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The future of digital currencies

By on February 10, 2016 in Bitcoin, Blockchain, Uncategorized

What is actually going to happen is, each virtual currency is going to continue doing its thing. If bitcoin’s current situation becomes a problem, people are going to start using something else. That something else will gain traction. It may even become more popular than bitcoin. Or, when that begins to happen, the bitcoin community is actually going to decide to evolve. This process is necessary for evolution. To think that we need only one virtual currency is short sighted. There are going to be many virtual currencies that have various properties that are suited to their environment better than another. Virtual currencies are going to become some of the human beings’ tools to transmit value between each other, in addition to ancient technologies such as bank transfers or Paypal.

Bitsapphire: The necessities of Evolution »

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EU not to regulate Bitcoin. At present.

By on January 26, 2016 in Uncategorized

Over the past few months, the EU, in collaboration of international law enforcement agencies have dedicated a significant allocation of its operations in exploring the application of bitcoin in the dark web. Particularly, the organization has been investigating the use of bitcoin in purchasing illicit goods like weapons and drugs, and hacking groups like DD4BC which demanded ransoms in bitcoin. (…)

Regardless of the growing number of “criminal” activities involving digital currencies including bitcoin, EU’s European Commision and its senior financial services official Olivier Salles stated that it is too early to impose various regulations and financial policies on bitcoin, as technologies are easy to fail when regulated.

EU will Not Regulate Digital Currencies like Bitcoin »

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Sweden to censor the Internet?

By on January 23, 2016 in Censorship, Civil liberties, Internet, Sweden, Uncategorized

Is Sweden to join the likes of Turkey, China and Cuba?

It turns out that the Swedish government is looking into the possibility to censor non-licensed online gambling sites.

The pretext is the health and safety of the Swedish people. But the real reason is rather glaring: Money.

The state-owned national gambling company, Svenska Spel, sends a lot of money to the treasure. But that’s just the beginning. Let’s follow the money.

The Social Democrats, who are in government at present, are also the owners of one of the few licensed Swedish gambling companies, A-lotterierna. From this, the party pockets some five million euros a year.

Furthermore, the Swedish foreign minister — Margot Wallström — was recruited from a senior policy position at another licensed gambling company, Postkodlotteriet. This company has been sending millions of euros to the Clinton Foundation. Just between friends.

So, of course, the Swedish government doesn’t want the Swedish people to go to other, foreign gambling sites. The money should stay in the country, preferably in Party hands.

This is preposterous.

So the idea, now being aired, is to block access to all non-licensed gambling sites. (And there are quite a few in the world.)

Opening the doors for Internet censorship — what could possibly go wrong?

I can imagine the ruling political class could fancy blocking quite a few sites that annoys it, if that option becomes available.

Swedish Internet censorship is still under consideration. Now, the civil rights movement will have to sound the alarm and try to stop the idea before it reaches Parliament.

The Swedish government also has a plan B: To block payments to non-licensed gambling companies.

That also is a terrible idea, but in a different way.

/ HAX

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A threat against freedom of association and assembly

By on January 12, 2016 in Uncategorized

Data retention might be used by the authorities to connect the dots between people, creating sociograms.

But it’s not only about who you talk with on the phone, text or e-mail. Data retention also includes people’s mobile positions. This makes it easy to draw conclusions about who you are meeting with, where and when.

While data retention makes it possible to determine people’s general positions, there are even more precise tools such as IMSI-catchers a.k.a. “Stingrays“. Small, portable fake cell phone base stations like these are perfect for identifying people participating in a political meeting, a rally or a debating society.

This is a law enforcement dream coming trough. But it’s also obviously problematic when it comes to freedom of association and assembly.

This equipment opens the door for wholesale registration of people’s political affiliations.

The freedoms of association and assembly are essential in a democratic society. It is a prerequisite for the existence of traditional political parties. It is necessary to make political activism possible. And it is fundamental to the people’s right to organise, protest and oppose those in power.

What intelligence organisation or government could resist using such a tool to keep track of opponents and dissidents? And if not today, what about tomorrow?

This is not only about possible government abuse of power. It can just as well be used by foreign powers. Or by criminals and terrorists, as IMSI-equipment is available on the open market. Imagine the damage that can be done. (It is possible to collect identities and print a hit-list almost instantly.)

This is not some dystopian prediction. Data retention is very real and Stingrays are most certainly already in the wrong hands. All you can do to protect yourself is to leave your mobile at home. But I guess people won’t.

/ HAX

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Meanwhile, in Germany…

By on January 8, 2016 in Uncategorized

(T)he publishers insisted that Google’s News search was somehow illegal and taking money away from them, and thus they demanded money from Google. When Google responded, instead, by removing the snippets providing summaries to their stories, the publishers claimed it was unfair and blackmail. In short, not only do these German publishers want Google to pay them to send them traffic, they want such payments and traffic to be mandatory. (…)

If you thought the situation was over, you underestimated the short-sightedness of VG Media and the German publishers. They’ve now apparently filed a lawsuit against Google over all this, taking the issue into court. Again: this is all because Google is sending their websites traffic… for free.

German Publishers Still Upset That Google Sends Them Traffic Without Paying Them Too; File Lawsuit »

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The normalisation of mass surveillance

By on December 28, 2015 in Big Brother, Big Government, BND, Civil liberties, Data Retention, Democracy, EU, Germany, Human rights, Intelligence, NSA, NSA & Snowden, Privacy, surveillance, Sweden, Uncategorized, US

Once upon a time, there were rumors about a global surveillance network — Echelon. When the European Parliament decided to look into the matter, it turned out it did indeed exist. For years to follow there were rumors about US intelligence organisation NSA and its new capabilities to “collect it all”. And a few years ago, the Snowden documents exposed exactly that.

Then followed a state of resignation.

In 2013/14, it was brought to light that the NSA might have compromised the international clearing system for bank transfers, European run SWIFT. It’s a bit odd, as the US can have as much information about European bank transfers as they want, in accordance with the EU-US TFTP agreement. Newer the less, there were strong indications of something going on. This time the European police agency, Europol, didn’t even bother to look into the matter. In a European Parliament hearing Europol director Bob Wainwright explicitly said so. (The hearing is quite surreal. It’s all on video here. »)

In Germany, politicians softened their tone against the US/NSA when threatened with limited access to US intelligence. It also turned out that under the level of political polemic, the BND had been working very closely with the NSA all the time. And in Sweden, according to the Snowden files, SIGINT organisation FRA has access to NSA superdatabase XKeyscore. Swedish politicians (including the Greens, who are now in government) will not even comment on the legality of this.

The European Court of Justice has invalidated the EU data retention directive, finding it in breach of fundamental human rights. Never the less most EU member states are upholding (and in some cases implementing) data retention, leading national constitutional courts to object. But data retention fits well with US surveillance systems, so it seems to be less important if it is legal or not.

I could go on, but I better get to my point.

Politicians and intelligence bureaucrats are sending some pretty clear signals these days. They do not care about what is legal or not legal. They do not care if being exposed. They do not even comment on issues that ought to be fundamental in a democracy. The message is: This is the way it is. Live with it.

If there was ever need for a broad political movement against mass surveillance, it is now.

/ HAX

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Alleged Bitcoin architect out of sight, home and office raided

By on December 9, 2015 in Uncategorized

This is intriguing: Australian Craig Wright has been exposed as the man (or one of the men) behind Bitcoin. Maybe. Or not. Immediately his Sidney home (that he seems to have moved out of) and office was raided by Australian police. The only comment from the authorities is that this has nothing to do with his alleged Bitcoin connection.

Hmmm…

• Reported bitcoin ‘founder’ Craig Wright’s home raided by Australian police »
• Bitcoin’s Creator Satoshi Nakamoto Is Probably This Unknown Australian Genius »
• This Australian Says He and His Dead Friend Invented Bitcoin »
• Bitcoin creator Satoshi Nakamoto probably Australian entrepreneur, reports claim »
• Who is Craig Wright and how likely is it that he’s behind bitcoin? »

This is like something out of a John Grisham thriller.

But what are the implications for Bitcoin? Probably none. It is a decentralized system that no one should be able to control or tamper with.

However, even a remote possibility that someone has some sort of “golden key” is enough to get the full attention of various governments. No doubt, Bitcoin threatens their control.

/ HAX

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