Intel is entering the blockchain mining market with an upcoming GPU capable of mining Bitcoin. From a report: Intel insists the effort won't put a strain energy supplies or deprive consumers of chips. The goal is to create the most energy-efficient blockchain mining equipment on the planet, it says. "We expect that our circuit innovations will deliver a blockchain accelerator that has over 1,000x better performance per watt than mainstream GPUs for SHA-256 based mining," Intel's General Manager for Graphics, Raja Koduri, said in the announcement. (SHA-256 is a reference to the mining algorithm used to create Bitcoins.)

News of Intel's blockchain-mining effort first emerged last month after the ISSCC technology conference posted details about an upcoming Intel presentation titled: "Bonanza Mine: An Ultra-Low-Voltage Energy-Efficient Bitcoin Mining ASIC." ASICs are chips designed for a specific purpose, and also refer to dedicated hardware to mine Bitcoin. Friday's announcement from Koduri added that Intel is establishing a new "Custom Compute Group" to create chip platforms optimized for customers' workloads, including for blockchains.

An anonymous reader quotes a report from Bitcoin Magazine: Users of Block's mobile payments platform Cash App can now make instant and free bitcoin payments through the Lightning Network, the company tweeted on Monday. The integration of Bitcoin's second-layer protocol for faster and cheaper transactions was made possible by the Lightning Development Kit, an open-source project developed by another company owned by Block, Spiral. The Lightning Development Kit (LDK) is a flexible Lightning implementation geared towards developers who want to integrate Bitcoin's Lightning Network into their applications frictionlessly. It abstracts away complexities of Lightning, enabling developers to integrate the network easier and faster into their apps.

Jack Dorsey said in a fireside chat last week with Michael Saylor, the CEO of software intelligence company MicroStrategy, that having Cash App integrate Lightning through the Spiral's work was one of the proudest moments of his career. [...] Despite critics saying that Bitcoin cannot be used as a means of exchange due to its base layer's slow settlements, Lightning empowers Bitcoin to handle the smallest of payments for little to no cost. Now, all Cash App users can also leverage Lightning to send small payments instantly and for free. However, it seems that Cash App cannot yet receive Lightning transactions itself -- only send them.

Americans tuning in to the Super Bowl on Sunday will be inundated with ads from cryptocurrency companies, including the trading platform FTX, which plans to give away millions of dollars in bitcoin. From a report: FTX has spent heavily on sports partnerships to try to make itself a brand name in crypto, including an ad with NFL star Tom Brady, a sponsorship with Major League Baseball and a $135 million deal to rename the Miami Heat's stadium the FTX Arena. Co-founder and chief executive Sam Bankman-Fried, who recently moved FTX's headquarters from Hong Kong to the Bahamas, says the ads are as much about courting U.S. regulators as getting customers to download its trading app.

"We want to make sure that we're painting, hopefully, a healthy image of ourselves and the industry," said Bankman-Fried, 29, who has a net worth of more than $24 billion, according to Forbes. "We're optimistic that we're going to be able to grow our U.S. business -- a lot of that is working with U.S. regulators on bringing new products to market." The crypto industry includes virtual currencies such as bitcoin and Ether, as well as non-fungible tokens, or NFTs, that can provide proof of ownership for assets such as digital images or weapons within video games. Both cryptocurrencies and NFTs are built using an information-storing technology called blockchain.

The Justice Department announced Tuesday morning it seized more than $3.6 billion in allegedly stolen cryptocurrency linked to the 2016 hack of Bitfinex. As part of the operation, authorities detained a New York couple on allegations they planned to launder the digital goods. From a report: It marks the agency's largest financial seizure ever, Deputy Attorney General Lisa Monaco said in a statement. Officials said they arrested Ilya Lichtenstein, 34, and his wife, Heather Morgan, 31 and who also goes by the alias "razzlekhan". The couple is scheduled to make their initial appearances in federal court later in the day. Authorities accuse the pair of trying to launder the proceeds of 119,754 bitcoin that were stolen from Bitfinex's platform after a hacker breached Bitfinex's systems and initiated more than 2,000 unauthorized transactions. Prosecutors allege that the transactions sent the stolen bitcoin to Lichtenstein's digital wallet. Officials said they were able to seize more than 94,000 bitcoin, which was valued around $3.6 billion at the time of seizure. In all, the total stolen bitcoin is presently valued at approximately $4.5 billion, according to the agency. A 2019 rap video by Morgan.

A group of major cryptocurrency firms including Coinbase, Circle, Anchorage Digital and Huobi Global are forming a new coalition aimed at cracking down on market manipulation in an effort to instill trust in the burgeoning digital asset industry. From a report: The Crypto Market Integrity Coalition, which was convened by risk-monitoring software company Solidus Labs, is also urging digital currency companies to sign a market integrity pledge that acknowledges the potential for fraud in the cryptocurrency space and the need for the industry to protect investors. "It really is about recognizing that you need entities that are focused on a fair and orderly system here, and really trying to prevent the abuses that can happen if you're not paying attention," said Kathy Kraninger, vice president of regulatory affairs at Solidus Labs and former director of the Consumer Financial Protection Bureau. The new alliance and pledge comes as regulators remain concerned the new market is safe for investors, despite its surge in popularity. The Securities and Exchange Commission has cited the potential for market manipulation as one of the primary reasons for rejecting several applications for spot bitcoin exchange-traded funds.

CNBC interviewed six adult entertainers about cryptocurrency use, including webcam performer Allie Eve Knox, who became interested in cryptocurrencies after "several vendors, including PayPal, Square Cash, and Venmo, shut down her accounts because of red flags related to sex work." [T]he biggest attraction was having total and irreversible ownership over the money she had earned. "I could cash it out. I could hold it. I could watch it go up and down," said Knox. "It was mine." Knox is one of many adult workers who say that cryptocurrencies like bitcoin give them a sense of security and independence as banks, credit card companies, and payment processors tighten regulations around adult content. With crypto, there is no middleman making a judgment call on which transactions are acceptable....

"The majority of sex work in the U.S. is legal. It's not dealt with fairly, but it's still legal," explained Kristen DiAngelo, an activist and Sacramento-based sex worker who has spent over four decades in the industry.... Some escorts — who charge anywhere from $1,700 an hour to $11,000 for a full 24 hours — now explicitly say in their ads that they prefer to be paid in bitcoin or ethereum.... DiAngelo tells CNBC she will never forget the first time her bank account was closed without warning.... DiAngelo called Citibank and learned that her account had been frozen and she should tear up her credit card. DiAngelo says the customer service rep told her that they weren't "at liberty" to tell her why it had happened, and she would have to write a formal letter to request additional details.

They did, however, say that she was still responsible for any money owed.... There was particular irony in her situation, as DiAngelo did a stint as a stockbroker at Citibank in the 1980âs, always pays her taxes, and has a credit score over 800.... [S]he brought her money to another bank. When they also flagged and closed her account, she moved on to the next. After being shut out of a third bank, DiAngelo says she turned exclusively to bitcoin for her online banking needs. Nearly every sex worker interviewed for this story mentioned platform hopping....

Nowadays, it's par for the course to see adult websites accept cryptocurrency, and some deal in it exclusively... Some adult media companies have even turned to blockchain technology to develop their own digital currencies and platforms....

Sex workers who do accept crypto also have to contend with volatile prices, which can cut into their earnings. For instance, bitcoin is down more than 40% from its November all-time high.
Knox also tells CNBC she's sold photos of herself as NFTs on sites like OpenSea. "Thus far, the most she's gotten from a single sale is $1,200 worth of ethereum."

ZDNet reporter Steven Vaughan-Nichols has solved the mystery of whether Linus Torvalds is Bitcoin creator Satoshi Nakamoto: no.

But what's interesting is why the reporter had to ask in the first place: In a GitHub Linux kernel repository, it appeared Torvalds had changed a single line in the Linux Kernel. The change: 'Name = I am Satoshi....' Torvalds himself has been suspected of being Nakamoto several times over the years. But no one who knows him well, and I consider myself one of those, have ever thought he was the Bitcoin mastermind. It's just so, so not Linus.

So, while many people were discussing the "evidence," I decided just to ask Linus. Here's what he had to say.

"I'm afraid that is just a jokester taking advantage of how GitHub works — it shares git objects between different repositories, so you can use the SHA1 'name' of an object to specify something you did in your own tree, and then use my repository as the web name, and make it look like your object is in my tree...." Torvalds went on, "So the "torvalds/linux" part of that URL is basically just empty noise, designed to fool people into thinking it's in my tree. You could replace it with [another] GitHub repository name — the actual relevant part is just the SHA1 hash part...."

"So no," Torvalds concluded, "I'm sadly not the owner of a huge stash of original bitcoins."

And, there you have it, folks. Nakamoto's real identity remains a secret.
Late last year Vaughan-Nichols also reported on what happened when Linux Foundation executive director Jim Zemlin suggested Torvalds sell an NFT of the 1991 email that first announced Linux to the world .

"An amused and appalled Torvalds replied, "I'm staying out of the whole craziness with crypto and NFTs. Those people are cuckoo!"

The government of El Salvador on Monday rejected a recommendation by the International Monetary Fund to drop Bitcoin as legal tender in the Central American country. ABC News reports: Treasury Minister Alejandro Zelaya angrily said that "no international organization is going to make us do anything, anything at all." Zelaya told a local television station that Bitcoin is an issue of "sovereignty." "Countries are sovereign nations and they take sovereign decisions about public policy," he said.

The IMF recommended last week that El Salvador dissolve the $150 million trust fund it created when it made the cryptocurrency legal tender and return any of those unused funds to its treasury. The agency cited concerns about the volatility of Bitcoin prices, and the possibility of criminals using the cryptocurrency. After nearly doubling in value late last year, Bitcoin has plunged in value. Zelaya said El Salvador has complied with all financial transaction and money laundering rules.

Block Chief Executive Officer Jack Dorsey criticized Meta Platforms' failed cryptocurrency project, Diem, saying the company's time would have been better spent focused on advancing Bitcoin. From a report: Dorsey said Tuesday that Meta's approach to Diem, a proposed cryptocurrency formerly known as Libra that came to an unceremonious end this week, wasn't open enough. Instead, Dorsey says Meta was too focused on driving people to its own suite of products, like WhatsApp and Instagram.

"They tried to create a currency that was owned by Facebook -- probably for the right reasons, probably for noble reasons -- but there were also some reasons that would indicate trying to get more and more people onto the Facebook ecosystem," Dorsey said Tuesday at the MicroStrategy World conference. "They did that instead of using an open protocol and standard like Bitcoin. Hopefully they learned a lot, but I think there was a lot of wasted effort and time," he added. "Those two years or three years, or however long it's been, could have been spent making Bitcoin more accessible for more people around the world, which would also benefit their Messenger product and Instagram and WhatsApp."

Software engineer Molly White has been a Wikipedia editor since 2006 (and also served several terms on the site's Arbitration Committee). White is now a Wikipedia administrator and functionary — and just published an Opinion piece opposing the continued acceptance of cryptocurrency donations for the Wikimedia Foundation.

Here's an excerpt from White's remarks in The Signpost, an online newspaper for (English-language) Wikipedia that's been published online since 2005 with contributions from Wikipedia editors:

When the Wikimedia Foundation first began accepting cryptocurrency donations in 2014, it was still fairly nascent technology. Cryptocurrencies resonated with many in free and open-source software communities and in the Wikimedia movement more specifically, and cryptocurrency projects tended to share similar ideals: privacy, anonymity, decentralization, freedom. In more recent history, cryptocurrencies and blockchain-based technologies more generally have morphed into something very different from the ideals of their youth. Some proponents continue to speak about freedom and decentralization, but the space has overwhelmingly become an opportunity for self-enrichment at the expense of others and the environment.

Cryptomining operations set up shop in locations with low energy costs — until late 2021, most bitcoin mining happened in China, where it relied on coal so heavily that the resulting coal mining accidents from increased demand contributed to a crackdown on the practice. Some of those miners moved to Kazakhstan, where they were using the nation's supply of lignite (an extremely harmful form of coal) to produce 18% of the global computing power behind bitcoin in January. Bitcoin mining alone rivals the total energy use of countries like the Netherlands or Finland;456 emissions from other popular cryptocurrencies like ethereum only compound the problem.

Furthermore, in recent years, more and more enthusiasts are being convinced that they too might strike it rich by buying in early to the next bitcoin or the next ethereum. But unfortunately, the playing field more often resembles a landscape with scammers and marks. Many are convinced that purchasing these currencies is an "investment", rather than risky speculation that would be more accurately described as gambling if not outright investment fraud. People are regularly scammed for enormous sums of money, and the anonymous, nominally decentralized, and largely unregulated nature of the space offers them little recourse.

The purported benefits of cryptocurrencies have also been largely unrealized. Rather than empowering the unbanked and distributing wealth to those in need, as once described, money has been hoarded in incredible amounts by a few wealthy individuals — 0.01% of bitcoin holders collectively own 27% of bitcoin in circulation, equivalent to around $232 billion. Furthermore, the underlying technology is enormously slow and difficult to scale when compared to databases used in most modern computing, so many technologies built around blockchains have spawned new, centralized solutions to the problems the blockchains themselves have introduced. As a result, the decentralization of the web that was supposed to result from the adoption of blockchain technologies has only resulted in the centralization of power in a handful of companies and venture capital firms.

The Wikimedia Foundation's acceptance of cryptocurrency donations has had minimal returns, and no longer accepting them is unlikely to have a major impact on the Foundation's ability to fundraise. In 2021, the Wikimedia Foundation only received about $130,000 in donations via cryptocurrency, making it one of their smallest revenue channels at only 0.08% of total donations. The benefits to donors are also minimal: the anonymity that might normally be offered to those who use cryptocurrencies is largely nullified by the WMF's cryptocurrency payment processor, BitPay, which requires prospective donors to disclose their identities.

The most impactful result of the WMF's acceptance of cryptocurrencies has been to normalize their use. As the technology space around blockchains has evolved over the years, so too should we. Cryptocurrencies have been joined by a bubble of predatory, inherently harmful technologies that take advantage of individuals and contribute to the destruction of our environment. It is no longer ethical for the Wikimedia Foundation to tacitly endorse a technology that incentivizes the predatory behavior that has become rampant in the cryptocurrency space in the past few years. I have asked that they stop doing so in an Request for Comments on meta.

"Focus on the horse race and the flashy news and you'll miss the real stories," argues Mike Loukides, the content strategy VP at O'Reilly Media. So instead he shares trends observed on O'Reilly's learning platform in the first nine months of 2021: While new technologies may appear on the scene suddenly, the long, slow process of making things that work rarely attracts as much attention. We start with an explosion of fantastic achievements that seem like science fiction — imagine, GPT-3 can write stories! — but that burst of activity is followed by the process of putting that science fiction into production, of turning it into real products that work reliably, consistently, and fairly. AI is making that transition now; we can see it in our data. But what other transitions are in progress...?

Important signals often appear in technologies that have been fairly stable. For example, interest in security, after being steady for a few years, has suddenly jumped up, partly due to some spectacular ransomware attacks. What's important for us isn't the newsworthy attacks but the concomitant surge of interest in security practices — in protecting personal and corporate assets against criminal attackers. That surge is belated but healthy.... Usage of content about ransomware has almost tripled (270% increase). Content about privacy is up 90%; threat modeling is up 58%; identity is up 50%; application security is up 45%; malware is up 34%; and zero trust is up 23%. Safety of the supply chain isn't yet appearing as a security topic, but usage of content about supply chain management has seen a healthy 30% increase....

Another important sign is that usage of content about compliance and governance was significantly up (30% and 35%, respectively). This kind of content is frequently a hard sell to a technical audience, but that may be changing.... This increase points to a growing sense that the technology industry has gotten a regulatory free ride and that free ride is coming to an end. Whether it's stockholders, users, or government agencies who demand accountability, enterprises will be held accountable. Our data shows that they're getting the message.

According to a study by UC Berkeley's School of Information, cybersecurity salaries have crept slightly ahead of programmer salaries in most states, suggesting increased demand for security professionals. And an increase in demand suggests the need for training materials to prepare people to supply that demand. We saw that play out on our platform....

C++ has grown significantly (13%) in the past year, with usage that is roughly twice C's. (Usage of content about C is essentially flat, down 3%.) We know that C++ dominates game programming, but we suspect that it's also coming to dominate embedded systems, which is really just a more formal way to say "internet of things." We also suspect (but don't know) that C++ is becoming more widely used to develop microservices. On the other hand, while C has traditionally been the language of tool developers (all of the Unix and Linux utilities are written in C), that role may have moved on to newer languages like Go and Rust. Go and Rust continue to grow. Usage of content about Go is up 23% since last year, and Rust is up 31%. This growth continues a trend that we noticed last year, when Go was up 16% and Rust was up 94%....

Both Rust and Go are here to stay. Rust reflects significantly new ways of thinking about memory management and concurrency. And in addition to providing a clean and relatively simple model for concurrency, Go represents a turn from languages that have become increasingly complex with every new release.
Other highlights from their report:

• "Quantum computing remains a topic of interest. Units viewed is still small, but year-over-year growth is 39%. That's not bad for a technology that, honestly, hasn't been invented yet...."

• "Whether it's the future of finance or history's biggest Ponzi scheme, use of content about cryptocurrency is up 271%, with content about the cryptocurrencies Bitcoin and Ethereum (ether) up 166% and 185% respectively...."

• "Use of JavaScript content on our platform is surprisingly low — though use of content on TypeScript (a version of JavaScript with optional static typing) is up.... Even with 19% growth, TypeScript has a ways to go before it catches up; TypeScript content usage is roughly a quarter of JavaScript's..."

• "Python, Java, and JavaScript are still the leaders, with Java up 4%, Python down 6%, and JavaScript down 3%...."

• "Finally, look at the units viewed for Linux: it's second only to Kubernetes. While down very slightly in 2021, we don't believe that's significant. Linux has long been the most widely used server operating system, and it's not ceding that top spot soon."

At least 26 public corporations are holding bitcoin on their balance sheets, according to data compiled by cryptocurrency analytics firm CoinGecko. Since the price of cryptocurrencies began to plummet in November, they've collectively lost nearly $7 billion. Quartz reports: The price of Bitcoin peaked above $67,000 on Nov. 8, but has since fallen 46%. Corporate crypto holdings for the largest 26 totaled at least $14.7 billion at the height of the rally. As of Jan. 26, they're worth $8 billion. The companies -- which include electric carmaker Tesla, financial services startup Square, and South Korean video game developer Nexon, along with a slew of crypto miners, exchanges, and investment firms -- hold 217,240 bitcoin. That's a little more than 1% of all the bitcoin in the world.

Texas governor candidate Don Huffines said he is "committed to making Texas the citadel for bitcoin and has released a plan detailing the effort. "As a leader in innovation, Texas needs to lead the nation in Bitcoin & cryptocurrency adoption," it reads. "Not only by acknowledging, supporting, and promoting the industry, but by also using our natural resources and the power of our state to legitimize Bitcoin as a store of value, medium of exchange, and unit of account."

Huffines says the state must stop the federal government from "discriminating against Bitcoin holders" and "trying to shut down or limit freedom-loving Texans investing in Bitcoin." Not only does the plan call for a declaration making bitcoin a legal tender but it calls for establishing the Bitcoin & Cryptocurrency Policy Commission, "which will be tasked with identifying the utility of currencies that can be recognized as accepted Texas currency."

Do you agree with what Huffines proposes or do you think he's simply pandering for votes by capitalizing on the red-hot crypto craze?

This new political breed accepts paychecks in Bitcoin. The mayors also want to use buzzy new tech like NFTs to raise money for public projects. From a report: The ballooning popularity of Bitcoin and other digital currencies has given rise to a strange new political breed: the crypto mayor. Eric Adams, New York's new mayor, accepted his first paycheck in Bitcoin and another cryptocurrency, Ether. Francis Suarez, Miami's mayor, headlines crypto conferences. Now even mayors of smaller towns are trying to incorporate crypto into municipal government, courting start-ups and experimenting with buzzy new technologies like nonfungible tokens, or NFTs, to raise money for public projects. Their growing ranks reflect the increasing mainstream acceptance of digital currencies, which are highly volatile and have fallen in value in recent days. The mayors' embrace of crypto is also a recognition that its underlying blockchain technology -- essentially a distributed ledger system -- may create new revenue streams for cities and reshape some basic functions of local government.

"Mayors rationally want to attract high-income citizens who pay their taxes and impose few costs on the municipality," said Joseph Grundfest, a business professor at Stanford. "Crypto geeks fit this bill perfectly." But as with many ambitious crypto projects, it's unclear whether these local initiatives will ultimately amount to much. So far, most are either largely symbolic or largely theoretical. And the mayors' aims are partly political: Crypto boosterism has a useful bipartisan appeal, garnering popularity among both antigovernment conservatives and socially liberal tech moguls. "You can do these things because you want to be associated with dudes with AR-15s, or you want to be associated with Meta," said Finn Brunton, a technology studies professor at the University of California, Davis, who wrote a 2019 book about the history of crypto. "A lot of it is hype and hot air."

ryanw shares a report from BleepingComputer: A new DeadBolt ransomware group is encrypting QNAP NAS devices worldwide using what they claim is a zero-day vulnerability in the device's software. The attacks started today, January 25th, with QNAP devices suddenly finding their files encrypted and file names appended with a .deadbolt file extension. Instead of creating ransom notes in each folder on the device, the QNAP device's login page is hijacked to display a screen stating, "WARNING: Your files have been locked by DeadBolt." This screen informs the victim that they should pay 0.03 bitcoins (approximately $1,100) to an enclosed Bitcoin address unique to each victim.

After payment is made, the threat actors claim they will make a follow-up transaction to the same address that includes the decryption key. This decryption key can then be entered into the screen to decrypt the device's files. At this time, there is no confirmation that paying a ransom will result in receiving a decryption key or that users will be able to decrypt files. The DeadBolt ransomware gang is offering the full details of the alleged zero-day vulnerability if QNAP pays them 5 Bitcoins worth $184,000. They are also willing to sell QNAP the master decryption key that can decrypt the files for all affected victims and the zero-day info for 50 bitcoins, or approximately $1.85 million.

MattSparkes shares a report from New Scientist: Quantum computers would need to become around one million times larger than they are today in order to break the SHA-256 algorithm that secures bitcoin, which would put the cryptocurrency at risk from hackers. Breaking this impenetrable code is essentially impossible for ordinary computers, but quantum computers, which can exploit the properties of quantum physics to speed up some calculations, could theoretically crack it open.

[Mark Webber at the University of Sussex, UK, and his colleagues] calculated that breaking bitcoin's encryption in this 10 minute window would require a quantum computer with 1.9 billion qubits, while cracking it in an hour would require a machine with 317 million qubits. Even allowing for a whole day, this figure only drops to 13 million qubits. This is reassuring news for bitcoin owners because current machines have only a tiny fraction of this -- IBM's record-breaking superconducting quantum computer has only 127 qubits, so devices would need to become a million times larger to threaten the cryptocurrency, something Webber says is unlikely to happen for a decade. The study has been published in the journal AVS Quantum Science.

The International Monetary Fund is pushing El Salvador to ditch bitcoin as legal tender, according to a statement released on Tuesday. CNBC reports: IMF directors "stressed that there are large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities." The report, which was published after bilateral talks with El Salvador, went on to "urge" authorities to narrow the scope of its bitcoin law by removing bitcoin's status as legal money. In Sept. 2021, the Central American nation became the world's first country to adopt the cryptocurrency as legal tender, alongside the U.S. dollar.

The IMF report went on to say that some directors had expressed concern over the risks associated with issuing bitcoin-backed bonds, referring to the president's plan to raise $1 billion via a "Bitcoin Bond" in partnership with Blockstream, a digital assets infrastructure company. Part of El Salvador's nationwide move into bitcoin also involved launching a national virtual wallet called Chivo that which offers no-fee transactions and allows for quick cross-border payments. For a country where 70% of citizens do not have access to traditional financial services, Chivo is meant to offer a convenient onramp for those who have never been a part of the banking system.

IMF directors agreed that the Chivo e-wallet could facilitate digital means of payment, thereby helping to "boost financial inclusion," though they emphasized the need for "strict regulation and oversight." Many Salvadorans have reported cases of identity theft, in which hackers use their national ID number to open a Chivo Wallet, in order to claim the free $30 worth of bitcoin offered by the government as an incentive to open a digital wallet. For months, the IMF has bemoaned Bukele's bitcoin experiment. [...] El Salvador has also been trying since early 2021 to secure a $1.3 billion loan from the IMF -- an effort which appears to have soured over this bitcoin row. The country will need to figure out some other backstop to shore up its finances. The IMF predicts that under current policies, public debt will rise to 96% of GDP by 20216, putting the country on "an unsustainable path."

First, he forgot his PIN -- then he started looking for hackers. From a report: In early 2018, Dan Reich and a friend decided to spend $50,000 in Bitcoin on a batch of Theta tokens, a new cryptocurrency then worth just 21 cents apiece. At first, they held the tokens with an exchange based in China, but within weeks, a broad crackdown on cryptocurrency by the Chinese government meant they would soon lose access to the exchange, so they had to transfer everything to a hardware wallet. Reich and his friend chose a Trezor One hardware wallet, set up a PIN, and then got busy with life and forgot about it. By the end of that year, the token had sunk to less than a quarter of its value, come back up, and then crashed again. Reich decided he wanted to cash out, but his friend had lost the paper where he'd written the PIN and couldn't remember the digits. They tried guessing what they thought was a four-digit PIN (it was actually five), but after each failed attempt, the wallet doubled the wait time before they could guess again. After 16 guesses, the data on the wallet would automatically erase. When they reached a dozen tries, they stopped, afraid to go further. Reich gave up and wrote off the money in his mind. He was willing to take the loss -- until the price started to rise again. From a low of around $12,000, the value of their tokens started to skyrocket. By the end of 2020, it would be worth more than $400,000, rising briefly to over $3 million. It would be hard to get into the wallet without the PIN -- but it wasn't impossible.

And with potentially millions on the line, Reich and his friend vowed to find a way inside. The only way to own cryptocurrency on the blockchain is to have sole possession of a private key associated with a block of currency -- but managing those keys has been a, sometimes high-stakes, challenge from the beginning. [...] The cryptocurrency data firm Chainalysis estimates that more than 3.7 million Bitcoins worth $66.5 billion are likely lost to owners. Currency can be lost for many reasons: the computer or phone storing a software wallet is stolen or crashes and the wallet is unrecoverable; the owner inadvertently throws their hardware wallet away; or the owner forgets their PIN or dies without passing it to family members. As the value of their inaccessible tokens rapidly rose in 2020, Reich and his friend were desperate to crack their wallet. They searched online until they found a 2018 conference talk from three hardware experts who discovered a way to access the key in a Trezor wallet without knowing the PIN. The engineers declined to help them, but it gave Reich hope. "We at least knew that it was possible and had some directional idea of how it could be done," Reich says. Then they found a financier in Switzerland who claimed he had associates in France who could crack the wallet in a lab. But there was a catch: Reich couldn't know their names or go to the lab. He'd have to hand off his wallet to the financier in Switzerland, who would take it to his French associates. It was a crazy idea with a lot of risks, but Reich and his friend were desperate. Gripping story.

The cryptocurrency market had around $130 billion wiped off its value over the last 24 hours as major digital coins continued their multi-day sell-off. From a report: Bitcoin was last down around 4% at $33,755.57, according to Coin Metrics, while Ether plunged 7% to $2,239.08. Earlier in the morning both fell to their lowest points since July and are each about 50% off their all-time highs. Cryptocurrencies are moving in tandem with stocks, which have continued to fall since the beginning of the year and just came off of their worst week since March 2020. Investors have been selling risk assets like technology stocks as they prepare for tighter monetary policy from the U.S. Federal Reserve and higher interest rates. "Looking forward, our most immediate concern is how equities markets respond to this week's Fed meeting," said Leah Wald, CEO at digital asset investment manager Valkyrie Funds. "A consolidation in traditional assets would catalyze a potential recovery in bitcoin, ether and other altcoins. Realistically, though, digital asset traders tend to be willing to take on more risk than traders in other asset classes, so we do expect some volatility in the coming days and weeks."

As the price of bitcoin drops to $35,149, "The entire country of El Salvador is riding the cryptocurrency wave," reports The Street, "even in its choppiest waters." The first country in the world to adopt bitcoin as legal tender, the Central American nation just "bought the dip" once again and acquired 410 bitcoin (roughly $14.8 million USD), its president tweeted Friday....

Bitcoin, which nearly topped $70,000 in November, has now lost more than 40% of its value... El Salvador had previously "bought the dip" when, last September, its worth fell by more than 10%... "150 new coins!" Bukele wrote on Twitter. He said that, at the time, the country had a total of 700 bitcoin.
The Street also shares an interesting detail on how the bitcoin is purchased: It is not clear what type of funds, be they state or private, were used to secure the bitcoin for El Salvador, but the country's 40-year-old President Nayib Bukele is said to buy the country's bitcoin using his phone. The nation's embassy did not immediately respond to TheStreet's request for clarification.