November 2021 - cypherpunks - lists.cpunks.org

Cryptocurrency: Venezuelans Turn To Gold And Bitcoin
by grarpamp 01 Nov '21

01 Nov '21

https://mises.org/wire/venezuelans-turn-gold-nuggets-local-currency-implodes https://www.bloomberg.com/news/articles/2021-10-20/venezuelans-break-off-fl… Venezuelans Turn To Gold Nuggets As The Local Currency Implodes The Venezuelan government recently lopped off six zeros from its hyperinflating currency, the bolivar. The highest denomination currency note of 1 million bolivars, worth less than $0.25, was replaced by a one-bolivar note. At the same time, a 100-bolivar note, worth about $25.00, was introduced as the new highest denomination of the bolivar. The currency conversion was designed to spare the government the embarrassment of having to issue a 100-million bolivar note to enable people to purchases everyday items without having to carry around bundles of notes, given that the price of a loaf of bread had risen to 7 million old bolivars. Of course, the arbitrary scaling down of the denomination of the currency will not slow inflation, because the new currency notes can be printed just as cheaply as the old. The bolivar has already lost 73 percent of its value in 2021 alone and the IMF estimates the annual inflation rate will reach 5,500 percent by the end of 2021. It is not surprising, then, that all but the poorest Venezuelans have abandoned the bolivar as a medium of exchange, let alone a store of value or unit of account. US dollars are the exchange medium of choice in Caracas and other large cities, while the Colombian peso dominates along the Colombian border, particularly in the regional city of San Cristobal. The Brazilian real is current along the southern border with Brazil and the euro and cryptocurrencies have also found niche uses. What is wonderfully surprising is the spontaneous emergence of a pure gold currency in a remote region of southeastern Venezuela around the towns of Tumeremo and El Callao. The region abounds with precious metal ores and has a long history of luring prospectors and miners seeking their fortunes. Today, however, many of the larger mines are controlled by the government military, which is battling local gangs and guerillas. Despite the violence and lawlessness, jobless Venezuelans from far and wide are flooding into the area to work in thriving illegal mines in exchange for payment in gold nuggets. As a result, gold flakes, which are peeled off raw nuggets with hand tools, have become the currency of choice in the region with prices for commodities and services quoted in grams of gold. Half a gold gram buys you a one-night stay in a local hotel, while a meal for two at a Chinese restaurant and a haircut will cost you a quarter of a gram and an eighth of a gram, respectively. The gold flakes are carried in people’s pockets—usually wrapped in the nearly worthless bolivar notes. While some shops are equipped with scales to weigh the gold flakes, most sellers and their customers have become so familiar with the flakes that they evaluate them by sight. For example, the barber and his customer who transacted for the haircut agreed that three gold flakes equaled the one-eighth gram price (approximately $5.00). Gold is also starting to penetrate the nearby cities, such as the regional capital Ciudad Bolivar, as stores in shopping malls gladly accept the gold in exchange for dollars from miners who are seeking to cash out. For gold to become a full-blown currency that can viably compete with depreciating dollars and other foreign currencies, the raw nuggets need to be minted into convenient shapes and sizes and their weight and fineness certified by reputable firms. This means that any legal barriers to private mints must be eliminated. In addition, sales and capital gains taxes on gold must be abolished. Since it is highly unlikely that these measures will be implemented by the Maduro government, we can only cheer on the inroads made by the people’s gold flake currency.

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Cryptocurrency: IMF and GovBanks in Total Panic Over Bitcoin
by grarpamp 01 Nov '21

01 Nov '21

https://bitcoinmagazine.com/culture/why-the-imf-hates-bitcoin The IMF Hates Bitcoin Because It Loves Total Control https://bitcoinmagazine.com/culture/how-bitcoin-fixes-the-money-saves-the-w… https://www.imf.org/en/About/Factsheets/Sheets/2016/07/27/15/31/IMF-World-B… https://latest.13d.com/what-is-the-fourth-turning-envisioned-by-william-str… https://bitcoinmagazine.com/culture/global-inflation-heats-up-bitcoin-saves The IMF hates Bitcoin because its decentralized protocol and programmatic monetary policy defies the control the fund wants to implement on us all. The International Monetary Fund (IMF), along with a string of other financial institutions, really does not like Bitcoin. So, let’s do the usual, thinking through what the IMF is and why it even matters. WHAT IS THE IMF? The IMF and the World Bank are like the parallel universe versions of Shaggy and Scooby-Doo. They have no idea what they are doing, and yet the decisions they make determine how the show ends. The only difference is that no one wants to watch this version of the show, because Shaggy and Scoob keep debasing your currency into oblivion. Sticking with the IMF alone for this article, its mandate is as follows: “The IMF promotes monetary cooperation and provides policy advice and capacity development support to preserve global macroeconomic and financial stability and help countries build and maintain strong economies.” –IMF.org For oversimplification, let’s just imagine the IMF as dictating a short- and medium-term global monetary policy. It responds to what is in front of it at any given time and “influences” global markets. This, obviously, requires a large amount of control, or centralization, if you will. So, who makes up the IMF? “IMF loans are funded mainly by the pool of quota contributions that its members provide.” –IMF.org It’s not a secret that a bunch of rich people influence the entire globe’s monetary policy. This is public information that’s easy to find. Obviously, these guys have good reason to maintain the status quo. So, as I said, the IMF doesn’t like Bitcoin. But why? PREVENTING THE FOURTH TURNING For those unfamiliar, the “Fourth Turning” is a concept that states there is a cyclical progression in society, typically with 20 years or so in each turn, the last of which results in a crisis that topples the old systems of power and ushers in a new era. Bitcoin is often thought to be the crisis moment of the Fourth Turning by toppling the financial institutions of old (here’s a summary). Following that track, over the past two years, the world has been rocked by a pandemic that led to the debasement of many global currencies, the U.S dollar being a very clear one, as outlined in this article by Jerry Goddard. The IMF knows all of this and has made it clear that it means to maintain control. On July 29, an article was posted on the IMF blog, including the following quote: “There is a window of opportunity to maintain control over monetary and financial conditions, and to enhance market integration, financial inclusion, economic efficiency, productivity, and financial integrity.” –IMF blog It’s honestly kind of smug how indiscreet this statement is. Clearly, through central banks in nation states, the World Bank and other institutions, the goal of the IMF is to maintain control. In the classic Bitcoiner phraseology:” Bitcoin fixes this.” But seriously, this is what Bitcoin was made for. HOW DOES BITCOIN FIX THIS? I’ll spare everyone the details of rehashing what Bitcoin is. Let’s stick to the basics: 1. Bitcoin is decentralized. There’s no group of developers, miners or businesses that can band together to manipulate the protocol. If consensus is not met, the hell with it, it isn’t happening. Understandably, the IMF, which settles short- and medium-term economic issues between countries by issuing out loans based on the currencies that it constantly has a hand in debasing, probably doesn’t want the money supply controlled by an unbeatable algorithm that makes you play the game the way Bitcoin wants to play. 2. Bitcoin has a programmatic monetary policy. We know how many bitcoin exist now, we know how many will exist in total and we know when the new bitcoin will be issued. We know all of this, and it’s publicly available to anyone willing to look. Not being able to control the supply or its issuance is a crucial concern for any central authority attempting to maintain power in the legacy system. They cannot control the protocol or the system of Bitcoin, and they cannot control the currency of bitcoin, either. These would be transparent reasons for not wanting it to succeed. THE IMF WANTS TO INITIATE BITCOIN PANIC “Digital money must be designed, regulated, and provided so that governments maintain control over monetary policy to stabilize prices, and over capital flows to stabilize exchange rates.” –IMF blog Read that first part again: “Digital money must be designed” for government control. The IMF will claim this is for consumer protection. We hear about the impending regulations on the darkening horizon constantly. And when discussing digital assets, the IMF made sure to speak directly on Bitcoin later on in the post: “The least stable of the lot, which hardly qualify as money, are cryptoassets (such as Bitcoin) that are unbacked and subject to the whims of market forces.” –IMF blog The only cryptocurrency named was bitcoin. (I hear you maxis, I know you don’t like us to call Bitcoin “crypto.”) It was named because it is feared. It stands before the IMF as an unstoppable algorithm designed as a relic of the new age. Debasement and financial instruments that enable it will fade to forgotten dust as a bygone age is swallowed whole, along with the financial legacy framework. IT’S NOT JUST ABOUT CONTROL It’s about IMF’s funding too. What happens when a governing body needs to raise capital quickly? That’s right, it issues garbage bonds. Well, what happens if other products result in larger yields in a shorter time frame, such as what is happening in the world of stablecoins and DeFi? “Countries are concerned with several scenarios. Substantial CBDC or stablecoin demand might absorb a large share of government bonds. This could affect the yield curve, and in the case of stablecoins whose reserves cannot be lent out, the availability of collateral. And stablecoins fully backed by central bank reserves could immobilize and segregate central bank liquidity which would otherwise be freely lent between banks to satisfy daily payment shocks.” –IMF, “The Rise Of Digital Money” For the United States, this is what is referred to as the “Federal Funds Rate.” This is the rate at which banks borrow money from each other or the central bank overnight to meet a reserve requirement (a percentage of the deposits you hold), each night. As you can imagine, the loss of bonds and the loss of another revenue stream via the Federal Funds Rate isn’t something any centralized player wants. BUT THAT’S NOT ALL, FOLKS! In December 2020, the IMF put up a post on its blog that discussed using your browser history to affect your credit score. “As Big Techs gather data, manage customer relations through ubiquitous digital platforms (as opposed to networks of physical branches), and become essential to better design and customize financial services, they will keep an increasing share of the producer surplus.” –IMF, “What Is Really New In Fintech” The IMF is ecstatic to talk to all of us about the opportunity to add every single thing we do on the internet to be calculated into our ability to get a credit card. It doesn’t want to simply have access to your finances and control that information on a global market anymore. No, that got too boring. Now, it wants to control who you are and control every digital action you make. Can you guess if Bitcoin fixes this?

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Malware WinDealer used by LuoYu Attack Group
by zeynepaydogan 01 Nov '21

01 Nov '21

During [JSAC2021](https://jsac.jpcert.or.jp/archive/2021/en/index.html) on 28 January 2021, there was a presentation about an attack group LuoYu, which targets Korean and Japanese organisations since 2014 [1](https://blogs.jpcert.or.jp/en/2021/10/windealer.html#1)[2](https://blogs.jpcert.or.jp/en/2021/10/windealer.html#2). Recently, JPCERT/CC came across malware WinDealer used by this group. This article introduces some findings of our analysis https://blogs.jpcert.or.jp/en/2021/10/windealer.html

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Cryptocurrency: AUS to Approve Spot ETFs, US Approves Shit Futures ETFs
by grarpamp 01 Nov '21

01 Nov '21

Cash settled crypto futures ETFs, even crypto settled futures ETFs, do not result in much actual lockup or float of physical coin, plus they degrade, etc. If you want the coin, buy the real fucking coin, or at least be a nohodler and buy physical funds. Not your keys, not your crypto. US GovBank obviously approved futures in attempt to "tame" and tank prices and kill crypto, but cryptos will evolve faster than GovBanksters can approve their own GovBank ShitFunds. Australia's Top Securities Regulator Says It Will Approve Bitcoin ETFs https://www.businessinsider.com.au/asic-greenlights-bitcoin-etf https://www.smh.com.au/business/companies/asic-gives-trading-of-bitcoin-eth… The Australian Securities And Investments Commission (ASIC) has given early approval to fund managers seeking to launch Bitcoin spot exchange traded funds (ETFs), according to Business Insider. Many Australian funds have already begun the application process after ASIC green lit the spot ETFs. After months of consulting with experts in the Bitcoin and crypto industry, the corporate regulators issued new guidance for the space, and detailed a draft of regulatory requirements for funds eager to offer Bitcoin spot ETFs. In a statement on Friday, ASIC wrote, “We recognise the interest in, and demand for, ETPs and other investment products that hold crypto-assets in Australia.” One requirement for fund managers is they will need to appoint a Bitcoin custodial expert who is “required to ensure crypto-assets are held in safe and secure custody”. Safe and secure custody includes storing Bitcoin private keys in air-gapped cold storage, through wallets which are subject to “robust physical security practices.” Redundant backups of seed phrases stored in geographically separate locations are also required, according to the Sydney Morning Herald. Funds must also front a minimum of $10 million in net tangible assets to launch a Bitcoin ETF, along with adhering to other pricing and risk management obligations. ASIC commented on why Bitcoin is one of just two newly approved assets, “We proposed this because we recognize that crypto-assets vary greatly in their features, characteristics, risks and how they operate, and we consider that only some may be appropriate to be held by a registered managed investment scheme.” This comes just one week after Valkyrie and ProShares launched the first Bitcoin futures ETFs in the United States. Many in the U.S. are eagerly awaiting the approval of a Bitcoin spot-based ETF, which is considered to be a safer investment vehicle that can more closely track the price of Bitcoin. In any case, Australia's coming spot ETFs are a step in the right direction in terms of educating traditional investors about Bitcoin and spreading adoption.

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The Verge: The US Copyright Office just struck a blow supporting right to repair
by jim bell 01 Nov '21

01 Nov '21

The Verge: The US Copyright Office just struck a blow supporting right to repair. https://www.theverge.com/2021/10/27/22747310/us-copyright-office-dmca-secti…

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PINNED Tweet
by professor rat 01 Nov '21

01 Nov '21

Cypherpunks collapse governments. Subject: Everyone a remailer: Everyone a Mint: Everyone an assassin https://marc.info/?l=cypherpunks&m=100872510706876&w=2 Strong-crypto, digital money, anonymous networks, pseudonyms, zero- knowledge proofs, reputations, information-markets, netwar, collapse-of-governments. http://nakamotoinstitute.org/static/docs/cyphernomicon.txt What forbids us translating the freedom afforded by the Internet to ordinary life? I think that blockchains will replace armies for national defense, because a blockchain-based assassination market will be created…" Zach. CryptoGo To launch attacks under favorable circumstances is not only every anarchist revolutionary’s right, but their plain duty. The killing of spies, policemen, commissars, the blowing up of police stations, the liberation of prisoners, the seizure of government funds for the needs of the uprising—such operations are already being carried out wherever insurrection is rife. TIMOTHY " An anonymous computerized market will even make possible abhorrent markets for assassinations and extortion " C. MAY 1992 TIM " I guess now that the Pentagon is setting up a murder pool it can't be illegal for us to do it " MAY. 2003

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