Bitcoin is complicated. From what, exactly, it's good for to who created it, there remains a host of unanswered questions about the world's foremost cryptocurrency. But when it comes to what drove the monumental price rise over the last 9 years, we now have at least a partial answer — and it's not what you'd think. You see, it turns out that one person or one coordinated group is likely responsible for a massive increase in Bitcoin's value back in 2013. Yup, just one. SEE ALSO: You know who's not loving Bitcoin's rise? Speed freaks. That's the conclusion of a group of researchers in the Journal of Monetary Economics, who write that the price of Bitcoin has been (surprise!) subject to manipulation over the years. "Suspicious trades on a Bitcoin currency exchange are linked to rises in the exchange rate," they note in the paper highlights. "A single actor likely drove the USD/BTC exchange rate from $150 to $1000 in 2 months." That's ... quite the jump to … [Read more...] about One person is probably responsible for almost 600 percent of Bitcoin’s price rise
Bitcoin currency exchange
Bitcoin is looking increasingly naïve as a currency; with a very expensive computer churning away at an overclocked speed you can create 'money' you can spend in very few places for only the cost of the electricity - and the risk of brain damage. Bitcoin is a problematic economic proposition - and not just because US authorities are cracking down on the sites that allow you to buy drugs with bitcoins. With the Mt Gox bitcoin 'currency' exchange being hacked and then rolling back transactions that took advantage of the resulting drop in bitcoin value, the system isn't robust (while the bitcoin system attempts to deal with inflation, easing and other economic complexities, currency exchanges respond rather more simply to the laws of supply and demand). There's not much you can buy; we did see a silicon valley store promising to sell memory for bitcoins, but mostly it's drugs and - for some reason- alpaca socks. If it actually turned into a realistic alternative currency, it would … [Read more...] about A minor Bitcoin miner injury?
Singapore police are investigating the death of Autumn Radtke, the CEO of a Singapore-based virtual currency exchange First Meta, whose body was found last week. The police had received a call on February 26 at about 7.05am requesting for assistance at Block 8 Cantonment Close, according to a statement. They then found the 28-year-old's body lying motionless at the block's second level parapet, according to Channel NewsAsia. The American was pronounced dead at the scene by paramedics, and preliminary investigations indicate that no foul play is suspected. Toxicology tests are being done to determine the cause of her death. While rumors have surfaced suggesting a possible suicide, there has not yet been any substantive evidence to back the speculation. There have also been reports describing the apartment block as her residence, but ZDNet understands this may not be accurate. Radtke joined First Meta as CEO in January 2012. Her company posted a statement on its website … [Read more...] about Singapore virtual currency exchange CEO found dead
Imagine a self-regulating, world-wide, distributed digital system, engineered to operate beyond the management or control of any human, corporation, or government, impervious to government regulation or national jurisdiction, growing in size and reach exponentially. No police officer can arrest it. No spy organization can find it. No army can kill it. No human can stop it. Sounds a lot like Skynet from the Terminator movies, doesn't it? In the Terminator franchise, a self-aware AI network created by the military broke free of human control with the intent of destroying the human race. So, how do we get from bitcoin, a mere digital currency, to Skynet? It may not be as far-fetched as you think. Back in time To trace the untraceable, we're going to have to travel back in time almost 50 years, to 1969 (don't worry, you can keep your clothes on). It was quite the year of contrasts. On one hand, there was the Apollo moon landing. Tricky Dick became president. The Vietnam War was about to … [Read more...] about Bitcoin: Laying the foundation for a real-world Skynet?
For centuries, government-issued fiat money has upheld two functions fairly well: being a store of value and serving as a medium of exchange. But developments over the past year suggest that technology might someday do these jobs better. Since its launch in 2009, the virtual currency Bitcoin—which is not issued by a central bank but instead maintained on a peer-to-peer computer network much the way that file-sharing service BitTorrent exists on its users’ computers—has seen its circulation rise from less than two million four years ago to 12 million today. The number of daily Bitcoin transactions has surged from fewer than 5,000 to more than 60,000 in the past two years, and other crytocurrencies or related services, such as Ripple, Litecoin, Peercoin, Anoncoin and Zerocoin, have emerged. (Another reason Bitcoin has been a hot topic: its mysterious origins. It was created by a coder or group of coders named Satoshi Nakamoto who, then, mysteriously … [Read more...] about Why governments are keeping an open attitude toward Bitcoin
The Australian Transaction Reports and Analysis Centre (Austrade) will be monitoring cryprocurrency exchanges after the Australian Senate passed the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 on Thursday. The amendment bill, which was introduced in August, was approved by the House of Representatives on Wednesday, and took the Senate one day to pass. Under the amended legislation, digital currency exchange providers will be required to enroll with Austrac and register on the Digital Currency Exchange Register, the government agency now maintains. Exchanges will also need to adopt and maintain a program to identify, mitigate, and manage the money laundering and terrorism financing risks they may face. Similar to a bank, the exchange must also identify and verify the identities of their customers; and report suspicious matters, international transactions, and transactions involving physical currency that exceeds AU$10,000 to Austrac. They will also be … [Read more...] about Austrac gets the legal nod to monitor Bitcoin, Ethereum exchanges
Extortion is the biggest business at the moment on the internet, and most of the extortion conducted against businesses is demanding ransom be paid via cryptocurrency. According to Bryce Boland, chief technology officer for FireEye in the Asia Pacific region, many victims are purchasing cryptocurrency to pay the criminals; but a rush in new entrants into cryptocurrency ownership is also thanks to the surge in value of Bitcoin. Boland told ZDNet this is resulting in many businesses and individuals left vulnerable, and cryptocurrency exchanges sitting targets. "We have been seeing a huge amount of extortion against businesses, and most of those extortions are using cryptocurrencies for the payment -- mostly it's Bitcoin -- and so many of our customers are having to deal with coin security issues, or have to acquire Bitcoin to potentially pay criminals," he explained. "At the same time, we've seen exponential growth in the valuations of some of these currencies over the last year … [Read more...] about Bitcoin owners and currency exchanges emerging targets for criminals: FireEye
The new online currency Bitcoin has always been proud of its lack of government oversight. But that might be a less touted feature now that Bitfloor, the currency-trading environment for Bitcoin, has been robbed.Bitfloor founder Roman Shtylman posted an open letter on the Bitcoin forums admitting that: “Last night, a few of our servers were compromised. As a result, the attacker gained accesses to an unencrypted backup of the wallet keys… This attack took the vast majority of the coins Bitfloor was holding on hand.” A later update stated that the hackers transferred 24,000 Bitcoins — around $250,000 in U.S. currency — to an unknown location, clearing out all of Bitfloor’s virtual cash reserves. Shtylman promises to pay back users who’ve lost their Bitcoins using “current available funds.” The speed of that repayment may be an important factor for users: Over the span of only months, the value of … [Read more...] about Who needs the FDIC? $250,000 Bitcoin heist leaves virtual currency exchange safe empty
New York financial authorities said Tuesday that they would soon begin accepting applications for virtual currency exchanges including those dealing in bitcoins, in a sign of regulators' growing interest in the technology.Approved applications will ultimately have to adhere to a proposed regulatory framework that New York plans to enact for virtual currency firms operating in the state. That framework will be developed no later by the end of June, New York's Department of Financial Services announced Tuesday.New York recently held hearings on a proposed regulatory framework. Financial regulators in the state started looking at the use of Bitcoin and other virtual currencies last year.News of the regulations comes following the fall of Tokyo-based Mt. Gox, previously the largest exchange for buying and selling bitcoins, likely due to a hacking attack and mismanagement."The recent problems at Mt. Gox and other firms further demonstrate the urgent need for stronger oversight of virtual … [Read more...] about New York to Start Accepting Applications for Bitcoin and Other Virtual Currency Exchanges
Attackers made off with approximately US$5 million worth of bitcoins after hacking the Bitstamp exchange over the weekend.The attack, on Jan. 4, targeted Bitstamp’s operational wallets, the company said in a statement on Tuesday. Operational, or hot wallets, are connected to the Internet and allow customers to instantly exchange the virtual currency.Bitstamp suspended operations on Monday to investigate the attack and at the time instructed customers to not deposit to previously issued bitcoin addresses, saying those transactions won’t be honored. On Tuesday’s statement, it further emphasized that customers should refrain from making deposits and added that law enforcement is also involved in the investigation. Bitstamp didn’t specify which law enforcement organizations are investigating, nor did the U.K. company respond to a request for comment.The company also reiterated that its customers’ bitcoins are safe, saying that a majority of the … [Read more...] about Hackers steal $5M in bitcoin currency during Bitstamp exchange attack