Will BIP 91 Miner Activated Soft Fork save Bitcoin? John McAfee makes bold BTC bet. $10 million lost in CoinDash ICO heist. BTC ATMs plan temporary shutdown beginning July 31. Apple approves DASH. The foul smell of federal crypto legislation. Is Wells Fargo a bad actor or just incompetent? Parity multi-sig wallet exploit leads to huge losses. Ethereum EIP proposes difficulty bomb delay. Free State Bitcoin Shoppe opens in Portsmouth, New Hampshire.
We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Darren and JJ!
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|Traditional Financial Markets||Cryptocurrency Markets|
|Gold $1,241||Bitcoin (BTC) $2,378|
|Silver $16.50||Ethereum (ETH) $213|
|Oil $47.09||DASH $157.63|
|Dow Jones 21,640 points||Litecoin (LTC) $41.43|
|30Y UST Yield 2.825%|
The Bitcoin saga has taken another twist with the recent support for Bitcoin Improvement Plan 91 (BIP 91). The effort to avoid the reckless Bitcoin Core plan is led by Bitmain – one of the largest Chinese miners. As of this episode support for BIP 91 is around the 80% that would be required to enact the plan.
This improvement plan is similar to the original SegWit plan (BIP 141) with some exceptions:
The activation window has been shortened to 336 blocks and the consensus requirement is 80% of the blocks.
As of this episode BIP 91 supporters have claimed 100 of the last 336 blocks. At the current rate of support and 10 minute average block times the Miner Activated Soft Fork (MASF) could locked in within 48 hours. Even if support wavers there is still plenty of time before the August 1 deadline.
What does this mean for Bitcoin?
Bitcoin Core is no longer exclusively in control of Bitcoin’s future. The miners have implemented the New York Consensus and SegWit activation will still occur on November 15th followed by 2MB blocks six months later.
If the lock-in happens before August 1, it will prevent the activation of the User Activated Soft Fork (UASF) and offer stability and continuity in Bitcoin markets. In this case, there will be no great hiccup or fragmenting at least in the foreseeable future. This is good news for Bitcoin.
What do you need to watch out for?
If the lock-in happens before August 1, things ought to proceed as normal. It is advised during this tumultuous period that you hold your coins in a wallet where you control the private keys. Try to limit your Bitcoin transactions until the dust has settled.
Security expert and former Libertarian presidential candidate John McAfee said he would bet $10 million dollar on the price of Bitcoin reaching $500,000 within three years. He actually offered to bet more than that, but as a family friendly show, we’ll let you click through the links to find out more.
He is also starting McAfeecoin as a crowdfunding accelerator.
New Hampshire ATMs operated by Shire BTC Vending and Shire Bitcoin have announced that they will temporarily shut down beginning on July 31 until the future of Bitcoin becomes clearer.
Darren reports that Apple has finally approved DASH. iPhone users will soon be able to download and install DASH wallets and enjoy instant send.
The Uniform Law Commission (ULC), which promotes uniformity among state laws in the U.S., has developed a nefarious piece of draft legislation called the Uniform Regulation of Virtual Currency Businesses Act. This legislation is modeled after New York’s bitlicense law, which has had a chilling effect on the fintech industry.
A vote by the commission was expected today. If the ULC approves the draft, we can expect that the legislation will be submitted in Congress.
The CoinDash team had planned an ICO and despite requests for the contract address in advance, they waited until the last minute to release that information. Well, the contribution address was changed just prior to the launch. The launch went on and then a realization was made that a scam was afoot.
Today, it is being reported that losses are totaling around $10 million, as would-be investors continued to send ETH to the fraudulent address.
CoinDash is claiming someone hacked into their wordpress site and changed the address in the ICO post. The website has been shut down and CoinDash has stated they intend to send their tokens to those that contributed WHILE the site was up. Anyone who has contributed after the site was brought down will not be compensated.
We talked about their last big scandal in episode 173 and about their “economic obligations” to see the Dakota pipeline built in episode 193. Now Wells Fargo is looking to quash class action lawsuits brought against them due to their practices of forcing customers to seek relief through secretive non-judicial arbitration processes.
This latest scandal involves debit card reordering. If you happen to charge too much to your debit card, Wells Fargo could reorder the transactions to optimize the over draft fees.
Vice provides a good example: “Let’s say you have $100 in your bank account, and you make three purchases, costing $20, $30, and $110. Under Wells Fargo account guidelines, the bank can charge you a $35 overdraft fee for taking out more than you have in your account. But by reordering the transactions from highest to lowest, putting the $110 charge first, the bank could charge three separate overdraft fees, one for each attempt to draw insufficient funds. Simply by altering the transaction order, Wells Fargo could make an additional $70.”
Cases against Wells Fargo are happening all across the country with a California judge ordering the bank to pay $203 Million to customers over the deceptive debit card scheme.
Unknown attacks have found a flaw in the Parity multi-sig wallet code and made off with more than 153,000 ETH. White Hat hackers were quick to respond and drained untouched wallets, saving more than 377,000 ETH.
Swarm City is among the victims having their wallet emptied and losing 44,055 ETH. Edgeless Casino and Aeternity also had their wallets emptied.
This exploit is only affecting Parity multi-sig wallets created with version 1.5 or above.
Proposed changes with the upcoming release of Metropolis will look to offset the difficulty cliff programing into Ethereum’s code. The difficulty cliff is meant to segue into Casper Proof-of-Stake blocks. There is also a good chance that mining rewards will decrease as well.
If you find yourself in Portsmouth, New Hampshire, check out the Free State Bitcoin Shoppe, which just opened at 56 State Street!
BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
DASH Address: XtLEPo6DKeu45e2czdHLEb5EzJRVDz2aLZ
NXT Address: NXT-TT49-WV65-HZJA-5EJF9
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