Millennials Will Destroy Bitcoin


Irrational exuberance is alive and well.

A textbook bubble in Bitcoin prices is developing right now.
And it has everything to do with Bitcoin’s investors.
Bitcoin Bubble
I’m probably not going to gain any friends with this perspective. But there are inarguable factors that suggest Bitcoin’s own buyers are irrationally driving up prices. And their
exuberance is setting the market up for a crash.
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Let me clear one thing up about Bitcoin before I explain why I think prices are eventually headed for a crash…
As I argued before, Bitcoin is a legitimate form of money. But for the time being, it’s being treated as a speculative investment.
Money is typically used in exchange. And while Bitcoin can be used in exchange, it’s largely not. Gary Schneider, Professor of Accounting at California State University, says only about 10% of Bitcoin is held by people who use it as currency. The large majority are
speculators hoping to sell at higher prices.
The fact that the market is dominated by speculators is not necessarily the problem for Bitcoin. And here’s where I’m sure to piss some people off… The problem for Bitcoin is its
buyers.
Who are they?
Well, according to a recent survey, approximately 60% of Bitcoin owners are under 35 years old.
Bitcoin User Age
In short, most Bitcoin buyers are millennials. And that’s all we need to know about them to make an inarguable point (told you I wouldn’t be making any friends here).
The fact is this: A 35-year-old speculator intrinsically has much less experience in risk management than a 60-year-old. And remember, most Bitcoin owners are mostly speculators, as opposed to users of the product.
AND remember they’re speculating on a currency, which is among the most volatile of financial instruments.
AND remember they’re speculating on what essentially amounts to a new, experimental currency.
All this considered, Bitcoin looks to me as one of the (if not the) most speculative financial instruments available…
Expect for Bitcoin’s derivatives, of course.
Yes, believe it or not, Bitcoin has a futures market. And there are products that offer even more risk. On its Perpetual Bitcoin/USD Swap Contracts, BitMEX offers up to 100x
leverage!
But to really understand why I think Bitcoin is eventually headed for a crash, let’s consider the most famous market bubble in history…
Dutch Tulip Mania
In the 17th century, formal futures markets developed in the Dutch Republic, providing the infrastructure for a massive bubble in the price of tulip bulbs.
The tulip first became fashionable in France, where early modern ladies of the aristocracy began sporting the flower on their dresses. From there, the tulip became the flower to show off social status and wealth. The demand for bulbs subsequently
skyrocketed, and prices immediately followed.
At the peak of Tulip Mania in 1637, a single tulip bulb could cost as much as 10,000 gilders, the price of a nice middle-class townhouse in Amsterdam. According to one author, 12 acres of land was once offered for one rare bulb. For a flower bulb!
Semper Augustus The Semper Augustus was the most coveted of all Dutch tulips.
Of course, the bubble eventually burst. The price of tulip bulbs collapsed, and fortunes in perceived value disappeared over night.
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Here’s what I really want you to take away from this story…
If we consider whom the people were who took part in Dutch Tulip Mania and compare them to the majority of Bitcoin owners, it seems both groups share the same shortcomings.
First, we know both groups are speculators betting on the hot new product. But I think we can also make good assumptions to compare the investment sophistication of the Dutch tulip investors and today’s Bitcoin buyers.
Because formal futures markets were only recently developed, the Dutch tulip buyers were inherently unsophisticated investors. All of them. They simply didn’t have the
experience.
The majority of today’s Bitcoin buyers are generally younger, so they share the same inexperience. For many Bitcoin buyers, I imagine it represents their first real investment. They simply don’t have experience in risk management. And I think that’s pretty clear considering some are buying products with 100x leverage!
Bitcoin could be the tulip of the 21st century with the development of a textbook bubble. And I think could be setting itself up for an eventual crash.
Now, even though I’ve been talking about a crash in Bitcoin prices, there’s an epilogue to the Dutch tulip story that’s often overlooked… and that actually provides a bullish outlook for the technology.
Truth is, the Dutch tulip bubble never really ended… it evolved. The price of tulip bulbs collapsed in the 17th century. But the flower industry at large eventually recovered and
has never been bigger. Global floral production value is currently estimated at $55 billion.
People still pay thousands for rare flowers. In fact, an anonymous buyer paid over $200,000 for a rare orchid in 2005. And that’s not even considered the most expensive flower in the world. Rose breeder David Austin spent 15 years and $5 million to develop Juliet rose.
Juliet rose
My point is, the tulip as an individual product lost favor. But the collapse of the tulip  market didn’t completely kill the flower market. In the same way, I don’t expect a
collapse of Bitcoin prices to completely kill the blockchain-based currency market.
Bitcoin is simply one product of many blockchain-based currencies. A crash in Bitcoin would throw a wrench in the blockchain-based revolution. But there is little doubt that blockchain technologies are the future.
As we speak, every major central bank and large financial institution is researching how to implement blockchain into its own systems. It has already been proven to eliminate
verification redundancies and improve security, and new applications are
being tested every day.
So while I think Bitcoin itself could eventually be headed for a crash, the blockchain technologies that are supporting all these digital currencies seem set for unprecedented
growth.
Until next time,
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Luke Burgess
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Two virtual coin get-rich schemes red-flagged by Malaysian Central Bank


GEORGE TOWN: Two more popular financial schemes in Penang have been red-flagged by Bank Negara Malaysia (BNM).

A check on the financial consumer alert list yesterday showed MBI International Sdn Bhd and Mface International Sdn Bhd to be the latest additions.

Both are subsidiaries of MBI Group International, a company with investors worldwide, many of them from China.

To date, 302 companies have been listed under the BNM financial consumer alert list, for suspicion of not adhering to relevant laws and regulations administered by BNM in their operations.

Under the Financial Services Act 2013, individuals or businesses involved in illegal financial activities can be fined up to RM50mil and jailed for 10 years.

When contacted by a Chinese daily, MBI International chairman Tedy Teow’s special assistant Alfa said he did not think that the company would face any problem.

“And it is unnecessary for us to hold a press conference to explain the situation to our investors.

“We are always doing our work and we believe that our investors can see how we are performing so far,” he told Sin Chew Daily.

An investor, H.L. Teoh, said he put in RM22,500 early this year and was given 10,000 game redemption credits.

“Actually, I can start selling it every six months, but I was advised to wait for it to grow bigger in three years.

“When you have lots of credit, it is like having a lot of virtual shares.

“Now, I will have to wait for further instructions from the company before my next course of action,” he said.

Members are allowed to spend their loyalty points, which are converted from virtual money or coins, in exchange for goods and services at affiliated companies, including a supermarket, restaurants, a gym and even a durian stall.

Meanwhile, a press conference called by a branch representative of another controversial financial scheme operator, JJPTR, was cancelled at the last minute.

Press members in Penang had received an invitation from a man known only as Lim at 8.30am yesterday.

However, no reason was given for the cancellation.

JJPTR has been grabbing headlines in the past few weeks since its founder Johnson Lee claimed that the company had lost US$400mil (RM1.738bil) due to a purported “hacking job”.

Lee and two of his top aides have been detained by the police to facilitate investigations following several police reports lodged against JJPTR.

In another case, 19 Chinese nationals lodged police reports in Kuala Lumpur against another multi-level marketing company, claiming that they had lost hundreds of thousands of ringgit.

They claimed to have lost between 100,000 yuan (RM62,536) and 700,000 yuan (RM437,754) since investing in the scheme by Monspace last year.

Founded in 2014, Monspace is listed as a multi-level marketing company, according to the Com­panies Commission of Malaysia.

In an immediate response, Monspace said it would take legal action against any group or individual making defamatory statements against it.

The company said in a statement to the media that it was functioning professionally and had engaged a law firm to keep track of statements made about it.

Source: The Star/ANN by Crystal Chiam Shiying

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WannaCry ransomeware attacks, how to prevent it?


Source: Intel.malwaretech.com

WannaCry has spread to Malaysia; two companies here were stricken by the ransomware virus that has infected a massive number of computers across the globe since Friday. Hackers use the virus to hold a victim’s data to ransom – pay up or lose all your information – and the victims overseas include hospital networks, businesses and government agencies.

PETALING JAYA: All governmental agencies have been told of the WannaCry ransomware outbreak and have armoured themselves against attacks.

“All government agencies at federal and state level have been alerted and ensured that their computers have been patched accordingly,” said CyberSecurity CEO Datuk Dr Amirudin Abdul Wahab.

Dr Amirudin said the WannaCry ransomware exploited vulnerabilities of the Windows operating system, especially on Windows XP which has stopped receiving updates since 2014.

“The malware exploits a flaw in the network protocol called the Server Message Block. Unlike former malware cases which is localised to a single computer, WannaCry exploits the operating system’s vulnerabilities and spreads it across PCs in the network.

“This is why it spread at such speed and range. Realising this, Microsoft came out with the MS17010 patch to stop this particular malware from working and spreading,” he said in a phone interview.

The patch was first rolled out in March this year but was not available to Windows XP, Windows 9 and Windows 2003 until May 12, after WannaCry’s outbreak.

According to the Microsoft Security Response Centre, Windows 10 users were not targeted by the attack.

To protect themselves against any malware attack, computer users were urged to back up their files, avoid clicking on suspicious links online or download attachments in e-mail messages sent by strangers.

“Apart from preventive measures, if you think you have been infected by the malware, please report to us at cyber999@cybersecurity.my or call us at 1300-882999,” he said.

In response to a question, Dr Amirudin said it was not an obligation under the law for anyone to report any security breach.

“It is not mandatory in Malaysia, unlike in some other countries,” he lamented, pointing out that when people made a report to CyberSecurity, their confidentiality would be paramount.

“We can also provide assistance,” Dr Amirudin added.

As of 6pm yesterday, CyberSecurity has yet to receive any report on infected computers in Malaysia.

“It does not mean that infection will not happen. At present, however, the situation is manageable and under control and we are always on the alert,” he said.

When contacted, the Malaysian Communications and Multimedia Commission and CyberSecurity Malaysia also said they had not received any report of a WannaCry infection in Malaysia.

Ransomware: how hackers take your data hostage

Screens of NHS computers with images demanding payment of US$300 (RM1,302) in Bitcoin (Bitcoin, digital currencies rally, caution prevails; virtual currency in property), saying: “Ooops, your files have been encrypted!”

It demands payment in three days or the price is doubled, and if none is received in seven days the files will be deleted, according to the screen message.

“Ransomware becomes particularly nasty when it infects institutions like hospitals, where it can put people’s lives in danger,” said Kroustek, the Avast analyst.

A hacking group called Shadow Brokers released the malware in April claiming to have discovered the flaw from the NSA, Kaspersky said.

Although Microsoft released a security patch for the flaw earlier this year, many systems have yet to be updated, researchers said.

“Unlike most other attacks, this malware is spreading primarily by direct infection from machine to machine on local networks, rather than purely by email,” said Lance Cottrell, chief scientist at the US technology group Ntrepid.

Some said the attacks highlighted the need for agencies like the NSA to disclose security flaws so they can be patched.

G7 finance ministers meeting in Italy discussed the attacks and were expected to commit to stepping up international cooperation against a growing threat to their economies. — AFP

Massive Ransomware Attack Hits 99 Countries

PHILADELPHIA (CNN)–Tens of thousands of ransomware attacks are targeting organizations around the world on Friday.

Cybersecurity firm Avast said it has tracked more than 75,000 attacks in 99 countries. It said the majority of the attacks targeted Russia, Ukraine and Taiwan.

What is it?

The ransomware locks down all the files on an infected computer and asks the computer’s administrator to pay in order to regain control of them.

The ransomware, called “WannaCry,” is spread by taking advantage of a Windows vulnerability that Microsoft released a security patch for in March. But computers and networks that haven’t updated their systems are at risk. The exploit was leaked last month as part of a trove of NSA spy tools.

“Affected machines have six hours to pay up and every few hours the ransom goes up,” said Kurt Baumgartner, the principal security researcher at security firm Kaspersky Lab. “Most folks that have paid up appear to have paid the initial $300 in the first few hours.”

Sixteen National Health Service (NHS) organizations in the UK have been hit, and some of those hospitals have canceled outpatient appointments and told people to avoid emergency departments if possible. Spanish telecom company Telefónica was also hit with the ransomware.

Spanish authorities confirmed the ransomware is spreading through the vulnerability, called “EternalBlue,” and advised people to patch.

“It is going to spread far and wide within the internal systems of organizations — this is turning into the biggest cybersecurity incident I’ve ever seen,” UK-based security architect Kevin Beaumont said.

Russia’s Interior Ministry released a statement acknowledging a ransomware attack on its computers, adding that less than 1% of computers were affected, and that the virus is now “localized.” The statement said antivirus systems are working to destroy it.

Megafon, a Russian telecommunications company, was also hit by the attack. Spokesman Petr Lidov told CNN that it affected call centers but not the company’s networks. He said the situation is now under control.

“We encourage all Americans to update your operating systems and implement vigorous cybersecurity practices at home, work, and school,” the U.S. Department of Homeland Security said in a statement released late Friday. “We are actively sharing information related to this event and stand ready to lend technical support and assistance as needed to our partners, both in the United States and internationally.”

Kaspersky Lab says although the WannaCry ransomware can infect computers even without the vulnerability, EternalBlue is “the most significant factor” in the global outbreak.

How to prevent it

Beaumont examined a sample of the ransomware used to target NHS and confirmed it was the same used to target Telefónica. He said companies can apply the patch released in March to all systems to prevent WannaCry infections. Although it won’t do any good for machines that have already been hit.

He said it’s likely the ransomware will spread to U.S. firms too. The ransomware is automatically scanning for computers it can infect whenever it loads itself onto a new machine. It can infect other computers on the same wireless network.

“It has a ‘hunter’ module, which seeks out PCs on internal networks,” Beaumont said. “So, for example, if your laptop is infected and you went to a coffee shop, it would spread to PCs at the coffee shop. From there, to other companies.”

According to Matthew Hickey, founder of the security firm Hacker House, Friday’s attack is not surprising, and it shows many organizations do not apply updates in a timely fashion. When CNNTech first reported the Microsoft vulnerabilities leaked in April, Hickey said they were the “most damaging” he’d seen in several years, and warned that businesses would be most at risk.

Consumers who have up-to-date software are protected from this ransomware. Here’s how to turn automatic updates on.

It’s not the first time hackers have used the leaked NSA tools to infect computers. Soon after the leak, hackers infected thousands of vulnerable machines with a backdoor called DOUBLEPULSAR.

Source: CNN’s Clare Sebastian contributed to this report.

WannaCry strikes two Malaysian companies

PETALING JAYA: Two local companies have been hit by the infamous WannaCry ransomware, three days after the malicious software was released, infecting 200,000 computers in 150 countries so far.

According to IT security services company LGMS, the first case in Malaysia involved a director of one of its clients who came across the dreaded ransomware on his personal laptop on Saturday morning.

LGMS founder C.F. Fong said the data in the laptop had to be erased as the person did not intend to pay the US$300 (RM1,300) ransom.

The same ransomware appeared in the machine of an automotive shop on Sunday morning.

“The company didn’t have any backup and might pay (the ransom),” said Fong.

Besides disconnecting compu­ters from the network, there was not much else they could do, he noted.

As of 3pm yesterday, a website tracking incidences of WannaCry infections started showing blips in the Klang Valley area.

The website displays a blip whenever an infected computer pings its tracking servers, thus allowing it to map out a geographical distribution of the WannaCry infection.

Fong added that any machine infected by WannaCry should not be connected to a public or cor­­porate network.

“Once you plug into any network, it will start spreading,” he pointed out.

Fong said none of LGMS’ clients, which include major banks in Malaysia, had reported any pro­blems so far, adding that he was quite confident that those who re­gularly updated their computers would not face any problems with WannaCry.

He said ransomware was not new but WannaCry had caused worldwide alarm because of how fast it was spreading.

“We have seen worse and devastating ransomware attacks before but WannaCry’s infection rate is one of the fastest ever as it exploits the vulnerability that exists in Windows,” Fong said.

Security companies all over the world are reporting an unprecedented wave of WannaCry ransomware infections since Friday when more than 150 countries were hit by it.

The ransomware encrypts the data on an infected computer, preventing users from accessing it.

According to a report in The Guardian, the ransomware uses a vulnerability first revealed as part of a leaked stash of NSA-related documents, which infects machines running Windows and encrypts their contents before demanding a ransom to decrypt these files.

The perpetrators promise to release the data once a ransom of US$300 (RM1,300) is paid.

In just two days, computer networks of Britain’s National Health Service, Russia’s interior ministry and international shipper FedEx, among others, were affected.

The website tracking incidences of WannaCry infections was created by a 22-year-old British re­sear­cher known only as MalwareTech, who was credited with being an “accidental hero” after discovering a “kill switch” that halted WannaCry’s outbreak.

Cyber security expert: WannaCry ransomware has … – The Star Online

Malaysia also hit by WannaCry ransomware – Nation

Singapore not affected by cyber attacks

How to Remove Ransomware. – Ransomware Removal Instruction

Police raid CYL office, seize items

Bitcoin, digital currencies rally, caution prevails; virtual currency in property


Bitcoins As Digital Currency's Rally Crushed Every Other Currency in 2016
A collection of bitcoin tokens. Bloomberg—Bloomberg via Getty Images

Digital currencies rally, but caution prevails

While investing in the future is the way to go, it comes with risks and rewards. The best strategy would be to not be in a rush. Do your homework.

THIS week, the rally in crypto currencies is at its all-time high.

Bitcoin, the pioneer in digital currency, surged to over US$1,700 per coin in
anticipation of a reversal in United States financial regulators’ ruling to allow for an exchange-traded fund for Bitcoin and other factors.

Bitcoin was trading at US$935 on March 24. It rose 82%, pushing its market capitalisation to over US$28bil.

Ether, another such currency, surged from US$8 on Jan 1 to US$90 this week, gaining 1,125% in five months.

The market capitalisation of the 700-over currencies is over US$50bil. The promoters believe it is the currency of the future, hence the rise, but the naysayers believe it is entering a speculative bubble.

But there are some who are ditching gold to mine Bitcoins.

It is a fact that crypto currencies are gaining traction from their inception in 2009. Now, at least 150 organisations including Apple, Walmart, Sears, eBay, Overstock.com,  Microsoft, Steam, Expedia and even Subway accept them in exchange for goods.

So, what is Bitcoin then?

It is a form of digital currency, created and held electronically, not blocked by any nation or government, not printed like dollars and ringgit but produced by people. Crypto currencies are digital currencies that use encryption to secure transactions and control how new coins are made.

You and I can get Bitcoins by “mining” computers that validate blocks of transactions using software to solve mathematical puzzles every 10 minutes. If you solve it first, you are rewarded with new Bitcoins.

Bitcoin is the mother of all crypto currencies – also known as virtual currencies, digital currencies and private currencies.

Other than Bitcoin and Ether, there is also Dogecoin, Augur, Chinacoin, Litecon, Dash, Waves and Zcash. There are over 40 exchanges globally to trade in Bitcoins.

All this came about because of fintech, the financial services technology that is  disrupting the financial services sector with faster, cheaper and so-called “reliable”
transactions for money transfers, bank exchange rates and other money-related transactions. The average clearance is a 12-hour period, which apparently the banks cannot match.

In Brazil, people use Zcash to pay for their taxes, electricity bills and purchases.

This week, Australia said there would be no double taxation for crypto currencies and to treat it just like other currencies from July 1, paving the way for greater usage.

Many are betting on crypto currencies because of the lure that they are the currency of the future. Would you?

Since 2009, there have been gainers and losers, so you decide.

All these digital currencies came about because of the Internet and data.  The value of data and digital services is becoming more apparent, and in the digital era, data is the new currency.

Amid all this is blockchain, which is simply a digital ledger that keeps track of Bitcoin transactions and transfers it globally. It boasts of instantaneous transactions, transparent and cheaper than the traditional ways. This is why banks are hurriedly getting their acts together in the area of fintech so as to not miss the boat.

There is a growing number of mergers and acquisitions and crowdfunding for blockchains. Last month, music-podcast-video streaming service Spotify  bought over blockchain technology company Mediachain Labs to help reward  online content owners with royalty payments.

Other telcos and IT firms are getting into blockchain because they don’t want to miss out on anything. Other payment companies are getting into the act too. There is just too much interest in this new wave of doing things.

The journey of crypto currencies, however, is not without hurdles, and there are plenty out there that cannot be ignored. Even blockchain’s growth cannot be ignored, especially since it is being positioned by those championing it as the de facto technology of the future.

But will it really be all that or will it just add another layer to the overall cost?

All these transfers do not need regulation as yet, something that central bankers don’t like. In fact, Bank Negara is already in the thick of things where fintech is concerned.

While investing in the future is the way to go, it comes with risks and rewards. The best
strategy would be to not be in a rush. Do your homework, as there is also the other side of Bitcoin – fake websites, fake online gaming sites, trading, etc.

I bet you would know of someone who has lost money mining Bitcoin or Ether. You honestly wouldn’t want to be put in a spot like those caught up in the recent forex scam and the earlier gold scam.

It would be good too to bear in mind that the sweet spot of crypto currencies has been linked to terrorism financing, money laundering, tax evasion and fraud.

Trust and transparency have been the bedrock of financial institutions all these years. Ensure your bedrock is solid, but at the same time, remember what the former US Federal Reserve chairman Ben Bernanke had said in a letter to US senators about virtual currencies, that they “may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system”.

Do you think blockchain will bring trust and transparency to the world of crypto currency? Share your thoughts with me at bksidhu@thestar

Source: The Star by b.k. sidhu

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Property in a digital era

WITH digital technology all the rage and taking the world by storm, we look at how science and automation has managed to change and revolutionise the way we do things, in this section, property.

While the internet has changed the way we receive information and connect with others and the smart phone transformed the whole concept of a phone, we now look at the evolution of finance and how purchasing items, including a house, is going through reform with the introduction of bitcoin.

Introducing bitcoin

When people hear terms like “bitcoin” and “blockchain”, many are vague while some may not even be familiar with these words. But for the technology industry adept, bitcoin and blockchain is common as these new-age technology concepts and modus operandi have been around, perhaps less widely known in Southeast Asia as it is in the West and China.

For the uninformed and in the dark, bitcoin is a technology that has established a new electronic payment method using “digitised money” made with digital cryptography, otherwise known as cryptocurrency.

This system of payment is carried out when a user uses “bitcoin currency” (or cryptocurrency) to pay for goods by transferring the currency to another user (seller) within the bitcoin community.

Each transaction is recorded in a public data ledger known as “blockchain” and it is here where all the transactions that have taken place within the bitcoin community are stored.

The amazing thing about this system is that anyone in the bitcoin community is able to validate transactions that take place without the need of an intermediary.

Sound too good to be true and a little risky? Well, the reason there is no intermediate party necessary is due to the network bitcoin technology is regulated on.


Modus operandi and more

The bitcoin network is founded on a “peer-to-peer network system (P2P network)” which is explained as “a network of computers/ mobile configured to allow certain files and folders to be shared with everyone or with selected users”.

As a result, the “participants” are in control of their transactions, making everyone equal within the bitcoin community, which is also transparent.

It is said that bitcoin technology was first created in 2008 by a person or a group of persons under the pseudonym “Satoshi Nakamoto” in a research paper. The research stated that there was need for a new electronic payment method, one using digitised money. The analysis also included the future of bitcoin, its benefits, capabilities and potential.

The system was implemented on Jan 3, 2009. And after just a few years, bitcoin grew to become a whopping US$12 billion (RM52.7 billion) globalised economy.

Bitcoin attributes

While not much has been said about bitcoin in this part of the region, the system has been around, slowly developing and growing. Like many things that are cloudy and not often talked about, people are weary hence, there will be sceptics who dissuade others about the system they themselves are unclear about.

With that, theSun’s Brian Chung shares what he learnt of this new method of transaction and currency when he attended a talk by renowned entrepreneur, author and expert on bitcoin Andreas M. Antonopoulos.

Below, Antonopolous shares important information on bitcoin.

1) Bitcoin is an open system of payment: It is a system that anyone can access, participate and innovate, and does not require permission. Bitcoin allows anyone to join in and use the system, validate the transaction and create different kinds of cryptocurrency.

2) Bitcoin is borderless: Like the internet, bitcoin is not restricted to a country’s rules and regulations as it has its own protocol with no distinction across countries.

3) Bitcoin is neutral: Bitcoin does not take the identity of the participant into any consideration. It only validates the transaction that takes place between participants. This attribute also allows participants to remain anonymous.

4) Bitcoin is censorship resistant: Every transaction in the bitcoin network cannot be frozen, censored or canceled. Like the internet, the bitcoin system is a global digital economy with one currency.

5) Bitcoin is a decentralised system: The bitcoin network has no central institution or centre point of control. This trait ensures that there is no one major target for hackers to concentrate their attacks on. Instead, hackers have to create attacks on every single participant’s software with different forms of virus and codes to hack into one computer.

6) Bitcoin is scarce and limited: Bitcoin is a system of value like gold but in digital form. This makes it a system that is not based on credit and debit. It also makes bitcoin a singular global currency with no exchange rate between countries.

7) Every bitcoin transaction is permanent and immutable: The transaction of everyone in the community is verified by everyone in the system. Once it is verified, the transaction will be permanently recorded in the blockchain.

8) Bitcoin is a constantly innovative technology: The open source nature of the bitcoin technology allows other people to further improve on it. There are many other cryptocurrencies based on the bitcoin technology. Moreover, the bitcoin technology is dependent on the internet, which makes improvement and innovation necessary.

Bitcoin transactions can be done via smart phones and computers by downloading the application and software. Users do not need to register themselves to be part of the bitcoin network as all “participants” are referred to by codes and “signature of one’s device”.

However, iPhone users need to remember their iTunes password to download the application. In addition, the device that one has downloaded the bitcoin software on must remain connected to the internet in order for one to use the bitcoin method of payment.

Follow our column next week on the application of bitcoin in property.

[Note: All charts courtesy of Bitcoin Malaysia.]

 

The application of bitcoin in property

 

WHILE last week, we introduced the term bitcoin to those oblivious of this new age cryptocurrency and system of payment, this week, we share bitcoin whiz Andreas M. Antonopoulus’ insights on how this technology is applied in property. Here is what he had to say:

Permanent records

“One very common application is the registration of assets or ownership of tangible and
non-tangible things like the registration of title over land and the ownership of assets
like homes.

When you record something on blockchain, it cannot be modified … it is immutable. Once recorded on the blockchain, the system of trust prevents anyone from reversing or overwriting it. That makes a record on blockchain permanent, an immutable record which is really important in real estate transaction as it allows one to pass the title of a piece of land from person to person independently with no one being able to falsify the record or steal land through paper,” Antonopoulos said.

Moreover, he mentioned that this technology can benefit the industry tremendously as it is able to resolve a huge problem in real estate and property transactions – the falsification of strata titles and property documents.

His view is further enhanced with the emergence of another bitcoin-based system, ethereum. Like bitcoin, ethereum has its own cryptocurrency known as ether. However, ethereum adopts a different technology that is based on the blockchain public ledger system known as Smart Contract.

According to Antonopoulos, a smart contract is an electronic contract with all the contractual obligations of the buyer and seller. The contract is written and coded into an application, which will ensure both parties fulfill their obligations.

Like blockchain technology that is built on trust and verification, these contracts are encoded in a public ledger in the ethereum community. If anyone tries to forge the contract, the ledger will reject it. As such, this smart contract cannot be rewritten and altered as it is a permanent and immutable contract.


Direct transactions

Besides the use of a contract, the technology will make transactions direct, fast and secure.

Antonopoulos also shared about the removal of third parties and its altered role. He said, “Another example relevant to real estate application is the function of escrow. In order to do make transactions for real estate today, people have to use a third party agent, an escrow agent. This escrow agent charges a significant amount of money in most countries. During the process, that agent holds custody of the entire fund, which is dangerous. This means that the escrow agent has to be carefully vetted and have foresight.

Bitcoin can replace all of this by using multi-signature, which allows the seller and buyer to transact escrow programmatically, with the third party acting as mediator only in the case of a dispute.

Buyer and seller will be able to execute a transaction on their own without the need of an escrow agent and without any of the parties having custody of the entire fund. Through bitcoin, you do not need to spend that additional one percent of the sale of the house – the escrow agent is no longer necessary.

It can also change the speed of escrow by doing it in hours instead of a month and changes the security because no one of the three parties can run away with the money. It is faster, cheaper and secure. It can be done in other industries related to real estates like purchasing assets, corporation, mergers and acquisitions.

International property purchase

With the use of decentralised digital currency, one can assume that purchasing items and properties is a little easier, and it is.

The chance of purchasing international property is further reinforced by the fact that bitcoin is not controlled by anyone, not even political and banking institutions. This attribute of bitcoin makes it easier for people buying property from another country. Although each country has its regulations, the use of bitcoin to purchase property abroad saves time and money as one does not need to change currency.

The Australia Real Estate website has stated that there are properties in the United States and Latin America being sold using bitcoin. The Wall Street Journal wrote an article in 2014 regarding a Lake Tahoe property, which was sold for US$1 million in bitcoin.

Follow our column next week for more interesting information on bitcoin, its challenges and how stable a cryptocurrency it is.

By rian Chung

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The Death of the iPhone


 

When I first predicted the “death of the iPhone” in January 2016, most people just laughed.

But when Apple reported its first-ever decline in iPhone sales just three months later, many began to quiet down and listen.

Now, even Tim Cook is recognizing the slowdown, after posting a surprise sales decline in second-quarter earnings this week.

According to Apple’s own CEO:

“We’re seeing what we believe to be a pause in purchases on iPhone.”

Cook has his own theories, but he’s missing the bigger picture. Apple has failed to innovate, and it’s costing the company a fortune.

Many are banking on the iPhone 8, but the truth is even it won’t stand up to what’s coming next::

Simply put, the age of the iPhone is coming to an end…

And the age of augmented and virtual reality is just around the corner.

For investors, that means a once-in-a-lifetime opportunity you don’t want to miss.

 

Good Investing,
Stutman sig

China’s first cargo spacecraft Tianzhou-1 boosts space dream


China’s first cargo spacecraft, Tianzhou-1, was launched successfully at 7:41 pm Beijing Time Thursday, a crucial step for the country to build a space station by approximately 2022.

Lifted by a Long March-7 Y2 carrier rocket, Tianzhou-1 roared into space from Wenchang Space Launch Center in Hainan Province on Thursday evening.

The cargo ship will dock with the orbiting Tiangong-2 space lab, provide fuel and other supplies, and conduct space experiments before falling back to Earth. The launch of Tianzhou-1 was a “zero-window” mission, which means it had to be launched at precisely 7:41:28 pm, with no room for error, China Central Television reported.

The cargo ship is 10.6 meters long and has a maximum diameter of 3.35 meters. Its maximum takeoff weight is 13.5 tons, allowing it to carry over 6 tons of supplies. Tianzhou-1 is larger and heavier than Tiangong-2, which is 10.4 meters in length and has a maximum diameter of 3.35 meters, weighing 8.6 tons, the Xinhua News Agency reported.

“Tianzhou-1’s cargo usually includes space food, medicine, water and so on, for three people’s use for 30 days, but this time it is a unmanned flight, so we put simulated cargo that weighs the same in the spacecraft,” Huang Weifen, deputy chief designer of China’s manned space project astronaut system, told the Global Times.

The biggest challenge of this mission is that new spacecraft, new rockets and the new launch site need to match each other, Xu said. When Tianzhou-1 completes its mission, it will make an automatic destructive re-entry into Earth’s atmosphere.

“This shows that China’s environmental awareness of space has improved, and this is a good attempt to reduce space junk. Tianzhou-1 will fall into the South Pacific under our control when its mission ends,” Xu said.


Advanced technology

Bai Mingsheng, chief designer of the cargo ship, told Xinhua that the cargo aboard the spacecraft weighs almost the same as the ship, exceeding the load capacity of Russian cargo ships in active service. If the Tianzhou-1 mission is successful, China will become the third country besides Russia and the US to master the technique of refueling in space.

“In general, Tianzhou-1’s technology is definitely in the first-class around the globe, at the same stage as Russia and the US. Although Europe and Japan also have their own cargo spacecraft and their payload capacity is bigger than Tianzhou-1, they heavily rely on US and Russian technological support in various aspects,” Song Zhongping, a military expert who served in the Second Artillery Corps (now known as the PLA Rocket Force), told the Global Times on Thursday.

From launch to automatic destruction, China’s Tianzhou-1 doesn’t need to rely on any other country’s facilities or technology, and compared to the US’ Cygnus and Dragon, its payload capacity is bigger and technologically more reliable and advanced in general, Song said.

Space ambition

China aims to build a permanent space station that is expected to orbit for at least 10 years, and the maiden voyage of the cargo ship is important as it will be a courier to help maintain the space station. Without a cargo transportation system, the station would run out of power and basic necessities, causing it to fall back to Earth before the designated time, Xinhua reported.

Currently, the only space station is the International Space Station (ISS), which was mainly pushed by the US and Russia and was launched in 1998. It should reach the end of its mission in 2020, but the US and Russia might decide to extend its lifetime a little bit, Song said.

According to previous reports in the Global Times, in order to prevent China from sharing in advanced space technology, the US always refused any attempt from China to join the ISS program, despite efforts China made in 2000.

“But we are going to have our own space station very soon. After 2020, China’s Tiangong will very likely become the only space station in service, and will provide services to more developing countries so more countries can benefit from humanity’s achievements in space technology,” Song said.

Source: By Liu Yang in Wenchang and Yang Sheng in Beijing Source:Global Times Published: 2017/4/21 0:08:39

First cargo spacecraft boosts China’s space dream

WENCHANG, Hainan, April 20 (Xinhua) — China has taken another step toward its goal of putting a space station into orbit around 2022, by sending its first cargo spacecraft Tianzhou-1 into space on Thursday evening.

Atop a Long March-7 Y2 carrier rocket, Tianzhou-1 rose into the air from the Wenchang Space Launch Center in south China’s Hainan Province at 7:41 p.m.

China declared the launch a success after it entered designated orbit minutes later.

The cargo ship will dock with the orbiting Tiangong-2 space lab where two Chinese astronauts spent 30 days in the country’s longest-ever manned space mission, provide fuel and other supplies to the latter, as well as conduct space experiments before falling back to Earth.

If the Tianzhou-1 mission is successful, China will become the third country besides Russia and the United States to master the technique of refueling in space.

China aims to build a permanent space station that is expected to orbit for at least 10 years, and the debut of the cargo ship is important as it acts as a courier to help maintain the space station.

Without a cargo transportation system, the station would run out of power and basic necessities, causing it to return to Earth before the designated time.

“The Tianzhou-1 mission includes the breakthrough of in-orbit refueling and other key technology needed to build a space station, laying a foundation for future space station operations,” said Bai Mingsheng, chief designer of the cargo ship.

THREE DOCKINGS

Measuring 10.6 meters long and boasting a maximum diameter of 3.35 meters, the Tianzhou-1 cargo ship has a maximum takeoff weight of 13.5 tonnes, and could carry over 6 tonnes of supplies.

Tianzhou-1 is larger and heavier than Tiangong-2, which is 10.4 meters in length and has a maximum diameter of 3.35 meters, weighing 8.6 tonnes.

Bai said that supplies loaded on the cargo spacecraft are nearly as heavy as the ship’s own weight, exceeding the loading capacity of Russian cargo ships in active service.

Tianzhou-1 will dock with Tiangong-2 three times, said Bai. After the first docking, aerospace engineers will test the controlling ability of the cargo spacecraft over the two spacecraft.

The second docking will be conducted from a different direction, which aims to test the ability of the cargo ship to dock with the space station from different directions.

In the last docking, Tianzhou-1 will use fast-docking technology. Previously, it took China about two days to dock, while fast docking will take about six hours, according to Bai.

Refueling is conducted during docking, a process that is much more complicated than refueling vehicles on land.

The refueling procedure will take 29 steps and last for several days each time.

This means the Tianzhou-1 will stay in space for about six months. It will fall into a designated sea area after fulfilling its tasks.

SUPPORTING SPACE STATION

Space cargo ships play a crucial role in the maintenance of a space station.

Cargo ships can send all kinds of supplies to the space station which can be an experiment field for developing technology in space.

Huang Weifen, a deputy chief designer of the Astronaut Center of China, said that supplies carried by Tianzhou-1 include goods that will meet the basic living and working needs of three astronauts for 30 days in space, including drinking water, oxygen bottles and nitrogen bottles.

Also onboard include facilities for microorganism tests, and sensors are installed to obtain data such as mechanics and temperature for the future design of the space suit outside a spacecraft.

“We hope to gather relevant data through this mission and accumulate experience for sending material for the future space station,” she said.

VISION OF SPACE POWER

Although China has achieved many giant steps in space exploration, the country’s space odyssey is far from over as it eyes building its own space station and far beyond that: landing on Mars.

In 1992, the central authority approved a three-step manned space program.

The first step, to send an astronaut into space and return safely, was fulfilled by Yang Liwei in Shenzhou-5 mission in 2013.

The second step was developing advanced space flight techniques and technologies including extra-vehicular activity and orbital docking.

The final step will be able to operate a permanent manned space station.

Chinese scientists said they plan to launch a core module of the country’s first space station around 2018, followed by two experiment modules.

The station in the primary stage will be composed of three modules: core module, experiment module I and experiment module II. Each module will weigh more than 20 tonnes and together the three will be structured in the shape of T. The core module will be in the middle with an experiment module on each side.

During its operation, the space station could be linked to one additional cargo ship and two manned spacecraft at one time, and the maximum weight of the whole assembly could reach up to 90 tonnes.

Based on such design, scientists will keep updating capsules in accordance with scientific research and extend their abilities.

With the International Space Station set to retire in 2024, the Chinese space station will offer a promising alternative, and China will be the only country with a permanent space station.

So far, China has successfully launched 11 Shenzhou series spacecraft, including six manned spacecraft that lifted 11 astronauts into space.

The country strives to realize the third step of its lunar program in 2017: sending Chang’e-5 lunar probe onto the moon which will return with samples.

Source: Xinhua| 2017-04-20 21:17:45|Editor: Mu Xuequan

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Graphics shows launch procedure of China’s first cargo spacecraft Tianzhou-1

Graphics shows the launch procedure of China’s first cargo  spacecraft Tianzhou-1 on April 20, 2017. (Xinhua/Ma Yan)

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tissues or organs lost due to illness or injury, just like gecko can regrow a tail.
Scientists will test a medicine to treat bone loss during the maiden voyage of China’s first cargo spacecraft Tianzhou-1. The medicine has been specially developed for astronauts, but they hope it will benefit ordinary people too.
As astronauts continue to break records for time spent in space and manned Mars exploration is under discussion, scientists in China have begun a groundbreaking study to determine if humans can reproduce in space.

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Malaysian start-up CO3 plans to set up Google-like offices in the region


 

KUALA LUMPUR: Taking a cue from the trendy, cool office spaces of Google and the like, a Malaysian start-up aspires to offer a one-of-its-kind co-working space in the region.

Dubbed CO3 Social Office, the venture was launched yesterday and will roll out by June.

Co-founder and CEO Yong Chen Hui said CO3 stood for connectivity, collaboration and community that offered a platform for people from different establishments to work together.

“Cool workplaces like Google make people envy,” he said in his presentation during a media conference here yesterday.

“Such places will inspire people to give their best to the corporation everyday,” Yong said.

The first CO3 Social Office, with a space of 21,000 sq ft for 300 people, will be housed at the shoplots next to IOI Mall in Puchong.

The second, covering 40,000 sq ft for 500 people, will be located at Jalan University in Petaling Jaya, next to Sin Chew Media Corporation Bhd, which is one of CO3’s eight founders.

Three more are planned. These will be situated at the Kuala Lumpur city centre, Sentral and Damansara.

The ambitious expansion plan is to include 40 locations in the Asean region. The spaces will be equipped with meeting rooms, private booths, sleeping pods, mini library, fast wi-fi, etc.

Yong said the company’s target audience was the 90s – “the future” – who value freedom, cool and charming trends, etc.

CO3 aims to respond to the flexibility and fluidity of today’s work environments by transforming offices into hip communal living spaces.

CO3 will also strive to provide entrepreneurs, SMEs and non-pro­fit organisations a unique co-office environment to help grow their businesses.

“We hope to be the next US$2bil ‘unicorn’ by 2022,” Yong said during the presentation.

A “unicorn” is a company with a billion-dollar valuation. The mythical animal is used to emphasis how rare it is to reach that status.

Bruneian artiste Goh Kiat Chun, better known as Wu Zun, is one of the eight founders of CO3 Social Office.

Source: The Star by tho xin yi

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