Bitcoin is losing its dominance over the crypto market

Cryptocurrency is a type of digital money which was designed for the security and in some cases maintain the anonymity of the user. This form of money is used in processes where people involve in cryptography the process of converting legible information into something that can hardly be cracked. Precisely this digital asset is virtual currency or an alternative currency. The need for Cryptography arose out of the need for secure communication during the World War II. In the digitalisation era Bitcoin was the first decentralized cryptocurrency. Post which several cryptocurrencies have been created. Bitcoin and its derivatives use decentralized control even after being opposed to centralized electronic money/central banking systems. After the bloody Unite the Right rally in Charlottesville Virginia in August technology companies tightened rules against hate speech and banned many extremists from using web hosting services social media platforms and online payment systems. But some on the farthest edges of the political spectrum soon found an effective tool for thwarting this industry crackdown: bitcoin. Even before Charlottesville Richard Spencer a prominent member of the alt-right a group that espouses racist anti-Semitic and sexist views and seeks a whites-only state had gone as far as declaring bitcoin the currency of the alt right. But far-right political leaders and experts on extremist movements alike say the adoption of bitcoin gained new urgency after Charlottesville as extremists looked for ways to operate beyond the reach of government control and the shifting policies of US tech companies. Read more A beginner s guide to buying bitcoin and avoiding scams Bitcoin price rising again after dramatic recent slide Bitcoin trading partially suspended as value of cryptocurrency plunges Those who began acquiring bitcoin in August already have reaped substantial returns despite the recent volatility in its price. In the months since demonstrators carried flaming torches and chanted Jews will not replace us bitcoin has quadrupled in value. The digital currency began trading on several mainstream financial markets this month pushing the price of a single bitcoin at times above 19 000. It was worth 16 000 at one point Tuesday. Extremist figures who invested in bitcoin as a bulwark against efforts to block their political activity now find themselves holding what amount to winning lottery tickets. The proceeds could be used to communicate political messages organise events and keep websites online even as most mainstream hosting services shun them experts say. Bitcoin is allowing people in the movement to go beyond cash in an envelope or a check said Heidi Beirich head of the Intelligence Project at the Southern Poverty Law Center a not-for-profit group that tracks extremists. It s really a godsend to them. First created in 2009 by an anonymous computer programmer bitcoin is a digital currency that is not issued by any government and has no physical manifestation such as actual coins or bills. Someone who wants to buy bitcoin can sign up for one of many online exchanges - each account gets a unique identifier of numbers and letters - and pay dollars (or other traditional currency) for the digital currency. People can also send bitcoin to others or conduct transactions at any of a growing list of businesses not-for-profit groups and financial institutions that accept it. A secure continuously updated ledger called the blockchain records all transactions in a publicly visible way assigning each an alphanumeric record. Unlike the closely government-regulated banking systems that record traditional financial transactions the blockchain is completely decentralised relying on complex mathematical calculations across countless computers worldwide. Such a system makes it difficult for regulators and law enforcement agencies to monitor assets or know the identities of particular account holders. It also allows fringe groups not only to collect money but to spend it more easily - for example on foreign online services if US companies restrict their access. World news in pictures 39 show all World news in pictures 1/39 27 December 2017 Pope Francis greets newlyweds during his weekly general audience at Aula Paolo VI in The Vatican AFP/Getty 2/39 26 December 2017 Rohingya refugees walk next to a pond in the early morning at the Balukhali refugee camp near Cox s Bazar Bangladesh Reuters 3/39 25 December 2017 Members of ice swimming club Berliner Seehunde (Berlin Seals) take a dip in the Orankesee lake in Berlin as part of their traditional Christmas ice swimming session in Berlin Germany Reuters 4/39 24 December 2017 Mourners carry the body of 19-year-old Mohamed Sami al-Dahdouh a Palestinian youth from Jabalia who was killed in clashes with Israeli forces east of Gaza City AFP/Getty 5/39 23 December 2017 Policemen evacuate a baby after the Cagayan River swelled caused by heavy rains brought by Tropical Storm Tembin. People have died and others are missing as the storm struck the southern Philippines unleashing floods and landslides across a region of 20 million people. AFP/Getty 6/39 22 December 2017 Carles Puigdemont gives a thumbs up after the Catalonia Regional Election results Rex 7/39 21 December 2017 A white SUV sits in the middle of the road as police and emergency personnel work at the scene of where it ran over pedestrians in Flinders Street in Melbourne. AFP/Getty 8/39 20 December 2017 This combination of pictures shows Syrians covering one eye with their hands in the rebel-held town of Douma as part of a campaign in solidarity with a baby boy Karim Abdallah who lost an eye as well as his mother in government shelling on the nearby town of Hammouria. AFP/Getty Images 9/39 19 December 2017 South Korean and U.S. Marines take part in a winter military drill in Pyeongchang South Korea REUTERS 10/39 18 December 2017 Belgian police officers stand guard outside the trial of Salah Abdeslam one of the suspects in the 2015 Islamic State attacks in Paris at a courthouse in Brussels Belgium Reuters 11/39 17 December 2017 Members of the International Space Station expedition 54/55 Roscosmos cosmonaut Anton Shkaplerov (C) NASA astronaut Scott Tingle (R) and Norishige Kanai (L) of the Japan Aerospace Exploration Agency (JAXA) during the send-off ceremony after checking their space suits before the launch of the Soyuz MS-07 spacecraft at the Baikonur cosmodrome in Kazakhstan Reuters 12/39 16 December 2017 The former wife of the late South African President Nelson Mandela Winnie Mandela (R) and the candidate for the African National Congress presidency and ex-wife of the incumbent South African president Nkosazana Dlamini-Zuma greet each other as they attend the 54th ANC National Conference at the NASREC Expo Centre in Johannesburg on December 16 2017. Thousands of delegates from South Africa s ANC party gathered on December 16 2017 for a five-day meeting to elect their new leader in a divisive race seen as a pivotal moment in the country s post-apartheid history. he winner will be well placed to be the next president but the ANC has lost much popularity since Nelson Mandela led it to power in the euphoric 1994 election that marked the end of white-minority rule. AFP/Getty Images 13/39 15 December 2017 Palestinian protesters wave the national flag during clashes with Israeli security forces near the border fence with Israel east of Gaza City as demonstrations continue over US President Donald Trump s declaration of Jerusalem as Israel s capital AFP/Getty 14/39 14 December 2017 Hamas supporters take part in a rally marking the 30th anniversary of the founding of the Islamist movement in Gaza City AFP/Getty Images 15/39 13 December 2017 Democratic candidate for US Senate Doug Jones thanks supporters as he holds his wife Louise s hand AP 16/39 12 December 2017 Ultra-Orthodox Jewish men gather during the funeral ceremony of prominent spiritual leader Rabbi Aharon Yehuda Leib Shteinman who died on Tuesday at the age of 104 in Bnei Brak near Tel Aviv Israel. REUTERS 17/39 11 December 2017 A Palestinian protester kicks a flaming tire during clashes with Israeli forces in the West Bank city of Ramallah AFP/Getty 18/39 10 December 2017 Demonstrators set US and Israeli flags on fire during a protest against Donald Trump s recognition of Jerusalem as Israel s capital in Istanbul REUTERS 19/39 9 December 2017 People gather to watch the bikers procession during the funeral ceremony in tribute to late French singer Johnny Hallyday in Paris EPA 20/39 8 December 2017 A Palestinian protester uses a sling to hurl stones towards Israeli troops REUTERS 21/39 7 December 2017 Firefighters monitor a section of the Thomas Fire along the 101 freeway north of Ventura California. Getty Images 22/39 6 December 2017 Palestinians burn an Israeli and a U.S. flag during a protest against the U.S. intention to move its embassy to Jerusalem and to recognize the city of Jerusalem as the capital of Israel in Gaza City Reuters 23/39 5 December 2017 Former Georgian President Mikheil Saakashvili flashes a victory sign after he was freed by his supporters in Kiev REUTERS 24/39 4 December 2017 A man exercises in a park on a winter morning in Kolkata India REUTERS 25/39 3 December 2017 A supporter of Salvador Nasralla presidential candidate for the Opposition Alliance Against the Dictatorship puts a balloon on the shield of a soldier in a protest while the country is still mired in chaos over a contested presidential election in Tegucigalpa Honduras REUTERS 26/39 2 December 2017 A man dressed as Santa Claus skiis down a mountain during the Saint Nicholas Day at the Alpine ski resort of Verbier Switzerland REUTERS 27/39 1 December 2017 A nurse takes blood for a HIV test for French President Emmanuel Macron as he visits the Delafontaine Hospital on World Aids Day Reuters 28/39 30 November 2017 An activist pours gasoline as an effigy of President Rodrigo Duterte and U.S. President Donald Trump burns during a protest action against Duterte s plan to set up a Revolutionary Government along a street in metro Manila Philippines Reuters 29/39 29 November 2017 South Korea s Hyunmoo II missile is fired during an exercise at an undefined location in the east coast of South Korea The Defence Ministry/Yonhap via REUTERS 30/39 28 November 2017 People fall as police fire tear gas to try control the crowd trying to force their way into Kasarani Stadium to attend the inauguration of President Uhuru Kenyatta in Nairobi REUTERS 31/39 27 November 2017 Rohingya refugee Amina Khatun 55 rests at the bank of the Naf river after crossing it on an improvised raft to reach Bangladesh in Teknaf. Two of her sons were killed by gun fire when her village was attacked by Myanmar military she says Reuters 32/39 26 November 2017 Mount Agung volcano is seen spewing smoke and ash in Bali EMILIO KUZMA-FLOYD/via REUTERS 33/39 25 November 2017 A Pakistani protester throws a tear gas shell back towards police during a clash in Islamabad AFP/Getty Images 34/39 24 November 2017 Zimbabwe s former vice president Emmerson Mnangagwa arrives ahead of his inauguration ceremony to be sworn in as president in Harare Reuters 35/39 23 November 2017 Comrades of missing crew members express their grief after the Argentine Navy announced that the sound detected in the missing submarine search is consistent with an explosion AFP 36/39 22 November 2017 Former Bosnian Serb military chief Ratko Mladic shouts at the presiding judge during the verdict hearing in his genocide trial in The Hague Netherlands EPA 37/39 21 November 2017 People and soldiers celebrate after the resignation of Zimbabwe s president Robert Mugabe AFP/Getty 38/39 20 November 2017 Israeli security forces carry away an Ultra-Orthodox Jewish demonstrator as they disperse a protest against Israeli army conscription in Bnei Brak a city near Tel Aviv AFP/Getty 39/39 19 November 2017 Participants crossing the Jiaozhou Bay Bridge as they compete in the 2017 Qingdao International Marathon on the Sea in Qingdao in China s eastern Shandong province AFP/Getty Google GoDaddy PayPal and others banned some far-right activists from their services after the Charlottesville rally saying they violated rules against hate speech. Spencer and others who have lost access to these services - a process they call being de-platformed - say they are effectively being denied free-speech rights. We have faced enormous problems from being de-platformed Spencer said. Bitcoin at least from what I can tell is not something from which we can be de-platformed. Extremists are hardly alone in benefiting from surging bitcoin values. Early buyers include cryptography enthusiasts libertarians and professional investors - as well as drug traffickers money launderers and others who regularly conduct transactions on the dark web a part of the Internet only accessible using specialised software that helps shield online activity. Also unaffiliated with the far right yet profiting handsomely is WikiLeaks founder Julian Assange who tweeted in October that US political pressure on traditional payment processors such as credit card companies to stop handling transactions for the site caused us to invest in bitcoin - with 50000% return. In a dig at policymakers who pressured the companies Assange expressed his deepest thanks. It s impossible to know how many on the far right are reaping bitcoin windfalls but researchers who monitor extreme political activity say they have detected a surge in transactions as people on the far right move assets into the digital currency and increasingly use it for ordinary business purposes. The SPLC is tracking roughly 200 bitcoin wallets - the way users store the currency online - that it says are held by extremists. Public blockchain records make such monitoring possible. Researchers can study the times dates and amounts of any transaction along with what accounts are involved. That does not include the actual names of account holders but such records can illuminate identities. The SPLC for example looks on the donation pages of extremist websites for bitcoin accounts that are seeking contributions. According to SPLC research among the most striking recent donations was 14.88 bitcoin paid to Andrew Anglin editor of the Daily Stormer a neo-Nazi online publication that lists a bitcoin account number online. The SPLC has labelled the Daily Stormer the nation s top hate site. Read more Bitcoin: Why has the cryptocurrency s value plummeted? The payment to Anglin came on Aug. 20 as the Daily Stormer - named after the Nazi propaganda tabloid Der Stürmer - was scrambling to recover after several Web hosting services kicked it off their platforms. Followers looking for the site at its familiar dailystormer.com address got error messages. The amount of the donation carried particular significance; 1488 is a reference to a Nazi slogan - 14 words long - about the importance of protecting a future for white children and 88 refers to Heil Hitler both words of which start with the eighth letter of the alphabet. At the time of the donation it was worth about 60 000. Had Anglin kept the entire amount it would now be worth about 235 000. Instead it appears that Anglin gradually spent down the donation as he worked to get the Daily Stormer back onto the Web according to John Bambenek a cybersecurity researcher and threat-systems manager at Fidelis Cybersecurity who tracks bitcoin transactions. But Bambenek said the account that made the 14.88 donation - whose owner is unknown - has gradually drained its value over a series of transactions. Bambenek said his research suggests that this account got its money from another far larger one now worth more than 45 million. The alt-right likes bitcoin the same way criminals and people on the dark Web like bitcoin Bambenek said. It s a great way to move around assets especially when you re under the threat of investigation. Bambenek has built a Twitter bot called the Neonazi BTC Tracker that automatically tweets a record of every transaction affecting 13 accounts he says are affiliated with known extremists and their websites. Bambenek said there is also evidence that Anglin and others are moving their assets into other digital currencies that are harder to track but have not been growing as quickly in value as bitcoin. Anglin in a phone interview with The Washington Post declined to confirm or comment on the 14.88 bitcoin transaction but he expressed frustration at Bambenek s Twitter bot saying that some of the information it tweets is inaccurate. Anglin also said he has used bitcoin almost exclusively since payment services blocked the Daily Stormer beginning in 2014. Bitcoin has helped out a lot Anglin said. Anglin was sued this year by the SPLC for allegedly inflicting emotional distress on a Jewish woman in Montana by unleashing a troll storm on her. In a Dec. 7 article on the Daily Stormer Anglin noted the surge in bitcoin value and said Thank you so so so much to the law centre for its long-running efforts to get him banned from mainstream payment services prompting his investment in bitcoin. (The Daily Stormer has said in court filings that its actions were protected speech and posed no real threat to the woman according to news reports.) The popularity of bitcoin on the political right is not confined to the most extreme elements. Conservative commentator Mike Cernovich - who co-sponsored the Deploraball to celebrate President Trump s inauguration but did not attend the Charlottesville rally and has distanced himself from anti-Semitic and white-nationalist figures - began touting the currency to his Twitter followers in September 2016 when it was worth about 600 per bitcoin. The goal Cernovich said was to protect himself from efforts by tech companies or payment processors to block his political activity. Read more Trump tax reforms will help boost oil business says Shell That was the only reason I got into it he said. I just got really really lucky. Conservative publisher Charles Johnson - whose WeSearchr bounty site has raised more than 150 000 for the Daily Stormer s battle against the SPLC as part of what Johnson calls his support of free speech - said he has advocated the purchase of bitcoin since 2015. That s the year Twitter banned Johnson for soliciting donations for taking out a Black Lives Matter activist. (Johnson said afterward that he was seeking not to incite violence but to spur an investigation he believed would undermine the activist.) Johnson said he has made substantial earnings on bitcoin investments and increasingly uses it to make donations to political leaders and groups. It s a form of digital gold Johnson said. It s not surprising that a lot of people on the political fringes would move toward an un-censorable currency. Spencer however said he did not begin buying bitcoin when he touted it in the March tweet. In recent months though he has set up several accounts to raise money for various sites and causes. I really wish I had bought more bitcoin Spencer said. I guess we all do. The Washington Post More about: Charlottesville Virginia bitcoin technology companies Silicon Valley cryptocurrency Reuse content