Coin News

This article originally appeared on Bitcoin Magazine.

• Elon Musk's Boring Company has received a permit from the Washington, D.C. government that will allow it to begin some initial digging and other preparatory work in a parking lot about a mile from the US Capitol.
• The permit represents just the first of many steps that would be required before the company could begin building a tunnel system in the D.C. area.
• Musk hopes to use the Boring Company to build tunnels for high-speed transit systems like Loop and Hyperloop.

Elon Musk's Boring Company has taken the first steps toward potentially building a tunnel system in Washington D.C. On Tuesday, the Washington Post reported that the Boring Company received a permit from the D.C. government that will allow it to begin some initial digging and other preparatory work in a parking lot about a mile from the US Capitol.

The lot could eventually become a station in a high-speed transit system, according to a Boring Company spokesperson, who added that stations in such a system would be smaller and more "widely distributed" than traditional train stations.

The Boring company has a lot of work ahead of it

The permit represents just the first of many steps that would be required before the company could begin building a tunnel system in the D.C. area, but it indicates that local authorities have some prospective interest in learning more about the project. Given the resistance the Boring Company has faced from local governments elsewhere, that's no small feat. 

The Boring Company hopes to decrease traffic congestion and commute times with a series of underground tunnels it hopes to build across the US. The tunnels could one day house the Loop transit system, which would use electric skates to transport commuters and cars at up to 150 mph, and the high-speed Hyperloop system, in which commuters would travel in pods that could move at over 600 mph. A Hyperloop system could allow commuters to travel between Washington, D.C. and New York in 29 minutes. 

The company is beginning to build momentum

The company has received permission to dig a tw0-mile test tunnel in Hawthorne, California and a 10.3-mile tunnel in Baltimore beneath the Baltimore-Washington Parkway. It has also discussed building a tunnel between Chicago and O'Hare International Airport with Chicago Mayor Rahm Emanuel.

In July, Musk tweeted that he had "verbal" government approval to build a Hyperloop that would connect New York, Philadelphia, Baltimore, and Washington, D.C., though no formal announcements has been made. Getting approval for a full tunnel system in a major city may be the Boring Company's biggest hurdle, as it will have to overcome concerns from local lawmakers about disrupting existing infrastructure or public transit systems.

SEE ALSO: 15 remarkable images that show the 200-year evolution of the Hyperloop

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NOW WATCH: Ken Rogoff on the next financial crisis and the future of bitcoin

The post Bitcoin Exchange Bitfinex Opens ING Account After Losing Wells Fargo appeared first on CCN

Bitfinex, a large cryptocurrency exchange which has been under the U.S. Commodity Futures Trading Commission (CFTC) scrutiny, has opened an ING account after having lost its Wells Fargo relationship last year, according to Bloomberg News. ING spokesperson Harold Reusken confirmed Bitfinex is a customer but would not say anything further about the relationship, citing customer

The post Bitcoin Exchange Bitfinex Opens ING Account After Losing Wells Fargo appeared first on CCN

As cryptocurrencies like bitcoin surge in popularity, so do scams.

As seen in the cryptocurrency subreddit, scammers have found a way to make their website addresses (URLs) look just like the authentic URLs of some popular cryptocurrency exchange sites, like Binance and Bittrex.

Unfortunately for the unsuspecting crypto trader, using your login credentials on a scam site can lead to theft of your cryptocurrency or your regular government-minted money.

Cautious cryptocurrency traders are absolutely right to look for that green "https" tag that usually comes before a website's URL in a browser address bar. That tag helps users identify if a website is legitimate or not. But they may want to have a closer look at the URL next time they sign into their cryptocurrency exchange. 

Check out how scammers can get by your defenses, even if you think you're being vigilant:

SEE ALSO: I've started to mine cryptocurrency, and it's surprisingly easy — but I'm still 8 months away from breaking even

Usually, you can tell if a website isn't legitimate if it doesn't have the green "https" that comes before a website's URL.

Reddit user "chrysotileman" posted a screenshot of a fake cryptocurrency exchange site "coinsmarkets.com." If you're vigilant, it's easy to spot that it's not a legitimate site or a legitimate entity running the site because it doesn't have the proper certification to show that's it's trusted.

What you're looking for is a green "Secure" and "https" before the website's URL address, which is a sign that the site and company obtained the proper SSL (secure sockets layer) certificates. Obtaining an SSL certificate shows that the company behind the site is trusted.

Coinsmarkets.com doesn't have either the green "Secure" or "https" before its URL address. Instead, it has a grayed out "Not Secure" and a regular "http" before the URL. 

Usually, scam sites are identified and taken down pretty quickly. If you try to visit coinsmarkets.com now, you'll be met with an error message.

But some scammers have found ways to display the green "Secure" and "https" in the website URL address, and they make an incredibly subtle change to the site's address.

At first glance, this URL for the popular cryptocurrency exchange Binance looks perfectly legitimate. You can clearly see the green "https" before the Binance website URL.

It isn't clear how scammers obtain an SSL certificate, which allows them to add that re-assuring green "https" to the front of the URL. At the same time, it's also pretty easy to get an SSL certificate from a less reputable certificate issuer. 

A closer look reveals small dots under each instances of the letter "n" in the word "binance," which shouldn't be there.

Those two dots under the Binance URL mean that you're not actually looking at or using the real Binance site. Instead, you're looking at a totally different site made by scammers to look nearly identical to the Binance site.

And since the site looks familiar and the URL checks out at first glance, unsuspecting users type in their login credentials, which can then be recorded by the scammers. Once they have your account login credentials, scammers can do whatever they want in your account, including stealing your cryptocurrency and even stored USD funds.

• Emirates Airline president Sir Tim Clark said his airline has nothing to hide from his US rivals who accuse him of accepting government subsidies. 
• The Emirates boss says his airline has not violated any tenants of Open Skies agreement that govern air travel between the UAE and the US. 
• Clark said the US economy will suffer if the Open Skies system breaks down. 

Emirates Airline president Sir Tim Clark is slamming claims that his company violated a trade agreement with the US and says that the airline has nothing to hide.

"We have provided our financials. We treat ourselves like a publicly listed company. We're not, we're a private company," Clark told Business Insider during a recent interview. "The government of Dubai, which owns Emirates, doesn't have to publish anything. But we publish everything to the sixth decimal place and we're audited."

"We've never made anything secret because we have nothing to hide," Clark said.

Emirates is playing by the rules the US created

Over the past couple of years, Emirates' expansion into the US market has been met with pushback from a coalition lead by American, Delta, and United Airlines (the US3) that claim Emirates' growth has been fueled billions of dollars in government subsidies. 

The US3 claim Emirates along with Etihad and Qatar Airways (the ME3) have received more than $50 billion in subsidies over the past decade. 

According to the US3, this is a violation of the Open Skies agreement that governs air travel between the US and the United Arab Emirates and Qatar. 

It's something Clark has categorically denied.

And while Qatar Airways only recently agreed to open up their books, Emirates has traditionally published its financial returns. 

The Emirates boss points to the Open Skies document agreed upon by the US and the United Arab Emirates in 1999.

"We need to wind the clock back a little bit to 1999 when the US imposed, prescripted on us an air services agreement which was fully Open Skies with the exception of cabotage (No flights between cities within the US)," Clark said. "This wasn't negotiable."

According to Clark, he even asked the US State Department's lead negotiator if there were any strings attached to the agreement and was told "only fair and open competition."

"(The US airlines) need to be reminded of the fact that we have not one inch stepped over the line with regard to what you're allowed to do," Clark said. "Did they prescribe no state-owned aircraft? Did they prescribe no semi-state owned aircraft? Did they prescribe that your labor had to be paid a minimum of this? Did they prescribe that your stakeholders in the aviation field had to be this? No, it wasn't. None of that was there."

As a result, Emirates is struggling to understand the basis upon which the US3 could argue for a reexamination of the Open Skies agreement.

Clark said that the US3 is trying everything it can to depict Emirates as cheaters so that the deal will be re-evaluated. 

The charismatic Brit also pointed out that if the US3 wants to go after government owned and subsidized airlines flying to the US, they should look at airlines from Asia and Europe including Air France-KLM. 

The French government owns 17.8% of Air France-KLM while Delta Air Lines owns 10%. Delta also owns 3.55% of China Eastern while American Airlines owns 2.68% of China Southern. Both carriers are owned by the Chinese government. In 2016, Chinese airlines received $1.3 billion in government subsidies, Bloomberg reported. 

"In the case, you take action against us because we are successful at what we do, you open a Pandora's box of headaches because effectively you have to change everything," Clark said.

Boeing sales went nuclear after Open Skies

"There are those in the United States who would like to see a shut down of the Open Skies," Sir Tim said. 

However, if the Open Skies agreements are scrapped or de-liberalized, it may take a toll on the US economy and the US aviation industry specifically. 

"When the US went Open Skies I thought it was the best thing because if the US had done it then everybody would follow suit," Clark told us. 

Indeed that's what has happened. Since 1992, the state department has signed more than 120 Open Skies agreements that have liberalized air travel into and out of the US. 

"I know that as a result of what they did, the number of planes Boeing sold went nuclear," Clark declared. "Becuase the number of aircraft sold was a direct function of the Open Skies versus closed skies relationship."

In the 26 years since the first Open Skies agreements were signed, Boeing has sold an average of 10% more planes a year than in the five years prior to the treaties. 

Emirates is one of Boeing's most lucrative customers. Not only does the airline buy in bulk, it buys Boeing most expensive products in bulks. Emirates currently operates nearly 170 Boeing 777 airlines, the largest fleet of its kind in the world by a large margin.

In 2013, Emirates agreed to order for 150 Boeing's next-generation 777X worth a record $76 billion. Although it is believed Emirates received a healthy discount from Boeing as the plane's launch customers. In addition, Emirates signed a $16 billion deal with GE Aviation to service and maintain the 300 GE9X engines that will power the 150 777Xs. 

According to Clark, the whole Open Skies system is put in jeopardy if the US decides to go after the agreement with the United Arab Emirates and Dubai. 

So what happens if the Open Skies agreements are rolled back and restricted?

"For one thing, I certainly won't need those 150 planes," Clark said in regards to his record-breaking order. 

SEE ALSO: 'There's a storm coming': Emirates boss warns airlines of a looming seismic shift in technology

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• On Tuesday morning, mechanical and signal problems resulted in delays for over six MTA subway lines used by commuters in NYC.
• The delays began a little before 5:30 a.m. and continued throughout Tuesday morning.
• Twitter users posted photos and videos of a line wrapping around a block in Astoria, Queens for the M60 bus that resulted from delays to the N train.

Delays have become an epidemic for the New York subway system, as just 65% of trains reach their destination within five minutes of their expected arrival. That's the lowest rate among any major metropolitan rapid transit system.

On Tuesday morning, mechanical and signal problems resulted in delays for over six subway lines used by commuters. According to the MTA's subway-focused Twitter account, the problems began a little before 5:30 a.m. and continued throughout Tuesday morning.

"It's evident to me after just four weeks ... and today is kind of typical of this, performance is nowhere near good enough," New York City Transit Authority president Andy Byford said in an MTA board meeting on Tuesday. "We're still struggling with far too many interruptions to service on the subway."

Twitter users posted photos and videos of a line wrapping around a block in Astoria, Queens for the M60 bus that resulted from delays to the N train.

NYC's subway problems have been building for decades

Decades of inadequate investment, an outdated signaling system, track fires, and overcrowding have contributed to the subway system's frequent delays and put the MTA in a difficult position. The New York Times estimated that upgrading the signaling system for every subway line could take 50 years and $20 billion, and the benefits from increased spending on maintenance could also take years to make a noticeable impact on delay frequency. 

Even if the MTA decided to make those changes, it would need to raise a significant amount of money for them. Transit projects in New York are far more expensive than those in comparable cities throughout the world partly because of generous compensation for workers and high costs from contractors, both of whom are allowed to negotiate their rates without input from any New York City agencies. 

There's no easy fix

New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio have proposed congestion fees and additional taxes on the wealthy to help pay for improvements, but no comprehensive plan to fix the subway system has been put into place.

Improvements could also require subway lines and stations to close for significant amounts of time. The L line, which connects north Brooklyn to Manhattan, will close for 18 months for improvements in 2019, and three subway stations on the Upper West Side will close for six months in 2018 for upgrades.

For now, many New York City residents will have to cross their fingers every time they go to work. 

SEE ALSO: I've used NYC buses to get around for nearly 2 years — and I'm convinced it's way better than the subway

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NOW WATCH: Ken Rogoff on the next financial crisis and the future of bitcoin

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Paul Singer, the founder of $34 billion hedge fund Elliott Management, is out with his most recent client letter, and it's full of gloomy prognostications.

In the letter — viewed by Business Insider — he once again beats the drum about an impending market crash. But he also takes aim at cryptocurrencies, calling them "one of the most brilliant scams in history" in a brutal takedown.

Elsewhere, UBS economists say the risk of the US slipping into a recession is "material and rising." On the bright side, $6.3 trillion manager BlackRock just boosted its outlook on US stocks.

Banks are mulling a creative way to enforce gun control — even if the government doesn't make a single change.

Walmart's online sales growth has sharply slowed — and it highlights a key weakness in its battle with Amazon. One graph tells you everything you need to know about Facebook's problem with falling use.

Here's what else is happening today:

• Credit Suisse has identified what could be the next big breaking point for stocks
• S&P: Warnings that cryptocurrency could crash the global financial system are 'much ado about nothing'
• There's a 'yellow light flashing' in the economy — and it poses a threat to the stock market
• Qualcomm raises its bid for NXP Semiconductors
• Litecoin is surging after 'litecoin cash' forks
• Rite Aid gains after Albertsons agrees to the buy the drugstore chain

Uber's CEO already told Goldman Sachs the real plan: It's not to replace taxis, it's to replace your car. A hot startup could be the perfect model for the JPMorgan-Amazon-Berkshire Hathaway healthcare initiative.

The official numbers are in, and "Black Panther" soared past the latest "Star Wars" for a historic $242 million opening weekend. The film's February box-office success is a rarity for the movie business — but industry insiders say that's about to change.

Lastly, these are the sneaky ways apps like Instagram, Facebook, and Tinder lure you in and get you "addicted."

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Venezuela has officially launched the sale of its commodity-backed cryptocurrency, the petro. The coin is meant to be a workaround to avoid sanctions against Venezuela's official currency, the bolivar, which has been rocked by hyperinflation. 

Here's what you need to know in crypto today:

SEE ALSO: South Korea’s defense ministry is taking steps to keep soldiers from getting caught up in the cryptocurrency frenzy

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NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

Welcome to Crypto Insider, Business Insider’s roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

Venezuela has officially launched the sale of its commodity-backed cryptocurrency, the petro. The coin is meant to be a workaround to avoid sanctions against Venezuela's official currency, the bolivar, which has been rocked by hyperinflation. 

Here's what you need to know in crypto today:

SEE ALSO: South Korea’s defense ministry is taking steps to keep soldiers from getting caught up in the cryptocurrency frenzy

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NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

The post Bitcoin Core Wallet Introduces Full SegWit Support appeared first on CCN

SegWit was introduced in August of last year through BIP 141 (Bitcoin Improvement Proposal) and promised to bring noticeable efficiency changes to the Bitcoin network. However, whilst celebratory parties were held around the globe, many in the Bitcoin world were slow to adopt the new technology – including developers of the Bitcoin Core wallet. Version 0.16.0 will

The post Bitcoin Core Wallet Introduces Full SegWit Support appeared first on CCN

A lot of initial coin offerings are criticized as cynical cash grabs. Now an entire country may be trying to get a piece of that action.

Business Insider is hiring a paid fellow to assist with translating content into English from our foreign-language sites.

If you are a news junkie with a passion for optimizing how stories are consumed online, this fellowship is for you.

This fellowship is based in our London office and last 6 months from the start date. Fellows are encouraged to work 40 hours a week.

In this position, you will be responsible for selecting stories from our foreign-language editions, including Germany, Italy, Spain, France, and Poland, and translating them into English using translation tools.

This person will edit content once it is translated and format the stories in our CMS. 

This fellow will also suggest English content to our international editions to help get our stories in front of a larger audience.

The ideal candidate has:

• excellent copy-editing skills
• can work quickly and independently
• has a good instinct for what Business Insider readers find interesting
• knows how to package stories in an exciting and smart way
• familiarity with popular translation tools

Multi-lingual fluency is preferred, especially French, German, Italian, or Spanish. A background in journalism and light HTML and photo-editing skills are also a huge plus.

As a fellow at Business Insider, there is no getting coffee, filing, or making copies.

If this sounds like your dream job, APPLY HERE with a cover letter that explains why you are the right fit for this position. Please list the languages you know at the beginning of your cover letter.

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NOW WATCH: Ken Rogoff on the next financial crisis and the future of bitcoin

• Tesla's Amazon Web Services account was hacked to mine cryptocurrency.
• The hack, which was first brought to Tesla's attention by the cybersecurity startup RedLock, also exposed some of Tesla's proprietary data related to mapping, telemetry, and vehicle servicing.
• Tesla said it believes the hack was limited to the company's test cars and did not affect any vehicles owned by its customers.

Tesla's Amazon Web Services account was hacked to mine cryptocurrency, Fortune first reported. The hack, which was brought to Tesla's attention by the cybersecurity startup RedLock, also reportedly exposed some of Tesla's proprietary data related to mapping, telemetry, and vehicle servicing.

RedLock discovered the hack after it found an IT administrative console that didn't have a password, but the company was unable to determine who initiated the hack or how much cryptocurrency was mined. According to Fortune, Tesla paid RedLock over $3,000 as part of its bug bounty program, which rewards people who find vulnerabilities in the company's products or services that could be exploited by hackers. 

"We maintain a bug bounty program to encourage this type of research, and we addressed this vulnerability within hours of learning about it," a Tesla spokesperson told Business Insider in an email. "The impact seems to be limited to internally-used engineering test cars only, and our initial investigation found no indication that customer privacy or vehicle safety or security was compromised in any way."

Amazon Web Services (AWS) is the retailer's cloud storage division, and it has become one of the company's most profitable services. But AWS accounts, along with business and government websites and servers, have become vulnerable to "cryptojacking" schemes in which hackers break into them to mine cryptocurrency, which has become increasingly lucrative in the past year.

The hack also demonstrated one of the primary concerns auto companies face as they race to introduce the first autonomous vehicles and ride-sharing services. Having proprietary data or technology exposed to competitors could be the difference between being one of the first entrants into the self-driving car market and playing catch-up. 

That difference could end up costing companies billions of dollars, which is why Waymo sued Uber after alleging that Anthony Levandowski, a former Uber engineer who joined the company after working at Waymo, stole confidential information from Waymo that was used by Uber to develop lidar sensors for self-driving vehicles. Uber gave Waymo $245 million in equity as part of a settlement.

RedLock did not immediately respond to a request for comment.

SEE ALSO: Tesla has transformed the car industry — but its biggest strength could become its greatest liability

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NOW WATCH: Ken Rogoff on the next financial crisis and the future of bitcoin

This article originally appeared on Bitcoin Magazine.

This article originally appeared on Bitcoin Magazine.

• A New York Times columnist floated the idea of having banks and credit card companies cut business ties with retailers that sell assault weapons and accessories.
• Some finance industry executives are already reportedly on board with the idea.
• Credit card companies have enacted similar measures in the past, barring Bitcoin purchases, cutting ties with Backpage.com, and suspending payments to WikiLeaks.

Last week's deadly shooting in Florida sparked renewed calls for gun-control legislation — but some finance industry titans reportedly want to take the issue into their own hands.

New York Times columnist Andrew Ross Sorkin wrote Monday that he'd spent several days speaking with "a handful of chief executives" to discuss how banks and credit-card companies could intervene in gun sales. Sorkin said he found universal enthusiasm, though none of the executives would speak on the record.

Sorkin drew upon Visa's espousal of "corporate responsibility" to argue that financial companies should change their terms of service to cut business ties with retailers that sell assault weapons, high-capacity magazines, and bump stock devices that accelerate semiautomatic rifles' firing rate.

"Assault weapons would be eliminated from virtually every firearms store in America because otherwise the sellers would be cut off from the credit card system," Sorkin wrote.

The idea has precedent, Sorkin added. Major banks including JPMorgan Chase, Citigroup, and Bank of America barred clients from using their credit cards to buy Bitcoin and other cryptocurrencies due to risk and volatility.

The financial industry has also previously intervened in cases where the companies feared legal liability from their clients' purchases. In 2015, Visa and MasterCard cut business ties with Backpage.com, the classified advertising portal, after law-enforcement agencies accused site of facilitating sex trafficking.

Visa and MasterCard also suspended payments and donations to WikiLeaks in 2010 after the website published hundreds of thousands of diplomatic cables. MasterCard argued at the time that company rules prohibited customers from "directly or indirectly engaging in or facilitating any action that is illegal."

Sorkin acknowledged the idea may be a "pipe dream," and that at least two executives noted that they feared the reaction of the National Rifle Association and worried for their employees' safety.

"None of this is a panacea. But it's a start. It takes leadership and courage — exactly what these executives say they have," Sorkin wrote. "If they don't want to back up their words with actions, the next time there's a school shooting that prompts a conversation about gun companies, it should also include the financial complex that supports them."

SEE ALSO: Trump suggests FBI failed to look into Florida shooting suspect because it was 'spending too much time' on the Russia investigation

DON'T MISS: Florida social services reportedly investigated Nikolas Cruz in 2016 — but they determined he was a low risk

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NOW WATCH: How to make America great — according to one of the three cofounders of Black Lives Matter

The Finnish government has released guidelines prescribing how authorities must handle the 2,000 bitcoin confiscated since 2016.

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Major ratings agency S&P Global Ratings has published a note in which it argues that the potential impact of a downturn in cryptocurrency markets on the broader financial system has been overestimated.

S&P believes that, for the time being, the segment remains a marginal risk to mainstream finance and its biggest players, despite garnering no shortage of media and regulatory attention of late.

As far as S&P is concerned, cryptocurrencies are speculative instruments, and as such pose negligible systemic risks. 

The agency explains that it doesn't consider even the biggest cryptocurrencies, such as Bitcoin, to be either a viable means of exchange or an asset class, due to their extreme price volatility and small market caps. Instead, S&P labels cryptos speculative instruments which offer the small pool of retail investors using them significant risk of loss and to which major banks maintain limited exposure. That means, according to S&P, a crypto market downturn would result in major losses for retail investors but with limited damage to mainstream financial markets.

That means an overarching global regulatory framework isn't likely to emerge soon.This note is a timely reminder that, despite the attention and concern cryptos are attracting, they’re not yet any kind of category with which major financial institutions are engaging at scale. It's worth noting that, for most financial regulators with the power to regulate the space, their mandate focuses largely on preventing the collapse of the world's biggest FIs, such as banks, rather than protecting small groups of individual investors. As such, given that cryptocurrencies currently stand to cause little harm to global financial stability, legislating on the cryptocurrency space is likely to remain low on regulators' agendas.

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• Litecoin cash officially split from litecoin on Sunday. 
• Both litecoin and the new cryptocurrency are up Tuesday, but have no relation in anything other than name. 
• You can track the price of litecoin in real-time here>>

Litecoin is up more than 9% Tuesday morning after the cryptocurrency's first "hard fork" produced litecoin cash over the weekend.

The split officially happened at litecoin block 1371111, processed at approximately 11 a.m. ET Sunday, at which time litecoin holders had the option to receive 10 of the new cryptocurrency for every 1 litecoin they already held. 

Since the fork, Litecoin has gained 12%, while the offshoot — which is not associated with the original litecoin in any way — has more than tripled, and was trading at $7.40 at the time of writing.

Litecoin creator Charlie Lee has previously warned that any litecoin offshoots could be potential scams.

"Any forks that you hear about is [sic] a scam trying to confuse you to think it’s related to litecoin," he tweeted. "Don’t  fall of it and definitely don’t enter your private keys or seed into their website or client."

Still, the team behind litecoin cash maintains  the new coin will make several improvements over the original litecoin — and that it is far from a scam.

Specifically, the team claims litecoin cash’s new algorithm, called DarkGravity, allows the mining difficulty to be adjusted on every cryptographic block. Litecoin’s mining difficulty can only be adjusted every 2016 blocks. This allows the network to be more flexible to demand for mining power.

"While this [naming] convention isn't ideal, it will be instantly understood by most hearing the name that Litecoin Cash is a hard fork of Litecoin," Litecoin Cash foundation's design lead, Michael Wyszynski told Business Insider. "We have no doubt that there will be Litecoin forks in the future that will be scams, as well as things presenting themselves as hard forks that are nothing of the sort."

Litecoin cash only appears to be supported on the Russian YoBit exchange, which last year was investigated by the government over fraud accusations and has hundreds of complaints on CryptoCompare, a Yelp-like review site for cryptocurrency exchanges.

Litecoin is up more than 6,000% in the last year. 

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

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NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

• Litecoin cash officially split from litecoin on Sunday. 
• Both litecoin and the new cryptocurrency are up Tuesday, but have no relation in anything other than name. 
• You can track the price of litecoin in real-time here>>

Litecoin is up more than 9% Tuesday morning after the cryptocurrency's first "hard fork" produced litecoin cash over the weekend.

The split officially happened at litecoin block 1371111, processed at approximately 11 a.m. ET Sunday, at which time litecoin holders had the option to receive 10 of the new cryptocurrency for every 1 litecoin they already held. 

Since the fork, Litecoin has gained 12%, while the offshoot — which is not associated with the original litecoin in any way — has more than tripled, and was trading at $7.40 at the time of writing.

Litecoin creator Charlie Lee has previously warned that any litecoin offshoots could be potential scams.

"Any forks that you hear about is [sic] a scam trying to confuse you to think it’s related to litecoin," he tweeted. "Don’t  fall of it and definitely don’t enter your private keys or seed into their website or client."

Still, the team behind litecoin cash maintains  the new coin will make several improvements over the original litecoin — and that it is far from a scam.

Specifically, the team claims litecoin cash’s new algorithm, called DarkGravity, allows the mining difficulty to be adjusted on every cryptographic block. Litecoin’s mining difficulty can only be adjusted every 2016 blocks. This allows the network to be more flexible to demand for mining power.

"While this [naming] convention isn't ideal, it will be instantly understood by most hearing the name that Litecoin Cash is a hard fork of Litecoin," Litecoin Cash foundation's design lead, Michael Wyszynski told Business Insider. "We have no doubt that there will be Litecoin forks in the future that will be scams, as well as things presenting themselves as hard forks that are nothing of the sort."

Litecoin cash only appears to be supported on the Russian YoBit exchange, which last year was investigated by the government over fraud accusations and has hundreds of complaints on CryptoCompare, a Yelp-like review site for cryptocurrency exchanges.

Litecoin is up more than 6,000% in the last year. 

SEE ALSO: Sign up to get the most important updates on all things crypto delivered straight to your inbox.

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NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

The post Bitcoin Price Soars Above $11,600 as Bulls Strengthen Positions appeared first on CCN

The cryptocurrency markets posted a minor advance on Tuesday, with gains concentrated among a small group of coins. The Bitcoin price and Litecoin price were the day’s headliners, while Ethereum and other top cryptocurrencies struggled to tread water. The cryptocurrency market cap briefly rose as high as $516.8 billion but has since receded to $507.9

The post Bitcoin Price Soars Above $11,600 as Bulls Strengthen Positions appeared first on CCN

The post Bitcoin Price Soars Above $11,600 as Bulls Strengthen Positions appeared first on CCN

The cryptocurrency markets posted a minor advance on Tuesday, with gains concentrated among a small group of coins. The Bitcoin price and Litecoin price were the day’s headliners, while Ethereum and other top cryptocurrencies struggled to tread water. The cryptocurrency market cap briefly rose as high as $516.8 billion but has since receded to $507.9

The post Bitcoin Price Soars Above $11,600 as Bulls Strengthen Positions appeared first on CCN

Bitcoin prices passed $11,600 in the morning's session, seemingly buoyed by enthusiastic trading in South Korea.

The post Bitcoin “Failed” as a Currency So Far, Says Bank of England Governor appeared first on CCN

Bank of England (BoE) governor Mark Carney recently argued that bitcoin has, so far, “failed” to be a legitimate currency measured by standard benchmarks, as it neither a store of value nor a useful medium of exchange. While speaking at a private event at London’s Regent’s University, the central banker told students that bitcoin fails

The post Bitcoin “Failed” as a Currency So Far, Says Bank of England Governor appeared first on CCN

Here is what you need to know.

The European Parliament will call for Britain to have "privileged" single-market access after Brexit. The Parliament wants the European Union to negotiate an "association agreement" that could give Britain "privileged" single-market access and membership of EU agencies.

Mario Draghi is getting a new right-hand man. Eurozone finance ministers are set to choose Spanish Economy Minister Luis de Guindos as the new vice president at the European Central Bank, a move likely to boost the chances of a German becoming head of the European Central Bank next year, Reuters says.

Bitcoin is back above $11,000. The cryptocurrency trades up about 2% near $11,400 a coin as trade presses higher for the fifth straight day and 10th in the past 11.

Paul Singer's Elliott Management says cryptocurrencies are "one of the most brilliant scams in history." "FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," the $34 billion hedge fund wrote in a fourth-quarter letter to clients.

S&P: Warnings that cryptocurrency could crash the global financial system are "much ado about nothing." "In our opinion, in its current version, a cryptocurrency is a speculative instrument, and a collapse in its market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate," the credit analyst Mohamed Damak and his team wrote.

Snap CEO Evan Spiegel sells some stock. Spiegel sold $50 million of Snap stock last week, marking his first share sale since his company went public a year ago, a Securities and Exchange Commission filing showed.

Layoffs are coming at Deutsche Bank. The German bank plans to cut up to 500 trading and investment-banking jobs following three years of steep losses, according to multiple reports.

750 KFCs in Britain are closed because of a chicken logistics crisis. More than 80% of Britain's KFC locations are temporarily closed after a change in food distributors led to a nationwide chicken shortage for the company.

Stock markets around the world trade mixed. Japan's Nikkei (-1%) lagged in Asia, and Germany's DAX (+0.12%) clings to gains in Europe. The S&P 500 is set to open down 0.6% near 2,716.

Earnings reports keep coming. Domino's Pizza, Home Depot, and Walmart report ahead of the opening bell.

Join the conversation about this story »

NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

Here is what you need to know.

The European Parliament will call for Britain to have "privileged" single-market access after Brexit. The Parliament wants the European Union to negotiate an "association agreement" that could give Britain "privileged" single-market access and membership of EU agencies.

Mario Draghi is getting a new right-hand man. Eurozone finance ministers are set to choose Spanish Economy Minister Luis de Guindos as the new vice president at the European Central Bank, a move likely to boost the chances of a German becoming head of the European Central Bank next year, Reuters says.

Bitcoin is back above $11,000. The cryptocurrency trades up about 2% near $11,400 a coin as trade presses higher for the fifth straight day and 10th in the past 11.

Paul Singer's Elliott Management says cryptocurrencies are "one of the most brilliant scams in history." "FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," the $34 billion hedge fund wrote in a fourth-quarter letter to clients.

S&P: Warnings that cryptocurrency could crash the global financial system are "much ado about nothing." "In our opinion, in its current version, a cryptocurrency is a speculative instrument, and a collapse in its market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate," the credit analyst Mohamed Damak and his team wrote.

Snap CEO Evan Spiegel sells some stock. Spiegel sold $50 million of Snap stock last week, marking his first share sale since his company went public a year ago, a Securities and Exchange Commission filing showed.

Layoffs are coming at Deutsche Bank. The German bank plans to cut up to 500 trading and investment-banking jobs following three years of steep losses, according to multiple reports.

750 KFCs in Britain are closed because of a chicken logistics crisis. More than 80% of Britain's KFC locations are temporarily closed after a change in food distributors led to a nationwide chicken shortage for the company.

Stock markets around the world trade mixed. Japan's Nikkei (-1%) lagged in Asia, and Germany's DAX (+0.12%) clings to gains in Europe. The S&P 500 is set to open down 0.6% near 2,716.

Earnings reports keep coming. Domino's Pizza, Home Depot, and Walmart report ahead of the opening bell.

Join the conversation about this story »

NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

Here is what you need to know. 

The European Parliament will call for Britain to have "privileged" single market access after Brexit. The Parliament wants the EU to negotiate an "association agreement" which could give Britain "privileged" single market access and membership of EU agencies.

Mario Draghi is getting a new right hand man. Euro zone finance ministers are set to choose Spanish Economy Minister Luis de Guindos as the new vice president at the European Central Bank, a move likely to boost the chances of a German becoming head of the European Central Bank next year, Reuters says.

Bitcoin is back above $11,000. The cryptocurrency trades up about 2% near $11,400 a coin as trade presses higher for the fifth straight day and 10th in the last 11.

Paul Singer's Elliott Management says cryptocurrencies are "one of the most brilliant scams in history.""FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," the $34 billion hedge fund wrote in a fourth-quarter letter to clients.

S&P: Warnings that cryptocurrency could crash the global financial system are "much ado about nothing." "In our opinion, in its current version, a cryptocurrency is a speculative instrument, and a collapse in its market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate," credit analyst Mohamed Damak and his team wrote.

Snap CEO Evan Spiegel sells some stock. Spiegel sold $50 million of Snap stock last week, marking his first share sale since his company went public a year ago, a Securities and Exchange Commission filing showed. 

Layoffs are coming at Deutsche Bank. The German bank plans to cut up to 500 trading and investment banking jobs following three years of steep losses, according to multiple reports.

750 KFCs in Britain are closed because of a chicken logistics crisis. More than 80% Britain's KFC locations are temporarily closed after a change in food distributors led to a nationwide chicken shortage for the company. 

Stock markets around the world trade mixed. Japan's Nikkei (-1%) lagged in Asia and Germany's DAX (+0.12%) clings to gains in Europe. The S&P 500 is set to open down 0.6% near 2,716.

Earnings reports keep coming. Domino's Pizza, Home Depot, and Walmart report ahead of the opening bell.

Join the conversation about this story »

NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

Here is what you need to know. 

The European Parliament will call for Britain to have "privileged" single market access after Brexit. The Parliament wants the EU to negotiate an "association agreement" which could give Britain "privileged" single market access and membership of EU agencies.

Mario Draghi is getting a new right hand man. Euro zone finance ministers are set to choose Spanish Economy Minister Luis de Guindos as the new vice president at the European Central Bank, a move likely to boost the chances of a German becoming head of the European Central Bank next year, Reuters says.

Bitcoin is back above $11,000. The cryptocurrency trades up about 2% near $11,400 a coin as trade presses higher for the fifth straight day and 10th in the last 11.

Paul Singer's Elliott Management says cryptocurrencies are "one of the most brilliant scams in history.""FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," the $34 billion hedge fund wrote in a fourth-quarter letter to clients.

S&P: Warnings that cryptocurrency could crash the global financial system are "much ado about nothing." "In our opinion, in its current version, a cryptocurrency is a speculative instrument, and a collapse in its market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate," credit analyst Mohamed Damak and his team wrote.

Snap CEO Evan Spiegel sells some stock. Spiegel sold $50 million of Snap stock last week, marking his first share sale since his company went public a year ago, a Securities and Exchange Commission filing showed. 

Layoffs are coming at Deutsche Bank. The German bank plans to cut up to 500 trading and investment banking jobs following three years of steep losses, according to multiple reports.

750 KFCs in Britain are closed because of a chicken logistics crisis. More than 80% Britain's KFC locations are temporarily closed after a change in food distributors led to a nationwide chicken shortage for the company. 

Stock markets around the world trade mixed. Japan's Nikkei (-1%) lagged in Asia and Germany's DAX (+0.12%) clings to gains in Europe. The S&P 500 is set to open down 0.6% near 2,716.

Earnings reports keep coming. Domino's Pizza, Home Depot, and Walmart report ahead of the opening bell.

Join the conversation about this story »

NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

• Pre-sale for the petro, a cryptocurrency issued by the Venezuelan government starts on Tuesday.
• The cryptocurrency, first mooted in December, will be backed by oil, gas, gold and diamond reserves in the economically stricken nation.
• It is effectively being launched to help Venezuela circumvent financial sanctions enforced by the USA and EU.

Venezuela's government will launch the first sale of its commodity-linked cryptocurrency, the petro, on Tuesday.

The cryptocurrency, first mooted in December, will be backed by oil, gas, gold and diamond reserves in the economically stricken Latin American nation.

Tuesday's launch comes in the form of a pre-sale, where potential buyers can sign up to get the petro when it officially launches. The token will attract investment from Turkey, Qatar, the United States and Europe, the country's cryptocurrency regulator, Carlos Vargas, told reporters last week.

Venezuela will issue around 100 million petros, equivalent to around $6 billion.

When the currency was first announced, Venezuela's president, Nicolas Maduro said that it will help Venezuela to "advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade."

The cryptocurrency is effectively being launched to help Venezuela circumvent financial sanctions enforced by the USA and EU against the country as a punishment for its increasingly authoritarian regime.

"The Venezuelan government is looking to take advantage of one of the key features of cryptocurrencies – decentralisation," Matthew Newton, an analyst at trading platform eToro said in an email.

"Through ICOs, cryptocurrencies have shown that start-ups have been able to circumvent traditional finance and fundraising by reaching a global audience through technology and pitching their ideas directly.

"With petro, we are witnessing this opportunism on a much grander scale, and the first of its kind. Other sanctioned nations will be watching closely as petro could set a precedent."

Initially, buyers will be able to use existing cryptocurrencies like bitcoin, as well as fiat currencies like the US dollar, to buy the petro. They will not, however, be able to use Venezuela's currency, the bolivar.

The bolivar is famously weak after hyperinflation in recent years has left it virtually worthless.

Join the conversation about this story »

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• Around 80% of Britain's KFC locations are shut due to a lack of chicken.
• New distributors working for KFC have been unable to get sufficient chicken to 750 stores across the UK.
• KFC has promised that "the Colonel is working on it" — but there is no indication of when the stores will reopen.

Seven hundred and fifty KFC outlets in the UK have been shut after a change in food distributors led to a nationwide chicken shortage for the company.

Around 80% of all KFCs in Britain have been forced to close because the delivery company which recently took over the job of getting chickens to each restaurant has been unable to deliver.

KFC swapped deliverers from Bidvest Group to DHL last week, which caused what the fried chicken empire called "teething problems." It has since set up a web page where people can find their nearest open outlet, and promised that "The Colonel is working on it".

The company wrote on Saturday: "The chicken crossed the road, just not to our restaurants.

"We won't compromise on quality, so no deliveries has meant some of our restaurants are closed, and others are operating a limited menu, or shortened hours."

According to the GMB, a trade union whose members worked for the Bidvest Group, DHL is "not geared up" to deliver chicken around the country.

DHL currently has one distribution depot, while Bidvest had multiple around the country, GMB National Officer Mick Rix told Business Insider.

Rix added: "Bidvest have a number of depots, which means that drivers don't have to drive hundreds of miles [to deliver to KFC stores across the UK]. The depots are conveniently across the country and can be more efficient to distribute, which keeps costs down.

"What that means is all the orders from across the UK are going to one site, and DHL's systems are not geared up to handling hundreds of orders for the UK."

DHL's distribution centre for KFC is in Rugby, a town in central England. As shown in the map below, KFC operates outlets across the country as far as Elgin, Scotland, and Penzance, southern England.

Rugby is some 370 miles away from Elgin and 250 miles from Penzance.

KFC operates 900 outlets in the UK, meaning more than 80% of its stores have been closed due to the chicken crisis.

It's unclear when the delivery problems would be rectified, KFC told the BBC.

Rix added in a statement on Monday night: "We tried to warn KFC this decision would have consequences — well now the chickens are coming home to roost.

"Three weeks ago KFC knew they had made a terrible mistake, but by then it was too late."

Rix added that 255 GMB members, who are specially trained in food distribution, have lost their jobs as a result of the change in distributor.

People across the UK tweeted of their outrage over the news. One called it "a sign of the apocalyse." The BBC also described the news as a "chicken chaos."

SEE ALSO: Meet the long-lost, 26-year-old KFC chicken heiress and Instagram star with her own lingerie company

READ MORE: How KFC became the biggest fried chicken joint on the planet

Join the conversation about this story »

NOW WATCH: Ken Rogoff on the next financial crisis and the future of bitcoin

The post Bitcoin Will Be Taxed as an Asset: Israel Tax Authority appeared first on CCN

Israel’s official tax authority has confirmed that cryptocurrencies like bitcoin will be taxed as an asset with investors subject to capital gains tax. In an updated circular released on Monday, the Israel Tax Authority doubled down on its previous position of deeming cryptocurrencies as ‘assets’ rather than currencies. The authority first issued an early official

The post Bitcoin Will Be Taxed as an Asset: Israel Tax Authority appeared first on CCN

• Bank of England Governor Mark Carney: Bitcoin has "failed" to become an actual currency.
• Carney told students at London's Regent's University that bitcoin fails two key tests: it is neither a medium of exchange nor a store of value.
• UBS, S&P Global Ratings, and a senior ECB board member have all made similar arguments in recent months.

LONDON — Bitcoin has so far "failed" in its ambition to be a legitimate currency, Bank of England Governor Mark Carney said on Monday evening.

Speaking at a private event at London's Regent's University, Carney told students that bitcoin fails to meet two key requirements of a currency: it is neither a medium of exchange, nor a store of value.

"It has pretty much failed thus far on... the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange," he said during a Q&A session.

A medium of exchange can be widely used to purchase goods and services from sellers. While bitcoin can be used to buy things — particularly in unregulated parts of the internet — its high price volatility means that few retailers accept it.

Payment provider Stripe dropped support for bitcoin at the startup the year, saying there are "fewer and fewer use cases for which accepting or paying with Bitcoin makes sense." Video game marketplace Steam also dropped bitcoin support in December, blaming "high fees and volatility in the value of bitcoin."

Another key feature of a currency is that it acts as a store of value: you can invest your money and be reasonably sure that its value will not fluctuate massively. Bitcoin, which has seen its price appreciate around 30% in the last week alone, does not offer that protection.

'Fatal' flaws

Carney's views are in-line with many other central banks and traditional financial figures. S&P Global Ratings argued this week that cryptocurrencies are "a speculative instrument" rather than a cryptocurrency and ECB board member Yves Mersch said earlier this month that cryptocurrencies "are not money."

UBS Wealth Management's outspoken chief economist Paul Donovan said in November that bitcoin will never become a true currency because of a series of "fatal" flaws.

"A currency has to be a widely used medium of exchange," Donovan said. "Cryptocurrencies are never going to achieve that. Period."

Central banks around the world are scrutinizing cryptocurrencies, which have transformed in a short period of time from a little known, niche asset, into a $500 billion market.

Many around the world aggressively trying to regulate the space, and deter people from putting money in what to many from the traditional finance sector is a highly speculative and incredibly risky investment. Earlier this week, it emerged that Poland's central bank has paid YouTube stars to talk down cryptocurrencies and discourage people from buying them.

However, some are considering launching their own centralised digital currencies. The Bank of England, for instance, has a task force looking at how the bank may be able to use cryptocurrencies and related tech in the future.

Join the conversation about this story »

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The post Australian University Launches Nation’s First Open Blockchain Course appeared first on CCN

Australian public research university RMIT is launching the country’s first dedicated online short course on blockchain technology, the underlying innovation behind cryptocurrencies like bitcoin. The emergence of blockchain as a disruptive, game-changing technology has spurred Melbourne-based RMIT University to offer Australia’s first online course on the sector. The 8-week program, titled ‘Developing Blockchain Strategy’, will … Continued

The post Australian University Launches Nation’s First Open Blockchain Course appeared first on CCN

Good morning! Here's what you need to know in markets on Tuesday.

1. HSBC's pre-tax profit for 2017 more than doubled due to the absence of hefty restructuring costs incurred in the prior year but still lagged expectations as the bank took a writedown following U.S. tax changes. Europe’s biggest lender by market capitalization, on Chief Executive Stuart Gulliver’s last day on the job on Tuesday, also announced plans to further bolster its capital base by raising up to $7 billion in the first half of 2018.

2. North Korean is ready for both dialogue and war, state-run news agency KCNA said Monday. In an op-ed, KCNA said the US is trying to derail inter-Korean relations by keeping military options on the table. "It is obviously an expression of a hideous attempt to block the improvement of inter-Korean relations and again coil up the military tension on the Korean peninsula," KCNA said.

3. Uber Chief Executive Officer Dara Khosrowshahi said on Tuesday he can see commercialization of the Uber Air flying taxi service happening within five to 10 years. The U.S. ride-hailing app maker has said it expects flying vehicles to eventually become an affordable method of mass transportation.

4. Elliott Management, a $34 billion hedge fund, told clients that cryptocurrencies will likely one day be described "as one of the most brilliant scams in history." "FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," Elliott wrote in a fourth-quarter letter to clients.

5. Britain's financial sector will be "the servant of industry not the masters of us all" if the opposition Labour Party gets into power, its leader Jeremy Corbyn will say on Tuesday, accusing bankers of taking the economy hostage. "For a generation, instead of finance serving industry, politicians have served finance. We've seen where that ends: the productive economy, our public services and people's lives being held hostage by a small number of too big to fail banks and casino financial institutions," he will say.

6. Bitcoin has failed as a currency measured by the traditional benchmarks, and is neither a store of value nor a useful way to buy things, Bank of England Governor Mark Carney said on Monday. "It has pretty much failed thus far on ... the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange," Carney told students at London's Regent's University.

7. Asian stocks dipped on Tuesday, their recent recovery slowing after European equities broke a winning streak run, while the dollar held firm after bouncing from three-year lows. MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.1%. Australian stocks dipped 0.45%.

8. Deutsche Bank is cutting at least 250 investment banking jobs in locations including London and the United States, a person familiar with the matter told Reuters, adding that the figure could rise to as many as 500. It is in the process of cutting 9,000 jobs group-wide from 2015 levels, or around one in 10 staff, with 4,000 jobs expected to go in Germany.

9. Euro zone finance ministers chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year. Initially faced with two candidates — de Guindos and Irish central bank governor Philip Lane — the ministers had their choice made simple for them by Ireland's decision to withdraw Lane's name.

10. The price of bitcoin climbed back above $11,000 per coin on Monday afternoon during thin trading. Bitcoin lost more than half its value between November and late January but has staged a strong rally over the last week or so, appreciating from around $8,000 on February 13 to more than $11,000 on Monday.

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An upcoming Bitcoin Core software release is finally making it easier to use a code change called SegWit in the software's standard wallet.

• Elliott Management, a $34 billion hedge fund, told clients that cryptocurrencies will likely one day be described "as one of the most brilliant scams in history." 
• "FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," Elliott wrote in a fourth-quarter letter to clients.

Elliott Management, a $34 billion hedge fund founded by billionaire Paul Singer, has coined a new acronym to describe the folly surrounding cryptocurrencies – WTHIT, or what the hell is this?

"FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??)," Elliott told clients in a January 26 letter seen by Business Insider. "When the history is written, cryptocurrencies will likely be described as one of the most brilliant scams in history." 

The fund dedicated three pages to covering what it sees as issues with cryptocurrencies. The letter said:

"We all laugh at primitive tribes which used large stones (or pigs) as currency. Well, laugh as you will, but a stone or a healthy pig is something. Cryptocurrencies are nothing except the marketing power of inventors, financiers and others who love the idea of buying a black box (which is obviously empty) for the price of a Kia and dreaming that it will turn into a Mercedes. There have been times recently when this dream has materialized within hours. This is not just a bubble. It is not just a fraud. It is perhaps the outer limit, the ultimate expression, of the ability of humans to seize upon ether and hope to ride it to the stars."

This is not the first time Elliott has criticized cryptocurrencies; the firm raised concerns in a 2013 client letter. But the value of cryptocurrencies has surged since then, with some volatility surfacing earlier this year.

One of Elliott's concerns is the notion that bitcoin is scarce. The hedge fund cites a recent Barron's magazine interview with venture capitalist Avie Tevanian, who says “we know that only 21 million bitcoins will be created.”

According to Elliott, this is misguided because "through a process known as a 'forking event,' this limitation is not nearly as sacrosanct as the bitcoin evangelists would have you believe."

A forking event is basically when new rules are created to the software backing bitcoin, which creates a new currency, according to CoinCentral.com.

Elliott added: "Forking events ... have created an increase in supply and a dilution (really an evaporation, as is the case with all currency debasements throughout human history) of the value proposition for cryptocurrencies."

Elliott managed $34.1 billion as of January 1, according to the letter. The Elliott Associates LP fund returned 8.7% last year.

SEE ALSO: A new lawsuit casts doubt on what billionaire Steve Cohen's deputies have been saying for years

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