Why Cryptocurrencies Are No Panacea

In his piece concerning cryptocurrency scams and the difficulty victims have getting their money back even after the government has recovered the money from the scammers, the news writer had this statement.

[FBI] Agents have learned to painstakingly trace digital currencies, hop by hop, across blockchains—the decentralized ledgers stored on computers around the world that provide a public record of transactions between digital wallets.

This is why I won’t do anything with blockchain if I can avoid it. The very purpose of blockchain, proving permanently (at least until blockchain itself gets compromised) the provenance of transactions, makes it too easy for government to track what us ordinary Americans are doing.

Government doesn’t need to surveil me just because it wants to.

Chatrie v United States and Follow-on

The Supreme Court ruled in Chatrie that police gatherings of Google location histories constituted a search and so must be subject to 4th Amendment strictures. From that, we get parents pushing back against K-12 school districts conducting surveillance of students’ parents, explicitly to gather [a]ccess license plate data and develop pattern of life information.

One of those tracking packages, Thomson Reuters CLEAR, explicitly brags about the software’s ability to collect and provide to school managers residency verification, address validation, license plate verification, all with a view to [u]nderstand who owns and lives at the address provided and other related locations and to develop pattern of life information. The purveyors of this PRC-esque surveillance package also brag that school managers can [e]asily connect information about people, businesses, assets, affiliations, and other vital content.

All of that without the parents’ prior knowledge or permission and without any court sanction of the surveillance.

That such invasions of average Americans’ privacy is being done by school system managers is one more reason they need their reins jerked up short.

Not Relevant

There is a property dispute in Wisconsin centered on a property owner owning a stretch of lake front beach and a neighbor who insists on traipsing across that private property beach, often with his dog, despite repeated warnings, signs, and calls to the police to get him to stop. It even went to trial, and the trespasser fined some $313.

But that’s not the end of it.

In response to the fine, the trespasser

argues it is absurd to say he could wade past but not put a foot higher up the shore.

His pretense here is from his arrogance. It doesn’t have to be not absurd to him; the distinction is set by law, it is quite clear, and all he need do is obey it. His arrogance doesn’t stop there, though.

My personality is such that if I’m confronted with it I don’t back away from [the argument over his access to the property owner’s property[.]

As if his arrogance justifies anything.

And this argument from the presiding judge, who despite her remark, had the integrity to rule on what the law says rather than what she thought it ought to say:

…a decision favoring the landowner over the public was out of touch with the practices in other states.

This isn’t relevant. We’re a federal republic. What other States do regarding privately owned beachfront property has nothing to do with how Wisconsin treats privately owned beachfront property. “Out of touch with the practices in other states” is a non sequitur.

The Strength and the Weakness

In a Wall Street Journal article regarding Binance’s complicity, allegedly unwitting, in financing Iran’s behaviors despite sanctions to the contrary, there’s this tidbit that is the subject of my post.

The funds are part of billions in crypto transactions that have flowed through Binance to networks financing Iran’s Islamic Revolutionary Guard Corps in the two years preceding the current US-Iran war, according to Binance compliance reports, blockchain data, foreign law-enforcement officials who track terrorism financing, and other crypto researchers and nonpublic documents.

It’s those blockchain data and their role in backtracking to the source of the funding that concerns me.

Blockchain is a highly useful, incorruptible means (so far; hackers and ever-improving computers include blockchain in the cyber arms race between the good guys and the nefarious) of proving the provenance of what’s being tracked, which is mostly financial transactions (again, so far). But that surveillance capability, in the hands of a government (and at bottom, there’s no practical way to keep it out of the hands of government) can be very dangerous to individual privacy, even to individual liberty.

We the People, and free citizens elsewhere in the free world, need especially to be vigilant and to respond quickly when government misuses that capability.

Not a Chance

In an article about the future of travel coming to us in just 20 years, this prediction jumped out at me. From Scott Fleming, Aon‘s Director Aon Travel Practice:

My [AI travel booking] agent will know the places I like, it will have insight into my finances, my budget, my risk tolerances, all my preferences from the kind of room I like to my pillow type[.]

As British royal butlers and secretaries and other staffers, royal and commoner, British or elsewhere, routinely demonstrate, not even personal staff can be trusted with such personal information in such quantities and breadth. I’m certainly not going to trust a robot or other software package with all that information.