Bitcoin: More about philosophy than finance

Alan Feuer got it right in today’s NYTimes. The virtual digital currency Bitcoin was not chiefly created as a money-making venture.

“To its creators and numerous disciples, bitcoin is — and always has been — a mostly ideological undertaking, more philosophy than finance,” he writes.

All that we’re reading about Bitcoins getting stolen from digital wallets is not anywhere near as interesting as who is recognizing them as currency.

Bitcoin is news because it is disruptive. It embodies a throwing down of the gauntlet by a person or persons (Satoshi Nakamoto) fed up with how the global banking system _ comprised of “fiat” currencies created by nation-states – had fallen prey in 2008 to the machinations of greedy bankers and spineless politicians.

Satoshi was simply fed up with the banks deemed “too big to fail” that failed us all and whose bailout we bankrolled. Stateless digital currencies _ electronic cash as David Chaum envisioned it when he patented the idea in 1982 _ will allow us to develop new models for making payments that cut out the usurious middleman and democratize the economy.

And the key, of course, is public-key cryptography. Want to geek out on how a Bitcoin transation works?  Try this illustration from IEEE Spectrum: “The CryptoAnarchists’ Answer to Cash.”

 

The Most Important Snowden Documents Yet

I have always trusted Bruce Schneier, author of the much-respected 1996 “Applied Cryptography.”

Glenn Greenwald showed Schneier some of the Snowden documents that featured in today’s stories by The Guardian, The New York Times and Propublica. They are the most important, upsetting revelations to date from the Snowden trove. Without doubt.

The NSA, says Schneier, has been breaking most of the encryption on the Net.  He says the U.S. government has betrayed the Internet and we need to take it back.

Schneier summarizes what the NSA has done to make the Internet a more dangerous place and five ways to stay safe online:  Hide in the network. Encrypt your communications. Assume that while your computer can be compromised, it would take work and risk by the NSA – so it probably isn’t.  Be suspicious of commercial encryption software, especially from large vendors. Try to use public-domain encryption.

The NSA was told in the mid-1990s that it could not have the Clipper Chip, the backdoor it wanted into our digital lives . Silicon Valley and Bill Gates objected. By 1996 the Clipper Chip was defunct. So the NSA decided to begin breaking-and-entering on its own. Without our approval.

Greenwald/Snowden gave the public some time to prepare today’s disclosure. First, give it a series of primers on the extent to which the NSA is spying on the American public (not to mention allies). Then unload this zinger.

I want more details. What exactly is compromised? Is everything I do using SSL on my Mozilla Firefox browser compromised?

Boing Boing tweeted KEEP CALM AND USE OPEN SOURCE CRYPTO. Excellent advice. Time to revise my anti-surveillance toolkit.