Daily Archives: November 20, 2020

The Government’s Momentum in Ensuring Dominance in AI Continues as OMB Issues Guidance for Regulation of AI Applications – Lexology

Posted: November 20, 2020 at 12:57 pm

On November 17, 2020, the Office of Management Budget (OMB) issued Memorandum M-21-06, Guidance for Regulation of Artificial Intelligence Applications providing policy considerations for AI applications that are developed and deployed by the private sector.

The Memorandum notes that fostering innovation and growth in AI is the Governments top priority and thus agencies must avoid implementing policies or regulations that hamper these priorities. To that end, the Memorandum: (A) propounds ten principles that agencies should consider when determining whether regulation over AI capabilities are necessary; (B) identifies four non-regulatory actions that agencies can take outside the rulemaking process; and (C) addresses how to reduce barriers to the deployment and use of AI.

The ten principles that agencies should consider when formulating regulatory and non-regulatory AI approaches are: (1) Public Trust in AI; (2) Public Participation, including from industry; (3) Scientific Integrity and Information Quality; (4) Risk Assessment and Management; (5) Benefits and Costs; (6) Flexibility; (7) Fairness and Non-Discrimination; (8) Disclosure and Transparency; (9) Safety and Security; and (10) Interagency Coordination.

The Memorandum notes that agencies may find that regulation is unnecessary but that a non-regulatory approach may be warranted to address the risks of AI applications. The Memorandum provides examples of such approaches, including: (1) Sector-Specific Policy Guidance or Frameworks; (2) Pilot Programs and Experiments, including periodically informing industry and the public about emerging trends and changes; (3) Voluntary Consensus Standards, including involving the private sector and other stakeholders in the development of such standards; and (4) Voluntary Frameworks.

The Memorandum also addresses how to reduce barriers to the deployment and use of AI. The memo states that agencies can: (1) provide access to federal data and models for AI R&D; (2) communicate with the public about the benefits and risks of utilizing AI; (3) engage with the private sector regarding the development of voluntary consensus standards; and (4) engage in international regulatory cooperation.

Finally, the Memorandum requires agencies to submit a plan that identifies any regulations that govern the agencys use of AI applications and also to list and describe the agencys plan to regulate AI. Agency plans are due to OMB by May 17, 2021.

The key takeaway for federal government contractors is that the Government is making a big push with respect to AI governance and safety, and now is the time for industry to get involved through opportunities such as public-private working groups and notice and comment rulemaking. Doing so can help shape any regulatory or non-regulatory actions that may soon apply to industrys development and deployment of AI applications.

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The Government's Momentum in Ensuring Dominance in AI Continues as OMB Issues Guidance for Regulation of AI Applications - Lexology

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This week’s home entertainment: from We Are Who We Are to Belushi – The Guardian

Posted: at 12:56 pm

Television

Call Me by Your Name director Luca Guadagnino is the mastermind behind this poetic, eight-part, coming-of-age drama set on a US military base in Italy. It follows 14-year-olds Fraser Wilson (It star Jack Dylan Grazer) and Caitlin Harper Poythress (Jordan Kristine Seamn) as they explore friendship, first love and the anguish of being teenagers.Tuesday 24 November, 10.45pm, BBC One

Anime streaming service Crunchyroll launches this latest foray into the Japanese artform: an Aztec-themed series created by the Mexican-American animator Sofa Alexander. Set in Mesoamerica, it tracks the journey of a boy called Izel, tasked by the Gods with saving humanity.Saturday 21 November, Crunchyroll

Arriving with perfect timing, series 11 of what has now been fully cemented as a national institution has been marked by its spectacular flops, from nightmare-inducing 3D cake busts to disastrous Sussex pond puddings. You sense the winner will be whoever can panic the least in the increasingly overheated tent.Tuesday 24 November, 8pm, Channel 4

High-school drug dealer Jared (newcomer Joel Oulette) is the focus of this new Canadian sci-fi drama based on Eden Robinsons novel. When a strange man from Jareds past arrives in town, he starts seeing visions that lead him to uncover some dark family secrets.Monday 23 November, 9pm, Syfy

Based on Robyn Carrs novels, romantic drama Virgin River returns for a second season. After fleeing the titular town at the end of last season, Alexandra Breckenridges Mel returns to confront her feelings for Jack, whose friend-with-benefits Charmaine is pregnant with his child.Friday 27 November, Netflix

The star of classics such as Animal House and The Blues Brothers, by 30 John Belushi was a comedy great. But three years later, a drug-related accident in LAs Chateau Marmont ended his life. Here, Penny Marshall, Dan Aykroyd and Chevy Chase recount his turbulent life.Friday 27 November, 9pm, Sky Documentaries

This compelling tale focuses on Elon Musks disrupted plans to colonise Mars. After Musk and his company, SpaceX, arrived in Boca Chica, Texas to test their rockets, they were confronted by retirees who felt they were being intimidated into leaving their homes.Thursday 26 November, 10pm, Vice

This documentary examines how, in 1971, an unidentified man, known by the alias DB Cooper, hijacked a plane, extorted a $200,000 ransom, and has escaped capture ever since.Monday 23 November, 9pm, BBC Four

Artist Christopher Spencers darkly comic collages have come to epitomise the melancholy mood of Brexit Britain, and in this documentary we follow Spencer as he stages a series of works on displays across the country.Tuesday 24 November, 9pm, Sky Arts

The extraordinary life of the multi-instrumentalist and Afrobeat pioneer is explored in this 90-minute documentary. Kuti who died in 1997 remains one of modern musics most influential figures: a counter-cultural revolutionary who was a target of Nigerias military junta and once married 27 women in one ceremony.Saturday 21 November, 9.30pm, BBC Two

Podcasts can be an immense source of new information, gripping storytelling, or distracting conversation, but in Field Recordings the medium is turned into something else entirely. Comprised of sensuous snippets of audio from various natural locales around the world, this podcast is a meditative hidden gem, perfect for playing when you might need a moments calm.Daily, widely available

Host Nick van der Kolk presents this spin-off from the ever-popular storytelling pod Love + Radio. In The Secrets Hotline, Van der Kolk provides a safe, discursive space for anonymous callers to share their troubles and experiences, sometimes picking up the odd celebrity guest, too. A pensive and affirming listen.All episodes available, Luminary

Following Maxwells arrest by the FBI this summer on charges of the sexual abuse of minors, investigative journalist John Sweeney explores the life of Jeffrey Epsteins alleged co-conspirator for a sobering six-part pod, fleshing out the circumstances that may have led the socialite into a demi-monde of money, power and horrific crimes.Weekly, widely available

Recently nominated for gongs in the Australian podcast awards, Guardian Australias flagship news podcast is fast becoming the go-to source for important news that might not always make the headlines on this side of the equator. Recent episodes have included Helen Garners diaries and the Covid-19 vaccine.Weekdays, the Guardian

Earlier this year, the journalist Gary Suarez created Cabbages, a weekly newsletter highlighting underground rap talent. He has now launched an offshoot podcast, co-hosted by Jeffrey Laughlin, in which rappers mix with film and food critics to chat about topics including Adam Sandlers latest film, Hubie Halloween.Weekly, widely available

(Alan Ball) 95 mins A fine performance by Paul Bettany is at the heart of this 70s-set South Carolina drama. As with Balls Six Feet Under, a death revives suppressed trauma when Bettanys Frank, a gay academic in New York, drives home for his bigoted fathers funeral, joined by his partner Wally (an effervescent Peter Macdissi) and niece Beth (Sophia Lillis from It).Amazon Prime Video, out Wednesday 25 November

(Yeon Sang-ho) 116 minsSet four years after his 2016 loco zombie thriller Train to Busan, Yeons sequel is an ebullient mashup of Escape from New York and Mad Max, as Gang Dong-wons ex-soldier returns to undead-infested South Korea to find a van full of cash. The bravura car chases all but make up for the loss of the originals tension.Digital platforms, out Monday 23 November

(Alexander Nanau) 109 minsMethodical but shocking doc following a Romanian newspapers investigation into the excessive number of deaths of burns victims after a club fire, which develops into an expos of vast corruption in the countrys healthcare system. Cameras also track a new health minister struggling to deal with the crisis.Digital platforms, out Monday 23 November

(15) (David Darg & Price James) 91 minsSelf-indulgent but entertainingly candid, this fly-in-the-ring doc follows the Scream actor as he returns to pro wrestling 20 years after being gifted a world title. The industry hates him but hes determined to do it right this time.Digital platforms, out Monday 23 November

(No cert) (Ron Howard) 116 minsAmy Adams gives it her all in this misery memoir taken from JD Vances tale of his working-class Ohio childhood, dominated by an unreliable, drug-addicted mother (Adams) and hard-nosed Mamaw (Glenn Close).Netflix, out Tuesday 24 November

Careworn Lynn (newcomer Roxanne Scrimshaw) and wild Lucy (Nichola Burley) are twentysomething wives and mothers, and lifelong best mates, but deep-rooted fears and a shocking incident test their friendship to breaking point. Writer-director Fyzal Boulifas debut is a wrenching tragedy, with electrifying central performances.Saturday 21 November, 10.55pm, BBC Two

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Common Types of Cryptocurrency that You Should Know – Blockchain News

Posted: at 12:55 pm

Cryptocurrency is steadily winning grounds. You can use cryptocurrency as an investment or a means of payment. Its a digital alternative to cash or credit cards to make everyday payments. In the past, the crypto business sounded scary. But many are now gaining trust and investing in the different types of cryptocurrencies available.

What is blockchain cryptocurrency?

Blockchain cryptocurrency is a digital asset that works as a medium of exchange. Its different from the common traditional currencies in that it works on digital channels with strong encryption to secure all online financial transactions. The encryption layers also control the creation of additional units and also verify the transfer of assets. There are various types of blockchain cryptocurrencies such as:

1. Bitcoin

Bitcoin is one of the commonly used currencies. Its perceived to be an original cryptocurrency and was created in 2009. Bitcoin uses blockchain technology and enables users to make peer-to-peer transactions. The transactions are secured through an algorithm within the blockchain. You can view the transactions, but only the bitcoin owner can decrypt it using a private key.

Bitcoins are different from bank transactions in that theres no central regulatory authority. The users manage and control the transactions, which allows for anonymous exchanges. You can use Bitcoin to pay bills using Bitcoin debit cards. You can also use Bitcoins in Bitcoin licensed casinos to pay for poker and slot games.

2. Litecoin

Litecoin is a Bitcoin alternative, which was launched in 2011. Like other cryptocurrencies, its an open-source and a global payment network. Is there a difference between Litecoin and bitcoin? Yes, some are listed below;Litecoin offers faster transaction times than bitcoinThe coin limit for Litecoin is 84 million, while the limit for Bitcoin is 21 million.Both use different algorithms; Litecoin is a scrypt, while Bitcoin is SHA-256.

3. Bitcoin Cash

Bitcoin cash is a type of digital currency. It was designed to enhance some of the Bitcoin features and came with many gains. The cryptocurrency was launched in 2017 and enhanced the block sizes, enabling more and faster transactions. The launch of Bitcoin Cash was supported by some key Bitcoin investors, such as Roger ver, who was for the idea that Bitcoins block size limit inhibits its ability to scale or accrue value.

4. Stellar Lumen

Stellar Lumen operates as an intermediary currency and facilitates currency exchange. Its borderless and allows for exchanges between different currencies from one owner to another. With Stellar, you can create, send, and trade in different digital forms of money, pesos, dollars, Bitcoin, and many more. It allows the worlds financial systems to operate on a single network.

5. Ethereum

Ethereum is an open-source platform and a type of blockchain technology lanced in 2015. Ethereum is accessible worldwide, and you can use it to write codes that control digital values and run as programmed.

It helps in the tracking of ownership of digital currency transactions. It also runs the programming code on decentralized applications allowing application developers to use the Ethereum network for paying the transaction fees and services.

Conclusion

Cryptocurrencies are now used as a payment mode, and you can use them to pay bills in places that allow such transitions. To trade in cryptocurrency, choose an exchange wisely. Besides, cryptocurrencies arent regulated by a centralized body.

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After BitMEX, will CFTC target more cryptocurrency exchanges and DeFi? – Forkast News

Posted: at 12:55 pm

With the exception of BitMEX and Arthur Hayes, the U.S. Commodity Futures Trading Commission doesnt seem to have any other cryptocurrency exchanges, blockchain company executives or DeFi projects on its enforcement radar at least not in the immediate future.

Last month, the CFTC charged cryptocurrency exchange BitMEX and several senior company executives including CEO and co-founder Hayes with operating an unregistered trading platform and violating the know-your-customer and anti-money laundering (KYC/AML) requirements under the Bank Secrecy Act. Despite the criminal charges, Hayes a Hong Kong resident has remained out of reach of U.S. authorities because of a suspended extradition treaty.

CFTC chairman Heath Tarbert said during a recent CoinDesk event that the agency might be looking at other noncompliant cryptocurrency exchanges and DeFi projects.

When asked if CFTC is investigating other platforms as well, Tarbert reportedly replied: Ill say maybe.

But in reality, the CFTC doesnt seem like it is looking into any more cryptocurrency exchanges in an official manner at this time.

Freedom of Information Act requests sent by Forkast.News to the CFTC since April reveal that the agency investigated Arthur Hayes and BitMEXs parent company HDR Global Trading. But the CFTC would not disclose more details or subpoenas under the enforcement-themed exemption 7a because an active investigation was underway. A second FOIA request made by Forkast.News last month for information on the top cryptocurrency exchanges and a number DeFi projects has come back from the CFTC with a no documents response.

The difference between FOIA exemption 7a [which is used to withhold documents due to law enforcement proceedings] and no responsive documents reply is the difference between meat and vegetables, attorney David Reischer, CEO of LegalAdvice.com, told Forkast.News. The 7a exemption requires a two-step analysis on whether a law enforcement proceeding is pending or prospective, and the release of information about it could reasonably be expected to cause some actual harm. The no responsive documents reply means that the agency searched and found no relevant records.

Braden Perry, a former CFTC enforcement attorney and now a law partner at Kennyhertz Perry, believes that the commission would go after the low hanging fruit of Bank Secrecy Act violations for not having adequate know-your-customer and anti money laundering provisions, which is what allegedly did Hayes and BitMEX in, but would stop short of broad regulatory action because a hasty attempt to reign in every potential for wrongdoing would likely fail and cause more damage than good to the DeFi environment.

The CFTCs increasingly expanded view of their jurisdiction will likely be challenged, especially against offshore exchanges and participants that have limited ties to the United States, Perry told Forkast.News. This is dangerous territory for the CFTC.

Perry points to the possibility that a campaign against DeFi platforms would be regulation by enforcement, as opposed to a defined regulatory framework, transparent and clear to all participants.

The last thing any industry wants is what the CFTC appears to be doing: regulation by enforcement, in which agencies decide that some practices should have been illegal, and instead of declaring it illegal from now on through rulemaking, go back and prosecute the people who were doing it before, Perry added But that regulatory framework cannot catch innovation and many times frustrate those willing to adopt new technology.

As Forkast.News has previously reported, there is a regulatory framework for cryptocurrency exchanges and DeFi that is making its way through Congress.

The Digital Commodity Exchange Act (DCEA) would seek to regulate the trading venues which list emerging digital commodities, such as Bitcoin, Ether, their forks, and other similar digital assets, for trading, to an official public summary of the bill. The end result of the bill would be the creation of a digital commodity exchange, or DCE, to replace the existing regulatory setup of exchanges being regulated as money service providers. The DCEA also delineates legislative responsibilities for token creation and sales, which would categorize the token itself as a commodity under the purview of the CFTC.

While Perry says the proposed bill is a start and hits some existing pain points such as custody of funds and market data, theres not enough clarity in the bill to bring exchanges and projects to the U.S. from their offshore domiciles.

If the CFTC really wants to reign in offshore market participants, they need to understand their lack of action is pushing these companies offshore, Perry said. Without a transparent structure, the DeFis are stuck watching their back as opposed to looking to the future.

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Cryptocurrency’s future: What compliance needs to know | Article – Compliance Week

Posted: at 12:55 pm

Warren Buffett, meanwhile, has said cryptocurrencies will come to a bad end.

The International Compliance Association (ICA) is a professional membership and awarding body. ICA is the leading global provider of professional, certificated qualifications in anti-money laundering; governance, risk, and compliance; and financial crime prevention. ICA members are recognized globally for their commitment to best compliance practice and an enhanced professional reputation. To find out more, visit the ICA website.

When such esteemed (and profitable) investors have contrasting views about cryptocurrency, it is hard for the rest of us to say if its influence is positive or negative. However, one thing is certain: It is here to stay.

Cryptocurrency is no longer the plaything of criminals or confined to dark corners of the Web. These views are outdated excuses to avoid confronting it. While no one can claim to be an expert, its still an area we must try to understand. We shouldnt judge ourselves too harshly, as it is a complicated topic, but by accepting it and trying to come to grips with what it isand how it workswe will be better placed to avoid regulatory censure and benefit from it.

This article will illustrate some of the challenges, even mysteries, of cryptocurrency and highlight the importance of everyone in compliance staying on top of it all. Well look at what regulators are trying to do, and we will also give you a tip on where to go to study this complex topic further.

As the saying goes, you cant run before you can walk, so in this situation you need to understand the technology before comprehending how it is used. Cryptocurrency, blockchain, distributed ledger technology (DLT)these are all terms becoming more common as they gain higher levels of adoption. It can be great for compliance (for example, DLT can be used to bring more transparency to business transactions and speed up global commerce), but it also has the potential to be an asset for criminals (the anonymity provided through blockchain can create a haven for bad actors to operate within).

The fast-evolving blockchain and distributed ledger technologies have the potential to radically change the financial landscape. But, their speed, global reach and above all - anonymity - also attract those who want to escape authorities scrutiny.

Source: Financial Action Task Force

What about for the regulator? This is not as clear cut, as they sit in the middle. Too much regulation stifles growth and adoption at a time when the world is crying out for developments and improvements to how business is done, but too slack an approach allows criminals to run riot and exploit holes in regulation.

The problem for compliance professionals, then, is how to treat this burgeoning technology when we begin to encounter it? Its really complicated, but thats OKwere all discovering and trying to understand it together. As with all risks, there are threats and there are opportunities. Clearly, we must follow regulatory guidance, but what happens when that evolves or is updated? Equally, what happens when new technology emerges so quickly that regulation cant keep up? There are so many new products and novel ways of moving value globally that criminals are poised to exploit that regulators have a mighty challenge on their hands to stay abreast. So, lets take a breath and see how regulators and authorities are attempting to do exactly that.

Bitcoin exploded onto the scene in 2009, immediately catching the attention of the Financial Action Task Force (FATF). The most recent additional guidance was added to their recommendations in 2019. As part of that addition, a 12-month review was planned for June 2020, and a survey of its membership and its broader global network was carried out in March 2020. Thirty-eight FATF members (37 jurisdictions and 1 regional organization) and 16 FATF-style regional body member jurisdictions responded.

Quite often when a new regulation is issued, or guidance is given on a specific topic, there is the temptation to feel its contents are sufficient to cover the need and the issue resolved. However, it is rarely that simple. Regulations are complicated, and the guidance that follows can take multiple iterations to get right. This is especially true in such fast-paced areas as new technology, virtual assets, and cryptocurrency.

While the recommendations are being implemented, there is still a long way to go to total adoption and full regulation. The FATF is aiming to bring consistency through its virtual asset service provider frameworks, its recommendations, and its review.

In addition to the recommendations from the FATF, other jurisdictions are coming to terms with how to regulate cryptocurrency. The European Union has found it is hard to set clear and strict rules given the opaque nature of the Internet (anonymity provided by IP addresses, data being moved quickly, locations disguised via a virtual network, etc.). It is proving near impossible to apply sanctions in the world of cyber in the same way as against arms dealers or nuclear proliferation activities.

Nevertheless, the European Union in November 2020 imposed its first cyber-sanctions regime targeting Russian, North Korean, and Chinese actors deemed responsible for cyber-attacks against EU member states. Similarly, the United States has also pursued sanctions and indictments against Russian, North Korean, and Chinese actors. However, attributing blame and guilt in the cyber-sphere often lacks what would otherwise be deemed essential evidence, either because governments dont have access to incontrovertible proof or because they are unwilling to provide it.

Further, given IP addresses can be altered or hidden, the location of a perpetrators address constitutes neither adequate nor necessarily correct evidence of their true location. The easily blurred and untraceable nature of cyber-space will therefore make identifying the complete networks of individuals difficult. Cyber-sanctions may consequently not result in significant asset freezes or have much impact on the financial networks supporting illicit cyber-actors. Thus, its unsurprising that its taking some time for authorities to come to grips with it all.

The United States has yet to formulate a consistent legal approach to cryptocurrencies, with laws varying from state to state. Federal authorities even differ in their definition of the term: The Financial Crimes Enforcement Network (FinCEN) doesnt yet consider cryptocurrencies legal tender; in contrast, the Internal Revenue Service (IRS) regards cryptocurrencies as property. Different terms being used for the same thing is just another example of how complicated this area is.

The situation in China is different. Cryptocurrency was initially handled very cautiously there but more recently has received some backing. In 2017, the Peoples Bank of China banned initial coin offerings and cryptocurrency exchanges and attempted to root out the industry by making token sales illegal. The biggest exchanges thus ceased trading. This all changed in 2019 when a Chinese court ruled Bitcoin was digital property. Since then there has been a shift in cryptocurrency adoption, with Chinese President Xi Jinping calling for an increase in development efforts on blockchain. There is still some caution, but China is certainly a country with development on its mind.

Why is this all important to you? Well, the adoption of virtual assets, blockchain, and cryptocurrency is rapidly increasinga recent report by Chainanalysis found that of the 154 countries analyzed, 92 percent had some sort of cryptocurrency activity. The way we work, bank, and live in years to come could well look very different to now, with some of these technologies being used to underpin our basic activities.

In a work environment, and focusing on compliance, it is going to be vital to not just monitor these changes but to take action to ensure you and your business remain compliant. A company that fails to evolve will lag behind, and the same applies to compliance professionalsif you dont keep yourself up to date, you too will be out of the loop. Educate yourself about the technology; demystify it. If youre able to understand it and know what youre dealing with, this will help you to manage risks and leverage value. Remember that it works both ways. If youre a FinTech, understand how the technology is exposed to risk through its features and usability and find ways to control it.

There is a plethora of information available on virtual assets, crypto, blockchain, and so on, but to stay on top of it all is almost a full-time job. As mentioned at the start, no one is an expert in this area yet, so all we can do is educate ourselves as best we can and then share that knowledge.

Cryptocurrency is confusingthere is little point in pretending otherwise. But through education and sharing knowledge, we are all better able to understand it and adapt to its adoption and continued use. Its here to stay, so we may as well get on board and enjoy the ride.

The International Compliance Association is a sister company to Compliance Week. Both organizations are under the umbrella of Wilmington plc.

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LSU student allegedly tampered with 169 university-owned computers, used them to mine cryptocurrency – WBRZ

Posted: at 12:54 pm

BATON ROUGE - Police arrested a college student after he allegedly installed malware on more than one hundred devices across different LSU computer labs over the course of about two years.

Campus police arrested Carlos Munoz-Salazar, 25, after a campus technology services employee found a USB drive he allegedly left in one of the infected computers.

Arrest records suggest the same device was used to install software on 169 different computers which allowed Munoz-Salazar to control them remotely. After gaining access, he then allegedly installed a program that allowed him to mine cryptocurrency from the university-owned computers.

LSU employees said some computers were infected as far back as June 2018, and the "attacks" continued until the university's ITS department blocked the software on July 23, 2020.

Police said the university was then able to use Munoz-Salazar's misplaced USB device to identify when he logged onto another computer at the school last week. An employee found Munoz-Salazar at the infected computer and took a photo of his student ID.

Munoz-Salazar admitted to authorities he made about $2,500 from mining virtual currency on the university's computers. He was arrested Friday and booked on 169 counts of computer tampering and computer fraud.

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Think Bitcoin Is On The Run? Sushi Cryptocurrency Has Surged Nearly 100% In A Week – Benzinga

Posted: at 12:54 pm

Bitcoin (BTC) being on a bull run may be hounding all the attention but the world's apex cryptocurrency is getting outdone by several decentralized finance, or "DeFi," projects.

What Happened: SushiSwap (SUSHI), one such DeFi cryptocurrency,has surged 96.24% in a 7-day period up to press time beating Bitcoin, which is up 12.86%.

DeFi has seen rising popularity in the cryptocurrency community, with some dubbing it as a fad. A lot of DeFi projects may be in a bubble, but that doesn't mean that "DeFi will eventually disappear entirely,"Binance CEO Changpeng Zhao said this week, as reported by Cointelegraph.

Zhao advocated cryptocurrencies like Bitcoin saying it was the money of freedom for millions of people worldwide.

Why It Matters: SushiSwap, the DeFi protocol supported by SUSHI,has been among the most popular such projects. SUSHI had surged 331% to $11.17 in September before its anonymousfounder cashed out $6 million worth of tokens, tanking the cryptocurrency.

Yearn Finance (YFI), another DeFi cryptocurrency, which offers yield farming, surpassed Bitcoins 7-day gains this week.At press time, YFI is up 13.1% in the 24-hour trailing period and 49.3% over seven days at $24,667.87.

SUSHI traded 16.85% higher at $1.33 at press time, while Bitcoin traded 0.51% higher at $17,756.63.

See Also:Bitcoin Storms Past $18,000

2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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New Restrictions, More QE, Higher Bitcoin Prices – Seeking Alpha

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Introduction

The past few weeks were marked by a tremendous acceleration in bitcoin price, that recently broke the 18,000 level, nearly doubling in value since early December. We previously saw that the massive liquidity injections from major central banks and especially the Federal Reserve has led to a sharp recovery in most of the asset classes since mid-March and a sharp consolidation on the US dollar, with the DXY down 10%. Figure 1 shows the performance of a diversity of assets since the market reached its low on March 20th; Bitcoin is by far the asset that experienced the most drastic recovery, up 380%, followed by the 'FANGs' stocks, up 125% since their bottom.

Hence, investors have been asking themselves the following question: is the move done on bitcoin or should we experience much higher prices in the medium term?

Figure 1

Source: Eikon Reuters

With most of the European nations under national lockdowns, which is also expected to be announced in the US in the near term, investors have been speculating that economies will strongly rely on governments' support in the next few months, which implies a significant increase in central banks' assets. We saw that assets from the top major 5 central banks (Fed, ECB, BoJ, PBoC, and BoE) have grown by over 7 trillion USD this year, which has clearly supported most of the markets and resulted in a sharp recovery in asset prices and fundamentals. Figure 2 shows a very strong relationship between the annual change in CBs assets and the price of Bitcoin; as more restrictions imply more debt financed by central banks (i.e. QE), the cryptocurrency has surged as some investors have been looking at bitcoin as a hedge against currency 'debasement'.

Figure 2

Source: Eikon Reuters, RR calculations

Another interesting development has been the strong divergence between bitcoin and FANGs stocks in recent weeks; figure 3 shows that while the FANG+ index has been oscillating around 5,300 since the start of September, bitcoin has surged from $10,000 to $18,000. We saw that in the past, bitcoin prices were very sensitive to equity moves (especially the mega-cap growth stocks) and were strongly correlated during upside momentum but also during equity drawdowns. Bitcoin went down 60% during the February/March episode and was also down nearly 20% during the early September bear consolidation.

Hence, investors will be curious in the future to see if bitcoin prices can hold if tech stocks start to fall.

Figure 3

Source: Eikon Reuters

Even though US real interest rates seem to have found their low back in August, with the 5Y real IR trading at -1.4% back then (currently at -1.25%), the amount of negative-yielding debt has continued to surge in recent months. After peaking at 17tr USD in August 2019 (when the 2Y10Y US yield curve inverted), the amount of negative yielding debt had fallen dramatically until March 2020 to 8tr USD and then started to skyrocket again. The negative-yielding debt could be seen as a 'real-time gauge' of the economic activity; more debt yielding below 0 percent simply means growing concerns over the economic outlook. Therefore, we could also link the rise in bitcoin to the constant increase in the amount of negative-yielding debt around the world.

Interestingly, gold, which has also shown a strong co-movement with the negative-yielding debt in the past few years, has been following the US real rate in recent weeks and constantly testing new lows, which implies that the precious metal is still very sensitive to US real rates in the current environment.

Figure 4

Source: Eikon Reuters

In the medium to long term, we are strongly bullish on bitcoin as we think it could act as a strong hedge against currency depreciation and inflationary pressures. In figure 5, we look at the equity curve of the top asset in each decade of the past 50 years; we first had gold in the 1970s due to the unexpected sudden rise in inflation coming from the oil shocks, then came the Japanese stocks in the 1980s with Japan's economic miracle, then the US boom in the 1990s led to a titanic performance in US growth stocks, then the double-digit growth in China led to an outperformance of consumer staples in the 2000s, and then the prominent growth of new Internet companies led to a strong performance in Tech stocks in the past decade. If we look at the cumulative returns of each asset in the past 50 years, a person who invested $100 would have accumulated over USD 1.3 million of wealth, averaging 22.2% in annual return for a volatility of 25.3% (Sharpe ratio of 0.88).

We are strongly convinced that cryptos (especially bitcoin) could be the best pick for the next 10 years and that investors should hold some bitcoin in their portfolio as it could eventually act as a good diversifier and generate significant returns from current levels.

Figure 5

Source: Eikon Reuters, RR calculations

In the short run, we could see a small consolidation as bitcoin approaches its ST resistance at 19,500 (December 2017 high) as investors start to take profit on the cryptocurrency. We think that any significant bounce on bitcoin should be considered as a good opportunity to buy the dip.

Disclosure: I am/we are long BTC, GBPUSD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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New Restrictions, More QE, Higher Bitcoin Prices - Seeking Alpha

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Cryptocurrency Mining Market to Observe Strong Growth to Generate Massive Revenue in Coming Years 2020 to 2027 – re:Jerusalem

Posted: at 12:54 pm

Stratagem Market Insights has recently published abusiness research report titled, Global Cryptocurrency Mining Market by Size, Share, Growth, Manufacturers, Type, and Application, Forecast to 2027in its research database with report summary, table of content, research methodologies, and data sources. The investigative report represented in an organized format in charts, graphs, tables, and figures to impart a detailed understanding of the Cryptocurrency Mining market in an easy manner.

The report includes CAGR, market shares, sales, gross margin, value, volume, and other vital market figures that give an exact picture of the growth of the global Cryptocurrency Mining market.We have also focused on SWOT, PESTLE, and Porters Five Forces analyses of the global Cryptocurrency Mining market.

The major market players that are operating in the Cryptocurrency Mining market are AntPool, Ebot, BTC Top, Genesis Mining, BTC.com, F2Pool Hashing 24, ViaBTC, Bitmain Technologies Ltd., and Hashflare..

The Coronavirus (COVID-19) pandemic has affected every aspect of life worldwide. The report considers the impact of COVID-19 on market growth. Furthermore, it covers the present and future impact of the pandemic and offers a post-COVID-19 scenario to provide a deeper understanding of the dynamic changes in trends and market scenarios.

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Competitive Landscape:

Competitor analysis is one of the best sections of the report that compares the progress of leading players based on crucial parameters, including market share, new developments, global reach, local competition, price, and production. The degree of competition among leading global companies has been elaborated by examining various leading key players operating across the global regions An expert team of research analysts sheds light on various attributes such as global market competition, market share, latest industry developments, innovative product launches, partnerships, mergers or acquisitions by leading companies in the Cryptocurrency Mining Market.

Geographically Regions Analysis:

The report provides an extensive analysis of the key geographical regions of the industry. The regional analysis covers North America, Latin America, Europe, Asia-Pacific, and Middle East & Africa. The report offers insightful information like production and consumption ratio, demand and supply, import and export ratio, and demand trends in each region. The report also covers a country-wise analysis of the segments and sub-segments of the market. Europe and North America regions are anticipated to show an upward and downward growth in the years to come. While Cryptocurrency Mining Market in Asia Pacific regions is likely to show remarkable growth during the forecasted period. Cryptocurrency Mining Market in the South, America region is also expected to grow in the near future.

Table of Content (TOC):Chapter 1 Introduction and OverviewChapter 2 Industry Cost Structure and Economic ImpactChapter 3 Rising Trends and New Technologies with Major key playersChapter 4 Global Cryptocurrency Mining Market Analysis, Trends, Growth FactorChapter 5 Cryptocurrency Mining Market Application and Business with Potential AnalysisChapter 6 Global Cryptocurrency Mining Market Segment, Type, ApplicationChapter 7 Global Cryptocurrency Mining Market Analysis (by Application, Type, End-User)Chapter 8 Major Key Vendors Analysis of Cryptocurrency Mining MarketChapter 9 Development Trend of AnalysisChapter 10 Conclusion

Key questions answered in the report:

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Stratagem Market Insights is a management consulting organization providing market intelligence and consulting services worldwide. The firm has been providing quantified B2B research and currently offers services to over 350+ customers worldwide.

Contact Us:Mr. ShahStratagem Market InsightsTel: US +1 415 871 0703 / JAPAN +81-50-5539-1737Email:sales@stratagemmarketinsights.com

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Cryptocurrency Mining Market to Observe Strong Growth to Generate Massive Revenue in Coming Years 2020 to 2027 - re:Jerusalem

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Impact of Outbreak of Coronavirus (Covid-19) on Cryptocurrency and Blockchain Market 2020-2027| Intel Corporation, Microsoft Corporation, NVIDIA…

Posted: at 12:54 pm

The report titled, Cryptocurrency and Blockchain Market boons an in-depth synopsis of the competitive landscape of the market globally, thus helping establishments understand the primary threats and prospects that vendors in the market are dealt with. It also incorporates thorough business profiles of some of the prime vendors in the market. The report includes vast data relating to the recent discovery and technological expansions perceived in the market, wide-ranging with an examination of the impact of these intrusions on the markets future development.

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Top Key Companies Players in this Report are: Intel Corporation, Microsoft Corporation, NVIDIA Corporation, BitFury Group Limited, Alphapoint Corporation, Advanced Micro Devices, Xilinx, BitGo, Ripple, BTL Group Ltd.

The scope of the Cryptocurrency and Blockchain Market report is as follows the report provides information on growth segments and opportunities for investment and Benchmark performance against key competitors. Geographically, the global mobile application market has been segmented into four regions such as North America, Europe, Asia Pacific and the rest of the world.

This report gives an in depth and broad understanding of Cryptocurrency and Blockchain Market. With accurate data covering all key features of the prevailing market, this report offers prevailing data of leading companies. Appreciative of the market state by amenability of accurate historical data regarding each and every sector for the forecast period is mentioned. Driving forces, restraints and opportunities are given to help give an improved picture of this market investment for the forecast period of 2020 to 2027.

Finally, all aspects of the Global Cryptocurrency and Blockchain Market are quantitatively as well qualitatively assessed to study the Global as well as regional market comparatively. This market study presents critical information and factual data about the market providing an overall statistical study of this market on the basis of market drivers, limitations and its future prospects. The report supplies the international economic competition with the assistance of Porters Five Forces Analysis and SWOT Analysis.

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In This Study, The Years Considered to Estimate the Size of Cryptocurrency and Blockchain Market are as Follows:

History Year: 2014-2019

Base Year: 2019

Estimated Year: 2020

Forecast Year 2020 to 2027

Table of Contents:

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Impact of Outbreak of Coronavirus (Covid-19) on Cryptocurrency and Blockchain Market 2020-2027| Intel Corporation, Microsoft Corporation, NVIDIA...

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