Bitcoin: Lost passwords and lost wealth

Those who own Bitcoin get rich the way the value of this cryptocurrency grows, and the question arises as to how many of those who lost their wealth after forgetting the passwords for their digital wallets.

Many were careless at first, since Bitcoin was not worth much, and they did not care where and how they store passwords.

Among them is Stefan Thomas, a programmer from Germany, who these days is trying to remember the password that keeps cryptocurrencies worth about 220 million dollars.

With the help of a lost password, he could unlock a hard drive, also known as IronKey, which keeps the private keys for a digital wallet containing 7,002 Bitcoins.

Thomas lost a piece of paper on which the password was written a few years ago.

There are a total of ten attempts before the wallet is locked forever, and he has tried eight so far.

This is not the only case, as many have locked their Bitcoin treasures behind forgotten passwords.

It is estimated that about 20% of the existing 18.5 million Bitcoins are locked, and the current value of that amount is about 140 billion dollars.

Wallet Recovery Services, a company that helps recover lost keys to digital wallets, receives about 70 password recovery requests a day, three times more than a month ago.

The process of revealing lost passwords is very complex, so there are often no results.

This story is reminiscent of the first Bitcoin transaction, which occurred when in 2010 two pizzas were exchanged for 10,000 Bitcoins.

“I give 10 thousand Bitcoins for two pizzas”, wrote Laszlo Hanyecz on the forum back in 2010, and specified that he wants two big ones, and that he would have something left for the next day, because “he likes to nibble on leftover pizzas”.

They were the most expensive remains in the world. He left the suppliers of the desired food to choose whether to buy it or make it themselves, and two days later – on May 22, 2010, Jeremy Sturdivant (Jercos) called and became the first to sell some physical goods for Bitcoin.

That day is marked today as Bitcoin Pizza Day.

Hanyecz’s 10,000 Bitcoins were worth about $25 at the time, and he mined them at his Florida home while exchanging messages with Satoshi Nakamoto, the mysterious father/mother of the currency.

He remembers that at that time, only twenty people exchanged Bitcoins among themselves, and many miners shared them for free, since they wanted to promote the online currency.

Then it occurred to him that it would be great to exchange Bitcoins for some physical goods, so the mentioned historical crypto-moment was created.

Nobody knows what happened to Bitcoins, who were paid for two big pizzas eleven years ago, so many assume that they are locked somewhere.

Developer Thomas has stored his IronKey in a safe place, away from home, and is waiting for cryptographers to figure out a way to recover forgotten crypto-passwords.

A Disc That Keeps Bitcoins Now Worth $280 Million

The British programmer, who accidentally threw out a hard drive with Bitcoin on it, again called on the local city authorities to allow him to look for it at the location of the landfill.

James Howells, a 35-year-old IT engineer from Newport, Wales, says he discarded the device while cleaning his home in 2013. He claims that he had two identical laptop hard drives and that he mistakenly connected the one that contains the cryptographic “private key” needed to access and spend his Bitcoins.

After all these years, Howells is still convinced that he will be able to recover Bitcoins. Although the outer part of the hard drive may be damaged and rusty, he believes that the glass plate inside is still intact.

There is a good chance that the board inside the plant is still intact,

he told CNBC.

Data recovery experts could then rebuild the drive or read the data directly from the board.

Howels says he had 7,500 Bitcoins that would be worth over $280 million at today’s prices. He says the only way to get back to him would be through the hard drive he threw in the trash eight years ago.

But he needs the permission of the local council to search for landfills that he believes contain lost hardware. The landfill is not open to the public and disturbing the property would be considered a criminal offense.

He offered to donate 25% of the total amount, worth about 70.8 million dollars, to the “Covid Relief Fund” for his hometown if he manages to dig a hard drive. He also promised to finance the excavation project with the support of an unnamed living fund.

But the Newport City Council has so far rejected his requests to inspect the landfill, citing environmental and funding concerns. And it doesn’t look like local officials will leave soon.

As far as I know, they have already turned down the offer

said Howells.

Without even hearing our action plan or without being given the opportunity to present our mitigation to our environmental problems, they simply keep saying no every time.

A council spokesman told CNBC that he had been “contacted several times since 2013 about the possibility of finding a piece of IT hardware said to contain Bitcoins”, and the first was “several months” after Howells first realized the drive disappeared.

The Council has told Mr Howels on several occasions that excavation is not possible under our permit, and excavation alone would have a huge impact on the environment.

he said to CNBC.

The cost of excavating the landfill, storing and treating the waste could cost millions of pounds – without any guarantee that it will be found or that it is still in good condition.

It’s not hard to imagine why Howells would want to save the equipment. Bitcoin prices have risen in recent months, reaching a high of close to $42,000 last week before a sharp withdrawal.

The New York Times reported on Tuesday that the developer in San Francisco was locked with 7,002 Bitcoins – today worth about 267.8 million dollars – because he forgot the password needed to unlock the small hard drive that contains the private key of the digital wallet.

The dark market collapsed, the largest market on the dark web

The Dark Market, the largest illegal market on the Dark Web, was destroyed in an international operation by Europol, which included Germany, Australia, Denmark, Moldova, Ukraine and the United Kingdom, as well as the United States.

A statement from Europol states that the demolition of the dark market was done with the help of their special operational analyzes and coordination with the mentioned countries.

Dark market had 500,000 users, more than 2,400 sellers and about 320,000 transactions, and 4,650 Bitcoin and 12,800 Monero transfers(Monero – digital cryptocurrency) were made.

According to the current value, this amount is more than 140 million euros, adds Europol.

Vendors in the dark market mostly traded in various types of drugs, counterfeit money, fake or counterfeit credit cards, unmarked SIM cards and malware(software made for malicious purposes).

German police conducted an investigation in the city of Oldenburg, where they arrested an Australian who was the alleged operator of the Dark Market, near the border with Denmark, and more than 20 servers in Moldova and Ukraine were seized.

What is DeFi? – Decentralized finances

Decentralized Finance(DeFi) is the merging of traditional banking services with decentralized technologies such as blockchain. DeFi can also be called Open Finance because of its inclusive format. Most importantly, the DeFi community seeks to create alternatives to every financial service currently available.

These services include items such as savings and checking accounts, loans, asset trading, insurance and more. DeFi continues to play an important role in the evolution of the financial sector for many reasons.

First, DeFi expands the functionality and reach of money. Since you only need a smartphone to participate in the DeFi sector, there is huge potential for expanding the global economy.

Accordingly, analysts see this sector as one of the most important currently in development in the crypto space. This commitment to the development of the DeFi ecosystem is easy to recognize. Most importantly, DeFi is the fastest growing sector in the blockchain.

According to recent reports, DEFI tokens are consistently outperforming their counterparts. In addition, as this time period marks the beginning of this phase of integration, the market now has a unique opportunity to see a whole new industrial boom.

What are Dapps(decentralized apps)?

DeFi is highly dependent on Dapps. To understand DeFi’s capabilities, you need to understand the concept behind Dapps. Dapps are programs designed to operate within decentralized networks. These networks can be blockchains, Tor networks or Distributed Ledgers Technologies (DLT).

A key component of these protocols is their decentralized nature. There is no central authority, corporation or agency that oversees and approves the business functions of these applications.

In fact, Dapps needs very little human intervention. Instead, these platforms integrate advanced smart contracts to simplify their business systems. Smart contracts are pre-programmed protocols that are launched upon receipt of crypto-data at their address. Smart contracts are most important for performing a large number of different tasks, from customer approval to payment.

There are more DeFi applications today than ever before. These applications already save business and time and money for customers. In fact, DeFi platforms have started to appear in almost every financial sector. As the DeFi sector expands, it is important to understand what the characteristics of all DeFi Dapps have in common.

Here are the most common Dapps properties

The DeFi application should be open source. Open source coding refers to the fact that the coding is public. In this way, anyone can revise it and confirm its functionality, security and capabilities. Open source is much more stable and secure than private code because of this interaction in the community. In addition, it provides more trust in the platform, because users can be sure that there is no hidden malicious encryption in the background.

DeFi provides the world with a new level of transparency. Because most DeFi applications run on public blockchains such as Ethereum, all transactions are publicly available. In fact, all blockchain activities are public. The main difference in this approach compared to a traditional bank account is that the accounts are not directly linked to anyone. Instead, accounts are pseudo-anonymous and contain only a numeric address.

Although accounts are not directly linked to anyone’s name, researchers can specifically determine who owns them if necessary. Programs like block researchers can help people track and monitor decentralized coin transactions that are not focused on privacy. Dapps is an extension of the way developers envision financial platforms.

Anyone from all over the world can participate in DeFi platforms

All you need is a smartphone with Internet access and you can enter the DeFi community in minutes. Accordingly, DeFi Dapps have the opportunity to provide non-banks around the world with access to financial services for the first time in history. This openness is a major upgrade of the current banking system, leaving about 40% of the world’s population without any form of banking.

It is important that when you think of the non-banking population, it is easy to imagine a village somewhere in the tropics or the desert, but the reality is much different. For example, a recent study found that 25% of U.S. households are left without bank funds.

In these locations, DeFi has an immediate effect. The DeFi sector operates without a door guard. As such, anyone can develop a DeFi application and offer it to the world. In addition, anyone can participate in DeFi Dapps without worrying about approval.

This strategy is far from today’s financial system that requires potential users to go through countless systems of regulatory verification before they can participate in the global economy. Another pillar of the DeFi community is interoperability. Interoperability is crucial because it ensures that, as more developers enter the space, all previous work is not lost. Instead, users can stack their DeFi products.

Miners Excave Treasure From Armchair: Earnings from drastic Bitcoin jump exceed imagination

In the last month, salaries have been the highest since 2017.

Bitcoin has paid off extraordinarily this year for everyone who dug it, so their highest recorded income in 2020 was on December 3, two days after this cryptocurrency reached a value of $19,700.

So, the “miners” put a total of 21.76 million dollars in their pockets that day. In November alone, they earned $550 million from the successful listing of this risky asset, which is booming in times of crisis.

According to the data of the consulting company “Bankr”, between November 9 and December 8, Bitcoin miners earned 551.45 million dollars. Daily turnover averaged $18.38 million, and to better understand how miners profit from Bitcoin growth, here’s a simple equation: they make money when they successfully make the next block of transactions.

Will classic money die?

Bitcoin “pulled” the record from 2017 for a long time, and then high mining fees came this year, when the value of Bitcoin approached $20,000. This means that in the last month, the salaries for miners are the highest since 2017.

Many investors have remained loyal to him since he appeared, moreover, they continued to buy Bitcoin when it was at its lowest levels. The growth of the income of these miners now encourages others to place their trust in the most popular digital coin.

It is not negligible that the miners, less than six months ago, received half as much Bitcoin for one completed transaction. Max Kaiser firmly believes in Bitcoin and believes that it is only a matter of time before he replaces the so-called “fiat money” (classic money, which the governments have declared a legal tender).

Fighting Fraud in the Bitcoin Industry


Blockchain usage and applications increased exponentially in recent years and experts are also calling it to be the 4th industrial revolution. That’s pretty great! Right? But that’s not coming this easy. With more and more users and service providers there come more and more black sheeps, trying to sabotage the network for their own benefits and scamming users on the network.


There have been seen some frauds that really trapped users and got them really bad damages. Some of them are,

Ponzi scheme

Ponzi scheme or more commonly pyramid scheme is one of the biggest monetary frauds schemes. It generates money for earlier investors from the later ones and the cycle goes on and on. This seems like affiliate marketing but in the end the later investors are on loss. To the investors it seems like the sales or operations are making the profit but lesser they know that only the new investors are generating the funds earlier ones.

Fake ICOs

ICO or initial coin offerings are a way for companies to generate capital. With the boom of blockchain more and more companies are offering ICOs and customers can now easily back their favourite businesses. But there are fake ICO websites of fraudulent companies that look really like the authentic ICOs and are looting innocent consumers.

Centra Tech for example, was sued in the US in 2017 for lying about their team, misleading investors and scamming them.

Exchange Scams

Despite being online there are many crypto coins run by exchanges and since there are no or less monitory bodies for crypto exchanges they are the best to loot people. They lure customers with their prices and profits and when they sign up to these exchanges they are left with nothing but regrets. In December 2017, there exposed a large number of such exchanges in South Korea and people were left with monetary loss only.

More disguised and almost clue less frauds are the mixture of multiple scams. Like for say, a fake ICO with a Ponzi scheme is going to damage more people and will be really hard to be found and avoided.


There are companies making the payment processing more secure, that result in less fraud chances and more user trust. One of such companies is CoinTandem, a subsidiary of Tech ViewOU run by Yotam Namir, Robert Provorov, providing some of the best services for crypto trades. Some of which are,

Standalone Exchange

For every transaction on the platform, customers are required to use their authenticated bitcoin wallet, making the transactions more secure and traceable.

Enhanced KYC protocol

Their enhanced KYC (know your customer protocol) ensures top tier security. It checks and 100% clarifies who is using the system and asks for digital signature as proof.

No Cartels

They ensure that the buyer is not buying the coins as a face for some third party and is the sole owner of the wallet they are buying in.

First step to prevent frauds is to accept that cyber-crimes are crimes too. Guys at CoinTandem have realised this and are working with state-of-the-art fraud prevention technology and are acing it.

How to successfully and easily invest in Bitcoin and cryptocurrencies: 5 steps for beginners

We are in a historical moment when paper money that has ruled the world for hundreds of years gives way to new forms of payment – cryptocurrencies. Given the recent developments around the steep rise in the price of BitCoin (BTC), it is time to point out more advanced ways of investing in cryptocurrencies that are not so covered by the daily media, namely the Initial Coin Offer (ICO).

What is an ICO?

ICO or “initial coin offer” is the initial offer of cryptocurrency. The term is defined as investing in startups based on a very similar technology to Bitcoin. New cryptocurrencies are extremely unstable and therefore (with successful ones) it is not uncommon to see an increase of 500% per day.

The following are examples of some ICOs that have had extremely high growth:

  • NXT – return on investment 1477x
  • IOTA – 332x
  • Ethereum – 152x
  • NEO – 114x
  • Stratis – 84x

If you had invested $ 1,000 in one of these ICOs, for example, you would now have $ 84,000 to $ 1,477,000.

Here’s how to invest in one of the ICOs:

Step 1. Open an account on Coinbase

Coinbase is an American exchange office that allows us to exchange money for one of 4 cryptocurrencies – Bitcoin (BTC), Litecoin (LTC), Ether (ETH) or Bitcoin Cash (BCH).

Step 2. Open an account on MyEtherWallet

MyEtherWallet or MEW is your “wallet” for Ether currency (ETH) and for all tokens (coins) you will receive when investing in ICO.

Step 3. Choose the right ICO

This is the most important step and if this step is done well you can get your money back many times over. If you don’t do it well, you can lose it.

Some of the things to look for when choosing an ICO are: the team behind the ICO, what stage the project you are investing in is, what the media is saying about the project, what technology is behind the project, and many others.

Step 4. Replace tokens for cryptocurrencies at the right time

After buying tokens (investing in ICOs) you can buy and sell them after the ICO is over. You choose how much return you want and determine at what return you will sell your tokens that you received through the ICO.

The mistake that many people make is to: a) invest in an ICO too late b) sell their tokens too early and not make the profit they could have made.

Step 5. Sell for ordinary money

The last step is to sell the cryptocurrency for ordinary money and return the money to the current account.

These are (simplified) necessary steps to invest in your first ICO.

If interested in learning more, check out the resources we use to learn and grow our crypto knowledge:

Who Is The Creator Of Bitcoin?

In May 2010, Laszlo Hanyecz bought two pizzas worth $30 with Bitcoin. What started as a fun test ended up being one of the biggest crypto-trends of 2020.

Nobody knew about Bitcoin a decade ago. Today it’s everywhere, and very few haven’t heard of it. The creators inspired in a technology they researched since the nineties: blockchain.

It’s been a long time since 2011, and we still don’t understand how Bitcoin works. We have an idea of what it does but have no idea of what its potential is. How has it become what it is today?

Bitcoin bases on Blockchain, like many altcoins. Yet, Bitcoin came first, and the others haven’t expanded nearly as much as BTC. Something makes it different from the pack.

If you research Ethereum, Litecoin, or Ripple, you’ll know everything about their origins and their founders. Bitcoin, however, has a mysterious creator.

Who Is The Creator Of Bitcoin?

If we knew about the creator and contact him, we would know much more about Bitcoin today. All we know is a name, Satoshi Nakamoto, registered on the domain.

The name stands for a person that may or may not exist. Although there are potential characters, nobody has enough evidence to be Nakamoto. The name is likely a pseudonym of the real person. Perhaps a group of talented coders.

It seems the creator of Bitcoin has no interest in revealing his identity. Who is Satoshi Nakamoto?

That doesn’t mean others haven’t tried. If you read Craig Wright‘s case, there’s evidence of people you might have involved in the project.

What Would The Creator Look Like?

What researchers found wasn’t enough to prove the identity. Hopefully, they will find information if they asked the closest people to that circle.

We know Laszlo Hanyecz as one of the first people who used Bitcoin. Researching further, they got to a bunch of potential profiles, being Craig among them.

Imagine someone claimed to be the creator. Even if they can prove it, it’s hard for investigators to verify it. First, it should match the description we currently have:


Whether it’s a tech team or a single genius, it takes innovation to create Bitcoin. You won’t invent it in your garage. At least, the creator would be an expert in computer science and peer-to-peer online networks.


We don’t deny that a single person could have created Bitcoin. It’s simply not probably. If the founder created this crypto-system to make money, you’d have heard about it.

Wouldn’t the creator be the first person to profit from Bitcoin? Some Bitcoin millionaires are Barry Silvert, Michael Novogratz, and Dan Morehead.

John McAffee is another Bitcoin enthusiast who owns a good chunk. He claims to know one thing or two about the creator, but there’s no evidence because he never spoke.

Due to the many people involved, Satoshi could likely be the Bitcoin founder, not who created the whole system. Many tech geniuses may have come after him to complete the project. Probably the ones who promoted Bitcoin in its early stage.

The Bottom Line

The Bitcoin creator will continue to be anonymous. The identity may not matter after all. Because what would you get representing a decentralized, anonymous trading system. It wouldn’t make sense.

He may still surprise us and reveal himself someday in the future. If he’s still involved, the project may still be running. What we’ve seen until today may only be the beginning of something bigger.

Everything You Need to Know About Cardano

What is Cardano?

Cardano is a platform that wants to bring together all of the cryptocurrencies in hopes of all of them working together in the future. It has a very participative budget, and the protocols are being updated based on the community’s acceptance. Their intention is to create a platform based on block-chain, to vote on Hard forks and Soft Forks. With it they bring a very malleable technology that is going to allow the exchange of protocols and technologies with cryptographic algorithms.

The Daedalus wallet also plans to embrace that cryptocurrencies, thereby enabling trades on the same network between them all. There will be some kind of shop inside the wallet itself, where you can install specific applications that should help manage finances and fund certain cryptocurrencies.

It has its own language called Plutus, but it also shares the language of Solidity used in Ethereum. Another thing we should refer to is that Ethereum plans to shift the agreement to Proof of Stake, Cardano already begins his project utilizing Proof of Stake.

Cardano also provides several innovations and possibilities that will help to ensure fairness and protection for both sides of transactions that need more formality and confidentiality, such as between banks or more traditional entities.

How does it works?

Cardano essencialy tries to resolve three main problems: Interoperability, sustainability and scalability.

Interoperability is when different types of cryptocurrencies can communicate between themselves, but since each type has their own individual protocols this process is impossible to manage.

The sustainability refers to the fact that the protocols are somewhat immutable making it not easy to change the protocols.

And finally the scalability refers to the fact that the network grows slower as it becomes bigger, which should work the entire opposite way.


Daedalus is the official ADA coin wallet, it is created on a fork from Electrum, web-based programming. As Daedalus has a universal purpose and is Open Source, it ends up detaching a little from Cardano itself and will become a very important independent tool in the future of crypts, as it solves the problem of interoperability.


Tokens are like other currencies created within the platform that Cardano offers. The purpose of the Token is to virtualize an asset or “thing” that is needed in the real world to perform the action that is now being done on the blockchain. It is as if the Token monetizes any action to facilitate the operation in the virtual application.

Smart Contracts

The creation of self-sustainable applications that will never be disabled. This happens due to the possibility of programming and building applications, with smart contracts, within the blockchain system, just like what happens on the Ethereum platform.

Positive points of the Cardano Project:

  • 3rd Generation: It has an open code and is already considered the third generation of cryptocurrencies.
  • Decentralized: Cardano wants to act as a digital currency just like Bitcoin.
  • Lots of support from third parties like this Cardano wallet.
  • Financial Freedom: Decentralization is the technology revolution, the digital age is totally revolutionary.
  • Fast transfers to anywhere in the world: Committed to speed, developers are looking at ways to make transactions faster without compromising the network.
  • Improvement: The project investigated the flaws of other cryptocurrencies and elaborated deeper functionalities on its platform.

How Much Is Bitcoin?

February 8th in the morning. Bitcoin is $9,800. Since the middle of December 2019, Bitcoin has gone from $7,000 to this point.

After it recovered in July, the crypto coin has increased its value with minor drops. It all started in 2019.

However, BTC stayed inactive for a long time in 2018. What’s causing this surge?

How Much Is Bitcoin In February?

What we’ve seen is consistent growth since the beginning of 2020. Two factors explain this positive trend.


Bitcoin is popular for being the less volatile crypto-currency. As transactions become more secure, more and more people will accept it for trading. It will bring more buyers, and the existing ones will rely more on Bitcoin.


Mining technologies are also improving. By the second half of 2020, most companies will start using a new method to make mining twice more efficient. It will make the coin more valuable and accessible.

Bitcoin In February: What To Expect?

We use to predict the market based on what we’ve seen recently. If the trend continues, people may mistakenly believe that it will stay like that forever.

In February, a surge has a higher chance than a crash. As long as there are more buyers than sellers, prices go up.

This market demand defines in three forms.

  • . How many people interact in the crypto markets?
  • . How often does an investor make a movement?
  • . How much Bitcoin do they buy or sell?

Quantity will always increase. Frequency depends on the investor impulsiveness. For example, most crypto news is designed to increase activity, so others either buy or sell.

Volume depends on the investor approach. A long-term thinker will probably invest heavily, ignoring the short-term events. Higher volume saves more costs.

Again, volume depends on confidence. You won’t likely see a daytrader throw millions. If you trade frequently, you have more costs and risks, which forces you to reduce the volume.

Bitcoin Based On Market Psychology

For many months, BTC has stayed under $7,000. It started surging two-three months ago. Most investors will have had enough time to participate.

But what could go wrong? Could the prices plummet? Only if buyers decide to sell, all at the same time.

Early investors will want to sell their Bitcoins once the price is high enough, causing it to go down. Inexperienced investors will sell to “protect themselves,” thinking it won’t recover. This behavior also makes the price decrease.

The question is, when will they sell? It depends on how people estimate the market ceiling. Bitcoin history shows it as $10,000. Recent researchers expect it to change to $100K.

All in all, people are optimistic about the future. Experts expect it to reach $15K in the first half and cross $20K before 2021. Some like McAffee think it’s an exponential curve, which is why it could even reach $1 million.

The daily prices may change a lot. Despite the ups and downs, Bitcoin goes up due to reasons beyond speculation. Technology improves. More people join the market every day.

The best way to profit in February is to be prepared. You can always sell, but buying Bitcoin may be too late. In 2020, investors will lose money because of not being in the game, not because of bad timing.

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