Čvc 31

Industry Report: No Bitcoin Crime Goes Unpunished

Source: bitcoin

Bitcoin Industry Report

A bitcoin buyer is robbed, the latest game to pay in digital currency, and new initiatives for fighting ransomware are set forth. Want to catch up on your latest digital currency news? Take a look below.

Also read: Industry Report: Bitcoin Fraud Never Works


A bitcoin buyer has undergone quite a scare after being robbed at knifepoint. 32-year-old Steve Manos of Lake Worth, Florida set out to take part in what he thought was a routine bitcoin sale last Sunday in a nearby parking lot. The thieves, whom Manos had done business with before, held him at knifepoint in the street before making off with the $28,000 USD he had brought for the respective purchase.

While unable to chase the thieves down, Manos later provided the phone number he used to contact the men before to the local sheriff’s office, which was able to arrest one of the burglars. 34-year-old Andre Allen now faces charges of armed robbery, burglary, and battery, and is being held in a Palm Beach County Jail.


Bitcoin-collection game Takara is giving Pokemon Go a “run for its money.” The new game is earning attention from bitcoin enthusiasts everywhere, who have the opportunity to collect cryptocurrency, as well as “tokens representing coupons, tickets, loyalty points, company stocks.”

Players follow a GPS map, which shows various locations where tokens have been “dropped.” Users can pick up these tokens only if they answer very specific questions, usually regarding the locations housing the tokens. The game has recently added support for Counterparty assets, which means players can pick up an essentially unlimited variety of tokens during their travels.


Private and public party members such as Kaspersky Lab, Intel Security, and the Dutch National Police are joining forces to combat ransomware attacks.

Known as “No More Ransom,” the initiative is a means to bring groups together to battle ransomware and make it hard for cyber-criminals to prey on Internet users and finance magnates by “outsmarting them.” Criminal investigation director Wilber Paulisson of the Netherlands explains:

“We, the Dutch police, cannot fight against cybercrime and ransomware alone… This is a joint responsibility of the police, the justice department, Europol, and ICT companies, and requires a joint effort.”

The initiative is providing four decryption platforms that can allegedly stop up to two dozen forms of different ransomware. Nearly 30,000 attempts have been halted worldwide thanks to their combined strength.

Know of any stories that should be included in our regular industry reports? Post your thoughts and comments below!

Image courtesy of makikomi.jp.

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Industry Report: No Bitcoin Crime Goes Unpunished

Čvc 31

Japan: The Newest Bitcoin Price Influencer?

Source: bitcoin


The price of bitcoin has reached a steady point. At press time, the price has halted at $656 after hovering around $658 for most of the week. A mere $2 drop is nothing to panic about, though bitcoin has become somewhat stagnant as the financial market continues to play its course. However, as Japan faces continuing inflation, the country’s investors may give the bitcoin price a kick-start in the near future.

Also read: Bitcoin Price Falls as Altcoins Push Ahead

Japan Investors Flocking to Bitcoin?

One platform describes every bitcoin advocate’s nightmare — that while bitcoin reaches a still point, stocks and bonds are likely to start gaining momentum:

“Bitcoin price remains in sideways indecision. Yesterday… indicated that the Fed sees a general improvement in the U.S. economy, but that they await further improvement to raise rates. Hence, there is a general perception of low risk in the global economy which should see stocks and commodities rise while gold and Bitcoin slump.”

Recent waves of monetary innovation are making headway in Japan, and many wonder if perhaps these will hold sway over bitcoin’s future. An economic stimulus package totaling more than $250 billion has been introduced by Prime Minister Shinzo Abe.

“The BOJ [Bank of Japan] is likely to ease policy, including increasing government debt purchases, so you could say the BOJ can absorb the new debt,” Economist Hiroshi Miyazaki said. “It also makes it easier to show that the BOJ and the government are working together.”

So there’s an attitude of hand-holding and Kumbaya within the region. That’s great, but what will it do for digital currency? The problem attached to the stimulus is that the money will be shelled out over the span of several years, which likely won’t bear any major impacts on the economy’s well-being. Some say the stimulus package’s lack of effectual power will make the yen plummet even further, causing inflation and leading more people into the welcoming arms of bitcoin.

Japan is proving to be a major center for cryptocurrency action. Last April, the country declared bitcoin and all related digital currencies “money” rather than commodities. Officials later passed a bill that regulated cryptocurrency exchanges. Within the last few months, Bitcoin has gained newfound respect in a country whose embarrassment over Mt. Gox was deemed likely to create a fiat reign for years to come.

But all that appears to be changing. Bitcoin may be kicking back now, but with enough time, a little Japanese influence may be all it needs to whip itself back into shape.

Will Japan help bitcoin’s price to rise? Post your thoughts and comments below!

Images courtesy of WallpaperFoler, leftovercurrency.com.

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Japan: The Newest Bitcoin Price Influencer?

Čvc 31

Floridian Thieves use Local Bitcoin Exchange to Rob Customers

Source: bitcoin

Floridian Thieves use Local Bitcoin Exchange to Rob Customers

With all the coverage surrounding massive Crypto Theft and Scams recently, whether it’s The DAO, OneCoin, or questionable ETC ownership policies on major exchanges, it’s easy to ignore the more mundane events in this arena. Luckily, Steve Manos, A man in Lake Worth Florida, was brave enough to ignore best practices and common sense to bring us this gem of an example of how not to buy Bitcoin.

Read Also: New Polaris GPUs Shake Up GPU Mining


Thieves Ill-Informed as Their Victim


Manos apparently needed several thousand dollars in Bitcoin, and quickly. Instead of waiting a few days on the verification process integral to services like Circle or CoinBase, he tried to source his Crypto locally, and all in one place. This unfolded with disastrous results according to the original article at the Sun Sentinel:

Andre Allen, Arrested for Theft of Manos’ 28K

“The exchange took place outside the restaurant at 2024 Military Trail. One of the men got into the front passenger seat of Manos’ car, while the second man sat behind Manos, according to the report.

Manos handed over 28 bundles of $1,000 in a gift bag. The front seat passenger took out a laptop to finish the exchange, but he also pulled out a knife. He pressed it to Manos’ chest; Manos told deputies.

Manos told the men to just take the money and leave. But a struggle ensued as the backseat passenger tried to grab Manos’ gun out of the driver’s door pocket.

The two robbers ran with the money. Manos chased them, but couldn’t keep up, the report said. The suspects got into an Acura, and sped off.”

Luckily, Manos was able to provide Law Enforcement with the would be Thieves’ Contact info, Resulting in their arrest when he later picked them from a lineup. Had he not had the presence of mind to do so, they would have got away with 28,000 dollars of Manos’ Cash.

So what can we learn from this misadventure, brought to us by a woefully ill-informed Cryptocurrency enthusiast? Surely local and decentralized bitcoin exchanges aren’t to blame! Well, of course they aren’t. By that logic, Pokemon Go is responsible for human stupidity, and Harambe was accountable Zoo Safety Oversight. Your main takeaway should be to go with reputable sellers, use multiple sources to limit your risk, and use multisig/escrow where possible. Had Manos done any of this, he likely wouldn’t be a contributor to the “Florida Man” Twitter account.

Thoughts on the risk thieves present to decentralized exchanges or Bad security? Leave them in the comments!


Images courtesy of Palm Beach County Sheriff’s Office

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Floridian Thieves use Local Bitcoin Exchange to Rob Customers

Čvc 30

Radeon Overview: Aftermarket Polaris Cards Shaking up GPU Mining?

Source: bitcoin


The Radeon RX 480 was released onto the GPU market without much fanfare, sold as a mid-range card at a low price – which is exactly how it performs. Despite the excitement in the gaming press about AMD’s Polaris architecture and the RX (and upcoming Pro WX) line of GPUs, particularly about the card’s price point, it seems to have been glossed over by the crypto mining community. 

Also read: The Bitcoinist Podcast is Back

The 480 boasts 26-27 MH/s when put to the task of ETH mining, around 85 percent of what its older brother, the 390X, can put out at around half of the launch price. Despite the card’s promise as an efficient and inexpensive piece of mining hardware, the first batch of reference models had power delivery issues, mediocre cooling, and a lack of raw performance that raised concerns for those looking to put them to work in 24/7 mining operations.

Impressive Hashpower at a Good Price

Miners on the fence about Polaris will be happy to know that the AIB partner cards, as well as the cut-down RX 470 and 460, are coming to market in the next few days. These cards come with superior cooling and beefed up power delivery that makes them more desirable for mining and other intensive uses.

With a lot of the initial red flags thrown up around this GPU about to become non-issues, we’ve decided to revisit the Polaris architecture and explore just how efficient and powerful the RX 480 is when it comes to GPU mining.

We’ll be comparing cards utilizing the RX 200, 300 and 400 series GPUs to analyze how each generation of GCN stacks up against the next when it comes to mining Ethereum. I’ve left nVidia’s Pascal and Maxwell cards out of the benchmarks because, despite their improved hashing performance, comparisons across the manufacturers, and from OpenCL to Cuda optimized mining, is beyond the scope of this article.

When looking at AMD GPU mining performance, it helps to understand the incongruity between their GPU architectures and their branding. Cards in the previous generation’s 300 series are primarily refreshes of older chips, with higher clocks and more/better memory. The 390X, a mining favorite, for example, is essentially a memory extended, overclocked 290X. The 380 is a souped-up 285 (which is the newest design from them outside of the Fury series’ Fiji Chip and the newer Polaris architecture), and the 370 is working with the same chips put into the now four-year-old HD 7000 series cards.

Because each price range of card uses a different architecture, with various design time frames and iterations, you’ll see dramatic jumps between each step in their lineup, and only marginal gains from generation to generation. The newest RX 400 series is unique in that it is the first non-iterative jump in design in nearly five years for AMD, and, as you’ll soon see, it certainly shows:

Polaris: New Efficiency King

AMD’s Polaris 2.0 architecture shows an appreciable 28 percent raw performance improvement over the last gen 380, and an even more dramatic 51 percent improvement over the previous iteration’s 285.

Of course, it’s not as simple as looking at raw hash power when evaluating mining equipment. Otherwise, the RX 480 would take a lackluster backseat to the current king in GPU mining, the 390X. What’s remarkable about the 480 is that it achieves this high level of compute performance while drawing less than half of what the 390X does at the outlet. With the latest drivers, the card only draws 159 Watts under full load, and under-volting the card further can increase its performance by stabilizing its maximum “boost” frequency. That’s right, the 480 holds the unique position of performing better with less power than the default settings.

So what does this drastic reduction in power draw mean? Well, the RX 480 blows every other card in the lineup out of the water regarding efficiency. It only draws 6 watts, compared to the 390X’s 11.5 or the 285’s godawful 12.3 watts, per mega-hash, per second. The 400 series’ Polaris GPUs are as much as 104.38 percent, or 85.16 percent on average, more efficient hash-for-hash than the GCN 1.X cards of the 300 and 200 series:

At the average cost of power in the US, around 10 cents per kilowatt-hour as of May 2016, you could expect to pay $440 in electricity per month for a 1 GH/s mining rig using 480s, where a similar setup using 390Xs would cost around $842 per month (this figure excludes the power draw of the other components in the system, but all things equal that’s still a $400 a month difference per GHash).

With aftermarket RX 480s hitting the shelves right about now, the Polaris line of GPUs has become an incredibly attractive piece of mining hardware. It’ll be interesting to see the effects Polaris will have on large-scale operations, as well as what the 470 and 460 will bring in terms of Hashpower per watt.

Questions or comments on the performance of Polaris or Pascal GPUs? Leave them in the comments!

Detailed power draw data courtesy of Tom’s Hardware.

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Radeon Overview: Aftermarket Polaris Cards Shaking up GPU Mining?

Čvc 13

Record Sales for Xiaomi Smartphones Could Benefit Bitcoin Users

Source: bitcoin


On July 10, 2016, Chinese smartphone manufacturer, Xiaomi, announced that their cheap line of phones, known as Redmi, had sold over 110 million units in just 3 years. This news could have implications for bitcoin, as cheaper smartphones could directly result in higher trading volume in the country.

Also read: Bullish Trading Ahead? Bitcoin Price Sees New Technical Patterns

The Redmi and Redmi Note, less than half the price of other Xiaomi phones like the $300 USD Mi5, have been central to Xiaomi’s success in China and its handful of new markets – such as India and Indonesia – over the past few years.

What Is the Significance of Cheaper Phones Like Xiaomi?

Cheaper smartphones mean easier access to bitcoin in an emerging market that has also become a rapidly growing market for the cryptocurrency. Also, cheaper smartphones alleviate a price burden that once restricted the ability of the Chinese to obtain bitcoin.

Although China is quickly becoming a developed economy, a large percentage of its population is still very poor, with more than 82 million people living under the poverty line. Therefore, cheaper phones could dramatically increase bitcoin’s trade volume within the country, further contributing to the currency’s network effect.

Increased accessibility to bitcoin could become desirable for a large swath of people in China, as the country’s government continues its campaign to devalue its currency.  

Thus, the monetary crisis that has materialized in the country has created a distinct potential for a mutually beneficial arrangement to arise between Bitcoin and the Chinese people. As more people flock to the cryptocurrency, it will afford them a service by protecting their savings, while the increased trade volume helps to proliferate the currency among more people.

The Benefits of Accepting Bitcoin

Although this relationship has an obvious beneficial effect for bitcoin and those involved in trading the currency, it could create an indirect benefit for another party — the manufacturers of the smartphone devices.

It will especially benefit those smartphone devices that attempt to take advantage of the situation by allowing the market to propagate unhampered. Unimpeded by any attempts by the manufacturer to regulate, remove, or otherwise tamper with any bitcoin related applications.

Despite this, the benefits that smartphone manufacturers could receive from embracing Bitcoin is ultimately dependent on the uncertain role that bitcoin will have as a preferred hedge against the Yuan, and how far the Chinese government goes with its currency manipulation.

However, while the long-term benefits that Bitcoin could provide are ultimately uncertain, it seems some benefits are already being felt by smartphone producers in China. As evidence of this, competing, cheaper smartphones have recently increased in popularity at the expense of the iPhone, whose sales in the country have recently declined.

What do you think of the popularity of the Redmi line of phones? How do you think cheaper phones like this could affect Bitcoin? Let us know in the comments below!

Source: Techinasia.com

Images courtesy of Xiaomi.

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Record Sales for Xiaomi Smartphones Could Benefit Bitcoin Users

Čvc 12

Bitfinex Outages Raise Questions of Reliability and Regulation

Source: bitcoin


On June 20, the Bitcoin world came to a halt for some traders — twice in 24 hours, in fact — when popular Hong Kong exchange Bitfinex, owned and operated by iFinex Inc. (Bvi), unexpectedly went offline, preventing trading at the exchange for several hours.

Disclaimer: This article was provided by the Vanbex Group. Bitcoinist is not affiliated with the firms represented by the Vanbex Group and is not responsible for their products and/or services.

Bitfinex Outages Raise Important Questions

Industry-related media reported because of news regarding the outage rippling throughout the trading community, it sparked a temporary sell-off that ultimately contributed to bitcoin’s fall from the US $740 range to $685 at its lowest point.

When Bitfinex went offline the first time, which was during the afternoon, the exchange took to Twitter, stating: “Trading has been paused while we investigate an infrastructure issue,” assuring followers that “The issue does not involve funds or system security.”

Bitfinex eventually cited server migration issues and server instability as reasons for the outage of the U.S. dollar (USD) side of the exchange to eventually come back online later that night.

“The longer you are down the more people worry their coins are gone,” one Twitter user, @CamsHouseLive, responded.

His sentiment is not unfounded. Bitcoin exchanges have a history of security breaches, fraud and technical glitches with Mt. Gox setting that stage in 2014, when, as the world’s leading exchange at the time, was forced to shut down after a reported theft of 850,000 bitcoins.

Creditors are still working with bitcoin exchange Kraken in hopes of getting back money lost at Gox.

The event eventually led to the arrest of Mt. Gox CEO Mark Karpelès in 2015, with no significant developments in the case since he was charged with embezzlement.

Other well-known exchanges such as ShapeShift, Bitstamp and Cryptsy have also been victims of hacking, trading outages or stolen funds, reinforcing the notion that cryptocurrency exchanges are inherently unsafe and unstable.

However, exchanges have worked tirelessly to improve technology and security standards.

“Nobody steps away from a computer now without locking their screen,” ShapeShift CEO Erik Voorhees said in an interview with Bitcoin.com, following the highly-publicized hacks that took place in April.

“Keys and access are being much more compartmentalized, and 2-factor [authentication] is being integrated in every possible manner, among other things.”

Other exchanges have established their own precautions to protect against outside threats.

Crix.io CEO, Dmitry Koval, says that exchanges have to focus on several key aspects to make sure their customers’ funds are safe. Some of these essential areas include:

  • Web application security
  • Private key storage
  • Security audit procedures

Crix works to provide the best security possible, implementing “the most reliable architecture by using best-in-class technical components,” said Koval.

In addition to 10 mostly-redundant virtual servers handling different software aspects of the exchange, Crix has all of its virtual infrastructure installed at HP servers and Netapp storage.

“The equipment is resided in [a] tier 3 datacenter,” Koval explains. “Overall, the architecture is designed to withstand high loads.”

But government and regulatory oversight are also factors.

Kevin Batteh, partner at Delta Strategy Group, a full-service government affairs firm based in Washington, D.C., said he couldn’t imagine a scenario where an exchange, Bitfinex or otherwise, would self-inflict such damage.

“When running an exchange the most important thing is volume — that’s how you get paid,” said Batteh. “An exchange going down is not a good way to keep customers.”

Trust is a key part, he added. Without it, a trader is less likely to place an investment. Regulation plays a further role in this as well, as a regulated exchange affords a level of comfort to the trader.

“As a regulated institute, required systems and safeguards would be in place,” said Batteh, who referenced the Nasdaq outage in 2013.

During that particular outage, the U.S. Securities and Exchange Commission immediately inquired as to what occurred, and demanded a “blow-by-blow account of the trading disruption” from the exchanges involved and moved to determine if the failure had to do with technological standards, as was then reported by Reuters.

Of course the framework would be different for cryptocurrency exchanges and the like, said Batteh.

Koval said there is some role for government, but warns that the bitcoin exchange industry may not be able to handle the stress placed upon it by mainstream regulatory standards.

“Too heavy [a] regulatory burden can make it impossible to operate,” Koval says.

One option, though, is ensuring that exchanges are solvent, so at the very least traders can be sure that they can get their money out if their exchange goes under.

“From a regulatory perspective,” notes Koval, “monitoring the exchange’s solvency is of higher priority than setting the responsibility for technical outages at this stage.”

Koval further stressed that the market is the strongest protector of traders’ coins at the moment.

There is a market-driven balance. “If one exchange is not able to provide continuous service, traders will go to another one.”

The post Bitfinex Outages Raise Questions of Reliability and Regulation appeared first on Bitcoinist.net.

Bitfinex Outages Raise Questions of Reliability and Regulation

Čvc 12

Bullish Trading Ahead? Bitcoin Price Sees New Technical Patterns

Source: bitcoin

Bitcoinist_Traditional Finance

Technical indicators suggest that the bitcoin price could be preparing for a rather significant correction, potentially sending it below $600. Traders shouldn’t have too much to fear though, as the decline is expected to be followed by bullish activity, resulting in a rise to $700 and beyond, hitting resistance at $1000.

Also read: Industry Report: The Halving That Came and Went

Bitcoin Price Looking Bearish, but Not for Long

Long-Term Analysis

After a year where a rounded bottom pattern was perfectly accomplished, a new big pennant had taken place into the mid-term trading box, created as a result of the sideways lateral market that professional traders´ work let behind their accumulation activities. Perhaps we could see another month in the same price level while prices perform this pennant, which could become a bigger flag formation.

This kind of well-known pattern may also create a bullish consensus that provides some up-sliding of the trading box from the $600 support to the long-term Fibonacci resistance at $820, starting the first wave of the Elliot´s theoretical pattern staying inside the next level box with a probable ladder step rebound at the $700 support level. All of these movements will occur in a major zig-zag advancing pattern toward the second box´s higher resistance of $1000.

Mid-Term Analysis

Forming a kind of trading box with support at $600 and resistance at $820, prices had composited other patterns that could help traders to figure their marketplace, like several rising lines that provide reference for making decisions.

Meanwhile, prices advance in a slow rising zig zag movement, which should become a fireworks show of growth in about 2 months’ time, when the third phase of Elliott wave theory gets real in the charts.

Right now, mathematical oscillators are giving enough signals to sustain the bullish consensus, and to allow the suspicion of far higher prices at the end of the year.

When the present flag pole reaches the $820 resistance, the support will have to be relocated at $700 like a ladder step rise sliding the box to next level.

Short-Term Analysis

According to volume indicators and candlestick analysis, prices are preparing for a down movement, which may create panic selling from weak hands. This selloff would hit a big support level below $600—probably near 580—where strong hands and big players could be planning their purchases.

After this probable downward slide, the next movement in the present trading box could send prices upward for another 100 points, performing a fast rebound to $820.

Following that rise, a bear correction will send the bitcoin price to a new support level around $700, launching a new sideways lateral movement with resistance at $1000. This trading pattern is expected to hold for the next two weeks.

What do you think will happen to the bitcoin price? Let us know in the comments below!

Featured image courtesy of Shutterstock.

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Bullish Trading Ahead? Bitcoin Price Sees New Technical Patterns

Čvc 11

Industry Report: The Halving That Came and Went

Source: bitcoin

Bitcoin Industry Report

The halving comes and goes, Ethereum wants to hard-fork, and the blockchain does income grants. Want to catch up on the latest cryptocurrency news? Take a look at the stories below.

Also read: Industry Report: The Bitcoin Bill That Became Law


The halving has officially come and gone, and the results haven’t been as big as we all hoped for.

At mid-day on Saturday, the bitcoin price fell to the $620 range but jumped back to about $645 within a few hours. Despite all the press and predictions that led up to the event, not much seems to have happened. Following the first halving in 2012, however, the price of a single bitcoin increased tenfold within the first few weeks, so further increases towards the end of the month are not entirely out of the question.

The biggest fight is occurring among bitcoin miners, who face a huge drop in business. Miners are doing everything they can to avoid potential downtime, as the block reward — and potentially their revenue — has been cut in half.

Genesis Mining CEO Marco Streng explains:

“The most important thing is to be the most efficient miner. . .When the others drop out, that means that they leave the market and give you a bigger share of the pie.”


In response to a recent DAO “hack” that saw millions in Ether funds stolen, Ethereum holders have voted unanimously for what’s known as a “hard-fork,” which will prevent the purported thief from ill-using any of the funds taken.

According to one source, a hard-fork is “a change to the bitcoin protocol that makes previously invalid blocks/transactions valid, and therefore requires all users to upgrade.” Software engineer Nick Johnson explains that the move is designed to garner greater user protection. He also says things may seem slow at first, but few of the changes incorporated should dramatically change user experiences:

“The actual change is fairly trivial – a balance transfer between blocks. All the code around that in order to prevent bad things happening adds a lot of complexity. Not to mention very thorough testing. For instance, making sure that any nodes that fast sync after the fork, sync to the correct chain.”


Blockchain-based currency Grantcoin is now offering unconditional basic income grants to users.

Launched in 2015, Grantcoin was the first digital currency to be distributed and managed by non-profit executives with the intention of supplying funds to “socially responsible businesses.” The first grant distribution took place in early July, where approximately 255 individuals from 17 nations received funds in their personal Grantcoin wallets. A second “hand-out” will occur in late September.

Grantcoin has been labeled “currency with a conscience.” It’s mission statement says:

“We insist that a new currency be equitable: that it shall be issued to all people as a human right, as a universal basic income to be enjoyed by all — to compensate, at least partially, for the accidents of birth and circumstances of fortune that have blessed or condemned different people and regions of the world to wealth or poverty.”

Know of any stories that belong in our regular industry reports? Post your thoughts below!

Images courtesy of Ethereum Blog, Grantcoin.

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Industry Report: The Halving That Came and Went

Čvc 10

MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview

Source: bitcoin

MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview

We sat down recently with Rune Christensen, the founder of MakerDAO, to discuss The DAO’s collapse and the implications it will have for Ethereum and Cryptocurrency moving forward after the soft fork. He expresses doubts at the notion that the Ethereum community holds any obligation to The DAO and other interesting viewpoints from security to hard-fork consensus.

Also Read: Pound vs Yen: The Battle Over Bitcoin Rages On

Rune Has Faith in Ethereum, Not The DAO

So Rune, Can you give Us a little bit of background on Yourself, On Maker, and the Situation The DAO’s Collapse has put Maker in?

“I’m the founder of Maker, which is an ethereum based DAO that will soon launch a stable cryptocurrency backed by smart contracts with ethereum based collateral. TheDAO’s collapse hasn’t meant much to us, we already anticipated those types of risks and knew it was something that could happen. We are going to be even more careful with security in the future, though, as we were also affected by the bug in one of our alpha stage contracts. luckily nothing was stolen, and not much money was at stake because we had made clear warnings and risk disclaimers.”

Okay,  Rune, given those circumstances, what is your position on the best of the proposed solutions, Soft Fork, hard Fork, and otherwise?

“I think the best solution is to wait for consensus. A clean 100% refund fork is most likely at this point, but also see the potential for a second blockchain to emerge or even possibly the old one being kept alive.”

Can you elaborate on why you think it’s best, and the disadvantages of the other options for Maker, and Ethereum?

“When using blockchains its always the best to go with the consensus, so it’s an easy choice. The biggest question is whether the community will see diverging advantages in the “code is law” governance approach.”

What about long term consequences for the Ethereum ecosystem, and concerns that the soft fork could be easily abused by miners?

“It turns out the people concerned were right on this one.”

Many are blaming Solidity for the issue as much as The DAO’s code, scale of deployment and handling of the attack, and claiming is as much to blame if not moreso. What are your thoughts on this?

“It’s misleading to claim it is Solidity’s fault. However, there are various things with solidity, the EVM, and the entire tech stack basically, that could and are still being improved. Overall I think Ethereum’s technology is in extremely great shape and lightyears ahead of everything else.”

Current DAO Hard Fork Voting Status

How much responsibility does the Ethereum community have to those staked in the DAO?

“Absolutely Zero.”

What is Maker Doing that ensures that it will not become another TheDAO?

Same as we have always been doing, obsessing about security at every step of the design and implementation process. We knew very early that security was going to be the most important factor and have been building our entire stack around that maxim from the start.

Early Voting from ethereum mining pools has shown strong support of a hard fork. What is your recommendation to those that have yet to vote on the matter?

Vote with the majority.

MakerDAO has suffered from security issues similar to the DAO’s over the last few months, the prime difference being their decisive action in fixing them, preventing any theft of their collateral or stablecoin. The DAO has been a massive, market altering failure, but Rune, along with many others believe that the underlying technology is not to blame. What we see in terms of utility from complex Ethereum-based smart contracts will be interesting to see following the hard fork.

Thoughts on the coming hard fork and the future of other Ethereum DAOs? Leave them in the comments!

Images Courtesy CarbonVote.com, MakerDAO, Pando

The post MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview appeared first on Bitcoinist.net.

MakerDAO Founder Claims “Absolutely Zero” Obligation to DAO Investors In Interview

Čvc 10

Price Report: Bitcoin is Dominating Argentina

Source: bitcoin


Another small rise is in the books. Following a drop to $639, the price of bitcoin has jumped up to about $645 at press time.

Also read: Pounds vs Yen: The Battle Over Bitcoin Rages On

At first glance, this appears to be a meaningless rise. Just a few dollars, nothing to scream and shout about, but considering the circumstances surrounding the halving that has now officially taken place, the results are something to celebrate.

The price of bitcoin fell about 5 percent at midday on Saturday, slumping to the $620 range. This drop was only temporary, though, as just a few hours later the price rose by an additional $20, causing everyone to breathe a deep sigh of relief.

Following the first Bitcoin halving about four years ago in 2012, the price of a single coin dramatically increased. We’re likely to witness a similar spike in the coming weeks, granted these results repeat themselves.

“The impact of the halving isn’t based on size, it’s based on marginal profitability,” explains Erik Voorhees of Shapeshift.io.

But some aren’t looking at the halving as an influence at all, believing action in countries like Argentina could lead the digital currency towards a particularly impressive jump. This is where a few unusual situations come in.

Bitcoin Saves the Day in Argentina

In Buenos Aires, the capital city of Argentina, growing “dial-a-ride” service Uber is facing opposition for allegedly operating without permits or tax-identification numbers. Lawsuits from taxi companies are popping up regularly, and credit card companies have blocked Uber payments. Even city officials are taking a stance.

So what’s Uber done? Wanting to stay in business, the ride-sharing service has turned to bitcoin company Xapo, where it has found security in a bitcoin-funded debit card that customers can use to purchase rides. The card is not used locally; rather, transactions occur out of Gibraltar, an area that doesn’t oversee or block Uber payments. Xapo head Anni Rautio says the process of obtaining a card is easy, and the company has already witnessed several customer requests:

“All they have to do is set up their Xapo and receive it at home, and it’s ready to use… This is a very specific situation with a very specific problem and a very specific solution… Since last week, all Uber users in Argentina have been able to use their Xapo bitcoin debit cards to pay for their Uber rides… This is a win for all local Uber users and drivers, and for Uber as a company, as they are able to continue operations in Argentina through Xapo’s debit card.”

So in its fight to garner financial independence for users, it would appear that bitcoin has chalked up another valiant win.

Do you foresee another massive rise? Post your thoughts and comments below!


Images courtesy of Uber, Wikimedia Commons.

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Price Report: Bitcoin is Dominating Argentina