Happy Birthday Bitcoin – Available NOW-eBook –http://www.amazon.com/dp/B00AYA4SVS
On this day Bitcoin turns 4 years old. As any 4 year old will tell you this has been a wild ride. From a little know digital currency to today’s acceptance into the legal banks and marketplace this little currency that could has shocked world leaders, stunned banking officials all over the world trading and is today in the $13.5-USD range.
Pierluigi and I (gAtO) first came across this when we were covering Wikileak problems and writing our first book – The Deep Dark Web – the cyber underweb we’re finding this new currency and using it because it was working and had no government ties. Bitcoin has been vilified by most governments but the US -UK and it’s ties to currency transaction systems like Visa, Mastercard, PayPal and others (IMF and SEPA, SWIFT to name a few) became the shot heard around the cyber world.
On the one hand you have Anonymous and other hacktivist using it to show how it cannot be controlled and the other side is the European Central Bank (ECB) published a report in Nov-2012 about finding a solution to Bitcoins place in (FRB) Fractional Reserve Banking, the cornerstone piece of all banks to create money out of thin air.
Thomas Jefferson said: “I sincerely believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power should be taken from the banks and restores to the people to whom it properly belongs”
Digital virtual communities have exploded in recent years – this phenomenon is enabled by social media and the changing world we live in. In some cases some communities have created their own currency for exchange of goods and services but it has expanded to outside their own circles to provide a new medium of exchange, creating new digital virtual currencies that are changing the world. Bitcoin-Central is now the first Bitcoin exchange to become a bank with guarantee funds insured up to EU$100,000.
When the ECB published that report it was the white flag of surrender but also assurance that the bankers can still control some of it’s power. Let’s face it FRB is the biggest scam by bankers – as they explain this system it is done to expand the economy by freeing up capital that can be loaned out to other parties. WoW that sound so nice of them to do this favor for us in reality it set’s up the cornerstone or their financial profits from nothing.
FRB is were someone deposits 100 dollars in a bank they are required by FRB laws to keep 10% in the vault but now they can loan out 90% of that deposit because they got the governments (us the tax payers) to insure that $100 deposit in case they make bad loans or to make sure they get their bonus checks. So if you came back to the bank to get your money out and they squandered your money on bad loans or just shoddy business practice -oh well no problems – the government will pay you back with our own tax dollars. In other words they take my tax dollars and pay me back with it and then they increase my taxes so that the bankers can keep doing the same thing over and over again. No responsibility and to think that bankers are look up to by business and in persons to be highly respected and good citizens- right!
This is the biggest scam in history they have no responsibility, no reason to be wise and make good investments because they have politicians in their pockets. You know those people that we voted for that are supposed to represent us the people, no they represent these scum’s the bankers. The funny thing that they have no control of Bitcoins like fiat currency. They cannot just print more money up; Bitcoins are created in a way that revolves around MATH – Yeah most people hate math but this time it works so good that these bankers have tried everything in their power to control Bitcoin and other digital currencies and they cannot; they failed.
I will be the one to first tell you that Bitcoins as they are today will NOT be the answer only 21 million total Bitcoins will ever be created and the world needs a bigger unit to scale this for a worldwide monetary solution. Other digital currencies will still be created because of the Bitcoin experiment; and as the world becomes more digitalized we will see that government or corporate control currency solutions will not be trusted by the world community.
Look at Canada’s attempt at Digital currency MintChip at first it was hailed as a winner the first digital currency backed by a world leader like Canada. But somehow after much fanfare and lots of money spent they awarded the team with a the best solution and hid it from everyone – it went to the back room in the filing cabinet never to be heard again. In the 2 or so years that the Canadian took to develop this system it was convinced (by the global bankers) that this would not work. Canafa caved in to the pressure and MintChip is dead – DOA
Maybe the bankers told them to shelf it, it would setup the premise that other governments could do the same and if they can bypass the current system like SEPA or SWIFT or IMF or the World Bank you see they control the financial system and if they don’t like you or you pissed them off they will not allow your country to function in it. Control of the financial network is how the “evil global bankers” control the toy box.
We hope that our new book will open up doors and minds to the possibilities of digital virtual currency and Bitcoin worldwide.
This book explores the new digital currencies and how they are changing the world. When we were researching -The Deep Dark Web book we saw that some of the criminal elements were using this new currency Bitcoin but we also saw that legit business were also adapting to this new currency. We hope to help you learn what is happening with this new currency we cover -Who uses this currency -What are the financial aspects – Governments, Business, Merchants and Criminals. In all we hope to guide you with some of the questions you have.
This book will be an invaluable resource for cyber security professionals, financial policy-makers, business experts, lawyers, merchants, scholars, and researchers, this book provides a comprehensive research from a International cyber security perspective, technical, and financial implications of the new digital virtual currencies.
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gAtO tHiNk – the monetary system is f%^k and so are we. My good friend Pierluigi and I have been busy putting together a new book – Digital Virtual Currency and Bitcoins – coming out in a week or so and the picture of the state of all currency is really in bad shape. Virtual currency is not new it is more a transactional system than currency but unlike PayPa, Visa, Mastercard with Bitcoins you can become a miner and create your own coins. check it out- https://blockchain.info/nodes-globe
I have include the table of content so you can see our approach to understanding what is happening and the war that global bankers ar wagging on this new system of currency. Why are they fighting it so hard because more people are beginning to see that a currency that is not control by global bankers and by the people and for the people is a better solution. Of course they are vilifying Bitcoins but as other systems have tried to get their teeth into this new worldwide currency Bitcoin come out on Top.
We hope that you will gain some knowledge from our newest venture into this mad, mad world of money- as they say “Follow the money” and we did but I can tell you the more I learned the madder I got that we have been tricked into thinking that the global bankers are the good guy. Facts is the world is in debt over 10 times over just on interest alone. The world owns more than we create – THE WORLD not a nation. and if look real hard 1% of the people control 40% of the wealth in this world. It is not a national issue it’s a world issue.
We are just cyber security professional but this has been an eye opener as we see the Monterey Market System as a sham to keep the people of the world in an ever ending debt -gAtO OuT
You can pre- order just send us a message-
Table of Contents
Digital Virtual Currency and Bitcoins
Digital virtual Currency Steps In:
1. What is Digital currency:
System D and technology
The Cyber Underground
Black market payment
Digital Currency -Trust Thru A Consensus 35
Where does Digital Currency get it’s value? 35
Trust Thru A Consensus 37
Cyber-War Digital -Vs- Global Currency 39
Cyber Death Of The Banking Industry 42
Those that control the quantity of currency have all the power. 42
Cyber Fixed Rate Exchange 2012 43
System D- Bitcoin’s Underground Economy 47
Digital Currency and Policy Makers 50
American Express Gamer Digital Virtual Currency 50
Facebook Credits 50
Google Bucks 51
How a bit coin Transaction Works: 53
Iran and Bitcoins: 53
2. Who uses Digital Currency 55
Bitcoin -Vs- Evil Global Bankers 55
Credit Cards 2 BTC-Bitcoin – BTC-Bitcoin 2 Credit Cards 55
Case Study Black Market Silk Road 57
Money Laundering in -The Digital Virtual World- 63
DC -Digital Currency – Launder CASH to Bitcoins 64
USD (Major banks, 7-11, Walmart, CVS) 64
Bitcoins cannot be traced back to the Owner 65
Happy Satoshi Nakamoto -Bitcoin- Day Nov 1 67
money $$ with – NO GOVERNMENT – NO BANKS 67
Underground Financial Networks 69
Reloadable Debit Cards – Basics 69
Western Union /MoneyGrams Basics 71
E-currency Basics 73
Trust Networks Basic 76
Borrowed Bank Accounts / Underground ATM cards 77
Mule Networks 78
Global Bankers Fear Bitcoins 79
European Central Bank report October 2012 report: 81
Secure Bitcoin Trading Online 84
Credit Cards 2 BTC-Bitcoin – BTC-Bitcoin 2 Credit Cards 84
Creating a secure identity: 85
Setting up OpenPGP email 86
Use Bitcoin-OTC 87
Using the Web-Of-Trust 87
Use an escrow 88
3. Digital Currency Financial Stuff 89
Bitcoin and Forex Trading 89
But really let’s take a look at FNIB – and Bit4X – 90
Bit4X – the new kid on the block – 90
Digital Currency 92
Top Ten Bitcoin Financial Charts 92
Virtual Currency Schemas
Virtual Currencies and banking, disaster or opportunity? 98
Price stability 99
Risks to financial stability 99
Risks to payment system stability 100
Bitcoin Still Up 137% YTD 2012 102
Geek Stuff – API to Bitcoin Block 103
Buying bitcoins 104
Major Exchanges 104
Exchanges are listed in alphabetical order. 104
Fixed Rate Exchanges & Others 118
Direct / Bulk Buying 123
Other Financial Services 123
Physical Bitcoins 124
4. Legality of Digital Currency 125
Bitcoins entities and possible legal responsibilities 125
Law enforcement and financial institutions against bitcoins 127
Legality of Bitcoins-Digital Currency? 130
Virtual Currency Real or Not 130
2012 timeline of the legality of Bitcoins around the world: 133
5. Governments and Digital Currency 142
Government -Vs- Bitcoin Anonymity 142
Canadian Mintchip And Bitcoins -Whats Up 147
The MintChip System 148
Hosted MintChip (Cloud Account) 148
Transactions-Sender and Receiver 149
MintChip Value 149
The MintChip – Value Creation 150
The MintChip – Security Overview 151
6. Business and Digital Currency 152
Merchant Tools for Digital Virtual Currency 152
A basic overview of the Payment Gateway follows 153
List of Features and Advantages 153
Mt.Gox “Pay Now” Button 154
Now supporting Magento! 154
Mt.Gox instant Merchant API 155
7. Cyber Crime Digital Currency 156
Cyber Crime Digital Currency 156
Cybercrime and Anonymous Cyber Economy 158
Impact of digital currency schema on financial ecosystem 158
Digital currency schemas 160
Money laundering 165
Theft of digital currency 170
Malware, the new generation of digital robbers 174
Bitcoin Botnet Mining 176
Deep Web, Botnet and Bitcoin mining … a dangerous mix 183
Counterfeit digital currency and double spending attacks 190
A race attack 192
The Finney attack 192
Bitcon and money laundering 194
Simple scenarios for money laundering 196
How To- Digital Money Laundering 199
Digital Currency ExchangeExchangers 2010 202
8. Bitcoin and Digital Virtual Currency 204
Get a Bitcoin Wallet and Make FREE-BitCoins Yourself 123 204
My Mining Machine 205
Bitcoin Miners Pools and how it works – 206
Bitcoin Wallet 210
Who, What and Where is a Bitcoin Wallet? 210
Bitcoin Qt 211
The beginning of the Bitcoin question 214
What is the Bitcoin Distribution Network? 214
Analysis of the model 216
The model 216
How does Bitcoin work? 218
Bitcoin exchange operates as a bank 222
Welcome to the Dot-BIT project 226
Current Miners 228
OZCoin – http://ozco.in 228
How Anonymous is Bitcoin? 231
What Users Can Do To Increase Anonymity 231
Bitcoin Mining Scam 233
The Bitcoin Miner Scam 234
Bitcoin Scam -How does it work? 235
Satoshi Nakamoto, the manhunt 238
Who developed Bitcoin Virtual Currency Schema? 240
9. Future of Digital Currency 246
Bitcoin and Digital Currency in the New World 246
Dominate The Future With Bitcoin 248
10. Geek Stuff Digital Currency tools and tricks 256
Address Tags 256
What Are Address Tags? 256
gATO Mining Rig – Information 258
ATI Radeon HD 4670: 259
Bitcoin Miner for Websites 260
Quick Start Guide to add the Miner to your website 260
Explaining the Miner to your visitors 261
Advanced Usage 263
gAtO gOt –Questions -Virtual Currency Real or Not- Reward Point, or bonus dollars and other forms of digital virtual currencies are normal for credit cards, online game sites, social networks and other specialty merchants and websites it all about true and branding. This new revenue stream is something that merchants are becoming aware of without knowing or understanding the legal aspects of this new digital currency world.
How does digital currency work in governments or does it – is it tax free, can I take campaign contributions with Bitcoins?
There are federal laws about digital currencies (gift cards) that impose inactivity fees, refunds and unused currency to states or regulatory statue in different states, now apply this to the global online stage. Then throw in the 2009 Credit Card Accountability Responsibility and Disclosure Act and the state and federal gift certificate taxes and were do Bitcoins and others fit in. This could be a big financial mistake for budget starve cities, states and countries it’s a worldwide problems.
So how does a merchant handle Digital currency if they decide to accept it for legal goods and service. For example My Book is for sale on my website using Mt.Gox BTC-Bitcoins – So how do I report my Bitcoins Sales 1.8 BTC so how does the Tax man handle the BTC-Bitcoin transaction?? If they accept Bitcoins then they are legal tender as long as I show sales and pay my Tax they now become legal tender by the State, and federal governments??? Right or is Bitcoin just like a Cash sales??? – These are the questions that need answers today, not tomorrow. I would think that governments may be losing revenue if they don’t think about how to handle virtual currencies transactions and incorporate them into the grand scheme of things (also known as red tape).
As smartphones and mobile pad devices increases worldwide more and more global customers are jumping on board. In the Asian gaming world it’s unstoppable people cannot not stop the online addiction and at a such a cheap price people in far away places are getting connected and this new market is a gem for corporations worldwide and e-currencies of any kind will be the new norm. This Jump in mobil devices and games alone will give digital currencies a gigantic boost. These new inexpensive mobile devices are taking farmers in remote villages and bringing them to our modern society very quickly.
Mobile devices are going worldwide today reaching the remotes corners of civilization and connecting everyone. And they want to spend $$$$$- money- $$$$$
This new mobile computer platform is changing the social and financial aspect of the worldwide landscape. All digital currencies that users accept in and believe in will be accepted. Merchants cry —I don’t care how you pay me as long as you pay me. The privacy aspect of this new currency is another thing that makes this very attractive. When anyone (governments/hackers) can pull your bank records and see every transaction you made.
They know everything every transaction? do they ? -did you know that with Bitcoins all transactions are visible – so we all know someone paid 1.2 BTC and transferred it to wallet_X. You can create a new -alias-wallet for every transaction and this way nobody will ever see your real wallet number. We can hide the wallets, encrypt it, back it up in paper, we can have many wallets and change them so keeping your transactions private is free it comes with the Bitcoin protocol. This is why governments say that terrorist use Bitcoins and other digital currencies to do their evil business,-NAW- well a suitcase full of CASH does the same thing and without and exchange rate to transfer it to my fiat currency… so that fear tactic does not work.. next
Consumers and merchants demand and acceptance of new digital currency has begun and the “jeane is out of the bottle”. These new digital virtual currencies can have very positive aspects in terms of financial innovation and the provision of additional payment alternatives for consumers and that is real competition.
Japans Moba-coins are a fine example: “While popular gambling-style kompu gatcha titles — in which users pay for coins to win prizes — are being eradicated from Japan, DeNA notes that its Moba-coin virtual currency was nonetheless used in a record $689 million worth of transactions in the country”. this revenue stream is only from 40-50 million users imagine when we all hop on this bandwagon.
There are many examples of others developing virtual currencies for gaming: NHN Japan offers a global gaming virtual currency called Line Coins; KakaoTalk in Korea offer virtual currencies called Chocos; and Tencent’s Q-Bi in China is firmly entrenched as a virtual currency. All of these are driven by mobile internet gaming services and the real killer will be when the major payments processors get into the virtual payments space.
The legality of Bitcoins have been debated all year long around the world -France, UK, Brazil, United Sates, California, New Hamshire, New York City, Germany, Finland, Italy and even Franklin, TN, USA.
As the price of Bitcoins hovers around $13-14-USD from a low of $4.5-USD this summer. It has attracted the interest of Forex and other players. With the European Central Bank (they control the EURO) report on Bitcoins to be a real thing are getting serious. Then a month later Bitcoin-Central ( French company, Paymium ) becomes the first Bitcoin Bank to carry out functions of payment service provider like PayPal and Dwolla unit of currency. Remember Bitcoin was built to operate completely outside the influence of governments and financial institutions but now Bitcoin is a financial institution.
Whether Bitcoin takes off or not is not the question, some virtual currencies is going to explode thanks to merchants, consumers, in-app gaming via social media and things that have not been created so far. You may disagree, but the aggregation of large amounts of small payments is effectively building a virtual currency system. go to https://blockchain.info and watch the transactions live, check out the “Bitcoin Top100 Recent Transaction”, I seen 124k, 150k 100 times in 1 hour-/ of course trying to track the wallets down to and IP is kinda impossible but mistakes can happen. https://blockchain.info/largest-recent-transactions
As we are seeing in New Hampshire allowance to take Bitcoin for campaign contributions put’s Bitcoins directly in the U.S bulls-eye. After this latest presidential election cycle here in American we saw that money is the language of politics and Bitcoins will play a role in our next presidential race 4 years away. Oh did I mention that Bitcoin is only 4 years old on Jan 9. 2013 imagine what the virtual digital currency and Bitcoins will look like in 2016. So are Bitcoins sales like a cash type transactions for governments and are they legal. I think that it’s still in debate but governments running deficits should allow any currency that brings in taxes to the coffers. Are Bitcoins Legal – stay tuned -gAtO OuT
Bitcoinica Rise and Fall from grace:
Superior Court of California, County of San Francisco
Case Number: CGC-12-522983
Title: BRIAN CARTMELL et al VS. BITCOINICA LP, ALSO KNOWN AS BITCOINICA et al
Cause of Action: CONTRACT/WARRANTY
Generated: Dec-18-2012 6:32 pm PST