TL;DR: Welcome to In Case You Missed It (ICYMI), a fast set of rude and biased comments about cryptocurrency, brought by your favorite economist, Linzerd. LocalBitcoins suffers a hack. Roubini declares cryptocurrency an “overhyped Excel spreadsheet.” Facebook knowingly lets children spend parents’ money. IMF Christine Lagarde praises financial technology, and JPMorgan declares bitcoin is useful only in a dystopian future.
A new security breach has been found by the team of LocalBitcoins, the popular peer-to- peer bitcoin exchange. According to some reports, forum users were redirected to another site asking for their 2FA info, used later to drain their funds. However, the security breach was detected quickly, and withdrawals were stopped. Only 6 accounts have been confirmed hacked at LocalBitcoins, and the platform is operating normally again.
Roubini Slams Crypto and Blockchain at Davos
The famous economist and bitcoin hater, Nouriel Roubini, took advantage of the opportunity he had at the World Economic Forum and slammed cryptocurrencies and blockchain again. “I do believe there is going to be a revolution in financial services. That revolution is called fintech… it has nothing to do with blockchain, and nothing to do with crypto,” he declared. About blockchain, he specifically said it “is an over-hyped fancy database that’s no better than an Excel spreadsheet.”
Facebook Knowingly Let Children Ramp Up Expenses
New documents unveiled show Facebook let children use their parents’ credit card for in-game purchases of knowingly, allowing what is called “Friendly Fraud,” due to fears of lagging revenues for the ecosystem. Documents show Facebook’s engineers discussed applying some kind of security measure to stop this but decided not to do. One of the games in the documents was Rovio’s “Angry Birds.”
IMF Lagarde Talks Fintech in Davos
Christine Lagarde, managing director of the International Monetary Fund, made positive comments about fintech at the Davos Economic World Forum by declaring this sector will shake the financial system. She also declared bankers should include fintech in the financial system, or follow the sector’s lead. Fintech is a broad group of technologies that includes cryptocurrency systems, letting consumers use their money bypassing traditional banking.
JPMorgan Declares Bitcoin Only Useful for Dystopian Future
A new note written by JP Morgan managing director and analyst Jan Loeys declared Bitcoin could only be really useful in a “dystopian” future, and that even in the face of a global recession, there are other, better alternatives to invest in. “We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets,” reads the note. “Blockchain is unlikely to re-invent the global payments system,” she dismissed.
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