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Producer Of Physical "Casascius" Bitcoins Is Being Targeted By The Feds

Tyler Durden's picture





 

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Meet Mike Caldwell. He is the maker of what seems to be the most popular physical bitcoins on the market, the Casascius coin. All Mr. Caldwell does is have people who want the coins produced send him a certain quantity of bitcoin and then for a $50 fee he puts the private key on a physical coin and sends them back. For this horrible crime of ingenuity and creativity, the U.S. government naturally, has decided to target him. Because they are too busy ignoring the real financial crimes happening out out there…

 

Screen Shot 2013-12-12 at 12.54.04 PM

From Wired:

Mike Caldwell spent years turning digital currency into physical coins. That may sound like a paradox. But it’s true. He takes bitcoins — the world’s most popular digital currency — and then he mints them here in the physical world. If you added up all the bitcoins Caldwell has minted on behalf of his customers, they would be worth about $82 million.

 

Basically, these physical bitcoins are novelty items. But by moving the digital currency into the physical realm, he also prevents hackers from stealing the stuff via an online attack. Or at least he did. His run as the premiere bitcoin minter may be at an end. Caldwell has been put on notice by the feds.

 

Just before Thanksgiving, he says, he received a letter from the Financial Crimes Enforcement Network, or FINCEN, the arm of the Treasury Department that dictates how the nation’s anti-money-laundering and financial crime regulations are interpreted. According to FINCEN, Caldwell needs to rethink his business. “They considered my activity to be money transmitting,” Caldwell says. And if you want to transmit money, you must first jump through a lot of state and federal regulatory hoops Caldwell hasn’t jumped through.

But HSBC launders billions for Mexican drug cartels and they can continue their operations no problem.

Caldwell doesn’t accept U.S. dollars or any type of fiat currency. You send him bitcoins via the internet, and he sends you back metal coins via the U.S. Postal Service. To spend bitcoins, you need a secret digital key — a string of numbers and letters — and when Caldwell makes the coins, he hides this key behind a tamper-resistant strip.

 

So long as you can keep your Casascius bitcoins safe, nobody can learn the key. To date, Caldwell has minted nearly 90,000 bitcoins in various denominations. That’s worth about $82 million at today’s exchange rate.

 

Because he runs a bitcoin-only business, Caldwell says there’s no Casascius bank account for authorities to seize. But he adds that he has no desire to anger the feds, whether he agrees with them or not. So he’s cranking out his last few orders and talking to his lawyer. He says this may spell the end of Casascius coins. “It’s possible. I haven’t come to a final conclusion,” he says.

What a complete and total joke this government is. Don’t they have anything better to do?

Full article here.

 


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Thu, 12/12/2013 - 23:45 | Link to Comment robilla
robilla's picture

Heeeey there

Edit: that's to you Mr. NSA

Thu, 12/12/2013 - 23:51 | Link to Comment fonestar
fonestar's picture

Sweet!

I get to watch the Fed shadow boxing Satoshi! 

Fri, 12/13/2013 - 00:02 | Link to Comment ElvisDog
ElvisDog's picture

Did you know about FINCEN before reading this article, fonstar? I sure as hell did not, but it was out there waiting to go into action. And before you start your usual "No one cares about the U.S. or its laws" rant, I'm sure there is a Canadian, or Euro, or wherever you call home equivalent to FINCEN. 

As to the conclusion of this article, "why doesn't the U.S. go after money laundering banks instead of little bitcoiners", in the words of the late, great George Carlin, "It's a big fucking club, and you ain't in it"

Fri, 12/13/2013 - 00:20 | Link to Comment TheHound73
TheHound73's picture

Lol, FINCEN's been on Bitcoin's ass for a long time.  They are why it is so difficult to purchase bitcoins for 'Mericans who haven't gotten the fuck out already.

Fri, 12/13/2013 - 00:49 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

With creativity you can buy BTC for CA$H, a topic I am looking into...

Fri, 12/13/2013 - 01:02 | Link to Comment Handyman
Handyman's picture

Hey...you got BitCoin in my Precious Metal.....no, you got Precious Metal in my BitCoin.....

 

mmmmmmmmm....

 

Is it the next great, yummy treat???

Fri, 12/13/2013 - 02:08 | Link to Comment Dear Infinity
Dear Infinity's picture

Empress Yellen? She's wearing a toga and rocking out to Dancing Queen while Timmy lubricates the printing press.

So it goes...

Fri, 12/13/2013 - 02:20 | Link to Comment zaphod
zaphod's picture

This just shows how if Bitcoin was anything other than a decentralized protocol that the FEDs would have shut it down a long time ago.

If they have someone to go after, the bullies in DC go after them. These types of actions are simply harassment by DC and not based on any proven law. 

But bitcoin is proving to be bigger than the FEDs and larger than what they can control, so instead of going after Bitcoin they're just rolling over and accepting it. 

Fri, 12/13/2013 - 03:17 | Link to Comment Manthong
Manthong's picture

I am not into Bitcoin..

but I am considering some just because it pisses them off.

Fri, 12/13/2013 - 04:11 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Angry state will make it example of Bitcoin advocate... How dare to replace fiat currency for limited fix token of value!

Fri, 12/13/2013 - 07:14 | Link to Comment negative rates
negative rates's picture

I'll provide some cover,  that way he'll miss his boss trying to screw over the middle class and maybe lose his job or more over it. He's been askin for it real bad for quite a while now, and I can't wait to get it to him. 

Fri, 12/13/2013 - 07:23 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Angry state will make it example of Bitcoin advocate

 

I'm just wondering what took them so long?

 

I am considering some just because it pisses them off.

 

Well yeah.....there is that. Throw me a double-dog dare....you know I'll do it.

Fri, 12/13/2013 - 07:54 | Link to Comment nmewn
nmewn's picture

Kinda with ya on that.

Outside of it being a genuinely stupid idea of him having access to hundreds if not thousands of keys...it is just a novelty item not meant to be spent or compete against.

They may have just tipped their hand on what next step they're going to take.

Fri, 12/13/2013 - 08:48 | Link to Comment TeamDepends
TeamDepends's picture

Depopulation?

Fri, 12/13/2013 - 09:15 | Link to Comment nmewn
nmewn's picture

lol...when we are just digits in the cloud, no one will hear us scream ;-)

Fri, 12/13/2013 - 09:50 | Link to Comment Race Car Driver
Race Car Driver's picture

What would Kurtzweil say?

Fri, 12/13/2013 - 08:53 | Link to Comment kralizec
kralizec's picture

Indeed, Boris.  Makes one want to rush out a get a few of these coins just out of pure undiluted spite!

Fri, 12/13/2013 - 03:23 | Link to Comment palmdetroit
palmdetroit's picture

Bitcoin Is up 5% today but the fun is in the alts.. 80% in 24h on PHS (priced in BTC) maybe just multipy those or something , fiat what?

https://www.cryptsy.com/markets/view/86

Fri, 12/13/2013 - 04:43 | Link to Comment palmdetroit
palmdetroit's picture

A down vote? 3 days and 250% ago I posted BTFD on PHS now wait a day and BTFATH.

Fri, 12/13/2013 - 07:18 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

3 days and 250% ago

 

What's that in doggy years?

Fri, 12/13/2013 - 08:00 | Link to Comment nmewn
nmewn's picture

"Money" and/or "currency" shouldn't fluctuate 250% in three days...it is unusable as a medium in that state.

Fri, 12/13/2013 - 09:29 | Link to Comment fiftybagger
fiftybagger's picture

Thanks for the tip.  I'll keep my eye on that one.  Right now I'm all in on DGC and IXC. 

BTW, SXC sexcoin made a nearly 100 fold move.  People paying for adult items anonymously.  Nah, I can't see any demand for that.

The Bitcoin Channel

Fri, 12/13/2013 - 03:24 | Link to Comment palmdetroit
palmdetroit's picture

I think these physical coins might appreciate quite well in the future.

Fri, 12/13/2013 - 01:48 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

@ElvisDog

You are correct, by having a physical presence and a business that had physical items, it was just a matter of time. The perception can't be that someone has the freedom to do what they want. And that is what should be focused on here. Regardless if it was BTC or Gold, or Silver. You are a citizen, and they come in and say you can't.

That is a bunch of complete fucking bullshit, whether you bank in bits, lose them in a boat accident, or quietly stack on the side.

 

Fri, 12/13/2013 - 04:34 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

27 June 2013 MtGox BTC exchange registers with imperialist agency

http://www.coindesk.com/mt-gox-registers-with-fincen-as-a-money-services...

 

23 August 2013 MtGox BTC exchange and its customers have funds seized by other imperialist agency

http://techcrunch.com/2013/08/23/feds-seize-another-2-1-million-from-mt-...

 

Why?

“root out illegal activity.”

 

And BTC keeps rising. 

The empires days are numbered. I hope!

Fri, 12/13/2013 - 10:05 | Link to Comment Pseudonymous
Pseudonymous's picture

You are probably just numb scared, but you come out as one of the fascists you probably fear so much. Your words sound as an advertisement for the big club, the one that wouldn't even exist if it wasn't for people acting like you do right now.

Wake up, or go ahead towards your own ruin. I don't have any preference one way or the other. Just whichever comes sooner.

Fri, 12/13/2013 - 00:22 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I am still trying to get up to speed on BTC.  I got the following link from "Bitcoin Insider" that allows ANYONE to go and make a SHA-256 hashed out put from an input.  It's FUN, check it out!

TRY, just try, to get an output starting with 14 "zeros" (how you get a solution by "mining").  I believe THIS is part of the math (looks pretty secure to me) behind Bitcoin.

http://www.xorbin.com/tools/sha256-hash-calculator

An example.  This input: 111006pagameputaz141003

Yields this output:

0cb03ee037b2139b6b3c58160c9bb1dd6ba6e1b11d965df4d2427be6e6f5faa5 

Note output has ONE zero at the start.

Fri, 12/13/2013 - 00:34 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

+1

Dude,

Im really impressed.

First you pioneer an AU purchase with BTC.

Now your schooling people on SHA256 (the deciding factor in whether ZHers "get it" or not.

 

 

Way to school me in how to reach out to others. i'm humbled.

Fri, 12/13/2013 - 00:41 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Then you'll like THIS article that had the above link that B.I. also sent me:

 

http://www.reddit.com/r/Bitcoin/comments/18q2jx/eli5_bitcoin_mining_xpost_in_eli5/

Enjoy!  It's pretty easy, all things considered, smile,,,,,

 

EDIT:

I'll feel better when I get the gold I ordered...  

"Pioneers are the guys who get the arrows in the back."

-- an old saying

 

Fri, 12/13/2013 - 00:46 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

Can you also explain to us all what ECDSA and RIPEMD160 are?

Those are the other two forms of encryption used within bitcoin.

:)

Fri, 12/13/2013 - 00:46 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Ahh, nope!  Beginning Bitcoiner Bearing...

Soon I will ask B.I. for other information though.

Fri, 12/13/2013 - 01:28 | Link to Comment zaphod
zaphod's picture

ECDSA (Elliptic Curve Digital Signature Algorithm) is the cryptography that is used to prove ownership of individual bitcoins. 

In ECDSA there are 2 keys, a public key and a private key. Basically an address is the public key and the private key is what you keep secret, essentially posession of the private key equals posession of a bitcoin. 

The way transactions work is you create a public/private key pair and then provide the public key (actually the hash of the public) as the address to "recieve" bitcoins. When someone sends you a bitcoin they create a transation that specifies your address (public key) as the receiver of X bitcoins. Once that transaction is recognized by the network, the only way to release those bitcoins in your address is to sign them with your private key. Now when you want to send the bitcoin you recieved, you use your private key to create a unique signature on the previously recieved coins. The way ECDSA works is anyone with the public key (your address) can verify that the signature is correct, however the only way to create the signature requires the private key. 

This is a great walkthrough of ECDSA if you are interested in the concept. Will take a few hours to absorb the concepts/math.

http://kakaroto.homelinux.net/2012/01/how-the-ecdsa-algorithm-works/

Fri, 12/13/2013 - 01:48 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Thanks mucho, zaphod!

It looks very hard, but I will take a look at the document.  There may be similar articles that (maybe?) explain it easier, even if not quite correctly or fully.

"Quick and dirty" sometimes works out OK for Bearings.  Not usually, but sometimes...

Fri, 12/13/2013 - 02:37 | Link to Comment zaphod
zaphod's picture

Hashing such as SHA256 is a relatively simple concept, a hash generates a unique random value for any given set of data, and for the mining process you keep generating random hashes until you find one below a given difficulty. You don't really have to understand how SHA256 works underneth to understand what it does.

The ECDSA signing process is more compicated and you really have to learn a few concepts to "see" how it works. The article above only summarizes the math concepts absolutely needed and is about as high level as you can get without parts looking like a black box.

Don't worry, if you are interested and take your time, you can understand it in a few hours max.  I was able to teach it to my wife, and she can barely add....

Fri, 12/13/2013 - 02:39 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Zero Hedge members "zaphod" and "Prisoners_dilemna"!  

You both contributed to my blog article, which because most of it is mathematical in nature (although mostly not that hard) I decided to finish with brief descriptions of the above two methods (ECDSA and RIPEMD160) you discuss/mention.

My thanks to you both, and of course, "Bitcoin Insider".

"Fun With Bitcoin for Beginners: Part Four"

http://tinyurl.com/lq667xz

Fri, 12/13/2013 - 03:39 | Link to Comment fourZero
fourZero's picture

Check that link out in Safari on an ipad. You have to scroll down hundreds of pages to see the content.

Fri, 12/13/2013 - 04:56 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

The section on RipeMD160 is pretty... non-existant, so anything I say here has gotta be an improvement  :)

All of this was taken from bitcoin.it, stackexchange.com, and wikipedia.org.

A bitcoin public address (what we provide to others so they can pay us BTC) is in fact the hash of an ECDSA public key, computed this way:

Version = 1 byte of 0 (zero); on the test network, this is 1 byte of 111
 Key hash = Version concatenated with RIPEMD-160(SHA-256(public key))
 Checksum = 1st 4 bytes of SHA-256(SHA-256(Key hash))
 Bitcoin Address = Base58Encode(Key hash concatenated with Checksum)

Here's the same thing in step-wise fashion;

0 - Having a private ECDSA key

18E14A7B6A307F426A94F8114701E7C8E774E7F9A47E2C2035DB29A206321725

1 - Take the corresponding public key generated with it (65 bytes, 1 byte 0x04, 32 bytes corresponding to X coordinate, 32 bytes corresponding to Y coordinate)

0450863AD64A87AE8A2FE83C1AF1A8403CB53F53E486D8511DAD8A04887E5B23522CD470243453A299FA9E77237716103ABC11A1DF38855ED6F2EE187E9C582BA6

2 - Perform SHA-256 hashing on the public key

600FFE422B4E00731A59557A5CCA46CC183944191006324A447BDB2D98D4B408

3 - Perform RIPEMD-160 hashing on the result of SHA-256

010966776006953D5567439E5E39F86A0D273BEE

4 - Add version byte in front of RIPEMD-160 hash (0x00 for Main Network)

00010966776006953D5567439E5E39F86A0D273BEE

5 - Perform SHA-256 hash on the extended RIPEMD-160 result

445C7A8007A93D8733188288BB320A8FE2DEBD2AE1B47F0F50BC10BAE845C094

6 - Perform SHA-256 hash on the result of the previous SHA-256 hash

D61967F63C7DD183914A4AE452C9F6AD5D462CE3D277798075B107615C1A8A30

7 - Take the first 4 bytes of the second SHA-256 hash. This is the address checksum

D61967F6

8 - Add the 4 checksum bytes from point 7 at the end of extended RIPEMD-160 hash from point 4. This is the 25-byte binary Bitcoin Address.

00010966776006953D5567439E5E39F86A0D273BEED61967F6

9 - Convert the result from a byte string into a base58 string using Base58Check encoding. This is the most commonly used Bitcoin Address format

16UwLL9Risc3QfPqBUvKofHmBQ7wMtjvM

 

Now in order to unlock the public address above to get the private keys (and spending rights to the BTC), we just need to do these steps in reverse. Eezy Peezy. I'll be back in 4 centuries when humanity figures out how to do that.

 

So we see RIPEMD160 used ONLY to generate public addresses. Nowhere else is it used within the BTC protocol.

Why is it used there and only there?

"It is worth noting that Satoshi could've used SHA2-256 twice and truncated the second digest to 160 bits. The fact that he didn't I think is some evidence to show that Satoshi's decision was a conscious decision to use RIPEMD-160 over the NSA suit of algorithms." username liamzebedee from stackexchange.com

I tried reaching out to Satoshi for an answer but I had even less luck with that than I have trying to find private keys from public addresses.

I can only speculate and so here it is courtesy of wikipedia;

" RIPEMD-160 was designed in the open academic community, in contrast to the NSA designed SHA-1 and SHA-2 algorithms."

also

"RIPEMD-160 is not known to be constrained by any patents."

My conclusion/opinion is that should SHA256 be broken or have a backdoor, RIPEMD160 would protect private keys while developers swapped out SHA256 for SHA512, or another open source method of encryption.

Finally,  Satoshi could've written the protocol such that the ECDSA public key doubles as the public address for receiving BTC. However hopefully it is apparent now that while it is nearly impossible to derive an ECDSA private key from its public counterpart, its IMPOSSIBLE^GOOGLEPLEX to derive the ECDSA private key from the completely jumbled hash that we know as the BTC public receiving address.

Fri, 12/13/2013 - 09:37 | Link to Comment fiftybagger
fiftybagger's picture

People waking up and seeing the elegant mathematical beauty of Bitcoin and the sheer genius of Satoshi.  It's a better feeling than getting rich.

The Bitcoin Channel

Fri, 12/13/2013 - 03:13 | Link to Comment GoldMeUp
GoldMeUp's picture

14 zeros.. that's a 1 in 2^56 chance, which is equivilent to cracking a DES cipher :)

 

Just some random trivia..

Fri, 12/13/2013 - 08:14 | Link to Comment sessinpo
sessinpo's picture

And simply confiscating and erasing the computers of those involved make all those codes: 0

Game over

Fri, 12/13/2013 - 16:38 | Link to Comment Scarlett
Scarlett's picture

you have to get them ALL.  Once surviving copy and the network is back on a flash.  A single copy.  One.

Fri, 12/13/2013 - 11:41 | Link to Comment Alfred
Alfred's picture

I'm having a hard time getting my mind around using BTC to buy gas or milk. Then there's the idea that governments (or 1%) could usurp our virtual currency for theirs, then lastly, and to your SHA256 point there is this from Karl Denninger...

http://market-ticker.org/akcs-www?post=226678

 

 

Fri, 12/13/2013 - 11:42 | Link to Comment Alfred
Alfred's picture

duh... too many clicks...

 

 

Fri, 12/13/2013 - 01:48 | Link to Comment xxxxx
xxxxx's picture

Looks like the FED won.

Fri, 12/13/2013 - 02:25 | Link to Comment TheHound73
TheHound73's picture

I'd love to see this one go to court.

Fri, 12/13/2013 - 07:31 | Link to Comment silvertrain
silvertrain's picture

 He just needs to take Bitcoin or another alternative for his services and NOT CASH, problem solved..

Fri, 12/13/2013 - 07:46 | Link to Comment TheHound73
TheHound73's picture

Looks like you didn't read the article:  

"Caldwell doesn’t accept U.S. dollars or any type of fiat currency...  he runs a bitcoin-only business,  there’s no Casascius bank account for authorities to seize."

Fri, 12/13/2013 - 04:23 | Link to Comment frenzic
frenzic's picture

I fought the law and the law won

http://www.youtube.com/watch?v=I0sI6eFarFE

Fri, 12/13/2013 - 09:42 | Link to Comment fiftybagger
Fri, 12/13/2013 - 08:37 | Link to Comment bitcoinbear
bitcoinbear's picture

Home of the brave and land of the FED. 

Fri, 12/13/2013 - 08:27 | Link to Comment putaipan
putaipan's picture

numismatic bitchez! i love to look at my lil' casascious 2011 series 2 purchased while btc was 12$ for 17$. sure people like 'errors', but 11000 of those originals were made. there are only 1000 of these.

 

p.s. anyone feelin' stupid lucky loaded in btc and wants to diversify into a numismatic investment let me know.

Fri, 12/13/2013 - 11:11 | Link to Comment One World Mafia
One World Mafia's picture

Obviously the Feds don't have a legal leg to stand on.  If he takes them to court it will be more good publicity for NSA bitcoin, making it look like the renegade currency that beat the Feds, drawing more people into the NSA designed and backdoored SHA-256 digital currency the US govt always wanted.

 

Thu, 12/12/2013 - 23:44 | Link to Comment Erudite Redneck
Thu, 12/12/2013 - 23:48 | Link to Comment robilla
robilla's picture

Oh Frannie... I miss thee calling me a cheese pope

Thu, 12/12/2013 - 23:57 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

francis never said anyting about burning jews........go back and read his comments or keep sucking banker-debt money cock

~~~

Fri, 12/13/2013 - 00:01 | Link to Comment Erudite Redneck
Erudite Redneck's picture

People keep asking for him, I am just letting people he has been found in Romania singing.

Fri, 12/13/2013 - 00:02 | Link to Comment kito
kito's picture

No Francis didn't advocate burning Jews, he just worked on building an argument that would ultimately lead to that.

Fri, 12/13/2013 - 00:02 | Link to Comment Erudite Redneck
Erudite Redneck's picture

Exactly.

Fri, 12/13/2013 - 04:36 | Link to Comment frenzic
frenzic's picture

Let's not talk about the elephant in the room. Francis is right. Referring to ovens does not change that.

Fri, 12/13/2013 - 09:17 | Link to Comment sleigher
sleigher's picture

Thank you, you summed that quite well.

Fri, 12/13/2013 - 09:21 | Link to Comment Sean7k
Sean7k's picture

No, what Francis did is identify zionist behaviors that have worked to enslave and torture all non jewish humanity. To think there might never be a backlash is pure propaganda. The jews are not innocent in any way whatsoever. If the jews had been willing to restrain their brethern's terrible methods, it may have not created the problems they suffered then or now. However, they want to profit and play the victim card- as they murder and enslave the whole world.

There are plenty of jews that just want to assimilate into society, but their zionist, talmudist, pharisee,sanhedrine, levitical masters continue to force them along. Well, sometimes there is a price for that. They are the most despicable people on earth. 

Francis may have taken some liberties that were callous or mean spirited, but plenty of others do just as much here, including the two of you. Yet, you are still allowed to comment. ZH policy is racist, like all media, probably because of their masters.

Fri, 12/13/2013 - 09:40 | Link to Comment Ghordius
Ghordius's picture

wrong on many levels

if Francis got indeed thrown out, then this means that his host thought he was a troublesome guest. this is a private space where the public is allowed in by the host. there is no "right" to be here, and as on all parties it's customary, civil and advisable not to trouble the host

if all Jews share a responsibility in restraining their fellow zionists of the worst kind (many shades of gray, there), then all Christians share a responsibility in restraining all Christian politicians, all Muslims share... etc. etc. question: where does this put you? I am Christian (Catholic), and I had very little way to stop the last Iraq war, for example

what do you mean by "plenty of jews that just want to assimilate into society" anyway?

ZH policy is dictated by the laws of the country where it's servers are hosted. I had a long, hard look at those laws and no, imo there is no racism whatsoever in them. granted, their understanding of free speech is different from the US, but so is the understanding of the whole rest of the world. what is the reason why ZH is not hosted in the US? Anyway, those laws allow you to say whatever you want - as long as it can't be construed as an incitement to violence towards a person or group. in short, it's about civility

Fri, 12/13/2013 - 09:58 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

pointing out asymmetries is not raycist, unless of course one is jewish

but lets settle it once and for all.....a complete audit of the fed going back to 1913..lets see who the owners are, who started it and how much wealth has been stolen from the American people........if no jews are involved, we can finally end the discussion

 

Fri, 12/13/2013 - 10:17 | Link to Comment Sean7k
Sean7k's picture

No, your wrong on every level, just like usual.

Francis was no more troublesome than anyone else, but he ran afoul of Switzeland's racist policy of protecting one religious minority over all others. I never expressed anything about rights, merely equal treatment. Save your propaganda tricks for morons like yourself.

I never said jews had a responsibility, I said if they had moderated this behavior by not going along, they may not have suffered any consequences. Your ignorance of internal jewish policy towards their own is beyond the pale. If you are going to comment, take the time to do the study. However, all groups have this resonsibilty to rein in the actions of their leaders if they don't want to suffer consequences. Where does it put me? I learned long ago that religions are just another form of totalitarian control attempting to manage your afterlife. If you haven't figured this out, if you can remain catholic (I was raised one), then you are without conscience(child molestation, homosexuality of priests, the vatican bank, the crusades, etc.)

I meant what I said about assimilation, but Talmudist law has other requirements. Like I said, do the study. 

Thank goodness YOU don't think there is racism, I am very relieved now. The idea that zionist bankers created a law to protect themselves above all other races had me thinking otherwise. Francis merely spoke the truth, no matter how it hurt. You can keep your civility, when a special group attempts to enslave and impoverish every other human, they will never see me lift a finger in their defense. Voltaire was quite lucid when he wrote about power being held by those a government doesn't allow you to criticize.

Now Ghordius, go defend your masters to someone else, someone more ignorant and pliable.

Fri, 12/13/2013 - 10:34 | Link to Comment Ghordius
Ghordius's picture

"moron" is not an argument. you see? I told you the issue is civility

 you wrote "I never said jews had a responsibility". yet you wrote before

"If the jews had been willing to restrain their brethern's terrible methods, it may have not created the problems they suffered then or now". willing is a good word, and dissimilar from responsibility, I admit. yet your point is based on that if they would have been willing, they would have succeeded in restraining their faith brethen. do you believe that?

no, I still don't honestly understand what you mean by assimilation

you are talking about a law. did you study it? did you research on the country that legislated it?

I fully agree on Voltaire. I do criticize certain kinds of Zionists, btw. In fact, I can't visit certain countries, being declared "persona non grata", having made some very public statements which were not of everybody's liking. but I don't critizice JEWS for being JEWS. I find this very, very uncivilized

the people you rail against should not be mixed with innocents by faith association. and you can turn your argument in any way, you are accusing Jews for not having done something they should have done, in your opinion. up to a point you can do this with a nation, if it has a state, but not with an entire civilization/faith. again, what has your civilization/faith done lately? and no, if you don't belong to any, then it's not an argument

be assured that I'm the master of myself, in the very ancient Roman stoic fashion

Fri, 12/13/2013 - 11:32 | Link to Comment Sean7k
Sean7k's picture

Of course Moron is not an argument, it is a designation for a zionist lackey. 

Yes, willing is a different word, meaning your attempt to use responsibility in its' place was "probably" intentional. Yes, they could have, but if you really knew the history of the Judahites, you would understand the difficulty, the reason the other twelve tribes were either assimilated or run off. Like I said, do the study.

Yes I did study the law. 

As for your zionist exploits, you have to excuse me if I refuse to believe you. As you SHOULD know, lying to gentiles is perfectly acceptable behavior for zionists and their ancestors. Further, I didn't criticize "jews for being jews", but for refusing to stand up to their psychopathic brethern. It is your style of argumentation that is uncivilzed. Twisting words and phrases to create confusion is just so typically.....zionist!

Based on your argument, then all those Nazi's should never had been punished, The Treaty of Versaile was an abomination, yes? All the jews have to do is refuse to be part, eliminate the Talmud and secret teachings and stick to the Torah, giving it precedence in their lives and actions, just as christians should give precedence to the teachings of Jesus, not the abomination of a church that followed or the Muslim Wahabis, etc.

I have no civilization because civilization is a perversity that kills and enslaves. No amount of charity can make up for the atrocities of the State and Religion. Your very actions to skip over the actions of your church are the perfect example of irresponsibility. 

Your delusions of personal mastery are the perfect embodiment of the title: moron.

Mon, 12/16/2013 - 04:53 | Link to Comment Ghordius
Ghordius's picture

"I didn't criticize "jews for being jews", but for refusing to stand up to their psychopathic brethern."

probably I should rest my case at this point and start to stand up to my psychopathic brethens, be them Catholics or Christians in general, Western, white, and so on. perhaps by joining a blog commenter crowd?

----

on a sidenote, I find interesting how deep my American Cousins are in "Jewish Culture", like the use of the word Gentiles, something I've never heard a Continental European utter. Gentiles is derived from Gens (latin, from the Greek Genos), and the Gentile ethos was built up on the core assumption that every genetic tribe (aka gens) has it's own religion, customs, etc. This later led to the Italian word gentile, which means corteous, polite

Fri, 12/13/2013 - 00:28 | Link to Comment Zero Point
Zero Point's picture

Dijda find da rizen Jayzussss?

Gimme a halelujah, Praise Jayzus, and blessuns on Zion.

Just send as much as you can bruthah, to this great man:

http://www.blog.standforisrael.org/wp-content/uploads/2011/11/Netanyahu-...

Bless him, fo' he is blessud of awlighty Gahd.

Thankfully, the US taxpaya wull richly sustain him.

Fri, 12/13/2013 - 02:19 | Link to Comment Deo vindice
Deo vindice's picture

What ever 'Jesus" you may be referring to, it isn't the one revealed in the Bible. Never did He preach a lifting up of national Israel, but rather the spiritual kingdom of His church, made up of Jew and Gentile alike.

It is sickening that so many who claim to speak in His name, just don't get it.

Fri, 12/13/2013 - 04:02 | Link to Comment Zero Point
Zero Point's picture

Fuck me. Did my spoofing of a southern tent revivalist not make the sarc clear?

Seriously, the sarc detectors on ZH are fucken broken, no shit.

Redneck is a zio Christian fuckbag piece of shit.

I was actually hoping the nitwit would rise to my bait, but given the ZH resistance to sarcasm, I guess he genuinely thought I was on his side.

 

Fri, 12/13/2013 - 04:29 | Link to Comment kodachrome
kodachrome's picture

You may want to check this out:

 

http://www.evilbible.com/

 

Actually give it a good browse. No, really.

Do.

It.

 

Thu, 12/12/2013 - 23:45 | Link to Comment TuesdayBen
TuesdayBen's picture

You say he is not well-connected?
CRUSH HIM.

Thu, 12/12/2013 - 23:47 | Link to Comment Seasmoke
Seasmoke's picture

Obama hates all Casascius.

Fri, 12/13/2013 - 00:43 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Obama does!  You must have gotten a bankster junk...

;-)

Fri, 12/13/2013 - 01:05 | Link to Comment Urban Roman
Urban Roman's picture

Even Casascius Clay?

Thu, 12/12/2013 - 23:51 | Link to Comment Dick Buttkiss
Dick Buttkiss's picture

"What a complete and total joke this government is. Don’t they have anything better to do?"

No, they're scared shitless.

Because of their Shitcoins, of course.

Thu, 12/12/2013 - 23:50 | Link to Comment Pancho Villa
Pancho Villa's picture

Let's hope Mr. Caldwell is honest and didn't keep his own personal record of the keys behind the strips.

Fri, 12/13/2013 - 00:35 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

In a free market, trust and reputation is everything.

His next venture will make him wealthy if he maintains this trust he's built so far.

Fri, 12/13/2013 - 19:28 | Link to Comment Pancho Villa
Pancho Villa's picture

Well, if he recorded all the information that he used when making the physical BTC, he's already worth $82M. Just sayin ...

Thu, 12/12/2013 - 23:52 | Link to Comment frankTHE COIN
frankTHE COIN's picture

Ok. Who ratted him out.

Thu, 12/12/2013 - 23:53 | Link to Comment disabledvet
disabledvet's picture

what happened to the 82 million? or perhaps more importantly "who happened to the 82 million"? I mean who cares if the price collapses if you can't get your real money back, right? next up: "real bullets from China for whoever/whatever happens to be in front of them" with Japan retorting "I'll be your huckleberry." I stand by my prediction that Kin Jung Un doesn't survive the weekend.

Fri, 12/13/2013 - 00:07 | Link to Comment ElvisDog
ElvisDog's picture

Val Kilmer should have won the best supporting actor Oscar for his Doc Holliday. "You'll be a daisy if you do".

Fri, 12/13/2013 - 04:20 | Link to Comment vulcanraven
vulcanraven's picture

In Vino Veritas

Fri, 12/13/2013 - 00:51 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

There was no 82M.

That's just the BTC equivalent in FRN's of the number of coins he minted.

He didn't accept FRN's.

Even the $50 was paid in BTC. It was just the equivalent of $50 in BTC at market price when orders were taken.

 

That seemed pretty clear to me in the article?!?

Thu, 12/12/2013 - 23:53 | Link to Comment Number 156
Number 156's picture

This is because bitcoin is being co-opted by the financial sector as a way out of the conundrum they find themselves in, and they are fighting for exclusive control.

Fri, 12/13/2013 - 00:38 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

Yes and No

yes they are trying to control it.

no BTC is not being co-opted. It can't be. That's the whole point.

 

Don't take my word for it though as I'm just a pimply millenial.

 

Fri, 12/13/2013 - 02:06 | Link to Comment Number 156
Number 156's picture

Now that's its taking off, They missed the boat and they want in, however, how do they even begin to gain control over it? Thats where the federal government gets involved.

Cant have too many players already in the game otherwise there will be no room left for them to get in.

As far as BTC as a currency, the fluctuations in price make it unsuitable as a currency IMHO.

Thu, 12/12/2013 - 23:54 | Link to Comment HomemadeLasagna
HomemadeLasagna's picture

If they consider what he does money transmitting, then that means they consider Bitcoin to be money, unlike the Chinese who now officially consider it a commodity.

Thu, 12/12/2013 - 23:58 | Link to Comment Number 156
Number 156's picture

Almost.

They consider it to be other peoples money.

Fri, 12/13/2013 - 11:35 | Link to Comment Deo vindice
Deo vindice's picture

Which means that ultimately they consider it to be theirs. One way or another.

Thu, 12/12/2013 - 23:55 | Link to Comment The Heart
The Heart's picture

Rotten-tic banktseronian says to minion babylonic military and al-CIA/FBI-duh intelligence agencies..."go...go kill bit coin and then co-opt it...how dare they create the digital track-n-trace-n-tax to control the world babylonian money god system before we did...gooooo...gurgle...barf...ralph...go take over botcoin."

Fri, 12/13/2013 - 00:02 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

BigCoin™ doesn't have these issues...

Fri, 12/13/2013 - 03:23 | Link to Comment TheHound73
TheHound73's picture

BTC up 10% since Fidelity backed out of their I.R.A.  Go figure, must be payday in China.

Fri, 12/13/2013 - 00:18 | Link to Comment Alternative
Alternative's picture

If only weren't for the Merkens. They fuck everything up, then gloat in some fat ass singing a song about the land of the free.

Fri, 12/13/2013 - 00:18 | Link to Comment stant
stant's picture

he could have avoided any confrontations by giving a obamacare towell with every purchase

Fri, 12/13/2013 - 04:04 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

All joking aside, you may be on to something.

Just make sure that whatever Item you're including is actually billed as THE item, and the BC is the Bonus. Otherwise you'll have a tough legal case, when the Item is argued to be the pretext.

The fact that the Buyer might see the value relationship to be reverse of what is officially billed, is the Escape Clause. According to several lawyers I've spoken to on this topic several weeks ago.

Point is, there IS a way to win on Principle or on Procedure, if you have a good lawyer with balls.

Fri, 12/13/2013 - 00:19 | Link to Comment Dr. Engali
Dr. Engali's picture

I find it interesting that they acknowledge the fact that bitcoin is money, but in their eyes gold is not.

Fri, 12/13/2013 - 00:32 | Link to Comment TheHound73
TheHound73's picture

Curious indeed. What paperwork is needed to open a bullion shop?  A Money Transmitter's License is not needed?  Notice the Mike Caldwell had zero contact with USD or banks with his business.  You send him BTC and he sends back physical BTC minus his fee.

Fri, 12/13/2013 - 00:54 | Link to Comment AmericasCicero
AmericasCicero's picture

maybe because they've already taken gold by the balls, doc.  That is, for now...

Fri, 12/13/2013 - 05:27 | Link to Comment ActionFive
ActionFive's picture

They don't want crypto to be something/just nothing.

Fri, 12/13/2013 - 00:22 | Link to Comment IridiumRebel
IridiumRebel's picture

Mustn't dig into their play. Heaven forbid a physical form! Yep, the Feds are either behind it or will shut it down sooner or later. Either way I'm not touching it.

Fri, 12/13/2013 - 00:36 | Link to Comment Alternative
Alternative's picture

And you call yourself a rebel?

Fri, 12/13/2013 - 00:53 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

Iridium knows that Caldwell is really a government plant.

It's all part of the plan to convince people to accept digital currencies and voluntarily put on the yoke of the Fed's next money.

Fri, 12/13/2013 - 01:01 | Link to Comment IridiumRebel
IridiumRebel's picture

He is no .gov plant. All of this has been put in motion by intelligent men long ago or will be ultimately commandeered by these evil Füx. It's a shit sandwich either way. I sincerely do not know. It's a gut feeling. I could be wrong. I hope I'm wrong and this is exactly what you believe it to be.

Fri, 12/13/2013 - 01:30 | Link to Comment IridiumRebel
IridiumRebel's picture

I don't hate BTC. I personally see it as a ruse. As for fighting da man I go old school. Good luck. You are talking about the most evil machine the world has ever known. If you think that they will just allow some cryptocurrency to take them on, you are delusional.

Fri, 12/13/2013 - 01:55 | Link to Comment xxxxx
xxxxx's picture

Interesting cast of characters up on the hill for the bitcoin hearing

The Chairman of the Senate Committee on Homeland Security and Governmental Affairs Tom Carper gathered a witness list for the hearing that went on for several hours that was a chain of people who reflect the new attitude within the Bureaucracy that lies beneath the surface. The list included:

  • The Homeland Security committee
  • Criminal Division of the US Attorney General’s Office
  • US Secret Service Criminal Investigative Division
  • The Financial Crimes Enforcement Network
  • The International Center for Missing & Exploited Children
Fri, 12/13/2013 - 00:40 | Link to Comment seek
seek's picture

Next step after this is going after miners themselves. They're bitcoin only as well. I wonder how they'll rationalize that.

Fri, 12/13/2013 - 00:48 | Link to Comment Alternative
Alternative's picture

They hate us because we are free

Fri, 12/13/2013 - 00:52 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Miners better get their machines fired up into overdrive then!

"Warp 9, Scotty..."

Fri, 12/13/2013 - 01:05 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

This is the current catch 22 which an astute reader took note of the other day.

It is rational to buy BTC outright rather than buy a mining rig at this point because BTC are so cheap relative to the hardware itself. And the mining hardware wont return as many BTC as one could buy today outright.

 

I don't know what price BTC needs to be at, but we better get to that price in a hurry so that the "better investment" is the mining equipment.

Otherwise our own human greed leaves us vulnerable to a 51% attack by a malicious actor with unlimited FRNs.

Then BTC would go to 0.

Although I think cryptocurrencies would still thrive and a new one would be devised.

BTC2.0

Fri, 12/13/2013 - 01:18 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

 

 

Two comments:

1)  I read a similar (or same) comment recently as well, that it would just be better for us non-tekkies to just buy BTC rather than attempt to mine them.  It looks like it is getting too hard to go up against the consortia now mining (server farms with 1000 ASIC computers...).

2)  I believe that the "51% attack" is not a real worry, IIRC, "Bitcoin Insider" explained why: so many young people, all over the world, are hard at work, 30 trillion attempts per second (worldwide) trying to find a solution, that NSA/the Fed/banksters/Valerie Jarrett (etc.) can't out process them...

NSA: boo!

the Fed: boo!

banksters: boo!

Valerie Jarrett:  Yikes!  Head for the hills!

Fri, 12/13/2013 - 02:00 | Link to Comment ILoveDebt
ILoveDebt's picture

I don't mine BTC, but I did along time ago.  Then, BTCGuild pushed up against 51% of the total hashing rate as a pool multiple times.  Now it isn't in their best interest to let it happen, as it would mean the end of their revenue because BTC would go to shit, but that doesn't mean a clever person couldn't take over and do something.  I have absolutely no idea how pools submit their shares, but I wonder if it would be possible to hack into the two major pools, and submit them as one pool and hit the magic 51%?  

As said, I don't even know if that could happen, but in either case, the mining pools collectively are like the board of directors for BTC.  It used to be about 5 of them controlled 90% of the hash rate.  I have no idea now.  

Fri, 12/13/2013 - 02:04 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

Yep I might've let my fear of the printing press get the best of me.  A 51% attack is highly unlikely and I think I read somewhere that BFL anyway said they would refuse to fill an order larger than X to any individual.

 

I checked over at en.bitcoin.it/wiki/weaknesses and 51% wasnt listed although at the bottom of the page if we click "double spending" we do see it at that page.

"

>50% attack

If the attacker controls more than half of the network hashrate, the previous attack has a probability of 100% to succeed. Since the attacker can generate blocks faster than the rest of the network, he can simply persevere with his private fork until it becomes longer than the branch built by the honest network, from whatever disadvantage.

No amount of confirmations can prevent this attack; however, waiting for confirmations does increase the aggregate resource cost of performing the attack, which could make it unprofitable or delay it long enough for the circumstances to change or slower-acting synchronization methods to kick in."

 

Key words in my mind there being "unprofitable".  Only one actor I'm aware of could care less and that's what I was trying to say above. With an unlimited printing press, unlimited funds, could a malicious actor acquire and run over 50% of the networks hash power?  Doubtful but hey...  TPTB have been know to do some pretty draastic stuff.

 

Just one thing I saw on the weaknesses page that just blows my mind every time I read it;

Generating tons of addresses

Generating an address doesn't touch the network at all. You'd only be wasting your CPU resources and disk space.

Also, a collision is highly unlikely.

Keys are 256 bit in length and are hashed in a 160 bit address.(2^160th power) Divide it by the world population and you have about 215,000,000,000,000,000,000,000,000,000,000,000,000 addresses per capita.(2.15 x 10^38)[1]

 

I could use over 10,000 per day for the rest of my life and still not have touched a fraction of unique address available to my private keys only.

Math  and large numbers are so friggen cool!

Fri, 12/13/2013 - 00:44 | Link to Comment vaft
vaft's picture

So, uhm... How's the case against Corzine going?

Fri, 12/13/2013 - 00:54 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 10^googleplex

Fri, 12/13/2013 - 00:47 | Link to Comment Zero Point
Zero Point's picture

Does this mean the movies I pirated are only illegal if I burn them to disk?

Whew.

Fri, 12/13/2013 - 00:50 | Link to Comment atomicwasted
atomicwasted's picture

I thought it would feel different to live in an authoritarian state than it does.  I feel helpless and angry, but somehow I thought it would be different.

Fri, 12/13/2013 - 01:00 | Link to Comment vegas
vegas's picture

If he only had named Jon Corzine CEO, everything would be fine.

 

http://vegasxau.blogspot.com

Fri, 12/13/2013 - 00:59 | Link to Comment Mad Mohel
Mad Mohel's picture

Mr. Caldwell forgot the cardinal rule of minting money. He's got a foreskin and no yarmulke. It's too late for his ass, but I hear it's nice in Cube this time of year.

Fri, 12/13/2013 - 04:25 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

He could always become Caldman (stage name) and change his attire, if he's serious about his biz. ;-)

Fri, 12/13/2013 - 01:03 | Link to Comment q99x2
q99x2's picture

Arrest Janet Yellen for treason.

Fri, 12/13/2013 - 01:28 | Link to Comment W74
W74's picture

Don't stop with just her.  Arrest all the Hasbara.

Fri, 12/13/2013 - 07:09 | Link to Comment geewhiz
geewhiz's picture

But she is just a sweet old lady, like Warren Buffet is a folksy old man. I'm sure it's totally harmless.

Fri, 12/13/2013 - 02:08 | Link to Comment BaaadSheep
BaaadSheep's picture

This is my next door neighbors brother. He's been at it for a long time and I hope he's able to continue

Fri, 12/13/2013 - 02:14 | Link to Comment Decimus Lunius ...
Decimus Lunius Luvenalis's picture

Considering the goverment is built primarily on: (1) maintaining its own supremacy; (2) keeping elected officials in office; (3) enriching elected officials in office; (4) enriching supporters that keep elected officials in office, and (5) steadily increasing wealth transfer from every tax payer to large contractors whether it be soft drinks or mortgage lenders; No, they don't have any fucking better thing to do than to run around and tell how busy they are, how smart they are, and say any other thing that make them feel important and justifies next year's budget increase because nothing says "I'm a winner" like getting a budget increase for the next fiscal year.

Fri, 12/13/2013 - 02:56 | Link to Comment savagegoose
savagegoose's picture

how do you get the bits off the coin into your wallet?

Fri, 12/13/2013 - 08:57 | Link to Comment putaipan
putaipan's picture

it's not such a dumb question.  as a holder of one, i've never followed the procedure all the way through because i don't want "redeem" the coin. i have a few 1/100 btc paper checks that i keep meaning to experiment with, but procrastination is a bitch and i am a troglodite when it comes to anythin digi-digi.

 

Fri, 12/13/2013 - 02:55 | Link to Comment mijev
mijev's picture

The majority of ZHers are Americans and most comments made are the result of being viewed through that prism. The average person in South America, china or Africa using bitcoins to send money to their relatives could give a fat flying fuck about the fed, fidelity, fincen, the US banks, whether or not it's an NSA plot etc. this shit's gonna turn interesting around mid next year when hardware wallets start to proliferate. The 3G/4g networks and even dedicated btc networks are going to be way more important than the public internet for btc traffic.

Fri, 12/13/2013 - 07:04 | Link to Comment geewhiz
geewhiz's picture

Amen to that from a non American. Plenty Americans are free spirited cowboys though, there is a chance they might wake up, sweep the who shitpile system into the toilet, and rebuild from the good elements of their constitution, and trim the statist elements that pollute the constitution out. Then they would become a true example of freedom. If they don't they will remain another European style indefinite zombocracy destined to remain Israels toilet.

Fri, 12/13/2013 - 03:07 | Link to Comment Martel
Martel's picture

I hope bitcoin grows HUGE. The U.S. won't have much to do with it, because of out-of-bounds agencies and legislation like FINCEN, FATCA etc. Even those names sound like from Orwell's "1984"; MINILUV, MINIPLENTY...

Fri, 12/13/2013 - 04:09 | Link to Comment q99x2
q99x2's picture

Cyprus moves to become the next world SuperPower as it considers adding a BitCoin exchange to its stock exchange.As well as BitCoin financial services.

Max Keiser 534

Fri, 12/13/2013 - 04:21 | Link to Comment BlackVoid
BlackVoid's picture

Many stupid people in the US, who do not realize they are living in a corporate fascist state.

 

Fri, 12/13/2013 - 04:34 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

All those BTC computers and servers... That sure is a LOT of computing power. Assuming that the SW is not getting altered at some point later (undetected by the user), to do others things also (number crunching, etc).

That's quite a Cloud. A free cloud to someone, that's for sure. Kinda reminiscent of the networked SETI days.

Fri, 12/13/2013 - 04:53 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

SW means software correct?

The software is constantly being updated and improved.

It's also open source.

Miners (read auditers) can choose which version of the software to run. They can even choose which transactions they include in the blocks they try to solve. For example the Eligius pool purposefully ignores transactions from repeat addresses.

They do this because the protocol was designed to be pseudoanonymous by never re-using an address.

Yet many people, for whatever reason, love to re-use addresses.

Theres also "merged mining" where the BTC blockchain is also used by Namecoin which allows for distributed ownership records of .bit domains.

So if you go to a .bit website (your browser might need some tweaking to get you there) you will find a website that is censorship resistant because there's no central point of failure. No domain registar to go harrass and have a website taken down. Or something like that.  I'm tired.

Fri, 12/13/2013 - 05:08 | Link to Comment 22winmag
22winmag's picture
The more you tighten your grip, Tarkin, the more Bitcoins will slip through your fingers.
Fri, 12/13/2013 - 06:47 | Link to Comment Quinvarius
Quinvarius's picture

The only "perception" that matters when they attempt to create a perception about bitcoin, gold, or anything else is the one that you believe they can convince others of. You are not convinced.  But you think they might convince others.  So you act.  But nothing can change reality.  You can only be tricked into making a short term mistake.  The reality will always rear its ugly head.  And the reason you were buying bitcoin or gold or whatever to get the hell away from these monsters will prove you were right all along.  No one cares what the government wants them to think and they certainly will not act on it when the rubber hits the road.

Fri, 12/13/2013 - 06:51 | Link to Comment geewhiz
geewhiz's picture

If you want to do anything related to creating and supporting real money you don't do it in the USSA. The poor country has become one giant confidence game wrapped in self delusion and hypocrisy. Not that many other countries are any better, its the hypocrisy that really makes it unbearable. Somehow a straight up crook is easier to take than a pretentious one.

Fri, 12/13/2013 - 08:36 | Link to Comment Downtoolong
Downtoolong's picture

“Counterfeiting is just like any other business these days. To survive you must first use regulatory capture and political power to eliminate the competition and create a barrier to new competition.”

Isn’t that right Janet?

You said it Ben.

Fri, 12/13/2013 - 09:07 | Link to Comment fiftybagger
Fri, 12/13/2013 - 09:30 | Link to Comment 1stepcloser
1stepcloser's picture

Liberty Dollar 2.0

Fri, 12/13/2013 - 10:04 | Link to Comment Typing Typer
Typing Typer's picture

Well I dug around on the Internet and this came up, seems it's easy to crack the code on these physical coins:

http://codinginmysleep.com/casascius-physical-bitcoins-cracked-at-defcon/

"...Anyone can do this with a few dollars and a trip to home depot and even checking the balance at the time of purchase offers little to no added security since an attacker could merely sweep the private key moments after selling off exploited coins...."

Maybe it's not such a great product and that has something to do with the oversight. Or else the Feds just want to stamp out Bitcoins. Could go either way!

Fri, 12/13/2013 - 16:48 | Link to Comment One World Mafia
One World Mafia's picture

That's probably it.  Otherwise it's a publicity stunt for bitcoin cause it doesn't make sense for the Feds to go after a novelty item.

Fri, 12/13/2013 - 10:50 | Link to Comment JoBob
JoBob's picture

Hmmm.  Any mention at all of Bitcoin seems to get a down arrow.

All generalities are false, including this one.

Fri, 12/13/2013 - 10:52 | Link to Comment The Abstraction...
The Abstraction of Justice's picture

All recursive statements are meanginless, except for this one.

Fri, 12/13/2013 - 11:54 | Link to Comment One World Mafia
One World Mafia's picture

Going after a novelty item...cheap publicity stunt by the Feds to make bitcoin look like it's a threat, and when the Feds lose in court bitcoin looks Fed proof.  The NSA designed its hash so by definition its backdoored - and designed bitcoin so it can't be replaced in a backwards compatible way.

"If I was a government, and had to design a hash, I would almost certainly want a back door in it. If I was a mathematician, and I had to put a back door in something, I would head straight to prime numbers. It's beautifully easy to use prime moduloarithmetic to "scramble" one number into some other number, in a way that cannot be reversed easily. It's even got a name: asymmetric cryptography. Of course, if you know the secret key, then you *can* reverse it: so there's your back door"

http://en.wikipedia.org/wiki/Talk:SHA-2

Fri, 12/13/2013 - 12:13 | Link to Comment proLiberty
proLiberty's picture

Replay of the arrest of e-Gold founder Douglas Jackson?

http://www.moneymakergroup.com/gold-Owner-Arrested-t214753.html

Fri, 12/13/2013 - 12:34 | Link to Comment ToNYC
ToNYC's picture

Drawn and Quartered is the usual penalty for fcuking with the king's treasury.

Sat, 12/14/2013 - 06:43 | Link to Comment Death By Cold S...
Death By Cold Steel Report's picture

The truth is this; and it isn't right; but STEP OUT OF LINE AND YOUR NEXT!

Do NOT follow this link or you will be banned from the site!