Latest news and thoughts on Bitcoin and cryptocurrency

Month: October 2021

The first African country to introduce a digital currency

Nigeria is experiencing a boom in interest in cryptocurrencies.

Nigerian President Muhammadu Buhari has introduced the digital currency, eNaira, in Africa’s largest economy seeking to take advantage of the growing popularity of virtual money and cryptocurrencies.

With eNaira, Nigeria became the first country in sub-Saharan Africa to launch a digital currency, joining China and several other countries that use or whose central banks are preparing regulations to introduce a digital currency.

We became the first country in Africa and one of the first in the world to introduce a digital currency for our citizens

, Buhari said at the official promotion at the beginning of the week.

Nigeria is experiencing a boom in interest in cryptocurrencies as people look for ways to avoid the weakening of the existing naira currency and to cope with the high cost of living and unemployment in Africa’s most populous country.

Digital currencies backed by central banks, or CBDCs, as well as for cryptocurrencies, are virtual money, with CBDCs being the legal tender regulated by central banks, while cryptocurrencies are out of state control.

Five countries around the world have already launched the CBDC, while another 14, including Sweden and South Korea, are in a pilot phase according to CBDC data monitored by the Atlantic Council.

In West Africa, Ghana also intends to launch its own CBDC currency soon.

Returns the ball – Got Bitcoin and signed jersey – Tom Brady repaid a loyal fan nicely

The ball with which Tom Brady, the quarterback of the Tampa Bay team, scored his sixth touchdown ended up in the audience, and the fan who caught it received a special thank you package.

One of the big supporters of cryptocurrencies and co-founder of the NFT platform, the playmaker of the Tampa Bay Buccaneers team threw on Sunday, October 24th. his jubilee 600th touchdown in his career.

However, in ecstasy, his catcher threw the historic ball into the audience to the fans.

He caught the ball and returned it

The man from the audience, Byron Kennedy, who caught the ball, quickly returned it, after being asked to do so by the Tampa team, but Tom Brady wanted to thank him personally.

He sent him signed jerseys, a helmet, season tickets for the next season, and the end of the current one, as well as one Bitcoin.

While this sounds incredible, Tom Brady is one of the celebrities who has been a supporter of cryptocurrencies and NFTs for some time.

As a guest on Monday’s show, Brady joked that Kennedy made a mistake when he returned the ball and that he inserted one Bitcoin into the package as a gesture of gratitude. is an NFT platform that Brady launched this summer, which has attracted the attention of celebrities and athletes around the world, so there is a great chance that this ball will also be turned into digital NFT.

What was NFT?

Let us remind you, NFT is an abbreviation of Non-Fungible (irreplaceable) token.

Although after this sentence you are not much closer to the meaning of NFT, we will explain to you.

An irreplaceable token means that it is unique and cannot be replaced by someone else.

Bitcoin, on the other hand, is a replaceable token, because when you exchange one Bitcoin for another you will still have one Bitcoin.

When you replace one NFT with another, you will have a completely different thing. NFT also allows for digital ownership of something, whether it’s a work of art, a ball that Brady made the 600th touchdown in his career, or a Pokemon card.

In a later interview, when Kennedy was asked if he would still return the ball, he said that he would and that he would like to play a game of golf with his favorite quarterback.

We are not sure if this interview was done before or after learning that the package also contains one Bitcoin, but this trip to the game paid off for Kennedy.


On the other hand, an increasing number of athletes and celebrities are involved in various projects with cryptocurrencies, so this move by Brady is very smart because in that way he promoted cryptocurrencies, as well as his platform, which is slowly but surely gaining popularity.

On the other side of the ocean, in August, Leo Messi, as part of a welcome package to his new club, received part of the money in PSG cryptocurrencies, thus promoting the digital cryptocurrency of this French club.

Can advanced quantum computing pose a risk to Bitcoin security?

Rapid advances in quantum computing could pose a risk to certain types of Bitcoin transactions.

A wide range of initiatives in post-quantum cryptography works to mitigate unwanted scenarios

Some predict that rapid advances in quantum computing will have key implications in domains that use public-key cryptography, such as the Bitcoin ecosystem.

Bitcoin’s “asymmetric cryptography” is based on the principle of “one-way function”, which means that the public key can be easily reported from the corresponding private key, but not vice versa.

This is because classical algorithms require an astronomical amount of time to perform such calculations and are therefore impractical.

However, Peter Shore’s quantum algorithm in polynomial time, which is performed on a sufficiently advanced quantum computer, could perform such calculations and thus falsify digital signatures.

To better understand the level of risk introduced by advanced quantum computing, we limit ourselves to simple person-to-person payments.

They can be divided into two categories, each affected differently by quantum computing:

  • Pay to public key(p2pk): Here the public key can be obtained directly from the wallet address. A quantum computer could potentially be used to execute a private key, thus allowing a thief to spend money on an address.
  • Pay to public key hash(p2pkh- Pay to public key hash): Here the address consists of a public key hash and therefore cannot be obtained directly. It is detected only at the moment of starting the transaction.

So, until the funds are transferred from the p2pkh address, the public key is not known and the private key cannot be reported even using a quantum computer.

However, if funds are ever transferred from a p2pkh address, the public key is revealed.

Therefore, in order to limit the exposure of the public key, such addresses should never be used more than once.

Although avoiding the reuse of a p2pkh address can limit vulnerability, there may still be situations in which a quantum-capable adversary can successfully commit fraud.

The act of transferring coins even from a “secure” address reveals the public key.

From that moment until the transaction is dug up, the opponent has the opportunity to steal the funds.

What are the theoretical methods of attack?

Transaction hijacking: Here the attacker calculates the private key from the public key of the pending transaction and creates a conflicting transaction by spending the same coins, thus stealing the victim’s property.

The opponent offers a higher fee to encourage inclusion in the blockchain through the victim’s transaction. It must be noted that before the victim’s transaction is mined, the attacker must not only create, sign, and broadcast the conflicting transaction, but also first run Shor’s private key execution algorithm.

It is clear that time is crucial for such attacks. Thus, the level of performance of quantum computers dictates the probability of success of this threat vector.

Selfish mining: In this potential attack vector, an attacker could theoretically use Grover’s algorithm to gain an unfair advantage in mining.

This quantum computing routine helps search for unstructured data and can provide a square jump in the hash rate.

The ability to rapidly mine by sudden quantum acceleration could lead to price destabilization and control of the chain itself, resulting in possible attacks of 51%.

Combined attacks: By combining the above two vectors, an attacker could theoretically build a secret chain and selectively publish blocks to reorganize the public chain.

How to defend against these attacks?

Data collected through the mempool API can be used to run real-time machine learning algorithms to spot anomalies in the transaction fees offered and thus mark transaction abduction attempts.

Such algorithms can also help spot sharp jumps in block hash and raise warnings about possible “selfish mining” accordingly.

Dynamic AI models can calculate the risk of fraud during transactions at any time until confirmation.

These models can infer the potential earnings of a fraudster for each threat vector.

Insurance products can be designed to cover the risk of fraud during the transaction, whose prices can be calculated dynamically based on the probability of fraud in accordance with the models.

In addition, a “reputation score” can be calculated for each node in the blockchain. APIs that collect device details, IP address, etc. can be used to group activities (mining and/or transactions) into homogeneous clusters, and therefore have a high chance of originating from the same users.

Such patterns can also be used to directly detect quantum computers in a blockchain. A “reputation score” could be of particular importance in the case of combined attacks because opponents use a multi-vector approach to stealing funds.

Intelligent user interface design can help alert customers to the risk of address reuse, through the strategic placement of warning messages.

The principles of efficient incentive design can be used to formulate changes in consensus rules, such as applying margins to transaction fees for p2px and reusing p2px wallets.

This would lead users to move to safer behavior. Additionally, this would result in shortening the confirmation time of such transactions because the miners would select them first, thus narrowing the window of opportunity for the opponent.

The growth of quantum computers, with internal states consisting of many qubits, may raise questions about the basic cryptographic security of Bitcoin.

Even users who adhere to best security practices can still be affected in situations where a significant number of Bitcoins have been stolen from insecure addresses, causing increased price volatility.

A wide range of initiatives in post-quantum cryptography is underway to mitigate such scenarios.

It is crucial to note that the emergence of “quantum supremacy” does not necessarily mean the weakening of the bitcoin ecosystem.

Better quantum computing systems will eventually provide opportunities for a slow economic transition to better tools.

While the phase of asymmetric use of quantum computers can generate multiple threat vectors, fraud risk management principles along with user awareness can help design solutions for such a future.

Elon Musk in one word breaks down the value of Shiba Inu: Brutal truth brought down the price by 20%

The price of Shiba Inu (SHIB) fell by a sharp 20% after Elon Musk announced that he did not own any of these crypto-coins.

One of the cryptocurrencies that have had a huge increase in value in the last few months, Shiba Inu has suffered a drop of 20% just after one tweet by Elon Musk.

To put it bluntly, Shiba Inu is a token based on the Ethereum ERC-20 standard and belonging to the meme-coin group.

This essentially means that its value is not determined on the basis of usability, but on the basis of current popularity.

One tweet changes everything

In early October, Elon Musk posted a picture of his Shiba Inu dog Floki, which sparked an avalanche of interest, so the price of Shiba Inu coins began to rise sharply, recording an incredible 500% growth.

With or on a shield

However, just as things like this can boost popularity, so unseen tweets can do just the opposite.

One of the great propagandists of Shiba Inu coins – ShibaInuHodler on Twitter asked Elon Musk how many Shiba Inu coins he has, followed by a short and cold answer: “None”.

While this sounds like the plot of a Latin American series in which Elon eventually learns that she is her own mother, we wanted to show you how much meme-coins are kept on glass legs, and how much they depend on the mood of the celebrities who propagate them.

Without the right laws of price movements

Elon Musk has so far always supported Dogecoin(DOGE) and Shiba Inu(SHIB) coins and has caused their prices to fluctuate, completely contrary to the laws of any financial instrument.

Community reactions were polarized after Musk’s tweet.

And while some have advised Musk to invest coins in Shiba Inu, others have asked the community to “stop bothering celebrities, when the community is great even without such nonsense,” which is true.

Elon Musk, on the other hand, spent a little more time on Twitter the same day, explaining to users the benefits of DOGE coins, saying, “A lot of people I’ve talked to on Tesla production lines or in building SpaceX rockets own Doge.

They are not financial experts or Silicon Valley technologists.

That’s why I decided to support the Doge – because it acts as a cryptocurrency for ordinary people.

How is the world stock market this morning? Oil, gold and Bitcoin stable

Traders expect data on US gross domestic product for the third quarter, which will be released on Thursday

Asian stock markets are on the rise at the beginning of the trading week, which is expected to publish quarterly reports on the operations of a large number of companies, although news from China about the introduction of property taxes in some regions had a negative impact on shares in Hong Kong and Chinese capital markets.

MSCI’s broadest Asia-Pacific stock index, excluding Japan’s, rose 0.26 percent, while Japan’s Nikkei fell 1.0 percent due to weakening profits of several domestic companies, Reuters reports.

Australian stocks rose 0.47 percent, supported by the value of mining firms, while South Korean stocks rose half a percent, with their rise limited by more subdued investment activity in Greater China.

The Chinese index of the most liquid stocks stagnated, while the sub-index of shares in the real estate sector fell by 3.0 percent.

The Hong Kong Stock Exchange Reference Index strengthened 0.18 percent, despite a 2.6 percent drop in shares of land-based real estate companies listed on the market.

The decline in the shares of real estate companies came after Saturday’s announcement from the Chinese parliament that a pilot real estate tax would be introduced in some regions.

As a reminder, the Chinese construction giant Evergrande last week barely escaped collapse by paying coupons on bonds, and according to today’s Reuters reports – some bondholders received the money.

At the same time, that company is not the only one that is on the financial edge. Namely, there are at least 4 more, which suggests that the Chinese real estate market is quite shaken.

On the currency exchanges, the dollar index, according to the latest available data, is 93,521 points, down 0.15 percent on a daily basis, and is moving towards its monthly low of 93,455 points recorded last week.

Traders are waiting for data on the gross domestic product of the USA for the third quarter, which will be published on Thursday.

Markets are still trying to position themselves for the expected reduction of the US stimulus program at the end of this year and a possible increase in interest rates by the end of 2022.

Federal Reserve Chairman Jerome Powell said on Friday that the US central bank should begin the process of cutting support by reducing asset purchases, but that it should not yet touch interest rates.

In commodity markets, oil prices are still on an upward trajectory, continuing the growth registered before the weekend, with American oil reaching a seven-year high because global supply is still insufficient in relation to growing demand around the world.

Brent North Sea crude jumped 0.88 percent to $86.28 a barrel, while U.S. WTI oil soared 1.11 percent to $84.69, the highest level in seven years.

The price of gold for spot delivery strengthened 0.3 percent to $1,797 an ounce. The value of this precious metal has been rising for the past two weeks due to growing concerns about inflation.

Bitcoin, which is also increasingly credited with protection against inflation, is trading at $61,901, up 1.6 percent on a daily basis, after last week’s turbulent trading when it reached a new high of $67,016.

The first Bitcoin trading on Wall Street: Satisfied investors, do not have to mine themselves

The digital coin recorded strong growth this month, in anticipation of the fund’s stock market debut.

The first trading of the stock exchange fund related to Bitcoin futures was done on Wall Street, which finally gave investors in cryptocurrencies what they were looking for, reports the American TV station CNN.

The ProShares Bitcoin Strategy ETF began trading at $40 a share on Tuesday, under the label “BITO,” and ended the day with a 5.0 percent raise.

This is the first fund of several expected ETFs that are preparing to debut with Bitcoin futures on the New York Stock Exchange.

VanEx, Invesco, Valkyrie, and Galaxy Digital are among several investment companies that have filed applications with the Securities and Exchange Commission to start trading Bitcoin ETFs, CNN states below.

Bitcoin has seen strong growth this month in anticipation of the fund’s stock debut and thanks to the fact that it is being bought by large institutional investors.

The value of this cryptocurrency has recovered, despite constant criticism from Jamie Damon, the general director of the investment bank “JPMorgan Chase”, who recently said that Bitcoin is “worthless”.

The price of the most famous coin exceeded 64,000 dollars on Tuesday afternoon, thus strengthening from the level recorded at the end of September of just under 44,000 dollars, which is an increase of over 40 percent.

Bitcoin is now just 1.0 percent away from its all-time high – just under $65,000 reached earlier this year.

Experts say that the ETF will bring Bitcoin closer to the masses and enable the average investor to participate in trading, without having to mine it himself.

Bitcoin and its new record – worth more than $65,000

Yesterday, the value of Bitcoin recorded the highest level and a new record was reached: the level of 65,000 dollars was exceeded.

Bitcoin briefly jumped above $65,000, a day after the financial instrument intended for that unit debuted on the New York Stock Exchange.

The Bitcoin Strategy ETF, a new stock exchange fund linked to Bitcoin, increased its value by almost five percent on the first day of trading, on Tuesday.

The fund should be a more affordable tool for major investors and could therefore further encourage cryptocurrency trading.

There is a possibility that the impact of the ETF launch could already be assessed, and we could see some kind of reaction – Buy rumors, sell the fact in the days ahead

said analyst Favad Razakzada.

Known for instability, Bitcoin could also easily break a new record, before potentially climbing to $70,000, Razakzada added.

The world’s largest cryptocurrency by market capitalization rose more than 2 percent, to $65,607.92, surpassing the previous record of $64,899 it set in mid-April.

The value of Bitcoin reached a historically high level in mid-February when it was worth more than 51,000 dollars. This expansion of its value followed the announcement of large companies, such as Tesla and MasterCard, that they would support cryptocurrencies.

The optimistic statements of investors and billionaire Paul Tudor Jones raised the mood in the market and influenced the growth of the value of Bitcoin.

I think that cryptocurrencies will be excellent protection against inflation, it is quite clear that Bitcoin is currently leading the game with gold…

Jones said as a guest on CNBC.

How does cryptocurrency mining affect the pollution of the human environment?

Will the resumption of the use of discarded thermal power plants further endanger the level of pollution on the planet?

Bitcoin mining is becoming more expensive for the simple reason that fewer and fewer coins are left to be mined. Of the total predefined amount of 21 million coins, another 2.3 million coins remain to be mined.

Mining comes down to calculating cryptographic hash functions and comparing the calculated value with a database of undiscovered coins.

The smaller the remaining amount of coins, the longer the job of calculating and comparing the values of calculating hash functions.

Since the calculation process is longer, the amount of energy required for the operation of computer equipment is higher, ie the costs of electricity used by digital miners increase.

The obstacle to big Bitcoin mining is finding enough cheap energy to run huge, powerful computer plants that create and trade cryptocurrencies.

A Bitcoin mining plant in downtown New York has implemented a solution that has upset environmental movements.

Namely, the plant uses its own thermal power plant! Greenidge Generation has restarted a power plant that was once closed and conserved due to excessive environmental pollution.

Now the power plant on the shores of Lake Seneca produces about 44MW to run 15,300 computer servers as well as additional electricity it sends to the state electricity grid.

The megawatts used for Bitcoin mining and trading could power more than 35,000 homes! Proponents of cryptocurrencies call this venture a competitive way of mining cryptocurrencies without using the existing electricity grid.

Environmentalists express fear of revived fossil fuel power plants that emit greenhouse gases primarily for the purpose of making a private profit and not for the sake of achieving the public good.

Considering Greenidge a “test balloon”, environmental movements are asking the state to disable the operation of such thermal power plants in order to protect air quality and prevent similar projects.

Warnings of excessive pollution of the Earth’s atmosphere are coming from various directions, while the effects of global warming are becoming more noticeable.

According to published data, Greenidge mined 729 Bitcoin coins in the last three months, using 58 percent of the produced electricity for mining.

It was also clearly emphasized that the power plant regularly supplied the state network for electricity transmission, which was highlighted as a contribution to the energy system of the state.

Additional pollution of the human environment by reusing already discarded technologies is justified by encouraging the development of the region by introducing new cryptocurrency technology.

A new crisis may come, like the one in 2008: The culprit will be the cryptocurrency

Cryptocurrencies have no real value and regularly record extremely large fluctuations, which threatens the stability of financial markets

the governor said.

The deputy governor of the British central bank believes that cryptocurrencies if they are not subject to stricter regulations, can cause a global financial crisis like the one from 2008.

Sir Jon Cunliffe, the deputy governor of the Bank of England, stated that the value of the crypto-market increased from 16 billion dollars to 2.3 trillion in just five years, as it is worth today.

It reminds him of the growth of the value of the mortgage loan market, which in 2008, before its collapse, amounted to 1.2 billion dollars.

When the value of anything in the financial system grows so fast, and that growth takes place in an unregulated space, the financial authorities have to deal with it.

he said.

Cunliffe believes that the cryptocurrency market should be legally regulated, but he points out that this should not be exaggerated either, so as not to discourage the introduction of innovations in the financial sector.

He believes that the technology on which cryptocurrencies are based has a lot to offer, but it should be used with caution.

In his opinion, and in the opinion of the Governor of the Bank of England, who has already mentioned it several times, cryptocurrencies have no real value and regularly record extremely large fluctuations, which endangers the stability of financial markets all over the world.

Cunliffe reminds that their value can be affected by even one statement of a billionaire, like Elon Musk, or the decision of one country to declare them illegal, which represents a great risk for investors.

If they remained only in the digital world, then cryptocurrencies would not pose a great danger to the financial system, he believes.

But now they are intertwined with the traditional business of banks and other economic organizations. Also, more and more institutional investors are entering this field.

And every field where large sums of money are circulating needs to be regulated and supervised, says the deputy governor.

El Salvador, paying for airline tickets with Bitcoin

Low-cost airline Volaris announced that it will enable the payment of airline tickets with Bitcoin in El Salvador.

“Volaris” will thus become the first company in the world that enables passengers to pay for tickets for flights in digital currency, said the president of that country, Najib Bukele.

The company stated that it is working on enabling clients in El Salvador, which has adopted Bitcoin as a legal tender, to pay for services in digital currency at the airport.