The industry-leading crypto exchange that drains your checking account

Leo Zhang

By Leo Zhang

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Editor's note

Who is to blame for the Coinbase bank-draining incidents? According to the company, unapproved USD charges were due to "recent MCC code change by the card networks and card issuers charging additional fees." Translation: Visa and its cronies are now classifying crypto-purchases as cash advances and levying interest on each one. A clever prank by the plastic purveyors, sure, but what was the intended effect? By effectively censoring transactions with a perceived competitor, Visa makes the case for the Bitcoin network. In our view, Coinbase won this round with a smug disclaimer:

This week's news recap

Monday: Canadian oil & gas companies welcome miners from China
Tuesday: Coinbase demonstrates Lightning Network "ramp" in alpha
Wednesday: Chrome browser will start blocking ads
Thursday: Traditional VCs will be bagholders in Telegram's mega ICO
Friday: SEC suspends the trading of three public "blockchain" companies

Further readings this week

Inside the two years that shook Facebook-and the world
(Wired, by Nicholas Thompson and Fred Vogelstein)

"How a confused, defensive social media giant steered itself into a disaster, and how Mark Zuckerberg is trying to fix it all."

Valuing Bitcoin and Ethereum with Mecalfe's Law
(Medium, by Clearblocks)

"We propose a similar formula — the Price-to-Metcalfe Ratio (PMR) — and propose that it may have some advantages over NVT; however, we recognize that more research is needed before an optimal PMR is determined."

Testing the effect of data mining while browsing

A survey on security and privacy issues of Bitcoin
(Adrian Colyer)

"At the core of this survey is a catalogue of security attacks on Bitcoin, together with known defences or mitigations where applicable. We’ve touched on many of these before in one way or another, but it’s helpful to see them all in one place."

Will cryptocurrencies spy on us or set us free?
(PBS, by Amos Zeeberg)

"Today, many people see cryptocurrencies as anonymous, untraceable digital money—and indeed, some of the first uses were to launder money and buy illegal drugs. But that reputation for privacy isn’t entirely warranted, as shown by the capture of Gal Vallerius."

Image courtesy of Pexels.