Category Archives: Cryptocurrency
North Korea may Have to Forfeit 113 Cryptocurrency Accounts – The Merkle Hash
The involvement of North Korea in cryptocurrency has always been subject to speculation. A new report seems to indicate that the US wants to gain control of all digital assets tied to this country.
Various countries around the world are subject to sanctions.
These sanctions are imposed for a wide variety of reasons, including financial wrongdoings or other crimes.
In the case of North Korea, it is not difficult to see why these sanctions are put in place.
Bypassing and evading these rules has been a popular practice in certain regions.
Over the years, numerous reports have surfaced as to how North Korea is using Bitcoin to evade these sanctions altogether.
Domestic state-sponsored hacking groups have also been tied to attacks against South Korean exchanges and trading platforms.
The US is now taking this concept to a whole new level.
By actively suing to gain control of crypto assets is a very interesting move.
A total of 113 accounts have been identified, and may be forfeited in the near future.
As the funds in these accounts are obtained through illegal means, the outcome may be carved in stone.
That said, controlling the assets is a different matter.
This is very different from seizing a bank account, as cryptocurrencies have no centralized authority.
Image(s): Shutterstock.com
Visit link:
North Korea may Have to Forfeit 113 Cryptocurrency Accounts - The Merkle Hash
CoronaCoin: Cryptocurrency that bets on coronavirus deaths – Business Today
Some Europe-based developers have created a cryptocurrency -- named CoronaCoin -- that lets you cash in on the number of people who die or fall ill due to coronavirus. In a rather tasteless methodology, this Bitcoin-like cryptocurrency functions on coins -- called tokens -- that decrease as more people die or get infected. The scarcity of tokens lead to gain in the value of the digital currency. As per its developers, its total supply is based on the world population -- around 7,604,953,650 (over 7 billion).
The digital currency's tokens are burnt every 48 hours, depending upon the number of deaths during those hours. "As the number of infected/dead from the virus increases, the number of tokens is manually burned every 48 hours," says the website. With the rapid rise in the number of infected people, the tokens are also burning fast. "Some people speculate a large portion of the supply will be burned due to the spread of the virus, so they invest," Sunny Kemp, a user who identified himself as one of the developers, told Reuters.
As of Friday night, a total of 85,366 tokens have been burned. The digital currency developers, however, aim to donate 20 per cent of the money to Red Cross via its 2019-nCoV relief effort. Kemp said they'll use a well-known cryptocurrency payments processor to donate money every month.
On netizens raising questions over the "tasteless" idea, Kemp seems to disagree. He defended the idea, saying the World Health Organisation also issued pandemic bonds. "How's that different," he asked. Coronacoin is also backed by proof of death based on statistics obtained from the World Health Organisation (WHO), its developers claim.
How CoronaCoin functions
What's cryptocurrency
The underlying technology behind cryptocurrency is the blockchain technology. A blockchain is an anonymous online ledger that uses data structure to simplify the way we transact. Blockchain allows users to manipulate the ledger in a secure way without the help of a third party. The algorithm used in blockchain reduces the dependence on people to verify the transactions. This technology used for recording various transactions has the potential to disrupt the financial system.
Pandemic on the rise
The deadly virus that first emerged in China in December last year has spread to more than 70 countries and has infected more than 88,000 people, including over 80,000 in China. China's National Health Commission (NHC) said on Sunday it received reports of 202 new confirmed cases of coronavirus on Sunday, taking the total number of cases in the mainland to 80,026. On Sunday alone, China reported 42 new fatalities from the novel coronavirus outbreak, taking the death toll in the country to over 3,000.
Edited by Manoj Sharma
Continue reading here:
CoronaCoin: Cryptocurrency that bets on coronavirus deaths - Business Today
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.
See original here:
Meet the Northumbrian using cryptocurrency to address the UK's housing crisis - North East Times
How UNICEFs crypto currency fund could change the UN – Quartz
The UN may not be the most innovative of institutions, yet it does, with surprising frequency, experiment with new technology and solutions. In recent years, its undertaken initiatives that incorporate artificial intelligence, virtual reality, and blockchain technology.
These projects often remain confined to the realm of experiments. But a recent undertaking by UNICEF, the UN agency tasked with providing aid to children around the world, now offers what could be a glimpse of the future: The Cryptocurrency Fund, which collects contributions in cryptocurrencies, and then doles out those donations in the same currency. No exchange needed.
The crypto fund is nested within another UNICEF venture, the Innovation Fund, which provides seed funding to blockchain-based companies developing products or services that could potentially be of use in social and development settings.
Beginning in October 2019, UNICEF has been outfitted to receive donations in two cryptocurrenciesbitcoin and etherwith the first donation coming from the Ethereum Foundation, the organization that created ether. So far three organizations have received funding through UNICEFs crypto fund.
As it does in other settings, cryptocurrency presents opportunities and challenges for UNICEF and, more broadly, the whole UN system. Cryptocurrencies are volatile and vulnerable to scams and money laundering. But they are also highly traceable and, when it comes to the UN, could some day provide the international organization greater independence from the countries that make up its members.
The Innovation Fund, and the crypto fund thats part of it, is managed by an office at UNICEF that handles projects that incorporate technology like drones, machine learning, blockchain, and other advancements. So far, the Innovation Fundwhich amounts to $25 millionhas supported more than 20 companies with seed money, up to $100,000 per investment.
The projects funded varyfrom digital prescription services, to drug delivery, to mobile networks.To receive funding a project must be based in so-called emerging or developing markets, work in a field with a market cap of $1 billion, and work with open source technology. There are no limitations, however, to the field in which the company operates, nor must it provide an immediate social good. Atix Labs, for instance, an Argentinian blockchain developer and a fund recipient, provides services to high-profile clients like Nestl and Honda.
Since the opening of the crypto fund, a portion of the Innovation Funds investments are now made in cryptocurrency. The donations made into the crypto fund arent converted into fiat currency, but given out in the same cryptocurrency in which they were received, so the recipients need to be familiar with blockchain technology and cryptocurrency.
Digital finance is going to change pretty significantly how we work as an organization, Sunita Grote, who manages the Innovation Fund, told Quartz. There was a need to prepare the organization to be able to leverage the kind of emerging technologies in that field to make us more efficient.
UNICEF is an organization with an annual budget of $7 billion that makes a lot of financial transactions. The sheer volume of the funding that we move means that any gains in efficiency, any increases in transparency, could have quite a significant impact on how we operate as an organization, Grote said.
As a large international organization with many layers of bureaucracy, each donation to and from UNICEF has to go through several steps, and digital currency makes that process much easier to trackand much quicker to complete. According to Grote, transactions that could take months to get through the required levels of authorization, can happen in a matter of minutes with blockchain-based currencies, because the required authentications can happen exponentially faster.
In this sense, the crypto fund is a way to grease the wheels and build up that muscle memory internally, Grote said. We can imagine that, a couple of years down the line, we would be making more transactions in digital currencies at greater volume.
Although it is small, and likely to remain such for the foreseeable future (Grote dismissed the idea that there may be a future in sight where the UN works exclusively in digital currency), the potential seems significant, in particular given the fact that the fund doesnt convert back to other currencies. This means that where today the cryptocurrency donation received is transferred directly to a blockchain technology development company, in a faraway tomorrow the recipient could be an employee receiving a salary.
While the program has worked so far, there are several issues that the use of cryptocurrency at the UN raises, beginning with volatility. The value of cryptocurrencies can fluctuate dramatically, and while UNICEF says the fact that there is no conversion and donations are made to and from the fund in the same digital currency, that doesnt necessarily eradicate the issue. For instance, the donation made by the Ethereum Foundation in October was 100 ETH, or about $18,000. It is now worth roughly $22,700.
Companies may be used to dealing with cryptocurrency, but most still need to pay bills in a local fiat currency, Angus Champion de Crespigny, a cryptocurrency expert and managing director of technology at strategic firm C|T Group, told Quartz.
There are other issues to consider, like the risk of hacking and scams related to cryptocurrency accounts, or the fact that volatility can make it hard for a government to track exactly how much money is being donated and received, which raises money laundering concerns.
There is also the value organizations like the Ethereum Foundation derive from having UNICEF use their currencya situation made more complicated by the fact that Ethereum Foundation itself was the first to make a large donation to the crypto fund, and that the organizations persistence was reportedly behind UNICEFs embracing of blockchain and crypto currency. The lobbying seems to have paid off: Ether seems to be the go-to currency for UNICEFs crypto transaction, and is being tested in its Kazakhstan office, where the agency has set up a system to make internal payments in ether.
A recognized public institution such as the UN accepting and distributing bitcoin and ether is of course a vote of confidence in their respective ecosystems,Champion de Crespigny said. While this isnt intrinsically a bad thing, it can have enormous impact at a stage when the value of crypto currency changes so dramatically, and getting the endorsement of a large international organization might help propel the value of the digital currency.
While these potential problems are all of concern, Grote said the UNICEFs crypto fund acts as a sort of test case, allowing managers to learn from the issues that arise and design protocols and best practices to address themultimately helping to potentially introduce the use of cryptocurrency across the whole UN system.
There is also an important political component to cryptocurrencyperhaps best revealed by Facebooks Libra. Although the social networks currency experiment has yet to take off, it revealed the potentially disruptive power of decentralized currency. It is the first instance in which a currency is associated with a community that exists independently of the currency itself. In a way, Facebooks users are to Libra what the citizens of a country are to that countrys currency.
This concept can become particularly powerful in the case of an international organization like the UN. Despite being an institution comprised of numerous member countries, until now its been forced to use national currencies. There have been proposals to introduce an international currency backed by a reserve of state currencies, but no real action has been taken in that direction. Cryptocurrency, which is not associated with any national banks, could be an alternative way to relieve the UN of having to rely on the currencies of individual countries, giving it a new level of independence, and perhaps even more international authority.
After all, what distinguishes cryptocurrency is its decentralized nature.
Many would argue that bitcoins sole value proposition is to allow people and entities to be independent of central banks, Champion de Crespigny said, in which case non-sovereign organizations could absolutely use assets such as bitcoin to remain as independent as possible from all parties in a not-too-distant future.
That is, however, at least in theory, and with the usual caveat applicable to cryptocurrency, that its still too early to understand with any degree of confidence whether it is the gateway to a new economicand politicalfuture, or just a fad.
Visit link:
How UNICEFs crypto currency fund could change the UN - Quartz
While The Rest of the Market Tanks, One Cryptocurrency Is Above All-Time High – newsBTC
Cryptocurrency investors are seeing red this week, as are investors in the stock market and just about any financial market due to widespread fears over the coronavirus.
But theres one cryptocurrency that is defying all odds and market conditions and has just reached above its previous all-time high daily close.
Chainlink is the cryptocurrency industry stand out of the last year.
It was a top performer during 2019, even while other assets were falling, the altcoin kept on rising.
The cryptocurrency asset is showing its resiliency regardless of market conditions once again and is defying all odds to potentially set a new all-time high even during one of the most extreme market selloffs the world has seen in years.
Not only has Chainlink held up particularly well, even rising amidst the economic turmoil, it is well on its way to setting a new all-time high against Bitcoin on the LINK/BTC trading pair.
The current all-time high rests at 48750 sats, however, the highest daily candle close tops out at 46500 sats.
Right now, Chainlink is trading at 47000 sats, and if the daily candle can close at this level, it will be a new record for the assets highest ever daily close.
Such a strong showing by Chainlink even despite a widespread selloff is nothing short of amazing, and breaking a record for highest daily close during this steep collapse will likely cause it to set a new all-time high and close above the former level.
Chainlinks all-time high on USD price charts currently rests above $4.80. The unstoppable altcoin is currently trading at just $4, after reaching as low as $3.25 cents in the recent crypto market crash.
The altcoin is overperforming against Bitcoin and the rest of the crypto space, but still has ways to go before setting another new all-time high.
However, give the fact that theres no major overhead resistance, breaching above the level is likely to send the asset into price discover mode, where investors push the price of the asset to new heights before psychological resistance levels are reached and set.
Cryptocurrency asset valuations are primarily based on speculation and hype, and with the incredible potential that Chainlink offers, it is easily among the most hyped altcoins of the current crypto market cycle.
Analysts expect the likes of Chainlink, Tezos, and other, shiny new altcoins to outperform the altcoins of the last bubble, as holders of those assets will need to sell on the way up to break even, where these new altcoins have nothing but upside in their future.
The rest is here:
While The Rest of the Market Tanks, One Cryptocurrency Is Above All-Time High - newsBTC
When IRS Asks About Cryptocurrency On Your Taxes, Answer Carefully – Forbes
A new IRS question appears at the top of Schedule 1 to your 2019 Form 1040.It asks if you received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency at any time during the year. It is not asking for numbers or detail, although if you sold some, it should go elsewhere on your tax return. Since the IRS classifies crypto as property, any sale should produce gain or loss.Perhaps the IRS is just surveying who is using crypto, you might guess? Not necessarily, and a simple yes or no can turn out to be pretty important. Tax savvy people may recognize it as similar to the foreign account question included on the Schedule B. The question could set you up for big penalties or even committing perjury for checking the wrong box.
If you bought or sold crypto during 2019, pay close attention to the question at the top of Schedule ... [+] 1.
If a taxpayer answers no and then is discovered to have engaged in transactions with cryptocurrency during the year, the fact that they explicitly answered no to this new question (under penalties of perjury) could be used against them.So if you did any of the listed things, you check yes, right? What if you just have a kind of signature authority over crypto owned by your non-computer savvy parents or other relatives? That way, you can help them manage their crypto.If you sell a parents crypto on their behalf, at their request and/or for their benefit, should you answer yes or no to the question? Either way, should you attach an explanatory statement to the return explaining your relationship to the virtual currency?
There probably arent perfect answers to these questions. But what is clear is that answering no if the truth is yes is a big mistake. Skipping the boxes entirely might not be as bad, but it isnt good either if the truth is yes.If the truth is yes, say so, and remember to disclose and report your income, gains, losses, etc. Maybe thats the point of the question, as a prominent reminder. If this makes you realized that you forgot to report your crypto gains in past years, considering amending to fix it. Dont wait for the IRS to find you, even if you did not get one of those 10,000 IRS crypto warning letters last year. Just remember, the IRS is quite interested in crypto, and is taking steps to ferret out people who do not report.
The IRS appears to believe that millions of transactions might still be unreported. Taxpayers may think they will not be caught, but the risks are growing, and the best way to avoid penalties is to disclose and report as accurately as you can. IRS Commissioner Chuck Rettig has even moved to increase criminal investigations too. Last years IRS letters to 10,000 crypto taxpayers was just a start.
The new crypto tax question on your 2019 federal tax return should tell you something. After all, the Department of Justice Tax Division has successfully argued that the mere failure to check a box related to foreign account reporting isper-sewillfulness.Willful failures carry higher penalties and an increased threat of criminal investigation.The IRSs Criminal Investigation Division is even meeting with tax authorities from other countries to share data and enforcement strategies to find potential cryptocurrency tax evasion.
Originally posted here:
When IRS Asks About Cryptocurrency On Your Taxes, Answer Carefully - Forbes
Crypto in the Hermit Kingdom: Understanding the Objectives of the Pyongyang Blockchain and Cryptocurrency Conference – RUSI Analysis
The Pyongyang Blockchain and Cryptocurrency Conference, an event which led last year to the controversial arrest and indictment of Ethereum developer Virgil Griffith for sanctions violations, was scheduled to take place again between 2229 February. While the conference was always liable to postponement amid COVID-19 panic and UN warnings about sanctions against attendees, there has been no public status update from North Korea. After the charges against Griffith were made public, media reports emphasised the conference as an event aimed at improving North Koreas understanding of cryptocurrency and blockchain technology in order to evade sanctions. Yet Pyongyang is perfectly capable of this already, so what are they really gaining from this event?
The conferences website (which was removed after the UN reports but can be accessed through web archives) specifically notes that US citizens are encouraged to attend via flights to Beijing and then onwards to Pyongyang, and that participants will receive a separate paper visa to avoid having their passports stamped. Yet there is little information available on the content of the 2019 conference, an opaqueness which is reinforced in the 2020 website with indications that journalists are not allowed to attend. The largest source about the alleged content of this event comes from the US Department of Justices complaint about Griffith, which claims that the American programmer provided North Korea with valuable information on blockchain and cryptocurrency technologies, and participated in discussions regarding using cryptocurrency technologies to evade sanctions and launder money. According to the US charge, this valuable information included content on smart contracts, proof-of-work vs. proof-of-stake, and mining concepts that, while relatively technical, are understood by most in the crypto industry and are easily explained by open-source materials online.
Therefore, it seems obvious that North Korea does not need Griffiths presentation in order to comprehend this technology. North Korean hackers are understood to possess incredibly sophisticated technological prowess, including but not limited to hacks of traditional financial institutions, cryptocurrency exchanges, and huge Western corporations, not to mention their ransomware campaigns. There have been reports of North Korea mining cryptocurrency (mining refers to the process of using huge amounts of computer power to create/validate transactions on the blockchain and release new coins into the system, comparable to traditional gold mining) as early as 2018, with the US-based cybersecurity firm Recorded Future recently reporting that this activity has only increased with time.
But North Korea may actually be deriving a greater benefit from this conference, other than supposed access to valuable knowledge: the country is getting international attention and a selection of around 100 relatively well-known tech entrepreneurs and developers who, whether directly or indirectly, lend legitimacy to the regime through their attendance in Pyongyang.
The content of the conference seems to support this theory. Two days of the programme are reserved for the conference itself, with other days including a Pyongyang tour, a visit to the border with South Korea, and a two-day trip to Masikryong Ski Resort. It seems, perhaps, as if the conference is not only a showcase for crypto and blockchain, but also for the state itself.
The conference is reportedly hosted by the Committee for Cultural Relations with Foreign Countries, which is cited as a government department on the conference website, represented by special delegate Alejandro Cao de Bens. Cao de Bens, a Spanish national, is the president of the Korean Friendship Association, an organisation whose stated objectives are to show the reality of the DPR Korea to the world and [] work for the peaceful unification of the Korean peninsula. The 2019 conference was organised with the help of Chris Emms, of Coinstreet Partners, who has recently denied any involvement with the 2020 Conference. Emms reportedly created a Telegram group last year to encourage blockchain community members to attend the conference.
It is worth considering why these blockchain and cryptocurrency industry members would even be interested in a conference held in a heavily sanctioned country. The explanation lies in the convictions of many (but not all) in the crypto industry: that governments should not be able to control every aspect of daily life and certainly not personal finances. This belief is what created a decentralised, peer-to-peer, currency system in the first place, and while the system has become increasingly centralised for ease of use, many in the industry still hold to these principles.
Sanctions evasion could be seen as a way of subverting national governments which are stifling financial transactions. Griffith, for example, referred to his trip to Pyongyang as a vacation and, according to the US Justice Department complaint, attempted to send crypto between North and South Korea, with full knowledge that this would be in violation of international sanctions.
Despite the crypto industrys often critical attitude towards sanctions in general, it is important to remember that these UN sanctions are there for a reason. This conference supports the North Korean political and military elites, aiming to consolidate wealth that may in turn finance their nuclear programme.
In fact, it seems comical to even think about such a technological and global event in the context of the restrictive North Korean state, where all television and radio receivers only tune in to official state channels and internet usage is heavily restricted for all but the elite. Laura Shin, host of Unchained Podcast, perhaps put it the best on Twitter: Lets say Virgil could have educated everyday North Koreans on cryptocurrency. He would likely have to start such a presentation by explaining what the internet is.
This is not to say that crypto cannot actually help North Korean citizens the Pyongyang Blockchain and Cryptocurrency Conference just isnt the way to do it. Yaya Fanusie, adjunct Senior Fellow at the Center for a New American Security, recently wrote about the possibility of humanitarian aid organisations partnering with cryptocurrency exchanges to support North Korean citizens and keep their transactions transparent and public. He notes that this might not be the most exciting application of the technology, but rather exists as a practical-use case where crypto could genuinely assist everyday North Koreans, rather than the regime.
It is obvious why North Korea would want to put on an event to show off their country. And its obvious why they would want Americans there to tweet about it. What is not obvious is why the crypto industry cannot see through this attempt to co-opt the bastion of decentralisation for this damaging purpose.
Crypto and blockchain technology, despite their vast and beneficial possible applications, already have an incredibly negative reputation for involvement in illicit activity. It is ultimately incredibly damaging to this reputation to see anyone in the community perpetuate these ideas by promoting the conference.
Kayla Izenman is a Research Analyst at RUSIs Centre for Financial Crime and Security Studies.
Katherine Norton-Williamsisa Research Assistant at RUSI's Centre for Financial Crime and Security Studies.
BANNER IMAGE:Courtesy of Alex Berlin/Needpix.
The views expressed in this Commentary are the authors', and do not represent those of RUSI or any other institution.
Warren Buffett: Cryptocurrency ‘has no value’ ‘I don’t own any and never will’ – CNBC
Berkshire Hathaway CEO and Chairman Warren Buffett on Monday reaffirmed his aversion to cryptocurrencies.
"Cryptocurrencies basically have no value and they don't produce anything," he told CNBC's Becky Quick in a "Squawk Box" interview. "In terms of value: zero."
"I don't have any cryptocurrency and I never will," added Buffett, who was interviewed two days after he released his annual shareholder letter.
Buffett has been a long-time critic of the world's largest digital coin. He called bitcoin "probably rat poison squared," ahead of the 2018 Berkshire Hathaway annual shareholder meeting. A "mirage," "not a currency," and "tulips" are among the descriptors Buffett has used for bitcoin, according to CNBC's Warren Buffett Archive.
Berkshire Vice Chairman Charlie Munger has called it a "turd," and said that trading cryptocurrencies is "just dementia."
Last year, in an attempt to change Buffett's mind, Justin Sun, founder of cryptocurrency TRON and CEO of file-sharing company BitTorrent, bid $4.57 million in a charity auction to have a meal with the bitcoin skeptic.
"When Justin and four friends came, they behaved perfectly and we had a very friendly 3-hour dinner and the whole thing was a very friendly exchange of ideas," Buffett said. He added that neither he nor Sun changed their stance on bitcoin.
Read this article:
Warren Buffett: Cryptocurrency 'has no value' 'I don't own any and never will' - CNBC
VeChain (VET) Billion Dollars Partners Believe in the Cryptocurrency – The Cryptocurrency Analytics
One of the VeChain investors cryptoVegeta tweeted: If those billion-dollar partners believe in #Vechain, who are you to doubt it? Keep accumulating as much as you can; keep constructing your future.
Sunny Lu, CEO of VeChain, was impressed for having VeChain highlighted as the leader and frontrunner in the blockchain industry.
Sunny Lu stated Good Job, Master Shifu, in response to a tweet that reported an improvement that read: After months of work, VeChain/Thor v1.3.0 is ready. It brings many dramatic improvements, especially in terms of performance and efficiency.
Sydney Ifergan, the Crypto Expert, tweeted: VeChain recently published the first preprint on PoA 2.0 Surface. Real Items an Enterprise & Consumer applications built on VeChain Blockchain anti-counterfeit & Consumer Loyalty generates NFT.
Vechain Stats recently tweeted about introducing Manager from VeChainStats Stated that it was the Swiss Army Knife for managing #VeChain assets and node tokens. The CEO felt that it was neat.
There is an increase in the community extensions with the coming of the Manager. The major use for the Manager is to facilitate complete solutions for managing the assets on the VeChainThor blockchain. Best practices in the industry are used in private key management. The wallet, however, will not have access to the private key.
The price checker version of Vechain is out.
The VeChain Price Checker v.3.0.3 is available on Chrome and Firefox. More than 1400+ pairs added from #Binance #Oceanex and #Huobi
VeChain has been highly interactive with the community in the past month. The social response has been high. There were more than normal numbers of comments, replies, shares, quotes, retweets, and other social media metrics. A lot of interesting stuff is happening on the blockchain.
Real Items are providing a demo. Users can try their demo. User can use their stock camera to scan. They will need a PIN to unlock and claim the NFT. The sooner 50 likes are hit, the pin will be released, and the first person to register will get the asset to keep! They are also planning a pop-up store.
The Official VeChain101 merchandise comes with true items on the NFT on the VeChain.blockchain. It is about verifiable authenticity, and real items will be available on the VeChain! The transactions are increasing with the coming of new users, and more of real items are getting added on the Vechain. Early Adopters have an advantage in the process.
Go here to see the original:
VeChain (VET) Billion Dollars Partners Believe in the Cryptocurrency - The Cryptocurrency Analytics
Yemens Civil War Shows the Dangers of Crypto – Yahoo Finance
The Takeaway:
So far, it appears using bitcoin (BTC) in a war zone may be riskier than cash, especially when illicit actors use cryptocurrency as well as civilians.
The ongoing civil war in Yemen highlights the contradictions underlying bitcoin adoption: Its difficult for civilians to acquire cryptocurrency without heavily regulated infrastructure that makes them vulnerable to coercion and surveillance. Such is the case in Yemen, where the Iran-backed Houthi militia controls the northern half of the country and a failing government controls the central bank in the south.
Related: As Fed Contemplates Coronavirus-Prompted Easing, Bitcoin Traders Bet on Halving
For most people in Yemen, purchasing bitcoin is nearly impossible. Most international companies avoid doing business in Yemen due to concerns over U.S. sanctions, which arent comprehensive like the sanctions against Iran but nonetheless raise compliance questions. This week the United Nations Security Council approved further sanctions against Yemen in an attempt to curtail arms trading between Iran and the Houthis. With the Houthis now functionally governing the northern half of the country, the Trump administration may reportedly suspend humanitarian aid.
Everyones looking at a timeline of a month or two. Thats the point at which different [donors] will start to suspend some of the programs, a senior U.S. State Department official told Reuters on Tuesday.
Plus, peer-to-peer markets are hampered by both cash shortages and a lack of reliable communications infrastructure. Yemeni-American researcher Ibraham Qatabi at the Center for Constitutional Rights said telecom and electricity companies are owned by governments, both foreign and domestic, depending on the region. Theres no need for a warrant if Big Brother already owns the pipes. Plus, Qatabi said, most international money transfers are monitored by local authorities.
Everything is monitored. They have everyones information, Qatabi said. If they want to go after somebody, theyll have access to those files.
Related: Bitcoin News Roundup for Feb. 28, 2020
Hamza Alshargabi, a doctor who worked in Yemen until 2012 and briefly mined ether (ETH) after he immigrated to the U.S., agreed its almost impossible to get a safe and reliable internet or phone connection in most of Yemen. He said in big cities connectivity is so expensive that its unusable, so he cant imagine his sister using bitcoin in Yemen. Although someday mesh networks may help bitcoiners transact without reliable internet, theres hardly any bitcoin to trade on the ground.
Meanwhile, it appears the Houthis are promoting cryptocurrency adoption, just not censorship-resistant bitcoin.
According to a report from the Yemen-focused Sanaa Center for Strategic Studies (SCSS) in December 2019 the Houthi militia instructed civilians in northern Yemen to trade in the internationally recognized bills for an equivalent amount of e-Rials, a cryptocurrency developed by the militant group.
As such, some Yemeni civilians and expats are scared to be associated with cryptocurrency, including bitcoin. If protests last year in Iran and Lebanon offered a peek at bitcoins limitations, then Yemen is the full picture of bitcoin usage still relying on government infrastructure.
Cryptocurrency has itself become a weapon in Yemens civil war.
By issuing a digital currency, the Houthis strived to establish a circular economy with less dependence on banks hostile to their cause. The group even banned the possession of new Yemeni rial bills.
They are denying the government the most basic function, printing money, Alshargabi said. At least in Iran there is a lot of wealth and oil, commerce they can build around. In Yemen, theres nothing to sell.
This isnt the Houthis first crypto venture. The group has been mining decentralized cryptocurrencies since 2017, according to the cybersecurity company Recorded Future, which declined to comment for this article. It is not clear which currencies the Houthis mined. However, some Iranian military leaders are looking to create cryptocurrency tools in order to circumnavigate sanctions. And, according to the Brookings Institute, Irans influence with the Houthis is growing.
Story continues
Perhaps this is, in part, why the Houthis tested a payments pilot in April 2019, using the Houthi-run Yemen Petroleum Company and other public institutions, like the Yemeni Telecommunications Corporation. But the employees protested and refused to accept e-Rial salaries.
Nine months on, the e-Rial can still only be used to pay limited expenses, such as water and electricity utility bills and mobile phone services, the recent SCSS report noted. There is currently no mechanism for using the e-Rial for normal daily economic activities.
One SCSS researcher, who requested anonymity for safety, said the Houthis started these cryptocurrency experiments to deal with a local cash shortage. He added bitcoin may be caught in a paradigm where, socially, people mostly trust sources a friend or relative personally vouched for. Yet, talking about bitcoin on social media or local phone networks could get that person targeted.
(Note that all sources for this article commented from the Yemeni diaspora, due in part to what the SCSS researcher described as a high level of scrutiny through local telecommunications networks and general concerns about monitoring financial activities in the area.)
Thats why Alshargabi eventually stopped mining ether in the U.S., scared the American government would profile him for additional surveillance. Even if he has no connection to illicit crypto users in Yemen, Alshargabi isnt confident the legal system would protect a foreign-born Muslim.
How do I know Im not going to get a knock on my door someday? Alshargabi said.
So Alshargabi sends money to family in Yemen the old-fashioned way instead.
You call your friend and say, You give my mom $200 and Ill give your mom over here $200. There are regular people in that type of business, he said.
This same ad hoc system Alshargabi uses to send his family cash also works for the few civilians in Yemen who want to own bitcoin, not e-Rials.
Since most global cryptocurrency exchanges dont accept credit cards or bank transfers from Yemen, small groups of crypto-curious Yemenites show personal relationships across the diaspora are the key to accessing bitcoin in times of crisis.
Such was the case for a small group of roughly eight friends around 2018, including computer science student Manal Ghanem. She didnt buy any herself, just played with simulations and testnets. But a few of her friends with family abroad got bitcoin by using foreign bank accounts on global exchanges. One bitcoiner would shop online for foreign products, then sell it locally for cash, she said, because shipping was the least difficult part of the cumbersome process.
I do believe with the collapsing financial institutions in Yemen, if people get a bit educated they can leverage bitcoin to their benefit, she said. They are eager to create new opportunities but it can be really dangerous to go online and gamble what little you have and then lose.
Her friend Faissal Alshaabi said he struggled to use exchanges in Yemen because his internet connection was too weak to even load a website. Alshaabi turned to a cloud mining service instead, but American regulators shut it down and he lost his capital.
Despite all these challenges, Alshaabi said he still believes cryptocurrency could be useful inside Yemen.
Its a fast way to send money and with low fees, so I think people would use it as payment method, he said.
In the meantime, the most important thing Yemenites can do is establish situations where they can acquire bitcoin without attracting the wrong type of attention. This education requires in-person meetings. Governments may not be able to confiscate your bitcoin, but they can take your life.
In terms of increasing awareness, that would have to be verbally transmitted, the researcher said. Its too soon for bitcoin.
View original post here:
Yemens Civil War Shows the Dangers of Crypto - Yahoo Finance