OpenAI Softens Stance on Military Use of Its AI Technology
OpenAI has revised its usage policy, removing explicit prohibitions on military and warfare applications of its AI tools, such as ChatGPT. The new policy language is now less specific, focusing on preventing harm rather than explicitly banning military usage.
- The change raises questions about OpenAI's approach to enforcement and its stance on assisting military operations indirectly through non-weapon applications.
- The rewrite of the usage policy also indicates a shift towards legal compliance over explicit safety measures, prompting concerns over the potential misuse of AI in military settings, given known issues such as bias and inaccuracy in large language models.
https://theintercept.com/2024/01/12/open-ai-military-ban-chatgpt/
Persistent Inflation Challenges
Despite early signs of subsiding crisis-level inflation, December's report indicates continuing challenges with higher-than-desirable price increases in key economic areas, risking the delay in anticipated interest rate cuts and affecting hopes for reduced inflation before 2024.
- The Consumer Price Index ascended by 0.3% in December, a slight increase from November, with a 3.4% annual rise, signaling a steady pace of inflation particularly within the services sector.
- Shelter costs, a significant factor in the CPI rise, displayed sturdiness against predictions of decline, contributing to the stubborn core inflation rates that remain above the Federal Reserve's target.
SEC Twitter Account Hacked with False Bitcoin ETF Approval
The U.S. Securities and Exchange Commission (SEC) confirmed that its X account on Twitter was hacked, leading to the unauthorized release of a fake announcement about the approval of spot bitcoin ETFs.
- The misleading tweet caused brief confusion and a spike in Bitcoin's price, which corrected shortly after the truth surfaced.
- The SEC reaffirmed through its Chair, Gary Gensler, that no such product approvals have been made, emphasizing the importance of accurate information dissemination.
Bitcoin Enthusiast Challenges Ordinals Critics
Taproot Wizards contributor Rijndael has developed a script allowing Bitcoin node operators to reject blocks containing Bitcoin Ordinals inscriptions, challenging critics to take action against what some see as unwelcome clutter on the Bitcoin blockchain. Yet, there's skepticism regarding the script's adoption due to the potential self-impairing consequences for the nodes that use it.
- The controversial move questions the commitment of those who have criticized Ordinals but may result in nodes 'bricking' themselves, as described by Glassnode analyst James Check.
- Resurfaced debates over Ordinals involve concerns about mempool congestion and implications for Lightning Network users, with potential solutions possibly arriving in the next major Bitcoin Core update.
https://cointelegraph.com/news/taproot-wizards-launches-software-reject-ordinals-bitcoin
Bitcoin Mining Lawsuit in Texas Reveals Chinese Investment
The small town of Channing, Texas, is in the spotlight due to a lawsuit against a local bitcoin mine, BitRush, over allegations of unpaid wages to workers and unpaid services by Crypton Mining Solutions. The case has revealed extensive investment by Chinese investors in U.S. cryptocurrency mines, exploiting Texas's affordable energy and crypto-friendly policies to generate and transfer large sums of money with minimal U.S. oversight.
- Texas has become a significant destination for Chinese-funded cryptocurrency mining operations due to favorable conditions for crypto mining and potential regulatory blind spots.
- Concerns are heightening over national security as the Pentagon monitors a Wyoming bitcoin operation with Chinese ties, reflecting the growing influence of Chinese investment in the U.S. cryptocurrency mining sector.
https://www.businessinsider.com/bitcoin-mine-texas-lawsuit-links-to-chinese-investors-2023-12
Bitcoin's Ongoing Debates: Ordinals and the Future of Transactions
The Bitcoin community faces a new divide over the use of ordinals and BRC-20 tokens, as the network grapples with the evolving purpose of transactions. These new uses, considered by some as 'spam,' challenge traditional views of Bitcoin's intent as a financial network. The pressure on block size and transaction fees intensify, leading to a clash between financial and non-financial utilization of the Bitcoin blockchain.
- As Bitcoin's mining rewards diminish over time, transaction fees become crucial for miner compensation, with current high fees driven by the demand to record ordinals.
- Critics of ordinals argue that Bitcoin should maintain low transaction fees to compete with central bank digital currencies, while supporters believe ordinals are key to ensuring Bitcoin's future security budget.
- Amidst contention, some mining pools offer a choice between blocks that support ordinals and BRC-20 tokens and those with a minimal non-financial transaction focus, reflecting the community's mixed sentiments.
Bitcoin Price Prospects Amid ETF Expectations
Bitcoin's price has surged to highs not seen since early 2022, fueled by anticipation of a Biden bailout and a potential BlackRock-managed bitcoin spot ETF, despite concerns from trader Arthur Hayes that such success could jeopardize the Bitcoin’s future.
- BlackRock's involvement has raised speculations about a massive influx of Wall Street capital into bitcoin, with the SEC rumored to be on the verge of approving a wave of bitcoin spot ETF applications.
- Arthur Hayes warns that if asset managers corner the bitcoin market, it could lead to the network's collapse by making mining unviable, but he also suggests the fall could give rise to an alternative monetary network.
El Salvador's Bitcoin Citizenship Initiative
El Salvador's Congress, dominated by President Nayib Bukele's New Ideas party, has passed a law allowing expedited citizenship for foreign bitcoin donors. The law aims to attract support for social and economic development projects by waiving the standard naturalization residency requirements in exchange for bitcoin contributions.
- Despite the lack of a minimum donation stipulation, the move comes as El Salvador continues grappling with economic challenges and seeks a new financing program with the International Monetary Fund (IMF).
- This initiative follows the controversial adoption of bitcoin as legal tender in 2021 and President Bukele's re-election bid, which contradicts the country's constitutional ban on consecutive presidential terms.
Bitcoin Price Surge Ahead of Halving
Bitcoin has experienced significant price increase in 2023, propelled by speculation around upcoming changes in 2024, including a historical bitcoin halving. The excitement is partly due to BlackRock's interest in a bitcoin ETF, boosting market confidence.
- Nigeria has reversed its 2021 ban on bank engagements with Bitcoin exchanges, recognizing the need to regulate Bitcoin services and reflecting the country's high rate of Bitcoin adoption.
- Despite previous restrictions, Nigeria has strong demand as residents seek financial stability amid currency devaluation and economic challenges.
San Francisco's Lavish APEC Summit Party
San Francisco's extravagant celebration for President Biden during the APEC summit cost nearly $8 million, featuring a performance by Gwen Stefani and a grand fireworks display. Funded by a nonprofit backed by private donations, the city showcased its hospitality to global leaders and the Democratic elite, amid criticisms of overspending.
- The event's cost breakdown included $1.1 million for Stefani's performance and significant expenditures on production, labor, venue rental, and entertainment.
- Critics argue the funds could have supported other initiatives, such as affordable housing, highlighting the tension between grand diplomatic gestures and local needs.
https://sfstandard.com/2023/12/22/gwen-stefani-cost-san-francisco-million-biden-apec-party/
Satoshi Nakamoto Identity Trial Postponed
The lawsuit involving Craig Wright, who claims to be Bitcoin's creator Satoshi Nakamoto, and Bitcoin Core developers has been delayed to February due to new evidence submission. Wright, suing for copyright infringement, has provided additional documents reportedly found on USB drives, which the developers criticize as potentially fabricated.
- The provided documents appeared after Bitcoin developers presented 50 pieces of counter-evidence against Wright's earlier submissions.
- In preparation for the trial, the court has ordered Wright to make additional security payments to cover legal costs and has addressed his ASD-related trial accommodations.
Epstein's Alleged Co-Conspirator List Promises Tech Sector Repercussions
A federal judge's decision to unseal a list of more than 170 names associated with Jeffrey Epstein, among them alleged co-conspirators and victims, has sparked intense speculation, especially concerning the tech industry's elite. High-profile tech figures like Elon Musk, Bill Gates, and Mark Zuckerberg have had varying degrees of association with the disgraced financier. Gates's ties to Epstein have been heavily scrutinized and reportedly contributed to his divorce. The list, set to become public next year, could implicate several major tech moguls, signaling potential fallout for Silicon Valley's most powerful.
- Epstein's influence extended into Silicon Valley's high society, where he forged connections with technology leaders, and some of his relationships, such as with Bill Gates, have already faced public scrutiny.
- Although the exact contents of the list are unknown until its release, the inclusion of Silicon Valley figures could have significant implications for their reputations and the tech industry at large.
SEED Program Boosts African Bitcoin Miners
The Green Africa Mining Alliance (GAMA) has launched its Seed Program to support emerging African bitcoin miners with equipment and resources, targeting those who face obstacles such as lack of expertise, regulatory knowledge, and equipment acquisition.
- The program offers selected miners with five ASICs at discounted prices, with the potential to receive additional ASICs after proving their hash rate.
- GAMA is fostering a community through events like the AfroBitcoin Conference and Africa Bitcoin Mining Summit to encourage growth and collaboration in Africa's bitcoin mining sector.
- With initiatives like the SEED Program and the establishment of mining pools, Africa's bitcoin mining industry is poised for significant expansion, aiming to increase its global hash rate contribution beyond the current 1%.
Mining The Future: Bitcoin's Halvening Battle
The impending Bitcoin halving poses significant challenges for miners, focusing attention on energy costs as the pivotal factor for survival. Bitcoin Magazine outlines the various scales of mining operations and their profitability across different energy rate categories in the U.S., emphasizing the strategic importance of geographical location. With the halving set to possibly cut mining revenues in half, miners must optimize operations and engage in 'jurisdictional arbitrage' to find affordable energy and ensure profitability.
- In the face of the halving, industrial-scale miners in 40 states could remain profitable due to lower negotiated energy rates, while residential and commercial miners face a starker outlook.
- The article stresses that despite the potential for unprofitability, strategic location and energy cost management will be key for mining operations to endure the challenges and maintain success in the competitive environment.
The Goxfather: Jon M. Chu Tackles Bitcoin Exchange Scandal
Jon M. Chu is set to direct a biopic titled The Goxfather, featuring the story of Mark Karpeles, the entrepreneur who ran the major Bitcoin exchange Mt. Gox before it dramatically collapsed.
- The movie will explore the rise and fall of Mt. Gox, which once was the world's largest Bitcoin exchange, until a massive hack led to a loss of $500 million in bitcoins and Karpeles's legal battles.
- Acclaimed for directing Crazy Rich Asians, Jon M. Chu's attachment to The Goxfather suggests it will provide a compelling narrative of one of cryptocurrency's most notorious scandals.
https://geektyrant.com/news/jon-m-chu-developing-bitcoin-inspired-biopic-the-goxfather
The Faketoshi Controversy: Craig Wright's Questionable Claim to Bitcoin's Creation
Craig Wright, an Australian computer scientist, has repeatedly claimed to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin. However, investigations and analyses consistently debunk his assertions. Wright fails to provide compelling evidence, such as signing a known Satoshi Bitcoin address or moving any known Satoshi bitcoins. Instead, several forgeries and fraudulent documents have been attributed to Wright's efforts to support his claims.
- Numerous experts, early Bitcoin contributors, and industry observers do not acknowledge Wright as Satoshi, highlighting his technical inadequacies and inconsistencies with the real Satoshi's known traits and capabilities.
- Wright's involvement in various lawsuits and spurious claims has intensified skepticism about his identity as Nakamoto, with even judges noting the implausibility of his claim.
- Yearly developments since Wright's initial claim in 2014 have only deepened the controversy, often marked by self-contradictory statements, debunked forgeries, and a lack of substantial evidence supporting his assertions as Satoshi.
Braidpool: A Potential Game-Changer for Decentralized Mining
Kulpreet Singh has received a grant to advance Braidpool, a fully decentralized mining pool protocol designed to enhance the decentralization of the mining ecosystem. Unlike centralized mining pools, Braidpool facilitates each individual miner to run their own node, construct their own block templates, and implements a blockchain of "weak blocks" to track workers' contributions. To distribute rewards, Braidpool uses a non-custodial, multisig threshold model, allowing miners to cooperatively manage payouts. However, the protocol faces challenges in bootstrapping without a central company to absorb initial instabilities.
- Braidpool aims to address centralization issues in mining without reliance on a central entity, in contrast to other pools like Ocean, which still maintain some central functions.
- The protocol suggests financial instruments to hedge against the bootstrapping risk, which may encourage participation from miners and market makers.
https://bitcoinmagazine.com/technical/braidpool-a-second-competitor-in-decentralizing-mining
Coin Cloud Cybersecurity Breach Mystery
Bitcoin ATM company Coin Cloud suffered an alleged data breach, with hackers claiming to have stolen personal information and photos from customers. Despite an investigation, the details of the breach, including timing and perpetrators, remain unclear.
- Unknown hackers allegedly accessed data from 300,000 customers, including sensitive personal information.
- Coin Cloud experienced multiple hacks in the past, and the breach may involve previously stolen data amidst inadequate cybersecurity measures.
Environmental Impact of Euro Banknotes
Using euro banknotes for a year has a minimal carbon footprint, roughly equivalent to an 8 km car journey or 0.01% of an average person's annual carbon consumption, as per a study from European financial institutions.
- The study takes a comprehensive look at the life cycle of euro banknotes, considering stages from production to disposal, identifying ATM usage and transportation as major contributors to the environmental impact.
- Efforts have been made since 2004 to reduce this footprint, including the use of sustainable materials and improved energy efficiency in ATMs, achieving a 35% reduction in ATM-related environmental impact.
https://www.finextra.com/newsarticle/43416/how-sustainable-is-payment-by-cash