Bitcoin's Errors: Minor Setback or Final Demise?

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Jessamy Nichols, Africa CorrespondentLast Modified: 23:54 p.m. DST, 27 February 2014

Bitcoin Book Plate, Photo by Bitcoin LeatherIn an effort to avoid government regulation and intervention, digital currencies have been created in the last few years and have seen some successes.

The most popular one by far though, has been Bitcoin, which rose from a single coin being valued at $30, to $1100 in the last year alone. This tremendous growth came about from growing confidence and increased usage, as online businesses and electronic transactions switched to accepting Bitcoin as a form of payment.

However, this past Tuesday, 27 February 2014,  Mt. Gox, one of the world's biggest bitcoin trading centers, shut down and stopped trading. This caused a massive ripple effect on the sentiment towards bitcoin as consumers' confidence plummeted in tandem with the currency's value.

Leading up to the abrupt halt in transactions, there had been a few cyber attacks on Mt. Gox in the previous weeks, which may have precipitated Tuesday's events. Different reports are being leaked about the situation, including one that says the halting of trading involved 744,000 bitcoins that were "missing."

The bigger issue in all of this mess? Unlike normal currencies that are covered by government-backed insurance, Bitcoin has no such guarantees. In fact, Bitcoin users may have little to no chance of recovering their funds, and are limited to lawsuits for "negligence" or "breach of contract." Outside of those legal actions, there may not be much else consumers can do, and even if the market can recover, this will ultimately tarnish Bitcoin's reliability forever.

How Bitcoin recovers from this fiasco remains to be seen, but if those who used the currency lose vast amounts of funds without any compensation, the concept of a digital currency without government regulation may be done forever.

Follow Jessamy on Twitter Twitter: @nahmias_report Africa Correspondent: @JessamyNichols

Portrait of a Fugitive. Deposed Ukranian President Viktor Yanukovych Flees

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KIEV, Ukraine - Days following a truce announcement which ended the bloody riots which rocked the Ukrainian capital, news outlets are reporting that the ousted leader is in fact now a fugitive.

As the sign held by the protesters to the right depicts, deposed President Viktor Yanukovych's flight into hiding came just hours before a warrant was issued for his arrest. By fleeing, Yanukovych conferred upon himself a dubious honor, as he joins the ranks of fallen leaders who failed to heed the voice of the people.

Leaders who may have transitioned from power with dignity, but chose to resist compromise, a position which ultimately paved the way for their own destruction.

Courtesy of the Global Post, recent despots who retreated in ignominy are listed below:

  1. Nicolae Ceaucescu, Secretary General of the Romanian Communist Party (1965 – 1989)
  2. Saddam Hussein, deposed President of Iraq (1979 – 2003)
  3. Muammar al-Gaddafi, Libyan Dictator (1979 – 2011)
  4. Hosni Mubarak, deposed president of Egypt (1981 – 2011)
  5. Ben Ali, deposed President of Tunisia (1987 – 2011)

On Friday, 21 February 2014, after meeting with opposition leaders, President Yanukovych, announced that he had signed a peace deal. However, it appears that shortly after closing the deal, Yanukovych recognized the writing on the wall and chose to flee into hiding.

There is speculation that Moscow, a once staunch supporter of Yanukovych during the deadly three-month standoff which resulted in dozens of deaths and hundreds of injuries, recognized the futility of its calculated bid to bring the ex-Soviet nation back under its control. Yanukovych must have realized that he had lost both their confidence and support, and this may have been a deciding factor in his decision.

The peaceful uprising that turned violent earlier this month was triggered when Yanukovych under pressure from Russia, opted to cease political and trade deal discussion with the EU, in lieu of a $15 billion bailout to Ukraine from Russia. Ukranian citizens viewed this as a subversive effort by Russia to undermine Ukraine’s growth toward increased democracy.

Most Ukranians believed that this financial dependency would erode decades of political autonomy, economic expansion, and democratic freedoms realized since gaining their independence in 1990. Russia's offer of financial support was, in the opinion of most, a bid to once again impose a draconian style of rule reminiscent of the Soviet Union.

During the violent unrest, Moscow publicly decried the “treasonous” activities of the opposition, yet stopped short of sending military support to keep Yanukovych in power. When Yanukovych acquiesced to the opposition’s demands, Prime Minister Dmitry Medvedev immediately put distance between Russia and Ukraine by declaring that his government could not have full ties with a leader who was being tramped on like a "doormat.” The unrest in Ukraine is seen as a potentially destabilizing influence that could adversely impact Russia's interests.

It would seem that Yanukovych’s inability to suppress the opposition through any means necessary, no matter how heinous or distasteful, has been interpreted by the Kremlin as “biting the hand that fed him.” A new Ukrainian leader has not been appointed, and at this point Russia views any interim government as illegitimate. It remains to be seen if Moscow will honor its promised financial support or abandon all efforts to manipulate this sovereign nation back under its control.

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Deadly Ukrainian Riots Cease as President Yanukovych Declares Truce

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Ayanna Nahmias, Editor-in-ChiefLast Modified: 00:35 a.m. EDT, 20 February 2014

Ukrainian Riots , Independence Square, Kiev, Photo Courtesy of The Global MovementKIEV, Ukraine - Protesters who had been barricaded in the city’s trade union building which they were using as an operation base, remain steadfast in their cause, despite security forces deadly attack against them. Casualties have ensued on both sides as Tuesday at least 11 demonstrators and seven police officers were killed in the ensuing confrontations.

Security forces are reported to have set fire to the building, with the intent of forcing protest leaders out into the open where snipers could have a clear shot. According to The Independent, “opposition leader Aleksandr Turchinov was among those said to have been shot as he stood on the stage, but it was unclear how seriously he was hurt.”

Despite mounting pressure and international condemnation of the suppressive measures instituted by President Viktor Yanukovych, both sides remain resolute in their positions, as fires back-light the historic city of Kiev, and the epicenter of the violence – Independence Square, also known as the Maidan.

The opposition leaders are at least open to talks, and even U.S. Vice President Joe Biden acknowledged that the protestors have “legitimate grievances” which need to be addressed. According to The Independent, Biden called Ukraine’s President Viktor Yanukovych and urged him to meet with and seriously consider the proposals for political reform that would lead to an end of the violence.

At issue is Ukraine’s potential return to Soviet governance, if not in fact, then as a political and economic expediency. Ukraine gained its freedom as an autonomous nation on 16 July 1990, when its’ parliament adopted “the Declaration of State Sovereignty of Ukraine. The declaration established the principles of the self-determination of the Ukrainian nation, its democracy, political and economic independence, and the priority of Ukrainian law on the Ukrainian territory over Soviet law. (Source: Wikipedia)

With the global economic meltdown, Ukraine, like many other countries suffered severe financial instability which required large amounts of capital infusion to keep the government solvent. Two solutions were on the table, and to the chagrin and amazement of the citizenry, President Yanukovych spurned a historic trade and political agreement with European Union in favor of a £9bn financial bailout from Russia.

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Published: 20 February 2014 (Page 2 of 2)

His decision effectively halted Ukraine’s steady march toward modernity and democracy, in favor of a return to the autocracy of the past. In response to his decision, and despite freezing temperatures, Ukrainians took to the streets in peaceful protest, but after nearly 5-months of silence from the government, peaceful demonstrations turned violent as frustrations grew with Yanukovych’s refusal to meet with opposition leaders or even discuss alternative solutions to solve the country’s financial problems.

The clashes ensued on Monday the 17th following an announcement that Russia's Finance Minister offered to deliver additional bailout funds to Ukraine, sparking fears that the move could pave the way for a Moscow loyalist as the new prime minister. (Source: The Independent)

The two opposition leaders - Vitali Klitschko and Arseniy Yatsenyuk, were finally called to the President’s office for talks, but it is clear that both parties are on extreme ends of the spectrum with regard to a solution to cease the violence. Klitschko and Yatsenyuk are calling for President Yanukovych to resign and call early elections in advance of 2015 election cycle.

President Yanukovych remains defiant and has yet to publicly outline a plan to address the Ukrainian citizenry’s concern about the erosion of their civil rights. Nor has he openly admitted the high probability of the loss of Ukrainian autonomy should his government become deeply in debt and dependent upon the financial largess of Moscow. However, as of a few hours ago, a truce has been called and rioting has ceased as each side tries to stem the tide of violence.

It remains to be seen whether this ceasefire will last, but the issue of getting into bed once again with Russia is critical, though it will probably not be resolved during this first round of negotiations. Regarding Moscow, Yanukovych would do well to remember the following adages - relationships are like glass, sometimes its better to leave them broken, because when you try to pick up the pieces you always end up getting hurt; and if you bite the hand that feeds you punishment is sure to follow.

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Japan still coping with human, economic costs of tsunami one year later

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Japan has also been impacted by the global economic downturn, and the Tohoku quake has further exacerbated its economic recovery efforts.

In addition to the socioeconomic challenges, Japan must now contend with the daunting task of clean-up of the ongoing level 7 meltdowns at three reactors in the Fukushima Daiichi Nuclear Power Plant complex where the tsunami flood waters are now leaking radioactive waste into the ground water.

Christine Lagarde, New IMF Director

Christine Lagarde, New IMF Director

28 June 2011 - French Finance Minister Christine Lagarde was named Tuesday as the new managing director of the International Monetary Fund (IMF). Her five-year appointment begins on July 5th, as such she is the first woman to lead the multilateral lender to nations. Lagarde succeeds countryman Dominique Strauss-Kahn, who resigned on May 18 after being arrested on charges of sexually assaulting and attempting to rape a hotel maid in New York. He is currently under arrest in New York while awaiting trial, Strauss-Kahn pleaded not guilty earlier this month.

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