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HughPickens.com writes: Nathaniel Popper writes in the NYT that with its volatile currency and dysfunctional banks, Argentina is the perfect place to experiment with a new digital currency. The number of Bitcoin users in Argentina is relatively small; it barely registers on most charts of global Bitcoin usage. But Argentina has been quietly gaining renown in technology circles as the first, and almost only, place where Bitcoins are being regularly used by ordinary people for real commercial transactions. For example, BitPagos is selling bitcoins in over 8,000 Argentine convenience stores and is helping more than 200 hotels, both cheap and boutique, take credit-card payments from foreign tourists. The money brought to Argentina using Bitcoin circumvents the onerous government restrictions on receiving money from abroad

The Rock Hostel is one of hundreds of hotels in the country using BitPagos to collect credit-card payments from foreign customers. If owner Rodriguez Pons accepted credit-card payments from American customers through the usual financial channels, customers would be billed in dollars, and when those dollars came to Pons's Argentine bank account, they would be converted at the official rate, about 30 percent lower than the black-market rate. It would also take 20 days for Pons to get her pesos. BitPagos helped counter these drawbacks by taking the credit-card payment in the United States and then using the dollars to buy Bitcoins, generally from Coinbase, before sending them to Pons immediately.

Bitcoin proponents like to say that the currency first became popular in the places that needed it least, like Europe and the United States, given how smoothly the currencies and financial services work there. It makes sense that a place like Argentina would be fertile ground for a virtual currency. Inflation is constant: At the end of 2014, for example, the peso was worth 25 percent less than it was at the beginning of the year. And that adversity pales in comparison with past bouts of hyperinflation, defaults on national debts and currency revaluations. "In the long run, Bitcoin will be very disruptive to the developed world," says Dan Morehead, a former Goldman Sachs executive who now runs a hedge fund focused on Bitcoin. Things are happening sooner in Argentina, he says, because its financial system creates hassles for the people there. But, he added, "Argentina is just a more extreme example of the situation in every country."

Nicola Hahn writes Over the course of the Snowden revelations there have been a number of high profile figures who've praised the merits of encryption as a remedy to the quandary of mass interception. Companies like Google and Apple have been quick to publicize their adoption of cryptographic countermeasures in an effort to maintain quarterly earnings. This marketing campaign has even convinced less credulous onlookers like Glenn Greenwald. For example, in a recent Intercept piece, Greenwald claimed:

"It is well-established that, prior to the Snowden reporting, Silicon Valley companies were secret, eager and vital participants in the growing Surveillance State. Once their role was revealed, and they perceived those disclosures threatening to their future profit-making, they instantly adopted a PR tactic of presenting themselves as Guardians of Privacy. Much of that is simply self-serving re-branding, but some of it, as I described last week, are genuine improvements in the technological means of protecting user privacy, such as the encryption products now being offered by Apple and Google, motivated by the belief that, post-Snowden, parading around as privacy protectors is necessary to stay competitive."

So, while he concedes the role of public relations in the ongoing cyber security push, Greenwald concurrently believes encryption is a "genuine" countermeasure. In other words, what we're seeing is mostly marketing hype... except for the part about strong encryption.

With regard to the promise of encryption as a privacy cure-all, history tells a markedly different story. Guarantees of security through encryption have often proven illusory, a magic act. Seeking refuge in a technical quick fix can be hazardous for a number of reasons.

An anonymous reader writes: It seems the latest trend sweeping the online world is the idea that email is on its way out. Kids are eschewing email for any of the hundreds of different instant messaging services, and startups are targeting email as a system they can "disrupt." Alexis C. Madrigal argues that attempts to move past email are shortsighted and faddish, as none of the alternatives give as much power to the user. "Email is actually a tremendous, decentralized, open platform on which new, innovative things can and have been built. In that way, email represents a different model from the closed ecosystems we see proliferating across our computers and devices. Email is a refugee from the open, interoperable, less-controlled 'web we lost.' It's an exciting landscape of freedom amidst the walled gardens of social networking and messaging services." Madrigal does believe that email will gradually lose some of its current uses as new technologies spring up and mature, but the core functionality is here to stay.

Presto Vivace (882157) links to a critical look in Time Magazine at the creepy side of connected household technology. An excerpt: A modern surveillance state isn't so much being forced on us, as it is sold to us device by device, with the idea that it is for our benefit. ... ... Nest sucks up data on how warm your home is. As Mocana CEO James Isaacs explained to me in early May, a detailed footprint of your comings and goings can be inferred from this information. Nest just bought Dropcam, a company that markets itself as a security tool allowing you to put cameras in your home and view them remotely, but brings with it a raft of disquieting implications about surveillance. Automatic wants you to monitor how far you drive and do things for you like talk to your your house when you're on your way home from work and turn on lights when you pull into your garage. Tied into the new SmartThings platform, a Jawbone UP band becomes a tool for remotely monitoring someone else's activity. The SmartThings hubs and sensors themselves put any switch or door in play. Companies like AT&T want to build a digital home that monitors your security and energy use. ... ... Withings Smart Body Analyzer monitors your weight and pulse. Teddy the Guardian is a soft toy for children that spies on their vital signs. Parrot Flower Power looks at the moisture in your home under the guise of helping you grow plants. The Beam Brush checks up on your teeth-brushing technique. Presto Vivaci adds, "Enough to make the Stasi blush. What I cannot understand is how politicians fail to understand what a future Kenneth Starr is going to do with data like this."

theodp (442580) writes "Billionaire-backed Code.org, enthusiastically tweets U.S. Dept. of Education Chief Arne Duncan, is 'providing tremendous leadership in bringing coding & computer science to our nation's schools.' Including bringing kids in Broward County Public Schools the best computer science teachers $15.00-an-hour can buy, according to a document on the school district's website. One wonders how the Broward teachers feel about Code.org apparently coughing up $38.33-an-hour for Chicago teachers who attend the required Code.org professional development, which ironically covers equity issues. Duncan's shout-out comes days after Code.org claimed in its Senate testimony that 'our students have voted with their actions [participating in an hour-long, Angry Birds-themed Blockly tutorial starring Mark Zuckerberg and Bill Gates]: that learning computer science is this generation's Sputnik moment, that it's part of the new American Dream, and that it should be available to every student, in every school, as part of the standard curriculum.'"

theodp writes: "PandoDaily's Mark Ames reports that U.S. District Judge Lucy Koh has denied the final attempt by Apple, Google, Intel, and Adobe to have the class action lawsuit over hiring collusion practices tossed. The wage fixing trial is slated to begin on May 27. 'It's clearly in the defendants' interests to have this case shut down before more damaging revelations come out,' writes Ames. (Pixar, Intuit and LucasFilm have already settled.) The wage fixing cartel, which allegedly involved dozens of companies and affected one million employees, also reportedly affected innovation. 'One the most interesting misconceptions I've heard about the "Techtopus" conspiracy,' writes Ames of Google's agreement to cancel plans for an engineering center in Paris after Jobs expressed disapproval, 'is that, while these secret deals to fix recruiting were bad (and illegal), they were also needed to protect innovation by keeping teams together while avoiding spiraling costs.' Ames adds, 'In a field as critical and competitive as smartphones, Google's R&D strategy was being dictated, not by the company's board, or by its shareholders, but by a desire not to anger the CEO of a rival company.'"

theodp writes: "PandoDaily's Mark Ames reports that U.S. District Judge Lucy Koh has denied the final attempt by Apple, Google, Intel, and Adobe to have the class action lawsuit over hiring collusion practices tossed. The wage fixing trial is slated to begin on May 27. 'It's clearly in the defendants' interests to have this case shut down before more damaging revelations come out,' writes Ames. (Pixar, Intuit and LucasFilm have already settled.) The wage fixing cartel, which allegedly involved dozens of companies and affected one million employees, also reportedly affected innovation. 'One the most interesting misconceptions I've heard about the "Techtopus" conspiracy,' writes Ames of Google's agreement to cancel plans for an engineering center in Paris after Jobs expressed disapproval, 'is that, while these secret deals to fix recruiting were bad (and illegal), they were also needed to protect innovation by keeping teams together while avoiding spiraling costs.' Ames adds, 'In a field as critical and competitive as smartphones, Google's R&D strategy was being dictated, not by the company's board, or by its shareholders, but by a desire not to anger the CEO of a rival company.'"

theodp writes: "PandoDaily's Mark Ames reports that U.S. District Judge Lucy Koh has denied the final attempt by Apple, Google, Intel, and Adobe to have the class action lawsuit over hiring collusion practices tossed. The wage fixing trial is slated to begin on May 27. 'It's clearly in the defendants' interests to have this case shut down before more damaging revelations come out,' writes Ames. (Pixar, Intuit and LucasFilm have already settled.) The wage fixing cartel, which allegedly involved dozens of companies and affected one million employees, also reportedly affected innovation. 'One the most interesting misconceptions I've heard about the "Techtopus" conspiracy,' writes Ames of Google's agreement to cancel plans for an engineering center in Paris after Jobs expressed disapproval, 'is that, while these secret deals to fix recruiting were bad (and illegal), they were also needed to protect innovation by keeping teams together while avoiding spiraling costs.' Ames adds, 'In a field as critical and competitive as smartphones, Google's R&D strategy was being dictated, not by the company's board, or by its shareholders, but by a desire not to anger the CEO of a rival company.'"

The gentleman's agreement that several Silicon Valley firms are now widely known to have taken part in to minimize employee poaching within their own circles went much further than has been generally reported, according to a report at PandoDaily. The article lists many other companies besides the handful that have been previously named as taking part in the scheme to prevent recruiting, and gives some insight into what kind of (even non-tech) organizations and practices are involved.

beltsbear sends a story about the struggles of visual effects artists against the Motion Picture Association of America. The VFX industry in the U.S. has been slowly dying because movie studios increasingly outsource the work to save money. The visual effects industry protested and fought where they could, but had little success — until the MPAA filed a seemingly innocuous legal document to the International Trade Commission two weeks ago. In it, the MPAA argues that international trade of intellectual property is just like international trade of manufactured goods, and should be afforded the same protections. This would naturally apply to visual effects work, as well. Thus: "[E]mboldened by the MPAA’s filing, the visual effects workers are now in a position to use the big studios’ own arguments to compel the government to slap trade tariffs on those studios’ own productions in high-subsidy countries. Those arguments will be especially powerful because the MPAA made them to the very same governmental agencies that will process the visual-effects workers’ case. Additionally, the workers can now take matters into their own hands. ... If visual effects workers can show the Commerce Department and the U.S. International Trade Commission that an import is benefiting from foreign subsidies and therefore illegally undercutting a domestic industry, the federal government is obligated to automatically slap a punitive tax on that import. Such a tax would in practice erase the extra profit margins the studios are gleaning from the foreign subsidies, thereby leveling the competitive playing field for American workers and eliminating the purely economic incentive for the studios to engage in mass offshoring."

Oneflower writes "As we discussed last week, a lawsuit is moving forward that alleges widespread conspiracy among the CEOs of Apple, Google, Intel, Adobe, Intuit, and Pixar to suppress the wages of their tech staff. Mark Ames at Pando explains how it happened, and showcases some of the emails involving Steve Jobs and other CEOs. Quoting: 'Shortly after sealing the pact with Google, Jobs strong-armed Adobe into joining after he complained to CEO Bruce Chizen that Adobe was recruiting Apple’s employees. Chizen sheepishly responded that he thought only a small class of employees were off-limits: "I thought we agreed not to recruit any senior level employees. I would propose we keep it that way. Open to discuss. It would be good to agree." Jobs responded by threatening war: "OK, I’ll tell our recruiters they are free to approach any Adobe employee who is not a Sr. Director or VP. Am I understanding your position correctly?" Adobe’s Chizen immediately backed down.'"

Hugh Pickens DOT Com writes "SF writer Charles Stross writes on his blog that like all currency systems, Bitcoin comes with an implicit political agenda attached and although our current global system is pretty crap, Bitcoin is worse. For starters, BtC is inherently deflationary. There is an upper limit on the number of bitcoins that can ever be created so the cost of generating new Bitcoins rises over time, and the value of Bitcoins rise relative to the available goods and services in the market. Libertarians love it because it pushes the same buttons as their gold fetish and it doesn't look like a "Fiat currency". You can visualize it as some kind of scarce precious data resource, sort of a digital equivalent of gold. However there are a number of huge down-sides to Bitcoin says Stross: Mining BtC has a carbon footprint from hell as they get more computationally expensive to generate, electricity consumption soars; Bitcoin mining software is now being distributed as malware because using someone else's computer to mine BitCoins is easier than buying a farm of your own mining hardware; Bitcoin's utter lack of regulation permits really hideous markets to emerge, in commodities like assassination and drugs and child pornography; and finally Bitcoin is inherently damaging to the fabric of civil society because it is pretty much designed for tax evasion. "BitCoin looks like it was designed as a weapon intended to damage central banking and money issuing banks, with a Libertarian political agenda in mind—to damage states ability to collect tax and monitor their citizens financial transactions," concludes Stross. "The current banking industry and late-period capitalism may suck, but replacing it with Bitcoin would be like swapping out a hangnail for Fournier's gangrene.""