Wednesday, September 24, 2014

San Diego Local Order of Bloggers Launch Windows 8.1 App

San Diego Local Order of Bloggers

San Diego's Finest tea party bloggers just released a Windows 8.1 app. This app is an update to one of the first Windows 8 political apps available in the Microsoft store. The Windows 8.1 app is free (click here) as is their android app (click here). No app is currently available for apple devices, however, the website at is highly responsive and adaptive for various screen sizes.

SLOBs Large Start ScreenThe San Diego Local Order of Bloggers is a group that formed during the beginning of the tea party movement in response to out of control government growth. The group includes conservatives, Libertarians, Democrats, Republicans and Independents. It consists of a close nit group of writers, radio and television personalities, activists, organizers and concerned citizens who occasionally meet over beers.

The term app is short for application. It is shorthand for small, restricted programs that run without full access to the systems they are installed on. Windows 8.1 apps can add an informative "live tile" to the start screen (also referred to as the "lock screen") of the latest Windows operating system.  These "live tiles" allow applications to present live information in a condensed and standardized format. Users can choose tile sizes for each program and organize them on the screen.  The latest SLOBs app adds support for the largest and smallest available "live tiles" and other Windows 8.1 improvements.

Finally, the group's website and apps are designed to sharing stories as easily as possible. All include links to share stories on Twitter, Facebook and other social media. The bloggers also add the standard news reporting of the top topic at the bottom of the page/app. This helps users compare what the bloggers comments to what is being released in the news media. This feature is used by other bloggers and commentors to quickly get up to speed on the current hot topic in order to add to the discussion .

Go download the app and review the website.

San Diego Tea Party Bloggers

Thursday, September 11, 2014

San Diego School Police Get Armored Vehicle, Lockdown Elementary School to Justify

September 10th, 2014 in San Diego was an eye opener.

The U.S. Department of Defense has given the San Diego Unified School District's police a 14 ton military armored vehicle. As the news became widely available, an elementary school went into lockdown. The timely set of events seemed to justify the acquisition, but it turned out to be an off-campus argument between a mother and her 19 year old son.

Fletcher Hills Elementary on LockdownFletcher Hills Elementary school parents were terrified when notified that the school had been placed in lockdown. Parents were not subsequently told that their children were available for pickup or that the situation had not been a threat to the school.

NBC San Diego:
El Cajon Police officers say the commotion started Wednesday when Christopher Wilson, 19, was walking down the street and got into a confrontation with a homeowner, about a block away from Fletcher Hills Elementary.
The district said the rescue vehicle is one of the ways it is responding to the 2012 mass shooting at Sandy Hook Elementary in Newtown, Connecticut, and preparing itself for potential disasters in the future.
We have since been told that the homeowner in question was Mr. Wilson's mother. She had thrown him out of the house and then called the police. Wilson's mother told NBC 7 that her son also has a restraining order against him by his father.  We did not find any reports of Wilson's mother accusing him of brandishing a weapon.

Several reports specified that Wilson had removed a hatchet or other wedged object from a bag and then walked past the school. It is unclear who witnessed him remove the object from the bag.

UT San Diego:
Later, a campus supervisor told police the suspect walked past the school, (El Cajon police Lt. Rob) Ransweiler said. The supervisor recognized the suspect and followed him to the front yard of his Chatham Street home near North Westwind Drive, just east of the campus.

Officers arrived and tried to convince the man to come outside. They also called his mother, who made similar pleas (via bull horn), but he wasn't in the home, Ransweiler said. A hatchet wasn't located either.
Given the current information, Wilson may have grabbed a cell phone from a backpack and simply left.  However, the news media immediately painted him as a mad-man who "forced a school into lockdown." News reporting sensationalism isn't a surprise, but the timing is particularly convenient.

...back to our new school tank...

The Mine Resistant Armored Vehicle (MRAP) was acquired via the 1033 program. The program allows the federal government to provide surplus military equipment to law enforcement. San Diego Unified paid just under $5,000 shipping cost for the vehicle. The cost to remove weapons from the vehicle was not reported. The vehicle's capability of rearmament was not revealed, but we suspect all the weapon mounts are intact and available.

If memory serves, our troops in Iraq and Afghanistan could not get these MRAP for several years. Now, SDUSD says the vehicle is needed to truck around donated medical supplies?  This acquisition is so unjustified that even instilling fear for "the children" doesn't resonate.

Additional Sources:
Fox 5 San Diego
CBS News 8 San Diego
KPBS San Diego

Thursday, August 14, 2014

Bitcoin Complaint to Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau issued a misinformed statement about the dangers of bitcoin other cryptocurrencies. The advisory was intended to instill fear and uncertainty about the new form of currency. Some of the inane statements include (italics ours):

  • Exchange rates are volatile and costs unclear (stock market and broker fees? Exchanges typically charge a flat rate 0.2% fee or less, which is as clear as it gets.)
  • Hackers and scammers pose serious security threats: Virtual currencies are targets for highly sophisticated hackers and scammers. Individuals, digital wallet providers, and exchanges are all at risk. (Bitcoin has already been tested and found secure. That is why individual companies like GOX that had not properly implemented bitcoin are touted instead of bitcoin as a technology being presented as flawed or insecure. Bitcoin can't be hacked by the US government, thus the attacks via advisories. Small hackers don't pose any risk. )
  • Companies may not offer help or refunds for lost or stolen funds (How is this specific to cryptocurrency? Isn't this why some people shop at Nordstrom )
The press release did help destabilize the bitcoin market and millions of people lost money. It was enough to inspire a mocking complaint with the CFPB about the CFPB.  The complaint is tongue-in-cheek, but also attempts to make some basic points.

Describe what happened so we can understand the issue:

The Consumer Financial Protection Bureau released a press release that adversely affected millions of individuals and businesses by erroneously implying that cryptocurrencies are more risky than traditional currencies and credit cards. Thousands of volunteers have worked in the open source development community to bring this innovative and promising new technology to the public. At the macro level, cryptocurrencies will reduce or eliminate credit card fraud, reduce bank fees, lower small business costs and untie money from government corruption and bad monetary policy. At an individual level, exposing personal identity information and credit details to strangers over the internet, to be viewed, copied, stolen and abused is an unnecessary risk associated with all credit card transactions and is directly addressed by cryptocurrencies like bitcoin. 
Stifling this technology through government power will hinder the economy and needlessly contribute to the harm done to millions through identity theft and credit card fraud annually.
It is apparent that the government is putting power above the public interest and is preying upon the uninformed. This sort of misinformation campaign is used to instill FUD (fear, uncertainty and doubt) in competitors, innovative ideas, improved products and superior technologies. Using the power of government in this way is deeply disturbing.
Further, there is no form on their website to submit a complaint relating to bitcoin or other cryptocurrencies. The form only allows complaints about money transfers.

 What do you think would be a fair resolution to your issue?:

The CFPB can resolve this issue by releasing a press release explaining cryptocurrencies are more safe than credit cards and promise to end billions in credit card fraud annually. With
cryptocurrency, as with cash, consumers do not expose their the personal identity information, credit card number or PIN. This information is not transferred, processed, and stored and thus can't be stolen and abused by third parties. Credit card fraud, where not only personal identity of the owner is stolen, but also the credit card information is stolen with it, is rampant when purchasing goods and services. This incurs a financial barrier of compliance costs and liabilities on small business related to processing and storing credit card information. 
Large retailers are increasingly victims of data security breaches. Target had more than 1 million customer records stolen, including credit card information. Smaller retailers are less able to
prevent data security breaches.  A 2013 ITRC survey shows that 15.6% of all data breaches expose credit card information.  
Futher, the credit card system was designed in the 1960's and was never intended for use on the internet. The Internet is a public network where the transmitted data is easily visible to unknown third parties. Recent revelations that SSL (the security layer used on websites) was compromised by spy agencies adds another level of concern with regard to the use of credit cards over the internet.
Lastly, if someone somehow gains access to a cryptocurrency wallet, it is strongly password encrypted, unlike a credit cards or cash.

Feel free to use this text, or improve it and submit further mocking complaints with the CFPB: click here

The fact that the US Government is the largest holder of bitcoin in the world, did not make it into this complaint.  Oops. Click here to see their wallet.

Friday, June 27, 2014

Government Strikes at Bitcoin Investors

Bitcoin - Encryption We Trust


Bitcoin is a technology that allows for trade over the internet without the possibility of credit card fraud and without bank fees. Where credit cards were created for the pre-internet world and require account information to be traded, bitcoin is like cash. You pay someone Bitcoin, not your bitcoin account information. This is why bitcoin is a cryptocurrency.

This provides a lot of public good. People can buy from anywhere in the world without bank imposed fees or the worry that an unknown foreign company will steal their credit card information. Bitcoin users are also immune to things like bank account freezes or non-sufficient fund charges. Each bitcoin user has their own independent encrypted wallet. When combined with a long, strong pass-phrase (passwords are too short for effective security), bitcoin in a users wallet are more secure than money held in a bank account.

The government frowns upon bitcoin. Many governments oppose it, but not because bitcoin is evil. Governments use various rationalizations that boil down to the governments greed for power to control money. Bitcoin is money backed by mathematics, not governments.

Bitcoin is created in limited quantities, so it cannot be printed and artificially inflated. There is a fixed total amount of Bitcoin. Bitcoin must be "mined" which means computer algorithms reward people for cracking codes. The codes become harder the more computing power is thrown at bitcoin, so no one can make all the Bitcoin. There is also an element of randomness to ensure that little guys have a chance.

When laws are used against the public good, or to empower the powerful, we nerds call this "lawful evil". Slavery, fascism, communism are all examples of the law being used to enrich some at the expense of others. All governments are prone to the temptations of "lawful evil" because government is the concentration of power. Government can be looked at as the monopoly of the use of force. Which is why George Washington explained, "Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master."

The War on Bitcoin

The government really has no bigger role in the technology of bitcoin than it would in some foreign currency. As a matter of fact, we sometimes forget that the power to "regulate" was intended to promote trade by making it "more regular."  Bitcoin is self-regulating, it can't be stolen, hacked, monopolized or counterfeited. It is just a new currency of trade designed for the internet. Not only is there no need for government regulation of bitcoin, intervention doesn't serve the public good.

Regardless, the most powerful government in the world, The U.S. Government, has crafted a Machiavellian strategy to stop bitcoin.

Some of the earliest adopters of bitcoin were people trading drugs and other illegal items on a website called Silk Road, so the U.S. Government shut down the website. They seized 29,656 Bitcoin from the accounts users stored on the Silk Road servers (not held in their personal encrypted wallets). In the beginning, Bitcoin were only worth a few dollars, so this really wasn't much money. The operator of the site accumulated 144,000 Bitcoin through fees. These coins were also seized but were held in a secure wallet that the government could not access. The U.S. Marshals took the 29,656 bitcoin from the website's servers and the FBI took the 144,000 Bitcoin wallet from the proprietor, Ross Ulbricht aka “Dread Pirate Roberts".

We are not condoning illegal activity, but Bitcoin wasn't the problem with silk road. The U.S. Dollar is the actual currency of the drug trade and illegal activity. But, the U.S. government learned that Bitcoin was a threat to their income stream because they couldn't just seize cash and bank accounts. Instead they held an encrypted wallet they couldn't crack.

Civil Asset Forfeiture Law allows government agencies that seizes assets to then charge the assets with a crime and sell or use those assets themselves. Most Civil Asset Forfeitures are not associated with a criminal case. As a matter of fact, if you carry $10,000 in cash, it must be declared or it can just be seized. Unlike normal due process, you must then prove that the money is yours and how you earned it. There is no presumption of innocence.
"Cato Institute, a libertarian think-tank, found that 80% of people whose property was seized by the federal government were never charged with a crime. Forfeiture proceedings are brought not against people, but against property that law enforcement need only allege is connected to criminal activity."
When the government seized Bitcoin from Silk Road, some of the coins were being traded for legitimate goods, but it would be impossible for someone to fight on behalf of their Bitcoin as the Bitcoin would themselves be charged with money laundering due to the Silk Road system through Civil Asset Forfeiture.

However, because Bitcoin is now seen as a threat to the revenue stream of the government a strategy appears to have been developed to suppress the revolutionary technology.  The U.S. Government doesn't see Bitcoin as a threat to the dollar because the price of bitcoin would have to be above $4,600 to allow $1 trillion in transactions value to take place globally. At $500-600, bitcoin is just a nuisance for law enforcement asset seizures. So, the anti-bitcoin strategy appears to be aimed at minimizing this strategy by suppressing the price of bitcoin.

With this price suppression in mind, the first step is to declare the new currency a "capital or non-capital asset" or property through IRS Notice 2014-21.  Without this declaration, bitcoin would be reported as cash, and companies using bitcoin could trade dollars and Bitcoin and report them on the same part of the balance sheets to investors. By the IRS declaring it a capital asset, bitcoin focused companies will show weaker cash and current ratios than non-bitcoin companies.

Bitcoin companies would have to be big for cash ratios to matter, but Bitcoin seized by law enforcement also allows for a broader attack on the new cryptocurrency. Every company holding Bitcoin will show less assets if the price falls. This could affect their ability to get loans or new investors. So, today June 27th, 2014 is the first run at dumping thousands of bitcoin on the market at the end of a reporting period. The U.S. Marshals timed their 29,656 bitcoin auction to coincide with the end of the 2nd quarter for reporting purposes.

The auction will sell Bitcoin in blocks of 3,000 and requires a $200,000 deposit. This will keep small investors out of the auction and ensure that companies with reporting requirements, public or private, buy the coins. These companies will then have to sell a portion of the coins within the next three days, June 30th, or show a hit to their cash balances.

The Bitcoin sold at discount at auction will then in-turn drive down the market price due to the immediate sales. This reduces the capital assets of every other company with Bitcoin that reports on June 30th as the end of the second fiscal quarter. (Most corporations use year end as their fiscal year end.)

This hit to bitcoin related companies will discourage additional investment, make financing more difficult and allow for the lapdog media to push a narrative headline that bitcoin is failing.

If this strategy works, the remaining 144,000 FBI seized Bitcoin will follow the same strategy. They would be auctioned in blocks just before the end of the next several fiscal quarters.

(The government eventually was given access to the seized Bitcoin after convincing the Silk Road proprietor that they were going to crash the price and that he needed to cash out.)

A New Hope

There is one hitch in this strategy. Bitcoin is not the only cryptocurrency. The second leading currency is called Litecoin. It is newer than bitcoin, transactions are faster, there are more coins, the coins are still only around $10 and the coins are more easily mined by small players due to a newer algorithm called "scrypt." Many exchanges allow for Bitcoin to be directly traded for Litecoin, so companies with Bitcoin can move to Litecoin instead of suffering losses to their balance sheets during the Auctions/dumps.


Due to this flaw in the anti-bitcoin strategy, government agents have had to contend with the #MoveToLiteCoin movement. They primarily must resort to insults and personal attacks otherwise known as FUD (Fear, Uncertainty and Doubt) on proponents of #MoveToLiteCoin to discourage others from joining the movement. In the end, they don't have enough seized LiteCoin to suppress the market.

Shortly after our first report on #MoveToLiteCoin, someone traded 1600 Bitcoin for Litecoin. Last night nearly 100,000 of these were dumped on the market with almost no effect. If this was the government's attempt at stopping Litecoin in order to further their anti-bitcoin strategy, the U.S. Government can't stop Bitcoin.

We expect to see Bitcoin prices to fall through June 30th and Litecoin prices to rise. After the U.S. Marshals Bitcoin dump is over the media will run press release driven stories on "Bitcoin's crash." Review both Bitcoin and Litecoin prices to prove that Bitcoin is just too flexible to stop due to its alternative cryptocurrency partners. Even if Bitcoin prices fall, watch as Bitcoin quickly rebounds as investors return from their #MoveToLiteCoin.

Friday, June 13, 2014

#MoveToLiteCoin #DefundTheFeds Bitcoin Response to Silk Road Auction


The Bitcoin community is responding to the auction of seized Silk Road coins by moving money into LiteCoin and other alternative coins. The government agencies selling seized coins are seen to be "dumping" them on the market in an effort to suppress the internet currency and it is has sparked outrage.  Instead of allowing the government agencies to profit, the community is taking action by moving money via exchanges around the world. The money is being put into so-called "alt coins", led by the second largest cryptocurrency, LiteCoin.

Thus far the Bitcoin fell from $648.89 to $560, with a rebound to $589 as of posting of this article. If this campaign takes hold you might expect further reductions in price, accompanied by increases in LiteCoin and other cryptocurrencies.

Social media hubs like twitter and reddit, alongside bitcoin community forums and exchange chat areas are being used to organize the movement. Hashtags include:

Move To LiteCoin
Move To LiteCoin


U.S. Civil Asset forfeiture law allows departments that seize cash and other assets to use it for various expenses. This is incentive for the law enforcement agencies to sell assets or spend seized cash, but without the rigor of traditional due process.  For instance, if you are a U.S. citizen carrying $10,000 in cash, it must be declared or it is subject to seizure. If seized, you must prove that it is yours and how you earned it. The legal system may not be impartial in the process because it can use the cash.
"80% of people whose property was seized by the federal government were never charged with a crime. Forfeiture proceedings are brought not against people, but against property that law enforcement need only allege is connected to criminal activity. "
Silk Road bitcoins were seized by the U.S. Marshals Service from servers and 29,656 ($17,793,600) are to be auctioned. These coins are to be sold on June 27th over a 12-hour period to anyone willing to put up $200,000 as a deposit. Additionally, 144,341 ($86,604,600) bitcoins were seized from "Dread Pirate Roberts" or Ross William Ulbricht, the operator of Silk Road. Until recently, these coins were not available for law enforcement to sell on the market because they were unable to crack the encrypted password protection. Bitcoin proponents have pointed to this as proof that bitcoin is more secure than assets held in banks. Mr. Ulbricht apparently gave up this password as the coins have recently been moved into a new wallet.

All bitcoin transactions are tracked automatically via the blockchain, so we can view the two accounts which held the Silk Road seized coins. DPR Seized Coins were moved to DPR Seized Coins 2 on July 12, 2014 in an apparent "shot over the bow" of the bitcoin community by the U.S. Government.  Unfortunately the bureaucrats failed to realized that this warning shot might have consequences.

Money for fleets of shiny new government vehicles, huge salary bonuses and bloated expense accounts may now evaporate when the government attempts to cash in.  Undoubtedly, some government social media workers will then begin pushing a narrative that bitcoin is "unstable" as they did after someone sold down the price of bitcoin to $102, likely due to a trading glitch.  However, the price rebounded in minutes after that incident, which is not widely reported. The #MoveToLiteCoin campaign intends for the price of bitcoin to resume it's epic rise when the alt coin money returns.

Some of the coins being used as repositories of crypto-wealth include: Litecoin, NameCoinDogeCoin


Thursday, May 8, 2014

FEC Approves Bitcoin Political Power

Bitcoin now accepted by political campaigns and PACs

The US Federal Exchange Commission (FEC) has decided that political campaigns and political action committees (PAC) may now accept and invest in bitcoin. The cyrpto currency may be accepted as a in-kind donation per this draft advisory document.

The specific ruling is worded as:
The Commission concludes that bitcoins are “money or anything of value” within the meaning of the Act and that MYL may accept contributions as it proposes pursuant to the identification, deposit, and valuation procedures

The Hill had previously reported a delay in the decision on 4/23/2014,
The commission delayed a formal vote on a petition to be able to accept up to $100 worth of the money, but commissioners seemed optimistic that they could draft a compromise to allow a limited amount of contributions in the virtual currency.
The commission had split when a conservative group, Conservative Action Fund PAC, proposed a similar proposal in November. In April, Make Your Laws PAC sought to accept bitcoins as contributions, as well as purchase, sell and trade them.

Make Your Laws PAC describes itself as non-partisan and registered in September 2012. MYL introduces its role as a technology company in politics:
Make Your Laws makes this intuitive process of trust even easier through some clever use of technology. Of course, users can always proxy to people they know and trust personally — their friends, family, and other influential figures in their lives. But often, users will want to know what experts and organizations are more dedicated to their issues.

First, based on how an individual responds to examples of controversial proposals, we can recommend to the user a number of public proxies who share their views and can be trusted to better track the issues on a given topic.

Second, as part of the discussion process, users will find that they end up agreeing or disagreeing with people that they might not have otherwise had contact with — people who, through the organic process of social interaction, become influential through their words. Make Your Laws makes it easy to add these people to one's list of advisors.

Finally, when there are differences of opinions between proxies, Make Your Laws can ask the user questions that will help to determine what advisors might better serve their needs, and better represent their views overall.
The draft advisory states that bitcoins may be accepted, purchased on exchanges and held as investments, but seems to state that employees cannot be paid in bitcoins and the currency must be converted to fiat before making purchases due to reporting requirements:
MYL proposes to accept bitcoins only through an online form on which each bitcoin contributor, regardless of the proposed contribution amount, will have to provide his or her name, physical address, occupation, and
MYL proposes to accept only $100 worth of bitcoin per contributor per election (as identified using the practices just described)
The Commission concludes that the requestor may accept bitcoin contributions as proposed in its Advisory Opinion Request and supplemental filings subject to valuation and reporting procedures similar to those that the Commission has previously recognized in analogous circumstances. The Commission further concludes that the requestor may purchase bitcoins with funds from its campaign depository for investment purposes but may not make disbursements using those purchased bitcoins
Bitcoin gains political power
Other sources: CoinDesk

Monday, April 28, 2014

Does the BofA "Math Error" Affect Bank Accounts?

Bank of America had to suspend its stock buyback program and cancel planned dividend payments due to a "math error." The error reduces the amount of high quality capital owned by the bank by about $4 billion. It does not directly affect bank accounts. However, the stock has pulled down the price of financial stocks across the board as investors and consumers worry about a banking system that can't keep count of money.

Reuters, "The Federal Reserve ordered Bank of America to suspend and resubmit its 2014 capital plans within 30 days. Its shares fell 4.7 percent at midday."

CNN Money"The second largest U.S. bank by assets said the error was caused by an "incorrect adjustment" related to bad debts the bank assumed when it acquired Merrill Lynch in 2009. It means the bank doesn't have as much high-quality capital on hand as everyone thought.

It's the latest in a series of regulatory and legal setbacks for the bank's shareholders after it acquired mortgage lender Countrywide and Merrill Lynch during the financial crisis."

If you are worried about your bank accounts, there is a new open source solution to banking called Bitcoin. It includes a public ledger called the blockchain. Thousands of dedicated users run independent processing of the transactions, and no centralized errors like this can occur. Each transaction is independently and repeatedly "confirmed." 

The money called bitcoin is designed for modern life on the internet and is encrypted with SHA256 encryption. This encryption is so powerful, some say it would take all the power of all the suns in the galaxy and billions of years to crack.

Some benefits of bitcoin vs tribal fiat money include:

  • Bankers and Governments hate it, as it takes away their control of money.
  • You do not give up account information to pay for things, eliminating credit card fraud.
  • There is essentially no transaction fee, or you can choose to pay a small fee to speed up your transaction. This eliminates bank fees like wire transfer fees.
  • There are no "bank" fees to hold bitcion.
  • You can hold your own bitcoins in an encrypted wallet, eliminating the need for banks.
  • Bitcoins are transferred like an email. You send and forget over a secure network protocol.
  • Eliminates currency exchange costs or risk. Essentially, you could go on a world vacation and never have to worry about the local currency.
  • There is no limit to the amount you can hold. Unlike cash which must be declared in amounts over $10,000 in the USA. 
  • It was designed for the internet age and doesn't require "credit card protection" because it is already secured by powerful encryption.
  • You can send the money anywhere in the world, to anyone, anytime you like for free.
  • Unlike fiat "bills" a bitcoin can be subdivided endlessly below the decimal point. 
  • etc...
Some drawbacks of bitcoin:
  • Bankers and Governments hate it, as it takes away their control of money.
  • It is not available at every store for every transaction yet. (see to use it at major retailers.)
  • Access to bitcoin is currently restricted. Getting ahold of bitcoins is relatively difficult. (See and 
  • The currency has value based on exchanges which are heavily infiltrated by governments and institutions determined to stop it or manipulate it. Bitcoin is the battleground of financial freedom.  
  • There is a limited quantity. When people die, or lose their passphrase(*), the bitcoins in their encrypted wallet could be lost, diminishing the supply.
  • The media is biased against it.  You will probably be demonized at some point for not using "dollars" or whichever tribal fiat currency you currently use.
  • Technical weaknesses. Because everything created by man is flawed, bitcoin has been battle tested by real life users and hackers. It has come out on top, but someday it may need to be updated, like all software.

* Passphrases: you should no longer use passwords. Use entire sentences or phrases with punctuation and numbers. Passwords, especially under 9 characters, are not secure. The formula for passphrase difficulty is (number of possible characters)^(number of characters used in password).  For example, a four digit pin number has only 10^4 difficulty or 10,000 combinations.




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