Sat Jul 13, 2019 10:02am ESTComments Off on Crypto is a Ponzi
Simply put, time is limited for Crypto. I expect another bear swoon maybe as soon as this Summer. The counter to this is Bitfinex and Tether will pump BTC in one last glorious exit pump, dumping at a peak on retail noobs conditioned to HODL. This will be the last hurrah.
So how does this end? All the shitcoins, including BTC, with their broken economic models, experimental blockchains and “second layer” solutions will fail. This may take a year or more but it will happen.
Technology has transformed the human experience over the past 150 years. Medicine can now prevent and treat many previously incurable diseases. We can traverse the planet in hours instead of years. One farmer can feed a small town. Cars did not exist when my Great Grandmother was born.
Technology moves fast.
One area that we have not transformed is breaking our reliance on centrally managed fiat currencies. Our boom bust cycle that has existed since money was invented continues to this day. Every fiat currency in history has failed.
As the saying goes, “On a long enough timeline….”
We are now entering a new phase. Similar to how advances in medicine, transportation and technology altered our day to day life we are about to see a shift in how we value information and exchange goods.
Information is the new money.
Money has these characteristics:
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
When comparing the USD (the world’s reserve currency) to Bitcoin the USD is inferior in all areas except for acceptability (at this time). The world just hasn’t caught on yet. When it does, Bitcoin will beat the USD there too.
We are on the verge of a new era, distinct from every currency of the past.
No currency in history has been backed by Proof of Work. This makes Bitcoin the most reliable, resilient and fair money mankind has produced.
Very simply, Proof of Work creates honest money. We know for the next 100+ years how Bitcoin, via POW, will be issued and secured. This process is set in stone.
Proof of Work is fundamentally different than Fiat. Proof of Work is competitive. Miners are rewarded for securing the Bitcoin network. No work, no reward. Every Bitcoin is a product of Proof of Work providing cryptographic proof of it’s validity.
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. – Wikipedia
Stablecoins, eg Libra, are pegged to fiat. Fiat is a promise. Therefore, Libra is a promise about a promise! The world has been built on promises created by governments proclaiming their currency as means of exchange. Throughout history governments have broken their promises around Fiat. Fiat can be manipulated. It is subject to the presiding government’s challenges. Never in history has fiat survived the waxing and waning of the politicians. Example: as of the 70’s the US dollar is not backed by gold. Only more promises. Fiat is inferior to POW. Fiat, as a promise and as history has shown, is eventually broken.
POW is a fair playing field. No politician can manipulate Bitcoin. Money has always been power. In Bitcoin, information is power. This enables competition without boundaries. Even with unreliable internet anyone can compete in the Bitcoin Economy. I can sell my goods online for pennies from anywhere in a Bitcoin Economy.
The Bitcoin Economy will revolutionize information sharing and exchange of value.
Proof of Work is a breakthrough in how money is created. There is no promise, no peg to break in PoW. There is no dilution via centralized policy. Proof of Work replaces fiat with honest money. POW does not care about politics. POW is truth.
Bitcoin enables commerce at a microtransaction level. The Long Tail theory shows that microtransactions can generate a larger impact on the world economy than the Internet. Microtransactions in volume will dwarf current economic numbers.
Fiat currencies ultimately settle in USD, the king of Fiat, as USD is the world’s reserve currency. The problem is the USD is not honest money. There’s no peg to anything, only an empty promise. Bankers print with the Fed’s approval. Pegging the world’s currencies to the US Dollar is tying your lifeboat to the Titanic.
The world’s economies are living on borrowed time.
Stablecoins are lipstick on a pig (USD).We must dig deep. We can do better. This is a critical turning point for the world economy.
Bitcoin is truth.
Bitcoin is honest money. Every satoshi is always accounted for at all times. When Bitcoin is the standard slush funds, mismanagement and crony capitalism will die.
Stablecoins perpetuate a fiat system built on a promise. Bitcoin is a NOT a promise. Stablecoins are the gateway to a new century of serfdom.
The Bitcoin Whitepaper is a masterpiece. Maybe the greatest human achievement in the past 100 years.You don’t mess with a masterpiece. If that sounds like hyperbole you haven’t seen what Bitcon enables yet.
The Bitcoin Economy exposes corruption, lies and crime. Anyone who champions against Bitcoin has a stake in hiding something. To be clear, Bitcoin does not care what you do, but if you do something illegal Bitcoin is not your friend.
We are in the very earliest stages of Bitcoin. 10 years is nothing. It’s important to begin researching Bitcoin now. I’ve been at this for years and I have startling revelations almost daily.
Wed Jul 3, 2019 2:14pm ESTComments Off on The Twitter Killer
There is a new app powered by Bitcoin SV. It’s called Twetch. This early stage app has the potential to be a Twitter killer.
To use Twetch you must have a moneybutton.com wallet linked. Once on Twetch every action has a microtransaction fee in BSV associated. This small fee pays for putting the information on the BSV blockchain and rewards the content producer. Content producers monetizing via microtransactions is an unsolved problem on today’s Internet. BSV changes the game.
Similar to Twetch, there is Bitstagram, a Bitcoin SV powered version of Instagram. When someone likes your post on Twetch or Bitstagram you, the content provider, get paid.
For writing articles there are BSV powered sites yours.org and https://www.bitpaste.app/. Goodbye Medium and other paid blogging sites. Writers can now blog direct to the blockchain and be paid in BSV.
Now, imagine this for music. There is going to be a tidal wave of migration to BSV for artists sick of large record companies owning their music catalog. There is already a site available: https://www.audiob.app/ Sample screenshot below of a micro 3 cent transaction for a music file. You can’t do this anywhere else!
EDIT: Forgot to add https://streamanity.com/ as the BSV powered pay by time viewed replacement for YouTube.
These products are in early phase development. In the future I could see these platforms being customizable for content producers (and consumers). All censorship free, immutable and monetized. This a new economy, one that will dwarf the Internet explosion.
This will shift the game of social media owning your data and you being the product for advertisers, bots and phishing scams. Now you own the data and your puppy pictures pay you instead of Zuck.
There is a noticeable shift in BSV. Another development this week is a relatively unknown Crypto holder went to the Florida courtroom for the Kleiman vs Craig Wright hearing and reported about it on Twitter. At first he was anti BSV, but as he heard more he began to shift and the BTC army attacked him.
Bitcoin is a simple concept, peer to peer electronic cash, but deceptively difficult to describe.
In 2010 Satoshi himself (AKA Craig Wright) said:
“Sorry to be a wet blanket. Writing a description for this thing for general audiences is bloody hard. There’s nothing to relate it to.”
I have found the easiest way to explain Bitcoin is for someone to experience it. Going into a long explanation is less effective than having a person use Bitcoin. Explaining Bitcoin is a bit like describing how to balance on a bicycle. It pales in comparison to having a person actually ride a bike.
Bitcoin has come a long way since it’s release in 2009 but it’s still a mystery to most people. One of the recent and more significant developments to reduce this mystery has been the creation of user friendly wallets. The BSV wallet leaders are Handcash, RelayX, SimplyCash and Paymail (Paymail is part of moneybutton.com).
These wallets allow one person to send BSV to another person anywhere, instantly, with near zero fees by just knowing the other person’s wallet handle. You get to choose your handle when you create a new wallet.
For purposes of illustration consider the two versions of what I can share to get paid in BSV.
Handcash handle: coinspeak
BSV address: 1KPxVWD9tKuTBnk7qzCFZTRJbyJqUhjUTV
Which one do you think is easier to remember, put on a business card, or share with someone over the phone?
This is a big step forward in usability.
Once you use Bitcoin with a user friendly wallet the potential of Bitcoin becomes undeniable.
Since it’s easier for you to experience the power of Bitcoin than it is for me to explain it via more blogs, I am going to give away $5 in BSV to the first 20 people who post their Handcash handle (Android only) or SimplyCash handle (Android and IOS) in the comments below. Download either app and post your handle (and whether it’s Handcash or SimplyCash) and I will send you BSV. Have a friend download a wallet and send them a $1. Spread the virus.
Then you will experience the power of:
DO NOT FORGET TO BACKUP YOUR WALLET or you can lose your money.
I request that only new BSV users post their handles below. If you already have BSV feel free to ping any handles below with additional BSV.
You are on your way to experiencing Bitcoin. Warning: there’s no going back.
EDIT: This is not a feasible exercise on BTC. The current transaction fees on BTC are ~$3.50. To send $5 in BTC would cost $8.50. On BSV fees are less than a penny.
Bloomberg reports that the FATF rules are expected to require firms ranging from major spot exchanges such as Coinbase to asset managers like Fidelity Investments to gather data on all clients initiating transactions worth over $1,000 or 1,000 euros.
Big Brother wants to know everything. If they can’t just get the data directly off Google and FB’s servers then they will enact new laws. Even when your money is yours it’s only by the grace of the US Federal Government. ‘Murica!
Sarcasm aside, this will send many exchanges and coins running for cover. However, keeping to the theme of Honest Money BSV actually complies with these rules (as far as we know). BSV is publicly verifiable but also private, but not anonymous. I can’t look at your balance but you could disclose it to me and I can confirm it.
Imagine governments run on honest hard money. I don’t think the US fears Bitcoin as a new digital currency as much as they fear this may mean that their books and budgets would be transparent and easily audited. No more overruns, lost trillions or bribes. Honest money is honest government.
I am visiting Puerto Rico this month. My primary reason for visiting is to scout the island as my potential new home and tax shelter.
Puerto Rico is the only place in the entire world that a US citizen can live and be free from capital gains tax. Puerto Rico is a US territory so Puerto Ricans are US citizens. However, they can’t vote in national elections. No taxation without representation so….if you are a PR citizen you pay no cap gains. Nomad Capitalist has a long and slightly negative assessment of the pros/cons of moving to PR for this tax shelter.
They call Puerto Rico the Island of Enchantment. It’s beautiful here. Old San Juan is like living in Old Europe. The streets look like this:
The women look like this (PR has the third highest number of Miss Universe winners, incredible for small island):
It’s not all positive though. Some Puerto Ricans are upset that the US government has been dictating life on PR for decades not to mention the poor FEMA response after Hurricane Maria.
Due to the unique tax laws for Puerto Rican residents many US citizens have fled to PR. There is a very large crypto community here. A few years ago there was some publicity about Brock Pierce, EOS investor, creating a new Crypto based incubator / society. That seems to have died down but I can tell you in a few weeks here I have met more Crypto people in a small area than my travels through many large cities in different countries.
Boom bust shill Harry Dent and precious metals shill Peter Schiff live in Puerto Rico. In fact, I had the opportunity to speak one one for 20 minutes with Harry Dent at a recent crypto meetup here in San Juan. That kind of chance meeting seems unique to Puerto Rico.
Libra won’t go live until sometime in 2020. So it’s all a temperature check and FUD as FB algos crunch how to adjust their propaganda. Part of the paper says that as the tech matures that Libra coin will be further decentralized. Do you believe they will build this and then turn over any part of control? Never. This is a classic shell game.
FB users will not care what Libra is or bother to understand “blockchain”. They can barely manage their own messages. To the average FB user they will see they can now pay for their pizza inside FB. That will be useful. Now, imagine trying to secure the average FB users funds in an online wallet. There is going to need to be a serious breakthrough in usability and trust for Libra to be safe for anything other than pizza money.
Speaking of trust, what level of funds would you put into custodial ownership under FB? Pizza money? Car payments? Rent? Savings? I don’t see how FB breaks through from petty cash to replacing significant payment systems. The same can be said of Bitcoin. However, with Bitcoin you retain privacy and have no 3rd party risk.
FB will have 2B users to start. If all the early adopters deposit $20 USD Libra will probably be a top market cap coin. But that is relatively meaningless and could fade quickly. FB coin faces a different regulatory challenge than Bitcoin but I think in the end Bitcoin may have an easier time overcoming hurdles due to it being truly decentralized.
In the end I’m left with the boys from Silicon Valley do not understand Bitcoin. Bitcoin is an economic system expertly blended and balanced to provide a new global ledger. This ledger is immutable and can provide honest money for the world. I have been emphasizing “honest money” the past few posts. FB has zero chance of ever being a custodian of honest money
There is only one Bitcoin. The rest are just glorified databases and spreadsheets.
Sat Jun 15, 2019 11:47am ESTComments Off on The Creature from Silicon Valley
G. Edward Griffin wrote a book called “The Creature from Jekyll Island” in the 1960’s. Summary below:
Where does money come from? Where does it go? Who makes it? The money magician’s secrets are unveiled. Here is a close look at their mirrors and smoke machines, the pulleys, cogs, and wheels that create the grand illusion called money….. This book is about the most blatant scam of history. It’s all here: the cause of wars, boom-bust cycles, inflation, depression, prosperity. Your world view will definitely change. Putting it quite simply, this may be the most important book on world affairs you will ever read.
The book goes into how a group of powerful bankers came together in a secret meeting to create The Federal Reserve. To this day The Federal Reserve has not been audited and does not answer directly to any branch of the US Government. The Federal Reserve sets monetary policy and controls money supply. Very powerful stuff.
Each company paid $10M to be on the FB/Libra network to be involved in governance of the currency. Sound familiar?
Notice the theme in those companies? With the exception of Visa/MC most of those companies are Silicon Valley companies. They broker in info, specifically, your info.
Now the group are coming public about the meetings they’ve had and their intention to launch a new currency. A currency these companies will control 100%. Using their coin will submit you to their rules and regulations, possibly including censorship and confiscation. Those at the top can issue the currency per their own desires. The USD has lost 97% of it’s value as a result of Federal Reserve polices where Fed independently sets rules to benefit the unnamed Fed owners. Do you think this time is different?
But let’s not get too far into the weeds. Let’s evaluate this FB project vs Bitcoin at a high level.
LibraCoins is composed of a group of companies that paid for entry. They will control the currency as a group. You can safely assume that means they will act in their own self interest. Entry onto the network is a minimum $10M entry fee, approval from FB and/or partners. Likely certain parts of the world would be blocked from participating to further the founder’s interests and aligned nation states.
If you think FB has a lot of data about you now, wait till they also know where you spend your money.
Bitcoin is a system of honest money. Bitcoin is hyper competitive. Contrary to LibraCoin, the actors in Bitcoin are competing with each other to process transactions. This brilliant design makes Bitcoin stronger through decentralization. Libra will work towards increasing network power for the benefit of those at the top. Bitcoin is a Red Queen Game guaranteeing evolution such that no one company will reside in the top spot for long, but the protocol is made stronger for them having competed.
Information is money. The companies that comprise LibraCoin are information brokers. Users of LibraCoin are making 3rd party brokers of their info stronger. With Bitcoin, you own your identity and info. You can protect it and/or share it in granular fashion. Bitcoin’s privacy model turns the business model of Silicon Valley upside down.
FB/Libra coin is not new. It’s The Creature from Silicon Valley. A group of Silicon Valley elites are creating a currency that derives it’s value from their already stored bank of your information. This info is increasingly of interest to governments. Example: China’s Social Credit System. Using LibraCoin will usher the world further towards a world where your data is not your own and your behaviors are measured in relation to the desirability of that behavior with corporate and government doctrines.
LibraCoin users will be a cog in FB’s machine. Not only is this Edward Griffin’s “Creature from Jekyll Island” it’s also George Orwell’s “1984”
LibraCoin is the screen. BSV is the hammer.
The exchange of value via money is as old as humans. We are entering a new era for humans. Programmable money. Who holds the strings in this game will set the direction for humanity in the near future. Will it be an objectively honest system of money based on math or a currency issued by the Silicon Valley elite in cooperation with Western Nation states?
The real game Bitcoin has been waiting for has started.
The latest rumor is that FB is going to use BSV in some capacity with their new cryptocurrency.
This is possible, but not likely. I believe it was fueled by Zuck’s sister Randi commenting on Craig Wright in 2018 and then reignited by former nChain CEO Jimmy Nguyen tweeting @ Randi this week.
I’m covering this because it’s not IMPOSSIBLE but it also raises several questions:
-What coin could handle that volume?
-Can a giant like FB reshape crypto?
-When does the rumor mill end?
The only public blockchain approaching capacity to handle FB levels of volume is BSV. For that reason I think people are running with the rumor. It simply doesn’t make sense on any other coin.
If FB launches a coin, based on BSV or not, they will immediately have over 1B potential users. I don’t think this guarantees success. It requires trust in FB. By design, you don’t have to trust Bitcoin. Advantage: Bitcoin.
BSV promises microtransactions for exchanging information. Bitcoin is honest money (known inflation schedule and coins created as rewards for Proof of Work).
Honest money can mean honest info. It won’t stop rumors and lies, but your clicks won’t be tracked across the Internet and your data sold to advertising bidders. Via microtransactions you take back your data and your privacy. This changes the incentives model. The Internet and information landscape won’t be the same.
Bitcoin being honest money is one of the reasons I think BSV will be the winner. It has laid out plans for this and more, much more. I will cover Paymail, the new identity system in BSV, this week.
In the meantime, I leave you with this quote.
Don’t believe everything you read on the Internet.
Thu Jun 6, 2019 12:38pm ESTComments Off on $FB to launch GlobalCoin
Facebook is launching it’s own Cryptocurrency named GlobalCoin in a month and YOU can run your own node on their network for the low fee of $10,000,000. Facebook plans for this coin to be a “stable coin” pegged to USD.
Let’s break this down a bit. At $10M per node who is going to run this software? From Bitcoinist:
Currently, there’s no further information about any of the requirements needed to become a validator node or how these third-parties will be rewarded.
Use of the word validator indicates these are dumb nodes. The nodes aren’t doing any work in the network and the network isn’t competitive. This immediately throws red flags about this as a currency. Bitcoin works because Satoshi solved the problem of issuing honest money. Declaring a centralized corporate coin a cryptocurrency takes liberty with the definition of a crypto and will, sadly, fool 99% of the population. GlobalCoin will be centralized. Your transactions may not be immutable or censor free.
If it’s $10,000,000 to run a node and the nodes are only validating then I assume that the incentive to run a node is in transaction fees. I don’t think there are altruistic billionaires looking to run $10M FB nodes as a hobby. So far, we may be looking at a network that is mutable, censorable, centralized and under control of Mark Zuckerberg who will be charging you for the privelege of moving his personally issued magic internet money. What could go wrong?
GlobalCoin will be a “stable coin”. Let’s see how stable coins have worked out. Romans began shaving and clipping coins when they wanted to make up for shortfalls in their central planning by restocking their vaults with their citizens wealth. The US mint used to issue coins that contained silver. As years have worn on the precious metal content of our coins have been watered down, yet we still pretend US coins are stable coins. At one point US dollars were redeemable for precious metals to guarantee their value. That link was broken by Nixon in the 70’s.
Now, US dollars are pure fiat. There is no value behind them other than the fact the US Government has said it is so. No one has called our bluff because if the US falls so does most of the world. We will see if that game ends in our lifetimes.
But I digress. More recently Tether and USDC, primarily issued and used by Bitfinex and Coinbase respectively, have entered the crypto space as stable coins. Their entire premise is that you can redeem one unit of Tether or USDC for one USD.
Bitfinex and Coinbase issue Tether and USDC and have stated it’s backed by USD. Do you believe them? Guess what, Tether has never been audited. You know who else has never been audited? The Federal Reserve.
Tether and USDC supposedly exist to facilitate trading. In reality, stable coins exist for these companies to print money and pass the risk to their clients. The solvency of Tether has been hanging over Crypto for several years. It’s crypto’s dirty secret. Tether is a black swan waiting to emerge at any moment.
So Facebook plans to release a stablecoin, charge $10M for nodes to validate transactions and has no guarantee of your money being safe from censorship. Globalcoin will meet the fate of all stable coins. Eventually, the system grows, chaos enters and causes unforeseen circumstances and the stablecoin link is broken. You’re left with a fiat with possibly nothing backing it.
Bitcoin is a ledger. Your coins exist as entries on a ledger. Inflation is already known and in a sublime harmony of mathematical precision with a genius design of incentives. Bitcoin is immutable, uncensorable, honest, programmable money.
Anyone who buys GlobalCoin deserves their fate.
This could all be avoided if these genius level corporate CEOs understood the power of Bitcoin. Bitcoin is honest money. Bitcoin is a system that punishes cheaters. Bitcoin exposes corruption. If FB built Bitcoin into their applications they would be doing much more good than staking their own claim to the cryptoverse. Globalcoin will cause FUD and end terribly for them and possibly many others.