Crypto currencies are an emerging technology designed to replace our current financial system (like money backed by a nation-state). In the modern financial system of credit cards and online shopping, money transactions must be approved by a bank or a credit card to prove that the money exchange has taken place. Cryptocurrencies circumvent this by causing other crypto users to perform complicated calculations called mining to confirm that the transaction was successful. This keeps your shopping habits data away from the hands of banks and marketing companies.
Since the advent of the first cryptocurrency, Bitcoin, this new technology has been viewed by some and the future of all financial institutions as fraud transactions by third parties. Released in 2009, the value of a Bitcoin on December 1
10th Wired Threw Down a Fortune
As the world's leading technology magazine, Wired receives many new products for testing and testing. One of these products was a Bitcoin Miner, a specialized computer that performs complicated calculations to validate other people's Bitcoin transactions. By confirming these transactions, the mining engine can earn bitcoins.
While the machine was connected to the Wired HQ, 13 bitcoins were earned, which would have equaled the coin's maximum value of approximately $ 260,000. Wired discussed the sale of bitcoins or the donation to charity, but the forces that were considered immoral to "harvest" the bitcoins . Wired's senior editor, Michael Calore, said if the machine keeps going, the magazine could be seen as promoting crypto. To preserve their journalistic integrity and independence, they destroyed the keys needed to use the coins and essentially 'burned' them. The coins still exist, but without the keys they can not be paid out.
. 9 Bitcoin Miners Endanger Cryptocurrency Nuclear Power Plant
The faster a crypto-miner solves cryptomathematics, the greater the chance that he will be rewarded with more crypto. A crypto-miner needs faster and more powerful computers to secure its profits. For a time, a lot of crypto-mining was done worldwide on university campuses . There, students with high IT skills used the free stream and high-speed Internet to mine crypto. A student at the Imperial College of London mined 30,000 dogecoins while hacking the university computers while everyone was sleeping. As the CPU power to solve the equations increased, the miners used college supercomputers. The National Science Foundation was forced to ban a researcher for using their expensive supercomputer to generate bitcoins. Students who use such IT resources on campus cost the universities a fortune, and new students are threatened with exclusion if they get caught in the mining. These have the potential to open the door for external parties and enable hacking of university supercomputers and their high-speed Internet connections. At St. Francis Xavier University in Nova Scotia, Canada, Cryptocoin Mining was the cause of an attempted cyberattack that shut down its network for four days .
It is disturbing that not only young students use high-speed government computers. Workers of the Southern Ukrainian nuclear plant risked another Chernobyl disaster and devised a plan to reduce at work. They connected their mining equipment to the plant's internal network and watched the supercomputer operating in the crypto. What they did not realize (or did not care about) was that their mining equipment opened a backdoor to the Internet enabling anyone to hack the nuclear power plant and do what they want.
. 8 You Throw away 7,500 Bitcoins
Instead of physically holding money or a coin, crypto users use a private key – a long text string, sometimes more than 50 characters long. not something that you can easily remember. People either write them down or save them on their computers. Cryptocurrency is known to be decentralized, and as such, there is no help desk, no customer service, and above all, no backup or "god mode" to recover lost crypto data. To do something with cryptocurrency, you need the key for the coin.
Years ago, Syl Turner operated bitcoin mining and made about two bitcoins for his efforts. He forgot all about her and during some computer maintenance work reformatted his drives and deleted the keys for the two coins which made them forever unreachable.
James Howells was also a Crypto Miner in the early days of Bitcoin. He eventually collected 7,500 bitcoins and saved them on a hard drive. In 2013, he accidentally threw the disk with all the keys to his bitcoins. The precious keys, along with all his other trash, landed at a local dump. At the peak of Bitcoin in 2017, his buried Bitcoin treasure would have been worth about $ 150,000,000.
This plot may seem familiar since it was used in the HBO hit show Silicon Valley . In this show, billionaire investor Russ Hanneman has his minions comb the city's garbage dump to look for a stick with Bitcoin worth $ 300 million. In another plot of the same season, the Silicon Valley crew created their own cryptocurrency, Gilfoyles " Pied Piper Coin ".
. 7 Bitcoin Confusion
One of the strange things about Bitcoin (or a bug that depends on your view) is that transactions are public. You can not see who is transferring the coins, but you can see that the actual transactions are taking place. A number of companies specialize in tracking crypto moving through interwebs. One of these companies, Chainalysis identifies wallets that are related to criminal activity. Their blockchain analysis was the key to identifying two FBI agents who had stolen bitcoins from criminals.
It often takes a while for the transfer of bitcoins to be approved by miners. To speed up the verification process, users can offer a bonus fee. An unfortunate user accidentally confused the amount he wanted to transfer and the bonus fee . In April 2016, Bitcoin had a value of approximately $ 580. On April 26 of this year, someone wanted to transfer 291,241 BTC, which was worth about $ 168,920 at the time. To handle the transaction quickly, the user offered a fee of 0.0001 BTC (about 6 cents). The amounts, however, were tilted and falsely transferred to OTC $ 0.0001 BTC for a bonus fee of 291,241 BTC (approximately $ 168,920).
. 6 $ 200 Million for a Pizza
Without the ability to transfer cryptocurrency quickly and easily, the crypto concept in the water has disappeared. The common introduction of the cryptocurrency is the hope of all who own a kind of crypto-coin. Some of Crypto's biggest cheerleaders are his prominent supporters. The Winklevoss twins (Cameron and Tyler of Facebook infamy) have been lobbying behind the scenes to push crypto into the mainstream, and have even developed an exchange system called Gemini . (The twin star sign … understood ?!) Ashton Kutcher, who is known to have donated $ 4 million in crypto-coin XRP (19659003) to Ellen's charity, which hosts a talk show during the day.
These were not the first hype events and in their history crypto, which were no strangers to publicity stunts. In its infancy, it took a lot of technological experience to use bitcoins. On May 22, 2010, Laszlo Hanyecz (19659003) ordered a Pizza for 10,000 Bitcoin (19659003) to further the adjustment and earn the profits from the Internet. This was probably the first real cryptocurrency transaction. At the time, the value of Bitcoin was extremely low, but at its peak, the value of 10,000 Bitcoin pizzas would have been about $ 200,000,000.
. 5 Gox
It is possible to keep your crypto in an electronic "wallet". This can be in the form of a physical USB stick, which you can store in your pocket. Other wallets might be in the form of a file or program on your computer. However, some people prefer to keep their cryptos in exchanges that behave like banks or investing companies for the sake of usability.
One of the first was the mountain. Gox. Launched in July 2010, the company handled more than 70% of Bitcoin transactions worldwide in three years. In 2014, the company closed its doors when it became known that most coins it kept were missing . Years of research have shown that almost instantly vile actors stole Bitcoins worth a total of 600,000, which would have topped Bitcoin's $ 12 billion.
Account holder billing is complicated by the extreme increase in bitcoin value. Mt. Gox closed in 2014 and a small portion of its Bitcoin holdings has been recovered. Since then, however, the value of Bitcoin has risen sharply. This small amount of Bitcoin recovered is now worth much more than the value of the 2014 stolen coins. Mt. Gox account holders were on their way to getting their money back, but now some of them are demanding a bigger piece of cake. One of the key people in recovery, Andy Pag, says, "The higher the Bitcoin price, the more vultures circle around." Personally, I am worried that we will only get stuck in a lawsuit. "If the lawsuits ever end, some people could actually get their money back."
4. Cryptocurrency and the Environment
People around the world are beginning to understand that giant fortune means nothing to the world as we know it In this sense, the environment was one of the biggest losers in the crypto movement, and the energy consumption of modern society and the constant need for more energy are one of the main drivers of climate change worldwide.
The most efficient way Being a successful miner are endless computer racks that run on the cheapest power available – the larger the number of computers, the higher the power consumption, and the amount of energy used by the mining industry is so high that it consumes more energy than that Switzerland increases energy demand and contributes massively to climate change While this can be offset by the use of renewable energy, others believe that the drive should be to convert all of the world's fossil energy production into renewable energy and then focus on generating electricity for the crypto industry.
3 The city that has lost a lot
Early users of new technologies are sometimes big winners, but more often they are big losers. Some of these early adopters are communities looking for new ways to invest their city's money. One of these small towns was in the state of Lone Star.
In Rockdale, Texas, there was a huge coal deposit. In the 1950s, the city boomed when Alcoa built an aluminum smelter that used the cheap energy from mining and burning coal. Globalization shut down the plant and then the mine, as it could not compete with the dirt-cheap aluminum produced in the Third World.
Bitmain, a Chinese crypto-mining company, was considered the city's savior when it announced it was building a huge computer array in the city. This would take the form of huge warehouses of computers that would consume the cheap electricity of the nearby coal-fired power plant. These computers would do nothing but my bitcoins. The city invested a fortune in hoping to get the business to start a business but everything went nowhere when the price of Bitcoin fell, making the project unprofitable. When his fortune was on the rise, Bitmain wanted to go public and sell stocks. Since then they have abandoned this plan and are in survival mode.
. 2 In Death, We Are Exiting
On April 16, 2018, Matthew Mellon of Mellon Bank's assets in Mexico died of a drug-related heart attack. To his grave, he also took the position of the crypto key to a huge amount of ripple coin (XRP), another popular type of cryptocurrency. Before his death he held an estimated billion US dollars to Ripple . Without the keys, none of the XRP coins can be used.
QuadrigaCX is a Canadian cryptocurrency exchange founded by Gerald Cotten. On December 9, 2018, Cotten mysteriously died of Crohn's disease when he opened an orphanage in India. As founder of the company he owned all the passwords to access QuadrigaCX – which were all lost when he died . There are still around $ 250 million missing for Canada (approximately $ 190 million in the US), which accounts for 115,000 customers.
. 1 Stolen Treasure
With the advent of personal computers and the Internet, there were not many people right from the beginning who had the knowledge to exploit the situation criminally. This benefited the rapidly growing user base, which often had no idea how the technology they used was working. Now, criminals and government-sponsored hackers have stepped up their game, and have dwarfed to make use of an Internet full of security latches almost entirely dependent on their being stored and used in electronic devices. Such devices are often considered unsafe by unsuspecting users and are easy prey for hackers and cheaters. In the first half of 2018 $ 1.1 billion was stolen from unsuspecting electronic devices by various fraud attempts and unauthorized access . With the Internet, which allows criminals to operate across borders without or with little police presence, such attacks will only get worse.
Jon Lucas reports on events that took place on World War I that day. You can follow the action on Twitter Tumblr or Instagram