do you want to win some cryptcurrency? im giving away some ethereum, all you have to do, is subscribe to this channel and follow me on twitter And youre in the draw

This is the crypto hour news, we have the US Marshall auctioning millions of dollars of bitcoin, exchnage hacks all over the place, an overload of nonsense from CNBC its all, coming up Good evening and welcome to a recap of the week in crypto, first up this week The US marshals have announced that on march 19th, they are goin to auction off close to 2200 bitcoin, worth around $25 million How the Marshals ended up with these coins is a little vague, they said the coins were confiscated in "connection with various federal criminal, civil and administrative cases Of course they were Its quite common for the US Marshalls to auction off bitcoin, Just last month, they auctioned more than 3,500 bitcoins worth around 35 million dollars But, The most famous auction was when Tim Draper won the bid for 30 thousand bitcoin back in 2014

Those coins were worth around 20 million at the time, but now they are worth around 280 million dollars Not a bad bit of business Now wonder he looks so happy The whole story is quite funny, from how they decided to bid, to finally receiving the coins You can read the written article by Tims son, Adam, in the description below Apparently after they won, when the Marshalls were sending the coins over , they were verbally confirming the bitcoin address over the phone, now a bitcoin address isn’t john at gmail

com, they look like this, right? Imagine the panic and anxiety, confirming this address, over the phone, for a value of 20 millions of dollars, and if you make a mistake, they are lost forever Ok, the address is, 1, 2, no, its 1 and then theres a 2 after it, yeah yeah, 12o, wait lower case o, not an upper case o And then to top it off, the Marshals didn’t pay a mining fee, and when you don’t pay a fee, the miners practice good business, by putting your transaction to the back of the line, they take care of the ones who paid up first, and they get to your transaction when they can, so the transaction which should’ve taken seconds to show up, took an hour to start showing up Coinbase are back in the news A class action lawsuit has been filed against the cryptocurrency exchange A class action lawsuit is bsically when a group of people with the same issue, group together to sue a single party The lawsuit has been filed against Coinbase, over alleged insider trading during their launch of the alt coin, called bitcoin cash Bitcoin cash is an alt coin that was forked from the main bitcoin chain in November of last year, and Coinbase always said they would support it, they said January 1st 2018 was the day the service would go live

And as you will see, that date of January 1st is important Because in mid December, the price of bitcoin cash spiked up, just before Coinbase surprisingly launched it on December 20th 2 weeks earlier than the public expected Accusations were spread all across social media, that suggested someone somewhere was sharing insider information Coinbase said they were gonna conduct an investigation into its staff, but the plaintiffs complain that as a result of the alleged manipulation, their trades were executed at an artificially inflated price And not at a fair market price, and as a result, they ended up paying a lot more than they should have

What do you think? Do you think it was insider info? Leave your thoughts in the comments So far theres no date scheduled for the case, but Ill keep you guys updated on it, as we hear more A really interesting announcement was made this week, from the Marshall Islands, they can be found in the Pacific Ocean, somewhere between Hawaii and Australia They are probably best known, for infamously being the testing ground for American Nuclear weapons in the 50’s These photos are iconic The biggest one was in 1954, a nuke which was a thousand times more powerful than the bomb dropped on Hiroshima, vaporized several of the islands But this week they announced they plan to issue their own new cryptocurrency, it will be the worlds first legal tender, issued as a cryptocurrency It gonna run alongside the US dollar as their legal currency, and will be issued as an ICO or initial coin offering, so anyone can buy some, and every resident on the islands, will receive an allocation, for free

The government hopes in time, to integrate blockchain much more into the community, with a view to using it for licensing, ownerships and voting Its only a matter of time too, before the rest of the world follows suit Our main story this evening is about exchanges Exchanges are simply places where you can send your coins and exchange them for other coins So you can send bitcoin to these websites, and exchange that bitcoin for litecoin or etherum, or dogecoin etc the list goes on But this week we had a few scares, so, everywhere I read, there’s people complaining about exchanges losing their customers coins, or not being able to access them

Unfortunately the truth is, if you leave coins on an exchange, you’re the one that runs the risk The whole idea of crypto is to be able to control your own money and be able to spend and use it as you wish, if you leave your money on an exchange, access to your money, is now at the will of the people who run those exchanges, and you can only get it, with their permission Try to withdraw your money, and see how long it takes, because they see your request come in, but they don’t rush to get your money withdrawn, they get to it when they feel like it Or when they have time They don’t owe you a quick withdraw, and people need to understand that

The biggest problem of being on an exchange, is that all of your money is in a centralized place If the exchange gets hacked, the hackers have access to everybodys money It’s a single point of access for a hacker, and a single point of failure for the business Its actually pretty common for exchanges to get hacked, if you spend enough time in crypto, you will see exchanges come and go, heres a list of exchanges, see how many have you actually heard of? These all came and went, some on really bad terms, most with no terms or warning, one day they just unplugged their servers and disappeared forever you ever heard of coined up, coinex, coingather, coins-e, cryptorush, moolah, mintpal, cryptsy – known to many, as craptsy, but that was considered a legit exchange back in the day, the owner was publicly known, and then they disappeared off the face of the earth with no warning Anyone who has been around for 4 years will know most these names, because everyone got burned at one point or another

But then you have the huge exchanges who didn’t do a runner with everyones money, instead they got hacked and just lost their customers money instead Mtgox lost 850 thousand of their customers bitcoin, 200,000 have since been found, and I need you to remember that they found 200,000 btc for later, but they still lost 650,000 coins in total Bitfinex who still operate today and do huge volume, lost 120 thousand coins bitgrail just this year, lost $195 million dollars worth of coins The thing is, on a lot of exchanges, you don’t actually know who is running them, For all you know, they could look like this guy And I know what youre thinking, nobody who owns an exchange looks like this guy You see one time many moons ago, I trusted an exchange, it was called mintpal and to be fair, it was a pretty epic exchange, it worked smooth, it was fast and the interface was really clean, it was everyone’s favourite exchange in crypto by far until it wasn’t and that’s when everything started to fall apart

Back to our buddy here, he owned and ran mintpal his name was Alex green, or was it ryan kennedy, or maybe it was ryan gentle, at this point I dunno he was alleged to have used all them names in different scams before he got into mintpal by the way, when researching this story, I came across this article in the sun, which is probably the worlds worst newspaper but with the worlds greatest description of bitcoin “Bitcoins are an alternative currency created by computer geeks and only exist online” Incredible stuff But anyway back to mintpal and ryan gentle, credit where its due, Ben Dornberg who one of the main dogecoiners at the time, saw right through it, and finally Ryan on a video call and called him out the reason I bring it up, is because this week, the crypto exchange Binance, was rumoured to have been hacked, but what really happened was people weren’t as secure as they should be with their account and funds, hackers engineered a way to steal their money, through users accounts, via weak security without having to hack the actual website itself Its kinda like when your email gets hacked, its not gmails fault, its usually because your password was like abc1 and a hacker figured it out Its the same thing But to binances credit, they reacted with amazing speed and for the most part, they saved the day for a lot of people, they reacted within a minute or two, an shut everything down but users of their website, still blamed binance, even though Binance were incredibly efficient with it And remember that fact as well, that binance saved the day for many, because that’s also relevant in a piece later Look, Its your money, you wouldn’t leave it sitting on the floor of a bank lobby, just because its convenient, to have access like that, because you know it would be taken, crypto is the same thing, protect your coins and add that extra layer of security, People think its inconvenient, to have to spend an extra 5 seconds to have an added step to log in to your account more securely, but its worth having So to close this piece out, Ryan Gentle has since been arrested and locked up for 11 years for several counts of rape, so my point stands, do you know who you are trusting to hold and store your coins on an exchange? If you don’t, it’s the same as you trusting a stranger out on the street to hold your cash wrapping a little chain around it And hoping he cant snap the chain If you don’t know who owns the exchange, or even if you do, get your coins off the exchange and into a personal wallet, until the time comes that you want to sell, then just send them back Protect yourself, because the biggest strength in cryptocurrency is that you have control and its not centralized, when you put a coins on an exchange, you give up both of these benefits, ill finish this segment by letting Ryan Gentle tell you exactly how scammers feel about you

And finally this week, CNBC have once again proven their lack of knowledge, So here is an article from cnbc suggesting that the bitcoin price drop recently is from the SEC news the SEC is the security exchnage commision, and they have been making rules about making exchanges more regulated So they think that people are selling because of this which is a believable reason if you are out of the loop Personally, I think its them just guessing, First of all, why would bitcoins price be affected by exchanges getting regulated, getting regulated is good news, it’s good news that the sec are trying to get rid of bad actors, its kinda like the government issuing food guidelines so you aren’t buying mouldy food, mouldy food might lose value, but good food isnt going to And secondly, I mentioned earlier Mt gox who had lost 850,000 bitcoin and found 200,000 of them Well, those 200,000 coins are only now being sold to pay back losses But, they are selling them in huge clumps, they have sold 35,000 bitcoin, on the market since December, and that’s when price started to turn Something like that is gonna drive price down severely, most things like this are generally done, over the counter between two parties, or like the Marshalls are doing, and auction them off that’s a far more likely the reason that the price is coming down, add to that, the number of traders with no experience, and fear becomes another ingredient, driving down price When it rains is pours though, and I have another CNBC example, if you recall earlier I said how binance wasn’t hacked, and that the exchange saved a lot of people, and a lot of customers their money, and that people just had bad personal security? Well heres CNBCs actual crypto guy, saying the exchange was hacked, its amazing gary veynerchuck puts it brilliantly here what he said was, theres a whole lot of people with whole lot of opinions about things they have never done, so be careful where you get your info What do you think about why the price is going down? Leave your thoughts in the comments below And click this circle right now to subscribe, have you done it? Good, don’t forget to enter the draw to win the ether, all you need to do, is subscribe here and follow on twitter, and retweet the competition tweet Have a lovely weekend Thanks for watching and ill see you next week