The White House has rehired Carole House, who helped develop President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets, as Special Advisor for Cybersecurity and Critical Infrastructure Policy at the National Security Council. Previously, House worked at the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), leading efforts on cybersecurity and virtual currency […]
Bitcoin News
White House Opposes Crypto Bill FIT21 — Offers to Work With Congress on Balanced Framework for Digital Assets
The White House has issued a statement opposing the passage of the crypto bill Financial Innovation and Technology for the 21st Century (FIT21) Act ahead of the House vote today. However, the Biden Administration offered to collaborate with Congress to establish a balanced regulatory framework for digital assets. The White House’s statement was preceded by […]
Bitcoin News
Bitstream White Paper Proposes Bitcoin Payments to Disrupt File Storage Economy
Robin Linus, the creator behind BitVM — a computing construct atop the Bitcoin blockchain — released a new white paper on November 11, 2023, entitled “Bitstream.” The document explores a system aimed at reforming the economic structure of file storage, suggesting a usage-based model that rewards server contributions with bitcoin payments.
Bitstream Revealed: A White Paper’s Bitcoin-Based Bid to Overhaul Data Hosting
The Bitstream white paper, authored by blockchain programmer Robin Linus, unveils a method where servers receive direct payments in bitcoin (BTC) for each file download they facilitate. Addressing the imbalance in current hosting economics, Linus’ system aligns server profit with content demand.
Servers are compensated for providing a service to the network, namely the distribution of files, the white paper explains. The system “creates a directory of accountable servers from which clients can choose,” Linus’ paper details.
The Bitstream system capitalizes on Bitcoin’s payment channels, including technologies like the Lightning Network, Liquid, Chaumian ecash, Fedimint, or Cashu to afford swift microtransactions for file access.
“The server encrypts the file such that if there’s any mismatch during decryption the client can derive a compact fraud proof,” the paper notes. “A bond contract guarantees the client receives the exact file or they can punish the server.”
In Bitstream’s design, the use of a Merkle tree for file verification promotes both the uniqueness and security of hosted data. By breaking down files into hashed components, the system can quickly confirm the accuracy of the content being transferred.
Linus has adopted a straightforward encryption method, using the one-time pad cipher for its uncompromising security guaranteed by the bitwise XOR operations. “If the encrypted file does not decrypt correctly, the client can derive a succinct fraud proof,” the Bitstream white paper explains.
After Linus published the paper several people were enthusiastic while others were more critical. “Are you just planning to keep revolutionizing Bitcoin every 2 months or so?” one person asked the programmer.
“File hosting is already an at the margin commodity service, and hash based redundancy is achieved over Webtorrent where needed,” another more critical individual said. “A less perfomant inclusion of user edge storage and bandwidth doesn’t solve any particular problem.”
Linus has also been working on the BitVM concept after unveiling that specific white paper last month. We just broadcasted the first mainnet transaction having a Blake3 hash lock implemented in Bitcoin Script,” Linus posted on X on November 6. “One small opcode for BitVM, one giant script for Bitcoin,” the developer added.
The Bitstream framework offers a variation to conventional data hosting methods, yet its practical application remains to be seen. The white paper’s proposal believes it has proposed an “incentive system for decentralized file hosting without relying on trust or heavy-weight cryptography.”
What do you think about the Bitstream white paper? Share your thoughts and opinions about this subject in the comments section below.
Musk’s Plans for X, Celebrating Satoshi’s Seminal White Paper, Bitcoin ETF Predictions, and More — Week in Review
In this week’s top crypto news, Elon Musk talks about making social media platform X into something of a financial monolith, Bitcoin.com News celebrates the 15-year anniversary of the Bitcoin white paper with a look at Satoshi’s seminal and groundbreaking work, and more exchange-traded fund (ETF) predictions emerge. This and more, just below, in the latest Bitcoin.com News Week in Review.
Elon Musk Unveils Plan to Turn X Into ‘Powerful’ Financial Platform — ‘You Won’t Need a Bank Account’
Billionaire Elon Musk has revealed that he is turning his social media platform X, formerly Twitter, into an all-encompassing financial platform. “When I say payments, I actually mean someone’s entire financial life … If it involves money. It’ll be on our platform,” he claimed, emphasizing: “You won’t need a bank account.”
SEC Wants 0 Million From Ripple — Lawyer Says SEC Is ‘Pissed and Embarrassed’
The U.S. Securities and Exchange Commission (SEC) reportedly wants Ripple to pay a 0 million penalty for violating securities laws. Crypto lawyer John Deaton explained that the securities regulator is “pissed and embarrassed” after it lost several legal battles against the crypto firm.
Celebrating 15 Years of Bitcoin: Unraveling Satoshi Nakamoto’s Seminal White Paper
Fifteen years ago, on a memorable Halloween night, Satoshi Nakamoto introduced the world to Bitcoin through a white paper that laid the foundation for decentralized digital currencies. Published on a cryptography mailing list, this seminal document provided a comprehensive solution to the long-standing double-spending problem without the need for a trusted third party.
Analyst Predicts Bitcoin Price Rising to 0,000 by 2025 — ‘Imminent’ Approval of Spot Bitcoin ETFs Expected
Global asset management firm Alliance Bernstein expects the price of bitcoin to reach 0,000 by 2025. The firm’s analyst has predicted “imminent” approvals of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), including those by leading asset management companies like Blackrock and Fidelity.
What are your thoughts on this week’s top stories? Be sure to let us know in the comment section below.
SEC Chair Gensler Wishes Bitcoin’s White Paper Happy Anniversary With Warning for Crypto Firms
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has wished Bitcoin’s white paper a happy anniversary. In addition to his playful remark about Bitcoin creator Satoshi Nakamoto dressing up in a Halloween costume, Gensler issued a stern warning to crypto firms, emphasizing the importance of complying with securities laws.
SEC Chair Gary Gensler’s Message on the Bitcoin White Paper’s 15th Anniversary
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has wished Bitcoin’s white paper a happy anniversary. In a post on social media platform X on Tuesday, the regulator wrote: “Happy 15th anniversary to Satoshi’s famous white paper that started crypto.”
He also attempted to make a humorous remark regarding Bitcoin creator Satoshi Nakamoto’s Halloween costume, asking whether we would be able to tell if Satoshi dressed up as himself for Halloween. Gensler ended his post with a trick-or-treating message for crypto firms. “Any crypto companies that are tricking investors should start treating them to compliance with the securities laws,” he warned.
Gensler’s message garnered numerous comments on social media, with many focusing on when he plans to approve a spot bitcoin exchange-traded fund (ETF). To date, the securities watchdog has not approved a spot bitcoin ETF, despite granting approval for several ETFs based on bitcoin futures contracts. Gensler has repeatedly said that he views all crypto tokens as securities, except for bitcoin.
The SEC chairman said this week that the regulator is considering eight to 10 spot bitcoin ETF applications. Based on public records, 12 spot bitcoin ETF applications have been filed with the SEC, including Grayscale Investments’ application to convert its bitcoin trust (GBTC) into a spot bitcoin ETF. Other applicants include Cathie Wood’s ARK Investment Management, Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco. Eight applications have the latest possible review dates in the first quarter of next year, and three have the latest review dates in the second quarter.
Some analysts, including those at JPMorgan, are expecting the SEC to approve multiple spot bitcoin ETFs at once. Recently, the price of bitcoin surged on speculation that Blackrock, the world’s largest asset manager, is close to launching its spot bitcoin ETF. Bernstein Research said last week that a spot bitcoin ETF looks like “a done deal” in January.
What do you think about SEC Chairman Gary Gensler’s message on Bitcoin’s white paper anniversary? Let us know in the comments section below.
Celebrating 15 Years of Bitcoin: Unraveling Satoshi Nakamoto’s Seminal White Paper
Fifteen years ago, on a memorable Halloween night, Satoshi Nakamoto introduced the world to Bitcoin through a white paper that laid the foundation for decentralized digital currencies. Published on a cryptography mailing list, this seminal document provided a comprehensive solution to the long-standing double-spending problem without the need for a trusted third party.
A 15-Year Journey Into the Heart of Bitcoin’s Revolutionary Design
Today, 15 years later, we delve into the depths of Satoshi Nakamoto’s vision, exploring the revolutionary impacts of Bitcoin and how it has transformed our approach to currency, trust, and financial freedom. Nakamoto’s white paper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” was a radical departure from conventional financial systems. It proposed a form of electronic cash that operated entirely peer-to-peer, eliminating the need for intermediaries such as banks or financial institutions.
Since then, Bitcoin has spawned an entire crypto economy worth .2 trillion and its own market valuation is around 0 billion on October 31, 2023. Approximately 92.99% of all the bitcoins that will ever exist have been issued, as the money supply is currently around 19.5 million BTC. The heart of Bitcoin’s innovation lies in its ability to solve the double-spending problem, a critical issue in digital currencies where the same funds could be spent more than once.
Nakamoto’s solution was the first decentralized network where transactions are verified by participants through a process called mining, utilizing a proof-of-work (PoW) mechanism. This not only ensures the integrity of transactions but also creates a system where trust is built collectively, rather than relying on a single entity. It introduced a new era of accountability in financial transactions, paving the way for what is now known as triple-entry bookkeeping.
In Nakamoto’s own words:
The network is robust in its unstructured simplicity.
Bitcoin’s allure lies in its straightforward yet robust design, characteristics that have consistently demonstrated their worth over time. To date, the network has operated without a hitch, highlighting the durability of Nakamoto’s innovative design. Since its launch on January 3, 2009, the system has achieved an impressive 99.988% operational rate.
Yet, despite its transformative impact, Bitcoin is not without its challenges; it faces criticisms over its energy consumption and crypto, in general, is under regulatory scrutiny. Additionally, it has also sparked fervent multi-year-long debates about its ability to scale. Bitcoin’s journey serves as a compelling testament to the resilience of decentralized systems and the relentless pursuit of innovation. Looking to the future, the outlook for Bitcoin and decentralized currencies is exceedingly promising.
As technological progress continues and societal views on currency and value evolve, Bitcoin’s foundational tenets of decentralization, transparency, and security remain as relevant as ever. It stands as a testament to the extraordinary possibilities that can be realized when individuals come together to create a system that wholeheartedly embraces economic freedom.
Bitcoin’s white paper can be read in its entirety here.
What do you think about Satoshi Nakamoto’s Bitcoin white paper? Let us know what you think about this subject in the comments section below.
UAE Government Unveils White Paper Focused on Metaverse Regulation
The United Arab Emirates government recently announced the unveiling of a white paper which underscores the potential of the metaverse but also the areas “where the global community must strengthen its preparedness.”
Globally Accepted Standards
The United Arab Emirates government recently unveiled a white paper dubbed the “Responsible Metaverse Self-Governance Framework.” According to a statement issued by the country’s Minister of State for Artificial Intelligence and Digital Economy, Omar Sultan Al Olama, this document primarily highlights the importance of having globally accepted operating standards.
The minister added that the white paper, which was produced in conjunction with the crypto exchange Okx, underscores not only the potential of the metaverse but also areas “where the global community must strengthen its preparedness.” Al Olama however warned that there are “several areas” which still “need further dialogue as we have highlighted in our paper.”
Acceptance and Legitimacy
In the 35-page white paper, the document’s authors espouse the importance of self-regulation and double down on why international cooperation is needed.
“Establishment of common minimum self-regulatory principles through international cooperation is one possible approach to counter this challenge. By working together to adopt self-regulatory measures that are effective, equitable and promote the safety and security of the metaverse users, the international community (namely, governments, industry and civil society) can help establish a global framework for responsible and sustainable growth of the metaverse,” authors of the whitepaper concluded.
The authors added that when this is done, it helps the space deal with acceptance and legitimacy issues.
Meanwhile, in a press statement, the UAE ministry conceded that “a significant gap” still exists which it blamed on the “absence of uniform regulations or a global code of conduct for operating within this emerging ecosystem.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Robert Kennedy Jr. Promises to End White House War on Bitcoin — Says We Need ‘Freedom Currency’ That Government Can’t Control
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) has promised to end the White House’s war on bitcoin if he is elected President of the United States. “I’m going to make sure that bitcoin is protected, that people can keep their own wallets, that the current White House war on bitcoin will be over, that transactions will be protected and encouraged,” said the presidential hopeful.
RFK Jr.’s Bitcoin Promises
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) discussed a variety of topics, including bitcoin, in an interview with Bitcoin Magazine, published Wednesday. RFK Jr. is a son of former U.S. Attorney General and Senator Robert F. Kennedy and nephew of former U.S. President John F. Kennedy.
The presidential candidate pledged that if elected as the President of the United States:
I’m going to make sure that bitcoin is protected, that people can keep their own wallets, that the current White House war on bitcoin will be over, that transactions will be protected and encouraged.
He added that he will look “ultimately at treating it [bitcoin] as a currency, rather than a commodity, particularly for smaller bitcoin owners.”
When asked about how he plans to implement his policies, Kennedy detailed: “I’m going to do everything I can without going to Congress. I’m going to do it through my control over Treasury policy.” He noted:
A lot of the bad policies towards bitcoin are not being driven by legislation — They’re driven by White House policies. So I’m going to end the war.
When asked if he is concerned about the government’s influence over bitcoin mining, RFK Jr. shared: “I’m very concerned about all the government attacks on bitcoin. What I would like to do is to provide at least some issuance of Treasury bills that are backed by hard currency, and that could be a bucket that includes bitcoin, that includes platinum, gold, silver, and other hard assets.”
Kennedy Jr. explained that his interest in bitcoin grew when he witnessed government actions during the Ottawa truckers’ strike, where peaceful protesters faced punitive measures, including bank account closures without charges or convictions. “The government used surveillance techniques to determine their identities, to determine their license plates on their cars, and then close their bank accounts and deprive them of their access to their own money, without any charges being filed, certainly without any convictions, but simply to silence them,” he described.
“At that point, I began to understand that freedom of transaction is as important as freedom of speech. I can see this trajectory towards central bank digital currencies [CBDCs], and the power that will give nations, this ultimate power over whether we live or die, ultimately,” he cautioned, elaborating:
And I understood that we need a currency that is a freedom currency, that is independent and can’t be controlled by the government.
What do you think about the promises by Robert F. Kennedy Jr. regarding bitcoin if he is elected President of the United States? Let us know in the comments section below.
Pro-Bitcoin Presidential Candidate Wants To Save BTC From The White House
Pro-Bitcoin Presidential Candidate Robert F. Kennedy Jr. has, at different times, jumped to the defense of the flagship cryptocurrency, BTC. This time, he promises to protect it if elected as President during the Presidential elections next year.
What Kennedy Wants To Do For Bitcoin
In an interview, the Presidential Candidate mentioned that he intends to end the “current White House war on Bitcoin.” This statement is in reference to the anti-crypto stance that the government seems to have taken against Bitcoin and other crypto tokens.
It is believed that, instead of implementing policies to promote cryptocurrencies, the government has clamped down on the industry and its stakeholders. However, Kennedy plans to change that as he mentioned that he will ensure that people can keep their wallets (self-custody) and that transactions are protected, which could foster the use of Bitcoin and other crypto tokens.
Interestingly, Kennedy not only happens to be a Bitcoin proponent but is also heavily invested in the token, as he has up to 0,000 in BTC holdings. He is also ensuring that others get in on the foremost cryptocurrency, as he mentioned in July that he had bought two BTC each for his seven children.
Meanwhile, aside from ending the White House war on Bitcoin, the Presidential Candidate wants Bitcoin (and possibly other cryptocurrencies) to be treated as a currency rather than a commodity. That way, Bitcoin isn’t subjected to capital gains. This is because cryptocurrencies are majorly considered property or investment, and owners are usually expected to pay tax on gains from a sale.
This isn’t the first time Kennedy has made such an assertion. In July, he mentioned that he planned to back the US dollar with BTC and make the conversion of BTC to the US dollar free from capital gains taxes under his administration.
Crypto And Politics
Cryptocurrencies have taken center stage ahead of the upcoming Presidential election next year. Noteworthy is the fact that Kennedy isn’t the only candidate who has mentioned plans to stop the “war” on Bitcoin.
Republican Presidential Candidate Ron DeSantis has also vowed to protect people’s right to own cryptocurrencies and end “Biden’s war on Bitcoin” if elected. He suggested that the current administration wasn’t so welcoming to cryptocurrencies because it poses a “threat” to them due to its decentralized nature.
While these candidates continue to cozy up to the rising pro-crypto US voters, many are wary that they may simply be trying to do everything possible to get this particular group of voters in their corner and may not have plans to implement any crypto-friendly policies.
However, a former SEC attorney has alluded to the fact that crypto regulation in the country may indeed be political and that there is a higher chance of enjoying a crypto-friendly regulatory atmosphere if a Republican candidate gets elected next year.
White House, Yellen Slam Fitch’s US Rating Downgrade — Biden Officials Call It ‘Bizarre and Baseless’
Fitch Ratings has downgraded the United States’ debt rating. Biden officials call the downgrade decision “bizarre and baseless.” Both the White House and U.S. Treasury Secretary Janet Yellen strongly disagreed with the downgrade decision. Yellen claimed that the change by Fitch Ratings “is arbitrary and based on outdated data.”
Fitch Downgrades US Rating
Fitch Ratings, one of the three largest credit rating agencies in the U.S., downgraded the United States’ long-term foreign-currency issuer default rating from AAA to AA+ on Tuesday. The rating agency explained:
The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years.
It also reflects “a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions,” Fitch added.
“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” the rating agency detailed. Moreover, Fitch explained that in its view, “there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025.”
In addition, Fitch described:
We expect the general government (GG) deficit to rise to 6.3% of GDP in 2023, from 3.7% in 2022, reflecting cyclically weaker federal revenues, new spending initiatives and a higher interest burden.
The rating agency placed the country’s credit rating on negative watch in May, citing the debt ceiling fight in Washington. Despite the U.S. successfully avoiding default on its debt obligations in June, Fitch maintained the negative watch. However, in its announcement on Tuesday, Fitch clarified that the negative watch on the U.S. has been removed, and a “stable outlook” has been assigned.
White House, Biden Officials, and Yellen Disagree
Following the rating downgrade, officials from the Biden administration told journalists that the governance issues highlighted by Fitch occurred during former President Donald Trump’s administration. Noting that Fitch had maintained a AAA rating during that period, a senior Biden official said: “This is a bizarre and baseless decision for Fitch to make now … It simply defies common sense to take this downgrade as a result of what was really a mess caused by the last administration and reckless actions by congressional Republicans.”
The White House also released a statement following Fitch’s decision. “We strongly disagree with this decision,” White House Press Secretary Karine Jean-Pierre said. “The ratings model used by Fitch declined under President Trump and then improved under President Biden, and it defies reality to downgrade the United States at a moment when President Biden has delivered the strongest recovery of any major economy in the world.”
Treasury Secretary Janet Yellen also released a statement regarding the downgrade. She stated:
I strongly disagree with Fitch Ratings’ decision. The change by Fitch Ratings announced today is arbitrary and based on outdated data.
“Fitch’s quantitative ratings model declined markedly between 2018 and 2020 — and yet Fitch is announcing its change now, despite the progress that we see in many of the indicators that Fitch relies on for its decision,” Yellen explained. “Many of these measures, including those related to governance, have shown improvement over the course of this administration, with the passage of bipartisan legislation to address the debt limit, invest in infrastructure, and make other investments in America’s competitiveness.”
What do you think about Fitch downgrading the U.S. rating? Let us know in the comments section below.