Silk Road was shut down and the FBI has arrested the man who runs and created the most sophisticated online drug bazaar to date. Ross William Ulbricht was arrested on Tuesday afternoon charging him with drug trafficking, money laundering and computer hacking, according to CNN Money on Oct. 2.
Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.
JK: I said I wouldn’t get back into it unless we had the technical side taken care of, the legal side and the money behind it. We hired 7 lawyers to take care of the legal side, and convinced Miron Cuperman who worked on PCI compliance at Google, to join as the CTO. He was a really big fan of bitcoin superstar schweiz and he’s working for us full time now, he’s pretty awesome. Having him really convinced me it was worth doing. We also raised 400, 000 in seed money and right now most of us are not taking a salary, so we’re working really hard on it.
While the transactions are public the transactions themselves are psudeononymous. Many people who are concerned about privacy like to use Bitcoins for this reason.
This wasn’t an easy feat for the FBI, as the website was setup as a “tumbler.” This is a system that is complex and used countless dummy transactions to digitally conceal where the money was coming from. The website used bitcoins in lieu of money, which also made it harder to trace.
Once you have sent your funds by your chosen method the exchanger converts it to whichever e-currency you have decided to use and places it in the account you have given them. Remember that all exchangers charge a commission to do the conversion for you.
In July of 2001, Standard and Poor’s (S&P) cut the credit rating of Argentina. S&P did the same thing to the U.S. rating 10 years later (2011). There was uproar in the halls of Congress about this even though arguably, the lower credit rating could have come much sooner. To make matters worse, U.S. credit agencies granted pristine ratings to mortgage-backed securities in their heyday. Fitch, another credit agency, is warning of further action against the U.S. this year.
This currency, once it reaches critical mass, will not be easily manipulated by individuals or governments. It will give us a chance, not a guarantee, but a chance, to correct the system.