BlockchainFlash

Latest news and thoughts on Bitcoin and cryptocurrency

Author: BCF

After the information about inflation in the USA, the fall in prices on the cryptocurrency market

Most cryptocurrencies are declining today.

According to the website Coingecko, the market capitalization decreased by 1.98 percent and amounts to 2.98 trillion dollars.

Bitcoin, which has reached its maximum value several times in the past few days, has fallen below $65,000 today.

It fell by 3.0 percent compared to yesterday, and it is currently traded at a price of 64,918 dollars.

Ethereum has lost 1.2 percent of its value and is currently trading at $4,672.

The fall in prices on the cryptocurrency market followed yesterday when the US Department of Labor announced that inflation, measured by the growth of consumer prices, jumped to 6.2 percent in October compared to the same month in 2020, to the highest level since December 1990.

After a few days of dormancy, the price of Bitcoin jumped again

The cryptocurrency market has seen a strong rise in prices in the last 24 hours.

The market capitalization has climbed 4.3 percent and currently stands at $3.01 trillion.

Bitcoin, the most famous cryptocurrency in the world, has increased its value by 6.6 percent in the last 24 hours and is currently traded at a price of 65,990 dollars.

Ethereum increased its value by 4% in the same period and is currently traded at a price of 4,741 dollars.

The bank predicts a huge jump in the price of Bitcoin

The largest American bank, JPMorgan, predicts that Bitcoin could jump to 146,000 dollars in the long run, if volatility subsides and institutions start to prefer Bitcoin more than gold in their portfolios.

That is approximately 130 percent more than the current price of Bitcoin, Business Insider writes.

JP Morgan also believes that Bitcoin, which is also a rare product, is increasingly gaining gold for investors’ attention as protection against inflation, ie as something that will grow even when inflation destroys the value of other assets.

The re-emergence of inflation concerns among investors during September and October 2021 seems to have renewed interest in using Bitcoin as protection against inflation

said JP Morgan strategist Nikolaos Panigirtzoglou.

They discovered a Bitcoin scammer, pretending to be Elon Musk

Despite Facebook’s efforts to prevent the verification of suspicious popular accounts, the social network misses malicious content from time to time.

According to The Verge, the social network mistakenly verified the Facebook page for Elon Musk’s fans and characterized it as Musk’s official account.

In addition, it turned out that the site was run by a fraudster in the sphere of Bitcoin.

The site had more than 150,000 followers by the time the activity ceased.

In the meantime, it has been confirmed that this is not the official page of Elon Musk, but a page for fans.

The people who ran the site are stationed in Egypt.

While it was active, the site posted 11 posts, most of which were retweets by Musk from Twitter.

Among the announcements is a fake prize game for Bitcoin.

It is interesting that the page was created on July 28, 2019, and in the meantime, it has changed several names.

The name change to Elon Musk was made on October 17 this year.

Facebook’s verification process requires account holders to provide proof of their identity, but fraudsters often manage to find ways to circumvent official procedures.

Bitcoin has touched new records

Cryptocurrencies marked October, and Bitcoin broke new records.

October was not only marked by new stock market records but was also marked by Bitcoin.

The most popular cryptocurrency entered the month at levels below $44,000, and last night it was worth a good $61,000.

This is an increase of almost 40%, which would have been even higher if the record(on October 20, BTC reached 67 thousand dollars) had not been accompanied by a downward correction.

The crypto market is looking forward to new records, mostly due to the start of the listing of the ETF fund ProShares Bitcoin Strategy(which trades futures on Bitcoin) on the world’s largest stock exchange in New York(NYSE).

The ETF offers investors who do not want to open their cryptocurrency accounts exposure to Bitcoins or terms traded on the Chicago Mercantile Exchange CME.

The second-largest cryptocurrency, Ether, also experienced high(almost 50 percent) growth in October, reaching a record $4,455 on Friday.

On Wednesday, the Ethereum network received an upgrade called Altair, which is another important step for the final launch of the Ethereum 2.0 network, which will(probably next year) be based on the PoS mechanism(Proof-of-Stake) instead of the PoW mechanism (Proof-of-Work), which means that users will confirm transactions according to the number of coins they own.

Currently, transactions are confirmed by miners who are competing(just like in the Bitcoin chain) to be the first to solve complex mathematical cryptographic equations, which, however, provokes considerable criticism due to high energy consumption.

Switching from the PoW model to the PoS model would reduce the environmental footprint by as much as 99 percent!

In August 2020 Buyed Shiba Coins For $3,400: They are now worth $1.55 billion!

The owner of one crypto wallet had a flair for investment when he invested $3,400 in Shiba Inu(SHIB) coins last year. Today he is a billionaire.

In addition to the mentioned investment, the person who owns the mentioned crypto-wallet had other transactions when it comes to SHIB coins with a total investment of about 12,000 dollars.

The smart investment grew, and the owner did not sell SHIB coins, which are worth about 5.63 billion dollars today. Yes – billions.

How mature is the market?

One of the questions that arise is whether the cryptocurrency market could receive such a large amount of Shiba Inu coins, because the total market capitalization of Shiba Inu coins is a little less than 40 billion dollars, and this wallet contains one-seventh of all coins in circulation.

At the time of purchase, the user exchanged $3,400 in wETH(Wrapped Ethereum) coins for Shiba coins.

To remind, Shiba was created after the Dogecoin cryptocurrency as a meme coin, with no real use-value.

Let us remind you, the price of a coin meme depends exclusively on its popularity, and not on some real application, as is the case with Bitcoin and Ethereum cryptocurrencies.

Meme popularity

The first big jump, Shiba Inu cryptocurrency had when Elon Musk showed off his Shiba Inu dog, to have huge growth after that.

Shortly after the presentation, the founder of Shiba Inu coins sent half of the total number of coins to the co-founder of the Ethereum Foundation, Vitalik Buterin, who, after forwarding part of the money to charities, “burned” the rest (90%), sending it to a dead blockchain address.

Vitalik justified this decision by stating that he did not want to have control of that scale in his hands and that it was, therefore, better to give it up.

She jumped over DOGE

According to the latest state of affairs, SHIB has definitely overtaken DOGE when it comes to market value, and is now in 9th place, right ahead of its biggest competition.

Exchange offices and NFT

There are at least two reasons why the SHIB coin has a growth trend.

One of the most important factors is certainly the listing of Shiba Inu cryptocurrency on large exchange offices in the last few months.

Add to that the fact that one of the largest providers of cryptocurrency payments – NOWPayments has added SHIB coins to the list of supported, and here are additional reasons to increase the demand, and thus the price of SHIB coins.

The Shiba Inu development team has launched its line of NFTs called Shiboshi, which means another aspect of the demand for 10,000 NFTs that users pay for with SHIB coins.

When you combine these two factors, the growth of Shiba coins seems completely justified.

And the reason more that it is wise to invest in cryptocurrencies early and resist that urge to sell them as soon as the first growth starts.

Squid Game Cryptocurrency Grown 300,000% in a Few Days

Unlike the TV series, the company behind Squid Game cryptocurrency says online tournaments are not dangerous for players.

Cryptocurrencies that emerge as a result of something popular, such as the Korean TV series that has become a global phenomenon, are very often very popular with early investors.

For example, if you only had a Squid Game token (SQUID) worth only $1 four days ago, you could exchange it for $3,000 this morning.

The price of SQUID coins was 1.2 cents, or 0.012 dollars, on October 27, and its value this morning(October 31) reached an incredible 35 dollars, which is a jump of almost 300,000%.

The great growth of this cryptocurrency started on October 28 and will continue on October 29 and 30. to reach $35, the value at which it is now sold.

On the other hand, SQUID is still not listed at any major exchange office, and many of them have stated that the SQUID token has not passed the verification process and that you need to be careful when investing, as there is a high probability that it is a fraud.

Such a large growth has not been noticed in the crypto world for a long time, so the craze for SQUID coins has become the number one topic overnight.

Play to Earn

Instead of the classic cryptocurrency digging system, Squid Game tokens can be bought or earned by playing online games in which you get tokens as a reward, which can then be exchanged at exchange offices for other cryptocurrencies or money.

The huge jump in the price of the SQUID token is most likely due to the fact that the start of the first online tournament is scheduled for November 1, which is tomorrow, so an additional jump is expected when earning money in the tournament.

To participate in the tournament, you need to invest SQUID tokens, so it is not surprising that due to high demand, the price of tokens jumped sharply.

The more people participate, the bigger the prize pool will be, according to the SQUID token manifesto, adding that 10% of the investment will be sent to the development team’s wallet, while 90% will be added to the prize pool for the tournament winner.

As in the series, there can be only one tournament winner, but, according to the company behind the SQUID cryptocurrency, unlike the series, other players will stay alive.

As in the series, the tournament starts with 456 participants, and five games from the series are played: red light – green light, needle shape cutting, tug of war, marbles, skipping boards, and Squid Game.

How to buy SQUID

The SQUID token can be purchased at decentralized cryptocurrencies such as SushiSwap or Pancakeswap, but before that, you need to buy another cryptocurrency at a large exchange to replace SQUID.

For example, go to Binance or CEX, buy Bitcoin, Ethereum, BNB, or some other coin in the value you want to buy SQUID tokens.

Create a new wallet on Trust Wallet or MetaMask, and then transfer the purchased cryptocurrencies to it.

After that, you need to connect that wallet with one of the above-mentioned exchange offices (SushiSwap or PancakeSwap) and exchange the cryptocurrencies you have there for Squid tokens.

Too good to be true?

Although the SQUID token grew tremendously in just a few days, a large number of users reported a problem with selling their tokens because they could not sell them and exchange them for other cryptocurrencies.

Several things point to the problem: the manifesto is full of grammatical errors, the team that develops this token is completely unknown in the crypto-community, and the official website says that Elon Musk supports this cryptocurrency, which turned out to be incorrect.

Pump and dump

The large rise in the price of these tokens may also be the result of new investments by initial investors who want to protect their investments and prevent the classic “pump and dump” tactics, very popular with new cryptocurrencies.

While we can’t tell you to buy a SQUID token or not to buy it, know that no one has ever gotten rich in the crypto world by playing it safe and that the riskiest cryptocurrencies always bring astronomical profits, but also the same losses.

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 Autograph.io, 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.

Autograph.io 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.

Crypto-promotion

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.