Michael left Tesla for Square due to the dollar’s loss of purchasing power in recent years. He celebrates that, in 20 days, more than 2 million Salvadorans managed to use a bitcoin wallet.

Michael Rihani, a computer science specialist who was on the staff of electric vehicle maker Tesla Motors, will now dedicate his efforts to developing tools to drive bitcoin (BTC) adoption.

Rihani, of Lebanese origin, based in the United States of America, said through Twitter that he is now the new employee of digital payments firm Square. He will contribute to developing the CashApp mobile payment application, which also allows the purchase of bitcoin.

Michael also used his Twitter thread to highlight the 21 reasons that encouraged him to change Tesla for Square. In them, he refers to the loss of the purchasing power of the dollar in recent years.

The developer also spoke about the value of a PlayStation video game console, the price of which has risen in dollars over time, but which, compared to bitcoin, has fallen drastically in value every year.

Rihani also adds that more than 30% of the already existing US dollars appeared the last year. Therefore, USD 100 from 1913 would only be equivalent to about USD 3, but bitcoin fixes the amount.

Another reason why Rihani decided to make efforts to approach the first of the cryptocurrencies is the strictly limited supply of 21 million coins that bitcoin has, a slightly different supply. This supply from the traditional system lets the dollar operate, and its base monetary tends to infinity.

Rihani also felt motivated to join the Square team because of a speech by Jack Dorsey declaring bitcoin the most relevant currency on the internet. In addition, he acknowledges that the adoption of cryptocurrency grows much more concerning the network considering that Bitcoin will have one billion users in 2025.

The Decentralization of Bitcoin is a Powerful Feature

On the list of reasons why Rihani decided to step away from Tesla to empower the development of tools to drive the adoption of Satoshi Nakamoto’s invention, he mentions the decentralized nature of the Bitcoin network.

Rihani said cryptocurrency has a feature that he has never existed before; this feature is trust, and it is a powerful ally. This useful feature comes from the mathematical and game-theoretic properties of the platform. It means users don’t have to trust the government.

The developer also considers that human beings have an alternative such as bitcoin because more than 4,300 million people or more than 50% of the population across the globe live under an authoritarian regime. But bitcoin is coming up as a powerful force for human rights around the world.

Rihani exposes the crisis in Lebanon in which his family and friends are suffering. The nation has lost more than 90% of its wealth because of corruption and the development of a Ponzi scheme.

By: Jenson Nuñez

The scam group mobilized more than USD 384 million over six years. The co-founder of the company managed to abandon the country before the arrest.

A company in Brazil, called GAS Consultoría, received accusations related to fraud against its clients with bitcoin (BTC). Its co-founder fled the country and has continued to operate in the United States of America.

The scam guaranteed its victims a 10% monthly profit with the purchase of this cryptocurrency, as an investment plan. It was a fake promise that would lead to the latter scam.

The company, which has roots in Rio de Janeiro, was run by a couple. One of them was Glaidson Acácio Dos Santos, known as the bitcoin pharaoh, who got detained after the accusation. The other personleading the scam was Mirelis Yoseline Dias Zerpa, his wife, who moved to Miami two months before her husband’s arrest.

The Brazilian Federal Police reported that Mirelis is currently in Miami and leads the company from that area. It warns that some days after Glaidson’s arrest, she withdrew a sum that could surpass 4,000 bitcoins, a figure equivalent to USD 229 million.

At the moment, the woman cannot get detained outside of Brazil. Although, it is worth considering that the Federal Police has already added his name in the red transmission of Interpol as banned for carrying out a millionaire fraud with bitcoin.

A few months ago, the Federal Police seized USD 3.9 million and 591 bitcoins from this fraudulent activity within the framework of a plan called “Operation Cryptos.”

The sum in bitcoin seized equals USD 33 million, but they would have much more money than that, according to what the GLOBO medium found.

Investigators highlighted that GAS Consulting moved around USD 384 million since the company’s inception in 2015. The investigation took place in April 2020 when the Federal Police discovered USD 1.3 million in unrecorded cash.

The complaint indicts a couple of leaders of the bitcoin scam and fifteen other people for acting as partners in the criminal plan. They received accusations of forming a criminal organization and committing crimes against the national financial system. The case received approval from the Federal Court in Brazil. Since then, at least five people got arrested.

The scam with bitcoin also had operations in Venezuela

According to a report from HolaNews, the Federal Public Ministry (MPF) presented evidence that the couple also carried out the scam with bitcoin in Venezuela before moving to Brazil. Until 2015, the couple lived in Venezuela, the country of origin of Mirelis.

The evidence of fraud in Venezuela is a series of emails, WhatsApp messages, and posts on social networks such as Twitter and the Reddit forum. These digital documents are from alleged victims who fell into their deceiving, which worked online.

The victims have been asking for their money back and warning other people that Mirelis and Glaidson were scamming with bitcoin. Their names are even on a list of scammers from Venezuela on a website created by people who experienced various types of virtual scams.

By: Jenson Nuñez

In an attempt to receive the free digital art, the victim may lose their entire balance. The NFT market would have fixed the flaw that allowed the theft of crypto assets.

A non-fungible token (NFT) offered for free to an Opensea user can be the lure with which a malicious criminal stole all the assets deposited in the wallets of the victims.

An investigation by Israel-based security company Check Point Research discovered a vulnerability in Opensea, one of the largest platforms for trading collectible tokens.

Investigators at Check Point emulated an attack to discover why so many Opensea users reported the theft of their assets after receiving a gift NFT. So they created a situation that allowed them to see if this situation was possible.

The attack scenario was successful by gifting an NFT to a specific victim to extract the assets deposited in their portfolio. The moment the victim claimed their gift collectible token, they let a series of malicious pop-ups enter the system.

This group of pop-ups got designed to look like Opensea, asking users to connect their wallets to the platform.

Once the victim follows the pop-up window, the transfer of funds to an external wallet gets enabled. If the user is not paying attention or does not realize what is happening, they would sign the transfer to transfer their assets to the attacker.

The last step of the attack is to transfer the NFT to the victim. Then, this transfer will happen without problems, and the affected user will add the token to their collection without discovering what happened.

The security firm highlighted that they warned the company about the vulnerabilities discovered, including working with researchers to assure that the solution worked.

In any case, there are no further details of how Opensea addressed these failures. It is also not known what happened to the people who say they got attacked.

Opensea Might be a Dangerous Ecosystem

Bug or scam targeting the largest NFT market in the ecosystem is a common problem. In mid-September, the product director took advantage of his knowledge about the inner workings of the marketplace to get a personal benefit.

Nate Chastain carried out a series of operations for a considerable time that allowed him to earn 19 ether (ETH) fraudulently. He purchased NFT at a low price. Chastain knew that it would later appreciate by appearing on the front page of the site. At that time, he was selling them at a value several times higher.

Last month, an Opensea bug caused the vanishing of at least 42 collectible tokens valued at around 28 ethers (ETH). The flaw transferred at least 42 NFTs to the burn list affecting more than 21 different users on the platform.

Among these tokens that got deleted was the oldest decentralized domain name in the entire ecosystem, rilxxlir.eth, one of the first registered and available for auction in 2017.

By: Jenson Nuñez

The Russian government is taking into account the possible impact of Bitcoin mining on its electrical system. Minister Shulginov believes that cryptocurrency miners cannot use energy at reduced rates.

Russia could subject the mining of Bitcoin and other cryptocurrencies to special rates for the electricity service. The head of the Russian Energy Ministry, Nikolai Shulginov, made that statement this week.

According to a local media outlet, Shulginov said it is necessary to exclude the possibility that miners consume at reduced rates. He explained that that would allow maintaining the reliability and quality of the energy supply to the Russian population.

The Russian official stated that they could not allow miners to complicate the situation at the cost of reduced rates for the population. He referred particularly to possible power outages in some regions of the Eurasian country.

Igor Kobzev, the governor of Irkutsk, had shown his concern about Bitcoin mining and its alleged impact on the electricity supply in the region. He mentioned overloaded power lines and the risk of accidents in power plants.

Given that Irkutsk has the lowest energy fees in the country, cryptocurrency miners could see it as a privileged area in Russia. However, the possible measure to increase the rates to miners outlined by the energy minister could end that advantage.

Chinese Bitcoin Miners Migrate and Spread All Over the World

The Russian government is worried due to the wave of Bitcoin miners leaving China in the past months. The bans in the Asian country have forced them to seek new horizons, among which some of them have chosen Russia to settle.

According to recent reports, the United States now concentrates at least 30% of the Bitcoin mining power in the world.

Meanwhile, the Bitcoin network has regained the hash rate that it had lost following seizures and closures of Chinese mining farms. The Asian nation previously concentrated most of the mining processing power in its territory.

The President of Russia is in Favor of Cryptocurrencies

The President of Russia, Vladimir Putin, recently accepted cryptocurrencies as a means of payment and a currency for cross-border transfers. In an interview with the television channel CNBC, he said that those assets have the right to exist and help citizens pay for products and services.

However, Putin warned that it was too early to use them in the exports of oil, gas, and other raw materials. He argued that it is premature to raise them to that level since nothing backs them.

The Russian head of state believes that they should see how that matter develops before cryptocurrencies become a means of accumulation. He stated that the value of crypto assets fluctuates, which has led him not to include them in exports by the government.

The position of the Russian central bank is similar to that of its European counterparts. It has warned the population that cryptocurrencies are complex and highly volatile investment products.

However, the Vice Minister of Finance, Alexei Moiseev, denied that Russia would take measures against cryptocurrencies, like China. Besides, he also said that the country would not prohibit transactions with cryptocurrencies in the short or medium term.

The relevance of Bitcoin and other cryptocurrencies in the economy is increasingly evident, which has led many governments to have them in their sights. The Russian president allowed migrating Chinese miners to settle in the country and accepted their use to pay for products and services.

By Alexander Salazar

The President of Russia said cryptocurrencies can serve as a payment method but considers it premature to use them in government exports of raw materials. Vitalik Buterin explained that Bitcoin is a platform where the value of the ecosystem depends on that of the currency.

The President of Russia, Vladimir Putin, opened the doors to cryptocurrencies as a payment method and a currency for international transfers. He told the television channel CNBC that cryptocurrencies have the right to exist and serve as a means of payment.

However, Putin believes it is too early to use them in the exports of oil, gas, and other raw materials. The head of state said it was premature to raise them to that level since nothing backs them.

He explained that they should see how the matter evolves before cryptocurrencies become a means of accumulation. He added that he perceived those assets as a fluctuating market.

The position of the Russian central bank is similar to that of its European counterparts. It has focused on warning citizens that cryptocurrencies are complex and highly volatile investment products.

This week, the Vice Minister of Finance, Alexei Moiseev, denied that Russia would take measures against crypto assets, like China. He also announced that the country would not ban transactions with cryptocurrencies in the short or medium term.

Buterin Explains the Main Difference Between Ethereum and Bitcoin

The co-founder of Ethereum, Vitalik Buterin, has long been an advocate for the cryptocurrency community. The 27-year-old recently expressed his views on his network, the first cryptocurrency Bitcoin, and the communities of both blockchains.

Buterin, referring to himself as a technological philosopher, shared that he was concerned that the cryptocurrency space could fall into a cultural trap. He said it was necessary to change current schools of thought among many proponents of the leading networks.

Buterin stated that flippening would take place in the future and explained why Ethereum could take over the market capitalization of Bitcoin. He said Bitcoin is a platform where the value of the ecosystem depends on that of the currency. However, he clarified that the value of the Ethereum cryptocurrency comes from that of the ecosystem.

Australia to Launch Its First Cryptocurrency ETF

In the face of growing interest in the approval of a Bitcoin ETF in the United States, the Australian Stock Exchange (ASX) is ready to introduce its first cryptocurrency-focused ETF. Australian ETF provider BetaShares is close to launching the BetaShares Crypto Innovators ETF, which will carry the ticker code CRYP.

However, the fund will focus on global companies instead of receiving direct support from any cryptocurrency. The company announced that they are working in the digital asset space.

Tesla Already Has USD 1 Billion in Profit from Holding Bitcoin

Tesla currently owns about 43,200 BTC, equivalent to around USD 2.6 billion at the time of writing this article, according to CoinGecko.

That amount is about 65% or USD 1 billion above what the electric car company paid in February. At the time, the firm of Elon Musk revealed that it had added USD 1.5 billion in BTC to its balance sheet.

By Alexander Salazar

Investor Raoul Pal believes that Bitcoin futures contracts could only be a good idea in the short term. He recommends buying BTC directly on an exchange and holding it in the long run.

Bitcoiners want to own and safeguard their holdings of Bitcoin (BTC) to get financial exposure to the cryptocurrency without intermediaries. They believe that exchange-traded funds (ETFs) based on that asset do not allow doing it.

Renowned investor Raoul Pal stated that an exchange-traded fund in futures contracts based on Bitcoin goes against the desire of users to safeguard their coins.

Given that BTC is a digital and easily safeguarded asset, Pal thinks an ETF based on Bitcoin does not make sense. However, he considers that commodities such as oil and gas do, despite being difficult to store, transport, and protect.

It is Better to Purchase Bitcoin on an Exchange and Hold It in the Long Term

Pal explains that exchange-traded funds would build a fortune from arbitrating the price of BTC and the futures contract. The investor recommends buying BTC on an exchange and holding the asset in the long term.

The businessman said that people could go to the exchange and buy BTC just by paying a small fee to the platform. He considers that, in that way, users can safeguard their holdings without involving anyone else being in the process.

He noted that, with those investment vehicles, those doing the arbitration receive their fees. He added the ETF itself, the lawyers, the administrators, and the auditors get their share.

The investor criticized the US Securities Exchange Commission (SEC) for allowing those futures contracts, expressing his concern about investors. He said that they are helpful in the case of commodities, which are not storable, but he sees no point in ETFs based on Bitcoin.

If Investors Own their Key Phrases, the Coins Belong to them

Bitcoin entrepreneur and promoter Preston Pysh agreed with the comments from Raoul Pal. He said that if people did not do the hard work to understand the things they have, their purchasing power would become worse.

Macroeconomist Lyn Alden explained that the exposure to a futures contract is not the same as the ownership of the underlying asset. She believes that futures-based commodity ETFs are decent for short-term investments. However, she considers them not very profitable for those with a bullish sentiment about the underlying asset.

The SEC recently approved the first exchange-traded fund based on BTC after several days of expectation. That may have made the price of the pioneering cryptocurrency go up. Some analysts stated that this could be the starting point for the approval of a Bitcoin ETF based on the market value of the crypto asset.

Bitcoin is trading at around USD 62,000 and has accumulated a 13.1% profit in the past seven days, according to CoinGecko. Its daily trading volume is above USD 40 billion, while its market capitalization is approximately USD 1,168 billion.

By Alexander Salazar