Category: Bitcoin

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Australia Bitcoin Data Scams

Australians Lost $26 Million in Bitcoin to Scams in 2020, Report Shows

A new report from the Australian Competition and Consumer Commission (ACCC) published on June 7, 2021, shows scammers are now commonly receiving money from victims via crypto.

Bank transfer remained the most common payment method used in scams, with just over $97 million lost (a 40 percent increase). Bitcoin was the second-highest payment method, with $26.5 million lost.

Targeting Scams Report (page 14)

The Targeting Scams Report reveals that Australians lost over $850 million to scams in 2020. The figure is based on combined data from Scamwatch, ReportCyber, government agencies, banks, and payment platforms.

Targeting Scams Report (Page 19)

According to the report, it’s not surprising non-traditional payment methods are seen as ideal pickings by scammers. It states: “The perceived anonymity of unregulated cryptocurrencies can impede the ability to recover funds or identify scammers.”

Scammers Take Advantage of Rising Interest in Crypto 

Scams resulting in the highest losses in 2020 included investment scams, romance scams, and business email compromises. 

Many scammers used the COVID-19 pandemic as a ruse to separate people from their hard-earned cash. But Bitcoin and other cryptocurrencies were also a popular way to lure victims via various types of scams. 

As financial analyst Martin North has previously warned crypto enthusiasts, the increasing value of crypto also brings out more ‘bad actors’ seeking naive investors.

Report Findings Explained

Scams relating to Bitcoin feature in multiple case studies included in the ACCC report, including:

  • Investment scams: Featuring sophisticated fake trading sites. ACCC says it’s increasingly difficult for people to identify legitimate investment opportunities – this type of scam resulted in record losses of $328 million in 2020.  
  • Celebrity endorsements: Where images of public figures such as TV host David “Kochie” Koch promote fake websites and trading bots. For instance, Dick Smith’s likeness was used to defraud would-be cryptocurrency investors via ads on The Guardian website. 
  • Romance baiting scams: Striking up a connection via dating apps and then convincing the target to invest money, often in cryptocurrency. ACCC’s report found that people aged 25-34 lost the most money ($7.3 million) to romance baiting in 2020. 
  • Government impersonation scams: Where the scammer contacts a victim over the phone claiming to be from a government agency investigating fraud, and demanding victims deposit money via a Bitcoin ATM.

Bitcoin investment scams were also one of the most common types of scams reported that occurred on social media sites, according to the report, which shows losses to social networking scams increased more than 22 percent in 2020.  

Other scams Crypto News Australia has reported on previously that investors should be wary of include fake invoice scams that targeted Tesla buyers, and dusting attacks – where very small amounts of crypto are added to a person’s wallet in an attempt to de-anonymise it.

If you spot a scam you can report it at www.scamwatch.gov.au.

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Bitcoin Crypto News Hackers

BTC Wasn’t Hacked; the FBI Just Seized Control of the Bitcoins via the Server

FBI

Following a ransomware attack last month, US investigators have seized close to 64 Bitcoin valued at approximately A$2.73 million. Bitcoin’s price dropped by almost 10 percent on the news and commentators were left speculating as to how this might have occurred. Some claimed the Bitcoin wallet was hacked, but this was not the case.

How It Was Reported

Mainstream commentators and cryptosceptics were vocal from the outset, some implying that Bitcoins could be seized by law enforcement agencies at will:

Bitcoin Community’s Response

The Bitcoin community, in characteristic fashion, fired back promptly with a barrage of tweets, some charitable and others less so:

What Really Happened

In the end, it was Blockstream CEO Adam Back who offered a considered response to help clear things up:

Bitcoin commentator Marty Bent, however, remained somewhat suspicious:

How could these attackers be smart enough to take down a vital piece of energy infrastructure but too dumb to run their own full node with a connected xpub associated with a dedicated device?

https://tftc.io/martys-bent/issue-1008/

While we may never know all the details as to how the Bitcoins were recovered, Bitcoiners were quick to point out that the episode proved how unsuitable Bitcoin is for illicit activity.

As to how this may occur, respected BTC developer Matt Odell offered a neat summary:

Related reading:

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Australia Bitcoin Crypto News Data

Australia Makes List of Top 20 Bitcoin Gains by Country for 2020

A report tracking dollar gains for 2020 shows that Australia is ranked among the top 20 countries that made gains from Bitcoin last year.

According to the report by Chainalysis, 2020 was a massive year for institutional investors, pushing up the price to new all-time highs. For example, the US made over three times more gains on its investments than China, which placed second in the list.

2020 Bitcoin Gains by Country [Chainalysis]

The data was calculated from US dollars gains and shows US-centred exchanges with huge inflows towards the end of 2020, which could be a factor accounting for the country’s large gains, placing it in top spot.

Australia Places 19th Position

Australia’s favourable outlook on cryptocurrency may be one of the reasons it placed so high on the chart. Australians seem to be excited about Bitcoin, with one poll showing a quarter of employees would accept their remuneration in BTC if possible.

Not only did Binance Australia break records recently, but the government has stated it will not stand in the way of cryptocurrency development in the country. Jane Hume, an Australian Senator and Minister for Superannuation, Financial Services and the Digital Economy, said that people and organisations needed to make their own decisions regarding crypto as long as they follow the law.

Small Countries, Big Gains

Various countries are investing a lot more in Bitcoin relative to traditional economic metrics such as gross domestic product (GDP). Vietnam is one of those countries, with a GDP of $262 billion and categorised as a lower-middle-income country by the World Bank. Yet it has a high level of basic cryptocurrency adoption, ranking 13th in Bitcoin investment gains at $351 million, outperforming countries that rank higher in GDP including Australia, Saudi Arabia and Belgium.

Other countries that displayed a similar phenomenon:

  • The Czech Republic ranks 54th in GDP at $251 billion but is 18th in realised Bitcoin investment gains at $281 million
  • Turkey ranks 25th in GDP at $761 billion but 16th in realised Bitcoin investment gains at $300 million
  • Spain ranks 19th in GDP at $1.4 trillion but 9th in realised Bitcoin gains at $554 million.

We also recently saw El Salvador become the first country to adopt Bitcoin as legal tender. Big plays like this could really factor in the Bitcoin gains list for 2021; could we see other countries challenge the US for top spot?

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Bitcoin Institutions Investing

Hedge Fund Billionaire Marc Lasry Laments Not Buying Enough Bitcoin

Marc Lasry, a famous American hedge fund manager and co-owner of the NBA’s Milwaukee Bucks basketball team, has regretted not buying enough Bitcoin (BTC) in the past few years.

In an interview on CNBC’s Squawk Box, Lasry said he was surprised by how fast BTC surged in price over recent months, mainly due to institutional demand and widespread adoption.

I think the probability, as more and more people start using Bitcoin, is that it’s going to keep going up. It’s happened a lot quicker than I thought it would. I should have bought a lot more. That was my mistake.

Marc Lasry

This isn’t the first time Lasry regrets not buying BTC. In July 2018, he told CNBC he lamented not buying Bitcoin when it was valued at US$300, also predicting a price target of US$40,000 and that mainstream adoption would expand the cryptocurrency to better markets.

The reason I like Bitcoin is because it’s the one everybody is going to come to.

Marc Lasry

Going Down or Up, Bitcoin is Here to Stay

When asked about the current market status for BTC, Lasry said there are strong arguments for both sides, bearish or bullish. He maintains relatively bullish on Bitcoin. Whether it goes down to US$20,000 or up to $100,000 the market is “already here”, he said, adding it’s unlikely to go to zero.

I honestly don’t know where it is going to go but you’ve got that market, it’s there. I could make you an argument it could go to $100,000. I could make you an argument it could go to $20,000.

Marc Lasry

Lasry is a co-founder and CEO of Avenue Capital Group, a global investment firm founded in 1995. He has been a crypto advocate since he first heard about Bitcoin, making an undisclosed investment in the crypto hedge fund BlockTower Capital a few months ago.

We also saw in recent news that Ray Dalio claims that he owns some Bitcoin, as the list of large investors in cryptocurrencies continues to grow.

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Bitcoin Bitcoin Mining Crypto News

Dorsey’s Square and Blockstream To Build Solar-Powered Bitcoin Mine

Square, the digital payment firm, is partnering up with prominent Bitcoin and blockchain technology firm Blockstream to construct an open-source, solar-powered Bitcoin mining facility in the US.

According to an article released by Blockstream, the facility will be built at one of its mining sites. Blockstream will be providing the infrastructure and expertise to manage the project, while Square will be making a US$5 million investment.

Why is this mine so special? There are other mines that operate on renewable energy or offset their carbon emissions by buying carbon credits.

The difference is this mine will be open-source and aims to be completely transparent from construction to economics. The facility will be a proof-of-concept for a 100 percent renewable energy Bitcoin mine at scale, with the economics of the build-out – including operational costs and ROI – revealed to the public.

We hope that the open and transparent nature of the project will become a model that other businesses can learn from […] We’re hoping to demonstrate that a renewable mining facility in the real world is not only possible but also empirically prove that Bitcoin accelerates the world toward a sustainable future

Chris Cook, Chief Information Officer and head of mining, Blockstream

Two Birds With One Stone For Square

The new initiative is also part of Square’s pledge to make its Bitcoin activity carbon-neutral by 2030. Under that commitment Square has promised to fund Bitcoin projects that reduce its carbon footprint. 

The bonus is that while Square is busy sustainably mining Bitcoin, its researchers will be able to document the process as a case study for future use. “We’re thrilled to partner with Blockstream to provide an open-source working model for our combined thesis that Bitcoin can further accelerate the renewable energy transition,” said Neil Jorgensen, Global ESG Lead at Square, Inc.

The project will serve as an ongoing, transparent case study that will allow us to all learn together the specific unit economics of clean-energy Bitcoin mining. We can’t wait to start sharing our results with the community.

Neil Jorgensen, Global ESG Lead at Square

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Bitcoin Cryptocurrencies Investing

Public Company Sold Bitcoin For $1 Billion In Profit, Just Before The Crash

Ruffer – an investment management firm headquartered in London – recently made over US$1.1 billion in profits trading Bitcoin.

Perfect Timing

The investment was made late last year when the cryptocurrency started slowly climbing past the 10k mark. The original investment worth $600 million proved its worth quickly – and Ruffer sold some for a $750 million profit in December and January.

According to Hamish Baillie, an investment director at the firm, the company took a hands-on approach, actively watching market trends in order to predict the best times to sell.

When the price doubled we took some profits for our clients in December and early January. We actively managed the position and by the time we sold the last tranche in April the total profit was slightly more than $1.1 billion.

Hamish Baille, Ruffer investment director

Considering a correction similar to the one happening now also took place in December and January, it seems Ruffer’s analysis was spot-on.

Bitcoin price AUD

However, the company correctly predicted that the price would continue to rise. Reported to have had one of the largest Bitcoin portfolios among institutional investors, Ruffer sold everything just before Bitcoin veered onto a correction course in May.

According to Baillie, the decision to invest in Bitcoin was founded on the fact that many young people were staying at home and focusing on investing – which Baillie reportedly believes is one of the main factors driving the skyrocketing price of cryptocurrencies.

The decision to cash out also coincides with the end of heavy lockdowns – or in some countries, the end of lockdowns altogether. As a result, many young people are returning to the office, which could mean cryptocurrency trading websites see less activity.

Future Crypto Investments Not Off The Table For Ruffer

However, Baillie says that although Ruffer has exited the crypto market, for now, future investments in cryptocurrencies by his firm are definitely not off the table. For now, the profits have been invested in inflation-linked gilts – which are government-issued bonds that rise according to the retail price index.

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Bitcoin Cryptocurrencies

Crypto Currency Basics Overview

This guide will give you a basic overview of all the main aspects of the cryptocurrency space including Bitcoin and Blockchain technology.

What is a crypto coin?

  1. A virtual currency that is native to its own blockchain.
  2. Only a limited number of coins exist
  3. Used for transactions within its own blockchain.

Bitcoin, the original cryptocurrency, is the best example of a cryptocurrency coin. It exists as a unit of value on its own independent ledger.

Thousands of other cryptocurrencies exist including Litecoin, Ethereum and Ripple – all of which have different value propositions. Read more about Cryptocurencies.

Bitcoin (BTC) a unit of value ?

Bitcoin is seen as a store of value because it is a finite resource. The source code was released in 2008 by satoshi nakamoto, the creator of bitcoin, stipulates that no more than 21 million BTC can be “mined”. To-date 19 million have been. The closer “miners” get to 21 million, the longer it takes to create each new coin. This is known as “inelastic supply” meaning its supply is locked and does not change based on supply and demand. Read more about Bitcoin.

What is blockchain?

Blockchain is the technology followed by many cryptocurrencies to verify that a payee is the legitimate owner of the coin. It does this by keeping a ledger of each coins movements when being passed to a new owner. Each transaction is approved ensuring that movements meet the networks protocols. Read more about Blockchain.

BTC Decentralised System

Like the Australian dollar (USD), sterling and other currencies Bitcoin is a fiat currency, meaning it has no intrinsic value and its price moves in relation to supply and demand.

Unlike paper currencies, which are monitored  by the worlds central banks to certify their authenticity BTC relies on a decentralised system of digital signatures and digital coins where all transactions are kept on the blockchain.

The system relies on miners, a collective of independent individuals who volunteer their own computing power (nodes) to monitor, review and approve transactions.

Being outside the current financial system and being limited to 21 million BTC means it cannot be debased by central bank policies or debt-fuelled spending by governments.

Some thoughts on the future of BTC

  1. Recently some major corporations have invested in BTC thus adding to its credibility. The demand from this sector has also pushed up the BTC price.
  2. If BTC became more widely accepted as a payments system this would also add to its credibility. For this activity to expand BTC will need smaller denominations to be readily available to facilitate everyday purchases. Just as there are 100 cents in each dollar so there are 100 million satoshis in each BTC. If Statoshis’ were to become more widely held and were priced in the marketplace this would enhance BTC’s position as a means of exchange.

As an example of how BTC is entering the payments space, Paypal has unveiled a feature called “checkout with crypto” in a bid to gain traction in this space. This feature allows customers to convert their crypto-currency holdings seamlessly into fiat currency at the checkout.

How to participate in the cryptocurrency space?

Owning Bitcoin

Like owning any asset, the owner is speculating, that in the future, the price of the item will rise.

You may wish to own a cryptocurrency for several reasons:

  1. Hold it as a source of wealth for the long term.
  2. Use it as a method of payment.
  3. Trade the item on an exchange for short term profit/loss.

If you decide to enter this space you should be aware of the following:

  1. Cryptocurrencies are highly volatile instruments that are subject to unpredictable swings in their price.it is difficult to determine or predict the exact causes of this volatility.
  2. It may be advisable to invest in several cryptocurrencies to spread your risk.
  3. It may be advisable to have a risk management strategy in place before you invest.
  4. Remember BTC is priced in us dollars (USD). When you buy and sell in Australian dollars (AUD) you are exposing yourself to currency exchange risk.
  5. Ensure that you deal with an established exchange, as they hold your asset on your behalf. See our Australian Exchanges Comparison Table to find one that meets your needs.
  6. Most financial advisers advise that owners commit only a small portion of their portfolio (say 2-3%) to cryptocurrencies.
  7. You must understand the tax implications of your transactions – See our Australian Bitcoin and cryptocurrency Tax Guide.

If you decide to go ahead the following may be helpful:

NamePurposeValue Proposition
Bitcoin (BTC)A store of valueLimited to 21 million BTC & held on a decentralized ledger.
Ethereum (ETH)Its key feature is enabling smart contractsETH is not a currency. Its blockchain network allows other developers to build applications using its features.
Ripple (XRP)Designed to make processing real-time international transactions easierPayments do not require clearance or real-time international centralized counter-party approval.
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Bitcoin Blockchain Cryptocurrencies

Top 5 Funny Moments At The Bitcoin 2021 Conference In Miami

Bitcoin Conference 2021 – held in Miami, Florida on June 4-5 to discuss Bitcoin – had its share of funny moments, which were as usual more like Miami Zoo than Miami conference.

Here are some of this year’s highlights!

#1 Max Keiser Had A Message For Musk

Following a couple of tweets that Elon contributed to the falling price of Bitcoin, many fans of Bitcoin weren’t all that happy about his antics.

Max Keiser started his session with Michael Saylor with a heartfelt and explicit message to Elon.

#2 Dogecoin Fan Storms The Stage

One of the fans of the cryptocurrency Dogecoin took the opportunity to create some mayhem, storming the stage to shed his business suit to reveal a danceworthy doge outfit.

Twitter user @maxotg, whose bio has been updated to “Yes I’m the Dogecoin dude”, took the responsibility – or credit, depending how you look at it – for the stunt.

#3 Floyd Mayweather Shills His Coin – EthereumMax

EthereumMax (EMAX) is a relatively small Ethereum-based cryptocurrency that sponsored Floyd Mayweather in his June 6 fight against YouTuber and boxer Logan Paul, since described in at least one report as “the easiest $150 million ever made”. Although it’s unknown whether the terms of Mayweather’s contract included showing up at the conference wearing a shirt promoting EMAX, he did – after which he changed into a shirt spruiking his own jewellery business.

#4 Dumpster Diving and Bolivar Baths

Venezuela has been blighted by hyperinflation for five years now, which has led many Venezuelans to adopt cryptocurrencies as hedges against it.

Cake Wallet, an open-source crypto wallet popular among Monero users, took the opportunity for a publicity stunt involving dumpster bins full of Venezuelan Bolivars.

The marketing campaign seems to have worked, judging by the number of fresh profile pics among attendees of this year’s conference.

Although the next crypto conference may go relatively smoothly, stunts such as these are no rare event at these gatherings – so stay tuned for the next round of pranks.

#5 Funny Moments At Other Conferences

For this last one let’s take a look at some of the other crypto conferences’ funny moments.

Carlos Matos and the legendary Bitconnect Conference

EDCON 2019 – Vitalik and Ethereum Foundation dance and rap

Hope you had a laugh, we certainly did!

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Bitcoin Crypto News Regulation Worldwide

El Salvador Becomes The First Country To Adopt Bitcoin As Legal Tender

Bitcoiners have long speculated as to which country would be first. Few would have suspected that it would be El Salvador, a small Central American country with a population of 6.4 million and GDP roughly equivalent to Polkadot’s market cap of approximately US$25 billion.

The news came on Saturday at the Bitcoin 2021 conference as Nayib Bukele, President of El Salvador, announced via prerecorded video that he would be submitting a bill to Congress that would effectively treat Bitcoin as legal tender. Bukele also showed support of Bitcoin by updating his Twitter profile image with laser eyes.

Nayib Bukele, President of El Salvador
Nayib Bukele, President of El Salvador

Although not officially law as of yet, given that Bukele enjoys a supermajority in Congress, it is expected that the bill should pass with little difficulty. Bukele cited financial inclusion to the bankless and job creation as part of the bill’s motivation. With the US dollar as his nation’s currency, he went further in saying:

 Central banks are increasingly taking actions that may cause harm to the economic stability of El Salvador. In order to mitigate the negative impact from central banks, it becomes necessary to authorise the circulation of a digital currency with a supply that cannot be controlled by any central bank and is only altered in accord with objective and calculable criteria.

El Salvador to Use Bitcoin Lightning Payments

Jack Mallers, CEO of Zap and Strike, a payments app built on Bitcoin’s Lightning Network, noted that he would be working with the president to implement a plan to help provide relief to the 70 percent of the population who don’t have access to banks. Going further into Bitcoin’s benefits within the context of international remittances, Mallers noted:

Over 6 billion dollars a year are transmitted in remittances and a big chunk of those money transfers are currently lost to intermediaries. We want to make cross-border payments free and solve the remittance problem for places that need it the most.

Jack Mallers, CEO Zap and Strike

If passed, the bill would result in El Salvador becoming the first country to adopt Bitcoin as legal tender and the first government to hold it as a reserve asset.

The inflation rate in Argentina rose to 42.6% recently; could we see it follow suit?

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Bitcoin Crypto News Cryptocurrency Tax

Libertarian Ron Paul Says “Bitcoin Should Be Legalised As Money”

Ron Paul, former US Congressman and Libertarian Party candidate for the 1988 US presidency, has put forward a strong case that Bitcoin should not be regulated.

In an interview last week with Michelle Makori of Kitco News, Paul told how supporters of one of his three presidential nominations designed a coin bearing his image called “the Ron Paul Dollar”.

They got into big trouble. They could not use the word ‘dollar’ as it encroached on the [US] government’s monopoly control of money.

Ron Paul

Referring to popular wisdom that Bitcoin will inevitably replace the US dollar, Paul expects the greenback to survive. “It’ll still be around, though it won’t be worth much,” he said.

Legal tender laws force you to use legal tender, so [the US government] won’t allow you to replace the dollar with cryptocurrency. There will be laws against that, but I want to legalise it.

Ron Paul

Ron Paul Interview

With Bitcoin facing regulatory pressures in countries such as China, investors worry that similar limitations will be placed on cryptocurrency in the US.

“Right now, if you buy and sell gold, it’s subject to tax,” Paul said. “If you make a profit in Bitcoin, you read stories about people getting taxed on it. You can’t tax money … If you bought a dollar a year ago and it went down 10 percent, you can’t take a loss because your dollar lost value.”

Governments will always try to suppress alternative currencies, Paul noted, but he said the free market ultimately should be allowed to decide. “I will argue more the case for legalisation of freedom of choice,” he said. “The people should make the decision, not the government.”