Some financial agencies are moving past the critical and hesitant stage of dealing with Bitcoin into a more tolerant and regulatory phase. The idea is to make the Bitcoin market less susceptible to fraud and crashes, but enthusiasts fear that too much regulation will squash the cryptocurrency.
No matter how you look at it, mobile mining just doesn't add up, says Lookout, which noted in a blog post that "we just don't see a situation in which mobile miners can truly be profitable."
Scammers who take over smartphone processors can use them to mine for bitcoins, and they can generate a good amount of value too--if they commandeer more than 14 million devices. That's the number of Galaxy S3s needed to mine a single bitcoin in one day, according to a blog post from cybersecurity firm Lookout.
A rather basic phishing scam, aided by a U.S. Marshals Service gaffe, scored around $60,000 worth of bitcoins from an investor. While the attack relied on social engineering, according to the Wall Street Journal, the transient nature of Bitcoin made the caper possible.
Extortion, once the tool of neighborhood mobsters, has found its way to the digital realm. Some online scam artists are using the shroud of Bitcoin to exact tributes from innocent business owners across the country.
A doomsday scenario for Bitcoin called a "51% attack" became a distinct possibility June 13 as Ghash.io attained and surpassed control of that portion of the cryptocurrency's total hashes, or mining processes. Once a pool reaches that margin, the group can alter or block transactions, duplicate bitcoins and basically act as a control center for the currency.
The Office of the Inspector General at the National Science Foundation suspended a researcher following the discovery that he had commandeered supercomputers at two universities to mine for bitcoin, according to the agency's semiannual report furnished for Congress.
CrowdCurity, which serves many Bitcoin-based clients, has modeled the idea of decentralization and crowdsourcing to create a marketplace that helps find and fix vulnerabilities a company could potentially face on an international scale.
According to a report released by an anonymous writer who claims to have interest in the bitcoin market, someone--either a hacker or an entity inside the company--was able to create dummy accounts, referred to as "Willy" by users familiar with their activity, and siphon coins away from the market while also artificially raising the cryptocurrency's value last November.
Representatives from several U.S. state governments have created a coalition to create the first bitcoin rulebook.