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Daily Archives: March 7, 2017
Amazon gives up fight for Alexa’s First Amendment rights after defendant hands over data – The Verge
Posted: March 7, 2017 at 9:58 pm
Amazon has abandoned its legal battle to protect its Alexa assistant with First Amendment rights for now at least. The company filed a motion against a police search warrant in an Arkansas murder case earlier this month, but has now dropped the case after the defendant agreed to hand over the data contained on his Echo speaker to police.
In documents filed last Monday, defendant James Andrew Bates said that he was willing to allow law enforcement officials to review information contained on his Amazon Echo speaker, before the company handed the data over on Friday. Bates has pleaded not guilty to the murder of Victor Collins, who was found dead in Bates hot tub in November 2015.
Amazon said its search results were constitutionally protected opinion
Police had issued a warrant to seize subscriber and account information from Bates Echo, as well as all communication and transaction history from the device. Amazon provided the former, but argued against providing communication data, claiming that voice interactions with Alexa were protected by the First Amendment. That includes Alexas replies to a user Amazon claims that ranked search results are constitutionally protected opinion. Precedent for that argument was set by a 2014 case in which Google search results were classified as free speech by a San Francisco court, after a news website complained that its own pages were too far down the companys listings.
Amazon argued that police didnt have enough of a compelling argument in Bates case for it to hand over the data, with officials unable to prove that any potential information would not be available anywhere else. It remains to be seen whether Bates Echo does indeed have any pertinent information a hearing is scheduled for Wednesday this week. The defendants acquiescence also means that we dont yet have a definitive answer on whether Alexa is indeed protected by the First Amendment.
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Program seeks to educate students about First Amendment rights – Meriden Record-Journal
Posted: at 9:58 pm
HAMDEN Journalists and lawyers are teaming up to educate young people about free speech and open government.
The Connecticut Foundation for Open Government launched a pilot program this week pairing media representatives and attorneys to help high school and college students understand the importance of the First Amendment in their lives, said Mitchell Pearlman, secretary of the CFOG board of directors and chair of the new initiatives committee.
Presenters will focus on different topics with each age group. High schoolers may discuss what school authorities can do to limit rights of expression, while college students may discuss respecting free speech among differing viewpoints, Pearlman said.
From this section: Wallingford church tries outreach to lure churchgoers back
On Monday, CFOG debuted its program at Quinnipiac University with Mike Savino, the Record-Journals state Capitol reporter, and William Fish, a Hartford-based attorney with Hinckley Allen. Richard Hanley, Quinnipiac associate professor of journalism, moderated the event.
Savino serves as president of the Connecticut Society of Professional Journalists. He said in the current political climate of threats of press suppression by federal government officials, were on the front line of trying to stand up for the First Amendment.
Pearlman called Fish, who has represented the Hartford Courant in FOI cases, one of the most knowledgeable First Amendment lawyers in the United States.
Fish talked about situations when the government attempts to curtail free speech, starting with the Alien and Sedition Acts in 1798 and continuing through the Patriot Act after 9/11.
When things gets difficult, we have to be very careful and protective of the First Amendment, he said.
The program is being held in connection with National Sunshine Week, March 12-18. Freedom of Information laws are often referred to as sunshine laws since they shine a light on government information, records and people.
Record-Journal managing editor Eric Cotton and attorney Mary Schwind are scheduled to speak at Lyman Hall High School in Wallingford on Monday. Joy Haenlein, editor of The Advocate/Greenwich Time, and attorney Tom Scheffey are scheduled to talk with students from Maloney and Platt high schools at Platt in Meriden on Tuesday.
Also participating in the pilot program are East Lyme High School, the University of Connecticut at Storrs, Central Connecticut State University and Western Connecticut State University.
LTakores@record-journal.com 203-317-2212 Twitter: @LCTakores
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Daily Press a finalist for national First Amendment honor – Daily Press
Posted: at 9:58 pm
The Daily Press was named a finalist Tuesday in the annual Scripps Howard Awards.
The entry, which detailed years of reporting, utilizing and defending access to public information, was honored in the category of Distinguished Service to First Amendment. The Charleston (W.Va.) Gazette-Mail won the category, and the Dallas Morning News was honored alongside the Daily Press as a finalist.
"The mission of a news organization is simple: We are the community's watchdog. We don't work for the government. We work for the people," said Marisa Porto, publisher and editor-in-chief of the Daily Press Media Group. "We keep an eye on what local government is doing and how it is spending taxpayer dollars. That is our responsibility, and we take it seriously at the Daily Press.
"I couldn't be more proud of this team and the work it does every day."
The Daily Press entry included stories in which the reporting hinged on documents obtained under the Freedom of Information Act. Those stories included an attempt to gain access to a compiled database of court records, and investigation into how money was used in an undercover police operation, and an examination of a private loan guarantee made by the local airport commission.
The 375-page entry encompassed more than four years of reporting and included dozens of stories and editorials in which access to public information was essential.
"Recognizing the best journalism in the country is a fundamental mission of Scripps Howard Foundation," said Liz Carter, president and CEO of the foundation, in a news release.
"We commend the work these journalists did in 2016 and the impact their words, videos and interactive elements will continue to have across our communities."
The Scripps Howard Awards have been handed out for 64 years and honor excellence in journalism. The awards ceremony will be held April 12 in Cincinnati.
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Violent Protestors Misunderstand the First Amendment – Blogging Censorship (blog)
Posted: at 9:58 pm
'The Bell Curve' Author Charles Murray (Flickr)
Allison Stanger, Professor of International Politics and Economics, was to moderate.However, the event did not proceed as planned; students at the talk shouted Murray down and made it impossible for him to speak.He and Stanger moved the discussion to a different location, where the interview was live-streamed.That, unfortunately, was not the end of it.When they left, Stanger and Murray were confronted with angry protesters who tried to block their way.A melee ensued, during which Stanger was injured.
Stanger posted a commentary about the incident on Facebook.We cannot improve on her words.
I apologize for the impersonal and lengthy nature of this communication, but I wanted to provide a general response to
Posted by Allison Stanger onSaturday, March 4, 2017
Stanger and Middlebury responded appropriately, repudiating the violent and disruptive protests and reaffirming their commitment to the free exchange of ideas. Their improvisation allowed the talk to proceed, albeit in a lesser forum and format.
This incident, and earlier ones at Berkeley, University of Washington, and other institutions, reveal a disturbing trend, and a lack of understanding of what forms of protest the First Amendment does, and does not, protect.
Briefly, the Constitution protects the right to peaceful protests.Institutions and government officials are permitted to adopt neutral rules to regulate where and when such protests take place, as long as they are applied consistently and do not unnecessarily interfere with the ability of protesters to convey their message to their intended audience.
However, the First Amendment DOES NOT allow protesters to prevent someone else from speaking, and it does not sanction violence or intimidation. Middlebury, as a private institution, is not constrained by the First Amendment and has considerable leeway in setting and enforcing its own rules.Even at a public university, however, administrators would be justified in removing and disciplining students who disrupt a public event.Any institution, whether public or private, is entitled to rely on law enforcement to prevent and respond to violence or threats of violence, and protesters who engage in such behavior do so at their peril.
Perhaps more important, protesters need to understand a more basic principle: the right to speech exists for all, or for none. Anyone who wishes to exercise that right is obliged to acknowledge that others enjoy equivalent rights.
Once you violate that principle, speech rights for all are at risk.
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SUSANNA SMITH: First Amendment rights under attack – Neosho Daily News
Posted: at 9:58 pm
On Feb. 24, Donald Trump told the audience at the Conservative Political Action Conference (CPAC) that no one loves the First Amendment more than he does. One would suppose that he is claiming to love the First Amendment as written by our founding fathers in 1789.
On Feb. 24, Donald Trump told the audience at the Conservative Political Action Conference (CPAC) that no one loves the First Amendment more than he does. One would suppose that he is claiming to love the First Amendment as written by our founding fathers in 1789. Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. However, when citizens around the country gathered by the thousands to protest and hold the new administration accountable for their actions during his first weeks in office, they denied that we were exercising our freedom of speech and right to assemble. They accused protesters of being paid. This was an attempt to suppress the First Amendment right of free speech. When the free press holds the Trump administration accountable for their actions, Mr. Trump calls it fake news, the opposition party and the enemy of the people. He claims it is his First Amendment right to suppress news organizations if they hold his administration accountable rather than praising their actions and policies. One of the founding fathers, Thomas Jefferson, held the opposite view saying, Our liberty depends on the freedom of the press, and that cannot be limited without being lost. On Feb. 24, the administration made a move toward suppressing freedom of the press when they had Press Secretary, Sean Spicer, hold a private news briefing referred to as a gaggle. Right-leaning news organizations like Steve Bannons Breitbart were included, while those labeled by the administration to be fake news such as CNN, NBC, CBS, ABC, The New York Times, The Washington Post, and Politico among others were pointedly excluded. When the courts prohibited the administration from fulfilling the campaign promise to institute a Muslim ban by prohibiting travel from seven Muslim countries, unless the traveler was Christian, they claimed the ban had nothing to do with religion. And yet, according to a report on March 3 by National Public Radio, some travelers with Visas and even U.S. citizens continue to be detained for extensive questioning at some airports. Mohammed Alis widow and son were asked if they are Muslim, and then held for two hours. In his address to a joint session of Congress on Feb. 28, Trump said, Those given the high honor of admission to the United States should support this country and love its people and its values. The administration is expected to issue a new executive order during the first week of March. This is being done under the guise of public safety. But this ban most certainly undermines our free exercise of religion. When the founding fathers added the first amendment to the constitution they did not intend for it to be used as a tool hundreds of years later to impose on the people a personal idea of freedom of speech; a personal idea of freedom of the press; a personal idea of freedom of religion. If this administration succeeds in turning the First Amendment to their own purposes, these freedoms will be lost to we the people. Today I am exercising my First Amendment right to Freedom of Speech. I trust that all of our First Amendment rights will remain forever available to all citizens of the United States.
Susanna Smith writes a column for the Neosho Daily News.
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Firefox 52 Brings New ESR Version, Security Upgrades, And WebAssembly Support – Tom’s Hardware
Posted: at 9:57 pm
Mozilla released version 52 of Firefox, which brings new security features, as well as support for WebAssembly, a low-level programming language for the web. The new version of Firefox also coincides with a new Firefox Extended Support Release (ESR), which means the Tor Browser will soon benefit from all the security features that have been added to Firefox over the past year, including the browsers new sandboxing architecture.
Firefox 52 brought quite a few new features, especially in the security department.
WebAssembly
One of the most important features added to Firefox 52 is support for WebAssembly, a low-level programming language that can make web apps run at near-native speed.
This will make WebAssembly especially more useful for browser games, advanced web apps, and software libraries. Mozilla has been one of the primary developers of the language, as it wanted to offer a standardized alternative to Googles Native Client API, which boasts similar performance. The organization seems to have succeeded in that goal, as WebAssembly should soon be adopted by all the major browsers.
Strict Secure Cookies
Firefox 52 also supports Strict Secure Cookies, a policy that forbids HTTP websites from setting cookies with the secure attribute.
(Non-) Security Warnings
Google and Mozilla have promised for many months a new This connection is not secure warning that will appear in login boxes on pages that use HTTP, rather than HTTPS.
Both Google and Mozilla will progressively ramp up their warnings until all HTTP web pages are greeted by big red notifications that they are not secure. However, for now, the two companies are only warning about pages that require passwords or credit card information.
An Untrusted Connection error will also appear when Firefox 52 users visit a website whose certificate is chained to a root certificate that still uses the SHA-1 algorithm (such as those imported by the user). All the major browser vendors have had plans to deprecate SHA-1 for a couple of years now. With Google researchers proving that a collision attack on SHA-1 is now practical, there are even more reasons to avoid connections based on SHA-1 algorithms. However, for now, Mozilla will still allow users to bypass this warning.
Improved Multi-process, Sync Support
The multi-process architecture has also been enabled for Windows users that use touchscreen devices. The browser also got an enhanced sync feature to enable users to send and open tabs from one device to another.
Dropping NPAPI, Battery Status API Support
Support for the Netscape Plugin API (NPAPI) has been removed for virtually all plugins with the exception of Flash. Mozilla also removed support for the Battery Status API, which could have been used by some services to fingerprint users, thus significantly reducing privacy on the web.
Along with the regular release of Firefox 52, Mozilla also announced a new Firefox ESR, which has caught up with the features of the latest mainstream version of Firefox.
The ESR version is a release of Firefox that only receives security patches for almost a year (seven Firefox releases, to be exact). That means it falls behind in supporting new features as they appear in the regular versions of Firefox. This is usually a good thing for enterprise users, but also for certain organizations such as the Tor Project, which build the Tor Browser on top of Firefox ESR.
New features tend to introduce new bugs and it also takes time to validate them and to make sure they dont break anything. Therefore, something like Firefox ESR is more appealing to the Tor Project. However, sometimes staying almost a year behind is not that good, especially when the main browser introduces significant security improvements.
One of the major security improvements weve seen last year in Firefox is the switch to a better sandboxing architecture, which separates the UI and the content in a different process. That should make it harder for JavaScript exploits that may live inside a web page to make modifications to the browser itself.
As Firefox has kept seeing more and more exploits against it due to the fact that it doesnt have as good of a sandboxing architecture as Chrome does, the Tor Project has started to build its own sandboxing. However, the hardened version of the Tor Browser is only available on Linux for now, and its still in the alpha stage. The Tor browser should still benefit from Mozillas own sandboxing, especially on Windows.
This year, Firefox should continue to receive security upgrades, but it wont be until Firefox 59 (the next ESR version) that the Tor Browser will be able to implement them as well.
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German Court Rejects Injunction for Facebook in Syrian Selfie Case – Voice of America
Posted: at 9:57 pm
WUERZBURG, GERMANY
A German court rejected a temporary injunction against Facebook on Tuesday in a case brought by a Syrian refugee who sued the social networking site for failing to remove faked posts linking him to crimes and militant attacks.
The Wuerzburg district court said in a preliminary ruling that Facebook is neither a "perpetrator nor a participant" in what it said was "undisputable defamation" by Facebook users, but simply acting as a hosting provider that is not responsible for preemptively blocking offensive content under European law.
The posts in dispute featured a picture showing Anas Modamani, a 19-year-old from Damascus, taking a selfie with Chancellor Angela Merkel in September 2015 at a refugee shelter in the Berlin district of Spandau.
Modamani's image was subsequently shared on Facebook on anonymous accounts, alongside posts falsely claiming he was responsible for the Brussels airport bombing of March 2016 and setting on fire a homeless man in December last year by six migrants at an underground station in Berlin.
The court rejected the need for a temporary injunction sought by Modamani to require Facebook to go beyond measures the company had taken to block defamatory images of him for Facebook users in Germany using geo-blocking technology.
In a statement following the decision, Facebook expressed concern for Modamani's predicament but said the court's ruling showed the company acted quickly to block access to defamatory postings, once they had been reported by Modamani's lawyer.
The case has been closely watched as Germany, a frequent critic of Facebook, is preparing legislation to force the social networking website to remove "hate speech" from its web pages within 24 hours or face fines.
After the ruling, Modamani's lawyer in the case, Chan-jo Jun, told a news conference he was disappointed such imagery continued to circulate online and more must be done to force Facebook to delete hate-filled content on its own accord.
"We have to decide whether we want to accept that Facebook can basically do whatever it wants or whether German law, and above all the removal of illegal contents in Germany, will be enforced. If we want that we need new laws," Jun said.
Modamani's complaint maintained that defamatory images based on the selfie posted to Facebook were still viewable online outside of Germany, or by users within Germany using a sophisticated Tor browser.
But the court found that the risk of average German users seeing the illegal content was not sufficiently credible and therefore a temporary injunction was unnecessary at this stage.
The ruling said there remained a legitimate issue over whether it was technically feasible for Facebook to do more to block such images, but this would require testimony by experts.
Tuesday's decision is subject to appeal within one month of the yet-to-be-published written judgment, a court statement said. Jun declined to say whether an appeal was planned, saying the decision remained up to his client.
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Cryptocurrency Enthusiast Succesfully Mines Bitcoin on a 1985 NES Console – The Merkle
Posted: at 9:57 pm
People have tried to mine bitcoin on a wide variety of devices in the past. Due to the evolution of mining hardware, most of the older devices have become obsolete for this type of purpose. That hasnt kept users from getting creative, though, as one person has successfully created mining software for a 1985 NES. Quite an intriguing project, although it wont make anyone rich overnight.
Although it may sound unlikely to mine bitcoin on a NES gaming system, it is certainly possible to do so. What started out as an offhanded challenge quickly turned into an intriguing project for the person who developed RetroMiner. Not everyone may see the benefit of this project, though, as it is unlikely the NES is even capable of mining bitcoin at any more than laughable speeds.
Most people do not understand the concept of bitcoin mining. Since it takes dedicated expensive hardware to perform this process efficiently these days, mining bitcoin makes little sense. Showcasing how this process works on a device most people are comfortable with, however, may sway a few peoples minds in the process. Then again, it is unlikely anyone will try to mimic mining bitcoin on a 1985 NES, though.
To put this into perspective, mining bitcoin on an 8-bit game console involves a lot more work than one would assume. Bitcoin mining is a very resource-intensive process and the 1985 NES is not a top-notch machine by any means. For its time, it was revolutionary in every way possible, but things have evolved a lot over the past 32 years. Then again, it is nifty to see someone actively mine bitcoin on such a device, albeit it may not generate any coins in the process.
The NES is not equipped to communicate with the live bitcoin network, or performing SHA-256 hashing. Communication with the bitcoin network proved to be pretty easy to implement once a custom bitcoind version was compiled. Keep in mind this involves using a Raspberry Pi as a proprietary device, though. More detailed instructions on the software involved can be found on the Retrominer website
SHA-256 hashing requires multiple 32-bit operations to take place. The NES, however, can only perform 8-bit tasks, which seemingly makes it incompatible. However, it was possible to create an open implementation of SHA256 that works just fine with 8-bit hardware. The custom ROM including the SHA256 algorithm is sent to the NES through the Raspberry Pi, though. However, in the end, the 8-bit game console is more than capable of doing its job, albeit no one should expect any miracles.
Interestingly enough, the person responsible for the Retrominer project feels there is still a lot of room for future improvements. At the same time, none of these improvements will turn 32-year-old hardware into a money making machine by any means. Eventually, the goal is to move more parts of the mining process to the NES, rather than passing through a Raspberry Pi first. All things considered, this is quite an amazing project, that goes to show old game consoles can be repurposed for other tasks with a bit of tinkering.
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Top 5 Cryptocurrencies That Can’t be Mined – The Merkle
Posted: at 9:57 pm
Everyone involved in the cryptocurrency ecosystem is well aware of how bitcoin uses a proof-of-work algorithm. New coins are generated through the mining process, which becomes more difficult over time. However, not all cryptocurrencies in existence can be mined. Below are some of the more popular altcoins that offer no mining incentive, yet are still quite valuable.
The Ripple network works in a rather different manner compared to Bitcoin or even Ethereum. Positioning itself as the global settlement network, Ripple is not your average cryptocurrency by any means. Obtaining Ripple can only be done by buying the currency from various exchanges, as there is no option to generate XRP by mining. A total of 100 billion XRP has been created once the project launched. A few coins are destroyed every time a transaction takes place.
NXT is a popular altcoin that cannot be mined in the traditional sense. It is possible for users to forge new coins, but it doesnt require dedicated hardware to do so. Instead, users need to leave their wallet open assuming it contains a balance and they will earn small amounts of interest in the process. NXT runs a proof-of-stake algorithm, which makes mining in the traditional way obsolete.
Mining WAVES is entirely out of the question as well, since the project makes use of a delegated and leased proof-of-stake algorithm. The entire supply of WAVES tokens was premined, although users will be able to mine tokens in the future using a computer or mobile device. However, the entire token supply will never surpass the 100 million mark. All of the available tokens were issued during the WAVES pre-sale and the teams bounty program.
When Factom was first launched, there was a lot of excitement regarding this project. Considering how the project runs on top of the bitcoin blockchain, it cannot be labeled as an altcoin per se. Factom is something entirely different, although the projects currency called factoids cant be mined directly. One could call this system proof of usage, as users who hold factoids can convert them into Entry Credits to be used within applications using the Factom blockchain.
The network does not support mining, as a Factoid Software Sale was organized once the project was announced. Investors who bought Factoids can either sell them on an exchangeor keep them as a tool to buy Entry Credits. It is also possible to earn Factoids, by sharing computing power and resources with the network. It is quite an intriguing project that anchors data into the bitcoin blockchain. In fact, Bitcoins proof-of-work algorithm ensures all of the data processed by Factom is safe from tampering.
MaidSafe is another one of these projects that does not allow users to mine the native currency. All of the available tokens were issued two years ago, and no more tokens will be generated moving forward. This also makes it somewhat impossible to generate Safecoin right now, although it will be possible to mine the currency in the future. Investors hold 10% of the total supply, with 90% waiting to be rewarded to miners providing resources to secure the system. However, Safecoin is not mined with graphic cards, but rather by users dedicating hard drive space to the project.
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Approving bitcoin ETFs will lead investors to slaughter – The Hill (blog)
Posted: at 9:55 pm
The SEC is expected to act soon to approve or reject bitcoin-based Exchange-Traded Funds (ETFs). Such ETFs would buy and hold bitcoins and provide an opportunity for U.S. investors to speculate in bitcoin.
They are not in the public interest, and the SEC should reject them. Approving bitcoin ETFs would support a payment mechanism that has only one viable application break the law.
In general, I believe issuers should be allowed to issue any type of security as long as they properly communicate the risks to investors. I am not in favor of merit regulation in which regulators only approve investments that the regulators think are good investments.
Informed investors should be allowed to make their own investment decisions without interference from a nanny-state government. Furthermore, I am a big proponent of blockchain, the underlying technological breakthrough behind bitcoin.
Blockchain has many legitimate applications, but Bitcoin 1.0 is not one of them. Further, I see nothing wrong with digital currencies, and have calledupon the Federal Reserve to issue U.S. dollars in blockchain form.
Bitcoin was started in 2008 by someone or some group using the name Satoshi Nakomoto. No one knows for sure who Satoshi Nakomoto is.
There are people who are suspected of being Satoshi Nakomoto who deny it and others who claim to be Satoshi Nakomoto but cannot prove it. This murky background alone should give regulators pause.
Bitcoin is an electronic payment medium that allows anyone to transfer bitcoins securely from one bitcoin address to another. Transactions are verified by a group of so-called miners on the internet who verify each transaction. When the miners verify that a bitcoin associated with one address has not already been spent, they add the new transaction to the public record known as the blockchain.
Miners are paid for their activity through the issuance of newly-minted bitcoins derived from a mathematical formula that purportedly limits the total number of bitcoins that can ever be created. This is all secured through cryptography.
Bitcoin transactions are essentially anonymous. While the bitcoin blockchain records what bitcoins were sent by one address to another, it does not contain any information on the identity of those addresses. Unless someone does something to disclose their address, it is nearly impossible to figure out the identity behind an address.
Most of the trading in bitcoin occurs in China, and most of the mining activity is controlled by Chinese firms. This also raises serious questions about the ability of U.S. regulatory authorities to investigate and prosecute market manipulation of the bitcoin price.
As the proposed ETFs are just plays on the underlying price of bitcoin, this inability to even investigate manipulation of bitcoin prices means that the SEC will lack the fundamental ability to protect U.S. investors from abuses in this market. Approving bitcoin ETFs will lead U.S. investors to slaughter.
Bitcoin is a payment system ideally suited to the black market. The anonymity of bitcoin transactions makes it ideal for drug-running, terrorist funding and human trafficking. Bitcoin is the coin of the realm in the dark web.
Spurred by rumors the SEC will approve a bitcoin ETF, the price of bitcoin finally surpassed an ounce of gold. https://t.co/9gyf0g7vZe pic.twitter.com/KSwxB1Ukx7
When I give a talk about bitcoin, I usually query the audience about who has actually used bitcoin. The last time I did this, exactly one hand went up. A business owner said her business was hacked, and she had to pay the ransomwarein bitcoin.
Alas, the prospect usesfor the bitcoin ETFsdo not clearly communicate that criminal activities are the primary use of Bitcoin 1.0. Indeed, they do not even mention ransomware, narcotics or pornography. For this reason alone the SEC should reject them based on inadequate disclosure.
Yes, bitcoin proponents do claim that there are legitimate applications for bitcoin. However, these proposed applications are mostly theoretical and fall apart upon closer examination. These potential applications include:
Retail sales. The notion that merchants will flock to bitcoin because there are no chargebacks and lower fees has not materialized. While a few merchants now accept bitcoin, this has mostly been a novelty. Consumers have intelligently shied away from Bitcoin 1.0 because of the complete lack of consumer protection built into Bitcoin 1.0.
Bitcoins just like cash feature makes it as dangerous as cash with the added vulnerability of a hacked wallet with no recourse. Furthermore, as it takes around 10 minutes or more to verify a block and about an hour to reach true finality, there is substantial risk to merchants that bitcoins can be double spent by fraudsters acting in concert.
Digital gold. Some hold that Bitcoin 1.0 is a digital gold because there is a theoretical limit to the number that can ever be created. This conveniently ignores the fact that the computer software behind Bitcoin 1.0 is whatever 51 percent of the miners will accept. The bitcoin protocol can and will change, as it already has. Furthermore, gold has many commercial and industrial uses that give it intrinsic value, unlike bitcoins.
Micropayments.The mirage-like no transactions cost nature of bitcoin makes it look like a way to make micropayments work on the internet. Users would be able to efficiently pay a few cents here or there to read an article or listen to a song.
Alas, bitcoin trades are not free, and miners are already expecting transaction fees in order to incorporate transactions in blocks. Consumers arent exactly clamoring for a way to pay for content they now get for free, either.
Cross-border payments. Cross-border remittances are very expensive, and bitcoin-based applications are one of many solutions. While bitcoins, like electrons, can be sent cheaply anywhere in the world, the problem remains with both the first and last mile: getting the remittance from one currency into bitcoin and then from bitcoin into the local currency at the other end.
There are plenty of new entrants into the cross-border remittance space that are bringing the cost down better than bitcoin.The fact remains that the only viable application for Bitcoin 1.0 is to break the law.
It is certainly not in the public interest for the SEC to endorse a product whose only application is criminality. The SEC would not permit a Heroin and Cocaine ETF and it should not permit a Ransomware ETF either.
James J. Angel, Ph.D., CFA is a finance professor at Georgetown Universitys McDonough School of Business. He is not now nor has he ever been Satoshi Nakomoto.
The views expressed by contributors are their own and not the views of The Hill.
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Approving bitcoin ETFs will lead investors to slaughter - The Hill (blog)
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