The Bitcoin Group #104 – Bitfinex Hacked, US Bitcoin Sale, Australia Bitcoin, MegaUpload2



the Bitcoin group the American original for over the last 10 seconds the sharpest Satoshi's the best bitcoins the hardest cryptocurrency talk we'd like to welcome our panelists Alex Turk from block talk greetings hello thanks for having me on for the first time do Goodman from Hass online good evening everyone Gabriel d-von from future rent hello Internet hello posterity tone days from liberty life trail hi everyone back in NYC and I'm Thomas Hunt from the world crypto network moving on to issue one issue one bitfenix hacked bitfenix was hacked this week for more than 72 million dollars in Bitcoin the funds disappeared in an instant despite the presence of a bit Co multi signature wallet which apparently was set to auto sign all transactions the companies respond to that hacked by socializing losses and giving all users at thirty-six percent haircut just a little off the top and repaying the rest of the debt with BF x coin a new debt instrument that they created out of thin air Alex Turk your thoughts on the bitcoin bit for next hack just business as usual in the Bitcoin space or something more well it seems to be a forest ico for their exchange you know i don't think anyone really appreciates that heaven having their chain p and now the third largest hack in the Bitcoin space this represents you know 125,000 bitcoins which is just after Silk Road and mount gosford that's some space um as for socializing the losses I think that was a major mistake and it might come back to them legally I think a lot of users who use an exchange actually probably keep more USD on the exchange this for the risks involved with having us do exchange are very low like we don't really hear a lot USD getting stolen from these exchanges and if you have set coin you can send it to and from the exchange quite quickly so why would you keep that on exchange so I socializing losses definitely makes up or I guess a really poor judgment on looking at all the decisions that have come after this parent hat we've seen that you know time are pretty much potter i guess i would see me to drunken rant the other day on whale club teamspeak i think it was you know that just goes to show the professionalism we've seen from bitfenix in the space it's really been a real struggle i have that kind of stain on the community and I I don't think it's going to turn out well for anyone involved this it is an unfortunate decision that they decided to socialize the losses especially taking the USD values as well I know Adolf Hitler in his recent video announced that he had lost USD that he just deposited on the exchange it's also quite an exciting ico right we've never had someone publicly say we got hacked and we're going to have an ico we have theories that car pelas may have had some kind of a mountain ico with the mount gox coins and all that but this is the first time it's been public Theo Goodman ok I think I'm going to address the BFX coin first because that's what we're just talking about and yeah okay that's I guess one way to describe it a forced IC oh that's that's ok but actually it's not as bad as you think because basically the idea is what would happen if everybody sued bit finax that lost money then it would take many years of litigation so I mean that they say what they tried to do would be to simulate that this would be the result now I don't know I have not I haven't really seen how they came up with thirty-six percent yet and all that kind of stuff and how they did it but that's the idea that idea is okay do you want to you litigate and get everything later so we see what's going on with Mount GOx you know people say oh maybe we're going to get my coins you've got like the Bitcoin builder situation and all that or do you want something now so cut my hair now or litigate and wait later that's the image that's that was basically the idea so okay that's that's that one thing but I guess to make it short I'm going to have to just go through few headlines just to give a little bit of history and so that we can learn from different signs of when there might be a problem okay so first of all is the the first meme is I don't trade on my exchange I just buy and sell at certain levels so that's the first thing if the someone works at the exchange and says that then you should there should be like a little alarm going off and say okay maybe there's something up there so that was too early 2015 already okay so then you have the failed alpha point integrations a alpha point coming soon that's the other thing it didn't quite work out you could go into what all that was and everything but basically that it they try to upgrade it didn't work then almost at the exact same date as this recent hack you had the so-called don't press close your position twice situation that was the so-called XT dump so what happened then was people were panicking trying to close a position at bitfenix and they were pressing close and it wasn't reacting in the user interface and they were actually opening Long's and shorts over and over again and they were getting margin called in all different kind of directions that was exactly almost exactly a year ago as a year to the date of the recent hack not to mention between that like I don't know mini hacks which they made people good and then recently the DDoS attack or they're just that guys sorry something's wrong we have to go offline a little and the price totally dumps and nobody can do anything with their coin their coins are basically trapped in bit for next that was only like a month before the hack so there's so many different things that happened um you know before this and you know we should all take a look at that and decide if it's worth it I think the other thing the other reason that a lot of people have money it had money a bit for Nexus because of the loaning which is called not quite it's not a swap it's margin funding it's called margin lending because it's h had to change the name and yeah that's the reason because it's you're getting you know really good rates for loaning out your USD or your coins and a lot of people had cone you know funds on there for that purpose so I don't know that's my opinion I think that the could be worse as far as I don't be effects coin I don't know how they haven't seen anything really clearly how they came up with a thirty-six percent and from what I can tell from what people have investigated but I don't know exactly seems like they have enough to cover the costs if they wanted to which is really weird it's probably easier to just print an altcoin Gabriel d-von i think it's it's very difficult to understand how in this day and age with so much thought around security in the crypto space and so much money being available to these businesses to create solutions that are reasonably secure so that you can head off at least large drainages you know i am never surprised when i hear oh you know one of our hot wallets got drained and we lost 11,000 or 2,600 bucks or even 30,000 or 40,000 that's terrible but it's it's understandable that you have to keep a certain amount online and at risk in order to run your business as an exchange but um the this auto signing thing with bit coat with bit go that you're talking about I read about that too and it's just absolutely shocking and I think that the price is really reflecting how the ecosystem is especially traders who aren't necessarily the most knowledgeable in the ecosystem but they're it's reflecting the amount of insecurity that traders feel when there's a hack of this size that the biggest Bitcoin exchange it really is a sign that the ecosystem has not matured to the level of being able to be trusted with tens of millions hundreds of millions in encrypted value probably uh you know so that it's not it's not like a given you know that that's a third party can can hold crypto assets relatively securely yet I mean it doesn't have to be with a hundred percent accuracy another thing is that really now exchanges are approaching the size of small mainstream banks and small mainstream banks also have you know security issues and wire fraud in huge giant banks have massive fraud money laundering that they get slaps on the wrist for because they're well connected so I think what we're seeing here is really a confluence of two processes one the security infrastructure around crypto assets maturing and the security infrastructure in general rapidly degrading in the force of just the prevalence of the internet and hacking so we've got two competing sort of trajectories here that are meeting in this hack I agree game it was shocking to hear about the auto signing of the bit go signatures and it's surprising that some of the best information and explainers of this hack come from Bruce wanker on bitfenix a great video where he talks about a theoretical way that the hacker could have dreamed the accounts obviously a humorous video and the hitler gets a haircut video where hitler gets very angry as always and what he's angry about is so simple why didn't they have withdrawal limits why does that alarm go off when someone withdraws two million dollars plus from your exchange everyone just sits there and lets it happen yes sir they had some kind of controls but from the outside looking at this and with no information because they have they've all lawyered up no one's talking those videos explain this hack very well yeah and you know it's it's as the resident conspiracy activist on the show it's incumbent upon me to note that this hack and the ease and quickness of it is so fishy and suspicious that it's a natural assumption to think that there might be some skulduggery behind the scenes disgruntled ex-employee at least if not inside job I mean it's very lucrative process to fake a heist and then issue a debt so that you're going to make that money so you make money twice basically so I'm not accusing them but I mean the possibility is very very you know real it is possible that this debt plan could have been sitting in a drawer just waiting for the right time or maybe they had a car pelas like melt a situation where they lost the private keys under the cat or something like that we don't know tone phase alright um I've commented on this issue a few times so I'm gonna make this real quick I this is why I've never traded on bitfenix I never trusted bid for next I always tell people anytime they asking about good forex I met a couple of different acts top people two years ago at some event I spoke to them and then I remember saying to myself oh my god these guys have no I what they're doing and I've been trying to warn people never to trade on bed phone acts and of course nobody listens because they're almost a gamble and I there's so many warning signs constantly being hacked but exchange always goes down look but but then again they're not that much worse than any other exchange in Bitcoin there's just no professionalism there is nobody that has ever has any real experience of running an exchange attempting to run an exchange ah maybe at like a man not even if it and I think like noble markets monopod but but no one's gonna trade there I mean these things are out of New York over-regulated MLK YC I you know over your head look it's very dangerous to trade Bitcoin you trade Bitcoin this is what's going to happen now I think them socializing the losses is terrible but they had no good options I had they been an anonymous exchange I btc-e and this wasn't an inside job they could they will probably just take the rest of the money and run and but they don't have that as an option again they're damned if they do and they damned if they don't I can speculate on this token which i think is very very silly obviously we all agree that socializing the losses is bad but I don't know what other solution they had my view on the token I don't know what they're thinking but there's a couple of possibilities especially these tokens are being traded I know they're being traded within bitfenix itself I don't think they're live traded on the open market but people can get around that a MLK by sea law I'm sure and just get these things traded so they're either hoping that uh to buy them back on the cheap so basically if the price and these tokens drops then maybe they will be able to just kind of buy them back and avoid some legal action also if they have you know some deals with some big whales you know if you buy up all these tokens and don't sue us will try and making good on this big debt you know someone with a lot of money that can wait you know 10 years though I don't think bid for next will last 10 years either Bitcoin will last that long or Bitcoin does then a professional exchange will actually give us something we're trading on I I mean it's just an amateur hour I go back to these videos like a year ago I refer to different axes amateur hour especially back a year ago last August when when when they had that terrible malfunction so that's it they'll be in court they'll be trying to prove a negative that they didn't steal the coins it was very stupid of how I bit go was just there as like you know the token third-party they weren't doing anything I'll briefly mention my solution to this you can't have simple cold storage because my own gods had cold storage and an insider can just leaked it or steal it you can't have all hot wallets I either you need multi sig and you need cold storage is the best of both worlds a user needs to have a key the exchange needs to have a key a third party like bit code needs to have a key I these do need to settle I personally would recommend a monthly settle I think the CFTC recommended something like that a monthly settle would be good so every month the coins come out of cold storage users traders sign off if a trader doesn't sign off then bit co gets involved and they sign off once a month all these coins move so that on that one day a user has control of all of his coins with their private key and then as long as he doesn't make another trade he can withdraw that Bitcoin out of cold storage the moment he makes a trade he has to wait till the end of the month for another saddle and everyone is trading the internal you know token you know Bitcoin whatever that it's irrelevant it can't be stolen because it's simply internal that's my solution through exchanges one of these days somebody will do it and you'll have a nice safe whatta balada nabol exchange of at any point in time I agree tone it is most likely gambling and gamblers using the exchange all for speculation as I hate to quote Adolphe Hitler but as he said in his recent video andreas always says if you don't hold the keys you don't hold the Bitcoin but i had to margin trade haha i'll make a lake i'll make one last comment real quick i as in what bitfenix should have done and i don't know if this would have helped them but in their terms of service they should have said you know they should have been very transparent about how they protect the bitcoins not the details of course but the in theory and they have a disclaimer you're trading them at your own risk and segregated account if you're the unlucky account that gets hacked for the bitcoin you you give up the right to sue us unless unless and then this is a nice little quote unless you bring evidence to court that you have proof that it was an insider that took the coins right a current bitfenix employee so they needed a disclaim know this disclaimer would have protected them but i don't understand how this doesn't open up to a lawsuit from someone that was holding USD it just makes no sense but we'll see how it does seem like a missing part of the contract not to pre-announce what you'll do if you have a loss a lot of the information I've seen said that the accounts were segregated and individual so people expected to take a loss if they were stolen from or to take no loss but then they switched it to this socialized losses model which ever way they're going to go they should have pre-announced and stuck with it by changing it willy-nilly it seems like a violation of the original contract I really lost next I can go on a lumen suspect why they did not they probably did it because they don't know whose money got stolen because they might have been segregated but I don't know if they were segregated by user divided and segregated into some kind of pools I mean the moment they don't know I'm guessing if they really were segregated I don't see why they wouldn't notify the users who actually got hacked and how much they got hacked for I'm assuming one hundred percent per user and you know present the list of users not necessarily you know to the public but notify the user himself you know publish a list of X number of users this is how many bitcoins each user had and but I don't think they're capable of doing that because I don't think they I am Not sure that they really were segregated but I'm just guessing I've no idea it is funny to think about how the losses were handed out if the hacker ran an A to Z script you would lose money if your names at the beginning of the alphabet would be fine at the end if he ran it by a count number chronologically older accounts would be robbed first we have no it's just a script that's running emptying all these accounts have no idea how it was run maybe it's more fair to socialize the losses but either way I think it should be announced beforehand that's a real potential issue for them moving on to the exit question exit question bitfenix is plan is solid and they will rebound after the hack yes or no Alex Turk gotten gotta unmute yourself pergola I think if they had any chance of succeeding they probably should have created a token for every asset they took it should then have the effects USD PFF you thur you know i'll use for everything will they rebound well i guess it kinda depends on Polonia ex listing them which they formerly denied it so it's probably apparently algo rebound the problem is you didn't create enough coins that wouldn't i totally agree if they would have made more coins they would recover faster but uh yeah i think that actually i think that they are going to rebound at least in the short term because i think it also hinges on if they can ever get their lending going if they're able to let if people are able to lend out and make money by lending on the margin positions then i think there rebound for sure lending bitcoin is always a dangerous game Gabriel d-von I have no idea I've been so surprised lately I've really been so surprised I've been surprised about things dying like this you know happening and I've been so surprised about things succeeding as well and I think what it is is temporary craziness and so I'm gonna say bit finnex is going to slowly die tone days I i honestly think they're done but I died I always underestimate the gamblers in the space III think they're done I think they're gonna lose volume to a bit stamp to btc-e I really think they're done I don't know how my I don't know how many lives they have feel like a cat did they have to be running out so I would usually say once your hacked you never go back but this clever plan with the altcoins I think they're going to survive that bitfenix lives oh my god the alt their altcoin might live longer than their exchange it's a clever idea I think we'll see it happen again issue two US government selling 1.6 million dollars in Bitcoin the government never seems to consider Bitcoin as money except when they're selling it the US Marshals Service announced recently they would be selling the Bitcoin seized from a Silk Road drug dealer dirty FBI agent Karl Marx forced the third and a man who created a site to sell stolen debit and credit card numbers Theo Goodman will this establish will that's yet another government auction help establish bitcoin is a legitimate currency or will it establish it once more is the currency of drug dealers corrupt cops and thieves both and that's why it's going to establish it more both things you said are true and both things or what's going to make it more establish can you repeat the name of this officer again is it something like force it's got it wrong actually you or you were wrongly accusing his father of crimes when the gentleman at stake is Carl mark force the fourth I think before I think the main I didn't believe that was a real name when I read it when the when the news came out because force and Karl Marx and the whole thing that's just an he's a cop it's just too weird I don't believe mrs. rione it has to be a CIA code name or something yeah i agree with that it always reminds me of the simpsons episode where homer changes his name and the judge says I will change your name to the only one of these that you spelled correctly max power Gabriel Devon I forgot the question what are we doing a Bitcoin and the government selling it does it make it more legitimate or more criminal yes very interesting um you know crime syndicates hold auctions all the time and uh maybe uh maybe we finally have a decent exchange tone vase would you buy some Bitcoin from the government haha I would not I don't think it makes it more or less legitimate I mean look we just talked about a 70 million dollar bitfenix hack and the government is selling 1.6 million I mean I'm glad that this is the only Bitcoin the government has I don't want the government to be holding Bitcoin the last the government knows about Bitcoin probably the better off everybody is what bothers me is that a Carl force they only confiscated 65 Bitcoin from him that sounds fishy to me I think he extorted way way more so governments Ellingham that's fine hope somebody buys them that you know it's going to hold on to them I yeah I kind of try to ignore our government in this case it's still unfortunate that silk road wasn't allowed to exist it was I think it was doing a lot of good in my opinion but we'll see hopefully we will get to see our break again and maybe 10-15 years wonder when drugs are legalized and maybe they'll go lenient on something like that I think going to take a presidential pardon to get him out of jail but if the climate keeps changing I could remember when gay marriage seemed impossible and marijuana legalization seemed impossible and money was not free speech but all of these things have changed yeah yeah yeah I was going to say that if you think that silk road was doing good then you should rejoice because online drug sales in the dark man have tripled since it closed I know that's why the price of Bitcoin has been pretty high I'm very happy about that Alex Turk good um yeah I think beaut well most governments already considered Bitcoin i think is illegitimate currency or some form of asset and the only way it could be more cemented that they were auctioning off something other than Bitcoin and so they were allowing people to pay for it a Bitcoin so you know they go so and so's mansions being auctioned off and oh yeah this guy's offering you know X amount of bitcoins for it so that would probably put it more on the lieutenant books so the government could accept stolen Bitcoin as proceeds for stolen property this is a complex issue reading some white list is a blacklist exactly well get the whole network voting against annexure would be a very interesting but as for you know does this have an effect on the entire marketplace or the industry well like it's only eighteen or twenty eight hundred coins which the network produce at 1800 every day after the hard fork so that's like next to nothing you're talking about a day and a half of mining production yeah it's a very minor issue but yeah I think I agree with the rest of the panel here with their definitely it was probably more quit claims involved in stowe on during the supper own investigations so what we'll see maybe there'll be more of these smaller options exit question after the sale the price of Bitcoin go down or be unaffected feel good unaffected Gabriel diva unaffected too small of an auction tell invades I go I'll go with the consensus on this one unaffected Alex Derek um previous occifer for around 40,000 Bitcoin and they had a significant effect I think this will be a slight uptick for the day but overall unaffected the price of Bitcoin will go up because the price of Bitcoin always goes up moving on to the plug shop at purse eyewear we've got everything you need to go back to school from Red Bull to Soylent from beer bongs to ping pongs and it's all on sale shop with Bitcoin and save money at purse dot IO issue 3 Bitcoin and terrorism the australian government plans to take strong action this week to classify bitcoin as an e currency such as prepaid debit parts and regulated under their very strict anti-terrorism laws the article once again falsely claims that Bitcoin allows for anonymous money transfers when it is actually the world's most traceable form of currency and incredibly difficult to use anonymously Gabriel d-von your thoughts on this decision should countries be worried about Bitcoin backed terrorism um it's a complex issue I think you know Bitcoin does enable more trade to happen online and some people trade in terror so in that sense there is a legitimate case to be made to categorize Bitcoin along with the other things that might be used for terrorism what I don't understand is the US dollar yeah exactly well if I don't understand why there should be a different well I do understand but it's very corrupt and there's a logical disconnect there that they consider mainstream government currencies not to be in that group now you can do transfers of government currency with shell companies and things like that to Fonterra's terrorists but of course cash delivery is the main way to do it so I think this is mostly show it's mostly sort of lap dog type behavior to American hegemony and really it fits very well into Australia's slide into authoritarianism tone this oh man did you say slide into authoritarianism if there's one country I would pick thats more authoritarian than the United States it would be Australia they literally have the most ruthless tax authority um who I as far as I'm concerned every one of them is armed and all they do is just bus down houses as I I I really don't like Australian tax authority this is all about taxes this has nothing to do with terrorist financing I mean some of the lower level people will their brainwash believing that it's all about terrorist financing but it's not it's all about taxes ah there they just want the money I mean everyone's a money launderer they just want their cut they have no idea what they're doing all they want to do is regulate they regulated Bitcoin way too early and there single a company involved in the Bitcoin space left Australia two years ago when they decided to add a Goods and Services Tax of like twenty percent to every Bitcoin transaction now they want to reclassify it as money again way ahead of the game and everybody else I Australia is all about regulation it's uh and they're a big country like I understand that you have saw a place like Singapore that has a lot of control over the population but that's more of a city-state but Australia's authorities III think they're terrible I think that that is one of the most impressive countries in the world I I wouldn't want to live there I mean maybe I'll go there on vacation one day but but I wouldn't want to live there but that's just my opinion of it I think everything that that comes out of the mouth of that government is always wrong but so I leave it at that tones right the real terrorists are the people who don't pay their taxes we call them corporations Alex Turk you didn't there we go yeah sorry husky mouse button um so this story I guess maybe hits a little bit closer to home as uh earlier in the week there is actually a terrorist killed about an hour from where I live now in the small town Strathroy and he was taken out due to I guess a hint or something given the police but he he died before he reached denser urban areas um so after reading like there's a story from a German news outlet that uh they found that the terrorists firearms or we use an attack there were coming from the darknet market this is a pretty easy response from a country that has historically had very strict standing on digital currencies like Australia tone mentioned um but you know it's of my opinion that individual terrorism events you know the stem from like mental health issues which i think the Quinn probably helps in a way because it allows a lot more liquidity and say something like the marijuana market so people just chill the hell out yeah as per taxing everything else it they definitely have a harder stance on me the entire currency space and I don't think they should be setting an example for any other country mental health issues like religion Theo Goodman you heard of here first bitcoin helps with mental health it doesn't cause bad mental health okay uh so i'm just wondering i guess maybe there's an election coming up or you know some politician there is low in the polls is there just kind of reactions it doesn't it's not it's not only with bitcoin it can be with anything and you know politicians have to posture to make people think that they're actually doing something and bitcoin sounds interesting you know hey there's this weird currency we heard of it bitcoin and the terrorists are using it you know what we're gonna regulate we're gonna do something against it and look we're doing something see where we're talking about i probably can't really do that much if I really want to use it it doesn't matter it's just about the perception that the government is doing something and it even sounds cooler next next year the government is going to be talking about regulating block chain moving on to the exit question what other useful tools should we ban for fear of use by terrorists laptops smartphones or keyboards Gabriel Devon I'm gonna go with the classic shoes terrorists always seem to be wearing shoes as far as I can tell shoes are instrumental to helping terrorists walk long distances such as chairman mao during the long march they never could have made it without shoes tone days yeah i know i'm kind of surprised a like some country hasn't banned cell phones yet I mean belt should be the number one tool right they are very dangerous they can be used in triggered bombs they can also be used for communication very dangerous tool Alex Turk um I think we should be banning Forks you know hard fork Softworks sports you know because these represent a serious danger not just to the average citizen but to all the corners and etherium token holders and really the entire cryptocurrency space as a whole should be very concerned about pork just being passed around willy-nilly so many times haha why not use the spoon it'll hurt more feel good when humans fell out of the trees they reach down to the earth and picked up a stick and that was the first tool that's why we should ban sticks when they banned sticks the only look weapons left will be rocks I think we should ban keyboards musical keyboards like the one used by Gabriel Devon as we all know music is the true weapon of terrorism shown us a keyboard there's moving on to issue for issue for mega upload to Kim com Australian millionaire and founder of the popular file sharing website mega upload is back in the news this week claiming that his new product mega upload to will feature Bitcoin micro payments for file transfers and a new feature called bit cash which he claims will solve Bitcoin scaling problems and increase the popularity of the fledgling digital currency sending the price to the moon tone vaise your thoughts on mr. comms exciting announcement alright so I think I already have a reputation for being the perpetually skeptical commenter on the show so I have no reason to change that stands now I look I like him calm I thought it was a complete sham when they arrested him the u.s. arrested him he's never even had a US visa and not to mention never stepped foot on US soil I'd had no business doing that I'm new zealand is trying to be a pretty progressive country so i'm i'm all about Kim calm he was doing a great service it was unfortunate when megaupload one down I video-sharing became a complete and utter mess I wrote that article it sounds like a bunch look I'm sorry unless he built a better version of the lightning network I what is this micro payment system right I I don't have to see it to believe it is he our people are gonna put in a bunch of Bitcoin and then they'll be micropayments internally within it that's fine but what does that have to do with Bitcoin scaling um again I Ivan last I heard he wasn't really I haven't heard of him cooperating with any of the vicar developers I haven't seen him at the scaling events so I I don't know what he's doing I don't know how it's gonna work but again we don't know any of the details at the moment I'm very very skeptical I it might he's also going to have a lot of problems you can't put Humpty Dumpty back together when mega uploads one down it became a free-for-all for video sharing and if he thinks he's gonna launch a website and everyone is just going to come back uh it doesn't really work that way because people are already comfortable they got to remove all of their on all their files I mean yes if they can get paid for them in Bitcoin that's great but this gets back to how has he solved the scaling problem that the 20 smartest developers possibly in the world haven't yet solved right so I'm very very skeptical on what it's actually going to look like I mean my bed the best case scenario is going to have a bounty system you'll have like a wallet where users donate some Bitcoin into a pot and then the first person to put up a movie or a video and stream it for X amount of time so that enough people can download it and reseated that person you know takes the pot I forbid of the Bitcoin I think that would be a great system if he can pull it off that might actually bring all the videos back to his site but I gotta see it to believe it guys I really really do I'm very very skeptical on what he say excellent point stone also if we falsely labeled mr. commas in Austin Elliot he might be from New Zealand apologies if we made that mistake Alex no I don't get you than you do on citizen I think you like finished and grandpa no he's dirty he's German you guys lunch in New Zealand yeah I'm not even sure a citizen exteriors mr dot com Alex Turk sounds a lot like mega dieser you know something that's going to create a lot of spam for the network unless yeah he has created some sort of new technology that none of us have heard about it it's going to be better than what's already coming he mentioned microtransactions which he's going to require the lighting network but I imagine each planet using that or he's planning on doing a side chain and the other thing that was mentioned was if planning on watching in 2017 already like a decade in crypto terms but I find it really well my liking network could be out by then so to give him some credit he might be planning for it I don't know yeah I imagine he is probably waiting for it but I'm I find it very curious that he's talking with bank to the future but doing a like an accolade crowd sale of some sort so we planning on taking in money which I guy supposed to be a billionaire a maybe maybe it's dresser getting a little hungry doesn't have money for food but uh we'll see if he's making a side chain of some sort or maybe it's even an altcoin altogether he's doing a proof of work of some sort I don't really like the idea of doing a you know a crowd say like kind of earned a lot of the economic interest with the people just buying into it rather than actually putting it in for heavier hash rates you want to see the hatchery go up with these solar systems and you know what if he's starting out small he's already kind of made a number of enemies I think he could probably have some issues with them with you know network attacks if he's not directly tied to Bitcoin Tosh great there are number competitors in the space like not just from whether you know tone was saying in the traditional market place in the crypto space there is already a couple companies that are nearing final release such as like storage coin and maeve safe so I doubt he has the ability to capture the market from those two companies and many others but i'll probably still throw a little money at the crowd sale from from my data portion of my flock jane portfolio okay Candace can just jump back in real quick because I actually have to run I'm so unless do or Gabe wanna severely disagree with what I said I gotta get going and I'll catch your comments later on on the video all right bye tongue all right bye guys let me tell you just one word about your future mega bitcoin feel good oh here hello hello testing okay I think that it's probably going to be a centralized thing I don't think it's going to be all this technical stuff side chains and all that stuff which is fine whatever and you know maybe he figures out a way to get it to people use it I don't know but um probably just hasn't heard of etherium and I'm sure that the talat could just make this thing in one line of code Gabriel d-von yeah you know I talked about this on the Bitcoin news show with vortex on Monday and with tone as well one of the things that is interesting is he is he was talking about last year was this concept of mega net but of course made safe is already doing what he's talking about which is creating an encrypted layer of communications that lives on top of TCP IP in the internet so I don't really see that him having better more deeply thought out ideas than this ten-year-old project that's just entered alpha today and then the other issue is you know Kim calm is awesome at PR he's really good he's so good at you know muddying ruffling up the waters getting attention he's really great and I just really enjoy the whole show I think he's a master sort of manipulator of sort of public opinion I agree with Tom that he was wrongly persecuted and basically the u.s. broke a bunch of international law in order to do the bidding of the motion picture association of america which considering how small into the industry it has it certainly certainly has a lot of power and I'm very convinced that that has to do with their the powers of propaganda in societies around the world that are on you know that aren't like living in the jungle and you know don't have access to media platforms so I think it's pretty great that he has glommed on the Bitcoin I think that's even though he's a crazy showman type of person the fact that he's bringing attention to bitcoin is really linking cryptography and you know technology together with this sort of freedom idea of you know the ridiculousness of intellectual property and how it's not defensible from a philosophical and economic standpoint so I think that's really great I think it's wonderful that he has come into the Bitcoin ecosystem with his declarations so directly but i agree with Theo that it's very unlikely that he's got a decentralized system in mind it's very unlikely that he's going to be able to align incentives in a way I'm sure his mind doesn't work like that like these you know these open-source platforms that I think have a bright future of the next few decades pretty sure he's just going to have another version of megaupload with Bitcoin functionality so that they can directly make money instead of through ads they can make money through Bitcoin micro transactions through some sort of incentivization for uploading and you know sort of getting paid to upload and pain to download type of things i'm pretty sure it's going to be a centralized thing i don't think it's going to increase the scaling ability of Bitcoin at all I really genuinely doubt that although he might just be you know using a variant of lightning or thunder network or something it's an excellent point game even if the project is not a technological tour de force we're still very lucky to have mr. calm on our side exit question which will have a bigger effect on Bitcoin scaling megaupload to or the lightning network Alex Turk I think it ends on how much spam is planning on creating yeah by putting bryn transactions but there who knows he's the one he's been putting these spam attacks out there really developing the feed market yeah I think it'll probably even drive a little bit of praising of it really so claim to but uh it will probably be more coinciding the u.s. elections rather than that anything to do with tip com but uh yeah being the loud PR guy he is I'm sure he'll bring some interest whether it's to development or price it is true that the price of Bitcoin has done nothing but go up since we started the Bitcoin group do Goodman uh I think lightning network will have a bigger impact than it's a bigger technical impact on scaling that and Kim comms new venture Gabriel d-von can you repeat the question you dropped out when you're saying it which will have a bigger impact on Bitcoin scaling megaupload to or the lightning network lightning network we're in agreement it's the lightning network but we're still big fans of Kim calm let's move on to predictions or story of the week Alex Dirk are you ready with a prediction or a story of the week ah prediction yep i think i said earlier Polonia actual list bfx coin they've officially denied it but that probably means this you know accumulating quietly so they can list it story of the week tonight I'm interviewing decent another people are local have video project so you can check it out I'll follow a block talk right over there yeah that's really all I have to say very cool thanks for being on the show Theo Goodman a bit Finex will add margin trading to bitfenix coin they reeled Yvonne my announcement story of the week is a plug for my new show I'm going to be doing an interview show gradually over the next few weeks and keep an eye out for the little intro that I recorded last week should be a nice little fun intro into what I'm going to be doing on the show it's called future rant and it will be here on the world crypto network alright very cool looking forward to that and my story of the week is just a thanks to the San Francisco Bitcoin meetup had a great time last night at our drink up event at the El Rio about 40 or 50 people came we all had some drinks we talked about Bitcoin a lot of people working on interesting projects I got to meet somebody's through China who's been watching the show for three years and even wanted to take a picture with me and that does happen very often so I always think it's meet when it does so thanks to everyone for coming to the Bitcoin meet up and thanks to everyone else who has Bitcoin meetups out there we should be having them every week at least every month as a great way to meet up with your fellow bitcoiners who as it turns out you have a lot in common with but we're about out of time so until next week bye bye bye see you later

10 thoughts on “The Bitcoin Group #104 – Bitfinex Hacked, US Bitcoin Sale, Australia Bitcoin, MegaUpload2”

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  3. 50 years ago Gay marrage and abortion sounded impossible!

    Now were here! How long till their final part of their plan is in action and the devil truely roams this earth?

    Peodophillia will be legal within 10 years! GUARENTEED! It may has well be today with the politicians,. Education, Science etc worlds ALREADY manipulated with this evil satanic stuff!

    Yes, No matter what country you are from, The jews have infultrated THEM ALL with this evil shit!

    Got to be dumb, blind, stupid and ignorant not to see it in 2016 lol

    Hidden in plain sight!

    And yes, the Jews deal in 'Terror' which is all about 'Fear'…. Fictional Events Actually Realised! I.E – All in your heads, We create our own fear lol.

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  4. Gabe , I totally agree .There is a reason to be suspicious about some kind of inside job (regarding bitfinex). Tone I know you don't do the whole conspiracy theory talk but even you must agree that there is room for some kind of collusion in this case. As always , great show guys .

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