Technology pioneer John McAfee: Sending and receiving Bitcoin with smartphones poses huge security risks

Someone suddenly approached John McAfee and said to the technology pioneer and antivirus software founder when he was off guard: "You are a legend. You are so funny." McAfee smiled and shook the man's hand: "I'm glad that someone can understand my humor."

Welcome to McAfee's world. In this impetuous circle, he obviously wins by relying on his reputation and experience in network security. Whether in hotels, airports or technology conferences, he is a superstar.

In addition to endless praise for him, McAfee himself also had something to say. At the Blockchain Conference in London, IBTimes gave McAfee an exclusive interview. He believes that if there is no thorough reform of the security of cryptocurrency, the field will inevitably face collapse.

Security is the most important issue. Currently, the cryptocurrency world does not seem to care about this issue, but they will one day pay attention to it.

Without reform, he said, the cryptocurrency space would descend into chaos.

The reason we don’t take security seriously is not because we don’t understand the principles, but because there is no security in the world of virtual currency.

He explained that the main reason for this is the way people handle online currencies, namely smartphones. He said he has no problem with such "surveillance devices" collecting data, but if you use your phone to send and receive Bitcoin, you are asking for trouble.

Some people have hundreds of thousands of dollars in their mobile wallets. I'm telling you right now, if you give me your phone number, I can transfer all of your Bitcoin to my own account in less than 5 minutes. And I promise, it's very easy and no big deal.

"Wake up!"

McAfee picked up the iPhone next to him and said:

This thing is definitely not there to ensure your safety and privacy. On the contrary, it will expose your whereabouts, your plans, your contacts, etc. It is a surveillance device.

The microphone and camera on your phone can be used to spy on you. Why? Because when manufacturing giants like Google and Apple release new products, they charge $600 for them and know where your money is going, which is extremely useful intelligence.

But this is useless to me. If someone tries to sell me these devices, I can choose not to buy them, refuse them, and keep them away from me. But these devices are aimed at those who are defenseless. And these surveillance devices are also prey for hackers.

McAfee also explains how hackers can easily crack complex encryption programs using malware, usually a keylogger.

We've all missed the point. What we need to do now is, first, wake up quickly, and second, remember that security is absolutely impossible to achieve through these surveillance devices.

The Promise of Blockchain

McAfee did not endorse any cryptocurrency, but he acknowledged that the appeal of cryptocurrencies is huge. His company, MGT Capital Investments, has already invested in the production of mining equipment and plans to significantly expand its business in 2017.

From voting systems to personal identity verification, blockchain is used everywhere. It may sound ironic that a system that guarantees pure anonymity is used for identity verification. I think this is the magic of mathematics, it can make a difference in almost any industry.

Our core business right now is mining. We have 400 S9s in Washington.

When asked if they might relocate, McAfee replied that they chose Washington because "air conditioning is only needed two months a year here" and it's "next to a hydroelectric power station."

He added:

The electricity here is cheap and the weather is relatively cold. For Bitcoin mining, the most important thing is power and heat dissipation. We currently have about 400 devices, with a computing power of 5 PetaHash. We plan to increase to 2,000 devices by the beginning of next year.

McAfee said mining is "the study of the transaction process" and is a combination of hardware and software, but the premise is to ensure that the equipment works well.

Mining itself is the most insecure thing in the world because you are using open source code. If you give me a piece of open source code, I can find a hacker or an acquaintance to access anywhere I want.

The security facilities in our network are not available in other miners. Our special equipment Sentinel can monitor network traffic and detect any abnormalities. Sentinel has been tested countless times.

For McAfee, who has a strong background in networking and cryptography, security is indeed the most important thing. He once said, "Security is my career."

He then emphasized the inevitability of blockchain technology and how its algorithms will affect financial operations.

Blockchain is here, it’s here to stay, and it’s not going away, no matter how much governments hate it or want to control it — but how do you control something that exists in mathematical form?

Whether the government likes it or not, there will eventually be a standard for cryptocurrencies in the market, and I don't know whether it will be based on Bitcoin or other currencies. Then the government will find that the source and destination of such funds are difficult to track, so taxation is almost impossible. They will gradually get used to it.

But they will definitely have other ways of collecting taxes. Either it's the use fee of national parks or the repair fee of municipal roads. I don't really understand. Anyway, this is a problem for the government to consider, and it has nothing to do with me. I only know that the digital reform of blockchain and cryptocurrency is coming, and the world culture will change because of it.