$63 Million Bitfinex Bitcoins Stolen and Fed Nearing Rate Hike

As some of you know, I’m not a fan of Bitcoin, mainly because it’s not something tangible.  I really don’t understand how some of my subscribers can be so into Bitcoin that they constantly email me ways of joining the exchange networks.  I think that everyone who is invested in crypto-currencies will eventually lose, unless they know how to master it, so I found a book that might be of interest to you, I’m sure you can pick it up used for pretty cheap:


Folks, years ago, when Bitcoin was getting started, I used a program that utilized my graphics card to create Bitcoins, this is known as “mining bitcoins” and I was surprised because I was creating money out of thin air. I literally let my computer do all the work and I ended up with Bitcoins, now you need big hardware, so most of us won’t bother buying the equipment to do the mining.
Last Updated On: August 29, 2016
By: Nick Giammarino
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A few days ago, I come across this headline:

Bitfinex exchange takes 36 percent of all users’ Bitcoins after $63 million hack

Here is brief summary of what happened:

Bitfinex Bitcoin Exchange Network Hacked – Losses of Over $63 Million in Bitcoins

Bitfinex, the electronic currency exchange in Hong Kong that reported a bitcoin burglary recently, has actually chosen to cut a little over 36 percent from its customers’ accounts and also assets making for losses from the hack.

Bitfinex claimed in an article Saturday that people who login will be able to see if their account had coins stolen. It guaranteed an announcement in the future the information of the methodology utilized to arrive at the losses.

Clients will be issued a token identified BFX to record their losses, though the exchange is still not clear regarding how it will certainly compensate them.

The exchange said it is still ironing out the information as well as will certainly upload updates in the coming days. The exchange is possessed and also operated by iFinex.

The proposition is likely to meet objections from customers, a few of which have already suggested that investors must take the very first hit and also not customers.

Bitfinex claimed Tuesday it had actually encountered a protection violation and some of its bitcoins taken. It said it was collaborating with law enforcement. To examine which customers had been impacted by the burglary, the exchange said it would pull down its site bitfinex.com with just the upkeep page available.

federal reserve

On Sunday, the internet site was restored just partly in a read-only mode, allowing users to log into their accounts but continuouslying disable trading, depositing, and also withdrawing. Full system performance would be readily available in the coming days with taking out, transferring and exchange trading coming online initially, it said.

BitGo, a provider of safety software application to the exchange, said last week its systems were not breached in this assault as well as its software application operated correctly.

The exchange shed 119,756 bitcoins, Zane Tackett, the site’s director of area and product growth, wrote in a post on Reddit. Those bitcoins were worth regarding US$ 63 million at the currency exchange rate widespread around the moment.

The situation at Bitfinex is not the first time online money exchanges have actually reported losses of money. Mt. Gox in Tokyo closed down in 2014 after losing bitcoins after that valued at a massive $474 million.

Federal Reserve – Preparing For Rate Hike

One thing that Bitcoin and the Federal Reserve have in common is that both create money out of thin air, don’t forget that.  Mining bitcoins is akin to printing money.

federal reserve

JACKSON HOLE, Wyo. (Reuters) – Federal Reserve policymakers are indicating they could elevate UNITED STATES rate of interest quickly but they are currently considering brand-new devices they might have to fight the following economic downturn.

A strong UNITED STATE labor market has actually reinforced the case for the initial price rise because last December, Fed Chair Janet Yellen informed a central financial seminar in Jackson Hole, Wyoming. Several of her colleagues said the increase could come when following month if the economic climate succeeds.

More price walks are expected to be rare as the U.S. reserve bank aims to balance a need to sustain development versus fears it can get too hot the economy.

However Fed officials at three-day conference that ended Saturday also said they have to think about new policy tools for use later on, such as elevating the rising cost of living target or perhaps Fed purchases of non-government-backed assets like corporate financial obligation.

Such ideas would evaluate the restrictions of political feasibility as well as some would certainly need congressional authorization. The view within the Fed is that it can take initiative to sway a public currently skeptical of the unique policies the Fed embarked on during the last situation.

Policymakers assume new devices may be needed in an age of slower financial growth as well as a potentially gigantic and also long-lasting chest of properties held by the Fed. As well as they are persuaded the moment to vet them is now, while rates seem directing.

“Central banking is in a brave new world,” Atlanta Fed President Dennis Lockhart said in an interview on the sidelines of the conference.

At the center of the Fed’s conversations is its $4.5 trillion annual report, developed by bond-buying sprees to battle the 2007-09 economic downturn but which has actually been criticized by many lawmakers.


While policymakers have actually kept the Fed must eventually lower its bond holdings, Lockhart stated some officials were closer to accepting that they had to learn to live with them.

” I believe there are colleagues that are pondering a minimum of maybe a statically big annual report is simply going to be a truth of life and also be main to the toolkit,” he said.

Officials have stated they will slowly let the balance sheet diminish, a procedure that would take years and would not begin till rate of interest rises are well underway. Considerable progression can be made just in a very long-lived financial expansion.

” I make sure everyone in the audience would enjoy if this were the fact. I definitely would be,” Simon Potter, the New York city Fed’s markets chief, stated during the seminar.

Yellen, in her speech on Friday, claimed balance sheets would likely swell again in future economic crises as the Fed buys assets to stimulate the economy.

History of the Federal Reserve System

The seminar, gone to by almost 2 of the Fed’s 17 policymakers as well as main lenders from all over the world, additionally provided a menu of more exotic proposals. This consisted of a Fed takeover of short-term debt markets and also abolishing money in order to bill negative rates of interest.

Many of the more extreme propositions, including one to desert monetary policy altogether and also concentrate on urging runaway deficit-spending, were viewed as cream color tower musings.

Most policymakers, consisting of Yellen, claimed it was likely the devices the Fed utilized to combat the last situation, consisting of rate cuts, bond purchases and jawboning on price assumptions, will certainly suffice.

Still, she claimed, “future policymakers might prefer to think about some added tools that have been employed by other central banks,” coming with a acquiring a broader range of possessions or increasing the rising cost of living target. She likewise pointed out the opportunity of targeting the ordinary level of costs in the economic climate instead of their price of modification.

Significantly, her shopping list of possible tools did not consist of unfavorable prices, a suggestion that has been nearly universally panned by Fed officials. She said the Fed is not actively thinking about additional plan devices however participants at the seminar recommended the process is currently well underway.

” You are seeing an expedition of exactly how are we going to operate in a quite various world compared to before the situation,” Lockhart said.




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