BLOCKCHAIN, BITCOINS , PONZI , PART 13 - CAPT AJIT VADAKAYIL

THIS POST IS CONTINUED FROM PART 12, BELOW--

http://ajitvadakayil.blogspot.in/2017/11/blockchain-smart-contracts-hashgraphs_11.html

Bitcoin transactions are "incredibly expensive" and "all the fees are hidden through the crypto-mechanisms"

A Ponzi has no one in charge

Bitcoin has not been combat tested in a business cycle. We have not had a recession or a financial crisis since 2009.

CAPT AJIT VADAKAYIL DECLARES  —  

BITCOIN IS A PONZI CHEME

GainBitcoin, the multi-level marketing cryptocurrency scheme accused of scamming investors of their money, has terminated all investment contracts

Amit Bhardwaj, founder of GainBitcoin, who investors discredit as the mastermind of the Ponzi-like marketing scheme, is presenting the termination of contracts as a reboot of the company’s operations,

Amit Bhardwaj is CEO of GBMiners, one of the many Chinese Bitcoin mining pools. However, he was also involved in GainBitcoin, a cloud mining Ponzi scheme. Promising investors a flat 10% per month is a clear sign of illegal activity. 

The company provides cloud mining contracts, which are on the expensive side of the spectrum. Moreover, the Ponzi Scheme relies heavily upon users bringing in new referrals.

But that was not the only problem. GBMiners does the mining operations in China, which controls over 2.1% Hashrate

The company moved on to more ventures and created MCAP Tokens. MCAP tokens were valued at $5 during the ICO and miners were given an option to accept the payout in the form of MCAP tokens. But a few months back, the users were no longer given a choice. The payouts were only in the form of MCAP tokens.

But the biggest fraud is in the valuation of MCAP. The company values MCAP token many times higher than the market price.

A Ponzi is  form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. For both Ponzi schemes and pyramid schemes, eventually there isn't enough money to go around, and the schemes unravel.

Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments. This new income is used to pay original investors their returns, marked as a profit from a legitimate transaction. 

Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.

The first notorious Ponzi scheme was orchestrated by a man named Charles Ponzi in 1919. The postal service, at that time, had developed international reply coupons that allowed a sender to pre-purchase postage and include it in their correspondence. The receiver would take the coupon to a local post office and exchange it for the priority airmail postage stamps needed to send a reply.

With the constant fluctuation of postage prices, it was common for stamps to be more expensive in one country than another. Ponzi hired agents to purchase cheap international reply coupons in other countries and send them to him. He would then exchange those coupons for stamps that were more expensive than the coupon was originally purchased for. The stamps were then sold as a profit.

This type of exchange is known as an arbitrage, which is not an illegal practice. Ponzi became greedy and expanded his efforts. Under the heading of his company, Securities Exchange Company, he promised returns of 50% in 45 days or 100% in 90 days.

Due to his success in the postage stamp scheme, investors were immediately attracted. Instead of actually investing the money, Ponzi just redistributed it and told the investors they made a profit. The scheme lasted until 1920, when an investigation into the Securities Exchange Company was conducted.

The concept of the Ponzi scheme did not end in 1920. As technology changed, so did the Ponzi scheme. In 2008, Bernard Madoff was convicted of running a Ponzi scheme that falsified trading reports to show a client was earning a profit.

Regardless of the technology used in the Ponzi scheme, most share similar characteristics:--

1. A guaranteed promise of high returns with little risk

2. Consistent flow of returns regardless of market conditions

3. Investments that have not been registered with the Securities and Exchange Commission (SEC)

4. Investment strategies that are a secret or described as too complex

5. Clients not allowed to view official paperwork for their investment

What is a 'Ponzi Scheme'?

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors.

This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. For both Ponzi schemes and pyramid schemes, eventually there isn't enough money to go around, and the schemes unravel.

BREAKING DOWN 'Ponzi Scheme'

A Ponzi scheme is an investment fraud where clients are promised a large profit at little to no risk. Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments.

This new income is used to pay original investors their returns, marked as a profit from a legitimate transaction. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.

The whole structure collapses when the cash outflow exceeds the cash inflow. The originators of the scheme, however, usually disappear with large sums a few days before the crash. Named after Charles Ponzi (1882-1949), an Italian immigrant to the US who, during 1919-20 collected more than fifteen million dollars from some 40,000 eager people by promising to double their investment in 90 days.

The first notorious Ponzi scheme was orchestrated by a man named Charles Ponzi in 1919. The postal service, at that time, had developed international reply coupons that allowed a sender to pre-purchase postage and include it in their correspondence. The receiver would take the coupon to a local post office and exchange it for the priority airmail postage stamps needed to send a reply.

With the constant fluctuation of postage prices, it was common for stamps to be more expensive in one country than another. Ponzi hired agents to purchase cheap international reply coupons in other countries and send them to him. He would then exchange those coupons for stamps that were more expensive than the coupon was originally purchased for. The stamps were then sold as a profit.

This type of exchange is known as an arbitrage, which is not an illegal practice. Ponzi became greedy and expanded his efforts. Under the heading of his company, Securities Exchange Company, he promised returns of 50% in 45 days or 100% in 90 days.

Due to his success in the postage stamp scheme, investors were immediately attracted. Instead of actually investing the money, Ponzi just redistributed it and told the investors they made a profit. The scheme lasted until 1920, when an investigation into the Securities Exchange Company was conducted.

The concept of the Ponzi scheme did not end in 1920. As technology changed, so did the Ponzi scheme. In 2008, Bernard Madoff was convicted of running a Ponzi scheme that falsified trading reports to show a client was earning a profit.

Regardless of the technology used in the Ponzi scheme, most share similar characteristics:--

1. A guaranteed promise of high returns with little risk

2. Consistent flow of returns regardless of market conditions

3. Investments that have not been registered with the Securities and Exchange Commission (SEC)

4. Investment strategies that are a secret or described as too complex

5. Clients not allowed to view official paperwork for their investment

6. Clients facing difficulties removing their money

FIVE KEY ELEMENTS OF A PONZI SCHEME

The Benefit: A promise that the investment will achieve an above normal rate of return. The rate of return is often specified. The promised rate of return has to be high enough to be worthwhile to the investor but not so high as to be unbelievable.

The Setup: A relatively plausible explanation of how the investment can achieve these above normal rates of return. One often-used explanation is that the investor is skilled and/or has some inside information. Another possible explanation is that the investor has access to an investment opportunity not otherwise available to the general public.

Initial Credibility: The person running the scheme needs to be believable enough to convince the initial investors to leave their money with him.

Initial Investors Paid Off: For at least a few periods the investors need to make at least the promised rate of return - if not better.

Communicated Successes: Other investors need to hear about the payoffs, such that their numbers grow exponentially. At the very least more money needs to be coming in than is being paid back to investors.

HOW DO PONZI SCHEMES WORK?

Ponzi Schemes are quite basic but can be extraordinarily powerful. The steps are as follows:--

Convince a few investors to place money into the investment.

After the specified time return the investment money to the investors plus the specified interest rate or return.

Pointing to the historical success of the investment, convince more investors to place their money into the system. Typically the vast majority of the earlier investors will return. Why would they not? The system has been providing them with great benefits.

Repeat steps 1 through 3 a number of times. During step 2 at one of the cycles, break the pattern. Instead of returning the investment money and paying the promised return, escape with the money and start a new life.

In 2008 we saw the fall of arguably the largest Ponzi scheme in history - Bernard L. Madoff Investment Securities LLC. The scheme had all the ingredients of a classic Ponzi scheme, including a founder, Bernard L. Madoff, that had a great deal of credibility as he had been in the investment business since 1960.

Madoff had also been the chairman of the board of directors of NASDAQ, an American stock exchange. ​

The estimated losses from the Ponzi scheme are in excess of 50 billion U.S. dollars.

Chinese authorities announced the most recent example of a Ponzi scheme in February 2016 where one million investors lost $7.6 billion to Ezubao.

This online lending company promised 15 percent returns, which never happened. Instead, the 21 owners spent money from investors to run their company and buy luxury cars and houses. Ezubao operated from July 2014 to December 2015

Ezubao was a peer-to-peer lending scheme based in the eastern Chinese province of Anhui. It was set up as an online scheme in July, 2014, attracted funds of about 9.2 Billion USD from 900,000 investors, and ceased to trade in December 2015.

On 1 February 2016, the scheme was closed down and 21 involved people were arrested. Zhang Min, the president of the parent company, Yucheng Global, told investigators that the company operated as a Ponzi scheme. By the time police made arrests, Ezubao had failed to repay 38 billion Chinese yuan ($5.8 billion).

Among the 26 given sentences over the scam was Ding Ning, Ezubao's founder and chairman of the platform's holdings company Anhui Yucheng, who was sentenced to life in prison for fraud and crimes including precious metals smuggling and illegally possessing firearms.

He was also fined 100 million Chinese yuan ($15.3 million). The incident sparked a crackdown on the freewheeling online financial services market and led to new regulations to control China’s P2P industry

Social Security is a Ponzi scheme. Workers pay into the Social Security Trust fund. Despite the name, there is no trust holding these funds for them. Instead, the funds pay benefits to existing retirees. Once the paying workers are ready to retire, new funds will come from new workers.

People call social security a Ponzi scheme because the people who got in early are receiving more than they paid in. This is not the case for retiring boomers. There will not be enough workers in the future to pay benefits to them when they retire.

Ponzi schemes are fraudulent investments. The participants believe they are putting their money to work in a real investment. Pyramid schemes are fraudulent multi-level marketing businesses.

Participants understand that they must recruit new members to make money. Those at the top levels of the pyramid make money from the new recruits at lower levels.

Sadly, those at the lower pyramid levels will never find enough new recruits to make money. They find they have wasted much time and money once the pyramid collapses.

http://ajitvadakayil.blogspot.in/2013/03/amway-merchants-of-pipe-dreams-capt.html

In many Ponzi schemes, rather than engaging in any legitimate investment activity, the fraudulent actors focus on attracting new money to make promised payments to earlier investors as well as to divert some of these “invested” funds for personal use..   

As with many frauds, Ponzi scheme organizers often use the latest innovation, technology, product or growthindustry to entice investors and give their scheme the promise of high returns. Potential investors are often less skeptical of an investment opportunity when assessing something novel, new or “cutting-edge.” 

Fraudsters are attracted to using virtual currencies to perpetrate their frauds because transactions in virtual currencies supposedly have greater privacy benefits and less regulatory oversight than transactions in conventional currencies…

Ponzi schemes typically involve investments that have not been registered with the seC or with state securities regulators.

It is a good rule of thumb to avoid investments you don’t understand or for which you can’t get complete information.

Be suspicious if you don’t receive a payment or have difficulty cashing out your investment. Ponzi scheme organizers sometimes encourage participants to “roll over” promised payments by offering higher investment returns.

Digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it Bitcoin can’t be considered as money and a mode of investment.

Bitcoin has been rife with fraud, hacks, and other misdeeds. ICOs, the popular crowdsourced fundraising technique pioneered by ethereum, have been particularly susceptible to hacks. 

In some cases, the trade-off for the anonymity and privacy that dealing in digital currencies provides is a reduced sense of security when conducting transactions. 

The fact that bitcoin and other cryptocurrencies have skyrocketed in value throughout the year has also primed investors to seek out offers promising huge returns.

According to a report by CNN Money, the U.S. Commodity Futures Trading Commission (CFTC) announced this week that it would file suit against a man and his New York-based company over an alleged Ponzi scheme involving bitcoin. 

This marks a historic (or perhaps notorious) first: the first time that the U.S. government has filed a fraud suit involving bitcoin, the world's leading cryptocurrency. 

The individual in question is Nicholas Gelfman of Brooklyn, New York, and the related company is a fund called Gelfman Blueprint, Inc. According to the CFTC, the fund "fraudulently solicited more than $600,000 from approximately 80 persons."

Classic Ponzi Strategy--

Per the allegations in the suit, the CFTC has suggested that Gelfman, who has been CEO and head trader for the fund, told investors that his firm "employed a high-frequency, algorithmic trading strategy." 

At the same time, however, the strategy itself was "fake," according to the filing. "The purported performance reports were false, and -- as in all Ponzi schemes -- payouts of supposed profits...actually consisted of other customers' misappropriated funds," the CFTC reported in a statement. The suit further alleges that Gelfman attempted to stage a computer hack as a means of concealing the scheme.

The director of enforcement for the CFTC, James McDonald, said in a statement that "the defendants here preyed on customers interested in virtual currency, promising them the opportunity to invest in bitcoin when in reality they only bought into the defendants' Ponzi scheme." The result, according to prosecutors, is that investors generally lost "most if not all of their invested funds."

The CFTC, which is an independent agency charged with monitoring the derivatives markets in the U.S., has not as of yet filed any other suits alleging fraudulent schemes related to bitcoin or other cryptocurrencies. 

Nonetheless, the digital currency space has been rife with fraud, hacks, and other misdeeds. ICOs, the popular crowdsourced fundraising technique pioneered by ethereum, have been particularly susceptible to hacks. 

In some cases, the trade-off for the anonymity and privacy that dealing in digital currencies provides is a reduced sense of security when conducting transactions. 

The fact that bitcoin and other cryptocurrencies have skyrocketed in value throughout the year has also primed investors to seek out offers promising huge returns.

A combination of concerns about investor security, money laundering, funding of terrorist activities and more must cause India to rethink ( like China and Russia )

  

A month ago, the head of Brazil's central bank took a harsh position toward bitcoin , comparing the cryptocurrency to a pyramid scheme.   He said--The bitcoin is a financial asset with no ballast that people buy because they believe it will appreciate. That is a typical bubble or pyramid scheme.

In a pyramid scheme, organizers solicit investors who are then encouraged to find new buyers themselves, thereby creating a revenue stream based on new investments rather than the underlying product itself.

The president continued by confirming that the Banco Central do Brazil "is not interested in bubbles or illicit payments" and that such activities are "not something the central bank would like to encourage."

Digital currencies, in their current form, should be prohibited by law. And not because they are a Ponzi scheme (which they are), and not because they can help facilitate criminal activity (which they do), but because they incur colossal social waste ( energy )

The energy consumption to fuel bitcoin is equivalent to the consumption of more than 2.2 million average U.S. households.

Add in the energy for other digital currencies like Ethereum, then figure in the resulting environmental pollution, and it’s clear that such currencies have great social costs.

Bitcoin,  consists of two separate pieces. The first is a mathematical hashing algorithm, which drives its mining feature; the second is a storage feature, called the “blockchain.” Although the blockchain is not particularly efficient, either, it is the mining that is the disaster.

Mining is what creates bitcoins in the first place. It is the running of a computer algorithm to solve a mathematical problem. Mining consumes about 19 terawatt hours of electricity costing about $1.3 billion a year (plus more for hardware costs). 

This is less than the estimated $3.2 billion in value of all bitcoin (though the value changes every day), so market forces have been pushing more investment into bitcoin mining — in economics-speak, entry is profitable until the marginal cost equals the marginal revenue.

Mining has absolutely nothing to do with making the currency secure. No, the purpose of mining is perverse: to solve a problem whose only purpose is that it is increasingly difficult to solve. 

If it were easy to solve, everyone could manufacture bitcoins aplenty. It is the difficulty that effectively creates bitcoin’s scarcity, and the expectation of even more difficulty and future scarcity has attracted speculators.

Scarcity in itself is not enough. For example, my left thumb print is scarce, but it has no intrinsic real value.

When one pulls back the curtain, the bitcoin hashing problem really has only its one nefarious purpose: It exists to provide the mystery of complex mathematics to confuse and help hide the true benefits of the hashing solutions (i.e., the bitcoins), which is zero. 

An important part of the deception is that mining is mathematically guaranteed to become ever more expensive, as it gets harder to mine new bitcoins. That difficulty creates the false impression that today’s value is a bargain compared to what it will be in the future.

Bitcoins are the ultimate Ponzi scheme.

Today’s prime use of bitcoin, other than for naive speculation, seems to be black- and gray-market transactions

A Chinese local can purchase bitcoins on the local market, move them anonymously to the United States, and convert them back into dollars (or store them). It can be argued whether the ability to avoid currency controls creates social value (or not).

 But it’s clear that such transactional anonymity is not particularly useful to most legal transactions. Bitcoin also brings risks. Standard channels of payment afford some safety against anonymous hacks. Banks offer some protection. Bitcoin does not.

Digital currencies, in their current form, should be prohibited by law. And not because they are a Ponzi scheme (which they are), and not because they can help facilitate criminal activity (which they do), but because they incur colossal social waste.

This waste is energy. The media organization Diginomics estimates that the energy consumption to fuel bitcoin is equivalent to the consumption of just under 2 million average U.S. households. Add in the energy for other digital currencies like Ethereum, then figure in the resulting environmental pollution, and it’s clear that such currencies have great social costs.

For clarity, let me keep the discussion here to bitcoin, which consists of two separate pieces. The first is a mathematical hashing algorithm, which drives its mining feature; the second is a storage feature, called the “blockchain.” Although the blockchain is not particularly efficient, either, it is the mining that is the disaster.

Mining is what creates bitcoins in the first place. It is the running of a computer algorithm to solve a mathematical problem. Mining consumes about 18 terawatt hours of electricity costing about $1 billion a year (plus more for hardware costs). 

This is less than the estimated $3 billion in value of all bitcoin (though the value changes every day), so market forces have been pushing more investment into bitcoin mining — in economics-speak, entry is profitable until the marginal cost equals the marginal revenue.

For the record, mining has absolutely nothing to do with making the currency secure. No, the purpose of mining is perverse: to solve a problem whose only purpose is that it is increasingly difficult to solve. 

If it were easy to solve, everyone could manufacture bitcoins aplenty. It is the difficulty that effectively creates bitcoin’s scarcity, and the expectation of even more difficulty and future scarcity has attracted speculators.

Why does scarcity matter? Anything that exists in unlimited amounts cannot be worth very much. Sand is not worth a lot in California. There is too much of it. But the reverse is not the case. Scarcity in itself is not enough. For example, my left thumb print is scarce, but it has no intrinsic real value.

Bitcoins are scarce, but they have no intrinsic value. When one pulls back the curtain, the bitcoin hashing problem really has only its one nefarious purpose: It exists to provide the mystery of complex mathematics to confuse and help hide the true benefits of the hashing solutions (i.e., the bitcoins), which is zero. 

An important part of the deception is that mining is mathematically guaranteed to become ever more expensive, as it gets harder to mine new bitcoins. That difficulty creates the false impression that today’s value is a bargain compared to what it will be in the future. Bitcoins are the ultimate Ponzi scheme.

But aren’t there some real uses of bitcoins? Proponents of digital currencies often argue that bitcoins make transactions more efficient and thereby create value. But even if you believe that, bitcoin has much higher costs than better alternatives. We already have plenty of good currencies and near-currencies (such as credit) that can play transaction-cost reducing roles. 

And, unlike official currencies like the U.S. dollar, which is ultimately backed not only by legal tender rules but also by its ability to pay taxes, bitcoin has no fallback uses.

Today’s prime use of bitcoin, other than for naive speculation, seems to be black- and gray-market transactions. Using bitcoin is especially attractive in countries like China and India that have imposed currency controls that individuals want to circumvent. 

A Chinese local can purchase bitcoins on the local market, move them anonymously to the United States, and convert them back into dollars (or store them). It can be argued whether the ability to avoid currency controls creates social value (or not). 

But it’s clear that such transactional anonymity is not particularly useful to most legal transactions. Bitcoin also brings risks. Standard channels of payment afford some safety against anonymous hacks. Banks offer some protection. Bitcoin does not.

Eventually, authorities will crack down on the illegal channels of currency controls with bitcoin, and the value of bitcoin will fall. Speculators and miners will then further drive down the value, and the bubble will collapse. The last ones in the game of musical chairs will have nothing.

Rather than destroying electricity in order to hide the nefarious schemes of the bitcoin hustle, we should design a new kind of electronic currency that works almost like bitcoin but without the mining algorithm

Ethereum's blockchain is the most popular platform to use when hosting an ICO — its blockchain allows people to write "smart contracts" that will release new tokens to investors when a certain amount of Ether, the digital currency that powers Ethereum, is received. 

This Ether can then be converted into dollars or other fiat currencies. Ethereum was launched in 2015 as a payment platform and cryptocurrency, similar to Bitcoin.   

Cybercrime into four types: exploits, hacks, phishing and ponzi schemes. 

Although high-profile hacks and exploits tend to get more media coverage, more than half the stolen funds to date have been acquired through phishing, where communications are sent from someone pretending to be a company in order to gain access to victims' personal information.

The first major theft on Ethereum, in June 2016, saw $74 million (£57.6 million) stolen from 11,000 victims. At the time, the platform's total ICO funds were worth $177 million (£137.9 million), meaning the thieves were holding more than 40%.

In June 2017, $30 million (£23.3 million) was stolen from coding company Parity, while August 2017 witnessed the first successful Ethereum hack, in which $7.3 million (£5.7 million) was stolen from trading platform CoinDash.

A startup named Bancor has raised about $153 million in less than three hours from anonymous investors.. Bancor found investors through an ICO—an Initial Coin Offering. Bancor initially gained popularity amongst investors within the cryptocurrency community after the endorsement of billionaire investor Tim Draper.

 Bancor development team raised $150 million for 40 lines of untested code.  Just 40 lines of code-- $3.5M per line of code.. Bancor codebase has a distinct javascript quality.  

A well-written Javascript code is like the mythical Yeti: often discussed, with snippets of evidence for its existence, but no one has seen it in its full, corporeal form. This has been the hallmark of badly written smart contracts: they have messy code paths, don’t follow best practices, and happen to work by the skin of their teeth.

At the core of Bancor’s technology is a set of formulas that solve the double coincidence of wants problem for asset exchange. It works by creating a token that is backed by one or more reserve tokens for example Ether (ETH) at a Constant Reserve Ratio (CRR).

Bancor attracted big name venture capitalists  when it published a white paper proposing to create a kind of decentralized digital currency exchange that would allow holders of the Bancor tokens to exchange them for other digital currencies listed on their market-making platform - a functionality, its creators insisted, that would one day render digital currency exchanges obsolete.

Bancor protocol enables anyone to create a new type of digital coin called a Smart Token, which can hold and trade other tokens. 

This allows the Smart Token contract to serve as its own market maker, automatically providing so-called price discovery, and liquidity to other coins. So effectively, Bancor has created an exchange that will automatically price and trade any cryptocurrency that wants to list with it, as well as a token. 

The company says it will always have enough liquidity to make the market because the currencies have to build a reserve in Bancor tokens.

So, Bancor Protocol introduces the “smart token.” The essence of the smart token predicates on the idea that it does not actually need to be on the blockchain in order to become liquid. It is composed of units of another token or Ether which can then be used rather than having to trade tokens.

When smart tokens are purchased (in any of their reserve currencies) the payment for the purchase is added to the reserve balance, and based on the calculated price, new smart tokens are issued to the buyer.

Due to the calculation above, a purchase of a smart token with a less than 100% CRR will cause its price to increase, since both the reserve balance and the supply are increasing, while the latter is multiplied by a fraction.

So Bancor is more of a new way of transacting and holding potentially volatile assets, rather than a typical token with a purpose, or platform with a token.

For assets that actually have value, there will be a market.  For assets that people don’t want to buy... why should there be some pity-based programmatic market maker to provide liquidity?

Bancor tokens are - to borrow a conspicuously apt analogy from Cornell Professor Gun Sirer - “like a child’s swimming pool placed in an ocean.”

 Essentially a less liquid, more volatile version of Ether. Bancor was built on top of the Ethereum protocol, and Gun Sirer said buyers needed ethereum to purchase Bancor during the crowdsale..   

At best, Bancor is what some in the digital currency and blockchain communities would call “a solution in search of a problem.”

A con to this is, of course, that smart tokens themselves get usurped into some bigger platform, like Ethereum itself.

Bancor couldn't care less about their token price collapsing. They've already got all of the "investors'" money.

http://www.miaminewtimes.com/news/cryptsy-founder-paul-vernon-disappeared-along-with-millions-of-his-customers-cash-8557571

TODAY BITCOIN VALUE WENT UP LIKE A SPIKE

REASON?

BECAUSE ROBRT MUGABE WAS ARRESTED BY A COUP IN ZIMBABWE ?

BRAAAAAAAAAY !

So so so—

Bitcoin cuts out the middle man?

Oh yeah ?

APPIDIYAAAA ?

Bitcoin doesn't remove the middleman so much as replace him with middlemen who don't make you pay much, but make society as a whole do so instead. Is this progress?

Bitcoin's breakthrough is to have a decentralized network of "miners" sit in between us instead. Now, remember, these miners are trying to win new Bitcoins by solving computationally-taxing math problems.

The clever part, though, is that in the process of doing so, they also create a public ledger of every single Bitcoin transaction, what's called the blockchain. That includes every Bitcoin that's ever been won, every Bitcoin that's ever been used, and every Bitcoin that's ever been transferred.

 So now we don't need a bank to know that I have the money I'm sending to you, and that I'm only sending it to you.

The miners confirm all this.

And the best part is that instead of having to pay the bank myself to do this, the system pays the miners in new Bitcoins.

The question, though, is how you get people to mine Bitcoin to begin with. Sure, you can tell them that Bitcoin is digital money they can use to buy things online, but they already have money they can already use to buy things online. 

And while merchants would be more than happy to save the 2.5 percent they pay in credit card transaction fees, customers are a lot more more blasé since they don't pay them directly.

The answer, then, was to do what makes anything popular: make it exclusive. Specifically, Bitcoin limits the total number of coins that will ever be created to 21 million.

Bitcoin's finite supply means that its price should go up, and keep going up. So if you have dollars that are losing a little value to inflation every year and Bitcoins that are gaining it, which one are you going to use to buy things with?

The question answers itself, and it raises another. Why would this ever change? Unless you can't buy something online with dollars—like drugs—you'd always want to use your dollars instead. 

Buying things with Bitcoin would be like cashing out your 4 decade old stock to go grocery shopping even though you have plenty of actual cash lying around.

The catch-22 is people buy Bitcoins because they think the price will go to infinity and beyond once everybody uses them, but they don't spend their own Bitcoins because they think the price will go to infinity and beyond once everybody else uses them. And so nobody uses them.

But if nobody uses them, then the price will stay stuck at something a lot less than infinity let alone beyond. So the Bitcoin faithful have tried to not only convert people, but also convince them to martyr themselves, financially-speaking, for the crypto cause.

It goes something like this. Hey, do you want to hear about the future? It's a digital currency called Bitcoin that lets you spend or move your money online without paying any fees. Sounds great. How does it do that? Well, Bitcoin saves you money by making transactions irreversible.

 So ... if I get scammed, I got scammed? There's nothing I can do about it? Yes. Okay, but is it at least easy to use? The thing is, I don't actually use it. I just hoard it. I'm waiting for some greater fools to push up the price by using theirs. Oh. Yeah. So you should buy some Bitcoins and use yours. I'll get back to you on that.

Instead of you paying the bank a fee to process a transaction, the Bitcoin system pays miners new coins to do so. Then these transactions get added to the list of all others in the public ledger, the blockchain. 

But anytime it seems like you're getting something for nothing the costs are probably just being hidden. What are those costs? Well, Bitcoin mining is a pretty expensive business. Even the most specialized computers, which mine Bitcoins and only mine Bitcoins, require a lot of energy.

Why should we care that Bitcoin miners have big energy bills? They're the ones paying them, after all. Well, for the most part. The problem is the price you pay for energy doesn't include the cost we all pay for pollution.

Created in 2008, Bitcoin went public with its first transaction in 2009. Touted as the first completely democratic, decentralized form of currency, the digital coin was welcomed as a way for anybody to conduct transactions anywhere in the world in private and independent of the regulations and control of traditional banking. 

Indeed Jew Rothschild controls Pandavas and the Kauravas—the Capitalist pigs and the worker bee commies.

The currency was launched in 2009. It has traded for less than 1 cent.    4 days the value went up to 7800 USD.. 

In the years since that first Bitcoin transaction, the cybercurrency has had a dizzying run that saw it accepted for transactions involving things like in vitro fertilization, luxury cars, travel, college tuition, real estate – and drug dealing.

Stripped of the power to manipulate currencies to advance nefarious ends, governments will collapse, and we will live in an anarcho-utopia. . A currency is used to enter transactions; the more transactions there are, the more of the money you need. 

As the economy grows, a fixed-supply currency becomes worth more in terms of goods and services, and people begin to hoard it—expecting that if they wait a little longer, they will be able to buy more. Once hoarding takes over, circulation ends, and with it the function of the currency. Hoarding accounts for the large increase in the value of bitcoins

If merchants are willing to accept bitcoins, they will be willing to accept the substitutes, especially as bitcoins become scarce and consumers scramble for substitutes

A regular Ponzi scheme collapses when people realize that earlier investors are being paid out of the investments of later investors rather than from the returns on an underlying asset. 

Bitcoin will collapse when people realize that it can’t survive as a currency because of its built-in deflationary features, or because of the emergence of bytecoins, or both. A real Ponzi scheme takes fraud; bitcoin, by contrast, seems more like a collective delusion.

Bitcoin continues to flourish, thanks to private Bitcoin exchanges that sprang up around the world

BitCoin looks like it was designed as a weapon intended to damage central banking and money issuing banks, with a Libertarian political agenda in mind—to damage states ability to collect tax and monitor their citizens financial transactions.   

Libertarianism is like Rothschild’s Leninism: a  internally consistent political theory that, regrettably, makes prescriptions about how to run human society that can only work if we replace real messy human beings with frictionless spherical humanoids of uniform density -because it relies on simplifying assumptions about human behaviour which are unfortunately wrong.

Out of 21 million Bitcoins , 16.5 million have been mined till date

While the number of bitcoins in existence will never exceed 21 million, the money supply of bitcoins can exceed 21 million due to Fractional-reserve banking. 

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities

The typical dynamics of fractional reserve banking (FRB) and the primary role of a central bank don’t fully apply to cryptocurrencies for three reasons. 

First, cryptocurrencies are decentralised and self-managed and so there is no need for a central banking institution per se to actually govern the cryptocurrencies. 

Second, there is no need for a banking institution to facilitate or intermediate transactions over great distances, or in large volume. 

Third, there is no need for a deposit. Personal crypto security measures are potentially sufficient to secure a small amount or a large amount of bitcoin, equally as well, making the security of a bank unnecessary.

FRB invented by Jew Rothschild is the intentional quarantine of a proportion of a commercial bank’s deposits into a reserve account, held by a central bank, or currency held at the bank; whilst using the remainder for commercial activity of the bank, to lend out make profit

FRB came about as banking institutions began to realise that they did not require actual cash to meet all withdrawals customers could potentially make at once. Further it ensures that fiat currency is not effectively taken out of circulation from an economy and can instead be put to work, by magnifying the base money originally created by the central bank.

 Banking institutions realized that they only need to maintain sufficient levels of reserves to mitigate the risk of simultaneous withdrawals, and that the rest of the funds on deposits could be put to work.

Banking institutions have a number of mechanisms under the current system to try to meet liquidity requirements including their reserves; the interbank market; lending windows from the central bank etc. The degree to which FRB leads to money supply creation then depends on the degree to which the banking institution feels it can lend out its reserves while still allowing people full access to their deposits.

Bitcoin is virtual currency in that it is not represented by a physical token and is not backed by or pegged to the value of another underlying physical asset like gold or a unit of an existing fiat currency.

The Bitcoin cryptocurrency is implemented through a globally shared and distributed ledger of transactions representing Bitcoin events in its economy stored on a data structure called the blockchain . 

Events recorded on the blockchain are either: (a) new bitcoin minted into supply (referred to as “mined”), or (b) bitcoin traded between parties (“transacted”). The blockchain contains the history of every single bitcoin from when it was mined to whom it is presently owned by, and the blockchain data structure exists in hundreds of thousands of computers simultaneously, each copy synchronising itself with other “full nodes” (the name given to computers the Bitcoin Core open source software, are connected to the Internet, and hold a complete copy of the global blockchain).

The total supply of bitcoins in the Bitcoin economy (what we have termed ‘C0’), by design, is set to never exceed 21 million bitcoins and the number of bitcoins in circulation increases gradually according to an algorithm.

At the time of writing, there were just over 16.5 million bitcoins in circulation out of the possible 21 million . The limit of bitcoins mined into existed is expected to be reached sometime in the year 2140 . 

A bitcoin is also presently divisible into 2 x 10–8 smaller units, known as “satoshis”, which means that at the upper limit there would be 2 x 1014 units of money, or 2.1 quadrillion units.

Bitcoins are brought into existence by an algorithm embodied in the Bitcoin Core open source software running on “full nodes” and the process is referred to as “mining”. Each computer in the Bitcoin ecosystem must run either: (a) a basic wallet application (to receive and send bitcoin) or (b) run a “full node” (that mines blocks and validates transactions).

Mining bitcoin means about solving a mathematical puzzle, one that can only be solved using brute computer force . Once a full node solves such a puzzle two things occur: (i) the computer has generated an empty block (think of it as a blank page in an accounting ledger) and for which it earns a mining reward (at the time of writing, 12.5 bitcoins), and (ii) it has earned the status of an ‘honest node’, through its proof-of-work. 

The proof-of-work (solving the puzzle) represents a vesting of interest in the network remaining honest. An ‘honest node’ then gets to examine queued transactions in the network and earn further transaction fees from each transaction on the ledger page (block) they validate.

 Validating transactions means checking that the transactions parties own the bitcoins they are transacting and that the cryptographic integrity of the transaction is intact.

Once these transactions are validated, they are encoded in the block and chained to the global blockchain and the new state of the blockchain is then propagated throughout the Bitcoin network. There are a number of other rules and behaviours for resolving conflict, rejecting invalid transactions, and arriving at a consensus, but the above describes in broad terms the process that drives the Bitcoin ecosystem.

Wallet software is used to generate the “addresses” used to receive inbound bitcoin from a sender. One or more addresses are created for receiving Bitcoin and these addresses are (the “hash” of) the public key side of a public-private key pair. 

The private key is known only to the receiver and is also cryptographically linked to the public key. A recipient of bitcoin can prove they own the bitcoin sent to their address (effectively the public key) because they know the private key linked to that public key. Lose the private key and one loses the bitcoin associated with the public key.

Addresses are meant to be used only once, to preserve the anonymity of the receiver by preventing patterns from appearing on the blockchain associated with duplicate public keys, Reuse of an address is considered a cardinal breach of personal crypto security in blockchain applications. 

A sender’s address is never recorded on a transaction on the Bitcoin blockchain. The premise is if a valid transaction makes it to the blockchain then the sender had bitcoin to send because the sender had access to the private key associated with the public key where bitcoins were located (having arrived there from earlier validated transactions).

Bitcoin is acquired by someone in one of two ways: (i) either they themselves have mined the bitcoin (solving puzzles and then earning transaction fees for validating transactions), or (ii) they received it through trade (presumably for something of equivalent value). By trade, it means that someone can trade another fiat currency or even another cryptocurrency for a sum of Bitcoin. Like any currency exchange point, reserves of one currency can be exchanged for a sum of Bitcoin.

It was not until 1913 that the US created the Federal Reserve system, following a series of DELIBERATELY CREATED banking crises by Jew Rothschold.. With the signing of the Federal Reserve Act by Woodrow Wilson, a new decentralised system of central banking was created.

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Nelson Singh

September 27, 2015 at 9:26 AM

namaste sir

was sinking of titanic ship done purposefully to create US federal reserve .

ReplyDelete

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Capt. Ajit Vadakayil

September 27, 2015 at 2:55 PM

hi ns.

Lord Astor, the US Opium agent cum banker agent of Rothschild was sacrificed on the Titanic.

Woodrow Willson was arm twisted by Rothschild – he often repeated for ALL AND SUNDRY TO HEAR " I am a most unhappy man. I have unwittingly ruined my country."

In the movie Titanic, Kate Winslett’s fiancé was John Jacob Astor IV. Kate Winslett acted out Madeleine Talmage Force, the fiancé of fur trader front drug runner Astor.

Madeleine survived. Astor’s estate gave her an endowment of 5 million Dollars on the condition that she never remarry.

Years later, she found a man and did remarry and thereby gave up the five million dollars.

Astor was among the 1,514 people on board who did not survive. He was the richest passenger at the age of 47. He was the Opium agent of Rothschild at Boston .

His great grandfather German Jew John Jacob Astor I, born in Waldorf, Duchy of Baden (Germany), was related to German Jew Rothschild by blood.

Others with Astor in the Rothschild Opium drug trade were SUB AGENTS Alsops, Appletons, Bundy's, Coolidges, Endicots, DuPont's, Freeman's, Hoopers, Higginsons, Jacksons, Kennedy’s, Li’s, Perkins, Rockefellers, Roosevelts, Morgans, Russell's, Lowells, Laurences, Saltonstalls, Phillipses, Sutherlands, Mathesons, Barings, Lehmans, Delanos, Tafts Schiffs, Harrimans, Guggenheims, Stimpsons, Wayhausers, Vanderbilts, Bush's , Philburys, Cabots, Forbes, Welds, Sturgises, Warburgs, Yales, Kerrys etc.

In 1913 Woodrow Wilson was installed by Rothschild in the US President’s chair , on the express condition that he must sign the US Federal Reserve act into law.

At the time the act was frustrated in Congress from passing.

The cunning Jews moved, days before the Christmas of 1913 when the majority of the Congress men were enjoying at home with their families --the Federal Reserve act was voted in. And Wilson true to his promise to Rothschild, made it law.

The Federal Reserve Act was signed by President Wilson on December 23, 1913—when all were partying at their homes

The US dollar is printed in the Fed reserve—which is owned by Rothschild, NOT the government of USA , as all naïve yanks think.

President Wilson dragged America into the First War for the Jews, after being elected on the promise of keeping America out of the war. Churchill, made it easy for him with the US Congress, by sinking the sister ship of Titanic, RMS Lusitania on 7 May 1915

http://ajitvadakayil.blogspot.in/2011/07/winston-churchill-henchman-or-hero-capt.html

US President Woodrow Wilson revealed the Bagha Jatin conspiracy to Rothschild . Woodrow Wilson the President Of USA., showed his gratitude to Rothschild, for it was he who installed Wilson in the White House.

The most important reason Rothschild banking cartel wanted America in World War One, was because they were now in control of the American money supply via the Fed Reserve.

They needed the American government to take massive war loans and hook them into debt to the Jewish banks faster and on a fast pace.

These people are the top masterminds and conspired with Rothschild for the creation of illegal FEDERAL RESERVE BANK in 1913: Theodore Roosevelt, Paul Warburg - Representative of Rothschild, Woodrow Wilson - U.S. President Signed FED Into Act, Nelson W. Aldrich - Representative of Rockefeller, Benjamin Strong - Representative of Rockefeller, Frank A. Vanderlip - Representative of Rockefeller, John D. Rockefeller - Rockefeller Himself, Henry Davison - Representative of J. P. Morgan, Charles Norton - Representative of J. P. Morgan.

American publicist of Czech origin Ross Hedvíček's book "Spy and Counterspy" published in 1940, written together with W. Irwin.

He wrote “Had E. V. Voska not interfered in this history, today nobody would have heard about Mahatma Gandhi and the father of the Indian nation would have been Bengali Bagha Jatin...

President Woodrow Wilson was the fairy godmother who provided Rothschild’s agent Jew Trotsky with a passport to return to Russia to "carry forward" the Jewish Bolshevik revolution.

This American passport was accompanied by a Russian entry permit and a British transit visa.

Jennings C. Wise, in Woodrow Wilson: Disciple of Revolution, makes the pertinent comment, "Historians must never forget that Woodrow Wilson, despite the efforts of the British police, made it possible for Leon Trotsky to enter Russia with an American passport."

We have ignored one of the priceless Jewels of India. How many streets in India and named after Gandhi? How many are named after Bagha Jatin?

The British rulers themselves have said, if this man as English we would have made a statue of Bagha Jatin all over England, right next to Nelson.

The British Officer who shot Bagha Jatin , after his bullets of his Mauser pistol ran out said " Bagha Jatin would have set Indian free by violence much before Gandhi arrived in India from South Africa".

Super naive , Gandhi was brainwashed with a SATYAGRAHA NON-VIOLENT CONCEPT by crypto Jew Leo Tolstoy first, and then by a handpicked homosexual German Jew Hermann Kallenback in the direct employment of Rothschild, who stayed with him as a bed room mate.

To facilitate this Gandhi was forced to kick out his own wife, from his vicinity--for Kasturba had a centering influence of Gandhi.

This has raised aspersions all over the world that Gandhi and Hermann Kallenback were both gay and they were engaged in rampant debauchery and homo-sexual activity.

A Jew by the name of Joseph Lelyveld ( a Zionist and Pulitzer prize winner ) wrote a yellow decoy book “Great Soul: Mahatma Gandhi and His Struggle With India”—alluding to sordid sexual activity between two men .

That Mahatma Gandhi and Hermann Kallenback , using Vaseline on each other , while both were at Tolstoy Farm in South Africa .

The headlines of UK’s Daily Mail, Britain’s second-largest newspaper, and many other Zionist held newspapers and media all over the world screamed, “Gandhi left his wife to live with a male lover, new book claims”

Lelyveld quotes correspondence between Gandhi and Kallenbach, including excerpts from the latter's diary, with language that seems suggestive of a homosexual relationship, with Gandhi speaking of his Hermann Kallenbach as "Lower House," and of himself as "Upper House," and saying that cotton-wool and Vaseline were a constant reminder of their "mutual love"

In a letter written from a London hotel during a trip to lobby British authorities in 1909, for example, Gandhi’s infatuation with Kallenbach is clear: “Your portrait (the only one) stands on my mantelpiece in the bedroom. The mantelpiece is opposite the bed.”

Politicians in India have generally and across the political spectrum denounced the book and demanded it be banned as being allegedly defamatory, with the Government of Gujarat under then CM Narendra Modi banning the book as "perverse in nature... hurting the sentiments of those with capacity for sane and logical thinking," and demanding a "public apology" from Lelyveld,

Capt ajit vadakayil

..

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Bitcoin is only viable, because it is supported by existing world currencies, such as the Federal Reserve-backed dollar, on which it relies for its other functions.

Much is made of Bitcoin’s ability to ‘decentralise’ and ‘democratise’ currency operations.

If Bitcoin is a software then it is software based on a model, and that model is the blockchain which serves as the basis for a whole ecology of cryptocurrencies. 

According to its advocates, the blockchain’s primary virtue is that it is decentralized. However, observably the blockchain operates through a combination of centralisation and decentralisation, depending on what aspect of the machinery you are analysing. The ledger may well be (rather unevenly) distributed, yet the sale of coins must pass through highly centralised and vulnerable exchanges.

Furthermore, over and above the claims of decentralisation, ‘Bitcoin functions as a centralised and concentrated locus of financial power’.  This practical observation raises severe doubts about any supposed ‘democratisation’ and is clearly at odds with the cryptocurrency’s  anti-regulatory ideology.

Bitcoin bolsters the exact same ‘political power that the blockchain is specifically constructed to dismantle

Bitcoin zealots to ‘simultaneously advocate for two diametrically opposed ends’: disintermediation and mediation both at once

AISA KAISA HAI REH ?

BALS TO NITCOIN.. INDIA MUST  REJECT IT.

HUM LOG CHOOTIYA NAHI HAI !

Bitcoin – exactly because it lies outside regulatory structures that govern basic economic civil liberties – is ‘particularly prone to the kinds of hoarding, dumping, derivation, and manipulation that characterise all instruments that lack central bank control and regulatory oversight by bodies like the SEC’

Bitcoin’s key feature – ‘the market’s unenforceability of governmental rules’  – is exactly what allows ‘cheating of some kind and a breaking of the social contract.

Its structure is a quasi-feudal paradigm in which lower order Bitcoin miners toil to create market activity, speculated upon by powerful KOSHER masters in an unregulated system.   

In this light, Bitcoin and other species of cryptocurrency is a PONZI –LIKE  in structure, or even worse, a disguised ‘work-at-home’ get-rich-quick scheme, the complexity of which obscures and even flatters those it exploits. 

MARK MY WORDS— PRETTY SOON BITCOINS WILL BE SWAPPED FOR GOLD

ROTHSCHILDs AGENT RAGHURAN RAJAN TRIED TO MAKE KERALA TEMPLES DECLARE THEIR GOD WITHIN AN HOUR OF SITING ON THR RBI GOVERNORs CHAIR—  WE TOLD HIM TO “CATCH AND SWING”

Having a blockchain without Bitcoin ( without miners) has completely no sense at all, it is extremely slow, extremely inefficient and extremely insecure and has totally no advantages over RDBMS.

A relational database management system (RDBMS) is a database management system (DBMS).. RDBMSs have been a common choice for the storage of information in new databases used for financial records, manufacturing and logistical information, personnel data, and other applications since the 1980s..

Relational databases have often replaced legacy hierarchical databases and network databases because they are easier to understand and use. A relational database is a collection of data items organized as a set of formally-described tables from which data can be accessed or reassembled in many different ways without having to reorganize the database tables.

The most widely used systems are Oracle, MySQL (open source), Microsoft SQL Server, PostgreSQL (open source), IBM DB2, Microsoft Access, and SQLite (open source);

However, relational databases have received unsuccessful challenge attempts by object database management systems in the 1980s and 1990s (which were introduced trying to address the so-called object-relational impedance mismatch between relational databases and object-oriented application programs) and also by XML database management systems in the 1990

The first commercially available RDBMS was Oracle, released in 1979 by Relational Software, now Oracle Corporation. As of 2009, most commercial relational DBMSes employ SQL as their query language.

The object-relational impedance mismatch is a set of conceptual and technical difficulties that are often encountered when a relational database management system (RDBMS) is being served by an application program (or multiple application programs) written in an object-oriented programming language or style, particularly because objects or class definitions must be mapped to database tables defined by a relational schema.

The term object-relational impedance mismatch is derived from the electrical engineering term impedance matching. An object database is a database management system in which information is represented in the form of objects as used in object-oriented programming. Object databases are different from relational databases which are table-oriented. Object-relational databases are a hybrid of both approaches.

Object databases have been considered since the early 1980s

Because the term “blockchain” is not clearly defined, you could argue that almost any IT project could be described as using a blockchain. But assuming that you're not trying to bend the truth too much, you probably have an application that can make use of a distributed database to store information that will support some critical business process, and updates to that database must be cryptographically protected against tampering.

Bitcoin miners, the people who write updates to bitcoin’s blockchain, are currently paid the equivalent of over $7500 (in Bitcoins) for each update that they make. Without this incentive, they would almost certainly not make any updates at all. There are also performance penalties for other approaches to mediating who can write to a blockchain. Not all are as expensive as the approach followed by Bitcoin, but they all involve some sort of performance penalty.

If high performance is necessary for your application, a relational database, not blockchain, may be the better choice.  In fact, it's difficult to think of realistic examples where the performance of a system that uses a blockchain would have better performance than one based on a relational database. A Bitcoin-like blockchain might also end up being significant obstacle to scaling the performance of your application beyond small test cases. 

A Bitcoin-like blockchain is viewable by absolutely anyone, which means that the confidentiality of any data stored in one is essentially zero. In the business world, however, there are lots of good reasons to not make data public. Regulated data certainly can't be public. And many businesses do not want to expose data that could be valuable to their competitors, including many transactions in which they are involved.

Therefore, a public Bitcoin-like blockchain may seem to be not very useful in many business applications. But is not necessary to store a full record of a transaction in a blockchain. Instead, you can include just a cryptographic hash of the record of a transaction. In that case, verifying that the record of a particular transaction hashes to the value that is stored in the blockchain may be enough to resolve any disputes that arise. 

It's possible to get a reasonable level of data confidentiality with a blockchain.

Bitcoin’s blockchain cryptographically links each block added to it, so that a modification of any one of the blocks will easily be caught. And while blockchain logs each transaction involving Bitcoins, it is easy for a relational database to log each SQL command that it receives from clients. Because it is easy to digitally sign data written to a relational database, it is also easy to get cryptographic assurance that the data written to that database has not been altered.

So there's no clear advantage for either blockchains or relational databases when it comes to providing data integrity.

While blockchains and relational databases are both useful tools for storing information that supports critical business processes, each technology excels in different areas.

Blockchains have a decisive advantage when it comes to providing a robust, fault-tolerant way to store critical data.

Relational databases seem to have a decisive advantage when it comes to performance.

It seems unlikely that relational databases will ever provide the level of robustness that the massively parallel blockchains do, and it's unlikely that blockchains will ever provide the level of performance of relational databases.

Gains from disintermediation, often cited as a key advantage of blockchain technology,  can never be realized once the costs to support and maintain a blockchain-based application are taken into account.

But smart contracts also exist in the world of relational databases, where they’re known as stored procedures. Anything that can be accomplished with one technology can also be accomplished with the other, so the right question to ask is whether a particular use of one of a technology is right for your application.

Relational databases (RDBMS) organize data in tables and use the SQL query language. They became the norm in the 80s. Even if their architecture evolved in complexity over time (n-tier, distributed processing, etc.) they remain essentially centralized i.e. located, stored, and maintained in a single location. This category represent more than 90% of the database market in terms of revenues and includes the most well-known vendors and systems: MySQL, Oracle, Microsoft SQL Server, IBM DB2, SAP, PostgreSQL, SQLite, Teradata, etc.

Databases are distributed (DDBMS) when the storage devices are not all attached to a common processing unit such as the CPU, but are spread across a network. With the development of the internet, businesses needed solutions that could process huge amounts of structured & unstructured data, and that could scale across networks. DDBMS use consensus mechanisms to ensure fault-tolerant communications, and provide concurrency control through locking and/or time-stamping mechanisms. 

They come in different technology forms:--

1. Peer network node data stores are systems allowing users to replicate and share files across a network leveraging peer-to-peer protocols such as: BitTorrent, NNTP, Freenet, Mnet, etc.

2. Distributed SQL data warehouses are systems designed by the major vendors (Microsoft, Oracle, SAP, IBM, etc.) to allow for the massively parallel processing of analytics-oriented tasks.

3. Hadoop is an open-source software framework for storing data and running applications on clusters of commodity hardware. It provides massive storage for any kind of data, enormous processing power and the ability to handle virtually limitless concurrent tasks.

4. NoSQL databases are non-relational DDBMS, horizontally scalable, designed for real-time web applications. The most well-known solutions are: MarkLogic, MongoDB, Datastax, Apache Cassandra, Redis, Riak, Google BigTable and CouchDB.

5. NewSQL databases are relational DDBMS designed to combine the best of relational databases & NoSQL databases properties (horizontal scalability & distributed processing). Examples: Google Spanner, Clustrix, VoltDB, MemSQL, Pivotal’s GemFire XD, NuoDB and Trafodion.

6. Distributed Ledgers (DL) are DDBMS that leverage cryptography to provide a decentralized multi-version concurrency control mechanism and to maintain consensus about the existence and status of shared facts in trustless environments (i.e. when the participants hosting the shared database are independent actors that don’t trust each other). Consensus is not a unique feature of DL per se: other distributed databases also use consensus algorithms such as Paxos or Raft. Same for immutability: immutable databases exist outside DL (Google HDFS, Zebra, CouchDB, Datomic, etc.).

The two differentiators of DL are: (a) the control of the read/write access is truly decentralized and not logically centralized as for other distributed databases, and corollary (b) the ability to secure transactions in competing environments, without trusted third parties. 

Some people call this category “shared ledgers” but some prefer the term “distributed” because shared can mean “divided/split”.

The Bitcoin system was the first instance of DL, designed for one purpose: peer-to-peer bitcoin (cryptocurrency) payments. To avoid double spending, Bitcoin uses chained blocks of data (hence the “block chain”) and a proof of work consensus among other mechanisms. Bitcoin is censorship resistant, its key features are: byzantine-fault tolerant, pseudo-anonymity, auditability (public), immutability, accountability (time-stamping) and non-repudiation (signature) at transaction level.

Distributed Concurrence Ledger is tailored for financial institutions dealing in capital markets and payments. Concurrence is an alternative to seeking consensus in distributed ledger systems and does not utilize cryptocurrencies, chained blocks, nor proof of work

HashGraph is based on a “gossip protocol” where blocks are “events”: each member repeatedly chooses another member at random, and gives them all the events that they don’t know yet. As the local copy of the hashgraph grows, the member runs an algorithm to determine the consensus order for the events (and the consensus timestamps). The data structure is a directed acyclic graph, where each vertex contains the hash of its two parent vertices

The distributed ledgers that are “double permissionless”, such as bitcoin, are the most decentralized ones and resist to censorship. The less decentralized they are (e.g. permissioned DL in a semi-trusted environment), the closer they get to being “regular” distributed databases using cryptography. In this latter case, cryptography is used as a new mechanism to enforce auditability & accountability between peers

Now what is “blockchain technology” you might ask? Ironically, there is no consensus on the definition:

Minimalists will argue it is only Bitcoin

Some people think it should include any DL with chained blocks

Some experts think it should include any DL with some key features: chained blocks, immutability & consensus protocol

Maximalists say “blockchain technology” equals “distributed ledger technology” equals “cryptographically enabled DDBMS”.

Also it is easier to use the term “blockchain” for marketing & communication purposes, even if it can be misleading…

The final equation is: bitcoin blockchain ⊆ blockchain technology ⊆ distributed ledger technology ⊆ distributed databases.

When adopting blockchain, it's not necessary to replace your existing databases and associated processes. Instead, you can integrate and improve.

The blockchain technology in general has some characteristics that make it difficult to work with high volumes.

The blockchain is interesting because you need a majority of nodes to pass the transaction as valid and there aren't any rollbacks, once it's committed it's committed.

 Thus if someone tries to put in a fake transaction it will be caught unless the person doing it has a pool which has a strong majority share. Then they can validate it in their pool before someone can reject it. That is the strong point of the blockchain. Verification that the data is accurate. It is also typically pretty slow. You're looking at about 10 minutes under normal load for it to get validated. Under heavy load the time goes up quite a bit.

Blockchain derived from Bitcoin is slow and expensive; the amount of data that can be stored in a block is very modest.

Fluree PBC Launches FlureeDB — Scalable, Blockchain Cloud Database.. FlureeDB builds each transaction into a block of time, creating a central blockchain. FlureeDB leverages the use of “Composite Blockchain Consensus,” in which a database can be broken up into different parts, each having its own blockchain and associated consensus network. 

Its query engine allows developers to join all data across multiple blockchains, enabling a single system to consist of a hybrid of consensus characteristics. This innovation in blockchain technology allows for unprecedented scaling potential for decentralized applications and opens up a wide use case across industries as companies no longer have to decide between blockchain decentralized verification and centralized information security. 

FlureeDB can materialize as multiple database types, including Graph, Document and Event Log.

In addition to harnessing the power of blockchain, FlureeDB offers a host of impressive database features, most notably:--

ACID Compliance

Built in Permission Model

Rich Query

Point in Time Query

Immutability Tamper Resistance

Censorship Resistance

Built-in partitioning

Multiple sharding and joins to act as a single Database

Cloud Hosted Option (Zero Management Overhead)

High scalability; Low Latency

In distributed ledger technology, consensus has recently become synonymous with a specific algorithm, within a single function. However, consensus encompasses more than simply agreeing upon the order of transactions, and this differentiation is highlighted in Hyperledger Fabric through its fundamental role in the entire transaction flow, from proposal and endorsement, to ordering, validation and commitment. 

In a nutshell, consensus is defined as the full-circle verification of the correctness of a set of transactions comprising a block. Consensus is ultimately achieved when the order and results of a block’s transactions have met the explicit policy criteria checks. 

These checks and balances take place during the lifecycle of a transaction, and include the usage of endorsement policies to dictate which specific members must endorse a certain transaction class, as well as system chaincodes to ensure that these policies are enforced and upheld. 

Prior to commitment, the peers will employ these system chaincodes to make sure that enough endorsements are present, and that they were derived from the appropriate entities. Moreover, a versioning check will take place during which the current state of the ledger is agreed or consented upon, before any blocks containing transactions are appended to the ledger. 

This final check provides protection against double spend operations and other threats that might compromise data integrity, and allows for functions to be executed against non-static variables. In addition to the multitude of endorsement, validity and versioning checks that take place, there are also ongoing identity verifications happening in all directions of the transaction flow. 

Access control lists are implemented on hierarchal layers of the network (ordering service down to channels), and payloads are repeatedly signed, verified and authenticated as a transaction proposal passes through the different architectural components. 

To conclude, consensus is not merely limited to the agreed upon order of a batch of transactions, but rather, it is an overarching characterization that is achieved as a byproduct of the ongoing verifications that take place during a transaction’s journey from proposal to commitment.

There are officially three versions of Bitcoin, including Bitcoin (BTC), Bitcoin Cash (BCH), and Bitcoin Gold (BTG).

BTC is by far the King of Crypto, BCH is the third most popular after Ethereum and newborn BTG has yet to find its place in big bad the world of crypto.

The most recent Bitcoin fork resulted in the birth of Bitcoin Gold which has been welcomed to the world with mixed views.  The Bitcoin Gold fork occurred on October 25 , 2017, and the official launch of Bitcoin Gold was on November 12 , 2017 . Bitcoin Gold cryptocurrency is currently trading at $209.

The Bitcoin hard fork which occurred back in August, 1 2017 created Bitcoin Cash which has had a more smoother adoption. Bitcoin Cash is trading at $1,209.75. 

The upcoming hard fork for SegWit2x ( 16^th Nov 2017—today ) has now been suspended due to a lack of consensus.

This week we have seen Bitcoin vary from 7800 USD to  5,427 USD.   This is a warning that malafide forces are at work.  This is NOT normal.

Bitcoin Cash has seen increased flows and was trading at $2,700 on Sunday. The rise in Bitcoin Cash prices was triggered by huge volumes being traded on Bithumb, one of the largest exchanges in South Korea.

Any time a fork happens, supply is increased, which is not good economics

So what are the main differences between Bitcoin (BTC), Bitcoin Cash (BCH) and Bitcoin Gold (BTG)? How do these cryptocurrencies compete with each other?

Firstly, the proof of work (PoW) algorithm for Bitcoin and Bitcoin Cash use SHA256. By contrast, Bitcoin Gold uses Equihash.

Equihash is a PoW algorithm s based on a computer science and cryptography concept called the Generalized Birthday Problem.

In probability theory, the birthday problem or birthday paradox concerns the probability that, in a set of {\displaystyle n} n randomly chosen people, some pair of them will have the same birthday. By the pigeonhole principle, the probability reaches 100% when the number of people reaches 367 (since there are only 366 possible birthdays, including February 29). 

However, 99.9% probability is reached with just 70 people, and 50% probability with 23 people. These conclusions are based on the assumption that each day of the year (except February 29) is equally probable for a birthday.

This logic has applications, for example a cryptographic attack called the birthday attack, which uses this probabilistic model to reduce the complexity of finding a collision for a hash function.

In computer science, the Wagner–Fischer algorithm is a dynamic programming algorithm that computes the edit distance between two strings of characters. 

Equihash is a memory-hard proof-of-work scheme. It solves a computational puzzle, best algorithms for which require certain computational and memory resources.

BTC and BCH both use application-specific integrated circuit (ASIC mining hardware) and BTG uses GPU-based mining hardware.

New cryptocurrencies usually occur when there's a blockchain signal for a new hard fork, but there's no consensus -- so a significant enough portion of nodes and miners continue to mine the old chain, thereby introducing a situation with two currencies. 

A hard fork is a protocol change that requires all users to upgrade, because it is not backwards compatible, meaning older iterations would not work as the blockchain advances. So if the protocol change is backwards compatible, it can be implemented as a soft fork.

A split on the other hand is a subset of hard forks that happens when some network participants fail to install the protocol changes and continue running the unchanged software. There can be several reasons for this. But in a case when not everyone agrees with the changes, it leads to a contentious hard fork.

Capt. Ajit VadakayilNovember 16, 2017 at 12:39 PM

BITCOINS ARE BEING USED TO PURCHASE EXTREME SYNTHETIC DRUG FENTANYL FROM CHINA FOR DISTRIBUTION IN INDIA AND USA . BITCOINS ARE USED ON DARK WEB.

I ASK DONALD TRUMP

ARE YOU BLIND AND DEAF ?

WHY DO YOU WORRY ABOUT WEAK DRUGS METH AND COCAINE , WHEN A DRUG FENTANYL HUNDRED TIMES MORE POWERFUL IS IN USA FOR MORE THAN A YEAR.

EVERY OVERDOSE DEATH IN USA IS BY FENTANYL.

They use multiple identities to disguise their activities and their shipments and to obscure the trail of profits going back to China.

They take advantage of the fact that the fentanyl molecule can be altered in numerous ways to create a fentanyl analogue that is not listed as illegal under US and Chinese law.

When regulators are able to identify the new fentanyl and make it illegal, the distributors quickly switch to a new, unlisted fentanyl analogue.

Donald Trump-- why are you not extraditing two men, Xiaobing Yan, 40, and Jian Zhang, 38?   Is North Korea more important for you ? 
THESE DRUGS WERE USED IN SYRIA BY ISIS AS THEY ARE HUNDREDS OF TIMES MORE POTENT THAN MORPHINE. YOU CAN HAVE ONE HAND MISSING BY A BOMB--YET YOU WILL FIGHT.

CAPT AMARINDER SINGH MUST KNOW PIGEONS ARE BEING USED AS COURIERS FROM PAKISTAN TO INDIA.. 

KHALISTANIS ARE NOW INTEGRATED WITH ISI OF PAKISTAN. THE FOUNDERS FO KHALISTAN ARE CRYPTO JEWS.. EVEN TODAY THESE KHALISTANIS BURY THEIR BODIES, THEY DO NOT CREMATE THEM

CAPT AMARINDER SINGH, YOU HAVE TO TAKE THE LEAD.. ASK PM MODI TO BAN BITCOIN...

http://ajitvadakayil.blogspot.in/2017/11/blockchain-bitcoins-ponzi-part-13-capt.html

TELL TELUGU CMs --WE DONT WANT BITCOIN-ULU ( OR IS IT UDU ) IN INDIA....

PUT THIS COMMENT IN WEBSITES OF PMO, PM MODI, LAW MINISTER, CJI, SUPREME COURT BAR COUNCIL, HOME MINISTER, AJIT DOVAL, DEFENCE MINISTER, MEA, CM OF PUNJAB AND DESH BHAKT LEADERS .

capt ajit vadakayil
..

Dark web is a place to buy and sell illegal drugs, human organs , weapons, arrange supari murders and it’s all taking place in the shadowy depths of the Internet. 

Most people don’t have access to the dark web and the encryption techniques make it nearly impossible to locate users. The dark web is the virtual equivalent of a black market. People and businesses that want to operate out of the arms of the law usually head to into the dark web. 

It’s the seedy underbelly of the internet. There are layers of it too. You have to get trust to get down even further.

There is the surface or visible web, which most of the public uses. Examples include searching on Google, using Reddit or watching videos on YouTube.

Then there’s the deep web, which is not accessible through search engines. Websites on the surface Internet are indexed for search engines to find, but the deep web is not.The deep web also can be accessed by most people as it includes email, online banking, government databases and libraries.

One layer under that is the dark web, which is part of the deep web. Unlike the deep web, this dark portion of the Internet is deliberately hidden.

Everything that appears on the surface of the Internet resembles the tip of the iceberg. Below the surface of the water, is 80 per cent of the iceberg, which makes up for the deep and dark web, he added. It’s invisible and untraceable for the browser.

A person needs special software to connect to this part of the Internet . For example, many dark web websites are only accessible through networks such as Tor — a secure web network that hides the user’s IP address in order to maintain anonymity.

61 % of the sites designed for Tor facilitate criminal activity, including drugs, money laundering trading of firearms. Although there are many websites that exist to provide illegal service, the dark web is still legal.. You cannot be charged with anything for simply searching the dark web—but you will be profiled .

The dark web operates in virtual currencies, the most popular being bitcoins. This is because regular currency, like credit cards, can be traced. Bitcoin uses an encrypted method of payment, making it untraceable.

For example, in the recent cyberattacks involving WannaCry ransomware, the program encrypted people’s files and demanded payment in bitcoin, ranging between $300 and $600. The more time you take to payup--the more the costs .

While some people use the dark web in order to browse innocuous websites anonymously, it also a home to shady, often illegal dealings – like the DEADLY fentanyl trade.

Drug dealers are using hidden IP addresses, many are unafraid of being caught. They know they can move their website very quickly and they are ahead of law enforcement.  These major fentanyl dealers have dodged the law enforcement bullet.

A famous example of the FBI cracking down on the dark web is with the illegal underground drug-selling website Silk Road.

Silk Road was an online black market that was housed on the dark web. It was used to sell illegal drugs and other products and protected users with an encryption technique, like Tor, making it impossible to physically locate the computers hosting or accessing websites on the network.

WE KNOW THE INDIAN POLITICIANS ( IN FOREIGN KOSHER PAYROLL ) WHO ARE PUSHING BITCOINS IN INDIA

Below: The Calicut King went to Mecca to see Mohammad after he got a FAX by pigeon from the Namboodiri chief priest of the Shiva Temple ( spot of Kaaba ) that his younger brother's son has uprooted the SHIVA LINGAM and installed it 5 feet above the ground horiontally-- in the SE corner of the temple.   There was a stopover at Socotra island for the pigeon --for relay baton exchange.   

For VERY IMPORTANT FAX-- vicious falcons were used who needed no re-fuelling stop at Socotra . These huge falcons were trained in intercepting spy pigeons  -- and would eat pigeons for breakfast.

http://ajitvadakayil.blogspot.in/2011/01/aloe-vera-socotra-vikramaditya-petra.html

DRONES ARE BEING USED TO SMUGGLE DRUGS INTO PUNJAB FROM PAKISTAN 

WE KNOW THE POLITICIANS WHO ARE BRIBED BY FOREIGN FORCES TO ALLOW DRONE DELIVERY IN INDIA

https://inc42.com/buzz/amazon-drones-india-patent/

IN WAR , SATELLITE AND EMP  ATTACKS WILL TAKE DOWN GPS WITHIN THE FIRST HOUR

AFTER THAT ENEMY FIGHTER PLANES HAVE TO USE LAND BASED MAPS.   

THESE DRONES MAP OUR TERRAIN FOR CRUISE MISSILES AND FIGHTER JETS

http://ajitvadakayil.blogspot.in/2015/11/world-war-3-sans-gps-emp-taken-out.html

PM MODI—WHEN WILL YOUR  EXTREME HUNGER FOR WHITE JEWs APPROVAL SUBSIDE ?

He says that most people who are jumping onboard these days are doing so not to use Bitcoin as an everyday medium of exchange, but rather as a speculative investment asset for making money. 

At some point, this tactic will fail, which will happen right around the time that a critical mass of folks comes to the realization that Bitcoin isn’t actually worth anything at all.

Bitcoin represents little more than a bubble, in his opinion – a game of “hot potato” in which some people are going to get really rich when the music stops playing, while many others who bought into the hype later on are going to lose big time.

One of the biggest problems with trying to utilize Bitcoin as an everyday medium of exchange is that the platform upon which the cryptocurrency was built is simply far too slow to process the number of transactions necessary to support an entire economy.

While Visa and MasterCard are able to process tens of thousands of transactions per second, Bitcoin transactions are limited to just a handful per minute.

And even with its limited quantity, the mathematical limitations of Bitcoin prevent it from really lasting into the future. This presents great risks because nobody knows when Bitcoin will fail—this failure is a  mathematical certainty. Math does not LIE.

Bitcoin is a digital asset-- it has nothing in common with gold

An economic cycle characterized by rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. When no more investors are willing to buy at the elevated price, a massive selloff occurs, causing the bubble to deflate

Simply put, a bubble is a rise in an asset’s price beyond its actual value due to a general belief that its price will continue to rise.

The DotCom bubble was a period of massive growth in the adaptation of the Internet, and many internet-based companies were founded that time. However, from 2000 to 2002, the bubble exploded, leaving behind a trail of capital losses and businesses shutting down. 

The dotcom bubble occurred in the late 1990s and was characterized by a rapid rise in equity markets fueled by investments in Internet-based companies. During the dotcom bubble, the value of equity markets grew exponentially, with the technology-dominated NASDAQ index rising from under 1,000 to more than 5,000 between 1995 and 2000.

The dotcom bubble grew out of a combination of the presence of speculative or fad-based investing, the abundance of venture capital funding for startups and the failure of dotcoms to turn a profit. 

Investors poured money into Internet startups during the 1990s in the hope that those companies would one day become profitable, and many investors and venture capitalists abandoned a cautious approach for fear of not being able to cash in on the growing use of the Internet.

The bubble that formed was fed by cheap money, easy capital, market overconfidence and pure speculation. Venture capitalists anxious to find the next big score freely invested in any company with a “.com” after its name. 

Valuations were based on earnings and profits that would not occur for several years if the business model actually worked, and investors were all too willing to overlook traditional fundamentals.

 Companies that had yet to generate revenue, profits and, in some cases, a finished product, went to market with initial public offerings that saw their stock prices triple and quadruple in one day, creating a feeding frenzy for investors.

The NASDAQ index peaked on March 10, 2000, at 5048, nearly double over the prior year. Right at the market’s peak, several of the leading high-tech companies, such as Dell and Cisco placed huge sell orders on their stocks, sparking panic selling among investors. 

Within a few weeks, the stock market lost 10% of its value. As investment capital began to dry up, so did the life blood of cash-strapped dotcom companies. Dotcom companies that had reached market capitalization in the hundreds of millions of dollars became worthless within a matter of months. 

By the end of 2001, a majority of publicly traded dotcom companies folded, and trillions of dollars of investment capital evaporated  PPOOOFFFFFFF

JEWS SANG ALL THE WAY TO THE BANK

The traditional form of trading involves buying and selling of stocks, commodities like wheat and corn, and paper currencies. These things exist in the physical world. While most of them are now in electronic form, you can still physically deliver them.

Cryptocurrencies are not tangible investments- it’s impossible to put value in an alleged asset if it has no intrinsic or book value.

Implying that Bitcoin is like gold is bullshit, as gold is a tangible asset while cryptocurrency Bitcoin is not.

The rising demand for Bitcoin and other cryptocurrencies is evident in the sudden rise of initial coin offerings these past years. ICOs gave companies, especially startups, the opportunity to expand and gain investments without the need for a formal stock market listing.

While ICO investors only get tokens or electronic coins in exchange for their monetary investments, the rapid increase of a virtual coin value is feeding the enthusiasm of people.   People are buying coins not to use it in their everyday lives. They are keeping it in hopes that its price will surge in order to dump it for a huge return later

Aside from price, other factors that attract people to Bitcoin, and seemingly inflates the Bitcoin bubble, include the anonymity it provides to its users and the lack of centralized control over it.

However, the anonymity that Bitcoin and other cryptocurrencies provide attracts not just the attention of ordinary investors, but of criminals as well. The advent of cryptocurrency gave organized criminal groups an effective way of conducting their illegal transactions without being traced by authorities. 

Bitcoin is the primary currency of the Dark Web where all sorts of contraband are sold and even for merceneries to assassinate presidents of nations

.

Governments are now putting regulatory pressure on ICOs and cryptocurrencies. While majority of countries are not banning Bitcoin, some have put strict regulations and warnings about its usage.

China has banned ICOs.

Heavily leveraged firms that were lending to the bubble sector start to fail. They may include banks, brokerages, and traders. They try to meet their obligations by selling other assets, which causes other prices to fall, accentuating the downturn. This can turn into a vicious cycle

With so many new cryptocurrencies being launched on almost a daily basis, there is no doubt that the cryptocurrency bubble is going to burst. But like all bubbles calling the exact time it will go pop is extremely hard.

Unlike Bitcoin, Bitcoin Cash increased its block size to eight megabytes, meaning that it can process more transactions at a faster rate, making it more attractive to merchants and those investors who supported the upgrade to Bitcoin

Some investors are even selling their houses and using the proceeds to bet on Bitcoin surging to even greater highs.

While the bubble may not have burst, it is only a matter of time before it does. The massive run-up in Bitcoin’s value is based on the expectation that demand will grow exponentially once it is accepted as a mainstream currency.

Bitcoin’s extreme volatility not only makes it an unattractive investment and poor store of value, but it is also an inferior as well as unappealing currency.

PEOPLE THINK THAT THINGS WHICH HAPPEN ON DARK WEB , WITH BITCOIN IS UNKNOWN AND UNTRACEABLE

SORRY—KOSHER BIG BROTHER KNOWS EVERYTHING 

I ONCE WORKED FOR ROTHSCHILDs SHIPPING ARM—THE COMPANY WAS BASED IN LONDON

WHEN I JOINED THE RUSSIAN / GERMAN MIXED BLOOD CHIEF OFFICER TOLD ME—IN THE COMPANY THEY DON’T KEEP  TRACK OF HOW MUCH BOOE YOU DRINK.

HE SAID THAT CAPTAINS USED TO BUY THOUSAND CASES OF BEER AND HAD NO PLACE TO KEEP IY—SO THEY STUFFED SPACES LIKE THE HUGE FIRE FIGHTING FOAM ROOM TILL THE DECK HEAD-

KNOWING THAT THIS IS INCONGRUENT WITH AN INQUISITIVE JEW SYSTEM —  

AS THEY REQUIRE ALL EAST EUROPEANS TO UDNERGO A LFT ( LIVER FUNCTION TEST ) BEFORE JOINING A SHIP, I DECIDED TO WRAP MY HEAD AROUND THIS.

AND SURE ENOUGH—THE COMPANY EXACTLY KNEW HOW MUCH BOOZE WAS BOUGHT BY THE SHIPS CAPTAIN  AND WHO CONSUMED WHAT.. 

SO, SO SO--  I MADE THREE EXCEL BASED SOFTWARE—ONE FULLY AUTOMATED, ONE SEMI AUTOMATED AND ONE FULLY MANUAL – AND SENT TO THE COMPANY TELLING—

“ YOU CAN FOOL THOUSANDS OF WHITE SKINNED CAPTAINS, YOU CANT FOOL THIS INDIAN CAPTAIN AJIT VADAKAYIL”

LATER ONE OF MY FANS IN THE LONDON OFFICE TOLD ME—THERE WAS STUNNED SILENCE IN THAT DAYS TOP BRASS MEETING

Cities and KOSHER businesss that accept Bitcoin: 

City	Number of shops
Los Angeles	127
New York	120
Buenos Aires	111
San Francisco	108
London	86
Madrid	82
Kansas City	68
Toronto	64
Melbourne	63
Athens	52
Sao Paulo	49
Tokyo	48
Amsterdam	46
Tel Aviv	42

The blockchain does not create or eliminate trust. It merely converts trust from one form to another. While we previously had to trust financial institutions to verify transactions, with the blockchain we have to trust the technology itself.  Blockchain fucks around with the meaning of TRUST

How can  a blockchain-powered currency (such as Bitcoin) can go mainstream without the backing of a trusted authority. In fact there are hardly any examples of money (including gold) that have ever worked without the backing of a central authority or a sovereign.

When you make a traditional money transfer the bank will first verify that you have sufficient cash, and then debit your account and credit the recipient. Think of the blockchain as a decentralised version of this process. Rather than all of this information being held and verified by the bank, it is done on an “open public ledger”.

When someone transfers a Bitcoin, it is verified by “miners” (really powerful computers), then encrypted, and a “block” is added to the ledger.

Because all of the verification is done by the system itself, the idea is that users do not need a trusted central authority. Instead, trust is transferred from one central authority (such as a bank) to many decentralised, anonymous participants (the miners).

But here lies the problem – users must trust the technology and the governance of the system.

Trust can be destroyed and lost if the central authority fails, the person you trusted fails, or the process you trusted fails.  Are we supposed to develop amnesia over all the scams with Bitcoin and Blockchain?

When it comes to the blockchain specifically, we can see that there are at least two forms of this trust at play. Because of its complexity many people may find it difficult to trust the process.

For instance, when the Ethereum-powered decentralised autonomous organisation (DAO) was hacked, users asked Buterin to respond. This shows that people still need a central authority or will appeal to one if the system fails.

Analysis of the evolution of money shows that almost all currencies throughout history have had the backing of an authority. This is easy to understand. Think of a raw gold nugget. 

To be sure about its value you would need to trust a jeweller - a valuation authority. Because this process of identifying the quality of gold takes time, raw gold is not the ideal medium of exchange.

TODAY YOU CANT TRUST A GOLD BAR BECAUSE OF METALLURGY USING TUNGSTEN

FAKE GOLD BEGAN WITH JEW ROTHSCHILD OWNING TUNGSTEN MINES—WHERE INDIAN POWs FROM DUNKIRK SLAVED

http://ajitvadakayil.blogspot.in/2017/07/dunkirk-christopher-nolan-2017-movie.html

If history is any guide, privately created money such as Bitcoin or any other blockchain-based currency is unlikely to become globally accepted without a trusted central authority. 

This means that an “open” blockchain will not succeed. Although a “closed” blockchain, with the backing of a central authority, might work, it would be very different to the core feature of Bitcoin and the blockchain - decentralization.

Bitcoins pass from person to person directly in the sale and purchase of electronic, without intermediaries and transfer costs, all that happens is that the code moves from your portfolio to the other person’s portfolio directly becomes his property.

Encrypted e-code is the trademark of the Bitcoin Code, and no one can seize it because it is not controlled by anyone and can not be traced; it is characterized by confidentiality, privacy and universality without interference from governments and banks.

Unlike conventional currencies that are backed by assets such as gold or government, the Bitcoin can be explored by anyone through a computer, internet connection and software exploration, the user can get the pieces of Bitcoin against the use of computational power possessed by the computer to generate new pieces of Crypto Advantage APP, Mathematical equations with a special complex algorithm.

The more powerful a processor, the more likely it is to solve equations and extract the Bitcoin.

The software is completely free and open source, and anyone can review and use it. The program can solve complex mathematical calculations on your computer connected to the Internet, but it will cost you a lot of time, electricity and computing power for your device.

There is a “hard” effort to do to get your home; you are trying all the possibilities of solving the problem of one calculation, until you reach the correct solution, and this needs a large energy, and there are many competitors have large computers with great processing capacity, and there is a balance within this system, there is a certain limit It can be produced from Crypto Advantage Software (it is 21 million BTC).

Bitcoin Code is a digital currency that can be compared to other currencies such as the dollar or the euro. However, it is different from these currencies in many basic aspects. It is a fully electronic currency, which has no physical or physical presence, Internet and websites only. 

The Bitcoin Code is a new system, which promises to make you a lot of money. The reason why “The Bitcoin Code” is a total scam, is because they claim a 99.4% level of accuracy.

THE CALICUT KING USED DOUBLE ENRTY BOOK KEEPING FOR HIS SPICE TRADE 

SALALAH,  MECCA , PETRA, MADEIN SALEH , JERUSALEM WERE SPICE OUTPOSTS WHERE ACCOUNTANT DID THEIR JOB

Three friends go to a bar for drinking beer ( costing 10 dollars a bottle )

As usual they take out one 10 dollar bill each from their wallets and gives the waiter,  3 nos 10 dollar  notes or 30 dollars.

The bar owner is in a expansive mood and he tells the waiter -- "happy hour time! -- give them 5 dollars back!!-- i will charge only 25 dollars for 3 beers today ".

The clever waiter knows 5 dollars cannot be split between 3 regular dutchmen. so he pockets 2 dollars and returns 3 one dollar notes .

The three of them put back one dollar each into their respective wallets.  Initially each wallet had one 10 dollar bill--now it has only one single dollar bill.

Now comes the perception part:-- 

All three of them spent 9 dollars each-- 27 dollars total.

The waiter got 2 dollars.

WHERE IS ONE DOLLAR GONE-- POOF???

Be honest to yourself and dont read further, till you figure this out.

You tell an accountant without perception to give you a debit/ credit accounts statement--and see the way he sweats.

See literacy has nothing to do with perception.  A illiterate chaiwala boy in mumbai can make an ass out of you, when it comes to accounts.

Daft accountants make a mistake when it comes to "receipts" and " balance ".

  

Here in this case it is - 30+0= 27+3.

Opening cash + receipts  =  spent cash+ balance cash.   

( It can never ever be 30-3+2=29)

Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. 

The double entry has two equal and corresponding sides known as debit and credit. 

The left-hand side is debit and right-hand side is credit. For instance, recording a sale of $100 might require two entries: a debit of $100 to an account named "Cash" and a credit of $100 to an account named "Revenue.

The accounting equation, Assets = Equity + Liabilities serves as an error detection tool; if at any point the sum of debits for all accounts does not equal the corresponding sum of credits for all accounts, an error has occurred

Equity is nothing but ownership; ownership in Business. In the trading world, equity refers to stock. Generally speaking, equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

However, that the equation is satisfied is no guarantee that there are no errors; the ledger may still "balance" even if the wrong ledger accounts may have been debited or credited.

THE WHITE JEW HISTORIANS HAVE WRITTEN , THAT THE OLDEST RECORD OF A COMPLETE DOUBLE ENTRY SYSTEM IS THE MESSARI ACCOUNTS OF GENOA IN 1340 AD.. 

BALLS TO YOU—YOU KOSHER CUNTS !

The JEW Medici Bankers made their money by being middle men in the spice trade of the Calicut King ( my hometown ) . 

JEW Giovanni di Bicci de' Medicilearnt his accounting from the Calicut King’s acoountants.  

In Mecca Oasis  it was Mohammed the Prophet’s father.

The Medici process of accounting required banks (owned by the Medici family) to maintain a ledger of debits and credits that was held at the bank. The modern financial system is simply a network of these ledgers held at each bank.

HEY MEDICI BASTARDS — DON’T TEACH YOUR FATHER HOW TO FUCK !

CAPT AJIT VADAKAYIL WILLNOT ALLOW YOU

Bitcoin takes the global ledger of transactions out of the control of the banking system and distributes it onto every computer that is connected to the Bitcoin network. Financial behemoths no longer control the system. With Bitcoin the users of the financial system are in control.

Bitcoin is this app, and the disruption of the MILLINUEMS YEARS OLD  double entry accounting system—they now call  Bitcoin one of the most important innovations in the history of finance. 

BALLS !

Bitcoin accomplishes this disruption not just with blockchain technology but also with the global decentralized currency also called Bitcoin.  The currency "Bitcoin" is the incentive for anyone in the world to run the software that changes the way the financial system works.  

Banks love blockchain because they get to continue to maintain the ledger of transactions by running the software on their own computers.  But Bitcoin creates competition for the banks in the form of anyone with a computer and an internet connection.

Without the currency, there would be no incentive for people to spend money on the computers needed to run the Bitcoin software. Blockchain without Bitcoin replicates the same financial system already in existence. There may be some efficiency gains through sharing private distributed ledgers, but blockchain WITHOUT  Bitcoin is NOT one of the most important innovations in the history of finance.

blockchain is important, but the banks are using it in a way that keeps their power in the financial system intact

Bitcoin creates the incentive for people to run a new financial system that's outside of the traditional one. The scarcity of Bitcoin drives people to buy the computer equipment and process the transactions (i.e. mine) in hopes of winning some Bitcoin. This self-sustaining incentive system has the potential to loosen the banks grip on the traditional financial system

The currency plus blockchain creates a self–sustaining independent financial system that has never existed in modern finance. 

The currency plus blockchain creates a competitor to the modern financial system that has the potential to redistribute wealth using the power of truly free markets—as long as it does not fall PHUTTTT on its face

https://factordaily.com/filing-tax-bitcoin-cryptocurrency-in-india/

A contract for differences (CFD) is an arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than by the delivery of physical goods or securities. 

This is generally an easier method of settlement, because both losses and gains are paid in cash. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it.

The CFD is a tradable contract between a client and a broker, who are exchanging the difference in the current value of a share, currency, commodity or index and its value at the contract’s end.

In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller). 

In effect CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.

Bitcoin CFDs allow you to trade movements in the price of Bitcoin without owning or purchasing Bitcoin. This is useful because you do not have to worry about security issues regarding Bitcoin, such as encrypting your wallet, downloading a back-up, etc. 

When trading CFDs, there is no need to purchase the underlying asset. This makes investing in Bitcoin safer for those worried about the security of Bitcoin or those who do not want to set-up a wallet and purchase Bitcoin. 

Traders can speculate and make money on large price movements without needing to know how to acquire or store Bitcoin securely. Also, another benefit is that you can buy or sell Bitcoin at exchange prices. 

Trading in Bitcoin directly means you would have to sign-up to exchanges or purchase Bitcoin at a mark-up from the market price. Trading CFDs means you can buy or sell at the market price and gain more from large swings in either direction.

Paying the spread on entries and exits prevents profiting from small moves, while decreasing winning trades and increasing losses by a small amount over the underlying asset. 

Since the CFD industry is not highly regulated, the broker’s credibility is based on reputation rather than life span or financial position. Because each day a trader holds a long position costs money, a CFD is not suitable for buy-and-hold trading or long-term positions.

Everyday consumers have been advised not to invest in cryptocurrency contracts for difference (CFDs) by the UK's City watchdog.

The Financial Conduct Authority (FCA) said cryptocurrency CFDs are "an extremely high-risk, speculative investment" and that only experienced investors "with sophisticated knowledge of financial markets" who "fully understand the risks associated with CFDs and cryptocurrencies" should consider investing in them.

It said it was issuing its warning after it had noticed an increase in cryptocurrency CFDs being "marketed to consumers".

Cryptocurrency CFDs allow investors to speculate on a change in price of a cryptocurrency such as Bitcoin or Ethereum and use leverage.

The regulator described CFDs as "complex financial instruments which allow you to speculate on the price of an asset". It said it had noticed an increase in CFDs linked to cryptocurrency valuations being "marketed to consumers". 

It highlighted concerns about such products, including in relation to their price volatility.

It was noted by the UK regulator that most ICOs are not regulated by the FCA and many are based overseas - with no investor protection. And, as with cryptocurrencies in general, the value of a token may be extremely volatile.

Money should satisfy three key criteria:-- 

It should function as a medium of exchange,

It should be a unit of account, and

A store of value.

Most hold on to Bitcoins s simply because they expect the price to rise, at least for a while. This is reminiscent of the Greater Fool Theory which states that people buy something simply because they expect that there will be a greater fool that will buy their asset later at a greater price.

Due to VERY high volatility, it is impractical to denominate goods or services in Bitcoin.

No lenders use Bitcoins as the unit of account for such things as consumer credit, loans or mortgages, nor are credit or debit cards denominated in Bitcoin, per se (you can spend your Bitcoin, but the real transactions happen in fiat since the digital currency is sold on the back-end).

Bitcoin as cryptocurrency will never seriously challenge USD, GBP , EUR or any other major currency. Yes, they can try their luck in Nigeria or Venezuela

Bitcoin had emerged as a digital peer-to-peer cash, and thus is challenging current monetary systems. Yet, over the years it has outgrown its initial purpose, and now it is more similar to a store of value, or an alternative investment.

Below: Grumpy cat is the MASCOT of this blogsite !

Capt. Ajit VadakayilNovember 17, 2017 at 10:38 AM

https://timesofindia.indiatimes.com/business/india-business/moodys-upgrades-indias-rating-citing-government-reforms/articleshow/61681086.cms

SO MOODYs UPGRADED INDIA FROM LOWEST NOTCH OF Baa3 TO Baa2 ( MODERATE CREDIT RISK ) --AND WE ARE CELEBRATING ?

APUN BHI NACHOON ?

THEY SAY--INDIA IS NOT SHIT ANYMORE , BUT YOU ARE PISS .

I ASKED MODI AND ARUN JAITLEY-- ARE WE STILL SLAVES OF WHITE JEWS WHO ARE AGENTS OF JEW ROTHSCHILD ?

WHY CANT YOU SEND A MESSAGE THAT INDIA HAS MATURED ENOUGH TO RATE OURSELVES ?

FIRST OF ALL OUR INDIAN ECONOMICS/ BUSINESS SCHOOLS SHOULD TEACH REAL ECONOMICS-- NOT ROTHSCHILDs ECONOMICS

http://ajitvadakayil.blogspot.in/2016/06/gpi-dog-shall-wag-gdp-tail-not-vice.html

ALL G7 NATIONS ARE BEGGARS

USA IS 20.4 TRILLION USD IN DEBT.

CHINA IS NOT IN THIS GROUP--BUT CHINESE ECONOMY IS A BUBBLE. THEIR DEBT IS MORE THAN 310% OF THEIR GDP.

Read both parts of the post below--

http://ajitvadakayil.blogspot.in/2017/07/can-china-afford-war-with-india-come-on.html

INDIA IS THE ONLY HEALTHY ROARING ECONOMY.

PUT THIS COMMENT IN THE WEBSITES OF PMO, PM MODI, FINANCE MINISTER , COMMERCE MINISTER , EDUCATION MINISTER , DEFENCE MINISTER, HOME MINISTER ,CJI

ASK FOR AN ACK

capt ajit vadakayil
..

No one controls the supply of bitcoin and the theoretical maximum number of bitcoins is 21,000,000 bitcoins. Facilitating the transfer of bitcoins is the decentralised network that bitcoins transact on.

People with mining rigs power the network in the same way people distribute content via a torrent file. Their systems provide the computational power needed to update the records anytime someone transacts using bitcoin.

For this, the quickest one that solves the computational problems needed to confirm the transaction get bitcoin. This is essentially the process of mining bitcoins.

Bitcoin is set up to reward users for verifying transactions. Miners who package transactions into “blocks” receive two kinds of rewards: The additional Bitcoin they produce by using their hardware to solve mathematical problems (an income stream that will eventually cease since 21 million bitcoins are the maximum that can be mined) and the transaction fees paid by users to get their payments into blocks.

When making payment using bitcoin, the bitcoin network facilitates the transaction and every computer on the network gets updated with the same record of which account the bitcoin now belongs to.

The problem with bitcoin is that being a digital currency, there is no shortage of other competing currencies. Existing competitors include all the other currencies in the world and there aren’t many technical barriers to entry for other digital currencies to enter the space.   There are more than a 1000 cryptocurrencies in circulation.

And this is where bitcoin truly fails. In fact, the only reason most people have suddenly sat up and taken note of bitcoin is due to the fact that bitcoin has increased some 700% relative to the USD within this year alone. And within weeks of hitting 7000 USD, it fell to 6000 USD and then within a few weeks, shot up to 8000 USD. This is not normal

Dark angelNovember 17, 2017 at 5:36 PM

Respected ajit sir

Skyrocketing to New Heights: Bitcoin Surges to Almost $8000.

https://sputniknews.com/business/201711171059188712-bitcoin-value-rises-to-new-heights/

Regards
Gunjan arya

1. 
   Capt. Ajit VadakayilNovember 17, 2017 at 8:28 PM

   No REAL currency can appreciate more than 700% in a year. China and Russia are not folls .
   
   Only Indian think tanks are manned by people with SHIT FOR BRAINS
   
   IMAGINE LOSER LAWYERS TURNED JUDGES ARE INTERFERING IN FINANCIAL MATTERS – ABOUT WHICH THEY KNOW SHIT
   
   Capt ajit vadakayil
   ..

Capt. Ajit VadakayilNovember 18, 2017 at 8:25 AM

WE ASK PM MODI TO MAKE AN ANNOUNCEMENT

THAT INDIA WILL NOT SUPPORT BITCOIN

AND THAT INDIANS INVOLVED IN FRAUD WILL BE JAILED FOR LONG TIME

CHINA AND RUSSIA HAS DONE IT

READ ALL 13 PARTS

http://ajitvadakayil.blogspot.in/2017/11/blockchain-bitcoins-ponzi-part-13-capt.html

WARNING-- BILL GATES PUSHES BITCOIN --WARNING

PUT THIS COMMENT IN THE WEBSITES OF PMO, PM MODI, FINANCE MINISTER, LAW MINISTER, CJI, TELUGU LAND CMs , HOME MINISTER, I&B MINISTER, SAWMY , GURUMURTHY , YOGI ADITYANATH AND DESH BHAKT LEADERS

capt ajit vadakayil
..

The testnet is an alternative Bitcoin block chain, to be used for testing. Testnet coins are separate and distinct from actual bitcoins, and are never supposed to have any value. 

This allows application developers or bitcoin testers to experiment, without having to use real bitcoins or worrying about breaking the main bitcoin chain. Testnet uses a different genesis block to the main network. Testnet receives less transactions than the main block chain and is typically much smaller in size.

The Lightning Network is a proposed solution to the bitcoin scalability problem. 

The software uses an off-chain protocol and is currently in alpha phase of development. It features a P2P system for making micropayments of digital currencies such as Bitcoin, Litecoin, Vertcoin or Groestlcoin through a scale-free network of bidirectional payment channels without delegating custody of funds or trust to third parties.

It is expected that normal use of the Lightning Network consists of opening a payment channel by committing a funding transaction to the relevant blockchain, followed by making any number of Lightning transactions that update the tentative distribution of the channel's funds without broadcasting to the blockchain, followed by closing the payment channel by broadcasting the final version of the transaction to distribute the channel's funds.

Lightning network can now be used to send transactions across different blockchains. The Lightning Labs development team successfully swapped testnet bitcoin for testnet litecoin through a lightning channel this week: ownership of the coins changed hands, while no transaction was recorded on either blockchain. The successful test paves the way for trustless cryptocurrency exchanges, near-seamless multi-coin payment processors and more.

The Lightning Network brought to Bitcoin with Segwit enables users to instantly exchange Bitcoin for Litecoin and vice versa. The first ever transaction between the two coins has now happened.

Litecoin  is a peer-to-peer cryptocurrency and open source software project.. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. 

While inspired by, and in most regards technically nearly identical to Bitcoin (BTC), Litecoin has some technical differences compared to Bitcoin and other major cryptocurrencies. Litecoin also has almost zero payment cost and facilitates payments approximately four times faster than Bitcoin

Litecoin is different in some ways from Bitcoin.

The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin's 10 minutes, which its developers claim allows for faster transaction confirmation.

Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm which is not memory-hard.

Segwit ( Segregated Witness) brought with it many new features for Bitcoin when it was implemented in August this year, not least of them atomic swaps and the Lightning Network. Segregated Witness, or SegWit, is the name used for an implemented soft fork change in the transaction format of the cryptocurrency Bitcoin which has also been implemented on currencies such as Groestlcoin, Litecoin, DigiByte and Vertcoin. 

The formal title "Segregated Witness (Consensus layer)" has Bitcoin Improvement Proposals number BIP141. It is intended to solve a blockchain size limitation problem that reduces Bitcoin transaction speed. It does this by splitting the transaction into two segments, removing the unlocking signature ("witness" data) from the original portion and appending it as a separate structure at the end. 

The original section would continue to hold the sender and receiver data, and the new "witness" structure would contain scripts and signatures. The original data segment would be counted normally, but the "witness" segment would, in effect, be counted as a quarter of its real size.

Again, bitcoin is a cryptocurrency, a form of money using cryptography to keep transactions secure. Each record of a unit of Bitcoins is called a "block", and all blocks are tied together sequentially by using a cryptographic hash on the previous block and storing in the next. This forms a chain of blocks, or a blockchain.

Each block of bitcoins contains information about who sends and receives a given unit of bitcoin (a transaction), as well as the signature that approves each transaction. Originally, there was no limit to the size of these blocks. 

But this meant that malicious people could make up fake "block" data that was very long as a form of Denial of Service (DoS) attack. Their fake blocks would be detected, but doing so would take a very long time, slowing down the whole system.

The solution implemented was to put a limit on block size. That limit was 1 MB. This way, attacks using huge blocks would be instantly detected and rejected, without significantly slowing down the network.

As Bitcoin has become more popular, that limit is slowing down transactions. A block is added to the chain every ten minutes. With a limit on its size, only so many transactions can be added, as many as fit in a block. Globally, bitcoin cannot currently support transactions with anything like the speed of other currencies or credit cards. It sometimes takes hours to confirm a transaction.

Some sites work around this problem, by conducting "off-chain payments", conducting transactions without waiting for confirmation by the blockchain. However, many people do not trust this solution, which is open to exploitation by double spending of bitcoin from unconfirmed transactions.

Others have proposed changes to Bitcoin that would reform the way it's done, but that would not be backward-compatible. For example, FlexTrans (Flexible Transactions) would make transactions smaller by changing how they are described to a "tag" system, allowing more in blocks of the current size. But it is not compatible with systems that do not upgrade.

An important problem is "transaction malleability".   While a transaction is signed, the signature doesn't include all transaction data, and at one time checking that the signature was correct was not even required. This means that several different ways of losing or stealing bitcoins are possible. While a number of different fixes have made this unlikely to happen, the flaw still exists.

SegWit proposes significant backward compatibility. It hides its increased block size by changing the definition of a block to be measured as one million "units" instead of bytes. The "witness" signature data would be separated from the Merkle tree record of who is sending or receiving the bitcoin. 

The "witness" data is moved to the end, and each byte of it would only count as one quarter of a "unit". The overall effect would be changing the average block size to about 1.8 MB instead of 1. This means the existing bitcoin protocol doesn't change, allowing it to work without as much upgrading of software

It also addresses signature malleability, by moving signatures out of the transaction data, making them impossible to change.  The transaction ID is no longer malleable. 

This makes bitcoin safer to use with Lightning Network, a way to speed up small payments by bundling them and only writing to the blockchain at the beginning and end of their execution, which would be (slightly) risky while the malleability problem still exists.

Segregated Witness was activated on August 24 2017.  Nonetheless, most Bitcoin network transactions have not been using the upgrade. But in the first week of October the proportion of network transactions using SegWit rose from 7% to 10%, indicating a greater increase in use rate.

Segregated Witness (BIP141) should not be confused with SegWit2x 

(SegWit2Mb). In SegWit2Mb it is agreed to first activate Segregated Witness and then a 2 MB hard fork within six months as of May 23, 2017. A Bitcoin Core blog post warns against using btc1, the reference implementation of Segwit2x.

On November 8, 2017 the developers of SegWit2x announced that the hard fork planned for around November 16, 2017 has been canceled for the time being due to a lack of sufficient consensus.

If you think of Bitcoin as a single global ledger, a Bitcoin transaction is a lot like a bank check. As the owner of some amount of money, you can sign over some of your money to someone else.

And, much like a check, a Bitcoin transaction has a signature. Instead of a physical signature, you create a digital signature using your private key.

Interestingly, while a signature on a physical check takes up maybe 10% of the check, a digital signature in bitcoin takes up more like 50% of the digital check.

To continue the analogy, a Bitcoin block is like a box of signed checks or transactions. Much like physical boxes in the real world, Bitcoin blocks have a limit on how many transactions they can contain.

Right now, those boxes come in a standard 1MB size — and they are full. You can put just a few checks into the box so that it’s almost empty, but you can never put more checks into the box than the box can hold.

To keep the global ledger consistent and cheat-proof, everyone that wants to can audit the ledger by auditing these blocks (boxes of checks). A copy of the box of checks is sent to anyone that wants to audit the ledger.

If, in an audit of these boxes of checks, someone found that one of the checks overspent (that is, the person writing the check does not have enough money in their account to cover the transaction), they would reject the entire box.

This is important since, otherwise, people would start writing bad checks. We also need to do this fairly often so people can actually have a good idea of how much money they have, so we send the boxes of checks to everybody (meaning every node on the system) to audit pretty frequently — every 10 minutes on average.

Because there’s a limit to the block (box) size, there is a limit to how many checks that can clear on the network in a timely manner. That is, the throughput of Bitcoin transactions is limited. The scaling debate that’s been going on for the past few years in Bitcoin is really about how to get more transactions through the system.

The two solutions that groups came up with can be thought of in two ways. The first would be to make the box sizes bigger. The second would be to create a new type of check and only give bigger boxes to those who request them.

One group wanted to do away with the current boxes and make the boxes larger. This is great if everybody is forced to use a bigger box, but there are some problems with this idea.

If some people kept using the smaller box, this would cause discrepancies in the ledger and create two different ledgers. Additionally, even if everyone used the bigger box, a lot of people checking the ledger would not receive the bigger boxes in time to examine that all the checks were valid. 10 minutes is too little time to receive and audit the box for some people.

The main advantage of making the box bigger is that it’s a relatively simple change. There aren’t new style checks to worry about and everything can operate as before.

Bitcoin Cash is essentially using this solution by lifting the 1MB block size limit and implementing an 8MB block size instead.

The other solution is to introduce a new style of check. We could still make larger boxes available, but only to those that want them. This “change the check” solution essentially cuts away the signature part of the check for everyone that isn’t accepting the bigger boxes.

Remember how the signature is about 50% of the transaction? SegWit cuts the checks in half and sends everything but the signature to everyone that’s accepting the old, smaller box. We send the larger boxes to everyone that’s accepting the new, larger box.

Given that the checks are half the size for the smaller boxes, we can fit about double the number of checks in the smaller boxes, increasing throughput. Anyone that’s receiving the larger box could audit everything in the box as normal and anyone receiving the smaller box could still audit without worrying about getting the signatures in time.

Because we’re accommodating the people that aren’t using the newer, bigger box, SegWit is backwards compatible. That means everyone will have the same copy of the ledger no matter what size box they’re using.

The main drawback to SegWit is that everyone will have to get used to the new style of checks before we see some gains in throughput. It’s also a bit more complicated than just making everyone use a larger box. Additionally, everyone receiving the new style checks but using a smaller box won’t get to audit the signatures since they won’t receive them.

Bitcoin is a distributed ledger, and it helps to think of transactions and blocks as checks and boxes. Bitcoin Cash is standardizing on a bigger box for everyone while SegWit is using larger boxes for some while accommodating those that don’t want to use larger boxes with new types of checks.

By creating a new transaction serialization and a structure called “witness”, scripts and signatures are moved to a new part of transactions.

This has a variety of benefits: non-intentional signature malleability becomes impossible, hard-coded constants can be reevaluated or removed, and the size of witness data can be ignored when calculating the block size, effectively increasing the block size to some extent. It further allows the introduction of new script systems without any limitation from the existing script semantics.

With Segregated Witness, the transaction serialization has changed in a backwards compatible manner, essentially moving signatures and scripts from the beginning of transactions to the end of transactions.

A Merkle root hash is then calculated over all transactions with the new transaction serialization, which also covers witness data, and committed by coinbase transactions.

Merkle trees serve to encode blockchain data more efficiently and securely.  They are also referred to as "binary hash trees." 

In bitcoin's blockchain​, a block of transactions is run through an algorithm to generate a hash, which is a string of numbers and letters that can be used to verify that a given set of data is the same as the original set of transactions, but not to obtain the original set of transactions. 

Bitcoin's software does not run the entire block of transaction data – representing 10 minutes' worth of transactions on average – through the hash function at one time, however. 

Rather each transaction is hashed, then each pair of transactions is concatenated and hashed together, and so on until there is one hash for the entire block. (If there is an odd number of transactions, one transaction is doubled and its hash is concatenated with itself.) 

Cryptocurrencies rely on the use of blockchains which contain the transaction histories, and are “hashed” or encoded into a series of numbers and letters. Hashing involves taking a string of data of any length and running it through an algorithm to produce an output with a fixed length. 

The output will always be the same length, regardless of how big or small the input is. The use of hashing means that anyone dealing with a blockchain has to remember the hash rather than the input itself. 

Each block will contain the hash of the previous block header. A hash is a function that converts an input of letters and numbers into an encrypted output of a fixed length. A hash is created using an algorithm, and is essential to blockchain management in cryptocurrency. 

The backbone of a cryptocurrency is its blockchain, which is a global ledger formed by linking together individual blocks of transaction data. The blockchain only contains validated transactions, which prevents fraudulent transactions and double spending of the currency. 

The validation process relies on data being encrypted using algorithmic hashing. The resulting encrypted value is a series of numbers and letters that does not resemble the original data, and is called a hash. 

Cryptocurrency mining involves working with this hash.

Because the old serialization is used to determine the size relevant for the old consensus rules, only the first part of a transaction without witness is “counted” in terms of the base block size, effectively increasing the block size, when also considering the witness data. 

A new limit of 4 MB is introduced for the new serialization, which covers the witness data. Signature data and scripts are still part of the transaction, and a block with Segregated Witness transactions is still one piece, with transactions serialized in the new format. 

A block with more than 1 MB of transactions is truly larger than 1 MB, and there are not two blocks or separate pieces. The chain of digital signatures is still intact, and signatures are not lost or discarded, but remain to be part of all blocks. 

A miner won’t accept a block with Segregated Witness transactions without witness data and signatures.

The actual capacity of a block depends on it’s transaction composition. As of today, a total size of 1.7–2.2 MB could be expected in practice. It is also worth to note that hitting the size limit means there are 4 MB of actual transactions.

Any miner that stops enforcing Segregated Witness rules and starts to create invalid blocks, namely blocks falsely spending coins that require a witness program to be executed, would be partitioned off the network by other miners and users.

But let’s assume the worst case for a moment: 51 % or more of all miners go rogue and start to create invalid blocks by not enforcing Segregated Witness rules. 

Honest miners would still consider these blocks as invalid and build their own valid chain, but given that they are a minority, at some point they end up as shorter chain.

There would then be two separate chains, one from the rogue miners, and one from the honest miners. They have hard forked and the chains are no longer compatible.

Other participants in the network, in particular full nodes, do not follow the longest chain per se, but the longest chain they consider as valid

Full node users would then also consider the chain from the rogue miners as invalid, and follow the chain of the honest miners, which enforce Segregated Witness rules. Segregated Witness scripts are not vulnerable.

It may be worth to note that nodes running old software, namely software that isn’t Segregated Witness aware, would indeed follow the rogue chain in this scenario. This is expected and inherently the case, given that Segregated Witness is a soft fork.

The last digital currency exchange in China was shut down as of November 1, 2017 . With that final closure, the exchange of digital currencies in China officially became illegal.

Russia has blocked access to websites belonging to exchanges and trading platforms offering cryptocurrencies like bitcoin.

Two months ago , Russian police arrested three businessmen for illegally trading in 500 million rubles worth of bitcoin, or around $9 million worth of the crypto-currency. The arrest marks the start of the first-ever criminal case against bitcoin sales in Russia. 

The exchange came to light after investigators found an unusual amount of activity in bank accounts stemming from 300 bank cards and sim cards used to store the digital currency. The money was being shifted into different accounts owned by family members.. In the past, Russian courts have blocked bitcoin-exchanges and websites where people could transfer it into rubles, but they never brought anyone up on criminal charges for doing so.

These so-called virtual coins are not currencies. They don’t have legal tender status to be used as means of payment and unit of account in China based on current laws we have. And they should not be circulated in India.  

We ask Modi—what is you stake in this ?  Why are you allowing money laundering via Bitcoin

https://www.buybitcoinworldwide.com/india/

Cryptocurrency is gaining popularity, primarily as a financial asset.   While global trade volume is about $5 billion a day, India’s annual bitcoin trade volume stands at $20 billion.   

India’s first bitcoin exchange Zebpay says there are more than 1.5 million bitcoin users in India and 200,000 users are being added each month.  Most of these users buy bitcoins as a financial asset

Bitcoin in India has another appeal – remittances and compensating freelancers.   India is the top receiver of remittances worldwide.  Many bitcoin startups in India believe remittances is a huge potential market for them,  bitcoin transfers are cheaper than wire transfers

Unocoin, India's first entrant into the bitcoin industry, entered a partnership with U.S.-based Bitwage in 2016 to enable global payments for services. Bitwage can utilize Unocoin’s APIs, enabling employers to directly sell bitcoins as payment for a service, and beneficiaries will receive Indian rupees directly into their accounts. Bitcoin makes payments fast and inexpensive. 

Payment portals, like banks, levy transaction charges on beneficiaries. With bitcoin, there are no overhead costs or extra charges, making it a more appealing form of payment as workers get paid closer to real wages.

In a hawala transaction, no physical movement of cash is there. The bitcoin’s popularity in India has grown after demonetization. At the time of its announcement in November, the price of one bitcoin in India was 757 USD ( today it is 8000 USD )

Bitcoin and Hawala are similar in some basic ways. They are both remittance systems that can potentially support anonymous transactions as well as cross-border activity on a global scale. The similarities are limited though, there are significant differences. 

These two systems show how Bitcoin represents much more than being a mere digital version of Hawala.  In India terrorists, drug dealers and separatists utilize Bitcoin—our RAGADKE KHAINI MOONH MEIN DHAAL security agencies don’t have a fuckin’ clue.

Let us dance !

There has been a clear surge in bitcoin transactions after demonetization in India.

The Swiss subsidiary of US bank JPMorgan Chase has been sanctioned by Switzerland’s financial regulator FINMA for money laundering and “seriously violating supervision laws,”

The sanctions are reportedly related to breaches of due diligence in connection with money laundering standards. That literally means the Wall Street banking giant assisted in money laundering

JP Morgan is guilty of using reverse psychology.

JPMorgan was busted for money laundering after accusing bitcoin of doing the same

“A fiat currency is when a government says this is your legal tender, you have to give it and accept it, and of course the central bank can misuse it and inflate it. But what is the use case for bitcoin? You’re in Venezuela, North Korea, you’re a criminal. Great product!” he said during a news conference in Washington.

It is two months since JPMorgan CEO Jamie Dimon slammed bitcoin, the world’s leading cryptocurrency, labeling it a fraud. According to Dimon, bitcoin could be useful “if you were a drug dealer or a murderer.”

Dimon also compared bitcoin to the 17th-century Dutch tulip mania bubble. At the time, the CEO predicted the eventual demise of the digital currency and pledged to fire any trader trading bitcoin for being stupid.

In August 2017, Australia began regulating digital currency exchanges. Reforms aimed at strengthening the Anti-Money Laundering and Counter Terrorism Financing Act have resulted in cryptocurrency providers such as bitcoin being brought under the remit of the Australian Transactions and Reporting Analysis Centre (ATRAC)

Improvements are being made towards preserving and enhancing anonymity for cryptocurrencies.    ‘Dark Wallets’ have emerged in recent years.  ISIS has recived funding in Iraq and Syria .. 

Made by companies such as the eponymous Dark Wallet and BitcoinFog, they allow not only greater anonymity but render transactions almost untraceable.

Bitcoin mining is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second.

In cryptography, a keyed-hash message authentication code (HMAC) is a specific type of message authentication code (MAC) involving a cryptographic hash function and a secret cryptographic key. It may be used to simultaneously verify both the data integrity and the authentication of a message, as with any MAC. 

Any cryptographic hash function, such as MD5 or SHA-1, may be used in the calculation of an HMAC; the resulting MAC algorithm is termed HMAC-MD5 or HMAC-SHA1 accordingly. The cryptographic strength of the HMAC depends upon the cryptographic strength of the underlying hash function, the size of its hash output, and on the size and quality of the key.

HMAC generation uses two passes of hash computation. The secret key is first used to derive two keys - inner and outer. The first pass of the algorithm produces an internal hash derived from the message and the inner key. The second pass produces the final HMAC code derived from the inner hash result and the outer key. Thus the algorithm provides better immunity against Length extension attacks.

The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward.

Purchasing Bitcoins - In some cases, you may need to purchase mining hardware with bitcoins. Today, you can purchase most hardware on Amazon.

In the early days of bitcoin, it was possible to mine with your computer CPU or high speed video processor card. Today that's no longer possible. Custom Bitcoin ASIC chips offer performance up to 100x the capability of older systems have come to dominate the Bitcoin mining industry.

Bitcoin mining with anything less will consume more in electricity than you are likely to earn. It's essential to mine bitcoins with the best bitcoin mining hardware built specifically for that purpose. Several companies such as Avalon offer systems built specifically for bitcoin mining.

Another option is to purchase in Bitcoin cloud mining contracts. This greatly simplifies the process but increases risk because you do not control the actual physical hardware.

Being listed in this section is NOT an endorsement of these services. There have been a tremendous amount of Bitcoin cloud mining scams.

If you want to invest in bitcoin mining without the hassle of managing your own hardware, there is an alternative. You can use the cloud to earn your coins.

Put very simply, cloud mining means using (generally) shared processing power run from remote data centres. One only needs a home computer for communications, optional local bitcoin wallets and so on.

However, there are certain risks associated with cloud mining that investors need to understand prior to purchase.

Pros

Here’s why you might want to consider cloud mining:--

A quiet, cooler home – no constantly humming fans

No added electricity costs

No equipment to sell when mining ceases to be profitable

No ventilation problems with hot equipment

Reduced chance of being let down by mining equipment suppliers.

Cons

Here’s why you might not want to consider cloud mining:---

Risk of fraud

Opaque mining operations

Less fun (if you’re a geek who likes system building!)

Lower profits – the operators have to cover their costs after all

Contractual warnings that mining operations may cease depending on the price of bitcoin

Lack of control and flexibility.

Types of cloud mining

In general, there are three forms of remote mining available at the moment:---

Hosted mining

Lease a mining machine that is hosted by the provider.

Virtual hosted mining

Create a (general purpose) virtual private server and install your own mining software.

Leased hashing power

Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the most popular method of cloud mining.)

Basically, the concept of cloud mining is that you pay for the hardware and electricity, but not in its traditional sense. All you have to pay is a fixed rent. The payment you make is only considering a short amount of time. 

If you wish to rent a Bitcoin Mining rig and mine for 5 months, you sign a ‘contract’ for 5 months where you don’t have to pay for the cost of the entire mining setup, but just a rent for five months. 

However, most contracts are for a year. Some websites even offer an ‘unlimited’ contract. 

The mining begins immediately as soon as you make payments and you will be sent regular payouts in your Bitcoin wallet address.

Difference between Cloud Mining and Traditional Mining-- 

In case of a regular mining operation you own all the hardware. In case of a cloud mining operation, the hardware is owned by the cloud mining company.

In case of a traditional mining operation the miners do need some amount of technical know-how. 

However in case of cloud mining, all you need to know is the kind of contract you are signing.

The user does not need to take care of electricity charges, cooling down of devices or damage to the devices, etc as all of the hardware belongs to the cloud mining company. 

As good as it sounds, cloud mining is often a double edged sword

Cloud Mining is needed simply because of one reason - mining for bitcoins is not practical if you cannot invest massive amounts of money. This statement might not have held true a couple of years ago, but considering how hard it has become to mine bitcoins now and how many people are now on the bandwagon, it is becoming increasingly difficult. 

Most industry experts would suggest that it is now better to Buy Bitcoins and trade than to mine for them. However - Cloud Mining offers one alternative. You do not have to invest in high end equipment and you can outsource the entire mining operation. 

Even if you have enough money to invest in mining hardware, sometimes the cost of electricity might be higher than what you’d want it to be, causing a major additional expense. With the help of Cloud mining though, you can outsource it to a country or a region where the electricity costs are not as high.

There are a number of fraudulent websites and ponzi schemes being run in the name of cloud mining. Users who wish to mine cryptocurrencies over cloud mining must be aware of where they are entering.

Mining for bitcoins is in itself quite risky because of the unstable nature of the markets. Cloud Mining takes this risk to the next level. While market fluctuations are one factor, another major reason why people do not trust cloud mining is that about 99% of the mare ponzi schemes and extremely risky to invest in. 

As per most industry experts, miners and traders most companies which claim that they will mine cryptocurrencies online do not even have a mining rig. Naturally, a majority of these companies never send a single payout and shut down after they gather a significant amount of money.

What raises another major red flag is those companies which offer an unlimited time mining contract. This is because the mining efficiency reduces year after year and if this promise was to hold true most of these companies would be running on a loss. 

Sometimes some cloud mining companies would spread viruses which spread across millions of computers and use their processing power to mine for them!

Consider cloud mining as a risk - perhaps even consider it as a bad debt. The money you invest is as good as gone, but if you are lucky and invest in the right cloud mining schemes you might just get a return.

Genesis Mining is a  Hong Kong based company, which has been around for quite a long time now,

Genesis Mining offers the users with three kinds of plans when it comes to mining 

Bitcoins over the cloud-- These are all lifetime plans and involve a one-time payment. 

Gold: 100GH/s for $19

Platinum: 2,000 GH/s for $340

Diamond: 10,000 GH/s for $1600

Bitcoin cloud mining is a dangerous territory because of the risk of scams and ponzi schemes

The difficulty of assigning a fair value to a speculative instrument that is less than a decade old and lacks the fundamentals that drive other asset classes was the main reason for steering clear of VOLATILE bitcoin

“Can you live without bitcoins?

You bet your cotton picking’ ass we can!

Could you live without tulips in the Netherlands?

You bet your cotton picking’ ass we sure can!

While a single bitcoin is worth nearly $8,000 BTC=BTSP,    Japan Post Bank Chief Investment Officer Katsunori Sago said he believed its fair value was about $100 and it would have to fall to that level before the bank would consider buying it.

The idea that the bitcoin market, which is now worth $130 billion, constituted a bubble

While scores of digital currency hedge funds have been launched this year, institutional investors worry that bitcoin is too lightly regulated, too volatile and too illiquid to risk investing other people’s money in.

Interest in cryptocurrencies in the mainstream investment universe is limited to high-net worth individuals and kosher  companies managing portfolios for individual wealthy KOSHER families.

A Bitcoin wallet is a collection of private keys but may also refer to client software used to manage those keys and to make transactions on the Bitcoin network.

There is a big risk to storing Bitcoin on the same platform where you trade with it. Key examples of this are the Bitfinex and Mt. Gox hacks, losing a combined total of 970,000 Bitcoin.

Bitfinex is a crypto-currency exchange trading and currency-storage platform based out of Taiwan, owned and operated by iFinex Inc.

Since 2014, it has been the largest Bitcoin exchange platform, with over 10% of the exchanges' trading.

 In 2016, Bitfinex was hacked, and $72 million in bitcoin was stolen from its customers.

In that hack, the second-biggest breach of a Bitcoin exchange platform, 119,756 units of bitcoin, which was about $72 million at the time, were stolen. Bitfinex first announced the security breach on August 2, 2016. 

The bitcoin was taken from users' segregated wallets and Bitfinex said it was tracking down the hack. 

Significant hacker funds transactions were signed off by Bitfinex's security provider, without full security.

Shortly after the hack, Bitfinex created BFX tokens, which were used to represent customers' stolen equity. The BFX tokens represented $1 and were issued to account for the value of customers cryptocurrencies at the time of the hack. In April of 2017, Bitfinex announced they had bought back all of the BFX tokens, essentially paying back all of customers lost funds 

Apparently, if you owe someone $72 million dollars, and they agree to convert IOU’s into ‘equity’ in a shell corporation you fabricated, your corporation is now worth $72 million dollars!   Bitfinex gets ‘hacked’ and loses $72 million dollars of their customers funds, then seizes 36% of all user balances.

Bitfinex issues a “BFX Token” (aka an IOU) as a dollarized loss to all of their customers.

Bitfinex immediately starts trying to convince people holding these IOU’s to convert to equity, or Bitfinex shares, at a value that Bitfinex themselves determined (with no completed audits to establish this value), at $1.00 a share.

Bitfinex strongly encourages victims of the hack to convert to equity, and tells them that the fastest way to get their money back… is to convert to equity, and then… sell the shares to another investor.

Once enough people fell for this scam, they used the funds they seized from their customers to pay off the ‘hold outs’, or the people who didn’t fall for the scam or couldn’t due to US regulations against scamming people.

Bitfinex proudly proclaims that they ‘repaid’ all of their BFX tokens… with equity in an exchange with no functioning banking. An exchange that can’t exchange. 

Genius.

The fastest way to get paid back, is to convert debt to shares and then sell your shares to another shareholder

That’s not Bitfinex paying anyone back. That’s Bitfinex hoping another investor, bails out the hack victims.

Using new investors to bail-out the ‘old’ investors. The majority of the BFX tokens were in fact converted to equity.

This is known as a ponzi scheme.

Bitfinex essentially created $2 billion dollars of completely imaginary money, just like they created over $50+ million dollars of imaginary money to pay off the victims of the hack.

Listing theses fake forks also gives people holding Bitcoins an incentive to deposit to Bitfinex, so they can ‘sell’ the worthless BTG to get ‘free money’ to buy more Bitcoin with.

Two days ago----Bitfinex, the world’s largest bitcoin exchange by trading volume, is currently experiencing an outage with the exchange citing an unscheduled ‘infrastructure maintenance’ as the reason for the downtime.

I want you to think of a shipyard building a ship.

This company is going to acquire the resources, build the shell , cargo gear, everthing.  But there aint no engine .

I To the untrained eye everything looks normal. It’s definitely a ship.

Now imagine this yard sold this ship sans engines  to a gullible person

 No shipyard  in the world would make a mistake of this proportion, in fact, you’d have to wonder if it was intentional.

That’s Bitfinex for you !

No reasonable person would expect such a product to work correctly, yet they produced it and sold it to their customers, and investors.

And they knew it.

A wash trade is a form of market manipulation in which an investor simultaneously sells and buys the same financial instruments to create misleading, artificial activity in the marketplace.

Wash trading refers to buying shares through one broker and selling the shares through another broker. Wash trading is not legal, as it is performed to manipulate the market and encourage other investors to move into a buying position. 

A quick turnaround of positions is not considered wash trading, provided the transaction creates market risk for the trader and alters his market position.

Also known as round trip trading, the act of wash trading allows traders to buy stocks and then sell them, giving the appearance of purchases and sales being made, but the trader does not incur any market risk or change in market position.

The trade engine on Bitfinex will allow you to buy and sell to your own orders, the procedures to do it are as follows –

Place a buy order, or a sell order, for Bitcoin or anything that trades on Bitfinex.

Place a matching order opposite of your buy or sell order.

The trade engine will execute trade against your own order.

There’s zero legitimate reason to conduct a wash trade, except to manipulate the market, but the biggest reason why an exchange would want to prohibit wash trading is because simply…

Wash Trading is illegal!

According to the Commodity Exchange Act, wash trading is illegal but the bitcoin exchange Bitfinex allows it. Here is how:

Order to buy/sell bitcoin or any currency Bitfinex supports trading for,

Opt an order that exactly match your earlier order,

At last, trading will be executed against your own order.

However, if there was no wash trading, then a system of such exchange must update that your own orders are not identical. It is evident that wash trading leads for the unexpected market manipulation that is the reason other exchange platforms are not permitting it for their operations.

The controversy surrounding the correlation between the release of new Tethers (USDT) and dramatic price spikes led by Bitfinex trading continues. 20 million new USDT were released shortly before a single market buy of approximately $13.5 million USD worth of bitcoin was executed on the 8th of November. 

The sudden spike in buying pressure quickly drove the price of bitcoin from $7075 to $7350 in less than 60 minutes. Since then, an additional 20 million USDT have been released into circulation on the 9th, and another 30 million USDT on the 10th of November.

Many traders are noting an increasing correlation between the release of significant quantities of Tether and sudden movements in the price of bitcoin, with some expressing concerns at the speed with which a large volume of margin trades are executed following the release of new USDT.

The total supply of Tether has risen from less than 15 million in January 2017 to over 550 million as of today – comprising a more than 3400% increase since the start of the year.

This dramatic rise in the number of Tether has appeared significant as Bitfinex, a majority shareholder in Tether, appears to have failed to attain banking services since Taiwanese banks associated with Wells Fargo terminated the processing of wire transfers to the exchange

Bitcoin’s biggest exchange, Bitfinex, which is currently handling some incredible volumes of $800 million in the past 24 hours, is printing money out of thin-air through Tether, a centrally issued token that is meant to be backed by dollars. 

The allegation is that bitfinex is in effect printing money (tethers) out of thin air, with no dollar backing, then using the “fake” tether to buy “real” crypto such as bitcoin. 

It is impossible to prove the allegations because you’d have to prove a negative. 

That is, you can’t prove that the tethers are not backed. Bitfinex has provided no evidence to show the Tethers are backed by real dollars when some $200 million has been printed in new Tether this month at a time when Bitfinex is under a banking blockade. Who, therefore, is giving them such huge amounts, and how?

The amount of tether has incredibly shot up, from just $7 million in total at the beginning of the year to now around $700 million.

It’s unclear how such huge amount of money, nearing $1 billion, could move through the banking system to Bitfinex under a banking blockade.

Leading to allegations that real dollars have not actually changed hand, with the tokens simply printed out with no backing in a centralized manner.

The problem is that at some point reality might catch up, with more than half a billion of real crypto, mainly bitcoin, potentially exchanged for something that allegedly is not real.

Bitfinex has often led price movements in bitcoin, especially upwards. Traders usually tend to keep a close eye on most of the major exchanges, so if one moves upwards, others follow.

Bitcoin's huge price rise really started earlier this year, around the time a major exchange, Bitfinex, lost their banking.

 Bitfinex is responsible for the issuance of a type of currency called "tethers", which most traders on this forum have probably used. Tethers are a type of digital currency built using the Omni Layer on top of the Bitcoin blockchain. Each tether is backed 1-to-1 by traditional currency held in Tether Limited’s reserves. 

Accordingly, 1 USD₮ is always equivalent to 1 USD. Bitfinex lets you receive USD₮ from a Bitcoin blockchain address and treat them as a USD deposit. Similarly, you can withdraw funds to a Bitcoin blockchain address as USD₮.

Tethers are a crypto that is supposedly "backed" by dollars, that is, each individual tether can in theory be redeemed for one dollar from a bank account owned by Bitfinex's tether inc. subsidiary.

Tethers are not actually backed by dollars.

They're not backed by anything.

It is impossible to redeem tethers for real money. Nobody ever tries, everyone just assumes that you can. The bank account where the "backing" dollars are may not even exist. Tether claims daily audits, but there was one very poorly done audit of it over the course of months, that failed to verify much of anything.

The implications of this are obvious: Bitfinex has a supply of infinite money that they can use whenever they want at no risk to them. Want to buy some more bitcoin? Just create some more tethers!

Bitfinex corp also trades on its own exchange, and thus has access to information ordinary users don't. (They can see hidden orders, for instance.)

They can also wash trade with impunity, for instance, because who's going to catch them?

They own the exchange!

So you have a malicious actor with access to information that ordinary people don't have and a supply of free money. What would someone like that try to do? The same thing the Fed wanted to do with "quantitative easing", drive prices up as high as possible.

What have we seen with bitcoin? Prices being driven up as high as possible.

Ever noticed how how bitcoin will sometimes have these massive pumps that make no real sense, right after a huge drop? Not ordinary bounces, massive green candles that are FAST?

Ever ask yourself "What idiot is doing these huge market buys?" Well, it's not an idiot if they're paying with fake tethers.

There is good reason to believe that a large amount of Bitcoin's price rise over the last year is due to Bitfinex and their tethers. When the tether scam is stopped, expect the bitcoin price to crash.

THE BITCOIN BUBBLE BUST IS COMING ! 

There are 648 million tethers in existence

Bitcoin's circulating supply is about 15 million.

Tether really started to take off after March 2017, when Bitfinex was cut off from the traditional banking system, Tether being a sister company of Bitfinex, was also cut off from banking at the same exact time which triggered a lawsuit from both Tether and Bitfinex against Wells Fargo.

Tether claimed that the supply of tethers would not increase until their banking problem was solved, yet the supply of Tethers has actually increased by 482% since this announcement.

From July 2017 to August 2017, the supply of Tethers has increased by over $100,000,000 ‘USD’.

And no traditional banking… so how are Tethers being increased so substantially? Who is sending money to Tether to create these Tethers?

Who would in their right mind, agree to buy hundreds of millions of dollars of Tethers?

Bitfinex and Tether have attempted to resolve their banking problem by essentially creating seemingly unrelated shell corporations and opening bank accounts under those corporations. Phil Potter, Chief Strategy Officer, admitted to using this tactic for Bitfinex, and it’s not a stretch to presume that this tactic is being used regarding Tether as well.

In order to add Tether to an exchange you operate, you must contract with Tether Limited for the correct type of account. You can’t just add Tether to your exchange without cooperation with Tether, and it’s likely not a coincidence at all that these two started working together within days of their banking problems materializing.

BTC-E was very good at keeping their banking open, despite being notorious in the Bitcoin community for being shady and the place where criminals would cash their crypto-currencies out to fiat currencies.

Bitfinex and Tether, likely adopted the BTC-E strategy for their banking.

Tether has no real liquidity. 

Tether was stable throughout 2016 and did not start to increase until March 2017. Tether’s value seemed to take off along with Bitcoin’s dramatic rise.

Then about this same time, Bitfinex and Tether were suddenly let go by Wells Fargo and as such effectively cut off from the banking system. They were both cut off because Bitfinex and Tether are partner companies. This caused the companies to file a lawsuit against Wells Fargo.

There is also no limit to the supply of tether. The company can mint or create as many of them as needed. Nothing checks supply and demand of the asset.

Since Tether tends to move off of the dollar mark on exchanges, it could imply that people use Tether to hide in during times of uncertainty in the cryptocurrency ecosystem. This would explain why Tether’s price increases slightly when bitcoin and other cryptocurrencies are falling.

Tethers are not money.   Not redeemable for money.   Not backed by any legal claims

Lord Jacob Rothschild had boasted that the New World Order, which his family heads, would be in place by 2018.

There are more than 1,100 cryptocurrencies and a total market cap of approximately $150 billion circulating in the market today

Cryptocurrencies have been called one of the “greatest technological breakthroughs since the Internet.” 

They have also been called “a black hole” into which a consumer’s money could just disappear—a KOSHER BIG BROTHER mafia controls it..

Cryptocurrency exchanges are websites where you can buy, sell, or exchange cryptocurrencies for other digital currencies or traditional currencies such as US dollars or Euro. 

There are three types of exchanges:--

Trading Platforms

Direct Trading

Brokers

Bitcoin ATMs are Internet machines that allow a person to exchange Bitcoins and cash. Some Bitcoin ATMs offer bi-directional functionality; these machines enable the purchase of Bitcoin as well as the redemption of Bitcoin for cash. 

Bitcoin kiosks are machines which are connected to the Internet, allowing the insertion of cash in exchange for Bitcoins given as a paper receipt or by moving money to a public key on the blockchain. They look like traditional ATMs, but 

Bitcoin kiosks do not connect to a bank account. They instead connect the user directly to a digital exchange.

Bitcoin has the fintech ecosystem and the resources to compete, whereas its counterparts are still trying to stay on top and fight the other 1,100 cryptocurrencies in the market space.

Bitfinex (bitfinex.com), owned by iFinex Inc. which is registered on the British Virgin Islands (BVI), was launched in 2012 as a provider of cryptocurrency exchange services. The platform is ulyimately owned and operated by iFinex Inc., which is registered on the British Virgin Islands (BVI). The address could not be confirmed

USDT is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol. Each USDT unit is backed by a U.S Dollar held in the reserves of the Tether Limited and can be redeemed through the Tether Platform. 

USDT can be transferred, stored, spent, just like bitcoins or any other cryptocurrency, users can transact and store tethers with any Omni Layer enabled wallet like Ambisafe, Holy Transaction or Omni Wallet. SDT provides an alternative to Proof of Solvency methods by introducing a Proof of Reserves Process.

Tether.to is a custodian service, priding itself upon being transparent at all times. To achieve this goal, the company makes their reserves balance sheet publicly available. 

Their whitepaper states the balance of fiat currency will always be equal to the number of tethers in circulation. The company’s term of service indicates Tether has no contractual obligation to exchange Tethers for money. Moreover, they do not guarantee any right of redemption of Tethers for money.

Their fiat reserves are higher than the number of  tethers in circulation.

Anyone holding USDT right now runs the risk of not being able to convert them back to US Dollars. It seems unfeasible to peg USDT to a US$1 value until this discrepancy is resolved

  

Bitfinex passed a public “Proof of Reserves” audit, carried out by the CTO of Ripple Labs Stefan Thomas. This was in April 2014 and the platform hasn't repeated it since. Not even after losing 120,000 BTC in due to a hack in July 2016. BVI companies are not required to file statutory accounts.

Tether is a digital asset distributed on the Omni token platform, which allows for assets to be issued over the bitcoin blockchain

Omni is a software layer built on top of the most popular, most audited, most secure blockchain -- Bitcoin. Omni transactions are Bitcoin transactions that enable next-generation features on the Bitcoin Blockchain.

Omni (formerly Mastercoin) is a digital currency and communications protocol built on the bitcoin blockchain. It is one of several efforts to enable complex financial functions in a cryptocurrency.  

Planned features include the development of a decentralized exchange and the implementation of smart property and savings wallets. Omni Layer features include Tether Dollars backed by Bank Trust, redeemable for SWIFT at tether.to and bitfinex.com

Tethers exists on blockchains through the Omni Protocol. The Omni Protocol is open source software that interfaces with blockchains to allow for the issuance and redemption of cryptocurrency tokens, in our case, “tethers”. The conversion rate is 1 tether USD₮ equals 1 USD.

The Omni Protocol is designed to be a layer between the existing Bitcoin Protocol and users' currencies. It is a basic tool that allows anyone to design and release their own currency with their own rules, without any software development

Tether enables businesses – including exchanges, wallets, payment processors, financial services and ATMs – to easily use fiat currencies on blockchains. Tether currencies are not money, but are digital tokens formatted to work on blockchains. Tethers hold their value at 1:1 to the underlying assets.

The Tether Platform is fully reserved when the sum of all tethers in circulation is greater than or equal to the balance of fiat currency held in our reserve.

BUT --their fiat reserves are higher than the number of  tethers in circulation

Tether's website claims it's 100% backed, regularly audited, and users have 24/7 access... but that's the extent of their proof. You really just have to take the them at their word.. 

Tether hasn't provided any public audits, despite a promise of full transparency on January 15th, 2015 when Bitfinex acquired Tether. 

After losing $72 million in a hack announced on August 2nd, 2016, Bitfinex issued a redemption token called BFX to their customers as a promise to pay back what they owed. They began paying this back at an increasing rate, finally buying back the remaining 95% of liabilities between March and April 2017.

On August 11th 2017 Bitfinex suspended verification for US customers. It then seems extraordinarily odd that they continue to issue enormous sums of USD-backed Tether, where does the money come from?. 

On April 18th, Taiwanese banks also began blocking wires to the Tether backed bank, suggesting the funding mechanism for Tether is tenuous and subject to the whims of the banking industry:. 

The Tether whitepaper has a section called "Proof of Reserves" process, which essentially boils down to "You can see whenever new Tether are issued, and the issuance comes from our bank deposits, ...and you're just going to have to trust us on the bank deposits"

According to a post on Reddit, the Linkedin profile of Tether’s co-founder, Reeve Collins, previously stated that “Tether was acquired by Bitfinex.” 

On September 14, Bitfinex stated that “Bitfinex is owned & operated by iFinex Inc.” However, analysis provided on Twitter by Blockswater would suggest that both companies would ultimately be controlled by Digfinex Inc. 

This obfuscation of the ownership structures surrounding Bitfinex has intensified perceptions that the company is seeking to evade transparency pertaining to its operations.

When investors face uncertainty or high volatility they move their assets to a holding that is not affected by the rest of the market. This is a fundamental strategy in all existing markets. 

Other times, when a desired return or profit is met, it gets captured in the form of a cash settlement. In the cryptosphere, this is typically done by comparing returns to the amount of Bitcoin Satoshi's a coin has gained, exchanging the coin for the equivalent amount of Bitcoin, and finally converting the Bitcoin to fiat.

Currently, cashing out to fiat is a time consuming process that takes days to complete. This means if an investor wants to get back into the crypto market they must again wait days for their fiat to clear the traditional bank payment channels. 

Also, most exchanges do not offer a market for trading into fiat currency and those that do (and comply with regulation laws) require verification to follow KYC and AML laws.

If traders settle in Bitcoin and HODL it as their store of value, this realizes BTC profits/losses but still leaves traders vulnerable to the volatility of Bitcoin. HODL is used for "hold" - it's a term that was invented by a psycho who did a typo and it became famous. Whenever people talk here about holding their coins, they would rather say "hodl your bitcoins".

No one can predict the rise and fall of a market but when a trader hits their preferred level of profit/loss then a settlement mechanism is required. Tether aims to do just that: allow traders to convert their cryptocurrencies into a stable token providing protection against market volatility.

Tether is a cryptocurrency that is pegged directly to that of Fiat currency because each coin is directly backed with the matching amount of fiat currency (one-to-one). 

The currencies currently offered for trade with Tether are US Dollars (USD), Euros (EUR), and Japanese Yen (JPY) and on exchanges are found under the symbols USD₮, EUR₮, and JPY₮ respectively.

The goal for each of these coins is to remain equal in value to that of the underlying fiat currency.

In their current form, exchanges are unreliable and insolvency is always right around the corner due to hacks, mismanagement, or outright fraud. It requires everyone to be diligent with their use of each exchange and puts a heavy burden on each user to properly manage their various wallets and keys. 

Tether Limited seeks to eliminate this risk by introducing the Proof of Reserve concept. The PoR is a process that ensures the number of tethers in circulation are fully backed by an equal amount of fiat currency. 

The verification process of this one-to-one fiat backing is trivial since the number of tethers in circulation can be queried from the blockchain (or viewed at omnichest.info) and the amount of fiat currency is transparent on the tether.to website.

Much like Ethereum is attempting to build a stack of decentralized applications, the Omni Layer protocol does a similar function on the Bitcoin blockchain. The layers of the stack for Tether are as follows:---

Bitcoin Blockchain

Omni Layer Protocol

Tether Limited (primary business entity)

As you move up the stack each layer provides more abstraction away from the underlying blockchain and eventually ends with a customer facing business that functions like any other business.

An added benefit of using the Omni Layer Protocol is the ability to use an Omni Layer enabled wallet and the Omni Layer website presents a couple of options.

While Tether is not fiat, it is also not a cryptocurrency investment. Tethers can be used just like bitcoins, i.e. in a p2p, pseudo­-anonymous,  decentralized, cryptographically secure environment.

Tethers can be integrated with merchants, exchanges, and wallets just as easily as Bitcoin or any other cryptocurrencies can be integrated.

BITFINEX THEFT WAS AN INSIDE JOB !

Tethers inherit the properties of the Omni Layer protocol which include: a decentralized exchange; browser­ based, open ­source, wallet encryption; Bitcoin-­based transparency, accountability, multi­party security and reporting functions.

The US government wants the full client records of Coinbase. 

The KOSHER CONTROLLED bitcoin exchange vows to oppose it in court. 

San Francisco headquartered Bitcoin and Ethereum exchange Coinbase has notified its clients that the US government is seeking all the information the firm collected on its clients in the country.

Coinbase is a digital asset broker headquartered in San Francisco, California. They broker exchanges of Bitcoin , Ethereum , Litecoin  and other digital assets with fiat currencies in 32 countries, and bitcoin transactions and storage in 190 countries worldwide.

The American tax agency, the IRS (Internal Revenue Service), filed a petition in federal court seeking disclosure of all Coinbase US customer records over a three year period, 2013-2015. 

The IRS took this step after it found just three cases where people allegedly tried to dodge paying taxes using cryptocurrencies..

Founded in June 2012, the exchange has served 4.8 million clients and issued 10.6 million cryptocurrency wallets, making it the leading provider in the US market.

EVERY WOMAN KNOWS HOW TO MAKE EASY MONEY BY WHORING AROUND BEHIND THEIR FATHERs OR HUSBANDs BACK

IRS must know why out of 500,000 Coinbase Users, only 900 reported gains or losses.

We will NOT allow KOSHER SPONSORED agents to dodge taxes—like how Rothschild’s FREEMASON OPIUM DRUG RUNNING AGENTS dodged taxes

http://ajitvadakayil.blogspot.in/2010/12/dirty-secrets-of-boston-tea-party-capt.html

HONESTY IS BRANDED AS “HINDU RATE OF GROWTH” BY ADI GODREJ

http://ajitvadakayil.blogspot.in/2010/11/drug-runners-of-india-capt-ajit.html

The company’s ( Coinbase ) digital currency platform allows gains to be converted into old-fashioned dollars in transactions that the IRS alleges are going unreported..

Coinbase and industry trade groups are fighting back in court, claiming the government’s concerns about tax fraud are unfounded and that its sweeping demand for information is a threat to privacy.

WELL WE THE PEOPLE WILL NOT ALLOW KOSHER FINANCIAL CRIMINAL JACKALS ANY PRIVACY .. THOSE ROTHSCHILD AGENT KOSHER JUDGE SPONSORED DAYS ARE OVER..

WE KNOW THE JUDGES IN INDIA WHO SPONSOR ROTHSCHILDs FOREIGN FUNDED NGOs IN INDIA WHO KEEP FILING DESH DROHI PILs.

http://ajitvadakayil.blogspot.in/2017/08/right-to-privacy-in-india-is-not.html

Both Coinbase and bitcoin have exploded. Whereas Coinbase had under 5 million users last November when the IRS filed its lawsuit, as of last week it had 12.2 million users, deploying 41 million virtual currency wallets in 32 countries that have so far exchanged $40 billion in digital currency.

The price of bitcoin hit a record high just under $8,000 at the start of November, more than 10x higher than in November 2016.   

Less than 0.18% of coinbase users bothered to report anything on their tax forms.

Why is this being allowed?

Capt. Ajit VadakayilNovember 19, 2017 at 1:12 PM

http://ajitvadakayil.blogspot.com/2017/11/blockchain-bitcoins-ponzi-part-13-capt.html

SEND THE LINK ABOVE TO NITI AYOG ... TELL THEM TO READ ALL 13 PARTS ...

National Institution for Transforming India, is policy think tank of Government of India-- this mediocre THINK TANK must keep pace with REAL truths ...

put this comment in the websites of --
AMITABH KANT, PM MODI, PMO, ARUN JAITLEY, MEA , RAJNATH SINGH , LAW MINISTER, CJI

HULLO AMITABH KANT —

SLOW DOWN –JUST TAKE IT EASY—

PROTECT BHARATMATA – STOP THIS HUNGER FOR SHINING PERSONALLY .. DON’T DIVE OFF THE DEEP END WITHOUT CHECKS AND BALANCES..

AMITABH KANT BABY ,  I KNOW YOU

YOU WERE A COLLECTOR AT CALICUT ( MY HOMETOWN ) AND YOU DID A GOOD JOB..   CAPT AJIT VADAKAYIL SPONSORED YOU.

According to a 2014 IRS rule, virtual currencies that can be converted into traditional currency are property for tax purposes. Taxpayers can have a gain or loss depending on the cost, or tax basis

GULLIBLE PEOPLE DO NOT KNOW THAT MANY COMPANIES SELF INFLICT HACK THEMSELVES 

Last week Korean exchange Bithumb, the world’s largest cryptocurrency exchange by trading volume,  pointed to an unexpected surge in transaction- and user-volumes leading to a server outage over the weekend.

Seoul-based Bithumb has explained the cause of a server failure during the weekend, wherein users were unable to make withdrawals nor deposits for a little under two hours on Sunday evening.  Bithumb is the world’s largest cryptocurrency exchange by trading volume, totaling nearly 18% of the overall global trading.

The exchange blamed the soaring successes of bitcoin’s offshoot bitcoin cash (BCH) over the weekend. Bitcoin cash value spiked in recent days following the cancellation of the Segwit2x hard fork, fueling investor interest.

Bithumb revealed 24-hour trading volume leading up to the outage reached 900% to that of October’s ( 2017 )  average. The number of concurrent users on the website grew a staggering 1700% compared to the previous day’s average, leading to internet connections rising up to 3 Gbps in bandwidth, over 500% of the previous average

All of which led to unprecedented traffic that crippled Bithumb’s servers, akin to a DDoS attack. Major bitcoin exchanges like US-based Coinbase and Kraken have also suffered similar outages during times of volatility.

Earlier this year, the Korean exchange promised to compensate users for monetary losses following a sweeping data breach due to a phishing attack targeting employees’ computers.

Mt. Gox was the first successful bitcoin exchange that could cope with a massive number of users anywhere in the world. At its peak, it handled 80 percent of all bitcoin transactions. The company became famous under Karpelès’s ownership, but it was an American named Jed McCaleb who started the site. 

Jed McCaleb is an American programmer known for creating the peer-to-peer technologies eDonkey  and Overnet, as well as the bitcoin exchange place Mt. Gox (which was then sold to Mark Karpelès).. He founded the company Ripple in 2011, which he left, and the foundation Stellar in 2014

Mt. Gox was once the biggest exchange for the virtual currency. Then half a billion dollars’ worth went missing.

ALMOST ALL CRYPTO CURRENCY HACKS ARE  INSIDE JOBS  ---SAYS CAPT AJIT VADAKAYIL

When Mark Karpeles , the CEO of what was once the world’s largest Bitcoin exchange, said that the company had gone bankrupt because 800,000 bitcoins (worth nearly half a billion dollars at the time) had been hacked, he wasn’t exactly lying. He wasn’t exactly telling the whole truth, either, but there was an intriguing element of fact.

At least 80,000 had been hacked before Karpeles even took over the company, and that initial cyber theft began a spiral of trouble that may have led directly to the firm’s financial collapse.

Mt. Gox, which was once the world’s largest exchange for the decentralized virtual currency, filed for bankruptcy protection in February 2014, when it was reported that 850,000 bitcoins, worth $450 million at the time, had disappeared or been stolen by hackers. Mt. Gox said it also lost $27 million in cash.

Originally, the company had been created as a platform for trading playing cards. Pokémon probably is the most familiar version in the West, but these were for Magic: The Gathering, a game that was popular among kids who gave up on any hope of being “cool” at high school; a dungeons and dragons sort of card game for obsessive fans.

The company we’re writing about here was called Magic: The Gathering Online eXchange, which is where Mt. Gox derived its unusual name. But in a very short time, it left the original nerds far behind as bitcoins came in and cards went out. And then, a whole lot of bitcoins went missing.

Jed McCaleb first approached Mark about selling him Mt. Gox in January of 2011. 

####################

In an email dated Jan. 18 that year, McCaleb wrote to his acquaintance Karpeles:

Hi Mark~

Please keep all this confidential I don’t want to start a panic and I’m not sure I’ll do it yet but I’m thinking I might try to sell mtgox. I just have these other projects I would like to devote more time to. Would you be interested? It could be very little up front and just a payout based on revenue or something. There is also an investment group that wants to fund mtgox. Probably around $158k. So you could most likely take it over with some cash.

Let me know

Thanks,

Jed.

#####################

Karpeles had become interested in Bitcoin in late 2010 and saw the Mt. Gox platform as the perfect place to set up a Bitcoin exchange. In the early days of the currency, changing fiat money (real money) into bitcoins was an arduous task.

Karpeles agreed to purchase the company from McCaleb and by Feb. 3, 2011, he had signed an agreement with McCaleb to buy the firm, under some very unusual terms.

Mt. Gox's bankrupty proceedings will repay creditors in Japanese Yen at a price around $400USD per bitcoin (the price set by the court) and it has been reported will leave Karples with the bulk of the wealth left over from the difference after the creditors are repaid and the market price today, leaving Karples with nearly a billion US dollars (based upon Bitcoin prices around $7500)

Shortly after the handover, Karpeles became aware that Mt.Gox had already been hacked at least once and was missing a substantial number of bitcoins—a total of 80,000 to be precise.

The following email on April 28, 2011, which reportedly has been submitted into evidence by both sides in the trial, was probably the beginning of Mark Karpeles’s nightmare:

 #################

From: Jed McCaleb

Date: 2011/04/28 22:33

To: Mark Karpeles

I can’t tell how big an issue it will be to be short 80k BTC (*80,000 bitcoin) if the price goes to $100 or something. That is quite a bit to owe at that point but mtgox should have made a ton of BTC (Bitcoin) getting to there. There is also still the fact that the BTC (Bitcoin) balance will probably never fall below 80k. So maybe you don’t really need to worry about it.

There are 3 solutions I have thought of:--

- Slowly buy more BTC with the USD that Gox Bot has. Hopefully you would fill up the loss before the price got out of hand.

- Buy a big chunk of BTC (really just moving the BTC debt to the USD side) If BTC goes up this is a huge win. Problem is there isn’t enough BTC for sale on mtgox. Maybe you could find someone on the forum to do it.

- Get those crystal island people to invest･They have 200+ BTC so they could fill in the gap.

Maybe you could just mine it？

##################

Both Mark and Jed were aware of some 80,000 BTC that seem to have already been missing before the large June 2011 hack, and Jed was suggesting possible approaches to recovering from it.

The question then remains: did either of them put these plans into action—for example creating a trading bot (a software application that runs automated tasks) to cover the loss.

That is still an unresolved mystery.

In April 2011, 80,000 bitcoins were worth approximately $62,400.

Maybe Karpeles figured he could make it back up as he went along. But luck was not on his side. As he would try to fill the hole, the price of bitcoins kept rising. By June 2, 2011, the value for the missing BTC had jumped to over $800,000.

Unfortunately for Karpeles, he had signed a non-disclosure agreement that left him unable to discuss the loss, and he faced the Sisyphean task of recovering the missing bitcoins on his own—a problem that became greater by the day and sometimes by the hour as the value of bitcoins skyrocketed.

In June of 2011, Mt. Gox was hacked once again. Investigators at the time believed that hackers might have gained access to Jed McCaleb’s administrator account, which was still active.

Karpeles’s reaction to the hack was to move the majority of the bitcoins off-line into what is called “cold storage” and place them in safety deposit boxes dispersed through various banks in Tokyo. He only left enough online to make sure transactions could be carried out. 

But having moved the bitcoins off, Karpeles neglected to reconcile the amounts of cold storage with other customer accounts.

Mt. Gox was not an investment company, according to my opinion. It was like a pachinko parlor gift exchange.” (Pachinko is a Japanese variant of pinball with a payoff.)

The Japanese courts will determine if Karpeles has committed criminal acts, but the latest revelations would make anyone ask: Is he a con-man, a victim, a fall-guy, or all of the above?

One thing seems clear—Karpeles bought a company already missing tens of thousands of bitcoins.

In July 2017, hackers hijacked cryptocurrency trading platform CoinDash on Monday just as it was in the middle of its initial coin offering, or ICO.

Coindash is a blockchain company that helps investors manage investments and hedge those investments against other traders

CoinDash, an Israeli startup, planned to raise capital by selling its own digital tokens in exchange for the cryptocurrency Ethereum, which is similar to Bitcoin. 

But just 13 minutes into the token sale, which began at 9 a.m. ET Monday, an “unknown perpetrator” hacked CoinDash’s website and changed the address for sending investments to a fake one, the company later announced on its website. 

That diverted millions of dollars in contributions to the attacker.While the CoinDash ICO still managed to raise $6.4 million from early investors, the hacker stole $7 million ( an inside job ) worth of Ethereum before the company was forced to pull the plug on the token sale.

The CoinDash hack is reminiscent of another large-scale Ethereum heist last year, when attackers breached a blockchain organization called the DAO and stole more than $50 million that had been raised in an ICO a month earlier. But the DAO hack occurred after the token sale had already ended. 

ShapeShift is a company that offers global trading of a variety of digital assets via web and mobile platforms.

The company does not collect personal data on its customers and exchanges one cryptocurrency for another without ever collecting customer funds into company accounts, which is unique among digital currency trading companies

There was a complicated series of thefts at ShapeShift, a cryptocurrency exchange that calls itself the "safest asset exchange on Earth" and is used to convert between different virtual currencies. Thieves broke in three separate times over a time span of two weeks and cleaned out the hot wallets each time, totaling around $200K USD.

Instant cryptocurrency exchange ShapeShift hack inside job claims its own CEO Erik Voorhees. According to Voorhees, a sysadmin with the pseudonym Bob first installed a backdoor on another developer's machine, then used his own credentials to empty out the Bitcoin hot wallet, then initially hid and subsequently destroyed his keys to cover his tracks.

Shapeshift’s exchange, which offers near-instant exchange between numerous cryptocurrencies without the need for registration or customer accounts, has proved popular with users. It does not hold customer balances, meaning only funds from the company’s own hot wallets were at risk of loss.

In October 2016, ShapeShift's privacy policy stirred controversy when it was revealed that, although the company "requests as little information as possible in order to enable blockchain asset exchange. 

To exchange cryptocurrencies with ShapeShift you do not need to give them any personal data like your name, your location or your email address. You just send funds to a specific address which serves as both an order and a receipt

Any idiot can figure out the Etherum DAO hack was an inside job

The ethereum network is a network of computers all running the ethereum blockchain.   The blockchain allows people to exchange tokens of value, called ether, which is currently the second most popular cryptocurrency behind bitcoin.  

Ethereum also allows people to write and put on the network smart contracts  – general-purpose code that executes on every computer in the network (  at that time  over 6,000 computers). People then execute these programs by sending ether to them.

A DAO is a Decentralized Autonomous Organization. Its goal is to codify the rules and decisionmaking apparatus of an organization, eliminating the need for documents and people in governing, creating a structure with decentralized control.

Here’s how it works:--

A group of people writes the smart contracts (programs) that will run the organization

There is an initial funding period, in which people add funds to the DAO by purchasing tokens that represent ownership – this is called a crowdsale, or an initial coin offering (ICO) – to give it the resources it needs.

When the funding period is over, the DAO begins to operate.

People then can make proposals to the DAO on how to spend the money, and the members who have bought in can vote to approve these proposals.

The DAO was popular, raising over $100m by 15th May, and by the end of the funding period, The DAO was the largest crowdfunding in history, having raised over $150m from more than 11,000 enthusiastic members. The DAO raised far more money than its creators expected.

By 18th June, 2016,  the attacker managed to drain more than 3.6m ether into a “child DAO” that has the same structure as The DAO. The price of ether dropped from over $20 to under $13.

Several people made attempts to split ..  The DAO to prevent more ether from being taken, but they couldn’t get the votes necessary in such a short time. 

Because the designers didn’t expect this much money, all the ether was in a single address (bad idea), and the attacker stopped voluntarily after hearing about the fork proposal .

Given a couple more hours, the hacker could’ve made off with over $180,000,000 from vulnerable wallets.

 In fact, that attack, or another similar one, could continue at any time.

To prevent the hacker from robbing any more banks, the white-hats wrote software to rob all of the remaining banks in the world. 

Once the money was safely stolen, they began the process of returning the funds to their respective account holders. The people who had their money saved by this heroic feat are now in the process of retrieving their funds.

Because the child DAO has the same structure, limitations, and vulnerabilities as the parent DAO, the ether in this newly created child DAO can’t be accessed for 28 days, as that is the initial funding period. The DAO contains roughly 15% of all ether, so a failure of The DAO has a negative impact on the ethereum network and its cryptocurrency.

On 20 July 2016, the Ethereum community decided to hard-fork the Ethereum blockchain to restore virtually all funds to the original contract.This was controversial, and led to a fork in Ethereum, where the original unforked blockchain was maintained as Ethereum Classic, thus breaking Ethereum into two separate active blockchains, each with its own cryptocurrency.

The DAO was a digital decentralized autonomous organization and a form of investor-directed venture capital fund.

The DAO had an objective to provide a new decentralized business model for organizing both commercial and non-profit enterprises. It was instantiated on the Ethereum blockchain, and had no conventional management structure or board of directors. The code of the DAO is open-source.

The DAO was stateless, and not tied to any particular nation state. As a result, many questions of how government regulators would deal with a stateless fund were yet to be dealt with.

The DAO was crowdfunded via a token sale in May 2016. It set the record for the largest crowdfunding campaign in history

The program in question is called a "smart contract". The code is completely open for all participants to examine. Sending money to the contract is the equivalent of signing and agreeing to the terms of the contract.

This particular contract, TheDAO, just so happened to have a clause that essentially read "Anyone who executes this clause gets all the money held by this contract". Let's call it the "Exit Clause". Either no one noticed, or no one cared, but in any case, the Exit Clause was there.

Then people sent over $150 million worth of ether to this smart contract, thus agreeing to the terms, including the Exit Clause. One of these people who actually read the contract and understood what they were signing up for decided to execute the Exit Clause. Everyone else who sent money to the contract was shocked that someone would actually execute a clause that gives them all the money.

The DAO hack exposed the early frailties of smart-contract security and left many in the community shaken because they hadn’t found the bug in time

While Bitcoin uses its blockchain to implement a ledger of monetary transactions, Ethereum uses its blockchain to record state transitions in a gigantic distributed computer. Ethereum’s corresponding digital currency, ether, is essentially a side effect of powering this massive computer.

To put it another way, Ethereum is literally a computer that spans the entire world. Anyone who runs the Ethereum software on their computer is participating in the operations of this world-computer, the Ethereum Virtual Machine (EVM). 

Because the EVM was designed to be Turing-complete (ignoring gas limits), it can do almost anything that can be expressed in a computer program.

Strength is a weakness when it comes to programming languages. The stronger and more expressive a programming language is, the more complex its code becomes.

A common saying in cybersecurity is “attack is always easier than defense.” Blockchain sharply multiplies this imbalance. It’s far easier to attack because you have access to the code of every contract, know how much money is in it, and can take as long as you want to try to attack it. And once your attack is successful, you can potentially steal all of the money in the contract.

Imagine that you were deploying software for vending machines. But instead of a bug allowing you to simply steal candy from one machine, the bug allowed you to simultaneously steal candy from every machine in the world that employed this software. Yeah, that’s how blockchain works. In the case of a successful attack, defense is extremely difficult.

Let's say you have $50 in the bank and you want to withdraw that from an ATM. You insert your card, punch in your PIN number and then request that $50. Before the machine spits out the cash it will check your balance. Once it spits out the cash, it will debit $50 from that balance. 

Then the machine asks you if you'd like to process another transaction. You tap "yes" and try to take $50 again. But the ATM sees that your balance is now $0 and refuses. It asks you again if you want to process another transaction, so this time you say "no." Your session ends.

Now imagine that the ATM didn't record your new balance until you ended the session. You could keep requesting $50 again and again until you finally told the machine you didn't want to process any more transactions—or the machine ran out of money.

The DAO hacker was probably able to run a transaction that automatically repeated itself over and over again before the system checked the balance. This is why I say it is an inside job

The idea behind Ethereum, much like Bitcoin, was to create a computer system that facilitated transactions using the immutable rules of mathematics. The code would eliminate the need to trust anyone. 

If people can simply reverse transactions they didn't mean to make, it proves that people, not mathematics are really in charge of the system

Bitcoin’s price suddenly jumped to a new all-time high of $8,100.

While its trading volumes stand at near $3 billion, with Bitfinex handling the most of any other exchange at around $300 million during the past 24 hours.

I RECKON “I GOT FUCKED” WILL SOON BE REPLACED BY “ I GOT BITFINEXED ”

It is possible Bitfinex is printing out fake money through Tether, a centralized digital currency that is meant to be pegged to the dollar.

That pegging is done by each dollar representing one Tether, but it is possible that these dollars don’t exist at all, with Bitfinex printing unbacked Tether.

Bitfinex have not provided  any evidence that the nearly $700 million Tether is backed by actual dollars.

People have NOT realized that Bitfinex and Tether are running a  Poni scheme

They will not do any audit --the most recent " TRUST US memo" is not an audit.. Friedman LLP's website show that they have Bitfinex as an audit client. If so where are the audit results

They are creating tether out of thin air backed by nothing more than a promise. people are now reporting increasing issues of not getting their money or coins out of the exchange. 

This scheme is likely to collapse in the next few months as indicated the increasing issuance of tether (1/3, 200 million, of all tether issues in the last 18 days).. They currently only allow "institutional" investors to buy or sell tether because they cannot handle the small buy and sells and they need the funds to pay off others asking to withdraw. 

The amount of tether in circulation never deceases which is impossible if people are actually buying and selling tether. They use tether to skirt financial regulations. When the exchanges buy and sell bitcoin they are not trading dollars they are trading tether. 

Tether is "backed" by the equivalent amount of USD supposedly sitting in a bank somewhere. This is the issue, currently there is over 600 million tether out there and zero proof that there is the equivalent in USD in a bank to back it. 

When bitcoin prices goes down and people want to trade their tether for dollars, there aint no dollars.

Crypto assests are a bubble.  Market capitalization is $222 billion, 16 times as much as a year ago, with no significant change in tangible economic value.

All bubbles are accompanied by hype, but hype is not proof we are in a bubble. One quantitative bubble test considers the relation between asset price and volatility. 

The mathematics get intimidating, but the general idea is that if volatility increases too fast as price goes up, an asset price has to go to either infinity or zero. Because it can't go to infinity, 5   it has to go to zero. It will shoot upward and then crash

This is why it is important to learn from history

Value of gold is also appreciating—but not the way Bitcoin is doing.  You can touch and bite gold , it is tangible.

Gold can NEVER EVER appreciate 700% in just a few months

Bitcoin proper will never achieve the transaction speed of credit cards, so expectations of it becoming an important digital currency aint rational.

CKNovember 20, 2017 at 4:22 PM

SBI blockchain rollout December

https://www.cryptocoinsnews.com/indias-largest-bank-confirms-blockchain-rollout-december/

INDIA IS BEING USED AS A GUINEA PIG IN FINANCE

WE KNOW HOW BHARATMATA PAID THE PRICE FOR THE KOSHER" GREEN REVOLUTION " , THE KOSHER "WHITE REVOLUTION " AND KOSHER  " EVIL PHARMA INDIANS AS GUINEA PIGS REVOLUTION "

WHAT THE FUCK IS HAPPENING ?

1. 
   Capt. Ajit VadakayilNovember 20, 2017 at 5:26 PM

   https://www.cryptocoinsnews.com/indias-largest-bank-confirms-blockchain-rollout-december/
   
   This is TOTALLY reliant on Intel’s Software Guard Extensions(SGX) .
   
   SO STATE BANK OF INDIA ( READ AS FINANCE MINISTRY RUN BY A LAWYER NAMED ARUN JAITLEY ) WANTS TO OPEN INDIAs BOTTOMS WIDE TO INTEL , RIGHT ?
   
   PoET doesn't make sense for either private or public blockchains. ..
   
   It's way too easy to create multiple layers of obfuscation that ultimately don't contribute to the underlying security model...
   
   WE THE PEOPLE ASK ASK -- WHAT IS THE VESTED AGENDA ?
   
   WHO IS CONDUCTING THIS CONTROLLED "SWAYAMVAR " SHADI BETWEEN BHARATMATA AND KOSHER INTEL ?
   
   WE ASK—
   
   ARE WE DIVING OFF THE DEEP END ?
   
   IS THIS SYSTEM TRIED AND TESTED?   WHERE IS THE PROOF?
   
   IS THIS WHY MODI AND JAITLEY HAVE MERGED ALL INDIAN BANKS TO HOCK OUR NATIONs FINANCES AND FUTURE TO INTEL ?
   
   http://ajitvadakayil.blogspot.in/2017/11/blockchain-bitcoins-ponzi-part-13-capt.html
   
   WE WATCH--SOME PEOPLE WILL SOON GO TO JAIL FOR OFFENCES A MILLION TIMES WORSE WORSE THAN THE ENRON SCAM.
   
   PUT THIS CRITICAL COMMENT IN THE WEBSITE OF ARUN JAITLEY, SBI CHAIRMAN , FINANCE MINISTRY, PMO, PM MODI, CJI, LAW MINISTER, HOME MINISTER, SWAMY , GURUMURTHY
   
   capt ajit vadakayil
   ..

SBI is constrained to use Intel hardware like SGX to execute code in a protected area that can't be inspected or tampered with.

Intel came up with a consensus algorithm which may find its way to cryptocurrency at some point in the future. This concept is known as Proof of Elapsed Time

Intel is exploring this distributed consensus model as part of their Sawtooth project.

Hyperledger Sawtooth is an enterprise distributed ledger (aka blockchain) project.

In Sawtooth, the data model and transaction language are implemented in a transaction family.

Consensus is the process of building agreement among a group of mutually distrusting participants. There are many different algorithms for building consensus based on requirements related to performance, scalability, consistency, threat model, and failure model.

Consensus is the validation mechanism that a blockchain network uses . These are the validation rules by which the network automatically validates a transaction . Consensus is required to maintain the world state of the blockchain network. 

While deciding which Blockchain platform to choose it is important to understand the consensus mechanism that it deploys because the underlying philosophy and risk to business depends a lot on the chosen consensus mechanism.

The Proof of Elapsed Time consensus protocol is what is used by Intel Sawtooth now IntelLedger (under Linux Hyperledger Foundation) . 

This consensus algorithm has vouched for a random leader election methodology. The leader can be any of the participating active nodes. The chosen leader finalizes the block . 

The system  ensures that the leader is chosen without manipulation and all participating notes verify the same and also deploy random leader distribution method.

Intel SGX is a set of CPU code instructions from Intel that allows user-level code to allocate private regions of memory, called enclaves, that are protected from processes running at higher privilege levels. 

Intel designed SGX to be useful for implementing secure remote computation, secure browsing, and digital rights management (DRM).

PoET uses Intel special processor capability to regulate block frequency rather than computation

Sawtooth abstracts the core concepts of consensus and isolates consensus from transaction semantics.  The interface supports plugging in various consensus implementations. Sawtooth provides two such implementations: dev_mode and PoET.

Dev_mode is a simplified random leader algorithm that is useful for developers and test networks that require only crash fault tolerance.

PoET, short for “Proof of Elapsed Time” is a Nakamoto-style consensus algorithm. It is designed to be a production-grade protocol capable of supporting large network populations.

PoET essentially works as follows... Every validator requests a wait time from an enclave(a trusted function). The validator with the shortest wait time for a particular transaction block is elected the leader.

Proof-of-elapsed-time (PoET), solves the computing problem of "random leader election," or selecting who will create the next block of transactions.

One function, say “CreateTimer” creates a timer for a transaction block that is guaranteed to have been created by the enclave. Another function, say “CheckTimer” verifies that the timer was created by the enclave and, if it has expired, creates an attestation that can be used to verify that validator did, in fact, wait the allotted time before claiming the leadership role.

The PoET leader election algorithm meets the criteria for a good lottery algorithm. It randomly distributes leadership election across the entire population of validators with distribution that is similar to what is provided by other lottery algorithms.

The probability of election is proportional to the resources contributed (in this case, resources are general purpose processors with a trusted execution environment). An attestation of execution provides information for verifying that the certificate was created within the enclave (and that the validator waited the allotted time).

Further, the low cost of participation increases the likelihood that the population of validators will be large, increasing the robustness of the consensus algorithm.

The Sawtooth platform is distributed in source code form with an Apache license.

The Apache License is a permissive free software license written by the Apache Software Foundation (ASF) .

Like other free software licenses, the license allows the user of the software the freedom to use the software for any purpose, to distribute it, to modify it, and to distribute modified versions of the software, under the terms of the license, without concern for royalties.

The Apache License allows you to freely use, modify, and distribute any Apache licensed product.

PoET is notably designed to be used on a certain type of computer manufactured by Intel, called trusted execution environments (TEE).

The Trusted Execution Environment (TEE) is a secure area of the main processor. It guarantees code and data loaded inside to be protected with respect to confidentiality and integrity.

The TEE as an isolated execution environment provides security features such as isolated execution, integrity of Trusted Applications along with confidentiality of their assets.  In general terms, the TEE offers an execution space that provides a higher level of security than a rich mobile operating system open (mobile OS) and more functionality than a 'secure element' (SE).

The “Sawtooth Lake” platform, which promises to allow companies to run their own blockchain, providing a permanent digital record.

The Sawtooth Lake platform provides two consensus protocols with different performance trade-offs. The first, called PoET for “Proof of Elapsed Time,” is a lottery protocol that builds on Trusted Execution Environments (TEEs) provided by Intel’s Software Guard Extensions (SGX) to address the needs of large populations of participants.

The second, Quorum Voting, is an adaptation of the Ripple and Stellar consensus protocols and serves to address the needs of applications that require immediate transaction finality.

PoET uses a TEE such as SGX to ensure a safe, random and robust lottery function without the specialized hardware and high power required by most proof algorithms.

Intel’s approach is based on a guaranteed wait time provided through the TEE. According to Intel, the algorithm scales to thousands of participants and will run efficiently on any Intel processor that supports SGX.

Algorithms for achieving consensus with arbitrary faults generally require some form of voting among a known set of participants. Two general approaches have been proposed.

The first, often referred to as “Nakamoto consensus”, elects a leader through some form of “lottery”. The leader then proposes a block that can be added to a chain of previously committed blocks. In Bitcoin, the first participant to successfully solve a cryptographic puzzle wins the leader-election lottery. 

The elected leader broadcasts the new block to the rest of the participants who implicitly vote to accept the block by adding the block to a chain of accepted blocks and proposing subsequent transaction blocks that build on that chain.

The second approach is based on traditional Byzantine Fault Tolerance (BFT) algorithms and uses multiple rounds of explicit votes to achieve consensus. Ripple and Stellar developed consensus protocols that extend traditional BFT for open participation.

Sawtooth Lake abstracts the core concepts of consensus, isolates consensus from transaction semantics, and provides two consensus protocols with different performance trade-offs.

The first, called PoET for “Proof of Elapsed Time”, is a lottery protocol that builds on trusted execution environments (TEEs) provided by Intel’s SGX to address the needs of large populations of participants.

The second, Quorum Voting, is an adaptation of the Ripple and Stellar consensus protocols and serves to address the needs of applications that require immediate transaction finality.

The idea of Proof of Elapsed Time  acts much like Bitcoin's Proof of Work lottery consensus, but does not require nearly as much electricity expenditure.

Participants can either enter low power mode whilst TEE is generating PoET and save on costs, or perform other functions if part of a cloud compute environment.

One potential consequence of PoET versus Bitcoin's PoW is a shift from OPEX to CAPEX as an economic deterrent to Sybil and 51% attacks on a blockchain network.

Bitcoin's miners are primarily using dedicated ASIC chips to solve the cryptographic puzzle, which are much faster and cheaper than running CPUs to perform the same task, but they burn through a lot of electricity.

This means you can reduce your initial CAPEX outlay by using cheaper ASICs, but have high OPEX electricity costs. With PoET, you have to purchase more expensive CPUs but reduce electricity OPEX costs.

Capital expenditure, or CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. CapEx is often used to undertake new projects or investments by the firm.

An operating expense ( OPEX ) results from the ongoing costs a company pays to run its basic business.

Intel is the creator of the open source Hyperledger Sawtooth project, which enables blockchain usages for enterprise and other segments and is designed to run on the Intel Xeon platform.

While SGX technology is proprietary, the blockchain software that grew out of Intel’s  experiments is not, and has since been open-sourced as the Hyperledger Sawtooth code base.

Capt. Ajit VadakayilNovember 21, 2017 at 6:02 AM

SOMEBODY ASKED ME

WHAT IS A BANANA REPUBLIC? IS INDIA A BANANA REPUBLIC?

BANANA REPUBLIC IS A DERISIVE TERM GIVEN TO A NATION WHICH IS RULED BY WHITE JEWS FROM ABROAD USING THEIR PUPPET LEADERS.

INDIA IS A BANANA REPUBLIC--EVEN 70 YEARS AFTER INDEPENDENCE

EXAMPLE ?

I WILL GIVE JUST TWO AMONG THOUSANDS

AAA) BASAVA WAS A GOD CREATED AND BACKDATED BY JEW ROTHSCHILD

BEFORE THE WHITE INVADER CAME TO INDIA, NOBODY IN INDIA HEARD OF BASAVA.

VEERASHAIVA LINGAYATHS BURY THEIR DEAD TODAY. IF YOU GO TO THEIR BURIAL YARDS YOU CAN SEE SHIVALINGAM / NANDI / SHIVA STATUE -- WHICH IS NOT ALLOWED.

NOW THEIR FOREIGN FUNDED NGOs HAVE DRIVEN SUCH HARTED TO SANATANA DHARMA THAT THE POLIICIANS WANT TO SPLIT FROM HINDUISM.

THEY HAVE GIVEN PROPAGANDA AND PROPPED UP A FELLOW NAMED VEMANA .

TODAY WE HAVE STAMPS OF VEMANA AND UNIVERSITIES . IN THE TEXT BOOKS OF SCHOOL CHILDREN THEY HAVE INCUDED "VEDAS OF VEMANA"

WANNA READ IT?

I ASK MY READERS --YOU MUST READ IT-- ONLY THEN YOU WILL KNOW THE MEANING OF BANANA REPUBLIC--WHERE WERE ARE NO BETTER THAN MONKEYS HOLDING A BANANA.

SCROLL DOWN THIS POST --AND READ THE YELLOW RIBBON HIGHLIGHTED PARTS UNDER THE VEMANA STAMP.

http://ajitvadakayil.blogspot.in/2015/09/sanatana-dharma-hinduism-exhumed-and_30.html

WHAT IS ALL THIS ?

IS THIS FIT TO BE TAUGHT IN SCHOOL ?

ARE WE MAD ?

TELUGUS WENT ABROAD AS INDENTURED LABOUR ONLY BECAUSE OF A WHITE SKINNED BRITISH COLLECTOR NAMED CP BROWN-- WHO IS CONSIDERED AS A GOD IN TELUGU LAND . CP BROWN CREATED BASAVA FOLLOWERS , WHO WILL BURY THEIR DEAD.

CP BROWN DROVE TELUGUS AS SLAVES ABROAD BY DELIBERATE FAMINE HE CREATED IN TELUGU LAND

http://ajitvadakayil.blogspot.in/2010/04/indentured-coolie-slavery-reinvented.html

MODI RAN FASTER THAN USAIN BOLT TO INAUGURATE A STATUE OF BASAVA ON THE BANKS OF THE RIVER THAMES IN LONDON..

http://ajitvadakayil.blogspot.in/2015/04/cp-brown-and-yogi-vemana-capt-ajit.html


BBB ) MGR AND JAYALALITAA WERE STAUNCH HINDUS WHO WANTED TO BE CREMATED BUT BOTH WERE BURIED. MIND YOU THIS DUO WERE HEROES FOR TAMILS

MGR WAS MADE A PUPPET IN THE LAST YEARS OF HIS LIFE--HE WAS A VEGETABLE . DURING THIS PERIOD LTTE AND PRABHAKARAN BECAME CHRISTIAN .

http://ajitvadakayil.blogspot.in/2012/08/aidmk-dmk-misplaced-support-for-ltte.html

THE ENTIRE COASTAL BELT OF TAMIL NADU BECAME CHRISTIAN --AND THE MOTHER OF ALL SCAMS--THE THORIUM SCAM TOOK PLACE .

JAYALALITHA HAD PLUS SECURITY. SHE WAS ABANDONED IN A HOSPITAL--HER LEGS WERE CUT AS YOU CAN SEE IN THE VIDEO IN THE POST BELOW (YOU CANT MORPH IT ) .

PEOPLE IN POWER JUST PRETEND TO SLEEP . YOU TRY WAKING THEM UP

http://ajitvadakayil.blogspot.in/2017/09/inquiry-into-death-of-cm-of-tamil-nadu.html

THIS IS JUST TWO EXAMPLES AMONG MORE THAN A THOUSAND

AMERICAN ARE QUICK TO RIDICULE CENTRAL AND SOUTH AMERICAN NATIONS AS "BANANA REPUBLICS"

IN REALITY USA IS THE GREATEST BANANA REPUBLIC

ALL THEIR PRESIDENTS HAVE BEEN PUPPETS OF JEW ROTHSCHILD .

EXCEPT FOR ONE-- ANDREW JACKSON

THE FIRST US PRESIDENT GEORGE WASHINGTON WAS AN IMPOSTER . THE REAL MAN WAS MURDERED AND HIS PLACE TAKEN BY A GERMAN JEW NAMED ADAM WEISHAUPT

http://ajitvadakayil.blogspot.in/2010/12/dirty-secrets-of-boston-tea-party-capt.html

BANANA WAS UNITED FRUIT MAAL.

http://ajitvadakayil.blogspot.in/2012/09/will-india-be-banana-republic-walmart_18.html

HOW DID WE LOSE ALL OUR HUMPED BULLS ? ( WHITE REVOLUTION )

HOW DID WE LOSE 90% OF OUR LAKES IN 55 YEARS FLAT ? ( GREEN REVOLUTION )

HOW DID INDIANS BECOME GUINEA PIGS FOR KOSHER EVIL PHARMA ?

http://ajitvadakayil.blogspot.in/2016/03/say-no-to-hpv-vaccination-for-indian.html

HOW DID LAKHS OF SHELL COMPANIES COME TO INDIA?

NOW WE ARE SELLING OUR FINANCIAL SYSTEM -- TO KOSHER INTEL-- BY A "PROOF OF ELAPSED TIME" BLOCKCHAIN WHICH HAS NOT BEEN TESTED .

WE HAVE GUJJU NO 2 PRAYING TO GUJJU NO1 --AND RUNNING FASTER THAN USAIN BOLT ABROAD , TO INAUGURATE EVERY GANDHI STATUE MADE BY ROTHSCHILDs AGENTS .

WE WATCH

THIS BLOGSITE WILL WRITE LEGACIES --NOT ROTHSCHILDs MEDIA OR HISTORIANS

capt ajit vadakayil
..

Capt. Ajit VadakayilDecember 9, 2017 at 4:19 PM

SOMEONE ASKED ME--WHY DO YOU SAY THAT THE SUDDEN SURGE IN VALUE OF BITCOIN IS A CONJOB

WELL FOR THIS YOU MUST UNDERSTAND HOW A BITCOIN MINING / BLOCKCHAIN SYSTEM WORKS

YOU CANT HAVE BITCOIN JUMPING FROM 6500 USD ( WHEN I FIRST WROTE PART ONE OF THIS SERIES ) TO 17000 USD ( WHILE ON PART 14 OF THIS SERIES ) IN A VERY SHORT TIME JUST LIKE THAT

http://ajitvadakayil.blogspot.in/2017/11/blockchain-proof-of-elapsed-time-intel.html

Bitcoins grow in value when enough people possess them. This makes other people wanting Bitcoins-- making Bitcoins grow in value even more-- making even more people wanting Bitcoins-- making them grow in value even more-- and so on.

IGNORANT PEOPLE ARE DUMBFOUNDED AND DONT KNOW WHAT THE FUCK IS HAPPENING --THEY PRETEND TO KNOW THE SYSTEM--SO THAT THEY CAN SHINE IN FRONT OF OTHERS .

NOBODY DARES TO POINT OUT THE ELEPHANT IN THE ROOM. THEY DONT HAVE THE BALLS OR THE KNOWLEDGE

BLOCKCHAIN IS NO ROCKET SCIENCE-- EVEN CUNTS CAN UNDERSTAND IT

###########

LISTEN UP AND LISTEN GOOD

In todays systems we depend on individual third-parties to establish trust between ourselves.The problem is that they are singular in number and if a chaos has to be injected in the society, all it requires is ONE person/organization to go corrupt, intentionally or unintentionally.

Blockchain is a method to maintain that register among TWO parties cutting out the middleman.

The requirement of this method is that there must be enough people who would like not to depend on a third-party and only then these people can maintain the register on their own.

How many people is enough? Three at least. We will assume ten individuals want to give up on banks or any third-party for our example. They have details of each other’s accounts all the time upon mutual agreement, but they don’t know the other’s identity.

Everyone contains an empty folder with themselves to start with and all these ten individuals will keep adding pages to their currently empty folders. And the register that tracks the transactions will be formed from this collection of pages.

Everyone in the network sits with a pen and a blank page and in their hands and they are all ready to write any transaction that happens within the system.

For example, #2 wants to transfer $10 to #9.

To make the transaction, #2 shouts and tells everyone, “I want to send $10 to #9, so, everyone, please make a note of it on your pages.”

Everyone checks if #2 has enough balance to send $10 to #9 and everyone then makes a note of the transaction on their blank pages if she has enough balance.

We consider this transaction to be complete now.

More people in the network feel the need to transfer money to others as the time passes. Whenever they want to make a transaction, they announce it to everyone else and as soon as a person listens to the announcement, (s)he writes it on his/her page.

This exercise continues until everyone runs out of space on the current page and assuming a page has space to record ten transactions, everybody runs out of the space as soon as the tenth transaction is made.

It’s time to put the page away in the folder and bring out a new page. After that, repeat the process from the step 2 above.

We need to seal the page with a unique key that everyone in the network agrees upon before we put it away in our folders. By sealing it, we will make sure that no one can make any changes to it once its copies have been put away in everyone’s folder. Once in the folder, it will always stay in the folder — sealed, and moreover everyone trusts the contents of the page if everyone trusts the seal. The sealing of the page is the crux of this method.

It is called MINING on the page to secure it. However, we’ll keep calling it ‘sealing for the simplicity of it.

The middleman/third-party gave us the trust earlier that whatever they have written in the register will never be changed. This seal will provide the trust instead in a distributed and decentralized system like ours.

https://www.youtube.com/watch?v=MAgA43WEKwA



CONTINUED TO 2

1. 
   Capt. Ajit VadakayilDecember 9, 2017 at 4:22 PM

   CONTINUED FROM 1-
   
   Imagine a machine surrounded by thick walls and if you send a box with something inside it from the left, it will spit out a box containing something else.
   
   This machine is called ‘Hash Function,’
   
   Suppose, you send the number 4 inside it from the left. We’d find that it spat out the following word on its right: ‘dcbea.’
   
   No one knows how it converted the number 4 to this word, but it is an irreversible process. Given the word, ‘dcbea,’ it is impossible to tell what the machine was fed on the left, but the machine will always spit out the same word, ‘dcbea’ every time you’d feed the number 4 to it.
   
   Let’s try sending in a different number, for example 26.
   
   Interesting! This time we got ‘94c8e’, which means that the words can contain the numbers too.
   
   What if I ask you the following question now:
   
   „What should I send from the left side of the machine such to get a word that begins with three leading zeroes from the right side of it, e.g. 000fa, or 00098, or 000ab, anything among the others.“
   
   It was extremely difficult to calculate the input given the output, but at the same time, it will always be incredibly easy to verify if the predicted input yields the required output. The machine spits out the same word for a number every time.
   
   If I give you a number, say 72533, and ask you the question: „When you feed the number into the machine, does it yield a word that begins with three leading zeroes?” how difficult do you think the answer is?
   
   Just throw the number in the machine and see what did you get on the right side of it and that’s it.
   
   The most important property of such machines is that — “Given an output, it is extremely difficult to calculate the input. However, given the input and the output, it is pretty simple to verify if the input leads to the output.”
   
   How to Seal a Page Using These Machines?
   
   We’ll use this magic machine to generate a seal for our page and we’ll start with an imaginary situation, like always.
   
   Imagine you get two boxes from me and the first box contains the number 20893. After that, I ask you: „Can you calculate a number that, when added to the number in the first box and fed to the machine, will give us a word that begins with three leading zeroes?”
   
   This is a similar situation as we had previously. We have learned that by trying every number available in the whole universe is the only way to figure out such a number.
   
   We’ll stumble upon a number, say 21191, after several thousand attempts. This number, when added to 20893 (i.e. 21191 + 20893 = 42084) and fed to the machine, will yield a word that satisfies our requirements.
   
   This number, 21191 becomes the seal for the number 20893 in such a case. Suppose there is a page that contains the number 20893 written on it. We will put a badge labelled ‘21191’ on top of it to seal that page (i.e. no one can change the contents of it). The page is sealed once the sealing number (i.e. 21191) is stuck on it.
   
   The sealing number is called ‘Proof Of Work.’ This means that this number is the proof that efforts had been made to calculate it. But for our purposes, we are good with calling it ‘sealing number.’
   
   All that you need to do to verify whether the page was altered is to add the contents of the page with the sealing number and feed to the magic machine. The contents were untouched if the machine gives out a word with three leading zeroes. We can throw away the page if the word that comes out doesn’t meet our requirements because its contents were compromised, and are of no use.
   
   We’ll seal all our pages using a similar sealing mechanism and eventually arrange them in our respective folders.
   
   We’ll need to figure out a number that when appended to the list of transactions and fed to the machine, we get a word that begins with three leading zeroes on the right to seal our page that contains the transactions of the network.
   
   CONTINUED TO 3

   
   
2. 
   Capt. Ajit VadakayilDecember 9, 2017 at 4:23 PM

   CONTINUED FROM 2-
   
   Note: The phrase ‘word starting with three leading zeroes’ is used only as an example. It illustrates how Hashing Functions work, but the real challenges are much more complicated than this.
   
   Once that number is figured out after spending time and electricity on the machine, the page is sealed with that number. The sealing number will allow anyone to verify the integrity of the page if someone tries to change the contents of the page.
   
   Now it’s time to go back to the time when we had finished writing the tenth transaction on the page, and we ran out of space to write more.
   
   As soon as everyone runs out of the page to write further transactions, everyone in the network indulge in calculating the sealing number for the page so that it can be tucked away in the folder and the first one in the network to figure out the sealing number announces it to everyone else.
   
   Instantly, on hearing the sealing number, everyone verifies if it yields the required output or not and, if it does, everyone labels their pages with this number and put it away in their folders.
   
   But what if the sealing number that was announced doesn’t yield the required output for someone, say #7. Such cases are not unusual and the possible reasons for this could be:
   
   The transactions that were announced in the network might have been miswritten.
   The transactions that were announced in the network might have been misheard.
   When writing transactions he might have tried to cheat or be dishonest, either to favor himself or someone else in the network.
   #7 has only one choice — to discard his page and copy it from someone else so that he too can put it in the folder. He cannot continue writing further transactions unless he doesn’t put his page in the folder. This means that he is no longer part of the network.
   
   Then why not sit idle and wait for the announcement and why does everyone spend resources doing the calculation when they know that someone else will calculate and announce it to them?
   
   Interesting question because this is where the incentives come in the picture. Everyone who is the part of the Blockchain is eligible for rewards and the first one to calculate the sealing number gets rewarded with free money for his efforts (i.e. expended CPU power and electricity).
   
   Simply imagine, #5 gets rewarded with some free money, say $1 if he calculates the sealing number of a page. The money gets minted out of thin air, which means the account balance of #5 gets incremented with $1 without decreasing anyone else’s account balance.
   
   That’s how Bitcoin got into existence, because it was the first currency to be transacted on a Blockchain. And in return, people were awarded Bitcoins to keep the efforts going on in the network.
   
   capt ajit vadakayil
   ..

Capt. Ajit VadakayilNovember 17, 2017 at 12:18 PM

SOMEBODY ASKED ME –

IF EGYPTIAN QUEENS NEFERTARI, NEFERTITI AND HATSHEPUT ARE FROM PUNT ( MALABAR KERALA) — WHAT ABOUT CLEOPATRA --- WAS SHE ALSO FROM KERALA ( IN A SACRACSTIC MANNER )

INDEED

AND THIS WILL RAISE MY REVELATIONS TO 51.90 %

LISTEN CLEOPATRAs BABY CAESARION WAS DELIVERED IN ROME BY A SURGERY EXPERT SENT BY THE CALICUT KING ..

THIS SURGEON WAS KEPT IN THE ROMAN PALACE WELL IN ADVANCE BY JULIUS CAESAR AS AN ASTROLOGER HAD PREDICTED THAT CLEOPATRA WOULD DEVELOP COMPLICATIONS .

Vaginal delivery failed and emergency surgery was carried out. The child would have epilepsy later –like his father Julius Caeser.

IT IS A LIE THAT THE PLANETs FIRST CAESAREAN DELIVERY WAS DONE IN ROME.

THE 6200 YEAR OLD TEXTS OF SUSRUTA ELUCIDATE SUCH CHILD DELIVERIES BY SURGERY

http://ajitvadakayil.blogspot.in/2011/02/fathers-of-surgery-and-medicine-4200-bc.html

MUZIRIS PORT IS KODUNGALLUR ( CRANGANORE ) AND WAS OWNED BY THE CALICUT KING

MUZIRIS HAD EXTENSIVE SPICE SHIPPING TRADE WITH THE RED SEA EGYPTIAN PORT OF BERENICE ( BERENIKE ). THE WHITE HISTORIAN HAS THE “MUZIRIS PAPYRUS SCROLL” .

The Murziris Papyrus tells that a Customs due of 25%, was levied by the King of Calicut on spices imported via Berinice and other Red Sea harbors. The Calicut king has similar customs tax collection/ free trade outposts in Salalah, Mecca, Petra, Madein Saleh, Palmyra( Tadmor ) , Jerusalem, etc

The main camel overland route for spices was from Palmyra in Syria to Mesopotamia, the Parthian Empire and beyond. A secondary, more northerly overland route branched off from the first and connected Armenia to the western segment of the Silk Road leading to Central Asia. A southern overland route led from Gaza on the Mediterranean, through the Nabataean Kingdom, with Petra at its hub, into Arabia. It served the spice, incense and aromatics trade into the Roman Empire and Constantinople ( by ships )

http://ajitvadakayil.blogspot.in/2017/05/land-of-punt-ophir-and-sheba-is-north.html

JULIUS CAESAR WAS A HINDU AND SO WERE ALL ROMAN SENATORS ( SORRY ITALIAN WAITRESS ).

CLEOPATRA VII WAS FROM THE LAND OF PUNT ( MALABAR )
JULIUS CAESARS PERSONAL SWORD WAS FOUND IN KODUNGALLUR AND THE WHITE INVADER TOOK IT AWAY. BUT WE HAVE FOUND HUNDREDS OF GOLD COINS WITH JULIUS CEASARS FACE AND INSCRIPTION ON IT .

CLEOPATRAs SON CAESARION WAS SENT TO BERNICE PORT AS SOON AS CLEOPATRA KNEW THAT JULIUS CAESARs ADOPTED SON OCTAVIAN WOULD COME TO EGYPT TO KILL HER SON

AS SOON AS OCTAVIAN INVADED EGYPT SON CAESARION ( 15 YEARS OF AGE ) WAS SENT BY SHIP TO MUZIRIS, TO THE CALICUT KING FOR SAFETY , WITH LOT OF GOLD FOR HIS SAFE UPKEEP IN LUXURY

JULIUS CAESARS ONLY SON WAS CHRISTENED AS PTOLEMY XV PHILOPATOR PHILOMETOR CAESAR ON BIRTH. HE WAS EIGIBLE TO RULE BOTH ROMAN EMPIRE AND EGYPT . SUCH WAS HIS ROYAL LINEAGE.

Caesarion ( little Caesar ) born at Rome in 47 BC was the last Pharaoh of the Ptolemaic dynasty. He was NOT killed by Octavian as history suggests .

Julius Caesar was murdered in 44 BC. Cleopatra committed suicide in 30 BC before Octavian ( later Augustus Caesar ) could kill her.

Augustus was Roman emperor from 27 BC until his death in AD 14.. Julius Caesar was his maternal great-uncle .

Octavian was named in Caesar's will as his adopted son and heir.

Mark Antony had charged that Octavian had earned his adoption by Caesar through sexual favours

Octavian , Mark Antony, and Marcus Lepidus formed the Second Triumvirate to defeat the assassins of Caesar.

Following their victory at the Battle of Philippi, the Triumvirate divided the Roman Republic among themselves and ruled as military dictators. The Triumvirate was eventually torn apart by the competing ambitions of its members.

Lepidus was forced into retirement by Octavian in 36 BC. Octavian and Mark Antony were then left in control of the Western and Eastern provinces respectively.

Mark Antony committed suicide following his defeat at the Battle of Actium by Octavian in 31 BC.

CONTINUED TO 2-

1. 
   Capt. Ajit VadakayilNovember 17, 2017 at 12:19 PM

   CONTINUED FROM 1-
   
   After Julius Caesar’s death, Cleopatra needed to maintain a close relationship with Marcus Antonius ( Mark Antony ) because he controlled the eastern Roman Empire, her geographical neighbor.
   
   Cleopatra had twins, Alexander Helios and Cleopatra Selene, as well as another son, Ptolemy Philadelphos, all by Marcus Antonius.
   Cleopatra lived in Rome with Julius Caesar from 47 BC to 44 BC.
   
   Caesar was assassinated in Rome in 44BCE. Cleopatra took her son back to Egypt and they began to rule there as co-rulers. It was known that while Cleopatra wanted her son to rule the country with her she did not give up any of her authority. This was not surprising since the boy was only three years of age when he was proclaimed King of Egypt.
   
   After Cleopatra commited suicide , Octavian then declared himself ruler of Egypt, and went on to become the first Roman emperor, under the name of Augustus.
   
   After Octavian’s death Cleopatra’s son went back from Calicut to Egypt as a commoner.
   
   Few images of Caesarion survive. He is thought to be depicted in a partial statue found in the harbor of Alexandria in 1997. He is also portrayed twice in relief, as an adult pharaoh, with his mother on the Temple of Hathor at Dendera. His infant image appears on some bronze coins of Cleopatra.
   
   PLUTARCH HAS WRITTEN THAT CAESARION WAS SENT TO INDIA.
   
   BECAUSE OF PLUTARCH ( 46 AD TO 120 AD ) WE KNOW OF APOLLONIUS OF TYANA ON WHOM JESUS CHRIST ( WHO NEVER EXISTED ) WAS MODELLED AFTER
   
   http://ajitvadakayil.blogspot.in/2016/10/the-huge-statue-of-colossus-of-rome-at.html
   
   Caesarion was born in Egypt on June 23, 47 BC.. Caesarion has his father’s eyes , hair and manners ( including epilepsy )
   
   After Caesar's assassination on March 15, 44 BC, Cleopatra and Caesarion returned to Egypt. Caesarion was named co-ruler by his mother on September 2, 44 BC at the age of three, although he was pharaoh in name only, with Cleopatra keeping actual authority all to herself.
   
   Cleopatra compared her relationship to her son with the Egyptian goddess Isis and her divine child Horus
   
   
   We have this in our records “ Prime Minister Chanakya was concerned that Chandragupta might be poisoned by his enemies, so started introducing small amounts of poison into the emperor’s food in order to build up a tolerance. Chandragupta was unaware of this plan, and shared some of his food with his wife Durdhara when she was very pregnant with their first son. Durdhara died, but Chanakya the professor of Surgery at Taxila university rushed in and performed an emergency operation to remove the full-term baby. The infant Bindusara survived, but a bit of his mother’s poisoned blood touched his forehead, leaving a blue bindu spot that inspired his name”.
   I wonder why we attribute Caesarian births to a Roman king —for he came more than 2 centuries later .
   
   http://ajitvadakayil.blogspot.in/2014/08/chanakya-taxila-university-professor.html
   
   WELL WELL- WHAT DO YOU KNOW
   
   Read all 4 parts --
   http://ajitvadakayil.blogspot.in/2016/04/apollonius-or-jesus-christ-who-is-real.html
   
   Capt ajit vadakayil
   ..

Capt. Ajit VadakayilNovember 15, 2017 at 8:28 PM

The most famous Egyptian queen was Nefertari , principal wife of King Ramses II.

She is the most celebrated and widely depicted among the 4 famous Egyptians queens - Cleopatra, Nefertiti, and Hatshepsut.

Nefertari was born in the Land of Punt ( North Kerala –where I am from ). 

http://ajitvadakayil.blogspot.in/2017/05/land-of-punt-ophir-and-sheba-is-north.html

 I have seen several depictions of Nefertari burning incense ( from Punt ) in alabaster bowls—which is nothing but a BHARANI from Calicut.   

Nefertari appears as Ramesses II’s consort on many statues in both Luxor and Karnak..   Nefertari is depicted in statue form at the great temple, in Abu Simbel..

The small temple at Abu Simbel was dedicated to Nefertari and Goddess Hathor.. The dedication text on one of the buttresses states :  ‘’ A temple of great and Mighty monuments, for the Great Royal Wife Nefertari Meryetmut, for whose sake the very sun does shine, given life and beloved”

The two colossal standing statues of Nefertari in front of the small temple are equal in size to those of Ramesses II.   I have seen this and the pyramids / sphinx of Giza.

After Nefertari’s death she was buried in tomb QV66 in the Valley of the Queens.

Below Goddess Hathor giving the Aankh to Nefertari

http://ajitvadakayil.blogspot.in/2011/08/imhotep-patron-saint-of-freemasons-capt.html

https://www.youtube.com/watch?v=RG7DJM9MIAE

Queen Nefertiti was the chief wife of  of Pharaoh Akhenaten

Nefertiti had many titles including Lady of two lands Punt and Egypt..

Queen Nefertiti ruled Egypt when her  husband Pharaoh Akhentaten was in ill health for a few years before he died. She is remembered as a wise ruler.

After Akhentaten died the people wanted her to continue .. Nefertiti, like  female Pharaoh Hatshepsut, assumed the kingship under the name Pharaoh Neferneferuaten after her husband's death.

https://www.youtube.com/watch?v=-1GULSVk5dc

capt ajit vadakayil

..

Capt. Ajit VadakayilNovember 17, 2017 at 10:14 AM

PRECURSOR CHEMICALS TO PRODUCE SYNTHETIC FENTANYL IN MEXICO COMES FROM CHINA 100%..

US DEA RECKONS THE COST TO PRODUCE ONE KILO OF FENTANLY IS JUST 32,00 USD. BUT THE PROFITS ARE HUNDRED FOLD..

IN SYRIA CARFENTANIL ( A MOST POTENT FORM OF FENTANYL --100 TIMES MORE ) WAS GIVEN TO ISIS MERCENARIES WHICH MADE THEM VERY BRAVE AND THEY SUFFERED NO PAIN WHEN WOUNDED ..

CARFETNAYL IS 10,000 TIMES MORE POTENT THAN MORPHINE..REPEAT 10,000 TIMES..

WHEN I WAS A SECOND OFFICER IN SCI ( MEDICAL OFFICER ) , AND MY SHIP WENT TO AUSTRALIA-- WE USED TO DO ONE MONTH COASTING -- YOUNG TEENAGER SCHOOL GIRLS USED TO COME ON BOARD AND OFFER ANY SEXUAL SERVICE FOR MORPHINE INJECTIONS ..

THESE GIRLS KNEW THAT IN SCI WE COULD ORDER ANY AMOUNT OF MORPHINE AND GET IT -- FOR THE MEDICINE CABINET..

LATER ( AFTER TWO DECADES ) IT WAS BANNED AS MORPHINE IS HIGHLY ADDICTIVE..

Carfentanil was not a controlled substance in China until March 1, 2017 which was openly sold on internet. After March 2017, the sales went to the DARK WEB..

PUNJAB GETS CARFENTANIL BY PIGEONS FROM KHALISTANIS ... PUNJAB ELECTIONS ARE INFLUENCED BY CARFENTANYL -YOU JUST NEED TO APPLY PATCHES ON BODY LIKE BAND AID OR SALONPAS…

In Canada they caught a shipment containing 50 million lethal doses of Carfentanil --they estimated was enough to exterminate the entire population of Canada-- came inside toner cartridges for Hewlett-Packard LaserJet printers..

USA is looking south , and Trump is building walls at Mexico border --and here was drugs a 1000 times more potent than Meth , coming from the north…

ALL OVERDOSE DEATHS IN USA ARE NOW FROM FENTANLY AND CARFENTANIL..

HOW DID KACHRAWAAL GET 4 LOK SABHA SEATS IN 2014. ..

I HAVE ASKED THIS QUESTION AT LEAST 20 TIMES IN MY COMMENTS SECTION FOR THREE YEARS -- NOBODY GAVE ME THE ANSWER. THE ANSWER IS CARFENTANIL WHIC CAME VIA PIGEONS FROM PAKISTAN…

IF PAKISTAN HAS SUCH LARGE QUANTITIES OF CARFENTANYL WHICH REACHED BY OBOR ROAD --IT CAN BE USED TO KNOCK UNCONSCIOUS OUR ENTIRE INDIAN SOLDIERS ( NERVE ATTACK ) AT THE BORDER BY DRONE SPRAY…

NO MATTER HOW MUCH WE RIDICULE PAPPU--IT WAS HE WHO FIRST HIGHLIGHTED THE DRUG PROBLEM IN PUNJAB---WHICH HAD ALL IN CAHOOTS-- JUDICIARY, POLICE , POLITICIANS, MEDIA --THE LOT …

WHEN SOMNATH BHARATI TRIED TO DO URINE TEST OF SOME NIGERIAN SEX AND DRUG MOLLS --WE ALL KNOW NCW "SUMMONED HIM " AND DEMANDED AN "APOLOGY"..

WE NEED TO TRAIN OUR DRUG ENFORCEMENT SQUAD IN URINE TESTING LATEST COMPUTERISED / ELECTRONIC METHODS…

WHEN I COMMANDED A CHEMICAL TANKER FLAGGED IN KINGSTON ( CREW JAMAICAN ) -- THE US DEA CAME WITH ELECTRONIC SNIFFERS IN USA -BEFORE THEY LEFT THEY TOLD ME-- WE HAVE SNIFFED DRUGS ( THEY TOLD ME THE VARIETY ) BUT WE CANT GET IT. AND THEY TOLD ME THE CREW CABINS .

THERE WAS A TIME WHEN MY SHIP WAS STOPPED MID SEA--WE WERE BOARDED BY US NAVY IN THE CARIBBEAN --WE WERE ALL MUSTERED ON THE BRIDGE FOR TWO HOURS LIKE SHEEP ( MIDNIGHT ) AND THEY SEARCHED THE SHIP AND ALSO UNDERWATER UNDER THE PROPELLER USING DIVERS ..

THERE WAS A STANDOFF AS THE MARINES BROUGHT GUNS ON BOARD AND I AS A CAPTAIN SAID NO-- AS MY CARGO OF CHEMICAL WAS HIGHLY FLAMMABLE . ..

THEN WE AGREED TO JUST ONE MACHINE GUN ON THE BRIDGE AND ONE WITH THE ROVING SQUAD.. THEY EVEN THREATENED TO GET MY VISA CANCELLED …

THERE WAS A FAST RUBBER DINGHY FOLLOWING 300 METRES BEHIND THE SHIP--JUST IN CASE SOMEONE JUMPED OVERBOARD…

SO I KNOW-- I AM NOT A BLIND IDIOT LIKE OUR INDIAN DEA. ..

WHEN INDIAN SOLDIERS DISPLAY CAPTURED ITEMS FROM KASHMIRI MILITANTS --THEY SHOW GUNS , BULLETS AND MEDICINES ( HAJMOLA? --VICKS 500?, -- ASPIRIN?-- STUPID DUFFERS ) ..

ISIS FIGHTERS FROM SYRIA ARE NOW INSIDE KASHMIR. THEY GET GOOD MONEY ..

PAKISTAN CAN DEFEAT INDIA - IF WE REMAIN "ALICE IN WONDERLAND " IN A FIGHT WITHOUT SHEDDING BLOOD

capt ajit vadakayil
..

Capt. Ajit VadakayilNovember 17, 2017 at 10:15 AM

PUT THIS COMMENT IN CAPT AMARINDER SINGH , PMO, PM MODI, DEFENCE MINISTER, AJIT DOVAL, ALL THREE ARMED FORCES CHIEFS, CJI, LAW MINISTER, HOME MINISTER , SUPREME COURT BAR COUNCIL, FINANCE MINISTER .

ASK FOR AN ACK


capt ajit vadakayil
..

Capt. Ajit VadakayilNovember 15, 2017 at 8:38 PM

SOMEBODY CALLED ME AND EXPOSTULATED

HOW CAN YOU SAY SAGES FROM KERALA BUILT PYRAMIDS

MILLIONS OF PEOPLE HAVE WRITTEN BILLIONS OF WORDS ABOUT PYRAMIDS.

ONLY ONE SOUL NAMED CAPT AJIT VADAKAYIL WROTE THAT PYRAMIDS WERE BUILT USING WATER FLOTATION POWER --LIKE SHIPS IN PANAMA CANAL

THIS IS ON RECORD.

NOBODY CAN TAKE THIS WAY

SAME WAY-- YOU EITHER KNOW VAASTU OR YOU DONT KNOW IT ( IT IS LIKE THE CARD GAME BRIDGE )

SWAMI VIVEKANANDA VISITED PYRAMIDS AND WROTE -- HINDU SAGES BUILT THE PYRAMIDS -- AS HE KNEW VAASTU

HOW MANY CUNT WHITE MEN HAVE WRITTEN THAT THE GREAT PYRAMID OF GIZA HAS 8 SIDES ?

http://ajitvadakayil.blogspot.in/2016/10/eight-sided-pyramid-of-giza-egypt.html


http://ajitvadakayil.blogspot.in/2017/05/land-of-punt-ophir-and-sheba-is-north.html
capt ajit vadakayil
..

WHEN BASTARD ISLAMIC PAINTER MF HUSSAIN SHOWED SITA HAPPILY PREENING HER HAIR SITTING NAKED ON RAVANAs LAP AFTER ILLICIT SEX,    THE COLLEGIUM JUDICIARY CRIED    “ VERY GOOD.   GREAT ARTISTIC FREEDOM”

WE KNOW THESE BASTARD DROHI JUDGES  ..  THEY HAVE RETIRED...

HINDUS HAVE WOKEN UP

RAJPUTS WILL DEFEND THEIR HONOUR

JUST WHO THE HELL IS THE FELLOW SANJAY LEELA BHANSALI—   A MAN WITHOUT WIFE AND CHILDREN AT THE AGE OF 55  ? . 

HIS SERVANTS HAVE BLOWN THE WHISTLE.     WE KNOW WHO HE IS.   

WE KNOW THE SEXUAL PREFERENCES OF MF HUSSAIN TOO.

Below:  DROHI woman ( who looks like a man in a sari ) immediately called MF Hussain an ANGEL --  this KALANK celebrates when Bharatmata bleeds and is one of the most hated women in India.

Capt. Ajit VadakayilNovember 17, 2017 at 1:32 PM

https://www.gadgetsnow.com/tech-news/facebook-google-join-the-trust-project-to-fight-fake-news/articleshow/61682619.cms?utm_source=toiweb&utm_medium=referral&utm_campaign=toiweb_hptopnews

WE WILL NOT PERMIT GOOGLE AND FACEBOOK TO CENSOR TRUTHS..

WE KNOW THAT INDIAs I&B MINISTERS HAVE TO BE APPROVED BY WHITE JEWS ( ROTHSCHILDS COMMIE KOSHER AGENTS ) WHO STILL CONTROL INDIA ..

IT TOOK A BLOGGER TO DECLARE THAT JEW ROTHSCHILD RULED INDIA --NOT THE QUEEN OR THE BRITISH PARLIAMENT..

PUT ABOVE COMMENT IN PMO, PM MODI,SMRITI IRANI, VENKAIH NAIDU, ARUN JAITLEY, CJI, LAW MINSITER , EDUCATION MINISTER, SWAMY , GURUMURTHYS, SUSHMA SWARAJS WEBESITES

Capt. Ajit Vadakayil

December 10, 2017 at 6:28 AM

SOMEONE ASKED ME TO EXPOUND HOW JEWS STEAL INTELLECTUAL RIGHTS AT US COLLEGES-- ESPECIALLY JEW ROTHSCHILDs OPIUM DRUG FOUNDED IVY LEAGUE UNIVERSITIES

LIKE HOW MARK ZUCKERBERG STOLE THE FACEBOOK IDEA FROM INDIAN GENIUS DIVYA NARENDRA AT HARVARD UNIVERISTY

THERE ARE JEW PROFESSORS IN SUCH UNIVERSITIES WHO ARE EMPLOYED BY THE COLLEGE KOSHER BOARD TO STEAL FROM NON-JEWS AND GIVE IT TO JEW STUDENTS

HERE IS A SIMPLE CASE BELOW-- WHEN A GENIUS IIT INDIAN STUDENT MAINAK SARKAR KILLED HIS JEW PROFESSOR WILLIAM KLUG FOR STEALING HIS INTELLECTUAL RIGHTS AND PASSING IT ON TO ANOTHER JEW STUDENT.

https://timesofindia.indiatimes.com/world/us/IIT-Kharagpur-alumnus-kills-US-professor-at-UCLA-over-academic-spat/articleshow/52559222.cms

MOST INDIANS ARE PASSIVE --THEY SUCCUMB TO THREATS FROM JEW PROFESSORS --AND THEY KEEP QUIET HAPPY-- GLAD NOT BE TO DISMISSED FROM THE COLLEGE AND SEND BACK TO INDIA IN DISGRACE AS A THIEF OR DUFFER NO GOODER .

THIS IS WHAT HAPPENED TO KERALA STUDENT ECG SUDARSHAN .

HIS WORK WAS GIVEN AWAY TO JEWS WHO WRANGLED NOBEL PRIZE -- ONE OF THEM A PAKISTANI CRYPTO JEW AHMEDDIYYA MUSLIM ADBUS SALAM.

http://ajitvadakayil.blogspot.in/2013/08/dr-ecg-sudarshan-denied-nobel-prize-for.html

WHEN PM MODI WENT TO ISRAEL--STANDING AT THE END OF THE RECEPTION LINE WAS THE HEAD OF AHMEDDIYA SECT IN ISRAEL--PERSONALLY INTRODUCED TO MODI BY BENJAMIN NETANYAHU.

I TOLD MY WIFE , WE WERE WATCHING LIVE -- THEY HAS TO BE AN AHMEDIYYA JEW PRETENDING TO BE A MUSLIM. SHE WAS VERY HAPPY WHEN I WAS VINDICATED

IN THE CASE OF GENIUS DIVYA NARENDRA , HIS SLEEING PARTNERS THE VINKLEVOSS TWINS HAD THE WHEREWITHAL TO SUE JEW MARK ZUCKERBERG --AND THEY CATAPULTED THEMSELVES TO FAME --USING A HOLLYWOOD MOVIE.

WHAT IS A SLEEPING PARTNER ?

AT CORNELL ONCE A KOREAN UNDERGRADUATE BOY TEAMED UP WITH MY ELDER SON ( MASTERS ) FOR A PROJECT IN COMPUTER SCIENCE

THEY DECIDED ON WHAT THEY WOULD DO.

THE KOREAN BOY THEN WROTE THE ENTIRE CODE "LIKE HOW HE WOULD WRITE A LETTER TO HIS FRIEND"-- THIS WAS WHAT MY SON TOLD ME AND MY WIFE ON SKYPE.

AT FREQUENT INTERVALS HE WOULD CRAVE THE INDULGENCE OF MY SON—IMPLORING "SIR, AM I RIGHT"

MY SON WAS SO EMBARRASSED -- THE KOREAN DID THE WHOLE PROJECT IN ONE FLOWING SHOT -- LITERALLY THANKFUL WHEN MY SON SAID-- " YES , CONTINUE" TO HIS " SIR- AM I RIGHT SO FAR ? "

WHEN THE CODE WAS WRITTEN AND TESTED -- MY ELDER SON TOLD HIM    "SO FAR YOU HAVE DONE EVERYTHING   -- I WILL WRITE THE FINAL PROJECT REPORT "

SO MY SON WROTE THE CODE PRESENTATION OVERNIGHT AND SHOWED IT TO THE KOREAN BOY THE NEXT DAY -- HE LOOKED ON MY SON AS AN ABSOLUTE HERO -- STARS IN HIS EYES AND CRIED " WOW— I COULD HAVE NEVER DONE THIS , SIR"

MY SON WAS A SLEEPING PARTNER IN THIS PROJECT. HE WAS HONEST TO ADMIT IT .

MY SON INSISTED AND WROTE THE KOREAN BOYs NAME FIRST FOLLOWED BY HIS NAME-- THROUGH COLLEGE RULES REQUIRED THE MASTERs STUDENTS NAME FIRST AND THEN THE UNDERGRADUATE STUDENTs NAME

JEW ALBERT EINSTEIN WAS A MEDIOCRE BRAIN—HE WAS ABSOLUTE DISGRACE IN MATH—EINSTEIN DID NOT HAVE A MATHEMATICAL BRAIN-- HE OUTSOURCED ALL HIS MATH..

ALL HIS AWARD WINNING IDEAS OF EINSTEIN IS STOLEN FROM FROM VEDAS AND SECONDARY ONES -- STOLEN FROM AN INTELLECTUAL PATENT POOL OF WHICH HE WAS CLEVERLY PLACED AS THE GUARDIAN CLERK BY JEW ROTHSCHILD

SRINIVASAN RAMANUJAN THE INDIAN MATH GENIUS --LOST HIS DIARY, IN WHICH HE HAD RECORDED ALL HIS PRICELESS FINDINGS . THE JEW BASTARDS STOLE IT. AFTER THAT RAMANUJAN USED TO DO HIS WORK ON A SLATE , RUB IT OFF AND RETAIN RESULTS INSIDE HIS HEAD

SRINIVASAN RAMANUJAN WAS POISONED –

HIS YOUNG WIFE STARTED CRYING BITTERLY ( SHE WAS NOT THE CRYING TYPE ) AS SOON AS THE PYRE WAS LIT AND FEL INTO A FAINT -- WHEN WELL WISHERS PRESSED HER, SHE REVEALED THE TRUTH ABOUT THE "LOST DIARY"..

CONTINUED TO 2-

CONTINUED FROM 1-

EVERY TIME RAMANUJAN MADE A BREAK THROUGH DISCOVERY IN MATH , AFTER TWO WEEKS A WHITE JEW PROFESSOR WOULD COME AND ASK HIM "SRINIVASAN , DO YOU KNOW THIS JEW MATH NERD FROM POLAND --BECAUSE HE FOUND OUT THE SAME THREE WEEKS BEFORE YOU DID "

http://ajitvadakayil.blogspot.in/2011/11/fractal-mind-of-srinivasa-ramanujan.html

IN THE COMPUTER INDUSTRY MAXIMUM STARTUPS ARE BY WHITE JEWS..

NONE OF THESE ARE THEIR OWN IDEAS . IDEAS AND THE WHOLE SOLVED PROJECT IS GIVEN TO THEM .. THE WHOLE IDEA IS TO PROVE TO THE WORLD “ WE JEWS HAVE THE BEST BRAINS “

WHEN THE JEW STUDENT CREATES A STARTUP, ONE JEW MONEYBAG WOULD BUY THE STARTUP FOR A FEW MILLION DOLLARS

WHAT I WRITE IN MY BLOG POSTS IS STOLEN LEFT RIGHT AND CENTRE.

ONE WEE EXAMPLE?

THE "HAMZA RIVER" SHOULD REALLY BE "VADAKAYIL RIVER"

HAMZA IS A MUSLIM FROM CALICUT --WHO DISCOVERED (SIC) THE UNDERGROUND COMPONENT OF AMAZON RIVER

DID HE HAVE THE WHEREWITHAL ? 100%--- NO NO NO.

DID CAPT AJIT VADAKAYIL WHO FOUND THIS SEVERAL YEARS BEFORE HIM HAVE THE WHEREWITHAL? 100% ---YES YES YES

I STOPPED MY SHIP 200 MILES OFF THE AMAZON RIVER MOUTH IN THE SALTY OCEAN-- TOOK A BUCKET MYSELF AND DREW UP UPWELLING MUDDY WATER FROM MIDST OF A CLEAR BLUE OCEAN.

MY WHOLE CREW WAS WATCHING -- AS I TASTED THE WATER I TOLD THEM "THIS IS THE EXACT WAY MAGELLAN FOUND OUT ABOUT THE MIGHTY RIO DE LA PLATA ( RIVER ) AT NIGHT. HE PERSONALLY DREW A BUCKET OF WATER AND TASTED IT - AND FOUND WATER TO BE SWEET"

http://ajitvadakayil.blogspot.in/2009/07/amazon-navigation-capt-ajit-vadakayil.html

LET ANY OF THESE GENIUS JEWS AGREE TO A SIMPLE IQ TEST --LIVE --ON INDIAN TV--WHERE I WILL PIT THEM AGAINST A 15 YEAR OLD CHAIWALLAH BOY FROM MUMBAI OR CALCUTTA -- I WILL SHOW THEM WATER THEIR KOSHER BRAINS ARE WORTH

IN OPEN COMPETITION A JEW IN NOWHERE --AS LONG AS THE QUESTION PAPER IS SET BY A NON-JEW AND THE ANSWER SHEET IS CORRECTED BY A NON-JEW

BUT HEY, JEWS MONOPOLIZE ALL NOBEL PRIZES--LIKE HOW THEY MONOPOLIZE HOLLYWOOD ROLES WITH THEIR WEIRD TYPE KOSHER LOOKS

https://www.youtube.com/watch?v=lN17c2v2Vgk

ALL HOLLYWOOD ACTORS WERE AFRAID TO SUPPORT DONALD TRUMP--AS ROTHSCHILD WANTED HILLARY CLINTON TO BE PRESIDENT.

THE BRIEFCASE OF JC BOSE WAS STOLEN AT HIS HOTEL BY JEW MARCONI

http://ajitvadakayil.blogspot.in/2011/11/jagadish-chandra-bose-nobel-prize-and.html

THOUGH YELLAPRAGADAs WORK WAS STOLEN --HE WAS HAPPY NOT TO BE DEPORTED TO INDIA IN DISGRACE

http://ajitvadakayil.blogspot.in/2014/08/yellapragada-subbarow-nobel-prize-and.html

WE ASK MODI-- SHUT DOWN THE SOCIAL SCIENCES AND LANGUAGE DEPTS OF JNU . THIS UNIVERSITY HAS PRODUCED TOO MANY UNWASHED UNCOUTH TRAITORS .

http://ajitvadakayil.blogspot.in/2010/11/my-son-at-cornell-university-capt-ajit_25.html

capt ajit vadakayil

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THIS POST IS NOW CONTINUED TO PART 14, BELOW

http://ajitvadakayil.blogspot.in/2017/11/blockchain-proof-of-elapsed-time-intel.html

CAPT AJIT VADAKAYIL
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