Category Archives: Cryptocurrency

The worlds longest-running television series is giving its viewers the low-down on cryptocurrency. In Frinkcoin, episode 13 of season 31 of The Simpsons, airing on Sunday, the animated show dedicates over 80 seconds to educate its viewers on the basics of virtual coins.

The scene begins with Professor Frink introducing cryptocurrency to Lisa Simpson by turning on the TV so that TVs most beloved scientist, Jim Parsons, can explain how digital tokens work.

Parsons discussion is reminiscent of educational shows for kids during the early 2000s. It comes with an animated book bursting into song to describe how a distributed ledger works.

Im a consensus of shared and synchronized digital data spread across multiple platforms from Shanghai to Grenada. Each day Im closer to being the cash of the future. Not in your wallet, Im in your computer.

While the book is belting it out, the show shifts into a scene where Parsons hits the jackpot and the slot machine pushes out Bitcoin. It also features a clip where the book is relaxing on a Caribbean island.

Parsons then takes over to point out the connection between the ledger and the blockchain.

When you use the currency, the transaction is recorded in the ledger. And when one ledger book gets filled up, we add to a chain of previous books. Thats the blockchain.

While cryptocurrency is a space thats chock-full of technical jargon, the show manages to deliver an explanation that appeals to the average Joe.

The Simpsons, which draws an average of over 4 million viewers, gives mass exposure to the one minute and twenty-second clip on cryptocurrencies. You can watch the entire scene below.

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Featured Image: Shutterstock/sirikorn thamniyom

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The Simpsons Just Gave Cryptocurrency Massive Mainstream Exposure - The Daily Hodl

Ever wonder what cryptocurrency is actually all about? Jim Parsons might have the answer.

TheBig Bang Theorystar did a cameo inThe Simpsonsearlier this week, in the season 31 episode titled Frinkcoin.

In the episode, Lisa Simpson sets out to write a paper about Professor Frink, who tells her hes developing his own cryptocurrency.

Sharing the full story, not just the headlines

At one point, he introduces TVs most beloved scientist, Mr Jim Parsons.

Parsons, of course, isnt actually a career scientist, but rather played one for 12 years inThe Big Bang Theory, in which he portrayed theoretical physicist Sheldon Cooper.

Reese Witherspoon, Nicole Kidman, Laura Dern, Zo Kravitz and Shailene Woodley combine to form TV gold in Big Little Lies. But the second season, despite the welcome addition of Meryl Streep to the cast, failed to recapture the allure of season one. Originally, the series was based on Liane Moriarty's 2014 novel of the same name and perhaps it should have ended where the book did.

Hulu

The first season of The Magicians was intriguing, whimsical, touching and deliberately kitschy all at the same time. While it's always nice to revisit the magical world of Fillory, the show's subsequent seasons never rose to the level of its initial installment.

Netflix

This writer disagrees, but Stranger Things was a popular pick in a recent Twitter discussion about TV shows that should have wrapped up after one season. It can be argued that seasons two and three didn't quite measure up to the excitement of the first one though without them, fans would never have got to witness Steve Harrington's transformation from annoying jock to amazing babysitter to our younger heroes. Something to ponder.

Netflix

Regardless of whether you liked or disliked the premise of 13 Reasons Why, from a purely televisual standpoint, the first season was good suspenseful, at times touching, and landing some strong sequences. It all unravelled with the lacklustre second and third seasons. Like Big Little Lies, 13 Reasons Why was based on a book (this one by Jay Asher) and should probably have stuck to the material it provided.

Netflix

Not to take away from Mahershala Ali's performance in season three but True Detective's second and third seasons didn't prove as entertaining as the first one, starring Matthew McConaughey and Woody Harrelson.

Hulu

Prison Break had a simple concept: Michael Scofield (Wentworth Miller) gets incarcerated on purpose because he has a master plan to escape along with his brother, who's been wrongfully convicted. And sure enough, the two escape at the end of season one along with six other inmates. This seemed like a natural conclusion for the show, but it continued for four more seasons.

Hulu

Westworld season one was clever, beautifully shot, and achingly suspenseful. After that things just got... complicated.

Hulu

Bloodline was a critics darling as a result of its first season, but seasons two and three only attracted mixed reviews. The show, led by Kyle Chandler, Ben Mendelsohn, Linda Cardellini and Norbert Leo Butz, concluded in 2017.

Netflix

Heroes was the talk of the town at the time of its premiere in 2006. After an acclaimed first season, the second installment wasn't as well received and seasons three and four experienced a similar fate.

NBC

Reese Witherspoon, Nicole Kidman, Laura Dern, Zo Kravitz and Shailene Woodley combine to form TV gold in Big Little Lies. But the second season, despite the welcome addition of Meryl Streep to the cast, failed to recapture the allure of season one. Originally, the series was based on Liane Moriarty's 2014 novel of the same name and perhaps it should have ended where the book did.

Hulu

The first season of The Magicians was intriguing, whimsical, touching and deliberately kitschy all at the same time. While it's always nice to revisit the magical world of Fillory, the show's subsequent seasons never rose to the level of its initial installment.

Netflix

This writer disagrees, but Stranger Things was a popular pick in a recent Twitter discussion about TV shows that should have wrapped up after one season. It can be argued that seasons two and three didn't quite measure up to the excitement of the first one though without them, fans would never have got to witness Steve Harrington's transformation from annoying jock to amazing babysitter to our younger heroes. Something to ponder.

Netflix

Regardless of whether you liked or disliked the premise of 13 Reasons Why, from a purely televisual standpoint, the first season was good suspenseful, at times touching, and landing some strong sequences. It all unravelled with the lacklustre second and third seasons. Like Big Little Lies, 13 Reasons Why was based on a book (this one by Jay Asher) and should probably have stuck to the material it provided.

Netflix

Not to take away from Mahershala Ali's performance in season three but True Detective's second and third seasons didn't prove as entertaining as the first one, starring Matthew McConaughey and Woody Harrelson.

Hulu

Prison Break had a simple concept: Michael Scofield (Wentworth Miller) gets incarcerated on purpose because he has a master plan to escape along with his brother, who's been wrongfully convicted. And sure enough, the two escape at the end of season one along with six other inmates. This seemed like a natural conclusion for the show, but it continued for four more seasons.

Hulu

Westworld season one was clever, beautifully shot, and achingly suspenseful. After that things just got... complicated.

Hulu

Bloodline was a critics darling as a result of its first season, but seasons two and three only attracted mixed reviews. The show, led by Kyle Chandler, Ben Mendelsohn, Linda Cardellini and Norbert Leo Butz, concluded in 2017.

Netflix

Heroes was the talk of the town at the time of its premiere in 2006. After an acclaimed first season, the second installment wasn't as well received and seasons three and four experienced a similar fate.

NBC

People think Im a nerd, but Im actually super cool, says Parsons. Thats why Im here to talk about the really cool subject of distributed consensus-based cryptocurrency.

He then launches into anexplanation of the inner workings of cryptocurrency supported by a song claiming cryptocurrency is the cash of the future.

This assertion prompted some to say thatThe Simpsonscould end up predicting the future in that way.

The series has a history of incorporating plotlines that later end up coming true.

Parsonss explanation is followed by a sardonic disclaimer that reads in part: Cryptocurrency is a system that does not rely on a non-cryptocurrency central authority, but instead relies on a non-centralised distributed consensus of cryptocurrency ownership.

Using the word cryptocurrency repeatedly when defining cryptocurrency makes it seem like we have a cryptocurrency novices understanding of cryptocurrency.

Well, that is a total pile of cryptocurrency.

Read the rest here:
Simpsons predicting the future again: Jim Parson of The Big Bang Theory explains what cryptocurrency actually is - The Independent

25 February 2020

BakerHostetler

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Since Friday, Feb. 14, 2020, decentralized lending protocol bZxwas twice exploited by attackers using a combination of methodsinvolving flash loans and price manipulations to profit oncryptocurrency swaps, resulting in total losses of approximately$954,000. The first attack took place on Feb. 14 and resulted inthe attacker pocketing 1,193 ETH (approximately $318,000) after abug in the bZx's smart contract code failed to run standardsafety checks that should have prevented a highly leveragedposition on ETH/BTC trading pairs. The second attack took placedays later, resulting in losses of 2,388 ETH (approximately$636,000), perpetrated, in part, via oracle manipulation on theprice of synthetic USD Coin stablecoins.

Last week, the IOTA Foundation shut down the entire IOTAcryptocurrency network after hackers exploited a vulnerability inTrinity, the mobile and desktop wallet app developed by the IOTAFoundation, and stole approximately $1.6 million from at least 10high-value IOTA accounts. IOTA announced this week that it hadreleased a "safe" version of Trinity in response.

Earlier this week, crypto exchange FCoin notified users that itwas unable to process withdrawal requests, as it revealed a nearly$130 million shortage of assets, a result of system problems and"decision errors" made by exchange leadership. Theexchange's novel yet controversial model, called"trans-fee mining," designed to incentivize trading byissuing exchange tokens, made FCoin one of the largest exchanges byvolume.

For more information, please refer to the following links:

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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Manipulation, Hacks And System Errors Lead To Losses For Cryptocurrency Users And Exchanges - Technology - United States - Mondaq News Alerts

XRP, the native token of the Ripple blockchain, has slipped by more than 23 percent from its year-to-date high of $0.34. And according to a popular analyst, the token is likely to fall further.

Full-time trader Bleeding Crypto highlighted XRPs bearish potential in a tweet published earlier Tuesday. He noted that the cryptocurrencys spot rate could move lower to fill gaps left open by its futures contracts, drawing comparisons from similar phenomena in bitcoin markets.

Bleeding Crypto exemplified his prediction in a chart that showed four unfilled futures gaps. The nearest blank area coincided with the $0.251 level whilst the deepest one was near $0.203. Considering XRP would continue declining to fill the last gap in the queue, its move downhill would take the crypto down by up to 25 percent.

Ripple (XRP) heading lower to fill futures gaps | Source: Bleeding Crypto

There are 4 more gaps lower to go. If you dont think it will get filled, please load up now. My Gap theory has a 90% success rate, said Bleeding Crypto.

The pessimistic statements joined a few bearish forecasts for XRP against an otherwise bullish scenario. The cryptocurrency lately surged by close to 99 percent from its bottom-out level of $0.201. Traders with upside sentiment, therefore, treated XRPs latest declines as natural price corrections, with one even forecasting a price swell towards $0.70.

On the other hand, the indicator of HODL2100K, the IchiEMA, whose flashing the last time had sent XRP 1,000 percent higher, moved into its bullish territory yet again. That allowed a few bulls to see XRP at a $3 valuation this year.

Among the bears included veteran trader Peter Brandt who expressed the possibility of XRP falling towards $0.207. The noted financial analyst cited a textbook technical indicator, dubbed as Head & Shoulder, for his downside sentiment. Last checked the XRP price was still trading in the range illustrated by Mr. Brandt.

The downside target set by Mr. Brandt coincided with the futures gap highlighted by Bleeding Crypto.

XRPs gains came in the wake of a macro-crypto price rally. The Ripple token jumped almost in tandem with bitcoin and rival altcoins and its price correction followed similar downside moves in other assets.

Mati Greenspan, the founder of Quantum Economics, said earlier this month that bitcoin and altcoin were rallying because of investors growing appetite for risk-on assets. The popular market analyst said that traders attempted to hedge into altcoins against the risks concerning the Coronavirus pandemic, adding that these assets offered better profits.

The evidence of that is the altcoin season, Mr. Greenspan told the BlockTV. Altcoins are outperforming bitcoin consistently on a day-to-day basis pretty much since the beginning of this year [] It means investors are looking to take risks, which is pretty much different from safe-haven trading.

Bitcoin lately snubbed its safe-haven tag as risks about the Coronavirus escalated, showing a doubtful correlation with the crisis. The cryptocurrency failed to sustain its climb above $10,000 that further impacted its rival assets, including XRP, to cross above their own crucial price ceilings.

That has left the crypto market in the hands of technical narratives.

Here is the original post:
Analyst: Ripples XRP Could Fall by Another 25% Due to This Reason - newsBTC

One of the latest episode of "The Simpsons" aired has just aired featuring Jim Parsons of Big Bang Theory appearing as a guest star to explain cryptocurrencies and how a blockchain works.

In the song and dance predicts cryptocurrency to be the future money, the animated ledger states: "Each day I'm closer, to being the cash of the future. Not in your wallet, I'm in your computer!

At the end of Jims talk, there is a subliminal message on screen. It further explains how cryptocurrencies work, part of which says:

"Using the word "cryptocurrency" repeatedly while defining cryptocurrency makes it seem like we have a novice's understanding of cryptocurrency. Well that is a total pile of cryptocurrency. In this system, rules are defined for the creation of additional units of cryptocurrency. They can be generated by fiat like traditional currency or just thrown around randomly or all given to LeBron."

The crypto community welcomed the episode. Altcoin Daily account has commented:

The Simpsons did it! Cryptocurrency explained to Lisa by the great Jim Parsons on #TheSimpsons! It's the money of the future! Bullish!

Some comments to the tweet also pointed out that the Simpsons has a reputation for predicting the future over the years. Ten years ago it showcased Donald Trump as the president of the U.S., and more recently guessed the Game of Thrones series finale.

Read more:
Crypto Appears on Simpsons Where Jim Parsons Explains It's 'Cash of the Future' - Cointelegraph

The cryptocurrency market is on Friday being painted by one massive green brush. The gains come to correct the negative correction recorded this week when Bitcoin dived to $9,500 twice, Ethereum touched weekly lows at $245 while Ripple crashed to $0.26. On the flip side, the bulls have made a decision to end the week in the positive ahead of the weekend session. Some of the market leaders include Ethereum Classic up 3.69%, EOS after growing 3.03% on the day and Litecoin with a 3.27% hike.

The fight against the Coronavirus could see the Peoples Bank of China (PBOC) accelerate its plans to release its digital currency according to remarks by the central banks former president Lihiu Li. His argument is that a digital currency system presents efficiency, cost-effectiveness, and convenience during a time of distress. Li is currently the head of blockchain at the state-run National Internet Finance Association.

The government has already taken measures such as quarantining the old paper cash and made a fresh distribution of 600 billion yuan to stop the spread of the virus, especially in Huobei. China has also restricted movements in affected regions.

Russias Federal Security Service (FSB) is in agreement with the Central Bank of Russia that digital payments should not be allowed in the country. A letter sent to the President, Vladimir Putin from the Deputy Prime Minister Dmitry Chernyshenko indicated that the two government institutions have agreed to outlaw cryptocurrencies as a means of payment.

A decision was made following a meeting in the government to establish a ban on the issuance and use of cryptocurrencies as a means of payment.

Bitcoin price is settling above $9,700 after recovery from the range between $9,500 and $9,600. The resistance at the 50 SMA at $9,800 on the 2-hour chart must come down to open the door for the final leg towards $10,000. The RSI signals that bulls are relatively in charge, but the sideways movement shows that the current session is likely to be characterized by sideways trading.

Ethereum is trading at $261 after adding about $4 to the opening value at $257. An intraday high as been formed $264. Further movement north is limited by the developing bearish momentum and the volatility levels.

Ripple price, on the other hand, teeters a $0.2757 following a jump from $00.2711 (opening value). Upward movement have failed to rise past $0.2786 (intraday high) leaving the resistance at $0.28 untested.

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Cryptocurrency Market Update: Hostility ousted as Bitcoin, Ethereum and Ripple make blissful moves - FXStreet

Cryptocurrency derivatives exchange, FTX, launched in May 2019, now ranks as a top 5 exchange by adjusted volume. Moreover, such has been their rise, they now seek to expand operations with a $15 million equity round. This puts a $1 billion valuation on the company.

In nine short months, FTX has managed to make a huge splash in the world of cryptocurrency exchanges. Yesterday, the adjusted trading volume reached an all-time high for the platform, at around $1.3 billion.

FTX provides a futures trading exchange for digital assets. Their platform features an easy-to-use interface offering futures trading, leveraged tokens, as well as an over-the-counter (OTC) portal.

Much of FTXs rise through the ranks can be attributed to trading firm Alameda Research, who founded FTX in the spring of last year. Alameda Research trades up to $1.5 billion in cryptocurrency each day, and are responsible for managing $100 million in digital assets.

This allows us to trade hundreds of millions of dollars per day, accessing all of the major sources of flow and liquidity. This allows us to show tight spreads, for large size, consistently.

Indeed, as major shakers in the world of cryptocurrency, Alameda Research also functions as a market maker. Their role in the cryptocurrency markets is such that they rank as the biggest provider of liquidity on Bitfinex.

Bitfinex leaderboard. (Source: bitfinex.com)

And while many institutions and individuals prefer to remain anonymous, Almeda Research, and CEO, Sam Bankman-Fried take great pride in standing up to be counted.

One of the things about a leader board is, its actually quantifiable and verifiable. Its something that made it stand out from other firms.

Not only that but FTX market themselves as a platform built by traders, for traders. And this is something highly evident in the raft of features available which makes it a highly liquid cryptocurrency exchange. For example, FTXs liquidation engine prevents clawbacks by slowly closing overleveraged positions while minimizing the impact on the market.

Sam Bankman-Fried, CEO and co-founder of FTX and Alameda Research started the firm in his Berkeley apartment in late 2017 using a combination of his own money and by borrowing from family and friends.

He cut his teeth as a trader on Jane Street Capitals international exchange-traded fund desk. Here he worked for three years trading traditional investments such as currency and equities.

But he began getting interested in cryptocurrency when he spotted simple LTC arbitrage opportunities based on a 30% premium of LTC on Coinbase.

Profile of Sam Bankman-Fried. (Source: alameda-research.com)

On launching FTX, Bankman-Fried spoke about his vision for the company, and how he sees FTX as different from other cryptocurrency exchanges:

In creating FTX, I wanted to build a platform for professional traders like me. While also bringing crypto trading to the mass market and first-time users.

Read more:
How This Cryptocurrency Platform Grew From Nothing to Top 5 Exchange Worth $1 Billion in 9 Months - newsBTC

Tax season is one of the most dreaded times of the year for many, and when the added confusion of filing crypto returns is thrown into to the mix, things can get even stickier. News.Bitcoin.com recently talked with Clinton Donnelly of Donnelly Tax Law, a service that specializes in crypto returns. The U.S. Treasury-licensed Enrolled Agent shared some of his opinions and insights regarding crypto audits and what triggers them, as well as an example from a client.

Also read: Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Out of Business

The IRS announcement that thousands of tax warning letters would be issued to United States crypto holders last summer elicited calls for greater clarification and guidelines, but it hasnt stopped the Internal Revenue Service audit train from steaming forward. The presence of a new crypto question on 2019s Schedule 1 form has individuals concerned about reporting their crypto assets correctly more than ever, and according to experts, this is for good reason.

That is massive says Enrolled Agent Clinton Donnelly of Donnelly Tax Law. This question in the 2019 return it forces every taxpayer in the United States to make a decision whether or not theyre going to be honest or not on this question, because its a yes or no and when you sign the tax return its in small print, it says under penalty of perjury I have reviewed this return and its true, complete and correct, so failing to check the box is incomplete. He emphasizes:

Its a yes or no its kind of like coming out of the closets Anybody who was a trader in 19, well, they were probably a trader in 17 as well.

Donnelly went on to explain that by reporting crypto gains in light of the new question, many crypto holders will inadvertently reveal that they first acquired their digital assets years back, which calls their previous years returns into suspicion and makes an IRS investigation more likely.

Donnellys service has so far seen two cryptocurrency audits with its clients, and the tax professional is interested in learning more about what triggers an IRS investigation. One client claimed to have never received the 2019 warning letters, but was audited all the same. According to Donnelly, the focus of the IRS is not so much on the methods by which capital gains are reported, but that all inputs and outputs are accounted for, and that the AML (anti-money laundering) narrative remains in central focus.

I think people sense that the government views crypto traders as possibly engaging in some sort of crime, Donnelly notes. We shouldnt feel that way, but we do. He cites a recent Chainalysis report showing the darknets share of crypto usage is less than 1% of the total. The tax expert went on:

I would say most of these questions, as you read them, fall into the category of anti-money laundering My suspicion is that if the IRS wanted to crack down on every American that traded cryptos they could do it, but the backlash from voters back to congress would snap the IRS in the face and they would be sent packing So I think as long as they stay on the money laundering theme, then they look above board.

Donnelly also shared a non-confidential snippet of a clients IRS audit letter for a 2017 return relating to just under $40,000 in crypto gains. This client claims to have never received the warning letters from the agency.

Donnelly emphasized throughout our conversation that it is not so much the various means by which a crypto holder reports gains using different tax tools can and often does result in slightly different numbers but that the IRS wants to verify total asset amounts add up, with all inputs and outputs accounted for. Especially where cash is concerned. The image of the form above lays out in detail what types of specific information the agency wants to know.

Donnelly further detailed that high frequency traders are sometimes concerned when seeing large proceeds calculated for their trades on 1099-K forms from crypto exchanges, but that costs are not yet factored into these amounts. This can make some traders understandably hesitant to file, but audits are less likely if the proceeds amount is reported fully.

Half the court cases in tax court are because the IRS didnt do the procedure right, the due process, if you will, Donnelly details, but theres this form called the FBAR form that form is not a tax form, its not a part of the tax laws. The IRS administers it, but its not a part of the tax laws. Its part of the Bank Secrecy Act, Title 18. He goes on:

Prosecutors love the FBAR form because they can say you didnt file it, you should have, whammo, heres the penalty and we can assess it right now. Theres no due process defense on that.

The FBAR form has to do with assets held in foreign bank accounts, and must be filed by U.S. taxpayers if the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported. The FBAR brings Fincen (Financial Crimes Enforcement Network) into the tax action, and has to do directly with combating money laundering, so Donnelly suspects this may be part of the reason the AML narrative has become the focus of crypto tax reporting. It is also a frightening prospect for crypto traders utilizing overseas exchanges and accounts.

The penalty for the anti-money laundering form this is FBAR is $10,000, plus $10,000 for every foreign account that youve never reported, Donnelly elaborates. If you never filed the FBAR, you just told the IRS all the exchanges you were on you just incriminated yourself. They say ah, well youre on Huobi, Kucoin, Binance, you got five of em. Thats $50,000 plus the $10,000 I originally smacked you with for not filing a form. You didnt do this in 17, you didnt do it in 18, you didnt do it in 16 either, so I can just add these penalties up. Before you know it youre up to $200, $300,000 and they can get worse if they want to be hostile about it. He concludes:

The IRS controls the narrative. Were not going after crypto traders, were going after people that are violating the anti-money laundering laws Its implicitly dirty, right? to be caught for money laundering.

Donnelly says his mission is to help people file what he calls a bulletproof tax return, as the penalties for simple mistakes and omissions can be so egregious, and so few tax advisors know how to help their clients when it comes to crypto.

News.Bitcoin.com also regularly publishes articles on available tax tools and software which may make the job of reporting easier for bitcoiners. Of course, when dealing with unpredictable and potentially dangerous groups like the IRS, individuals should exercise due diligence and research thoroughly before pursuing any course of action. Not surprisingly, the permissionless, peer-to-peer money designed to fight financial censorship that is bitcoin, has fast become a prime target for the very groups of middlemen, banks, politicians and other third parties it makes largely unnecessary.

What do you think of Donnellys views on crypto tax audits? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock, Cryptotaxaudit.com, fair use.

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Graham Smith is an American expat living in Japan, and the founder of Voluntary Japanan initiative dedicated to spreading the philosophies of unschooling, individual self-ownership, and economic freedom in the land of the rising sun.

Read the original here:
How the IRS Audits Cryptocurrency Tax Returns - Filing Expert Shares Example, Insights on AML Focus - Bitcoin News

Thesuicide note cited personal reasons. But Ashraf Nusubuga, a radiology studentat Kampalas Makerere University Ugandas leading higher educationinstitution didnt hang himself over a love affair gone wrong or because ofacademic pressure. The 22-year-old killed himself after losing money he hadinvested in a bogus cryptocurrency firm.

He had put all of his money and some he had borrowed into what turned out to be a Ponzi scheme, lured by the promise of high returns, according to Luke Oweyesigire, deputy spokesperson for Kampala Metropolitan Police. But Nusubuga isnt the only one to have fallen victim.

A series of large cryptocurrency scams is rocking Uganda, turning the East African nation into an unlikely hub for fraudulent firms claiming to offer digital currencies, while preying on weak governance and low financial literacy. Other major cryptocurrency scams in 2019 involved developed economies Japans BITPoint exchange lost $28 million, and con men in the U.K. and the Netherlands stole $27 million from Bitcoin users. Globally, cybercriminals stole $4.3 billion from users and exchanges last year. But Uganda is the worst hit by far.

At least five cryptocurrency firms have closed shop and walked away with a total of more than $26 million of their clients money in the past six months. From students and churchgoers to army officers and government officials, the victims span Ugandan society. Robert Bakalikwira, a criminal investigations officer probing these cases, estimates that in all, 200,000 Ugandans have lost about $1 billion, or almost 4 percent of the countrys GDP of $28 billion, over the past two years.

Ugandans are better off investing their money in cows than plunging into the unknown world of cryptocurrencies.

Patrick Mweheire, chairman, Uganda Bankers Association

These scams are different from those in the West, where hackers have stolen from exchanges or robbed from people. In Uganda, fake firms claiming to offer cryptocurrencies are luring people to buy in, before walking away with their money. The countrys growing crisis holds lessons for other poor nations with weak regulations unable to keep up with the sometimes misleading promise of technology.

We have receivedvery many cases of cryptocurrencyscams,says Fred Enanga, Ugandas national police spokesperson. We advise Ugandans toavoid being fleeced off their money in such deals.

But the role of President Yoweri Musevenis government is coming under scrutiny. It has set up a 10-member commission of inquiry, and is issuing public statements to alert Ugandans that the government and central bank dont recognize any cryptocurrency. Yet even though the country has no regulations for the sector, the government hasnt made it illegal to operate a cryptocurrency firm in Uganda. In parliament earlier this month, an MP pointed out that Kwame Rugunda, the son of Prime Minister Ruhakana Rugunda, is CEO of CryptoSavannah, a cryptocurrency advisory firm.

Museveni himself appeared to be an early proponent of cryptocurrencies. At an event in Kampala in January 2017, where Bank of Uganda Governor Emmanuel Mutebile said he wasnt confident about the credibility of cryptocurrency, the president rebuffed him. Museveni said Mutebile wasbeing dogmatic, and emphasized the need to embrace technology.

Many ordinary people in the country which has the lowest literacy rate in the region took it as a government endorsement of digital currencies. A flood of firms some legitimate and several fraudulent entered the country.

Museveni is partly responsible for our suffering, says 50-year-old Ken Wamala from the southern Uganda town of Masaka who says scams have cost him around $41,000.

The fraud firms include Dumanis Coins, whose management disappeared on Dec. 3, 2019, after collecting $2.7 million in Ugandan shillings. More than 10,000 people had invested in the company. Police have arrested one of the firms directors but are still searching for four others, says Kampala police spokesman Patrick Onyango. John Kalevu, whose shop is next to Dumanis Coins former office, says he came to work one day to find the cryptocurrency firms doors open, but the office empty.

Global Cryptocurrencies closed overnight in November. Andrew Kagwa, its chief executive, was arrested after two weeks on the run. More than 10,000 people had invested $8.2 million in the firm. Lion Cryptocurrency closed down in October 2019, taking with it $5.4 million in investments made by 17,000 people, says Henry Musagala, the investigating officer. One Coin, another of the fraud firms, duped 12,000 people out of $6.8 million. The D9 cryptocurrency company shut shop with $3.2 million in investments from 9,000 people.

Other cryptocurrency companies that have closed since early 2018 leaving thousands of people confused and stranded include Team, Dutch International, Finetegry and Fital-Science.

Employees of these firms havent escaped unscathed either. Sheila Nassali, a nurse by training, recalls how a Global Cryptocurrency director convinced her to join the company as a secretary and a customer. She was shocked when the director disappeared, leaving me to face angry customers who wanted to get their money.

Patrick Mweheire, chairman of the Uganda Bankers Association, says, Ugandans are better off investing their money in cows than plunging into the unknown world of cryptocurrencies.

But experts and former employees of these firms say ignorance isnt the only problem. Muzamiru Kigundu, who used to work with Lion Cryptocurrency before it shut down, alleges that many government officials are among the owners of cryptocurrency companies mushrooming in Uganda. That lends the industry legitimacy in the eyes of ordinary people. The directors of these firms rent fancy offices and drive expensive cars to create the impression that theyre wealth creators, he says.

Ugandas corruption it ranks 160 in Transparency Internationals index is also to blame. Some of the fake firms were registered as companies even though they didnt meet statutory requirements. The major cause of the cryptocurrency scams is corruption, says Joseph Bogere, professor of economics at Makerere University.

Ultimately, though, its the responsibility of the countrys leaders and security organizations to protect citizens against such crooks, says Solomon Male, a pastor. That isnt happening yet. An already poor nation is bleeding further, while gaining an unwanted reputation.

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The Billion-Dollar Cryptocurrency Scams You've Never Heard About - OZY

Two leading cryptocurrency analysts say they believe Bitcoin is in a new bull market cycle, but predictions that BTC is poised to soar to $100,000 are far too bullish.

In a recent episode of Trading Bitcoin, Tone Vays and the pseudonymous trader Filbfilb debate the current state of the crypto market and where it may head in the months to come.

Vays says BTC needs to close above $10,450 to signal that a bigger move to the upside is in store. Bitcoin came extremely close to that number on Wednesday, reaching $10,444 before plummeting to its current price of $9,568, according to CoinMarketCap.

Filbfilbs says his target for opening a long position is significantly higher. Hes looking to see if and when BTC can cross $11,500.

As for how high Bitcoin may climb in the next long-term market cycle, both analysts say they expect a new bull market top to hit well below a litany of predictions calling for a parabolic rise to $100k. Says Filbfilb,

I think were going to struggle to get past $60k. I think $60k is going to be a really, really troublesome level to get across. Ill certainly be looking to book in some serious profits at that point.

I think you said it right in Fiji. I think you said the return you get off of these long-term positions versus the risk of you getting it wrong is a terrible trade. So trying to go higher than $60k I think would be a little bit foolish at this point. But certainly around $50k, $60k would be sensible.

Vays says hes looking for BTC to top out at a slightly lower price of around $45,000.

Although the traders say hype around Bitcoins halving is fueling price action in early 2020, they say rising trading volumes and an increasing number of outstanding derivative contracts are key metrics to watch in order to gauge real long-term interest in the space.

Featured Image: Shutterstock/sustainableart

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Top Cryptocurrency Analysts Say $100,000 Bitcoin Predictions Way Off Base Heres Where They Think BTC Will Land - The Daily Hodl