Scepticism grows in El Salvador over pioneering Bitcoin gamble

Country will be first to adopt cryptocurrency as legal tender next month – but economists are sounding warnings over risks

Litha María de Los Angeles slaps two cheese-filled pupusas – the El Salvadoran cornmeal flatbread – on the griddle. With a camera click on the QR code, she receives her payment: four hundred-thousandths of a Bitcoin. Then, as the rain pelts the corrugated iron roof and a gust of wind lifts the blue plastic table cloths, the power cuts out.

A tumultuous few weeks awaits El Salvador as it prepares to become the first country to adopt Bitcoin, the world’s most popular decentralised digital currency, as legal tender on 7 September. With that deadline looming, a host of challenges – technological, financial and criminal – threaten to sink the plan of the president, Nayib Bukele, to ride the Central American economy out of its current choppy waters on the back of a cryptocurrency wave.

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Boy, 12, makes £290,000 in non-fungible tokens with digital whale art

Benyamin Ahmed’s Weird Whales sell in cryptocurrency and ownership is stored on blockchain

A 12-year-old boy had made about £290,000 after creating digital pictures of whales and selling tokens of their ownership which are stored on blockchain.

Benyamin Ahmed’s collection of pixelated artworks called Weird Whales went viral during the school holidays. His success may be a harbinger of the digital business models that could disrupt the banking sector.

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Out of control and rising: why bitcoin has Nigeria’s government in a panic

As leaders around the world grapple with cryptocurrencies, what happened when the African country tried to ban them?

When the Nigerian government suddenly banned access to foreign exchange for textile import companies in March 2019, Moses Awa* felt stuck. His business – importing woven shoes from Guangzhou, China, to sell in the northern city of Kano and his home state of Abia, further south – had been suffering along with the country’s economy. The ban threatened to tip it over the edge. “It was a serious crisis: I had to act fast,” Awa says.

He turned to his younger brother, Osy, who had begun trading bitcoins. “He was just accumulating, accumulating crypto, saying that at some point years down the line it could be a great investment. When the forex ban happened, he showed me how much I needed it, too. I could pay my suppliers in bitcoins if they accepted – and they did.”

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Cryptocurrencies could lead to ‘limitless’ losses for UK government

Experts warn of danger of untraceable funds if companies accepting payments in cryptos go bust

The government could face “limitless” losses as a result of businesses that accept payments in untaxed and untraceable cryptocurrencies going bust, an insolvency expert has warned.

A growing number of companies, including the ethical cosmetics firm Lush and office-sharing firm WeWork, have begun taking payments for goods and services in cryptocurrencies such as bitcoin, alongside debt, credit or cash.

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Currency and control: why China wants to undermine bitcoin

Beijing’s crackdown on cryptocurrencies has captured headlines, while behind the scenes its reserve bank set up its own digital currency

Few would dispute that China’s recent crackdown on cryptocurrency trading and mining has contributed to the recent plunge in the value of bitcoin and other cryptos.

But while the argument rages about whether the volatility of cryptos is a sign of fundamental weakness or merely a bump along the road, the initiatives coming out of Beijing are being seen by experts as a sign of China’s attempts to incubate its own fledgling e-currency and reboot the international financial system.

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NFTs and me: meet the people trying to sell their memes for millions

Once, people who owned viral photos made little money from them. Now, the ‘original’ can potentially sell for an enormous sum. But are buyers savvy investors – or unwitting dupes?

The photographer Jeff McCurry’s favourite Harambe memes are the ones where the dead gorilla is in heaven, Photoshopped alongside Diana, Princess of Wales, Tupac and Muhammad Ali. “It’s like: wow,” says McCurry. “What greater spot can you be placed in? Harambe’s at the top of the hill, waiting to meet you there.”

McCurry took the photograph of the 17-year-old western lowland gorilla that went on to become a meme. In it, Harambe kneels, projecting a fearsome aura of strength, nobility and calm. A former volunteer photographer at Cincinnati zoo, McCurry was there on 28 May 2016, the fateful day a three-year-old boy climbed into the gorilla’s enclosure, forcing zookeepers to shoot Harambe dead. “It didn’t seem real at first,” says McCurry, who was a regular visitor to the zoo. “When any of your friends die, it’s hard to process. I was in shock.”

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World’s biggest meat producer JBS pays $11m cybercrime ransom

Brazil-based giant paid ransom in bitcoin after ransomware attack shut down operations across world

JBS, the world’s biggest meat processor, has paid an $11m (£7.8m) ransom after a cyber attack shut down operations, including abattoirs in the US, Australia and Canada.

While most of its operations have been restored, the Brazilian-headquartered company said it hoped the payment would head off any further complications including data theft.

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China blocks cryptocurrency Weibo accounts in ‘judgment day’ for bitcoin

Several popular accounts on Twitter-like service are closed down, displaying message saying account ‘violates laws and rules’

China has stepped up its crackdown on bitcoin trading and mining, blocking a slew of cryptocurrency-related accounts on the Twitter-like Weibo platform over the weekend.

More actions are expected, including linking illegal crypto activities in China more directly with the country’s criminal law, according to analysts and a financial regulator.

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Why cryptocurrencies may remain merely a bit on the side

Wise Bank of England heads are pondering the case for a state-run digital currency this week. But do we really need one?

When Google announced that bitcoin traders would be allowed to buy advertising space on its pages from August, central banks were alerted to the next likely surge in publicity for cryptocurrencies.

The increasing activity around digital currencies has not gone unnoticed at the Bank of England, and on 7 June Threadneedle Street’s brightest will publish a consultation document, setting out how a publicly operated electronic coinage system – one that would rival bitcoin – might work.

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New cryptocurrency Chia blamed for hard drive shortages

Speculators buy up vital components as demand surges for rival to bitcoin that requires huge storage space

A new cryptocurrency is being blamed for shortages of hard drives and other storage systems, as speculatorsbuy up critical components in anticipation of a price rise.

Chia is the creation of Bram Cohen, the entrepreneur behind the BitTorrent file-sharing system. It aims to improve on more popular cryptocurrencies such as bitcoin and ethereum by removing the incentives to burn massive amounts of electricity.

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Bitcoin falls almost 30% after China crackdown

Digital currency under pressure from payment crackdown and tweets from Elon Musk

The price of bitcoin fell by almost 30% on Wednesday, after a Chinese government crackdown on banks’ use of cryptocurrencies accelerated a long-predicted sell-off, in a day of chaotic trading.

The world’s largest digital currency tumbled to about $30,000 (£21,000) amid frenzied trading, a drop of more than 50% since it hit record highs of more than $64,000 in mid-April. However, by 10pm UK time, the bitcoin price had risen back to about $38,500, still down 11% on the day, according to Refinitiv data.

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Elon Musk says Tesla will no longer accept bitcoin due to fossil fuel use

Digital currency, which is made with an energy-intensive process, falls 17% after the tweet

Tesla has suspended customers’ use of bitcoin to purchase its vehicles, Elon Musk said on Wednesday, citing concerns about the use of fossil fuel for bitcoin mining.

Related: Dogecoin’s record-breaking rise shoots ‘joke’ cryptocurrency to wider attention

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Goldman Sachs executive quits after making millions from Dogecoin

The crypto asset is down more than 30% this week but is still up by more than 1,000% from the start of 2021

A senior manager at Goldman Sachs in London has quit the US investment bank after making millions from investing in Dogecoin, the joke crypto asset which has risen by more than 1,000% in value this year.

City sources said Aziz McMahon, a managing director and head of emerging market sales, had resigned from the bank after making money from investing in the digital currency based on the Doge internet meme.

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Bitcoin records biggest one-day drop for almost two months

Fall comes amid warnings over speculation by novice investors in cryptocurrencies such as dogecoin

Bitcoin has posted its biggest one-day drop in almost two months, amid warnings that novice investors could suffer heavy losses from speculating in crypto assets such as “meme coin” dogecoin.

Bitcoin tumbled more than 11% on Sunday, dropping from about $62,000 (£45,000) to $55,000 – its lowest level since the end of March. Last week, the cryptocurrency had hit fresh record highs at nearly $65,000.

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China’s vast bitcoin mining empire risks derailing its climate targets, says study

China powers nearly 80% of the global cryptocurrencies trade, but the energy required could jeopardise its pledge to peak carbon emissions by 2030

China’s electricity-hungry bitcoin mines that power nearly 80% of the global trade in cryptocurrencies risk undercutting the country’s climate goals, a study in the journal Nature has said.

Bitcoin and other cryptocurrencies rely on “blockchain” technology, which is a shared database of transactions, with entries that must be confirmed and encrypted. The network is secured by individuals called “miners” who use high-powered computers to verify transactions, with bitcoins offered as a reward. Those computers consume enormous amounts of electricity.

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Can anyone become an NFT collector? I tried it to find out

This year non-fungible tokens burst into the mainstream after several digital images and animations sold for absurd amounts – so I entered the world of NFTs myself

For years, I’ve kept an ever-growing record of interesting pictures I discover online in a folder entitled Images on my desktop: a fox sauntering through an art gallery; a pixelated rendering of a Tokyo streetscape; Jon Bon Jovi doing yoga. They’re sentimental reminders of things I’ve seen online, but I am under no illusion that I somehow own these images. They come from the internet and can be copied, shared and experienced by many people all at once. My collection really is worthless to anyone but me.

Related: Art, amulets and cryptokitties: the new frontier of cryptocurrencies

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Elon Musk changes his Tesla job title to ‘technoking’

Company’s financial chief has been rebranded ‘master of coin’ following £1bn bitcoin investment

Elon Musk, the billionaire chief executive of Tesla with a penchant for eccentric behaviour, has changed his job title to “technoking” of the electric car manufacturer.

In addition to Musk, who also retains his position as chief executive, the company’s financial chief, Zach Kirkhorn, has been rebranded as “master of coin”.

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What is cryptoart, how much does it cost and can you hang it on your wall?

When is a meme worth $600,000? When technology has created a ‘unique’ version that can’t be owned by anyone else

Pat, I keep hearing references to cryptoart which are all very … cryptic. What is this thing?

Hey Lucy! So you might have heard of it in context of the $US600,000 Nyan Cat gif or the more recent Kings of Leon NFT Album, both of which are examples of cryptoart. Cryptoart is a way of making digital art unique, and therefore – according to some people – valuable. Normally, digital art is very easy to replicate due to the very nature of digital information. So cryptoart is a way of making digital files one-of-a-kind.

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Electricity needed to mine bitcoin is more than used by ‘entire countries’

Bitcoin mining – the process in which a bitcoin is awarded to a computer that solves a complex series of algorithm – is a deeply energy intensive process

It’s not just the value of bitcoin that has soared in the last year – so has the huge amount of energy it consumes.

The cryptocurrency’s value has dipped recently after passing a high of $50,000 but the energy used to create it has continued to soar during its epic rise, climbing to the equivalent to the annual carbon footprint of Argentina, according to Cambridge Bitcoin Electricity Consumption Index, a tool from researchers at Cambridge University that measures the currency’s energy use.

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Nvidia’s new gaming software puts brakes on mining cryptocurrency

Artificial constraint highlights struggle to keep up with demand from cryptocurrency miners

The newest graphics cards from the gaming processor designer Nvidia will be artificially constrained in their ability to mine cryptocurrencies, the company has announced, as it desperately tries to manage a year-long inability to satisfy demand.

The RTX 3060, a high-powered PC peripheral designed to let gamers get the best performance from their machines, will ship with software that makes it half as effective at mining the cryptocurrency Ethereum as it could be.

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