already.Paul: You looked this up before we got on. Whats the short position in Tesla?

Ian: Its down. It was just 25% a few weeks ago. Its down to 16% now.

Paul: I have to tell you, in my entire 25 years of being on Wall Street I have never known a company as large as Tesla carry such a large short position. This is insane.

Ian: Theyre different. Different doesnt appeal on Wall Street. Everyone wants to think the same way, be safe, not get fired for liking some company that everyone else hates.

Paul: They talk about Tesla stock owners and car owners being a cult, but the people who hate Tesla are also a cult.

Ian: Pretty much. They do have a lot of haters millions.

Paul: They do. I always keep my Sentry Mode on when I drive my car because I dont want to run across someone who wants to do something to my car. We like Tesla at Bold Profits. You can also see we had a Tesla at our last franchise meeting and it was a super big hit. Amber gunned it and she loved it. Were trying to persuade everyone to get one.

Weve done Bitcoin, weve done Tesla, what about pot? I was on last week and the stocks all sold off. Then, boom.

Ian: Theyre back. Its going to be a ride, for sure. Thats how bottoms are. It goes up and down fast. Some of these stocks in the pot sector doubled from their bottom and went up 100% in a couple days. You dont see that when theres not some big buyer looming in the background.

Theres going to be buying in these stocks. They are bottoming out right now and theyre going to come back up. Its going to be great. The market is so bearish on these stocks right now because theyve gone down so much for months. Its the classic selloff weve seen where the end is the worst part. Its like that with anything in the stock market.

Paul: This is so true, Ian. You are absolutely right. Most people Im included in this, Ive never had perfect timing start buying probably a month too early. Then they underestimate how much that last drop is going to be. Thats where they get shaken out and they sell.

Its also where they get emotionally blown out. They are not going to come back. Then they end up missing it.

Ian: They are the ones who push it up at the end toward the bubble phase.

Paul: Thats right. Then they come at the end and signal the very top. Im going to guess just by the sharpness of the move in the ETF MJ, Canopy, Cronos and Aurora, that theres a combination of short covering as well as actual long buying going on.

Ian: Yes. Some of these went up 100% in a couple days and a lot of them went up at least 40% in the first initial bounce.

Paul: In my experience, when you have the sharp, off-the-bottom jump of 40-50% it means theres actually a big buyer. A strong hands buyer that is going to own and is signaling they are going to buy more. This is why market makers keep lifting the price up to find sellers who are willing to sell.

In my experience thats a good sign. Were bullish on pot and we have it across a ton of our services. Did you end up putting on that trade for the pot company?

Ian: We did. In Rebound Profit Trader we have a pot trade. Were probably going to do another one very soon. Were bullish on that. In Rebound Profit Trader the goal is to get stocks at the bottom and buy call options on them, which go up faster than the stock. You can make hundreds of percent in just a few days by doing that if you time it right.

Here at the bottom of the pot crash we think its a really good time to buy calls on these beaten down pot companies.

Paul: We were chatting before on Slack and you said we had eight 60% winners in Rebound Profit Trader? I forget the numbers.

Ian: Weve had 10 winners in the past month.

Paul: 40%, 60%, something in that range?

Ian: Yes, a lot of them are more than 40%. Biotech has been very strong. We just closed our fourth biotech gain of more than 50% all four have come within the past week. Its been a good run. Biotech is looking like a good place to be too.

In our other options service Rapid Profit Trader we just closed a biotech gain of about 45%. We only held it for three days. You can make money really fast when youre in the right place in the market.

Paul: They say biotech is the poor mans lottery. Its been true. I have traded a ton of biotech in my life because you can have incredible, fast gains. You put options on top of that and were talking about a 12-engine rocket that can zoom up instantly. 45% in three days is just wow.

If youre interested in any of Ians services, he runs two phenomenal options services: Rebound Profit Trader and Rapid Profit Trader. They have slightly different strategies but they have a common goal to make you money really fast. Check into the description below.

A little market update. What are we seeing?

Ian: Were recording this Monday. Today the market is making all-time highs. I saw the ETF we track for biotech XBI is up 4% today. Biotech is still moving higher. S&P 500 is making all-time highs. The Russell 2000, which is the small- and mid-cap stocks is breaking out. Its at a 52-week high as well.

Its looking really good right now. Its looking really good to close the year out.

Paul: Remember, the way we look at the world 52-week highs are important because it shows confidence, it shows people are pushing money in and theyre willing to pay higher prices for it.

If you like the content you are seeing here on the Iancast, subscribe to the channel, give this video a thumbs up, share it with your friends and comment below on what youve been experiencing during this bull market. You can also follow me on Twitter @MampillyGuru.

Whats your Twitter, Ian?

Ian: Its @IanDyerGuru. Give me a follow.

Paul: Thats what we have for this Iancast for today. Ian, well have another one next week.Ian: Yeah. See everyone next week. Have a great weekend and hope you had a good Thanksgiving.Paul: Same here. This is Paul saying bye.

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