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Image of The Week, 8-12 of October: Forbes, Reuters, CNN and Others

Oleg Koldayev

We're presenting “image of the week”. Bitnewstoday.com has chosen only the most important news about the digital economy and virtual currencies. Only the most valuable stories from only the trusted sources. Each and every event from this list will change the world of the digital economy either way. The most important stories in the most indicative quotes are below!

8 of October


China has the power to destroy Bitcoin

A damning new study has suggested China holds threatening influence over Bitcoin – and perhaps even the ability to attack and ultimately destroy the entire Bitcoin network.

Academics from Princeton and Florida International Universities have explored how China “threatens the security, stability, and viability of Bitcoin” with its “political and economic control over domestic [cryptocurrency] activity […] [and] internet infrastructure.” According to the paper, China has both “mature capabilities” and “strong motives” to perform a variety of attacks against Bitcoin. Even worse, it is already exerting its power over Bitcoin in a myriad of ways.

SHADOW OVER MALTA (Finance Magnates)

Malta’s “blockchain island” plans overshadowed by EU investigation

Malta, the Mediterranean island of less than half a million people, will soon become the first member of the European Union to enact a full set of laws governing blockchain businesses. However, what should be a positive development for the cryptocurrency industry is somewhat marred by ongoing investigations into widespread corruption and possible clashes with EU law.

One potential major area of friction is the EU’s much-discussed GDPR laws of May 2018, which relate to data protection. The laws were not written with blockchain technology in mind — how can a customer demand that his data be deleted when there is no central authority and a blockchain is indelible.

9 of October


IMF issues stark warning over Bitcoin and crypto 'rapid' growth

The International Monetary Fund (IMF) has warned the "rapid growth" of Bitcoin and cryptocurrency assets could create "new vulnerabilities in the international financial system," as the world's banks adjust to the recent Bitcoin and blockchain boom.

Bitcoin and cryptocurrencies, including Ripple Lab's XRP token, Ethereum, Litecoin, EOS, and Stellar, are being examined by the traditional financial system to gauge how they might be integrated as both investment tools and ways to move money across borders more quickly and cheaply.


The latest experiment in journalism is facing a big test this month

Civil Media, a blockchain company that has partnered with more than a dozen news outlets, has about a week left to sell its new cryptocurrency to the public. The tokens are intended to create the foundation of an economy that is key to the model that Civil envisions for journalism.

So far, it's not clear whether Civil will succeed. The website Token Foundry, which has been measuring the sale, says about $1.4 million worth of tokens has been sold since the sale started in mid-September — well short of the $8 million Civil has set as its soft cap for the project. Its ultimate goal is to raise $24 million worth of tokens. If it doesn't hit the soft cap, the money will be returned.

10 of October

BIG BOOTY (Reuters)

Cryptocurrency theft hits nearly $1 billion in first nine months

Theft of cryptocurrencies through hacking of exchanges and trading platforms soared to $927 million in the first nine months of the year, up nearly 250 percent from the level seen in 2017, according to a report from U.S.-based cybersecurity firm Cipher Trace released on Wednesday.

The report, which looks at criminal activity and money laundering in the digital currency market, also showed a steadily growing number of smaller thefts in the $20-60 million range, totaling $173 million in the third quarter. Digital currencies stolen from exchanges in 2017 totaled just $266 million, according to a previous report from CipherTrace.


AARP defines Bitcoin as a “bunch of computer code” for criminals

AARP, a US-based interest group that advocates for social change, just shared its definition of Bitcoin: “A bunch of computer code that a bunch of criminals, idealists and speculators agree is worth ‘real’ money. Sadly, its real-money value swings widely, making it impractical except for criminals, idealists and speculators.” Formerly known as the American Association of Retired Persons, AARP stated mission is “empowering people to choose how they live as they age.”

The organization’s characterization of Bitcoin is part of an ongoing narrative about the world’s number one cryptocurrency. Released in 2009, Bitcoin was first popularized by its use on Silk Road, a now-defunct website best known for selling illegal drugs.

11 of October


Cops arrest infamous sim swapper

Authorities in Oklahoma City arrested a man who sources in the criminal hacking community believe to be one of the most infamous “SIM swappers,” who steal cellphone numbers and use them in cryptocurrency heists. He is accused of stealing $14 million in cryptocurrency in one single heist.

He has been charged with hacking, identity theft, and grand larceny, according to a statement of facts provided by the authorities to Motherboard. Harris is accused of stealing $14 million in cryptocurrency from Crowd Machine, a blockchain startup. On September 21, Harris allegedly hacked the company’s CEO and stole his private keys, which allowed him to access Crowd Machine wallets and steal the cryptocurrency.


‘Permabear’ Nouriel Roubini says blockchain is only as good as a spreadsheet

Prominent bitcoin detractor Nouriel Roubini, a professor of economics at the New York University Stern School of Business, has, not for the first, nor probably the last, time denounced the emergent technology that is blockchain and cryptocurrencies.

In a prepared testimony for a Senate Banking Committee hearing Thursday, the Turkish-born economist, known colloquially as “Dr. Doom” for his seemingly permanent bearishness, said digital currencies are the “mother of all bubbles” and, in fact, have entered an apocalypse.

12 of October


Superstar plastic surgeon buys major South Korean cryptocurrency exchange

Bithumb will now be directly managed by Singapore-based investment group BK Global Consortium, after it purchased a 50-percent stake (plus one share) from its largest shareholder, BTC Holdings Co., Bloomberg reports. To confuse matters, BK Global is also a major shareholder in BTC Holdings. BK Global have effectively ‘doubled-down’ on its investment, by selling itself enough shares to have direct control over Bithumb.

Running BK is Kim Byung-gun, one of South Korea’s premier plastic surgeons and founder of the BK Plastic Surgery Hospitals, first in Seoul, then Singapore.Bithumb is currently the second largest cryptocurrency exchange in the world by reported volume, with more BTC flowing through it than global exchange Binance.


Ether creator claims he's no crypto billionaire

Vitalik Buterin, one of the most influential people in crypto, says he’s not a digital-currency billionaire.In a Twitter post, Buterin, who helped start the world’s second-largest cryptocurrency, Ether, and continues to drive the development of underlying technology, said he never personally held more than 0.9 percent of the cryptocurrency, which has a market cap of $20.1 billion.

Buterin posted a link Wednesday to his digital wallet, which currently holds 365,003 Ether, valued at about $73 million, and includes gifts and charity donations. Buterin said he has other wallets, "but they’re quite small relatively speaking.

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