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The professionals who predict the future for a living – MIT Technology Review

Inez Fung

Professor of atmospheric science, University of California, Berkeley

Leah Fasten

Prediction for 2030: Well light up the world safely

Ive spoken to people who want climate model information, but theyre not really sure what theyre asking me for. So I say to them, Suppose I tell you that some event will happen with a probability of 60% in 2030. Will that be good enough for you, or will you need 70%? Or would you need 90%? What level of information do you want out of climate model projections in order to be useful?

I joined Jim Hansens group in 1979, and I was there for all the early climate projections. And the way we thought about it then, those things are all still totally there. What weve done since then is add richness and higher resolution, but the projections are really grounded in the same kind of data, physics, and observations.

Still, there are things were missing. We still dont have a real theory of precipitation, for example. But there are two exciting things happening there. One is the availability of satellite observations: looking at the cloud is still not totally utilized. The other is that there used to be no way to get regional precipitation patterns through historyand now there is. Scientists found these caves in China and elsewhere, and they go in, look for a nice little chamber with stalagmites, and then they chop them up and send them back to the lab, where they do fantastic uranium--thorium dating and measure oxygen isotopes in calcium carbonate. From there they can interpret a record of historic rainfall. The data are incredible: we have got over half a million years of precipitation records all over Asia.

I dont see us reducing fossil fuels by 2030. I dont see us reducing CO2 or atmospheric methane. Some 1.2 billion people in the world right now have no access to electricity, so Im looking forward to the growth in alternative energy going to parts of the world that have no electricity. Thats important because its education, health, everything associated with a Western standard of living. Thats where Im putting my hopes.

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Anne Lise Kjaer

Futurist, Kjaer Global, London

Prediction for 2030: Adults will learn to grasp new ideas

As a kid I wanted to become an archaeologist, and I did in a way. Archaeologists find artifacts from the past and try to connect the dots and tell a story about how the past might have been. We do the same thing as futurists; we use artifacts from the present and try to connect the dots into interesting narratives in the future.

When it comes to the future, you have two choices. You can sit back and think Its not happening to me and build a great big wall to keep out all the bad news. Or you can build windmills and harness the winds of change.

A lot of companies come to us and think they want to hear about the future, but really its just an exercise for themlets just tick that box, do a report, and put it on our bookshelf.

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So we have a little test for them. We do interviews, we ask them questions; then we use a model called a Trend Atlas that considers both the scientific dimensions of society and the social ones. We look at the trends in politics, economics, societal drivers, technology, environment, legislationhow does that fit with what we know currently? We look back maybe 10, 20 years: can we see a little bit of a trend and try to put that into the future?

Whats next? Obviously with technology we can educate much better than we could in the past. But its a huge opportunity to educate the parents of the next generation, not just the children. Kids are learning about sustainability goals, but what about the people who actually rule our world?

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Philip Tetlock

Coauthor of Superforecasting and professor, University of Pennsylvania

Prediction for 2030: Well get better at being uncertain

At the Good Judgment Project, we try to track the accuracy of commentators and experts in domains in which its usually thought impossible to track accuracy. You take a big debate and break it down into a series of testable short-term indicators. So you could take a debate over whether strong forms of artificial intelligence are going to cause major dislocations in white-collar labor markets by 2035, 2040, 2050. A lot of discussion already occurs at that level of abstractionbut from our point of view, its more useful to break it down and to say: If we were on a long-term trajectory toward an outcome like that, what sorts of things would we expect to observe in the short term? So we started this off in 2015, and in 2016 AlphaGo defeated people in Go. But then other things didnt happen: driverless Ubers werent picking people up for fares in any major American city at the end of 2017. Watson didnt defeat the worlds best oncologists in a medical diagnosis tournament. So I dont think were on a fast track toward the singularity, put it that way.

Forecasts have the potential to be either self-fulfilling or self-negatingY2K was arguably a self-negating forecast. But its possible to build that into a forecasting tournament by asking conditional forecasting questions: i.e., How likely is X conditional on our doing this or doing that?

What Ive seen over the last 10 years, and its a trend that I expect will continue, is an increasing openness to the quantification of uncertainty. I think theres a grudging, halting, but cumulative movement toward thinking about uncertainty, and more granular and nuanced ways that permit keeping score.

Ryan Young

Keith Chen

Associate professor of economics, UCLA

Prediction for 2030: Well be moreand lessprivate

When I worked on Ubers surge pricing algorithm, the problem it was built to solve was very coarse: we were trying to convince drivers to put in extra time when they were most needed. There were predictable timeslike New Yearswhen we knew we were going to need a lot of people. The deeper problem was that this was a system with basically no control. Its like trying to predict the weather. Yes, the amount of weather data that we collect todaytemperature, wind speed, barometric pressure, humidity datais 10,000 times greater than what we were collecting 20 years ago. But we still cant predict the weather 10,000 times further out than we could back then. And social movementseven in a very specific setting, such as where riders want to go at any given point in timeare, if anything, even more chaotic than weather systems.

These days what Im doing is a little bit more like forensic economics. We look to see what we can find and predict from peoples movement patterns. Were just using simple cell-phone data like geolocation, but even just from movement patterns, we can infer salient information and build a psychological dimension of you. What terrifies me is I feel like I have much worse data than Facebook does. So what are they able to understand with their much better information?

I think the next big social tipping point is people actually starting to really care about their privacy. Itll be like smoking in a restaurant: it will quickly go from causing outrage when people want to stop it to suddenly causing outrage if somebody does it. But at the same time, by 2030 almost every Chinese citizen will be completely genotyped. I dont quite know how to reconcile the two.

Sarah Deragon

Annalee Newitz

Science fiction and nonfiction author, San Francisco

Prediction for 2030: Were going to see a lot more humble technology

Every era has its own ideas about the future. Go back to the 1950s and youll see that people fantasized about flying cars. Now we imagine bicycles and green cities where cars are limited, or where cars are autonomous. We have really different priorities now, so that works its way into our understanding of the future.

Science fiction writers cant actually make predictions. I think of science fiction as engaging with questions being raised in the present. But what we can do, even if we cant say whats definitely going to happen, is offer a range of scenarios informed by history.

There are a lot of myths about the future that people believe are going to come true right now. I think a lot of peoplenot just science fiction writers but people who are working on machine learningbelieve that relatively soon were going to have a human-equivalent brain running on some kind of computing substrate. This is as much a reflection of our time as it is what might actually happen.

It seems unlikely that a human--equivalent brain in a computer is right around the corner. But we live in an era where a lot of us feel like we live inside computers already, for work and everything else. So of course we have fantasies about digitizing our brains and putting our consciousness inside a machine or a robot.

Im not saying that those things could never happen. But they seem much more closely allied to our fantasies in the present than they do to a real technical breakthrough on the horizon.

Were going to have to develop much better technologies around disaster relief and emergency response, because well be seeing a lot more floods, fires, storms. So I think there is going to be a lot more work on really humble technologies that allow you to take your community off the grid, or purify your own water. And I dont mean in a creepy survivalist way; I mean just in a this-is-how-we-are-living-now kind of way.

Noah Willman

Finale Doshi-Velez

Associate professor of computer science, Harvard

Prediction for 2030: Humans and machines will make decisions together

In my lab, were trying to answer questions like How might this patient respond to this antidepressant? or How might this patient respond to this vasopressor? So we get as much data as we can from the hospital. For a psychiatric patient, we might have everything about their heart disease, kidney disease, cancer; for a blood pressure management recommendation for the ICU, we have all their oxygen information, their lactate, and more.

Some of it might be relevant to making predictions about their illnesses, some not, and we dont know which is which. Thats why we ask for the large data set with everything.

Theres been about a decade of work trying to get unsupervised machine-learning models to do a better job at making these predictions, and none worked really well. The breakthrough for us was when we found that all the previous approaches for doing this were wrong in the exact same way. Once we untangled all of this, we came up with a different method.

We also realized that even if our ability to predict what drug is going to work is not always that great, we can more reliably predict what drugs are not going to work, which is almost as valuable.

Im excited about combining humans and AI to make predictions. Lets say your AI has an error rate of 70% and your human is also only right 70% of the time. Combining the two is difficult, but if you can fuse their successes, then you should be able to do better than either system alone. How to do that is a really tough, exciting question.

All these predictive models were built and deployed and people didnt think enough about potential biases. Im hopeful that were going to have a future where these human-machine teams are making decisions that are better than either alone.

Guillaume Simoneau

Abdoulaye Banire Diallo

Professor, director of the bioinformatics lab, University of Quebec at Montreal

Prediction for 2030: Machine-based forecasting will be regulated

When a farmer in Quebec decides whether to inseminate a cow or not, it might depend on the expectation of milk that will be produced every day for one year, two years, maybe three years after that. Farms have management systems that capture the data and the environment of the farm. Im involved in projects that add a layer of genetic and genomic data to help forecastingto help decision makers like the farmer to have a full picture when theyre thinking about replacing cows, improving management, resilience, and animal welfare.

With the emergence of machine learning and AI, what were showing is that we can help tackle problems in a way that hasnt been done before. We are adapting it to the dairy sector, where weve shown that some decisions can be anticipated 18 months in advance just by forecasting based on the integration of this genomic data. I think in some areas such as plant health we have only achieved 10% or 20% of our capacity to improve certain models.

Until now AI and machine learning have been associated with domain expertise. Its not a public-wide thing. But less than 10 years from now they will need to be regulated. I think there are a lot of challenges for scientists like me to try to make those techniques more explainable, more transparent, and more auditable.

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Cryptocurrency in Focus: Ethereum Is on Fire – TheStreet

Leading cryptocurrency project Ethereum has seen its fundamentals on the rise lately, as decentralized finance crosses the $1-billion mark this month. That's big news for the project, because Ethereum's native currency, Ether, accounts for about 70% of that total.

In addition, the project is gainingmomentum around its ETH 2.0initiativeand it could get a boost from a major move bythe big U.S. bankJPMorganChase(JPM) - Get Report, which plans to merge its Quorum blockchain with ConsenSys -- a development studio founded by Ethereum co-founder, Joe Lubin. The bank built its private blockchain using the Ethereum network, and if successful, the merger could lead to more investment in the Ethereum ecosystem.

Considered the pioneer for blockchain-based smart contracts, Ethereum also continues to gain prominence as19 out of the top 20 decentralized finance projects were built on its blockchain.

Smart contracts are computer programs that automatically execute when specific conditions are met. Running them on a blockchain removes any possibility of downtime or third-party interference, making them extremely useful for exchanging money, content, property, shares, or anything of value.

ETH is Ethereums native currency, used as "gas" to pay for network transactions. It currently boasts a market cap of just under $30 billion, with a 24h trade volume of $19.77 billion.

The Ethereum platform currently processes transactions in a similar way to Bitcoin. But massive development efforts are underway on Ethereum 2.0, to switch over from its proof-of-work to a proof-of-stake network capable of greater scale. The need for scalability is key as the number of transactions, and subsequent gas prices, continue to rise on the platform.

Ethereum fundamentals have been increasing since the beginning of 2020, up 22-points (2.38%) since January 1st. Our data shows this was driven by a 48-point (5.37%) rise in User Activity.

FCAS is up 22-points (2.38%)

Developer Behavior is up 1-point (0.1%)

User Activity is up 48-points (5.37%)

Market Maturity is up 2-points (0.24%)

TheStreet

Current trends suggest that as the DeFi market continues to expand, it will create robust payment gateways for a wide variety of DApps to be built on Ethereum. Any sort of multi-party application that today relies on a central server can be disintermediated via the Ethereum blockchain. This has attracted new capital to flow into ETH, causing price to skyrocket in the past two months.

Starting with the launch of MakerDAO, there are now nine separate Ethereum decentralized finance apps holding at least $10 million worth of cryptocurrency in them. As Synthetix founder Kain Warwick commented, The idea that Ethereum is replicating these traditional financial applications on a decentralized platform has finally crossed the chasm and got to the point where people understand it."

The FCAS Tracker provides institutional and sophisticated retail investors a top-down approach to tracking 500+ cryptocurrencies fundamentals. FCAS Tracker is currently free to a select group of new users as we continue to develop the product. Visit us here to gain access to Flipside Analytics.

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Crime And Punishment In The Cryptocurrency World – Forbes

On December 2, 2019, prosecutors in the Southern District of New York unsealed a criminal complaint against Virgil Griffith for conspiracy to violate U.S. sanctions authorized by the International Emergency Economic Powers Act by providing services to the Democratic Peoples Republic of Korea (North Korea). The indictment of Griffith, one of the developers of the Ethereum blockchain, is the first instance where the Department of Justice has publicly announced chargesagainst a US citizen for conspiring to use cryptocurrency in an attempt to evade sanctions. Its an interesting case of a developing technology being applied to laws dating back to 1977 (not long in years but generations in technological breakthroughs).

PARIS, FRANCE - FEBRUARY 12: In this photo illustration, a visual representation of the digital ... [+] Cryptocurrency, Bitcoin is displayed in front of the Bitcoin course's graph on February 12, 2020 in Paris, France. The price of Bitcoin is rising and has once again passed above the very symbolic bar of 10,000 US dollars. (Photo by Chesnot/Getty Images)

The complaint against Griffith alleges that he visited North Korea in April 2019 to give a presentation at the Pyongyang Blockchain and Cryptocurrency Conference, where the main topic of discussion was how blockchain and cryptocurrency technology could be used to launder money and evade international sanctions that keep it from becoming a developed nation.

The United States efforts to combat such sanctions evasion began in September 2018, when the DOJ and the Department of Treasurys Office of Foreign Assets Control (OFAC) simultaneously announced criminal charges and civil sanctions against Park Jin Hyok, a North Korean citizen, someone the FBI had been tracking for years and subsequently put on its most wanted list.OFAC also sanctioned Hyoks employer, Chosun Expo Joint Venture, an agency, instrumentality, or controlled entity of the North Korean government. The DOJs complaint alleges that Hyok used a ransomware attack named WannaCry 2.0, which encrypts files on the computers of its victims (mostly in the US) demanding Bitcoin ransom payments. North Koreas Ministry of Foreign Affairs issued a statement claiming that Hyok is a non-existent entity, and furthermore, the act of cyber crime mentioned by the Justice Department has nothing to do with us.

In September 2019, OFAC announced sanctions against Lazarus Group and two of its sub-groups, Bluenoroff and Anaderiel, asserting they were directly involved in WannaCry 2.0 and the 2014 cyberattacks of Sony Pictures Entertainment.Joel Androphy, partner at Berg & Androphy said, For a rogue nation like North Korea, its not just about evading sanctions, its a revenue stream.

North Korea appears to have been relatively successful in generating revenue through this type of indirect sanctions evasion.Citing an unreleased confidential United Nations report, Reuters reported in August 2019 that North Korea is estimated to have raised up to $2 billion by using cyberspace to launch sophisticated attacks on financial institutions and cryptocurrency exchanges to generate income.It has become a burgeoning business model.

Although that revenue was earned prior to OFACs announcement of sanctions against Lazarus Group, the sanctions do not appear to have deterred North Korea from continuing to explore ways to use cryptocurrency to generate illicit revenue.Days after the sanctions were announced, the Korean Friendship Association posted information about the second Pyongyang Blockchain and Cryptocurrency Conference, which was scheduled for February 24 and 25, 2020.The FAQ page of the conference website expressly states that individuals with United States passports are welcome and that for your convenience we will provide a paper visa separated from your passport, so there will be no evidence of your entry to the country. Nothing like trusting North Korea to keep a secret.

Shortly after Reuters report came out, United Nations sanctions experts were warning people not to attend the Pyongyang Cryptocurrency Conference, noting that attendance at the conference could be a sanctions violation. The timing of the websites removal strongly suggests that the threat of international penalties from the United Nations had a deterrent effect much stronger than the threat of penalties from the United States alone.

Countries other than North Korea that are not subject to international sanctions also appear undeterred by United States penalties.For example, in March 2018, President Trump issued an Executive Order prohibiting United States persons and entities from engaging in transactions involving the Petro, Venezuelas cryptocurrency. Around the same time, OFAC announced sanctions against Evrofinance Mosnarbank, a bank that was involved in facilitating the Petros launch. Despite the sanctions and the Petros apparent lack of popularity among Venezuelans many of whom still do not know how or where to buy Petros Venezuelan president Nicolas Maduro announced efforts designed to strengthen the Petro in 2020, including exploratory sales of Venezuelan oil for Petros and the payment of taxes and utility bills in Petros.

OFACs announcement of sanctions against two Iranian men who allegedly converted the proceeds of a ransomware scheme from Bitcoin into Iranian rial appears to have been similarly ineffective. One of the two men sanctioned told theNew York Timesthat he had resumed exchanging Bitcoin within a week using a new anonymous Bitcoin address. The Iranian government has also reportedly shown interest in developing a cryptocurrency. At the Kuala Lumpur Summit in December 2019, Iranian president Hassan Rouhani suggested that leaders from Turkey, Qatar, Iran, and Malaysia create a Muslim cryptocurrency to save themselves from the domination of the United States dollar and the American financial regime.

The apparent effectiveness of the threat of international sanctions, and the collaborative efforts of other nations to develop cryptocurrencies that could be used to harm United States interests, underscore the need for the United States to work with its allies to combat cryptocurrency-based sanction evasions.Although many countries believed to be involved in sanctions evasion (such as Venezuela) are not subject to international sanctions, there are other ways in which the United States can seek support from its allies.

With cooperation from its allies, US prosecutors can use various statutes to indict and extradite those who commit offenses involving cryptocurrency abroad as well as in the United States.The world can be a small place when it comes to the reach of US government agencies, Androphy said, and many people who get caught up in this stuff simply dont know the laws that can get them in big trouble.

While each allys existing statutes and needs will be different, the global Financial Action Task Force (FATF) recently issued standards designed to provide an international framework for the regulation of virtual currencies and other virtual assets. As the FATF noted in a statement following its January 9, 2020 Supervisors Forum, the challenge is now to effectively implement these standards. The United States should be leading efforts to do so, because international cooperation will be an invaluable tool in amassing the economic power necessary to prevent cryptocurrency-based sanctions evasion by actors within and outside the US.

Make no mistake about it, people using cryptocurrencies to commit offenses are taking a significant risks. While some who drift on the wrong side of the law do so with intent, they may not know the extent of the trouble that they can get into with the criminal justice system in the US. The Federal Sentencing Guidelines, something many people have no familiarity with, can put offenders in prison for decades. Just to be extradited from a foreign country can take months or years ... imagine that sitting in a Venezuelan prison. Sealed indictments and cross-border cooperation with authorities makes traveling that much more precarious. One minute you can be headed to some part of the world on vacation and the next you could be sitting in a prison on what you thought was supposed to be a layover of two hours.

Emily Burgess, an attorney who works with Androphy, told me, Cryptocurrency transactions are only pseudonymous, not anonymous, and a user whose identity is uncovered faces significant penalties.

For those who think crypto will hide them detection and, eventually punishment, you better think twice.

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Crime And Punishment In The Cryptocurrency World - Forbes

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Warren Buffett says he will never own any cryptocurrency – Yahoo Finance

Berkshire Hathaway chairman and billionaire investor Warren Buffett has reiterated his aversion to cryptocurrencies.

"Cryptocurrencies basically have no value and they don't produce anything," Buffett told CNBC in an interview on Monday. "I don't have any cryptocurrency and I never will," Buffett added.

Last month, Tron founder Justin Sun, along with his four guests, dined with Buffett - but that didn't change the billionaire investor's stance on crypto.

"When Justin and four friends came, they behaved perfectly and we had a very friendly 3-hour dinner and the whole thing was a very friendly exchange of ideas," Buffett said, adding that neither he nor Sun changed their stance on bitcoin.

89-year old Buffett has been a long-time critic of cryptocurrencies. He has called bitcoin as a "real bubble" and "rat poison squared," among other descriptors.

Interestingly, Buffett today said he may create a "Warren currency" that would be available after he passes away.

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The Mystery of Warren Buffett’s Missing Crypto is Solved – Cointelegraph

The mystery that has haunted the crypto community for years days is finally resolved.

We may never know the true identity of Satoshi Nakamoto, but we just cracked the second greatest mystery in the history of Bitcoin (BTC): what happened to the Bitcoins that Justin Sun supposedly gifted to Warren Buffet?

Justin Sun claimed that during his much-discussed lunch with Warren Buffet, he presented the crypto-skeptic with a Galaxy Fold phone which contained some cryptocurrency including Bitcoin and Tron (TRX).

However, in a recent interview with CNBC, not only did the Oracle of Omaha reiterate his negative stance towards cryptocurrency, he also flat-out denied owning any crypto whatsoever and further stated that he will never own it.... because it is worthless.

Subsequently, some in the crypto community started to question the veracity of Justin Suns statement. If indeed he had given some cryptocurrency to Warren Buffet, how could it be possible that Mr. Buffett doesnt own any?

Luckily for Mr. Sun, Buffett could be rebuffed. All Sun had to do was point to the blockchain-based evidence to defend himself:

Of course, all that the blockchain can prove is that some amount of cryptocurrency resides at a certain address. It cannot prove that an individual named Warren Buffet is the rightful owner of this cryptocurrency unless that individual chooses to prove his ownership by moving some coins or signing a message with a private key controlling it.

And as we have learned from the greatest Bitcoin mystery of all time, this can be no easy task for some individuals.

Justin Suns detractors seemed to have an upper hand in this deeply-contested conundrum until a good Samaritan stepped in to save the day (and Suns reputation).

Becky Quick, the CNBC reporter who inadvertently started this controversy, has now put an end to it:

No word yet on how Justin Sun feels about Warren Buffett regifting his generous present.

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Why 2020 is an important year for cryptocurrency exchange regulation – CryptoSlate

Guest post by Cal Evans from Gresham International

Cal is the Managing Consultant of Gresham International.

Cryptocurrency exchanges represent one of the most diverse service offerings within the crypto industry.

You only have to stack a handful of exchanges up, side by side, to see the differences between them. These differences can be found in a multitude of areas. Some differences relate to the actual user interface (UX) experience of the platform and how users interact with the services. Other differences can be found in the technical side of the trading offered by the exchange. This list is almost endless.

In a market that is now so big, this diversity allows crypto users to move to whichever exchange best suits their needs a real win for those who are trading in the community.

To date, crypto exchanges have had a fairly easy life with respect to regulation and the amount of paperwork they have to do. Considering the amount of cash that flows through some exchanges, it is quite astonishing that so far they have had minimal regulation. In hindsight, this might not be such a great thing.

Regardless of your thoughts on the balance between privacy/freedom and control/monitoring, the simple fact is that most countries do not allow free flow of assets of any kind. Monitoring them kills factors such as financing terrorism and money laundering from crime. Two things which, in the early days of Bitcoin, gave the whole industry a bad name. One which we are still trying to recover from.

In order to counter this, 2019 saw a raft of new laws passed in various international jurisdictions. Most of which, aimed at exchanges. Essentially, there has been no headway into actually legislating cryptocurrencies themselves. However, moving forward, the trading will be much more regulated.

To help you understand the major changes, lets take a brief look at the new major laws coming into play over 2020.

Hong Kong has finally set its mind on the trading of cryptocurrency. As of now, companies that are looking to offer trading services of cryptocurrencies will have to register for a Money Service License within Hong Kong. This is the same license that Foreign Exchange companies will use. It carries reporting requirements that are slightly easier than being a usual financial services firm.

Singapore was the original birthplace of the exchange. Consequently, many many exchanges decided to set up there and conduct business. Singapore now requires all exchanges to register with The Monetary Authority of Singapore (MAS). MAS is a full financial oversight body that will inspect every element of the company including business operations and transactions.

The EU has now placed registration requirements on all exchanges operating within the Union. Although countries such as Malta and Estonia already had these in place, all member states are now required to have cryptocurrency exchanges register within their respective country. One registration will work for all member states (as is common with all financial services). The obligation is only on the collection of data of users of the exchanges. Not information on trades. This registration process will vary from state to state.

The United Kingdom was in the EU long enough to be caught by the new law but will be out in time to decide how they set it up. Consequently, the Financial Conduct Authority (FCA) has now created a special type of Crypto License. This license places a requirement on companies that operate in the crypto space and facilitate trades to register with the organization. This includes companies outside of exchanges.

All of these new laws are designed to ensure that companies who operate from onshore locations are taking the necessary steps to protect the flow of money in and out of the country. For those exchanges that are looking to promote a more decentralized or fluid approach to trading will more than likely have to move to an offshore location in order to continue doing business.

Since 2016 Gresham International assisted entrepreneurs, companies, governments, and groups launch their currency or token offering to market.

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Hot or cold. Which cryptocurrency wallet is the best? – Toshi Times

Are you curious about cold and hot wallets? Which type of wallet is the best to store your cryptocurrency? Keen on learning why theyre key to the Ethereum ecosystem? Great! Youve come to the right place. To learn blockchain development and be certified I recommend visiting Ivan on Tech Academy.

Blockchain is currently#1 ranked skill by LinkedIn. Because of that, you should definitely learn more about Ethereum to get a full-time position in crypto during 2020.

In myfirstandsecondpieces, Ive discussed Ethereum 2.0 and the best tools for developers. In mythirdandfourtharticles, Ive discussed quadratic voting and open governance models. Then, in my fifthpiece,Ive looked into Swarms infrastructure.

In mysixth, seventh and eight ones, Ive dove-deep into consensus algorithms and the blockchain trilemma. Lastly, Ive looked into blockchain sharding technology,which projects are making it thrive and Ive done an intro to Plasma and Looms.

Last week, Ive explained the importance of blockchain explorers, why tBTC matters for Ethereum developers and the difference between cryptocurrencies, crypto-tokens and stablecoins.

This week Ive disucussed the value of cryptocurrency networks. Today Im looking into the key differences between hot and cold storage systems. Why should Ethereum developers care about hot and cold wallets?

Hot and cold wallets are a key piece of the cryptocurrency ecosystem. It is often said in the cryptocurrency universe, not your keys, not your coins. Andreas Antonopolous, the one who coined this term (pun intended), meant to say users need to pay attention to coin storing systems. Wallets are a very personal choice when it comes to storing funds.

Below, I look at the differences between cold and hot storage and the benefits of using alternative types of wallets. There are several trade-offs, benefits, and negatives to both. At the end, it all comes down to your own priorities.

Do you prefer ease of access, or strong security?

Storing your cryptocurrency in a hot wallet comes with a lot of risk, but it is simpler than setting up a cold wallet. Some of the best online wallets promote easy-to-use interfaces, high availability and instant transfer times.However, keeping all of your crypto in an online wallet creates a larger surface attack area, which means there is an increased risk of being hacked.

If you plan to consistently move your crypto around to different exchanges for trading purposes, then a hot wallet might be right for you. To give yourself a little extra protection, you can install additional security measures. Two-factor authentication is probably the best method to add an extra layer of security. But even then, dont expect your funds to be 100% protected from hacks.

Hot wallets generally provide a more user-friendly experience, which is why many who are not heavily knowledgeable about cryptocurrencies generally use them. If you want to use a hot wallet, try to store a minimal amount. By storing most of your cryptocurrency in a cold wallet and just a small amount in a hot wallet, you can get the best of both worlds ease and quickness of use as well as the security the cold wallet provides.

If you highly value security and youre wary of losing your hard-earned crypto, then using a cold wallet is the way to go. By keeping your Bitcoins offline, there is a much-reduced threat of being hacked. If you have or plan to buy Bitcoin, or any other currency, and hodl for the foreseeable future without trading then a cold wallet could be one of the best wallets for your cryptocurrency.

One of the most secure ways of setting up a cold wallet is by using a paper wallet or brain wallet. By using a paper wallet, the only way to access your Bitcoin would be through this piece of paper where your key is written down. Brain wallets mean memorizing your access. The main risks are if you lose that piece of paper in a fire or through bad housekeeping, then accessing your Bitcoin is impossible. Or worse, if you forget your keys.

Having a few spare copies in places you and only people you trust know about could be one way to counteract this.

Instead of basic paper wallets, a hardware wallet provides a great amount of security but for a financial cost. Depending on the make and model, you could expect to spend up to $100, if not more.

One essential tip when buying a hardware wallet is to ensure you are buying from a reputable vendor. When you receive your wallet, make sure that the wallet hasnt been tampered with or opened in any way. Malicious actors could upload malware onto these wallets if they are able to get their hands on the hardware before you yourself do. The best wallets for cryptocurrency will be supported by positive reviews from other users.

Keep in mind, according to recent research from GlassNode, a great deal of Bitcoin has been lost in cold wallets. There is an estimate of around 1 to 3 million BTC lost in cold wallets.

There are positives and negatives to both hot and cold storage. If you want quickness and ease of use, go for a hot wallet. If you want security and long-term storage, use a cold wallet. Completing your own research before purchasing cryptocurrency is essential for your own security and storing your it safely is key to protecting your investment.

This article is not financial advisement

Founder @ Bityond. Senior Writer. Researcher and Project Manager.

Hobbies include swimming and Sith lording. Tweet me @Febrocas. Message me on LinkedIn.

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The Billion-Dollar Cryptocurrency Scams You’ve Never Heard About – OZY

Thesuicide note cited personal reasons. But Ashraf Nusubuga, a radiology studentat Kampalas Makerere University Ugandas leading higher educationinstitution didnt hang himself over a love affair gone wrong or because ofacademic pressure. The 22-year-old killed himself after losing money he hadinvested in a bogus cryptocurrency firm.

He had put all of his money and some he had borrowed into what turned out to be a Ponzi scheme, lured by the promise of high returns, according to Luke Oweyesigire, deputy spokesperson for Kampala Metropolitan Police. But Nusubuga isnt the only one to have fallen victim.

A series of large cryptocurrency scams is rocking Uganda, turning the East African nation into an unlikely hub for fraudulent firms claiming to offer digital currencies, while preying on weak governance and low financial literacy. Other major cryptocurrency scams in 2019 involved developed economies Japans BITPoint exchange lost $28 million, and con men in the U.K. and the Netherlands stole $27 million from Bitcoin users. Globally, cybercriminals stole $4.3 billion from users and exchanges last year. But Uganda is the worst hit by far.

At least five cryptocurrency firms have closed shop and walked away with a total of more than $26 million of their clients money in the past six months. From students and churchgoers to army officers and government officials, the victims span Ugandan society. Robert Bakalikwira, a criminal investigations officer probing these cases, estimates that in all, 200,000 Ugandans have lost about $1 billion, or almost 4 percent of the countrys GDP of $28 billion, over the past two years.

Ugandans are better off investing their money in cows than plunging into the unknown world of cryptocurrencies.

Patrick Mweheire, chairman, Uganda Bankers Association

These scams are different from those in the West, where hackers have stolen from exchanges or robbed from people. In Uganda, fake firms claiming to offer cryptocurrencies are luring people to buy in, before walking away with their money. The countrys growing crisis holds lessons for other poor nations with weak regulations unable to keep up with the sometimes misleading promise of technology.

We have receivedvery many cases of cryptocurrencyscams,says Fred Enanga, Ugandas national police spokesperson. We advise Ugandans toavoid being fleeced off their money in such deals.

But the role of President Yoweri Musevenis government is coming under scrutiny. It has set up a 10-member commission of inquiry, and is issuing public statements to alert Ugandans that the government and central bank dont recognize any cryptocurrency. Yet even though the country has no regulations for the sector, the government hasnt made it illegal to operate a cryptocurrency firm in Uganda. In parliament earlier this month, an MP pointed out that Kwame Rugunda, the son of Prime Minister Ruhakana Rugunda, is CEO of CryptoSavannah, a cryptocurrency advisory firm.

Museveni himself appeared to be an early proponent of cryptocurrencies. At an event in Kampala in January 2017, where Bank of Uganda Governor Emmanuel Mutebile said he wasnt confident about the credibility of cryptocurrency, the president rebuffed him. Museveni said Mutebile wasbeing dogmatic, and emphasized the need to embrace technology.

Many ordinary people in the country which has the lowest literacy rate in the region took it as a government endorsement of digital currencies. A flood of firms some legitimate and several fraudulent entered the country.

Museveni is partly responsible for our suffering, says 50-year-old Ken Wamala from the southern Uganda town of Masaka who says scams have cost him around $41,000.

The fraud firms include Dumanis Coins, whose management disappeared on Dec. 3, 2019, after collecting $2.7 million in Ugandan shillings. More than 10,000 people had invested in the company. Police have arrested one of the firms directors but are still searching for four others, says Kampala police spokesman Patrick Onyango. John Kalevu, whose shop is next to Dumanis Coins former office, says he came to work one day to find the cryptocurrency firms doors open, but the office empty.

Global Cryptocurrencies closed overnight in November. Andrew Kagwa, its chief executive, was arrested after two weeks on the run. More than 10,000 people had invested $8.2 million in the firm. Lion Cryptocurrency closed down in October 2019, taking with it $5.4 million in investments made by 17,000 people, says Henry Musagala, the investigating officer. One Coin, another of the fraud firms, duped 12,000 people out of $6.8 million. The D9 cryptocurrency company shut shop with $3.2 million in investments from 9,000 people.

Other cryptocurrency companies that have closed since early 2018 leaving thousands of people confused and stranded include Team, Dutch International, Finetegry and Fital-Science.

Employees of these firms havent escaped unscathed either. Sheila Nassali, a nurse by training, recalls how a Global Cryptocurrency director convinced her to join the company as a secretary and a customer. She was shocked when the director disappeared, leaving me to face angry customers who wanted to get their money.

Patrick Mweheire, chairman of the Uganda Bankers Association, says, Ugandans are better off investing their money in cows than plunging into the unknown world of cryptocurrencies.

But experts and former employees of these firms say ignorance isnt the only problem. Muzamiru Kigundu, who used to work with Lion Cryptocurrency before it shut down, alleges that many government officials are among the owners of cryptocurrency companies mushrooming in Uganda. That lends the industry legitimacy in the eyes of ordinary people. The directors of these firms rent fancy offices and drive expensive cars to create the impression that theyre wealth creators, he says.

Ugandas corruption it ranks 160 in Transparency Internationals index is also to blame. Some of the fake firms were registered as companies even though they didnt meet statutory requirements. The major cause of the cryptocurrency scams is corruption, says Joseph Bogere, professor of economics at Makerere University.

Ultimately, though, its the responsibility of the countrys leaders and security organizations to protect citizens against such crooks, says Solomon Male, a pastor. That isnt happening yet. An already poor nation is bleeding further, while gaining an unwanted reputation.

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JONES DAY TALKS: Hard Forks and Airdrops: The IRS Issues Cryptocurrency Tax Guidance – JD Supra

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JONES DAY TALKS: Hard Forks and Airdrops: The IRS Issues Cryptocurrency Tax Guidance - JD Supra

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Cryptocurrency exchange operator ruled in breach of contract – The Straits Times

The Court of Appeal has ruled in a landmark case that virtual currency exchange operator Quoine must pay damages for wrongfully reversing a number of transactions on its platform.

The apex court yesterday rejected Quoine's argument that it was entitled to unilaterally cancel the seven orders - placed by trader B2C2 to sell ethereum for bitcoin - on the basis the transactions were a mistake.

Quoine had argued that the parties who transacted with B2C2 were under the mistaken belief that the trades were at market price and that B2C2 knew of this mistake.

The case is the first legal dispute in Singapore involving cryptocurrency. It is also believed be the first in the Commonwealth to deal with the question of how the legal doctrine of mistake should be applied when contracts are made by computerised trading systems, without human involvement.

The case will now centre on assessing how much damages should be paid to B2C2.

Both companies use complex computer systems to place buy and sell orders on Quoine's platform.

Quoine's software retrieves price information from other currency exchanges to generate orders. B2C2's software evaluates the first 20 market prices, excluding low volume orders, and calculates an appropriate price to buy or sell.

The software has a fail-safe "deep price" of 10 bitcoin to one ethereum. This kicks in when there is insufficient market data.

In April 2017, a glitch in Quoine's software made it unable to access external data and it stopped creating new orders. This led to B2C2's "deep price" taking effect.

On April 19, 2017, seven trades were carried out by the computer systems, with 3,092 bitcoins being credited to B2C2 in exchange for about 309 ethereum debited. This was at a rate of about 250 times the prevailing exchange rate of about 0.04 bitcoin to one ethereum.

Quoine became aware of these trades the next day and unilaterally reversed the transactions. B2C2, represented by Mr Danny Ong, then sued Quoine, arguing that the cancellations amounted to a breach of contract and a breach of trust.

The Singapore International Commercial Court found in March last year that Quoine was in breach of both contract and trust.

Quoine, represented by Senior Counsel Stanley Lai, appealed before a five-judge panel.

The majority - comprising Chief Justice Sundaresh Menon, Judges of Appeal Andrew Phang and Judith Prakash and International Judge Robert French - dismissed Quoine's appeal on breach of contract.

They held that, in the context of contracts made by computer systems, it is the programmer's state of knowledge that is relevant, from the point of programming up to the forming of the contract.

In other words, the court has to determine whether in programming the system, the programmer was acting to take advantage of offers made by a party operating under a mistake.

The court said there was no mistake in this case as to the terms of the trading contract. Even assuming there was a mistake, the creator of B2C2's software did not know of this mistaken belief.

International Judge Jonathan Mance dissented on this issue.

The court allowed the appeal on breach of trust, saying that no trust was created over the bitcoins in B2C2's account.

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