Cyberspace Administration of China, the central internet regulator for the People’s Republic of China, has closed down more than12,000 accounts – primarily on the Sina-owned Weibo platform and Baidu Tieba. It has also ordered the deletion of more than 51,000 posts have been deleted and 105 websites were pulled offline.
Agency has stated that they will continue crackdowns on Illegal financial activities linked to crypto (crypto related scams).
ChronoBank, a
rising company aiming to disrupt the recruitment sector, is set to
revolutionize the industry similar to how Uber and Lyft transformed the
ride-for-hire business. With a vision to decentralize and disintermediate
recruitment, ChronoBank plans to create a peer-to-peer marketplace that
connects employers with freelancers, offering a decentralized framework without
the involvement of traditional financial institutions.
The company’s
mission is to bring about a revolution in short-term recruitment across key
professions. By streamlining the employment process, ChronoBank aims to make
fair-paying short-term engagements more attractive than long-term tenures.
Sergei Sergienko, founder and CEO of ChronoBank, believes in a fair system
where individuals can transact in the value they generate, rather than relying
solely on fiat currency issued by central authorities.
At the core of
the ChronoBank concept is a new digital token called the Labour-Hour (LH). This
token will be freely tradable on the open market and serve as the native unit
of currency used by companies to purchase labor from professionals on the
ChronoBank exchange. The company envisions LH becoming an inflation-proof asset
over time, appealing to long-term investors and traders seeking a reliable
store of value.
To facilitate
seamless trading of LH tokens against other national and virtual currencies,
ChronoBank has integrated the Changelly app into its main wallet software.
Changelly, a trusted instant exchange app developed by the MinerGate team,
aggregates rates from external exchanges to offer users the best rate for
exchanging digital currencies without technical complications. This integration
allows users to exchange LH for popular cryptocurrencies such as bitcoin and
provides a convenient and speedy trading experience.
Sergienko
emphasized the importance of offering multiple trading options and ensuring LH
tokens are listed on a wide range of exchanges. The integration of Changelly
into the ChronoBank wallet enables users to buy LH tokens quickly using various
payment options, including bitcoin and MasterCard/Visa credit cards. These
tokens can then be utilized to purchase services on the ChronoBank exchange.
While the
concept of using skilled work time as currency is not entirely new, ChronoBank
enhances the idea by introducing digital tokens that can be converted into
digital or fiat currencies. Additionally, the platform’s delocalization,
decentralization, and app-based ease of use make it well-suited for the current
trends in the digital and global gig economy.
With the
ongoing ChronoBank Initial Coin Offering (ICO) having already raised over $3
million, the company’s progress is worth monitoring closely. As it continues to
reshape the recruitment landscape, ChronoBank’s innovative approach holds great
potential for transforming the way people find work and are rewarded for their
labor.
President Donald Trump’s recent executive order to construct
a wall along the U.S.–Mexico border has sparked concerns regarding the ethical,
practical, and financial aspects of the project. The question of funding the
border wall has been raised, and Trump’s proposed solution of heavily taxing or
prohibiting U.S.–Mexico remittances has garnered attention.
According to the World Bank, Mexican immigrants residing in
the United States send approximately $26 billion annually to their families in
Mexico. The proposed legislation by Trump would have a significant impact on
Mexican families relying on these remittances, and it would also affect the
Mexican economy as the inflow of billions of dollars contributes to domestic
spending.
In anticipation of potential legislation restricting
cross-border money transfers to Mexico, remittances from the U.S. to Mexico
reached a ten-year high after Trump’s election victory in November. Data from
the Mexican central bank reveals that remittances in November increased by
nearly 25% compared to the same period in the previous year.
Will Bitcoin Emerge as the Solution?
If traditional channels such as banks or major money
transfer operators face heavy taxation or severe restrictions on U.S.–Mexico
remittances, bitcoin remittances could present a viable alternative. Bitcoin
enables users to send and receive money globally at a low cost using online or
mobile wallets, bypassing the need for extensive paperwork when sending money
abroad. This could allow both documented and undocumented Mexican immigrants to
continue sending money to their home country without restrictions, if the new
laws come into effect.
Apart from bitcoin, other anonymous digital currencies like
DASH, Monero, or Zcash could be utilized for cross-border money transfers if
Trump proceeds with legislation targeting bitcoin remittances.
Bitcoin Adoption in Mexico
The primary obstacle preventing bitcoin from gaining a
notable share in the $500 billion global remittance market is the challenge of
converting fiat currency into bitcoin and vice versa while minimizing bid/offer
spread costs. In developing countries, illiquid local exchanges can
significantly increase the cost of remittances, making traditional money
transfer solutions more appealing.
exchanges for converting bitcoin into pesos and vice versa. Prominent bitcoin
exchanges in Mexico include Bitso, Volabit, and LocalBitcoins. With a range of
U.S.-based, Mexico-based, and international exchanges available, the costs of
converting bitcoin to and from fiat currency remain reasonably low, making bitcoin
remittances from the U.S. to Mexico a feasible solution if Trump’s proposed
remittance restrictions are enforced. Additionally, bitcoin remittance
companies such as Abra and Cashaa are working towards simplifying the process
of cashing out bitcoins into local fiat currency.
Regarding bitcoin regulation, Mexico has taken a stance
similar to many other countries. In April 2014, Mexico’s National Commission
for the Protection and Defense of Users of Financial Services warned about the
risks associated with using bitcoin, stating that it is not legal tender and
lacks regulation by Mexican authorities. While not illegal, the commission
advises caution due to the digital currency’s volatility and potential monetary
losses.
Following Trump’s election victory, trading volumes on
global peer-to-peer exchange LocalBitcoins and Mexico’s leading bitcoin
exchange, Bitso, experienced a substantial increase as Mexican bitcoin users
sought to safeguard their funds from the weakening peso by moving them into a
more stable currency.
If Trump succeeds in imposing strict remittance restrictions
from the U.S. to Mexico, it could serve as a significant case study
demonstrating the viability of bitcoin remittances as an effective means for
cross-border payments.
Bitcoin Unlimited, a notable fork of the Bitcoin Core software, has
garnered attention in recent months for its proposal to hand control of
Bitcoin’s block size limit to users and miners. While this idea offers
increased flexibility, it also introduces several challenges and potential
risks to the network’s stability and consensus mechanism.
If not all significant Bitcoin implementations adopt Bitcoin
Unlimited’s proposal, the blockchain could split into two incompatible networks
and currencies. In such a scenario, users on the one-megabyte chain would
experience slower block confirmations and face the risk of replay attacks when
attempting to use the “Bitcoin Unlimited chain.” Conversely, Bitcoin
Unlimited users would face uncertainty about the longevity of their chain, as
it could be discarded if the one-megabyte chain surpasses it in length.
Even if all users switch to Bitcoin Unlimited, meaningful convergence
on a single chain is not guaranteed. Users can configure their nodes to remain
out of consensus with the rest of the network, leading to different chains
coexisting. This lack of convergence raises security concerns, as transactions
with fewer confirmations become less secure, increasing the risk of
double-spending attacks.
To achieve a higher degree of convergence, Bitcoin Unlimited users can
set a low Excessive Acceptance Depth (AD) level. However, this compromises the
security of transactions with fewer confirmations and effectively gives a
majority of miners the ability to override block size settings. This undermines
the purpose of Bitcoin Unlimited’s proposal to empower users and miners with
control over block sizes.
Under adversarial conditions, the security assumptions of Bitcoin
Unlimited further degrade. Node signaling can be easily spoofed, leading miners
to fork a chain with less user support than perceived. Malicious miners can
intentionally mine blocks that fall between the block size limits accepted by
other miners, causing chain splits. An adversary with a small percentage of
global hash power could repeatedly cause network turmoil and exploit the
inconsistent acceptance of block sizes.
Bitcoin Unlimited proponents rely on the concept of “Emergent
Consensus,” suggesting that participants in the Bitcoin ecosystem have
sufficient economic incentives to find consensus on a single blockchain, even
if their software does not ensure automatic convergence.
While Bitcoin Unlimited offers greater personal autonomy, it poses
challenges to achieving technical blockchain convergence and introduces
potential risks to network reliability and security.
While there are types of Economy, Economic Systems and Schools of Economic Thought. For starters, I would concentrate on types of Economy in the post, and to be precise economy I find more relevant to understand monetary systems.
1. Monetary Economics: This branch of economics studies theories of money and provides a framework for analysing money.
It also helps define functions of money like a medium of exchange, a store of value, and a unit of account. It examines monetary systems, including the regulation of money and financial institutions.
The monetary economy includes all financial transactions, markets, and systems (e.g., banking, investments, stock markets)
They are often measured by indicators like Money Supply(M0, M1, M2, M3), Interest Rates, Inflation rate, Exchange rates, and Velocity of Money, to name a few. Full list here
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| Monetary Economy |
2. Real Economy: Real Economy focuses on physical and labour-based activities that create value- paid jobs, caring, volunteering, even cooking at home. It doesn’t matter if it includes money or not; it is more about production, purchase, and the flow of goods and services.
To measure the real economy, we use indicators such as GDP, Industrial Production Index, Employment Metrics (Employment/unemployment rate), Household Final Consumption Expenditure, and Proxy Metrics/Variables (Time-use survey, Community Hours). Full List here
 |
| Real Economy |
3. Sustainable Economy: Sustainable Economy concerns the long-term Economic Growth without negatively impacting the climate, biodiversity, and resource availability for future generations. The Famous indicators to measure it are the Carbon Footprint, Genuine Progress Indicator and Red List Index, to name a few. Key Indicators to Measure the Sustainable Economy
Bitcoin, the decentralized
digital currency, has been surrounded by misinformation and misconceptions
since its inception. The unique nature of Bitcoin, coupled with a lack of understanding,
has led to inaccurate claims and biased reporting. It’s time to set the record
straight on some of the major misconceptions surrounding Bitcoin.
Bitcoin is not controlled by a
central authority: One of the most misunderstood aspects of Bitcoin is its
decentralized nature. Bitcoin operates on a peer-to-peer network, with no
central organization or authority controlling it. While there are Bitcoin
organizations like the Bitcoin Foundation, they have no inherent power over
Bitcoin as a whole. Bitcoin is more like a self-sustaining digital commodity,
similar to gold, with a network collectively managing the transactions.
The alleged $0.01 Bitcoin price
drop in June 2011: There is a common myth that the Bitcoin price plummeted to
$0.01 due to a hack. In reality, a hacker manipulated a specific Bitcoin
exchange’s database, creating a fraudulent balance. The actual Bitcoin price
remained stable on other exchanges, and all trades affected by the hack were
rolled back. The incident was a security mishap at a specific exchange, not a
reflection of Bitcoin’s price stability.
Bitcoin’s security and hacking
claims: Bitcoin itself has never been significantly hacked or counterfeited.
The confusion arises when incidents involving Bitcoin services or third-party
platforms are mistakenly attributed to the Bitcoin protocol. Bitcoin’s
cryptographic and game-theoretical foundations have proven to be robust. The
main risks for users are entrusting their bitcoins to insecure third-party
services or falling victim to computer viruses.
Bitcoin as a tool to evade trade
sanctions: Claims of Bitcoin being widely used to bypass trade sanctions,
particularly in Iran, have been exaggerated. While there have been signs of
increasing Bitcoin activity in Iran, it is far from a widespread phenomenon.
Media coverage often extrapolates from isolated incidents to create a narrative
that doesn’t reflect the reality.
Bitcoin’s association with
illegal activities: Bitcoin gained infamy due to its use on the Silk Road, a
black market website. However, claims that Bitcoin is predominantly used for
illegal activities like drug trafficking, assassinations, or child pornography
are overstated. While such activities have occurred on certain platforms, they
represent a tiny fraction of Bitcoin’s overall usage. The Bitcoin community
actively condemns and discourages illicit behavior.
It is crucial to separate the
Bitcoin protocol from incidents involving Bitcoin services or specific
platforms. Inaccurate reporting and biased narratives can create misconceptions
that hinder the understanding and adoption of Bitcoin. As public awareness and
education about Bitcoin continue to improve, it is hoped that accurate
information will prevail, allowing Bitcoin to be evaluated on its merits.
UpTweet, the upstart social media
site, has officially announced its launch after months of development. Similar
to Reddit, UpTweet is a general-purpose online social news and discussion site
where users can submit and read posts categorized by their specific interests.
However, what sets UpTweet apart is its complete integration with Twitter.
To use UpTweet, a Twitter account
is required for posting and commenting. Every post and comment made on UpTweet
is immediately published on the user’s Twitter account as well. This
integration allows conversations on UpTweet to take place simultaneously on
Twitter, bridging the gap between Twitter’s 140-character limit and in-depth
discussions found on forums and lengthy blog posts.
In addition to its integration
with Twitter, UpTweet introduces another significant feature: integration with
Bitcoin. Each time a user’s post is retweeted on Twitter or
“uptweeted” on UpTweet, a small payment is added to the user’s
on-site wallet account. Currently, the payout rate is set at 0.0001 BTC per
uptweet, subject to potential adjustments based on UpTweet’s advertising
revenue.
While integrating Bitcoin with
social media has been attempted before with limited success, recent
developments, such as the Bitcointip bot on Reddit, have shown promise. UpTweet
aims to complement Bitcointip by offering a per-retweet reward system, allowing
users to earn Bitcoin by pleasing the masses rather than relying on large tips
from individual users.
UpTweet’s marketing strategy
differs from most other Bitcoin-related services, which typically revolve
solely around Bitcoin. UpTweet treats Bitcoin integration as a complementary
feature and targets a broad audience. The site covers mainstream subjects such
as entertainment and music, and UpTweet has already run ads in Times Square to
attract users. The goal is to introduce users to Bitcoin indirectly through
UpTweet’s Twitter integration, making Bitcoin more “mainstream.”
Founder Brian Santos shared his
thoughts on UpTweet and the future of Bitcoin and social media in an interview:
Introduction: Brian Santos, the
founder of UpTweet, is a digital artist, software developer, and marketing
analyst based in Florida. He has a background in coding and building social
networks and has been involved in Bitcoin since early 2011. Besides UpTweet,
Santos also owns Bitcoin-related projects and operates the Bitcoin Tees and
memorabilia site bitcoinpride.com.
The Idea behind UpTweet: Santos
conceived the idea for UpTweet about three years ago when he first encountered
Twitter. He recognized the potential of Twitter as a powerful marketing
platform and wanted to create a system that removed its limitations while
maintaining a fully integrated Twitter experience.
Target Audience: UpTweet aims to
cater to everyone, offering a dynamic experience with categories covering
various topics. Ideal users include bloggers and reporters seeking a platform
to share their work with a broader audience. UpTweet’s integration with Bitcoin
provides an additional incentive for users.
Marketing Strategy: As UpTweet is
still in its early stages, marketing efforts are focused on establishing a core
group of users, preferably Bitcoin enthusiasts. The goal is to create a devoted
and intelligent community that helps maintain the site’s quality while earning
Bitcoin rewards.
Bitcoin Introduction: Many new
users may be unfamiliar with Bitcoin. UpTweet’s strategy is to provide an
organic experience with the currency, gradually introducing users to Bitcoin
through the existing community’s support and engagement.
Fraud Prevention: Currently,
UpTweet does not hold any Bitcoins on its server. All payouts are manually
verified by the staff before depositing Bitcoins into users’ online wallets.
Measures are in place to prevent manipulation and ensure only legitimate users
receive payments.
Future of Twitter: Santos
believes Twitter will become the dominant social media
A recent incident on the Bitcointalk forum has highlighted a
security vulnerability in Bitcoin transactions, specifically targeting the
popular Bitcoin gambling site SatoshiDice. The attack involved an attempt to
reverse an unconfirmed transaction, resulting in the attacker’s original loss
being erased.
The attacker’s strategy was relatively straightforward. They
initially placed a 0.25 BTC bet against SatoshiDice with no transaction fees,
which they intentionally lost. Immediately after receiving the notification of
their loss, they sent another 0.25 BTC transaction to themselves, this time
with a transaction fee, aiming to encourage miners to prioritize the second
transaction over the first. However, this initial strategy failed, forcing the
attacker to adopt a new tactic.
To make the second attempt successful, the attacker
deliberately made the transaction “spammy” by splitting the funds
into twenty inputs of 0.01 BTC each. They then tried to overwrite the initial
transaction with a 0.20 BTC transaction to themselves, offering a generous
0.004 BTC fee. This time, the mining pool BTC Guild confirmed the second
transaction over the first, resulting in the attacker’s original loss
disappearing.
It is crucial to note that this incident does not undermine
the overall security of Bitcoin as a whole, except for a limited number of
applications. Bitcoin transactions have two confirmation stages: network
propagation, which takes a few seconds, and block confirmation, which takes
approximately ten minutes. Most Bitcoin-accepting businesses wait for one block
confirmation before finalizing transactions, which protects them from such
attacks.
For vendors selling physical goods and online services,
fraudulent transactions can be easily canceled even hours after the original
payment notification. In the case of consumable digital goods, providers
typically take up to 30 minutes to deliver the goods, allowing time for
confirmation or implementing patches to address the issue. The current practice
of instant confirmations can still be maintained from the customer’s
perspective, providing reassurance that the transaction has successfully
reached the merchant.
Digital download stores offering instant downloads are also
safeguarded against significant monetary loss. Since digital goods have minimal
marginal costs, attempts to force refunds through this technique are comparable
to downloading them through torrent networks. The impact on honest customers
and artists remains negligible.
To address this vulnerability, businesses can implement
simple solutions such as waiting for one block confirmation before processing
irreversible actions. Companies like SatoshiDice have already taken steps to
address the issue by requiring transaction fees for incoming bets. Other
measures include employing software solutions like ZipConf, which broadcasts
the initial transaction quickly to the network, making subsequent conflicting
transactions less likely to gain traction.
By cooperating with miners and Bitcoin developers,
businesses can introduce patches that prioritize older transactions over
conflicting ones, providing an added layer of defense. While this attack
presents a challenge, it is manageable with the community’s concerted effort to
patch vulnerabilities and ensure the security of Bitcoin transactions.
The Journal of Peer Production,
an academic publication focused on exploring the emergence of a peer-to-peer
economic model in society, has issued a call for papers for a special issue on
the topic of “value and currency in peer production.” The journal
aims to investigate the role of digital money in a peer-to-peer society and
invites researchers to submit proposals addressing various related topics.
While the Journal of Peer
Production may not be well-known in the Bitcoin community, a similar group, the
P2P Foundation, has gained some exposure in the Bitcoin space. The P2P
Foundation made headlines when it started paying salaries in Bitcoin to show
support for the currency. Michel Bauwens, one of the founders of the P2P
Foundation, has also discussed the significance of Bitcoin on the Keiser
Report. The P2P Foundation’s purpose is to document, study, and promote
peer-to-peer practices worldwide, building a knowledge commons of such
practices on its wiki.
In contrast, the Journal of Peer
Production focuses on releasing in-depth peer-reviewed articles on specific
topics. It publishes issues annually in July and has covered a range of
subjects, including file sharing, free software, hackerspaces, and the democratization
of biotechnology. The journal’s upcoming issue will focus on free software
epistemics.
Both the P2P Foundation and the
Journal of Peer Production offer valuable insights into radical politics and
economics, which align with the interests of the Bitcoin community. The P2P
ideology can be described as libertarian, although different from the
libertarianism promoted by some Bitcoin writers. While the P2P Foundation
generally supports Bitcoin, Bauwens has raised concerns about its limited
supply, arguing that it perpetuates wealth accumulation. The Journal of Peer
Production has even referred to peer-to-peer society as a “new communist
horizon,” emphasizing its distinction from traditional authoritarian state
communism.
For members of the Bitcoin community
interested in exploring larger societal questions addressed by technologies
like Bitcoin, the Journal of Peer Production and the P2P Foundation are
recommended sources to broaden their ideological perspectives. Researchers with
insights on topics such as local and alternative currencies, financing public
goods in a peer-to-peer world, trust, and anonymity are encouraged to submit
proposal abstracts (maximum 500 words) to the foundation by January 28, 2013.
Overall, the call for papers by
the Journal of Peer Production highlights the increasing recognition of digital
money, like Bitcoin, and its potential impact on peer-to-peer economies. The
exploration of these topics contributes to the ongoing discussion surrounding
the role of currency in a decentralized society.
Bitcoin Central, a prominent
Bitcoin exchange based in France, has made a significant leap forward for
Bitcoin by obtaining a license to perform banking functions. This development
allows Bitcoin Central to offer a range of services similar to traditional
banks. Customers will now have access to an international bank account number
(IBAN), enabling them to receive funds through bank wire transfers.
Additionally, Bitcoin Central will issue debit cards that automatically convert
users’ Bitcoin balances to euros for seamless spending. Notably, the euro
balance in Bitcoin Central accounts will be federally insured up to €100,000 by
the French “Garantie des dépôts,” similar to FDIC insurance in the
United States. These services are not limited to French residents; individuals
worldwide can open a verified Bitcoin Central account by providing proper
identification.
This announcement is a
significant milestone for Bitcoin integration in the coming years. Acquiring
Bitcoin has historically been a challenging aspect of participating in the
Bitcoin economy. However, with a Bitcoin Central account, individuals can now
receive their salaries directly into their account, which will be automatically
converted to Bitcoin. This brings Bitcoin enthusiasts closer to abandoning the
traditional banking system entirely, as they can store their funds in Bitcoin
and use Bitcoin-denominated debit cards for purchases, even when dealing with
businesses that do not accept Bitcoin. As more businesses and individuals adopt
Bitcoin, it paves the way for the gradual mainstream acceptance of the
currency. Businesses may consider accepting Bitcoin directly if they observe
employees converting their salaries to Bitcoin and customers paying with
Bitcoin debit cards.
Another significant implication
of this development is the boost to Bitcoin’s legitimacy. Legal concerns
surrounding Bitcoin have been prevalent in recent months. The closure of the
Global Bitcoin Stock Exchange highlighted the regulatory challenges faced by
Bitcoin exchanges. The European Central Bank’s report on “Virtual Currency
Schemes” further signaled the likelihood of increased regulatory actions
in the future. These legal uncertainties have hindered Bitcoin adoption.
However, Bitcoin Central’s ability to work with the banking system in this
capacity alleviates concerns and demonstrates growing acceptance of Bitcoin by
financial institutions.
Bitcoin Central has also
clarified some misconceptions surrounding their new offering. The initial
announcement led to misunderstandings about Bitcoin Central becoming a bank
itself. However, it was clarified that Bitcoin Central has partnered with
Aqoba, a licensed payment services provider. Through Aqoba, Bitcoin Central can
perform functions equivalent to a payment services provider. Aqoba, in turn, is
partnered with Crédit Mutuel Arkea, an actual bank, where the euro balances of
Bitcoin Central accounts will be held. It’s important to note that only euro
balances are federally insured, while Bitcoin balances are protected through
cold storage and robust security measures.
While some express concerns about
potential legal issues, Bitcoin Central’s team remains optimistic and believes
they have taken necessary legal precautions. They are aware of the potential
challenges they may face, but are willing to address them as they arise.
Bitcoin Central acknowledges that some may be skeptical or prefer to maintain
privacy against government regulation, and they emphasize that their services
are optional. They aim to provide Bitcoin users with expanded choices and won’t
force anyone to use their platform.
Overall, Bitcoin Central’s new
offering brings Bitcoin closer to mainstream adoption by expanding the range of
services available to users. It addresses the longstanding challenge of
acquiring Bitcoin and enhances Bitcoin’s legitimacy by collaborating with the
banking system. With the ability to operate like a bank, Bitcoin Central is
poised to play a significant role in the ongoing evolution of Bitcoin.