Satoshi Nakaboto: ‘Nasdaq-listed company buys $250M of Bitcoin to dodge inflation’
Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.
Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Habermass used to say: Shleppppppp it!
We closed the day, August 11 2020, at a price of $11,410. That’s a notable 3.96 percent decline in 24 hours, or -$471.11. It was the lowest closing price in six days.
We’re still 43 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).
Bitcoin‘s market cap ended the day at $210,616,121,945. It now commands 62 percent of the total crypto market.
Yesterday’s volume of $27,039,782,640 was the highest in eight days, 19 percent above last year’s average, and 63 percent below last year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 437 tons of gold.
A total of 349,798 transactions were conducted yesterday, which is 9 percent above last year’s average and 22 percent below last year’s high.
Yesterday’s average transaction fee concerned $2.92. That’s $0.99 below last year’s high of $3.91.
As of now, there are 18,470 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.
Furthermore, the top 10 Bitcoin addresses house 4.9 percent of the total supply, the top 100 14.2 percent, and the top 1000 34.8 percent.
With a market capitalization of $209 billion, Pfizer has a market capitalization most similar to that of Bitcoin at the moment.
On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.
He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.6 percent behind being on track. Bitcoin‘s price should have been $503,708 by now, according to dickline.info.
On a yearly basis Bitcoin now uses an estimated 64 terawatt hour of electricity. That’s the equivalent of Switzerland’s energy consumption.
Yesterday 33,567 fresh tweets about Bitcoin were sent out into the world. That’s 66.3 percent above last year’s average. The maximum amount of tweets per day last year about Bitcoin was 82,838.
This was yesterday’s most engaged tweet about Bitcoin:
[email protected]y, a Nasdaq-listed software firm worth $1.2 billion, has bought $250 million in bitcoin as a “reasonable hedge against inflation.”@realDannyNelson reportshttps://t.co/383pKUgHfo
This was yesterday’s most upvoted Reddit post about Bitcoin:
MicroStrategy becomes first listed company to buy $250M in bitcoin as part of its capital allocation strategy from r/Bitcoin
My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.
Author: Satoshi Nakaboto
Defcon Speaker Discusses Liberating $300K Worth of Bitcoin From an Encrypted File | Bitcoin News
This year due to the coronavirus outbreak the world-famous hackers’ convention Defcon held it’s 28th annual event with virtual presentations in “safe mode.” One of the presentations was from an executive from Pyrofex, Michael Stay, who discussed how he broke into an encrypted file to liberate $300,000 worth of bitcoin for a Russian investor.
Defcon 28 “safe mode” presentations got interesting on August 5, when ex-Google employee Mike Stay told a story about how he rescued $300k worth of bitcoin (BTC) from an encrypted zip file.
Stay is the CTO of Pyrofex Corp, a blockchain development firm that launched in 2016. During a speech last Wednesday, May told the story of how he was contacted not too long ago, so he could help someone retrieve their crypto assets.
“About six months ago, a Russian guy contacted me on Linkedin with an intriguing offer,” May said on Youtube. “He had hundreds of thousands of dollars in Bitcoin keys locked in a zip file, and he couldn’t remember the password. Could I break into it for him?”
The story Stay told was quite intriguing, as the anonymous Russian investor wanted access to the bitcoins worth roughly $300,000. Stay said the anonymous client found his name when he stumbled upon an old cryptanalysis paper he wrote 20 years ago.
The cryptographer also explained that the Russian purchased all the coins in 2016 for around $10k. However, the investor put the bitcoin into an encrypted zip file and after some time passed, he forgot his password.
“In that attack, I needed five files to break into a zip archive,” Stay recalled. “This one only had two files in it. Was it possible? How much would it cost? We had to modify my old attack with some new cryptanalytic techniques and rent a GPU farm, but we pulled it off.”
According to the cryptographer it cost him around $7k to pull off the attack against the encrypted zip file. Stay said that he also had help from the CEO of Pyrofex Nash Foster who is also an ex-Google employee. Stay detailed that he built his own program to try different password techniques and at first the job was very difficult.
The Pyrofex CTO stated that at first the Russian investor was leery of trusting Stay, and he wouldn’t divulge too much information. Stay said the entire process could have taken a very long time and even months to accomplish. However, with the help of Foster, Stay said the operation was executed in days.
The story is interesting because there is likely a great number of people who have lost bitcoins via an encrypted file and forgot the password. With digital assets growing more valuable every day, it’s likely that individuals who think they have lost coins, may still attempt to retrieve them with help from an expert.
A study from Chainalysis in 2018 suggests that a fifth or 20% of all bitcoins that exist can potentially never be recovered or are considered lost. Coin Metrics published a study in 2019 that said “assumed lost coins” was around 1.5 million BTC.
What do you think about Mike Stay’s story about retrieving $300k in bitcoin from an encrypted file? Let us know what you think about this story in the comments below.
$300K bitcoin, Coronavirus, cryptanalytic techniques, Defcon 28, Defcon 28 “safe mode”, encrypted file, Lost Coins, Michael Stay, Nash Foster, program, Pyrofex CTO, Russian Investor, trust, Zip File
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MicroStrategy Makes Large Bitcoin Purchase As Hedge
The firm allocated more than $250 million into Bitcoin as the firm sees the digital currency as an effective inflation hedge
Nasdaq-listed MicroStrategy has announced it obtained 21,454 bitcoins in a recent on-market purchase. The company sees inflation entering the economy and thinks that Bitcoin is a, “reasonable hedge against inflation” according to a press statement that accompanied the crypto purchase.
MicroStrategy CEO Michael J. Saylor commented:
“This investment reflects our belief that Bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
While many investors have been focused on the fallout from COVID-19, and the exploding US share market, the extraordinary actions undertaken by central banks may have far reaching consequences.
A recent report from the Bank of America (BoA) estimates that major central bank balance sheets will rise to at least $28 trillion next year, the highest amount on record.
So far this year the US’ central bank has added more than $3 trillion in an effort to keep financial markets solvent, which may be part of the reason why both US equities and gold are trading at record high prices.
To put these numbers in perspective, when the 2008 Global Financial Crisis hit, the major central banks’ balance sheets were well under $5 trillion.
On the other hand, the amount of Bitcoin that can ever be created is capped, and it recently became more difficult to mine the world’s most valuable crypto token.
Saylor commented on Bitcoin:
“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility and community ethos of bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.”
Unlike other investors who have opted to buy Bitcoin via cash-settled futures, MicroStrategy opted to buy actual Bitcoin, and avoid the fiat financial system entirely.
Earlier this year, billionaire investor Paul Tudor Jones bought into Bitcoin with US listed futures that aren’t tied to the actual crypto market.
The billionaire bought into Bitcoin as central banks added trillions to their balance sheets, and his message to investors may be even more valid now.
Jones wrote to investors:
“Something appears wrong here and my guess is it is the price of bitcoin…One thing is for sure, these are going to be incredibly interesting times.”
Bitcoin News Roundup for Aug. 11, 2020
Aug 11, 2020 at 16:00 UTC
Author: Danny Nelson
Why Chinese Miners Won’t Stage a 51% Attack on Bitcoin
China accounts for more than half of the world’s Bitcoin mining capacity but Jameson Lopp, the co-founder and CTO of Casa, has hosed down fears that Chinese miners are a threat to Bitcoin in a blog post on Aug. 9.
Although many people have raised concerns over the concentration of such much hashpower being located in China, Loop pointed out that even in the event of a 51% attack on Bitcoin, attackers are limited in what they can actually do.
He explained that attackers can’t steal people’s Bitcoin arbitrarily, nor change the consensus rules. They can’t reverse valid transactions. The only thing they can do is double spend their own Bitcoin.
The best way for a 51% attacker to seek maximum profit is to cash out via crypto exchanges into “censorship resistant cryptocurrency or stablecoin”. However, this presents big problems in terms of withdrawal limits and Know Your Customer requirements among exchanges. It also doesn’t make much economical sense for attackers to dump a big chunk of Bitcoin at once:
“The value of the Bitcoin you still hold after the attack will likely have decreased substantially, thus a successful large attack could actually result in shooting yourself in the foot. You’d better not slip up while you’re accessing the exchange you target. For example, one hacker returned $25M in stolen funds after leaking their IP address.”
Loop thinks it would be nearly impossible for a nation state to get in total control of mining facilities and that Bitcoin stakeholders would take immediate emergency actions against such an act.
Even if the attack shifts from targeting individual mining facilities to an easier attack of mining — 70% of hashpower in China is coordinated via fewer than 10 mining pools — switching mining pools is incredibly easy for miners. It’s also difficult to pull off covertly as there are plenty of independent companies putting out social media alerts against malicious actors.
“It’s hard to imagine a scenario in which a state actor would be able to quickly and covertly seize enough hashpower to perform an ongoing attack that lasts more than a few hours.”
According to Lopp, the reason hashpower has been concentrated in China ever since 2015 is due to the fact most of the mining chips are produced in Asia. Most importantly China also has “an abundance of cheap energy” and has the political and economical stability to facilitate the mining infrastructures.
Loop concluded any large-scale mining attack is going to be “limited in its effectiveness”. As Cointelegraph reported before, in the long run, competition in semiconductor production and cheaper power sources will continue to rise globally and China’s mining dominance will not last.
Bitcoin News Roundup for Aug. 11, 2020
Bitcoin News Roundup for Aug. 11, 2020 written by Adam B. Levine @ https://www.coindesk.com/bitcoin-news-roundup-for-aug-11-2020 August 11, 2020 Adam B. Levine
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