So that you receive an alert whenever i upload a new video, so in today’s video i wanted to do something a little bit different and look at some big news that happened recently where twitter got hacked and bitcoin was being used to profit from it. So let’s take a closer look at what happened. Some of you may have seen the headlines that twitter got hacked on the 15th of july. There was a string of high profile accounts who were hacked and some tweets were sent out on their behalf, and some of them read like this on barack obama’s account. We saw i’m giving back to my community due to covert 19. All bitcoin sent to my account below will be sent back doubled. If you send one thousand dollars, i will send back two thousand dollars. This is only for the next 30 minutes enjoy. We saw a similar tweet on elon musk’s account feeling grateful doubling all payments to my bitcoin account. You send one thousand dollars and i sent back two thousand dollars only doing this for the next 30 minutes. So some of the accounts that were hacked include elon musk, barack obama, joe biden, jeff, bezos and apple and uber, and so these hackers somehow gained access to over 130 high profile. Influential twitter accounts posted there and tried to use bitcoin to cash in on it.

Now, according to twitter, this scam was done by using something called social engineering, where they’re basically hacked into the account of a twitter staff, member and use their profile and clearances to get access to these twitter accounts and it’s almost like having an administrator or super user Access so that you can post at well, and so this raises many questions around the data protection of twitter accounts and in fact, social media accounts in general, because many of them share similar data protection protocols.

So it would seem that if a hacker can gain access to the master data records, they can send shock waves through the world, whether it’s for financial gain or to spread fake news or maybe influence elections. So let’s say, for instance, when they hacked apple’s account that they sent out a tweet saying we expect record breaking sales. This would likely affect the stock price and they could profit from it, meaning that if the hackers had apple stock, they could benefit from the price move upwards and then cash out. So the call to action in the scam was to ask people to send money to a bitcoin account, and now some of you may be familiar with bitcoin and others, not so here’s a quick overview to understand what bitcoin is. We first need to look at cryptocurrencies. What is a cryptocurrency? Well, a cryptocurrency is a digital or electronic currency. These are largely not regulated or controlled by a central bank within a country, as is the case normally for a currency, and there are thousands of cryptocurrencies out there that you can buy, and this is where bitcoin comes in, because it’s, probably the most well known cryptocurrency At the moment, the total value of bitcoin is estimated at around 170 billion dollars.

The next biggest cryptocurrency called ethereum is valued at around 26 billion dollars. So why was bitcoin used for the scam? Well, the cryptocurrency conversations have become quite controversial. There are many positives to using cryptocurrencies like being able to adopt the blockchain technology, and it can be a cost effective way to make global payments.

What is blockchain one way blockchain was explained to me in the past – is that conceptually blockchain is the technology. Much like the internet and bitcoin is an application of the technology. Just like facebook, google and amazon are applications on the internet. This is very simplified, but it shows how it all comes together. A bit more detailed explanation is that blockchain is an innovative technology that uses decentralized, ledgers, and so here for every transaction, that’s processed. There are multiple ledgers and these ledgers need to match exactly in order for a transaction to be processed. Each of these ledgers form a link or block in the chain of the transaction, hence blockchain, and if any of the ledgers do not match exactly the transaction is rejected, and this is why blockchain is more accurate and secure than the traditional and previously used single ledger Approach, in fact, blockchain technology is being widely adopted by many big companies because of the capabilities it has to improve data protection. This technology can also be used in some of their daily processes and service offerings that they provide to their clients. Even many governments are now using blockchain technology for things like cybersecurity and process optimization, and it also improves the trust and accountability.

But there are also many negatives when it comes to cryptocurrencies, for example, that it’s been used in illegal activities and many people have had their accounts or wallets hacked and all the cryptocurrencies cleared out.

Bitcoin is still being used for the sale of illegal drugs and other unlawful activities. The amount of cryptocurrencies spent on the so called dark net markets where credit card information and illegal drugs are purchased using bitcoin has increased by more than 60 percent. In the last three months of 2019 to over 600 million dollars, so what does this mean in terms of the scam? Well, government regulators have been concerned about cryptocurrencies for some time now because it’s, a largely unregulated industry and so in this scam. It can be difficult to trace the money and identify the culprits, and while some governments have been making progress with anti money laundering regulations on cryptocurrency trading platforms, this has not yet been able to stop illegal activities. The use of bitcoin in this camp will certainly put the spotlight back onto cryptocurrencies for the regulators and it’s already reported that the fbi will be investigating at this hack. So how much money was stolen? Well, we’re not really sure yet, but at the moment it’s somewhere between 100 000 and a quarter of a million dollars. But aside from the financial losses, there have also been some other issues identified like the data protection of social media accounts and i’m. Sure more will follow on this as new information comes to light, but it is a big deal and i just wanted to make this video and share my initial thoughts in the comments section i’d love to know what are your thoughts on the scam and on cryptocurrencies In general, also, if you’re enjoying this video, please make sure you hit the like button.

So what can we learn from this? Well, if somebody’s offering you money instantly with no risk, then you better ask questions. Usually, if it seems too good to be true, then it probably is and be careful of get rich, quick schemes because usually they make somebody rich, but that somebody is not you warren buffett’s number one rule of investing is to never lose money and his number two Rule for investing is to never forget rule number one taking losses like this can really hurt your financial freedom goals and it can take a long time for you to recover those losses. When you look at investing in a company, you can look at the financial statements and assess their profits and use that to determine what a reasonable value is for that company. But when it comes to investing in something like bitcoin, there are no profits, and so determining the value is more difficult. Instead, you’re betting, that the demand will continue to exceed the supply and therefore push up the prices of bitcoin. This can make it a bit more risky and is also why many investors consider to be more speculation than investing, but others do see it as an investment. Much like an investment in gold would be.