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Daily Archives: June 29, 2017
Some Catholics say First Amendment rights under attack | WRSP – FOX Illinois
Posted: June 29, 2017 at 10:52 am
by Jaclyn Driscoll, Fox Illinois
A rally for religious liberty was held Wednesday because some Catholics say their first amendment rights have not and are not being protected. (WRSP)
A rally for religious liberty was held Wednesday because some Catholics say their first amendment rights have not and are not being protected.
"There's so many threats to religious freedom, from the redefinition of marriage and transgender issues, that we're dealing with a lot of issues at the same time," said Hillary Byrnes of the U.S. Conference of Catholic Bishops.
"I think our state is doing a horrendous job of protecting religious freedom," Hillsboro resident Mary Jo Cerny said. "I am appalled on the national level at what they've done."
Cerny, a former business owner and devout Catholic, says the government shouldn't be able to force businesses and other organizations to abandon religious beliefs.
"When they say that anybody with same-sex marriage that I have to provide for them," Cerny said. "I hope we have 8 million stores close when they tell them they got to do it."
Same-sex marriage was a reoccurring topic at the event. Bishop Thomas Paprocki says although it's an opinion no longer supported by the Supreme Court, the church's belief on marriage is one he will stand by.
"I'm not free to change my views," Bishop Paprocki said. "These are teachings that have been handed out for the last 2000 years and it is my job as the bishop to teach what the Catholic Church teaches."
Though some argue this belief doesn't support inclusion, Cerny says Catholics should be more concerned with remaining firm in their faith.
"Stand up for it," said Cerny. "Don't say, Oh well, I've got to include you. Christ said you have to accept everybody. You can. You can pray for them. He also said do not associate with those you know the devil's controlled."
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Brazilian site teaches journalists how to protect sources and personal data from digital attacks – Knight Center for Journalism in the Americas (blog)
Posted: at 10:50 am
Metadata? Encryption? Backdoor? Tor Browser? VPN? PGP? When it comes to digital security for journalists, the amount of technical terms and acronyms can be scary. But tools to ensure online privacy can be crucial to protecting sources, which is why the site Privacidade para Jornalistas (Privacy for Journalists) has been launched in Brazil.
On the site, a threat analysis helps you understand the best ways to combat surveillance, hacking, and the collection and retention of data from various adversaries, from governments to casual gossipers, to corporations and criminals. The initiative is based on Australias Privacy for Journalists, a project from the non-profit organization CryptoAustralia.
Since Brazilian journalist Raphael Hernandes launched his platform on March 6, 2017, he has been sought by colleagues in the newsroom who need tips on how to protect themselves in their investigations. Hernandes is data journalist at Folha de S. Paulo, where he offered a small workshop on the subject. According to him, the issue of privacy has aroused interest among colleagues.
"You can see that whoever accesses [the site] is interested. They spend a lot of time on pages and sees multiple pages per visit (average of 6), which shows interest in content. There are a lot of things we do not look at everyday, at how exposed we are," Hernandes told the Knight Center.
The site that served as inspiration for Hernandes came from the personal initiative of information security specialist Gabor Szathmari, president of CryptoAustralia. He worked with the Walkley Foundation at CryptoParty Sydney, an event to teach digital safety rules to journalists.
I thought if I had to develop the training materials for the workshop, why I should not publish them for the benefit of the whole journalist community in Australia and beyond? I have looked around, and although I found heaps of valuable materials online, I did not find any privacy and security tutorials that were addressing the specifics in Australia, Szathmari told the Knight Center.
Raphael Hernandes explained to the Knight Center that it is important to understand what protection to use in each case.
The secrecy of our sources is one of the most important things we have. If its a person we talk to every day, theres no need to hide him or her, but maybe the source is sending something sensitive and its important to encrypt. We should not live in paranoia, but think about our sources and what they need. Its treating a cold with cold medicine, not with a cannonball, he said.
According to Hernandes, the discussion is especially relevant in Brazil. In the countrys Civil Framework for the Internet, providers are supposed to collect and retain navigation data for one year. A court order is required to access these metadata, but a bill in the Chamber of Deputies wants to remove this requirement.
For Hernandes, this scenario leaves a situation where journalists and individuals should leave as few traces as possible which he assures is not a difficult task.
In fact, there are things that are more advanced, such as setting up GlobaLeaks (a secure file and message exchange tool). But were here to help. And apart from that, most are tools we can use at home anytime. It may seem difficult at first, but more so because it has words that we do not use every day, such as back door (software that allows remote access to the computer), he said.
According to Szathmari, the most basic security measures include replacing messaging programs like Messenger and Skype for encrypted platforms, like Signal and Wire. In more sensitive cases, other measures are necessary. Finally, leave your smartphone home if you are meeting with the source, as it is a spying machine. I suggest avoiding a computer altogether and dusting off that good old reporters notebook for very sensitive notes, he said.
Concerns about digital security are not unique to Brazil or Australia. Several journalism organizations around the world, such as the Committee to Protect Journalists (CPJ), have sections dedicated to the topic. Other organizations dedicated to digital security, such as the Electronic Frontier Foundation, offer specific tips and guides for journalists and their sources.
Here are some basic protection tools, according to Raphael Hernandes:
Encryption of HD and flash drives - Encryption places a password on hard drives and USB devices, which protect sources and personal files in case the equipment is lost or stolen.
Two-Step Authentication - Used for online banking access, it can be configured in your email and social networks. Login is done with something you know (your password) and something you have (a code sent to your smartphone, for example). This avoids problems even if you have compromised passwords.
Signal - Application available for encrypted message smartphones. If the cell phone is intercepted, no one can understand what was written there.
Sync.com - Free cloud storage system. It uses the zero-knowledge protocol, meaning it stores information but does not know what is being stored. As a rule, the websites we use commonly scan the files and pass reports to the authorities. Sync is encrypted and more secure, very simple to use.
PGP - Pretty Good Privacy acronym. It's a way to encrypt emails. Like a kind of chest, but with two keys: one to lock and the other to unlock. You give the key that locks the chest so people can send you files and messages. But only you have the keys to unlock the content.
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Brazilian site teaches journalists how to protect sources and personal data from digital attacks - Knight Center for Journalism in the Americas (blog)
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Purism aims to push privacy-centric laptops, tablets and phones to market – Computerworld
Posted: at 10:50 am
A San Francisco-based start-up is creating a line of Linux-based laptops and mobile devices designed with hardware and software to safeguard user privacy.
Purism this week announced general availability of its 13-in. and 15-in. Librem laptops, whichit says can protect users against the types of cyberattacks that led to the recent Intel AMT exploits and WannaCry ransomware attacks.
The laptop and other hardware in development has been "meticulously designed chip by chip to work with free and open source software."
"It's really a completely overlooked area," said Purism CEO Todd Weaver. "We also wanted to start with laptops because that was something we knew we'd be able to do easily and then later get into phones, routers, servers, and desktops as we expand."
The company has already designed a 11.6-in. Linux-based 2-in-1 that can currently be pre-ordered. Weaver expects the 2-in-1 to be available in about six months. The 2-in-1 with a basic 256GB SSD and 8GB of memory retails for $1,398.
Purism's 2-in-1 is based on the same Linux OS as its laptops and has physical toggle switches that can turn off its cameras, microphone and wireless connectivity.
Around the same time, the company wants to ramp up development of an open-source smartphone that will also sport native security features such as an encrypted messaging platform. The company still needs $5 million in capital to develop the privacy-based smartphone, Weaver said.
Now that the Purism has built up an inventory of laptops, however, it will begin targeting businesses as customers for its laptops; wait times for one should only be a few weeks.
"The nice thing about the B2B sales is our core audience -- the software developers, hardware geeks and hardcore security individuals," Weaver said. "CTOs and CIOs are, of course, in that core audience and they recommend technology to buy. So, we'll start picking up small businesses...and be able to expand that to much larger enterprises because we have a depth of credibility they're interested in."
By "depth of credibility," Weaver means his company's philosophy that it will always release its system source code, enabling it to be audited and known vulnerabilities eliminated in order to avoid even theoretical cyberthreats.
For example, in May, Intel announced that PCs sold after 2010 with its server chipsets could be remotely hacked due to a critical vulnerability in its Active Management Technology (AMT) firmware, a component of Intel's 7th Generation Intel Core vPro processors. Intel released a patch for the vulnerability.
The vulnerability was first discovered in March by a researcher at Embedi, a security product provider. Along with allowing a potential hacker to gain control of a PC's mouse and keyboard, the vulnerability also enabled a hacker to bypass a computer's password authentication processes.
"Prior to the Intel publishing the AMT (Active Management Technology) exploit, it was all just a theoretical threat," Weaver said. "We took it upon ourselves to say that is a theoretical threat, so we're going to remove it. The way we remove it is, of course, we don't use an Intel networking card, we don't use a management engine that has that networking stack in it, and we don't use a CPU that has vPro, which means AMT isn't able to be used."
Because Purism's laptops don't natively run Windows or macOS or applications, they're not suseptible to common ransomware attacks, such as the WannaCry attack in May, Weaver said.
Purism's 15-in and 13-in Librem laptops.
The laptops are built on sixth-generation Intel i5 mobile processors and so-called PureOS, a platform based on Debian GNU/Linux that runs the open-source Coreboot BIOS firmware.
The computers come preinstalled their version of the LibreOffice suite of business applications, software created by The Document Foundation, a non-profit organization based in Germany. The suite includes email, spreadsheets, graphics, drawing, presentation, media player and Purity's own browser called PureBrowser.
PureBrowser is based on the Firefox web browser but includes security add-ons such as the Privacy Badger, a plug-in created by the non-profit Electronic Frontier Foundation (EFF) that blocks spyware and browser trackers.
The laptops also come with a preinstalled Tor Browser, an anonymizing browser that uses encryption and anonymous routing to protect users' rights, and the EFF's HTTPS Everywhere, a browser extension that encrypts communications with many major websites.
Despite the company's plans, analysts say it could have a tough climb.
Mikako Kitagawa, a principal research analyst at Gartner, said a vendor as small as Purism will have a difficult time breaking into even the midsized corporate market, as that laptop market is already dominated by Lenovo, Dell and HP.
"The reality is that large companies do not really get their hardware from unknown vendors," she said.
Additionally, when Purism announced the Librem laptop line in 2015, it caused something of a stir in the open-source software community from developers who argued the company wasn't fully delivering on its promise of a completely open-source computer because it used an Intel processor and a proprietary BIOS.
"The criticism comes down to the strictness of Free Software Foundation enthusiasts, which is completely understandable," Weaver said. "The concern from that audience...is that they wanted us to be further along than we are."
Now that Purism is using Coreboot, there is only 200KB worth of proprietary binary code remaining on the computer, Weaver said.
He compared the laptops and their software to a layer cake in which the first seven layers are open source, and only the last layer remains to be freed through reverse engineering.
"Yes, we know we have this binary, but it's at the lowest level. We're investing [revenue] back into the supply chain and reverse engineering the management engine, which is the last remaining binary we have," Weaver said.
A base model of the Librem 13 laptop, with 8GB of RAM and a 250GB SATA 3-attached SSD retails for $1,898; the Librem 15, also with 8GB of memory and a 250GB SATA SSD, retails for $1,999.
Purism launched a crowdfunding campaign in 2014 to raise money to develop the two laptops and a 2-in-1 tablet. The crowdfunding campaign for the 13-in laptop raised about $462,000 of a $250,000 goal; the 15-in laptop raised nearly $600,000 of its $250,000 goal.
All together, Purism said it's raised more than $2.5 million (including seed funding) and has seen 35% to 38% average monthly growth in orders over the last year for its Librem 13-in and 15-in laptops, respectively. Previously, the laptops were only made-to-order, meaning it took up to three months to get one.
Along with free, open-source software, the laptops come with two physical toggle switches, one to turn off the microphone and camera and another to shut off wireless/Bluetooth connectivity. The laptops also sport something called a "Purism Key," a one-touch method to search the computer for documents and applications.
The laptops have a distinctively MacBook-like look to them. They include a multi-touch track pad that can scroll, click, zoom, and scale the view in the same way a MacBook's trackpad works.
Weaver said that's no coincidence, as purchasing any sturdy, all-aluminum laptop case from third-party vendors who mimic Apple designs leaves little room for customization. And, in fact, a lot of Purism's core customers are Apple enthusiasts and will be familiar with the build quality.
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Beware Cryptocurrency "Gold Rush Mentality": Aberdeen Asset Mgmt – Investopedia
Posted: at 10:50 am
On one hand, it's hard for many investors not to be excited about the meteoric rise of cryptocurrencies in the past few months. Bitcoin has roughly tripled in value since the beginning of the year, Ethereum is up by about 40 times, and Ripple, one of the newest arrivals on the scene, gained a shocking 3800%. What's more, the total market cap for the cryptocurrency industry has been steadily increasing as well, and more and more businesses are finding ways to incorporate digital currencies into their models and payment systems. However, with all of this excitement about the new industry, there are also many analysts approaching with caution. Aberdeen Asset Management is one of the latest firms to do so, suggesting that there is a virtual currency bubble which will, at some point, eventually burst.
In an interview with Bloomberg, the head of global venture capital at Aberdeen Asset Management had some words of caution for investors considering the cryptocurrency field. Peter Denious said that "prices right now aren't being driven by network usage, they're being driven by speculation that tokens are going to appreciate. It's a gold-rush mentality." Denious and others point to the rapid increase in the number of initial coin offerings, or ICOs, as well as the quick gains in the price of tokens upon listing as two signs that a bubble is in effect. ICOs are tremendously successful, with many companies operating in the blockchain space making millions of dollars in minutes, even if they have no proven or distinctive idea backing their token.
It may be important to note, however, that digital currencies are not the only assets which have seen gains to record levels in recent months. The returns on the leading cryptocurrencies so far in 2017 have been unparalleled in other areas, but other asset classes have also made impressive gains. Nasdaq and S&P 500 indices are at record levels, despite the widespread uncertainty surrounding global markets. At the same time, housing prices seem to have mostly recovered from an earlier burst.
Coin Telegraph suggests that the increase in asset prices may be due to large degrees of liquidity across global markets, thanks to quantitative easing by many central banks around the world. Considering this possible reason for the gains, it may not be just a cryptocurrency bubble that eventually bursts. If there is, in fact, a burgeoning bubble in either the real estate or equity worlds, those could have serious and long-lasting effects on the worldwide economy. As cryptocurrencies are untested, it's more difficult to say what the impact of a bubble burst would be in that area.
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AMD’s stock falls as Nvidia’s upcoming cryptocurrency GPUs pose a … – MarketWatch
Posted: at 10:50 am
Advanced Micro Devices Inc.s stock fell Wednesday, bucking the sharp gains enjoyed by its peers and the broader stock market, amid growing concerns that cryptocurrency miners may start going elsewhere for their graphics cards.
The chip-makers stock AMD, -2.43% closed down 1.3% at $13.23, paring earlier losses of as much as 2.3% at an intraday low of $13.09. With volume of 84.8 million shares, the stock was the most actively traded on the Nasdaq exchange.
Meanwhile, the PHLX Semiconductor Index SOX, -1.64% climbed 1.8% and the S&P 500 index SPX, -0.21% rallied 0.9%.
Analyst Christopher Rolland at Susquehanna Financial said that after a recent trip to Asia, he can confirm recent media reports that key rival Nvidia Corp. NVDA, -2.15% will release two new cryptocurrency-specific graphics processing units (GPUs) during the third quarter. Nvidias stock surged 3.5% to snap a four-session losing streak.
As these new products are more price competitive, they may pose a risk to AMDs current offerings in the market, Rolland wrote in a note to clients. [The] new cards may upset AMDs alt-crypto coin dominance.
Nvidia said it had no comment. AMD did not respond to a request for comment.
AMDs stock has run up 16.7% year to date, after rocketing nearly fourfold in 2016, fueled by news that Apple Inc. AAPL, -0.83% would use AMD chips in its new iMac Pro. It also got a boost from a surge in demand from cryptocurrency miners and hard-core gamers and optimism over the release of new Epyc chips for the enterprise market.
Dont miss: AMDs stock extends rocket climb, fueled by tremendous graphics cards demand.
See also: AMDs stock takes another Epyc leap.
Nvidias stock hasnt been far behind, soaring 42.2% year to date after more than tripling in 2016, on the back of a strong showing in the server business and the potential for strength in the autonomous vehicles market.
On Wednesday, Mizuho Securities analyst Vijay Rakesh reiterated his bullish stance on Nvidia, while raising his stock price target to $17012.0% above current levelsfrom $145.
While the gaming business has been soft so far this year, conservative gaming estimates for the second half of the year could see upside, as near-term cryptocurrency and mining trends are driving GPU shortages and pricing, combined with new auto wins and ramps at ZF, Rakesh wrote in a research note.
Although AMD has held a dominant position in the cryptocurrency market, Susquehannas Rolland said that position could be threatened by the lack of supply of AMD GPUs and from a cost-reduced part supplied by the competing Nvidia. But perhaps not for very long, as AMD also have its own new offering coming soon, Rolland added.
We note that while contacts did not mention upcoming AMD mining-specific cards, some media reports suggest their coming arrival, perhaps favoring a modest swing in competition back to AMD, Rolland wrote.
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Recovery Seen in Cryptocurrency Market – CryptoCoinsNews – CryptoCoinsNews
Posted: at 10:50 am
After a major crash yesterday, in which some $21 billion were erased from the cryptocurrency market, a recovery was seen over the past 24 hours, as key currencies climbed back. While it is too soon to call it a trend reversal, it is possible that the crash was caused by a major sell-off that has since subsided.
Ethereum rebounds to $300 before correcting again
The recovery seen in the cryptocurrency market did not skip Ethereum, as it nearly reached the $300 mark yesterday, before correcting back to around $270. After three consecutive losing days, the worlds second largest cryptocurrency finished yesterday up by around $20. In addition, Ethereum traders continue to be very active, keeping trading volumes above $2 billion yesterday.
Bitcoin flirts with $2,500
After adding more than $100 to its value yesterday, Bitcoin continued its positive trend this morning, reaching the psychologically important $2,500 milestone, then correcting slightly. Bitcoins market cap briefly fell below the $40 billion mark yesterday, but managed to climb back.
China wants to push blockchain technology
The Peoples Bank of China has announced a five-year plan to promote the integration of blockchain technology, which serves as the underlying infrastructure for most major cryptocurrencies. The bank has also looked into using a cryptocurrency of its own, which could mean that China might be the first government in the world to fully embrace cryptocurrency technology. It is unknown if the bank intends to develop a new currency, or convert the Yuan to blockchain technology, however, it is still a major seal of approval for the cryptocurrency market from the worlds second-largest economy.
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Some Central Banks Are Exploring the Use of Cryptocurrencies – Bloomberg
Posted: at 10:50 am
By
June 28, 2017, 1:18 PM EDT
In a world were financial transactions are largely electronic, central banks are exploring the idea of using virtual currencies, even as cyberattacks and price swingsdominate the headlines.
"The central bank digital currency would be like a paper bill except digital," Dartmouth College economics professor Andrew Levin said in an interview on Bloomberg Television. For example, "it would be representing a U.S. dollar, but it would be basically free to use."
Dartmouths Levin tells Bloomberg TV why central banks are exploring the move to digital currencies.
Source: Bloomberg
Whereas credit cards charge transaction fees and interest, and paper currencies can be costly to process, digital currencies could be a "real benefit" to small businesses and consumers, Levin said.
Central banks from across Europe and Asia are looking into virtual currencies. In March, Vietnams central bank said it was "seriously" studying the possibility of using bitcoin. The Peoples Bank of China has run trials of its prototype cryptocurrency, and the Danish central bank is considering minting e-krone. But Federal Reserve Board Governor Jerome Powell said in March the U.S. central bank is not considering a digital currency.
For a replay of the inaugural Bitcoin Facebook Live show launched yesterday.
Skeptics have questioned whether one of the key features of cryptocurrencies -- their decentralized nature -- makes them a good fit for central banks. But in a recent proposal published by Levin and Rutgers University economics professor Michael Bordo, the pair said central banks could provide a secure store of value in their own digital currency.
"In contrast to bitcoin, the value of the central banks digital currency would be fixed in nominal terms," Levin and Bordo wrote. "Moreover, the central banks digital currency could be implemented using an account-based system, thereby avoiding the resource-consuming mining operations involved in generating virtual currencies like bitcoin."
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Leveraged Cryptocurrency Exchange BitMEX Adopts First … – Finance Magnates
Posted: at 10:50 am
Kx Systems, a subsidiary of First Derivatives plc (FD), and provider of the kdb+ time series database, announced today that Bitcoin Mercantile Exchange (BitMEX), a cryptocurrency derivatives exchange, has expanded the use of kdb+ within its trading platform.
The London Summit 2017 is coming, get involved!
Kdb+ is widely used in the financial services industry to power trading and risk management platforms, setting industry records for speed, performance and stability in high performance applications. These attributes are increasingly recognized across a range of markets requiring fast analytics on big data, such as manufacturing and retail, while Kx is also said to be at the forefront of the use of predictive analytics, virtual reality, artificial intelligence and machine learning techniques.
BitMEX is a trading venue where all deposits and withdrawals happen on the Bitcoin blockchain. Started in 2014, current trading volume exceeds US$3,500,000,000 per month of derivatives products. The firms founders have experience in equities derivatives trading, algorithmic trading systems and high-performance web applications. They explain that building on the foundation of their experience creating market making and high frequency trading systems with kdb+, the engineers at BitMEX are continuously expanding their offerings.
Arthur Hayes, CEO of BitMEX, said: With kdb+ we can dynamically change and add new features and bring new products to market within two hours. Having this speed gives us a significant edge. Another advantage to using kdb+ is we know that our numbers are correct all of the time. This is important when you are dealing with lots of leverage and other technologies. We can be confident to offer high leverage because we have audited, reliable results. Our competitors can barely do these calculations within the day, they go offline to do this.
Mark Sykes, COO at Kx Systems, said: We are increasingly seeing kdb+ being used for streamed event processing and in-memory analytics, as well as more traditional time-series storage. BitMEXs extraordinary growth, cementing them as the worlds most advanced derivatives exchange for virtual currencies, tracks with their expanded use of Kx software, perfectly illustrating how our technology is transforming new markets. We look forward to working closely with BitMEX as they continue writing their success story.
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How can I invest in bitcoin? – The Guardian
Posted: at 10:50 am
If you are investing, does bitcoin have an intrinsic value, like gold? To me, bitcoins look more like tulip bulbs. Photograph: Benoit Tessier/Reuters
How can I invest in bitcoin? Id like to invest a few hundred pounds. Andy
There are at least three ways, though only one of them looks rational today. First, you could mine your own bitcoins. Second, you could buy some from an exchange. Third, you could buy shares in a fund that has invested in bitcoins.
Please note that answering your question is not a recommendation, and I am not qualified to give advice on investments. However, as electronic payments expert Dave Birch put it to me on Twitter: one doesnt invest in bitcoin, one gambles on bitcoin.
The problem is that people can make money by buying things that are essentially worthless, such as used postage stamps, Beanie Babies, and (historically) tulip bulbs. Tulipmania operated on the bigger fool theory, also known among stock traders as momentum investing. For example, tulip bulb prices may be insane but they keep going up. I may be a fool to buy them, but I expect a bigger fool to buy them from me. Simply replace buy low, sell high with buy high, sell higher. This works until you run out of fools.
However, you can buy things that dont depend on bigger fools appearing, such as land and gold. Their prices may vary dramatically, but over the long term, they retain real value. When tulip bulb prices were tumbling, everyone wanted to sell. When gold prices tumble, people with money look forward to an investment opportunity.
Bitcoin is a digital currency. If you want to buy a camera for 250, then you need a way to transfer 250 to the seller. In theory, it doesnt matter if you pay cash, write a cheque, email the money via PayPal or use bitcoin. In reality, you have to balance a range of factors including convenience, security and transaction costs. Id use a credit card, if possible, because bitcoin payments are not reversible and offer no consumer protection.
But if you are investing, does bitcoin have an intrinsic value, like gold? To me, bitcoins look more like tulip bulbs.
The price of a bitcoin may increase because, for example, it is attractive to technology enthusiasts, and because we are all reading stories about how people made or failed to make fortunes. But, like tulip bulbs, bitcoins could be worthless when the bubble bursts.
As Henry Blodget told CNBC: Look, this is a perfect asset for a speculative bubble. There is a finite supply. There is no intrinsic value. If anybody is persuading you that it should somehow be related to some GDP or gold put down the Kool-Aid and back away.
You could argue that banknotes dont have any intrinsic value either. However, banknotes are backed by governments that have a strong interest in keeping their value relatively stable. Governments dont (yet) care what happens to bitcoins.
Bitcoins are mined by people solving problems with computers. In the beginning, the best way to make money from bitcoins was to mine them with a home PC. However, bitcoin mining becomes more difficult the more miners there are. Today, you need specialised hardware, and you need to join a mining pool where large numbers of miners work together and share the results. Coins are not pure profit because of the cost of the hardware and the electricity consumed when mining. Also, you dont know what bitcoins will be worth when you start mining them.
However, there must be dozens of digital currencies besides bitcoin, and the CoinChoose website lists a Top 20. Well known alternatives include Ethereum, Litecoin, Dogecoin and Bytecoin. You might find one that is still worth mining, or that might represent a better gamble than bitcoin. CryptoCompare is another useful website.
Ethereum is interesting because its backed by an alliance that includes JP Morgan, Microsoft, Intel, Banco Santander, Credit Suisse Group, UBS and BP. Its designed to perform transactions very much faster than bitcoin, and its hashing system is decentralised by design. It favours individuals, not mining pools.
You can buy bitcoins from a bitcoin exchange or online broker, directly from another individual, or from an ATM. Coin ATM Radar lists about 50 bitcoin ATMs in London, many of them in convenience stores. As when buying foreign currencies, theres a fee, which can range from 3.1% to 17.6%. The website covers 56 countries and you can search for an ATM near you.
A bitcoin ATM usually takes cash from your bank card, though some only accept banknotes. It sends your digital currency (bitcoin, litecoin etc) to your wallet, which could be a smartphone app, or to your email address. Some ATMs can print paper wallets that you can scan later.
If you buy a digital currency from an exchange, it may well offer you an online wallet, but your money is at risk unless you have the keys. When the Mt Gox bitcoin exchange was hacked, around 850,000 bitcoins went missing. It was a $450m loss at the time, but at todays exchange rate, it would be $2bn.
There are dozens of different wallets for different purposes, with hot wallets on smartphones and cold storage wallets held offline on paper, on hardware devices (cards, thumbdrives etc) or on separate PCs. These are equivalent to your spending money and your savings account respectively.
You will need to research wallets. However, We Use Coins has a decent guide, and it recommends BitPays Copay to beginners. Its easy to use and it runs on iOS, Android, Windows and Windows Phone, MacOS and Linux. It can also handle shared accounts.
I used my Android phone to search for bitcoin wallet on Google Play, and gave up when it produced around 200 results. Copay was near the top. It only took two minutes to create a wallet, and it prompted me to make a backup: Watch out! If this device is replaced or this app is deleted, neither you nor BitPay can recover your funds without a backup.
It also warned me that Anyone with your backup phrase can access or spend your bitcoin. I dutifully wrote it down.
Once the wallet is set up, you can use the app to buy bitcoins from Coinbase in 33 countries, and from Glidera in the USA. It can take several days to buy or sell bitcoins via Coinbase.
Some investors presumably ones who do not have teenage children think bitcoin is for the tech-savvy, difficult to buy and perhaps even harder to store safely. This has given rise to funds that buy bitcoins or related assets such as mining companies. Last month, The Motley Fool described one ETF as The Worst Way to Buy Bitcoin. At the time, the story said, shares in the Bitcoin Investment Trust cost about twice as much as the bitcoins it owned, but typically they have traded at an average premium of 39% to underlying value of the bitcoin.
You could buy dollar bills for $1 each, so why would anyone pay $1.39 to invest in a $1 bill which is actually worth less than $1, because of the 2% annual management fee? Answer: the laws of supply and demand.
Other American investors were conned by a Ponzi scheme that offered shares in bitcoin mining machinery.
Stories like that could be signs of a bubble market, but if so, when and how it will end is impossible to say.
Have you got another question for Jack? Email it to Ask.Jack@theguardian.com
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What delivered the best return of 2017’s first half? Bitcoin and ethereum – MarketWatch
Posted: at 10:50 am
Say what you will about the cryprocurrency market in the first half of the year, but give it this: it wasnt boring.
In contrast to the U.S. equity market, where a popular measure of volatility has been hovering near a multidecade low since May, there was nothing but volatility in the realm of digital currencies, underscored by jaw-dropping gains on the year and a gut-wrenching drop this month.
Digital currencies hit a number of key milestones in 2017, including breaking into the 12-digit club, as the combined market value of all cryptocurrenciesled especially by bitcoin and ethereumsurpassed $100 billion for the first time ever, and currently stands near $104 billion.
Cryptocurrencies have become so prominent that major semiconductor stocks have started to move based on how readily their chips are used by miners, who use high-powered computers in a race to solve complex puzzles. Those who solve these problems are rewarded with the digital gold of bitcoin and other digital currencies.
The volatile ride cryptocurrencies in garnering increased attention from mainstream companies and average Joes and Janes, belies the setbacks it has faced on the regulatory front. Notably, the Securities and Exchange Commission in March rejected what would have been the first bitcoin exchange-traded fund, as well as the reputation hits from recent high-profile cyberattacks where bitcoin ransoms were demanded.
Still, the overall trend in crypto in 2017, as it was last year, was shockingly positive. The price of single bitcoin BTCUSD, -1.98% currently sits at $2,565.47, up 165% thus far this year, though down 15% from a record high above $3,000 hit earlier this month.
Gains for ethereum has been even more pronounced. Not only has bitcoins chief rival surged past it in terms of daily trading volume, according to CoinDesk data, but it is also up nearly 3,500% on the year, having rallied from $8.40 at the end of 2016 to a shade under $300 presently. And that surge includes ethereums current bear market, as it is down more than 20% from a record hit earlier this month.
See also: Heres how blindingly fast bitcoin has been surging
Read more: How cryptocurrency ethereum looks set to overtake bitcoinin one chart
The size and scope of the rallies in digital currencies easily eclipses the year-to-date move of more traditional assets like stocks. For example, the S&P 500 index SPX, -0.37% despite enjoying its own run-up, has gained a much milder 9% year to date, the Dow Jones Industrial Average DJIA, -0.19% is up 8.6%, while the tech-heavy Nasdaq Composite Index COMP, -0.96% is up a touch more than 15% in 2017. Among the best performing commodities, palladium PAN7, -1.77% is up more than 25% on the year. None of those rallies approach the year-to-date surges in popular cryptocurrencies.
Perhaps for that reason, questions about whether these digital currencies are in a bubble have emergeda debate that will undoubtedly continue to rage in the second half of the year. That is particularly if they show further stabilization and add to their string of records.
Whatever, the future holds for bitcoin, it appears that with its $42 billion valuationenough that it has become bigger than such iconic brands as Delta Air Lines DAL, +0.56% and Deere & Co. DE, -0.40% one can no longer argue that bitcoin is simply a niche asset, even if bitcoin and its rivals are risky and untested.
And while one proposed metric for bitcoin valuation suggests the digital currency is within historical realms, Morgan Stanley recently argued that government regulation was needed for bitcoin to continue its dalliance into the record books.
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