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  • Russian BTC-e Suspect Ordered to France, not America

    Russian BTC-e Suspect Ordered to France, not America

    Russian national Alexander Vinnik has been ruled to be sent to France in connections to crimes related to Bitcoin. Vinnik is suspected to be the mastermind behind the BTC-e bitcoin exchange, a high-profile exchange that was preferred by criminals. The court that ruled him to go to France was a lower Greek court in Thessaloniki, which contradicted an earlier ruling. Previously, the Greek Supreme Court had ruled that Vinnik should be sent to America, where an indictment of him is ongoing.

    Russia’s Response

    Russia, a country known for its diplomatic tact, was rather candid when assessing the situation. Regarding Vinnick’s potential extradition, the Russian Foreign Ministry had this to say. According to them, sending Vinnick to France would “continue to complicate [Greece’s] relations with Russia” and that Russia wouldn’t “leave these actions unanswered.” Well, that sounds ominous and threatening.

    Mt Gox, BTC-e and Vinnik

    American prosecutors have connected Vinnik to the criminal bitcoin exchange BTC-e. In their indictment of him, they stated this. “BTC-e was an international money-laundering scheme that, by virtue of its business model, catered to criminals and to cybercriminals in particular.” They elaborated, “Through VINNIK’s efforts, BTC-e emerged as one of the principal means by which cybercriminals around the world laundered the proceeds of their illicit activity. BTC-e facilitated crimes, including computer hacking and ransomware, fraud, identity theft, tax-refund fraud schemes, public corruption, and drug trafficking.”

    Vinnik has also been connected by prosecutors in the theft of bitcoin from the exchange Mt Gox. Mt Gox, a Japan-based bitcoin exchange, was one of the most popular exchanges early in the currency’s history. However, following the theft, the exchange went into a downward spiral and eventually went under. If Vinnik is connected to that case, his involvement would solve a long-standing injustice in the bitcoin community.

    Vinnik’s Fate

    Where Vinnik will ultimately be sent is up to the Greek minister of justice. Vinnik will either be sent to America, France, or back to Russia, depending on what the minister thinks is the best course of action. The country he is sent to will likely have huge repercussions in the ongoing case against him.

    Feature Image Credit: CBS News

  • Which Bitcoin Wallet is the Best for You?

    Which Bitcoin Wallet is the Best for You?

    Once you’ve bought, or mined, your bitcoin, you’ll need somewhere to keep them if you don’t plan on using them on an exchange right away. There are a few different applications, or wallets, that you can store them in. Today, we’re rounding up a few of our favorite “hot” Bitcoin wallets. “Hot,” in this instance, refers to the fact that these are always connected to the Internet, unlike “Cold” wallets that can be offline.  

    Exodus 

    A pleasing-looking multi-currency wallet, Exodus is a great user experience. If you plan on storing large amounts of crytpocurrency, though, it’s not the best, as it’s partly closed-source code. This means that if there are any bugs in the code that could lead to data breaches, the community can’t vet them and fix them. However, if you plan on storing smaller amounts of Bitcoin, or other currencies, this is a fine choice. You can even use the Shapeshift service to exchange your Bitcoin or other crypto right from the wallet.  

    Exodus has you generate a 12-word “seed” that it then encrypts your keys with. This means that if you somehow lose access to the version of Exodus you currently have, you can recover it with your seed. Simply write the seed down someplace safe and your Bitcoin is protected from hard drive wipes.  

    Jaxx 

    Jaxx, much like Exodus, is another multi-currency wallet that has Shapeshift. And, much like Exodus, it’s closed-source, so potential security gaps can’t be spotted by the community. In fact, last year, once such bug reared its head, allowing users with access to your version of Jaxx to steal your currency. That said, it’s a fine app for those who simply want to store small amounts of Bitcoin or other currencies. The ability to convert from different currencies through the app is quite convenient. 

    Closed-source code aside, Exodus and Jaxx are both visually appealing, convenient and user-friendly. If you’re just dabbling in a bit of crypto, Jaxx is a great Bitcoin wallet. 

    Bitcoin Core 

    A very early Bitcoin wallet, and easily the most robust, Bitcoin Core is a “full node.” That means it downloads the entire blockchain that tracks every Bitcoin transaction, which is around 160GB. The reason for this is security. Since Bitcoin Core knows the entire blockchain, it is nearly impossible to fool it, thus ensuring you won’t be defrauded. Someone attempting to spend the same coins twice, or spoof funds would be easily detected and shut down by this wallet.  

    Bitcoin Core is great if you intend on storing a ton of Bitcoin. It’s also great if you like your anonymity, as it encrypts transactions through the Tor network. This is all pretty costly on bandwidth, though, so it’s really for power-users first and foremost. 

    Our Favorite Bitcoin Wallet: Electrum 

    Electrum is a “thin” wallet, which is in contrast to a full-node like Bitcoin Core. Rather than downloading the full blockchain, it uses secure server connections to verify transactions. This means it uses much less internal memory and bandwidth, allowing it to be much leaner. Electrum, like Jaxx and Exodus, also allows for seed-based recovery in case you lose access to it. For general use, Electrum is our favorite overall wallet. It’s relatively secure and is quite useful for its file size and bandwidth use. While not the most robust wallet, it is the best option for most users.  

  • Apple’s Cryptocurrency Ban

    Apple’s Cryptocurrency Ban

    Apple is cracking down on cryptocurrency on its platform,Yes it is time for a BitCoin Panic. The new rules for Apple’s cryptocurrency ban are aimed mainly at limiting the shadier side of cryptocurrency like unregulated ICOs and mining coins on your Apple hardware. The rules apply to both computers and phones, but are more restrictive on phones because of Apple’s secure and down right oppressive mobile ecosystem.

    Apple sights the reason for Apple’s cryptocurrency ban is the excessive tool it takes on the resources of your device. The new guidelines may have been imposed over concerns regarding the longevity of the hardware and the battery. Cryptocurrency mining is a processor intensive activity that puts great demand on the hardware and the power supply. This could affect the life of both. Users casually running these applications after hearing about the cryptocurrency craze may probably have no idea the toll on their devices this mining it taking. Apple more then likely is already had to face devices damaged by mining, this would be a good prompt for  the company to decided to act so strictly on the matter.

    Apple’s cryptocurrency ban, What it Means

    So you are probably asking the big question Why? It’s part of wider restrictions against apps that drain battery, generate excessive heat, or strain a device’s resources. All of which take place during cryptocurrency mining.

    “Apps, including any third-party advertisements displayed within them, may not run unrelated background processes, such as cryptocurrency mining,” states the new policy.

    I do want to clarify that Your favorite crypto wallet app is still in the clear. Even after an update to Apple’s developer guidelines for iOS and macOS. Apple’s ban on cryptocurrency will only affect mining for cryptocurrency. Not apps that allow you to manage, hold or spend cryptocurrency.

     

    The Final Thought

    Mining on your phone or tablet is futile and utterly impossible. Bitcoins value is dropping by the hour. This is a hard hook to the jaw to Bitcoin by Apples’s ban on cryptocurrency. Not that this will have any actual effect on bitcoin other then the perception of Apple bans cryptocurrency.

  • Bitcoin Falling: Less than Half as Valuable as it Was Last Year

    Bitcoin Falling: Less than Half as Valuable as it Was Last Year

    Last year, in December of 2017, Bitcoin hit its all-time high, an astronomical $20,000 per Bitcoin. Following this high-water mark, the cryptocurrency has been steadily losing value. On Sunday it dipped even lower, now being worth only $7,200 per Bitcoin. It is worth noting, however, that the price is far above what it was this time last year. At that time, a single coin cost $2,800. 

    A Sign of a Dying Fad? 

    It seems unlikely that this volatility is suggesting any long-term issues for Bitcoin, or indeed, for cryptocurrency in general. Many find cryptocurrencies to be ideal, as the blockchain technology that powers them is secure and difficult to fool. While most markets have been hesitant to pick up the currency, it’s likely not becoming irrelevant any time soon. Recent fluctuations are only natural. As demand waxes and wanes, mining operations scale up and GPU prices stabilize, changes in price like this are to be expected. 

    Notable opponents of Bitcoin, Warren Buffet and Jamie Dimon have both recently reiterated their reservations about the new form of currency. Regarding Bitcoin, Buffet had this to say: “When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along,”

    Effect on Power Companies 

    Power companies have taken note of the extreme demand of large crypto-mining operations. Mining Bitcoin requires a tremendous use of power to solve the complex algorithms that yield them. Due to this, mining companies prefer to operate in regions like Quebec, where energy is cheap. In response to this increased demand, Hydro-Quebec, the company that supplies power for the province, has cut off power to mining companies.  

    The company has stated it holds no ill-will towards mining companies. In fact, they expressed that they saw crypto-mining as an avenue of growth worthy of consideration. However, in Hydro-Quebec’s own words, they want to exercise caution. “Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l’énergie’s process so that these guidelines can be produced as quickly as possible.” 

    Similarly, a few months ago, power companies in New York raised energy rates for mining companies. It seems their ravenous power consumption has begun to have an effect on the average person in their region.  

  • Gilfoyle’s Bitcoin Alert Noise from Silicon Valley Now Made a Reality

    Gilfoyle’s Bitcoin Alert Noise from Silicon Valley Now Made a Reality

    Spoilers for Silicon Valley Season 5, Episode 3 ahead

    Are you a fan of HBO’s hit comedy show Silicon Valley? Do you mine bitcoin? Did you find Gilfoyle’s use of death metal to alert himself to bitcoin rises and drops hilarious?

    Well, you’re in luck.

    Viska Offers Real Death Metal Bitcoin Alert

    That’s right—now you can get your own obnoxious bitcoin alert just like Gilfoyle’s. Icelandic website design agency Viska has just created a web version of Gilfoyle’s loud and jarring alert.

    According to Viska representative Sindri Guðmundsson, he and others from the Viska team watch Silicon Valleyevery week during each season’s airing. Guðmundsson said the team decided to make the Gilfoyle-inspired alert system “just for fun.”

    Gilfoyle’s bitcoin alert sound bite is a 1.36 second clip from the song “You Suffer” by Napalm Death.

    How Did Viska Make the Alert?

    Guðmundsson described that the Viska team wrote a simple Javascript plugin that follows the price of bitcoin from Coincap.io. Then they built their site off of WordPress—in three hours, no less.

    Now, any user who wants Gilfoyle’s alert system can connect it to their home mining rig, so they can toggle off and on remotely.

    Guðmundsson also said in an email to The Verge—a tech news site—“We actually follow the bitcoin price quite a lot and playing beautiful music each time it passes a certain amount makes the day better.”

    While Guðmundsson may believe “You Suffer” is beautiful music, it’s an equal guess that he was joking since they created the bitcoin alert for a laugh. The joke in Silicon Valleywas most certainly because the alert was loud and sudden, startling everyone in the office each time it went off (which was a lot).

    So, if you want to annoy your office-mates or just make yourself laugh as you follow the rise and fall of bitcoin, you can now be just like Gilfoyle thanks to Viska.