5 things to know about bitcoin - ABC News

5 things to know about bitcoin

By TAYLOR DUNN Dec 1, 2017, 9:17 AM ET

Mark Lennihan/AP

Bitcoin has been on a volatile roller coaster this past week. The cryptocurrency hit an all-time high of $11,395 on Nov. 29 before losing over one-fifth of its value, dropping as low as $9,000 at one point on Nov. 30.

Despite the drop, bitcoin is still up over 900 percent year-to-date, meaning the value of one bitcoin is now more than 900 times its purchase amount. So what exactly is bitcoin and how is it being used?

Here are five things to know about bitcoin:

1. Bitcoin is a form of currency. Bitcoin is a type of cryptocurrency, which is a digital currency that uses encryption techniques to control its creation and secure transactions, independent from a central bank. These encryption techniques make it very difficult to create any kind of counterfeit form. According to bitcoin.org, “Bitcoin is pretty much like cash for the Internet.” People can purchase bitcoins or fractions of a bitcoin through online exchanges or from an individual and store them in a virtual wallet. There are hundreds of thousands of retailers that accept bitcoin and millions of dollars worth of bitcoins are exchanged daily throughout the world.

2. The creator is somewhat of a mystery. In 2009, a proof of concept was published in a cryptography mailing list under the pseudonym Satoshi Nakamoto. In this paper bitcoin was called “a peer-to-peer electronic cash system.” The first 50 bitcoins were mined, the process by which bitcoins are created, on Jan. 3, 2009 -- considered to be Bitcoin’s birthday -- by Nakamoto, who is said to have left the project in 2010. The community grew and other developers took over. But ever since the inception of bitcoin, there has been an ongoing debate over the identity of Nakamoto. No one has been able to identify who or what Nakamoto is, but some have tried. The price of bitcoin, the most widely used virtual currency, rose above US$ 10,000 on Wednesday for the first time, breakinmore

In 2014, Newsweek claimed that a California man named Dorian Satoshi Nakamoto was the creator, but he firmly denied it, claiming he hadn’t even heard of bitcoin. There was then speculation around Nakamoto’s neighbor Hal Finney, a computer scientist who was the first recipient of a bitcoin transaction. Finney described his initial involvement via a forum post on bitcointalk.org, saying, “Satoshi’s true identity has become a mystery.” In the post Finney reveals that he was diagnosed with ALS in 2009 and that at the time of his post in 2013 he was “essentially paralyzed.”

Others believe the creators could be the men behind bitcoin’s precursors, Nick Szabo and Wei Dai, who created Bit Gold and B-Money, respectively. In 2016, an Australian man named Craig Wright claimed to be Nakamoto, but could not provide proof. And then a week ago, a former SpaceX intern blogged “Elon Musk probably invented bitcoin,” but Musk flatly denied it.

Still, whomever or whatever Nakamoto is, they are believed to own about 1 million bitcoins, which would be worth around $10 billion.

3. There is a finite amount. There are only 21 million bitcoins that can ever be created and because of this fixed supply, if the demand goes up, so will the price. Not all of the 21 million have been mined yet, but once they are, that's it. However, each bitcoin can be divided up to eight decimal places and, according to bitcoin.org, “potentially even smaller units if that is ever required in the future.” Additionally, bitcoin transactions can be done in smaller units called “bits” and there are 1 million bits in one bitcoin. Currently, the total value of all existing bitcoins is more than $20 billion.

4. Bitcoin has some high-profile critics and investors. Billionaire Warren Buffett has been an outspoken critic of bitcoin. He dismissed the cryptocurrency in a 2014 CNBC interview when he urged people to “stay away from it.” He went on to say, “It’s a mirage basically.” JPMorgan Chase CEO Jamie Dimon is also a critic, who once called bitcoin “a fraud.”

But despite the naysayers, there are still many supporters. Some notable investors include Tyler and Cameron Winklevoss and billionaire venture capitalist Tim Draper. Even Richard Branson has spoken positively about the cryptocurrency. He recently invested in a blockchain bitcoin wallet start-up, which is basically a piece of software to store and use the cryptocurrency.

5. Bitcoin futures will be trading on three exchanges. On Dec. 1 the U.S. Commodity Futures Trading Commission announced that it will allow bitcoin futures trading on three exchanges: the Chicago Mercantile Exchange Inc. (CME), the CBOE Futures Exchange (CFE) and the Cantor Exchange (Cantor). This means investors will be able to bet on bitcoin without actually buying the cryptocurrency.

“Bitcoin, a virtual currency, is a commodity unlike any the commission has dealt with in the past,” CFTC Chairman J. Christopher Giancarlo said in a statement.

The CFTC, however, reminded investors to "be aware of the potentially high level of volatility and risk in trading these contracts.”

“Market participants should take note that the relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority," Giancarlo said. "We expect that the futures exchanges, through information sharing agreements, will be monitoring the trading activity."

Russia set to ban US news organisations from covering parliament in blow for press freedoms - Independent

1/12/2107

Russia set to ban US news organisations from covering parliament in blow for press freedoms

Duma to hear proposed prohibition on American journalists in response to US forcing RT to register as foreign agent. There is no serious doubt the measure will be passed

Oliver Carroll Moscow @olliecarroll

Speaking on Wednesday evening, Russian presidential spokesman Dmitry Peskov left reporters in little doubt. The “unfriendly” decision by the US Senate to strip the RT news network of its congressional credentials would be met with a strong “mirror” response.

It soon became clear that Russia's interpretation of America in the looking glass would be anything but a simple reflection.

On Thursday morning, Olga Savastyanova, Chair of the State Duma Organisation and Regulation Committee, announced she was “examining” a proposal to ban all American journalists from the lower parliament. In addition, she would encourage regional assemblies to adopt similar practices.

Russia restricts foreign media freedoms after US forces RT to register

Given previous history and the direction of official comments, the passage of the measure is not in serious doubt. Ms Savastyanova said her Organisation and Regulation committee would look the proposal on Monday, and that it will be “debated” in parliament on Wednesday. The Tass state news agency quoted a source suggesting that the ban would be in place as early as next week.

Ms Savastyanova made clear the measure is a direct response to the 29 November decision to deny congressional credentials to Kremlin-funded RT. That censure followed another US decision to force RT to register as a foreign agent under federal lobbying laws.

Russia retaliated against that restriction by introducing a broadly worded amendment to its own media law on 15 November.

That amendment will force a wide range of foreign-funded media to register as “foreign agents.” At the very least, it is likely to place significant reporting burdens on Voice of America, Radio Liberty/Radio Free Europe, Current Time, and even CNN.

At the time, Human Rights Watch described the Russian legislation as “shockingly broad, disproportionate, and a serious infringement on freedom of media.”

Today’s move is mostly symbolic and unlikely to seriously impact reporting from Russia. Former Duma speaker Boris Gryzlov famously described the lower parliament as “no place for discussion” and it has long conceded law-making rights to the presidential administration.

Some reporters might even be relieved at the prospect of avoiding such coverage.

But the media tit-for-tat has serious consequences. Over two decades, the Kremlin has required little excuse to clamp down on media. That pockets of independent journalism still exist is the result of the tenacity of individual journalists and editors. The American moves to restrict RT, a relatively uninfluential platform, are likely to make their task harder.

Trumplomacy: Why Rex Tillerson is in trouble - BBC News

1/12/2017

Trumplomacy: Why Rex Tillerson is in trouble

By Barbara Plett Usher

BBC News

Mr Tillerson and Mr Trump share a complex relationship

The US secretary of state's job security is uncertain. That much is clear following reports that the White House is considering a plan to replace Rex Tillerson with CIA director Mike Pompeo because of tensions between the former and Donald Trump, something that has been rumoured for months.

But the White House says it has no personnel announcements to make. And the State Department says it is business as usual. Meanwhile this drama is further disrupting the already dysfunctional way foreign policy is run in this administration.

So here are my takeaways on where things stand.

Takeaway 1: A complex relationship

It clearly has not been a happy one since the summer, starting with Mr Trump's politicised speech to the Boy Scouts of America, an organisation that Mr Tillerson used to head.

The secretary of state also distanced himself from the president's equivocal response to the white supremacist rally in Charlottesville.

Then there was that extraordinary moment in October when Mr Trump suggested an IQ-test challenge after a report that Mr Tillerson had called him a moron (which the latter denounced but did not deny, although his spokeswoman eventually did).

Trump challenges Rex Tillerson to IQ test

The two have also aired striking policy differences in public: several times Mr Trump has openly undermined Mr Tillerson's positions with his tweets.

Yet the president has quietly accepted his secretary of state's diplomatic strategy on some issues, such as dealing with North Korea tensions, co-operating with Russia for a political settlement of the Syrian civil war, and agreeing to punt the Iran nuclear deal to Congress rather than abandoning it outright.

He also gave Mr Tillerson a shout out during his recent trip to Asia, where the two men shared plenty of quality time. But they are chalk and cheese in temperament and the way they work, which matters to a president who operates on instinct and interaction.

And Mr Tillerson has not really learned to play the game of Washington politics - nor does he seem interested in doing so. Which means that if this is a game to try and force him out, it is not clear if he will follow the rules.

Mr Pompeo plays it well and has cultivated a relationship with Mr Trump, making a point of delivering his intelligence briefings in person. His positions are also much more in line with Mr Trump's tough approach to national security.

Takeaway 2: A deeply dysfunctional house

I am struck by the parallel universes inhabited by the secretary and his critics at the state department. According to Mr Tillerson, it is functioning well - figures show about the same number of Foreign Service Officers now as this time last year.

It is not being hollowed out, Mr Tillerson says: such reports offend him on behalf of the hardworking career diplomats who have stepped into acting roles during an excruciatingly slow process of appointing political nominees.

As for his controversial redesign of the department, he says changes to its organisation and technology are badly needed. No one disputes that the state department needs to be dragged into the 21st Century.

Mike Pompeo: America's spymaster

Rex Tillerson - the wild card diplomat

Tillerson's quiet diplomacy

And at least one anecdotal report from someone who is engaged with the "employee-led" process sounded upbeat about the prospects for organisational reform. But we don't hear much from these employees leading the process, we do not hear much of anything at all.

More importantly to veteran diplomats, Mr Tillerson has not spelled out what strategy and priorities lie behind his drawing board: the department will be smaller and more efficient, but what will it be for?

And even if the numbers are stable, the expertise is draining away. Dozens of senior officials have been removed from their positions or taken early retirement. Hiring and promotion freezes mean they are not currently being replaced. Communication is a serious problem: between Mr Tillerson's staff and the rest of the building, and with the press.

Those of us who travel with the secretary find him personable, straightforward, and seriously engaged with the issues. But there is no importance placed on delivering his message to the wider public.

He travels in a smaller plane, which means a scaled back staff that does not give regular updates about his movements, and turns the trips into logistical nightmares.

Morale at the state department is rock bottom.

Takeaway 3: How can he do his job?

The political intrigue that may unseat Mr Tillerson is separate from the state of the state department, but together they have undercut the effectiveness of US diplomacy.

And all this has contributed to confusion about what America stands for. "The whole administration suffers from not having articulated a clear vision for what American foreign policy is beyond the bumper sticker slogan of America First," Harvard international affairs professor Stephen Walt told me. Nor have they articulated how they will achieve that with a reformed state department.

Mr Tillerson has begun to try and define policy in a more systematic way region by region. His recent speech on Europe was the least "America First" one I have heard from this administration - extolling historic ties and emphasising the importance of and commitment to the transatlantic alliance in the face of a resurgent Russia.

But when he travels to Europe next week, will he be taken seriously? How much weight will governments there give his words if he does not appear to have the president's confidence? And how much longer can he operate this way, even if he is not sacked?

Could a ROBOT bring world peace? AI 'Sam' plans to be the world's first virtual politician when it runs for office in New Zealand in 2020 - Daily Mail

Could a ROBOT bring world peace? AI 'Sam' plans to be the world's first virtual politician when it runs for office in New Zealand in 2020

The AI chatbot says it is 'representing' New Zealand's constituents

It speaks to users through Facebook Messenger and learns from the interactions

Currently, it can only respond to a list of pre-defined questions

But its creator believes that by 2020, it will be advanced enough to run for office

By SHIVALI BEST FOR MAILONLINE

PUBLISHED: 00:50 AEDT, 2 December 2017 | UPDATED: 00:53 AEDT, 2 December 2017

Politicians in New Zealand might want to watch their backs, as they could soon face stiff competition in the form of a virtual bot.

'Sam' is the world's first virtual politician that users can interact with through Facebook Messenger.

The AI chatbot is 'representing' New Zealand's constituents, and claims to consider everyone's position, without bias, when making decisions.

And it may not be long before we see the AI bot in action, as Sam's creator claims that it will be ready to run for office in 2020.

'Sam' is the world's first virtual politician that users can interact with through Facebook Messenger. The AI chatbot is 'representing' New Zealand's constituents, and claims to consider everyone's position, without bias, when making decisions (stock image)

'Sam' is the world's first virtual politician that users can interact with through Facebook Messenger. The AI chatbot is 'representing' New Zealand's constituents, and claims to consider everyone's position, without bias, when making decisions (stock image)

HOW DOES IT WORK?

Sam interacts with users through Facebook Messenger.

These interactions help the bot to learn, alongside a survey on its website.

The bot claims to make decisions without bias, and considers everyone's position on a matter.

It added: 'I make decisions based on both facts and opinions, but I will never knowingly tell a lie, or misrepresent information.'

Over time, the AI will change as it learns more about the issues that people care about the most.

Sam added: 'There is a gap between what New Zealanders want, what politicians promise, and what the policies they propose actually achieve. I aim to close that gap.'

Sam was created by Nick Gerritsen, a self-proclaimed 'impact entrepreneur' from Marlborough, New Zealand.

Speaking to Tech In Asia, Mr Gerritsen said: 'Sam is an enabler and we plan to operate within existing legal boundaries.'

The virtual politician currently interacts with users through Facebook Messenger.

These interactions help the bot to learn, alongside a survey on its website.

On its website, Sam said: 'As a virtual politician, I am not limited by the concerns of time or space.

'You can talk to me anytime, anywhere.'

The bot claims to make decisions without bias, and considers everyone's position on a matter.

It added: 'I make decisions based on both facts and opinions, but I will never knowingly tell a lie, or misrepresent information.'

Over time, the AI will change as it learns more about the issues that people care about the most.

RUSSIA 2018 WORLD CUP: THE TRAVEL RULES FANS SHOULD KNOW BEFORE THEY FLY - Independent

RUSSIA 2018 WORLD CUP: THE TRAVEL RULES FANS SHOULD KNOW BEFORE THEY FLY

The Russia 2018 World Cup will be a fantastic experience, but here's what you need to know before you go / Wikimedia Commons

Western governments warn of a range of hazards awaiting the unwitting football fan

SIMON CALDER TRAVEL CORRESPONDENT

@SimonCalder - 30/11/2017

Russia is a fascinating and friendly country, and the World Cup should prove a welcome window into the biggest nation on the planet. However, they do things differently there, and every fan should arrive with some legal and cultural awareness.

Around 150,000 British people visited Russia last year, and not all of them stayed out of trouble. With many more visitors expected during the football tournament from 14 June to 15 July, The Independent has curated official government advice from the official briefings of Australia, Canada, Ireland, the UK (including specific World Cup advice) and (with American spellings) the US. Here's what you need to know.

Red tape

Russia 2018: a fan's travel survival kit to the World Cup

Your passport should be valid for a minimum period of six months after the expiry date of your visa or your Fan-ID.

On entering Russia, you must sign a migration card, which is produced electronically at passport control. The card is in two identical parts. One part will be retained by the Immigration Officer on arrival. You should keep the other part with your passport as you’ll need this when you leave Russia. Make sure you've signed your passport before you travel. Some British nationals who haven't signed their new passports have been denied entry into Russia.

Register in every host city you visit within 24 hours of arrival. The registration is normally done by your hotel or guest house, but it’s your responsibility to make sure that this has been done.

There are no legal grounds for foreigners (including British nationals) to cross the land border between Russia and Belarus. If you’re planning on entering Russia by road, you’ll need to take an alternative route through a different country. (UK)

Carry your passport with you at all times. Russian police have the authority to stop people and request identity and travel documents at any time. (US)

Anything to declare?

There are no restrictions on bringing laptop computers for personal use into Russia. However, Russian border officials can demand to inspect any electronic device (including installed software) on departure.

If your medicines contain barbiturate, codeine, sibutramine, anabolic steroids, androgens and other sex hormones, analgesic (tramadol), psychostimulants or other restricted substances, you must present a doctor's letter confirming the need for each medication to authorities when you arrive in Russia. A notarised translation into Russian is also required. (Australia)

You can be arrested for attempting to leave the country with antiques, even if they were legally purchased from licensed vendors. Items like artwork, icons, samovars, rugs, military medals and antiques, must have certificates indicating they do not have historical or cultural value. You may obtain certificates from the Russian Ministry of Culture. (US)

The law

Frequently, criminal gangs collude with the local police and operate with near impunity. Foreigners have become victims of harassment, mistreatment, and extortion by law-enforcement and other officials. Police do not need to show probable cause in order to stop, question, or detain individuals.

Do not pick up hitchhikers. You may be assaulted or arrested for unwittingly transporting narcotics. (US)

Traffic police may stop motorists to collect fraudulent cash fines on the spot. (Canada)

Making friends

Never agree to go to a bar or club with someone you have just met on the street. Criminals have drugged some travelers at bars, while others have taken strangers back to their lodgings, where they drugged, robbed, and/or assaulted them. (US)

Staying safe

Keep your passport in a safe place on your person, and not in jacket pockets or in handbags and/or backpacks in case of theft. You should also leave a copy of your passport, visa, and travel and insurance documents with family or friends at home.

Keep your vehicle doors locked and your bags out of sight to prevent opportunistic bag-snatching if you’re stopped at traffic lights. (Ireland)

Avoid carrying large sums of cash. High-profile armed robberies are an almost daily occurrence. The attacks usually take place while the victims are either entering or exiting banks. These attacks occur throughout Moscow, including in the city center and near the US Embassy. Travelers have also had cash stolen from hotel safes. (US)

Preferred targets for criminals include underground walkways, public transportation and transportation hubs, tourist sites, restaurants and markets, hotel rooms and residences (even when occupied and locked). (Canada)

Petty crime, pick-pocketing and mugging (sometimes committed by groups of children) is common, especially around tourist attractions such as Red Square, the Ismailovsky tourist market and the Moscow or St Petersburg Metros.

If you lose your original passport during the World Cup, this will affect your ability to use your match ticket and Fan-ID as your passport details are interlinked. Photographing any military establishment or site of strategic importance (including airports) is banned. You are likely to be detained for questioning or arrested if you are caught. (UK)

Avoiding scams

“Turkey Drop” Scam: An individual “accidentally” drops money on the ground in front of an intended victim, while an accomplice either waits for the money to be picked up, or picks up the money him/herself and offers to split it with the pedestrian. Then the victim is accused of stealing the money. Do not pick up the money. Walk quickly away from the scene.

Airport Scam: A con artist asks you to watch his bag, then extorts money or other valuables to avoid hassle with the police. Never agree to watch a bag that belongs to a stranger. (US)

Exercise extreme caution in crowds and open markets. Criminals use various techniques to distract the victims, including by distracting their victims with requests for help. In such situations, walk away quickly. (UK)

Drink aware

Alcohol won’t be available at stadium during matches. The sale and consumption of alcohol in glass containers will be banned on the evening and day of matches in certain locations in host cities. The sale of alcohol from shops is restricted, typically from 11pm to 8am. (UK)

You can be jailed immediately for driving under the influence of alcohol. (US)

Money matters

It is illegal to pay directly for general transactions with dollars or euros. (UK)

Only change money at banks, hotels and recognised exchange kiosks. You will need to show your passport and visa to change money. It is an offence to change money from street traders. (Ireland)

Health

The European Health Insurance card (EHIC) isn’t valid in Russia, so travel insurance is essential. (UK)

In the summer months, there is a risk of forest fires that could affect the Moscow region. The air quality in areas near active fires may deteriorate due to heavy smoke and affect travellers with respiratory ailments. (Canada)

Do not visit tattoo parlors or piercing services due to the risk of HIV and hepatitis infection. (US)

Tap water is not drinkable throughout the Russian Federation but bottled mineral water is widely available. (Ireland)

Accessibility advice

Getting around in Russia is often difficult for persons with mobility issues. Many sidewalks are narrow and uneven. Crossing streets in large cities can be difficult, since it usually requires the use of a pedestrian underpass which includes stairs, steep ramps, and no elevators. Mobility is usually easier in major cities such as Moscow and St. Petersburg [but the] Metro is generally not accessible to persons with disabilities. Public transportation is not accommodating to people with disabilities. (US)

Gay news

Homosexuality is legal in Russia, but there is still intolerance among some sections of the population. Be careful about public displays of affection.

In June 2013 a law banning the promotion of ‘non-traditional sexual relations’ entered into force, but the definition and scope of prohibited activity is vague. Foreign nationals convicted under this law could face arrest and detention, fines and deportation. (UK)

Violence against the LGBTI community has increased sharply since the law banning propaganda was passed, including entrapment and torture of young gay men by neo-Nazi gangs and the murder of multiple individuals due to their sexual orientation. (US)

Racism

Harassment and assaults are prevalent, particularly against foreigners of Asian and African descent. Some victims have died. (Canada)

Racially-motivated assaults occur throughout Russia. Attacks are often perpetrated by skinhead groups or ultra-nationalists. There have been several large rallies by nationalists and neo-Nazis to protest against the presence of foreigners (particularly people from Africa, Central Asia and the Caucasus region) in Russia. Take extra care if you or your travel partner(s) are of Asian or African descent. (Australia)

Match report

Tickets bought through any unofficial means may not be valid. Tickets in themselves aren’t sufficient to enter a stadium. A Fan-ID will be linked to the each ticket.

In addition to items which would normally be prohibited in the UK, the following restrictions may apply at stadium: large amounts of loose change and lighters may be confiscated and are unlikely to be returned; no bottles or cans are allowed in the ground.

In order to access any of the stadiums during the FIFA World Cup, you’ll need to have a valid match ticket, Fan-ID, and your passport. You should take steps to keep all of these documents safe.

If your Fan-ID is lost or stolen, you can get a duplicate from one of the Fan-ID distribution centres. (UK)