Showing posts with label Bitcoin. Show all posts
Showing posts with label Bitcoin. Show all posts

February 20, 2022

Lessons From Israel In Stopping Ransomware

Please see my new article in The Times of Israel called "Lessons From Israel In Stopping Ransomware."
Israel is a small, but powerful nation that wants to stop attacks before they get to their door, and indeed, their lives depend on that. We can learn from Israel's military doctrine of deterrence through overwhelming strength, unity, and disincentivizing the attackers to inform other security issues, such as ransomware attacks. I believe that the answer lies in a public-private security partnership financially backed by the government.
First, companies voluntarily join a public-private security partnership in which they adhere to higher security standards and oversight as well as pledge not to pay ransomware. Additionally, these companies are placed on a public list and given a badge or seal of approval/logo like Brink's Home Security or ADT to display that indicates they are "fortified," and in this case, that they won't pay any ransom, and are backed by the government.

Second, the government provides an incentive for companies to participate in the public-private partnership and not to pay ransomware. The incentive provided is that the companies are backstopped (insured) by the government in the event of a ransomware attack to them. This is similar to ransomware insurance, but the difference is that the cost to companies would be a fraction of what they would otherwise have to pay. The benefit to the taxpayer is that the market for ransomware dries up with companies that have pledged not to pay. As the program become universal, there is no one left for the ransomware attackers to target.

(Source Photo: https://pixabay.com/illustrations/ransomware-cyber-crime-malware-2321110/)


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March 26, 2021

The Fallacy of Bitcoin

 


Bitcoin is a failure waiting to happen.

It is being sold as a hedge against not only inflation, but also doomsday!

However, Bitcoin is not gold which can be sold or bartered in a true doomsday scenario.

Bitcoin is a digital cryptocurrency and as such it is dependent on technology.

In a doomsday scenario, there is a great chance for the interruption for extended periods of time of our technical infrastructure whether through terrorism, war, cyber attack, or an electromagnetic pulse. 

Even with Blockchain distributed ledger, there is a high probability that you will NOT be able to access or trade Bitcoin from any digital wallet if the infrastructure is severely or broadly damaged. 

Your gold watch, ring, or coins will still hold value as currency, but your Bitcoins will be useless!

If you think losing your password to access Bitcoin is a problem, what happens where you can't access the Internet.

A digital doomsday is not as far fetched as you may think and the vulnerability of Western Civilization, in particular high-tech countries like America have much at stake. 

If you think Bitcoin will be your hedge again a major disruption in our way of life you are caught in the greater fool theory.  ;-)

(Credit Photo: Pixabay


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January 6, 2019

From Tulips to Cryptocurrency

There always seem to be another mania. 

From the Tulips Mania in 1637, when a tulip went for more than 10x what a skilled workman earned in an entire year!

To Cryptocurrency in 2018, which is down about 80% from its $20,000 peak losing $700,000,000,000. 

In between, we had the gold rush, the great depression, the tech/dot-com bubble, and the housing/mortgage crisis, and many more I am sure. 

There seems to always be something for people to get excited about in an "irrational exuberance" type of way, as former Federal Reserve Chair, Alan Greenspan put it.

Is it boredom, big dreams, unadulterated greed, the desire to "get rich quick" and easy, the belief that you've discovered the Holy Grail or is it just people being stupid. 

Either way, we have a way of getting ourselves in trouble, some "losing their shirts."

Not sure who said it, but there isn't an easy fix to your life. 

There are small and big problems, and then there is you trying to fix them (with G-d's help). 

As to bitcoins and tulips, they ain't worth what you think they are. ;-)

(Source Graphic: Andy Blumenthal with photos from Pixabay). 
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November 29, 2017

Dysfunction Society

So the world is continuing to go nuts--and it's like everyone is behaving like Negan from The Walking Dead!

North Korea has achieved ICBM capability with a missile launch yesterday to 2,800 miles altitude—11 times higher than the International Space Station—giving Axis of Evil, North Korea the ability to now hit Washington, D.C.!

At the same time, a career civil servant tries to pull a fast one on the Trump Administration—challenging the President’s right to appoint an Acting Director over the Consumer Finance Protection Bureau, which is part of the Executive Branch of government—and hoping that the Senate then won’t confirm Trump’s new appointee for Director, all of which would leave her in charge of CFPB for the next 3 years!  Of course, the courts don’t see it her way, but as the Wall Street Journal noted her coup attempt is definitely something to take note of in democratic, America.

In the background, the Democrats and Republicans continue to beat each other silly and senseless, and not only with stalled legislation on almost every front from Healthcare to Immigration, but now minority leaders Schumer and Pelosi are even refusing to meet with the President over enacting a government budget leading us to another looming government shutdown in December…we can’t seem to keep the government functional or even running for the most powerful nation on Earth.   

Finally, Bitcoin—an artificial computer-generated currency, advanced 1,000-fold this year to hit $10,000! Talking about another financial bubble reminiscent of the manic investment in tulips in the 17th century. What’s the value of Bitcoin or sunflowers? Whatever you want it to be! It’s not about the technology, which may be great, but rather the phony valuing of cryptocurrency, which few understand, and we all know how these bubbles end.  

So overall, we have national security, the administration of our government, and economic stability all in grossly abnormal territory. 

When things get this crazy, eventually you can be sure that something will first start to crack and then potentialy really break, and when it does, will we see more Negan with his brain-bashing baseball bat, Lucille? ;-)

(Source Photo: Andy Blumenthal)
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June 29, 2015

Beautiful Currency For A Thriving Modern Nation

So why is our dollar bill so darn green, grimmy, germy, and generally ugly-looking?

I took this photo of a painting of a pretty nicely designed (mock) $2 bill. 

Red, white, and blue--that's cool. 

Distinct, bold, shiny, and clean--now we're talking. 

We could have other bills in other color combinations, like Canada does--and it would be befitting to have a nice gold/silver combination for the really big bills.

And how about some modern representation of our republic--our technology, space exploration, medical achievements, advanced manufacturing, military prowess, world philanthropy, etc. 

Also, please-please weave in some antimicrobial agents to protect the people from all the sick germs being spread around on these things. 

If we already need physical currency and won't accept the transition to credit/debit cards, Apple Pay, and bitcoins, then at least make the dollar bill something to be proud of. 

We're so worried about whose picture (and gender--okay, it really is time for a women to be honored) is on or off the bill that we forget what the rest of it actually looks like. 

Obsviously with physical money, you need to build in security every which way to Sunday, but it's still a counterfeiting and money laundering nightmare, and we should be focused on cybersecurity where literally our whole financial system (and democracy) is in peril. 

Who really needs the physical greenback anymore unless your a bad person doing black market, under the table, shady deals anyway--for the rest of us, it's time to get with digital currency.

(Source Photo: Andy Blumenthal)
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February 25, 2014

What A Waste Of Coin

Coming to work this week, I saw a penny on the ground...then another...and another.

I saw people passing the money, and instead of picking it up, they kicked in off the curb.

That's even worse than throwing them into the fountain where at least you might get some good luck from it. 

Thus, the state of our minting of coinage--it's essentially worthless.

After getting a pretty basic Venti Java Chip at Starbucks for a whopping $5.45, I quickly calculated, I would need 545 pennies,109 nickles, 54.5 dimes, or 21.8 quarters o pay for this--how ridiculous!  

And uh, how many of these would you need to pay someone one hour at the new proposed minimum wage of $10.10 if you did it in coins?

Otherwise, I could just give them a credit or debit card--yes, sort of a no brainer, right?

Why do we keep making coinage that no one wants or needs in the digital age?

We have direct deposit for payroll, automatic deductions for many expenses, online banking, ecommerce , credit and debit cards, paypal, and even bitcoin...let's just be honest and admit it, traditional money is basically obsolete. 

At Starbucks, I see many people now just use their Smartphone App to pay and get rewards--another advance. 

Someday soon, we will have embedded chips that simply add and deduct payments as we go along and live life--it's really not all that complicated. 

The funny thing also is that it costs more to make many coins then their intrinsic worth--and hence the drive towards making coins with cheaper materials. 

According to Business Insider, in 2012, a penny cost 2.4 cents to make and a nickle 11.2 cents--quite a losing proposition. 

While there truly are some valuable coins out there and I appreciate that there are many coin lovers and collectors--numismatists--perhaps there are alternate hobbies to consider. 

A colleague once told me that "If you watch your pennies, the dollars will follow"--and that may be some good investement advice, but in a 24/7 society and after decades of inflation, there isn't enough time or room to collect all the pennies we would need to make much of a difference. 

ABC News reports that while our northern brother, Canada, got rid of the penny in 2012, we still make something like 5 billion of these useless things a year. 

Full disclosure: my first job in Washington, D.C. was for the U.S. Mint, and while there were good things about it, I could never feel good about the mission--it just had no purpose. ;-)

All Opinions my own.

(Source Photo: here with attribution to Maura Teague)
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