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The U.S. Government Tried To Shut Down Bitcoin

Bitcoin conspiracy theorists have long suspected the U.S. government, among others, would like to shut down bitcoin.

Bitcoin’s first decade has seen its price explode, making early adopters overnight millionaires, and prompting some of the world’s biggest technology companies to create their own versions of bitcoin.

Now, it’s been revealed federal prosecutor-turned bitcoin and cryptocurrency expert Katie Haun was asked to look into “shutting down” bitcoin by her boss at the U.S. attorney’s office in 2012.

“They said ‘we have this perfect assignment for you’–there’s this thing called bitcoin and we need to investigate it,” Haun told CNBC in a wide-ranging interview, adding a colleague asked her to take down bitcoin.

“That was the first time I’d ever heard of bitcoin.”

Over the next few years Haun would go on to sit on the board of U.S. bitcoin and cryptocurrency exchange Coinbase and teach a class on cryptocurrency at Stanford Law School.

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Any serious attempt made by the U.S. Department of Justice to shut down bitcoin inevitably came to naught, with Haun saying, “it would have been akin to saying ‘let’s go prosecute cash.'”

Haun, who is now the first female general partner at U.S. venture capital firm Andreessen Horowitz and co-heads its $350 million cryptocurrency fund, has worked closely with social media giant Facebook in development of its troubled libra cryptocurrency project.

U.S. government opposition to bitcoin and cryptocurrencies has become far more transparent since Donald Trump entered the White House.

Earlier this year, U.S. president Trump sent shockwaves throughout the bitcoin and cryptocurrency industry when he tweeted a vicious attack on Facebook’s bitcoin rival plans, branding it and bitcoin “unregulated crypto assets.”

Others in the U.S. government were quick to tow the line, with U.S. Treasury secretary Steven Mnuchin adding his voice to the assault on bitcoin, Facebook’s planned Libra crypto project, and other cryptocurrencies, warning they pose a “national security” risk to the country.

Elsewhere, Apple chief executive Tim Cook has warned companies against creating their own cryptocurrencies.

“What we heard with libra were the same criticisms [I’d first heard about bitcoin]” Haun said.

“They were just heightened and they got more attention because of the high-profile nature of the project and the fact that Facebook was involved. I think it would be a really dangerous thing, and frankly a dangerous precedent to start shutting down technology before it’s built.”

Facebook’s libra has been under fire over the last week, with internet payments company PayPal, one of the Libra Association’s founding members, suddenly pulling out of the group on Friday.

Mark Zuckerberg, Facebook founder and chief executive, had hoped to work with global regulators to clear libra’s path to launch in June 2020 but appears to have underestimated the level of opposition to the scheme.

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: The U.S. Government Tried To Shut Down Bitcoin

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The Winklevoss Twins Made A Serious Wall Street Bitcoin Warning

The Winklevoss twins of Facebook-founding fame have long been strong advocates for bitcoin and cryptocurrencies, buying up huge amounts of bitcoin and founding the U.S. Gemini crypto exchange.

The bitcoin price, now back above $10,000 per bitcoin after dipping under the psychological mark earlier this month, has climbed around 200% so far this year, emboldening bitcoin bulls who had feared last year’s bear market could drag on through 2019.

Now, the Winklevoss twins have warned Wall Street banks have been “asleep at the wheel” on bitcoin and cryptocurrencies—something that’s helped bitcoin retail investors.

“Unlike the internet, which you couldn’t buy a piece of, you can actually buy a piece of this new internet of money,” Tyler and Cameron Winklevoss told CNN.

“It’s still a retail-driven market, from day one. And a lot of people have done really well. Wall Street has been asleep at the wheel,” the twins warned.

Bitcoin’s epic 2017 bull run, which saw the bitcoin price soar from under $1,000 per bitcoin at the beginning of the year to almost $20,000 in December, was largely thought to be due to Wall Street and institutional investment could be poised to flow into bitcoin and crypto.

When this investment failed to firmly materialise, the bitcoin price crashed to around $3,000 per bitcoin last year, only to rebound in 2019 as a result of technology companies taking an interest in bitcoin and crypto.

“We had to invest because we were afraid of missing out, we couldn’t miss out on this future,” the twins added.

Meanwhile, Tyler and Cameron Winklevoss earlier said they are open to partnering with Facebook chief executive Mark Zuckerberg on the social media giant’s libra cryptocurrency project after it was revealed they have been in talks about joining the Libra Association.

The newly-created, independent governance consortium for Facebook’s planned token currently counts 28 founding members but is expected to swell to around 100 by the time of libra’s launch next year.

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: The Winklevoss Twins Made A Serious Wall Street Bitcoin Warning

Cameron and Tyler Winklevoss talk with Ben Mezrich and Paul Vigna about Cryptocurrency and the Future of Money. Recorded July 9, 2019 at 92nd Street Y. What do bitcoin, ether, zcash, litecoin and other cryptocurrencies tell us about where capitalism is going next? And how did the Winklevoss twins see it coming? Cryptocurrency has emerged in the last decade as a powerful bellwether for what money might look like in the future—and Cameron and Tyler Winklevoss are leading the way in how it’s being used. Join them for a fascinating discussion along with author Ben Mezrich (Bitcoin Billionaires) and the Wall Street Journal’s Paul Vigna about the origins of Gemini, their cryptocurrency exchange and custodian, and the future of money. Subscribe for more videos like this: http://bit.ly/1GpwawV Your support helps us keep our content free for all. Donate now: http://www.92y.org/donatenow?utm_sour… Facebook: http://facebook.com/92ndStreetY Instagram: http://Instagram.com/92ndStreetY Twitter: https://twitter.com/92Y Tumblr: http://92y.tumblr.com/ On Demand: http://www.92yondemand.org

A Stark Prediction For The Future Of Bitcoin, ETH, XRP, And LTC

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Bitcoin, ETH, XRP, and LTC prices, will be on a roller coaster for a long time. Traders and investors will make and lose fortunes in record time, betting on them. In the end, say some analysts, these cryptocurrencies will either die on their own, or be killed by the ‘establishment’ — big governments and big banks around the world that defend sovereign currencies.

Take the case for Bitcoin.

The “people’s currency” holds a great promise: to become the first true global currency, free of the control of central banks that print money and big banks that generate credit.  But to do that, Bitcoin must gain the trust of the “general public.“ This means it must be adopted as a medium of exchange, standard of value, and store of value, replacing national currencies.That isn’t easy, given the many obstacles Bitcoin has to overcome. Like lack of awareness, familiarity, and stability, etc. And that makes some experts bearish about the future of Bitcoin.

Bitcoin Price YTD

Bitcoin Price YTD

Lars Seier Christensen, Chairman of Concordium, the next-generation decentralized world computer, is one of them. “In the longer term, I am bearish on bitcoin as I believe it does not have the necessary characteristics of a longer-term valuable asset and, eventually, that reality will catch up” says Christensen.“But in the short term, price movements will likely be random as Bitcoin is affected by low liquidity and unpredictable bigger trades.”

Unpredictability will make it hard for Bitcoin to gain broad adoption as a medium of exchange. And without broad adoption, Bitcoin will remain a play for speculators and true believers, and eventually die on its own.

But even if Bitcoin overcomes all these obstacles and gains broad adoption by the general public, and was in a position to replace national currencies — ie, become the new currency — what would happen then?

Bears argue that the “establishment” cannot afford to let that happen.

For a couple of reasons, including  the loss of Seigniorage” — simply put, the profit made by the national governments by printing currency. Then there’s the profit made by banks helping circulate that money and create credit.

The establishment will do whatever it takes to defend these profits from Bitcoin and any other cryptocurrency that seeks to replace it.

Recent Congressional hearings on Libra attests to the determination of the establishment to protect the dollar from competing cryptocurrencies. In a rare display of unity, Democrats and Republicans opposed Libra, and had many unkind words for Bitcoin.

“Cryptocurrencies that are ONLY there as a currency substitute, however, have no real long-term future,” says Christensen.“They will be outlawed by governments wanting to control the money supply and taxation, and in any case, cryptocurrencies have no intrinsic long-term value of significance. Hence, Bitcoin will only survive as a fringe activity.”

Not everyone agrees with this gloomy assessment, however. Dave Hodgson, Director and Co-Founder of NEM Ventures, is one of them.

“In my opinion, Bitcoin will never die nor be killed by the establishment, despite some people’s efforts to the contrary,” says Hodgson. “The recent drop we have seen in Bitcoin is within the boundaries of what our analysts were expecting from technical analysis. However, the timescale has been slightly skewed in light of recent announcements, primarily from US government representatives.”

 Corentin Denoeud, CEO and Co-founder of Blockchain Studio, is another .

“The fact that governments around the world are even talking about crypto is a sign of progress for the blockchain industry in general,” says Denoeud. “While countries such as India have called for the outlawing of cryptocurrencies, representatives from Germany’s Central Bank have responded favourably and advanced the view that cryptocurrencies are not a threat to global monetary stability. Even China, who has previously banned ICOs and cryptocurrency trading, has called bitcoin a ‘safe-haven asset’ (via its state-run media agency) and is now reportedly stepping up its own efforts to create its own cryptocurrency, following Facebook’s unveiling of Libra.”

 While it’s still unclear which side is right, one thing is clear: Bitcoin (and ETH, XRP, LTC, etc) true believers who think that cryptocurrency will eventually replace national currencies, need a 101 lesson in Money and Banking.

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I’m Professor and Chair of the Department of Economics at LIU Post in New York. I also teach at Columbia University. I’ve published several articles in professional journals and magazines, including Barron’s, The New York Times, Japan Times, Newsday, Plain Dealer, Edge Singapore, European Management Review, Management International Review, and Journal of Risk and Insurance. I’ve have also published several books, including Collective Entrepreneurship, The Ten Golden Rules, WOM and Buzz Marketing, Business Strategy in a Semiglobal Economy, China’s Challenge: Imitation or Innovation in International Business, and New Emerging Japanese Economy: Opportunity and Strategy for World Business. I’ve traveled extensively throughout the world giving lectures and seminars for private and government organizations, including Beijing Academy of Social Science, Nagoya University, Tokyo Science University, Keimung University, University of Adelaide, Saint Gallen University, Duisburg University, University of Edinburgh, and Athens University of Economics and Business. Interests: Global markets, business, investment strategy, personal success.

Source: A Stark Prediction For The Future Of Bitcoin, ETH, XRP, And LTC

Twitter CEO believes internet will have its native currency, possibly Bitcoin

In an interview with Joe Rogan, Twitter’s CEO, Jack Dorsey answers the question on whether or not he will create his own cryptocurrency. He said that he has no plans for that at the moment, however, he expressed his personal view towards cryptocurrency and the internet. Dorsey believes that the internet will have its native currency one day, although he doesn’t know what that would be………

Source: Twitter CEO believes internet will have its native currency, possibly Bitcoin

5 Reasons Bitcoin Prices are Plunging Aagain – Nathaniel Popper

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San Francisco: The news on Wall Street this week has been bleak: sharp declines, fears of a bear market and high-flying technology stocks that suddenly took a tumble.

Traditional stock investors may be taking a beating, but they should be glad they didn’t put their money in cryptocurrencies. As of Wednesday, the price of a Bitcoin had fallen about 25% in a week and was down more than 75% from its peak in December.

Other digital tokens have fallen even more sharply in value.

The latest declines are occurring almost a year after cryptocurrency markets, fuelled by a rush of new, wealthy investors, went into overdrive. There are several factors behind the collapse in prices, with many of them the flip side of what drew people to cryptocurrencies in the first place.

Relying on unregulated infrastructure and exchanges is risky

Most cryptocurrency trading happens outside the United States on exchanges with little or no regulatory oversight. That allowed investors to pile in with abandon, but the inherent dangers have long been clear.

This year, researchers at the University of Texas published evidence suggesting that one of the largest exchanges, Bitfinex, had helped create a proprietary cryptocurrency, Tether, that was used to artificially pump up the price of bitcoin and other digital tokens.

Bloomberg reported Tuesday that the Justice Department was conducting a criminal investigation of price manipulation using Tether, one of many issues related to Tether that are scaring investors away. Every unit of Tether is supposed to be backed by a dollar in a bank, but managers of Bitfinex and Tether have struggled to show that they even have bank accounts. Many traders have been selling Tether at a loss just so they can take their money out.

The activities of another large exchange, OKEx, have also led traders to question whether they can trust the institutions at the center of the cryptocurrency industry.

OKEx, which began in China, altered some trading rules without advance notice, according to a large hedge fund, Amber AI, which published a post on Medium about the changes. Amber AI said customers appeared to have lost millions of dollars because of the changes. OKEx, without acknowledging the losses, apologized to customers for some of the changes, which it said had been made to cope with chaotic trading.

Regulators are cracking down

Much of the excitement surrounding the cryptocurrency markets last year was stirred up by companies that raised money selling custom cryptocurrencies in so-called initial coin offerings, which let startups raise money without going through regulators.

At the time, lawyers warned that these offerings would probably run afoul of securities rules. The Securities and Exchange Commission recently stepped up punishment of companies that violated securities law with their offerings. In the most chilling case, the commission punished two companies Friday for their initial coin offerings, forcing them to return money to investors while saying the cases would be templates for future actions.

Cryptocurrencies are managed by communities of developers. That can get messy.

The bitcoin network was created with so-called open-source software released to the world in January 2009. For many years, members of the bitcoin community worked together to improve the software. That collegiality has faded. Last year, after a bitter fight, one group released a new version of bitcoin software with slightly different rules that gave rise to a new cryptocurrency, Bitcoin Cash.

The people backing Bitcoin Cash subsequently had their own disagreements. This week, they splintered into two groups. In the software world, it’s known as a fork: Bitcoin Cash was split into two new cryptocurrencies, Bitcoin ABC and Bitcoin SV.

The new forks have not altered the original bitcoin. But they have created chaos in the trading markets, as exchanges struggle to define which coin customers are trading. The battles have also raised questions about one of the fundamental attractions of cryptocurrencies: their apparent scarcity.

The creator of bitcoin said only 21 million bitcoins would ever be created. But how scarce do those 21 million bitcoins seem if there are also 21 million tokens of each new copycat?

As Naeem Aslam, the chief market analyst at the trading firm ThinkMarkets, put it in a note to clients this week: “Forking has become so common that it puts at risk the notion of limited supply altogether.”

Cryptocurrencies were going to solve all kinds of real-world problems. But the real world hasn’t had much use for cryptocurrencies.

Bitcoin was supposed to make it easier to send payments instantly over international borders. Ethereum, the second-largest cryptocurrency network until recently, was going to create a kind of global super computer. Thousands of other tokens were also designed to be used for high-minded purposes. But so far, about the only thing the tokens have been used for is speculative trading.

Developers have complained that bitcoin, Ethereum and most other networks are hobbled by technical problems that make their tokens hard to use in real-world transactions. Those working on the cryptocurrencies have promised solutions, but they have been slow to produce them.

Governments could get into cryptocurrencies, and do a better job of managing them.

One hopeful sign for digital tokens came from Christine Lagarde, the leader of the International Monetary Fund. In a speech last week, she made a case for why countries and central banks might want to issue digital currencies similar to bitcoin. (Some countries are already experimenting with this.)

But Lagarde added a note of caution. While saying cryptocurrencies could improve on current payment networks, she also said governments could manage them more effectively and eliminate the issues of trust that have hobbled them. The remarks could have a chilling effect on existing, nongovernmental tokens.

What Triggered Bitcoin’s Sharp Price Plunge – Charles Bovaird

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Bitcoin prices dropped significantly today, falling below $5,400 and reaching their lowest since late last year. The digital currency declined to as little as $5,390.12, losing more than 10% in the space of 24 hours and hitting a fresh 2018 low, CoinDesk price data reveals. This downward movement took place as the broader cryptocurrency market also suffered notable losses, declining from a total value of $210 billion earlier in the day to almost $180 billion by roughly 15:30 UTC (approximately 10:30 a.m. ET), according to CoinMarketCap…………..

Read more: https://www.forbes.com/sites/cbovaird/2018/11/14/what-triggered-bitcoins-sharp-price-plunge/#1eb908bf1d66

 

 

 

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