ConsenSys has acquired the private space outfit.
Category: bitcoin – Page 48
Transhumanist Zoltan Istvan becomes advisor at “Brain Space”! Welcome!
I recently become an advisor at Brain Space, a new #blockchain company creating a better system to deal with copyrights and patents. They have an ICO coming up here very soon. Here’s an article (with a video I did) with more info: https://medium.com/…/transhumanist-zoltan-istvan-becomes-ad… AND CHECK OUT THEIR WEBSITE: https://brain-space.io/
Zoltan Istvan, an American-Hungarian, began a solo, multi-year sailing journey around the world at the age of 21. His main cargo was 500 handpicked books, mostly classics. He’s explored over 100 countries — many as a journalist for the National Geographic Channel — writing, filming, and appearing in dozens of television stories, articles, and webcasts. His work has also been featured by The New York Times, Outside, Wired UK, Slate, Vice, San Francisco Chronicle, BBC Radio, CNN, CBS, RT, Fox News, the Travel Channel, and in much other media.
More about Zoltan at https://www.linkedin.com/in/zoltan-istvan-78aa2964/
Link to ICO: https://brain-space.io/
Link to the test version of copyright protection: https://deposit.brainspace.world/register
Will we all be using a blockchain currency some day?
At Quora.com, I respond to quetions on Bitcoin and Cryptocurrency. Today, a reader asked “Will we all be using a blockchain-based currency some day?”.
This is an easy question to answer, but not for usual Geeky reasons: A capped supply, redundant bookkeeping, privacy & liberty or blind passion. No, these are all tangential reasons. But first, let’s be clear about the answer:
Yes, Virginia. We are all destined to move,
eventually, to a blockchain based currency.
I am confident of this because of one enormous benefit that trumps all other considerations. Also, because of flawed arguments behind perceived negatives.
Let’s start by considering the list of reasons why many analysts and individuals expect cryptocurrencies to fail widespread adoption—especially as a currency:
- It lacks ‘intrinsic value’, government backing or a promise of redemption
- It facilitates crime
- Privacy options interfere with legitimate tax enforcement
- It is susceptible to hacks, scams, forgery, etc
- It is inherently deflationary, and thus retards economic growth
- It subverts a government’s right to control its own monetary policy
All statements are untrue, except the last two. My thoughts on each point are explained and justified in other articles—but let’s look at the two points that are partially true:
- Indeed, a capped blockchain-based cryptocurrency is deflationary, but this will not necessarily inhibit economic growth. In fact, it will greatly spur commerce, jobs and international trade.
- Yes, widespread adoption of a permissionless, open source, p2p cryptocurrency (not just as a payment instrument, but as the money itself), will decouple a government from its money supply, interest rates, and more. This independence combined with immutable trust is a very good thing for everyone, especially for government.
How so?…
Legislators, treasuries and reserve boards will lose their ability to manipulate the supply and demand of money. That’s because the biggest spender of all no longer gets to define “What is money?” Each dollar spent must be collected from taxpayers or borrowed from creditors who honestly believe in a nation’s ability to repay. Ultimately, Money out = Money in. This is what balancing the books requires in every organization.
This last point leads to certainty that we will all be using a blockchain based cryptocurrency—and not one that is issued by a government, nor one that is backed by gold, the dollar, a redemption promise—or some other thing of value.
Just like the dollar today, the value arises from trust and a robust two sided network. So, which of these things would you rather trust?
a) The honesty, fiscal restraint and transparency of transient politicians beholden to their political base?
b) The honesty, fiscal restraint and transparency of an asset which is capped, immutable, auditable? —One that has a robust two sided network and is not gated by any authority or sanctioned banking infrastructure
Today, with the exception of the United States Congress, everyone must ultimately balance their books: Individuals, households, corporations, NGOs, churches, charities, clubs, cities, states and even other national governments. Put another way: Only the United States can create money without a requirement to honor, repay or demonstrate equivalency. This remarkable exclusion was made possible by the post World War II evolution of the dollar as a “reserve currency” and the fractional reserve method by which US banks create money out of thin air and then lend it with the illusion of government insurance as backing. (A risky pyramid scheme that is gradually unravelling).
But, imagine a nation that agrees upon a form of cash that arises from a “perfect” and fair natural resource. Imagine a future where no one—not even governments—can game the system. Imagine a future where creditors know that a debtor cannot print paper currency to settle debts. Imagine what can be accomplished if citizens truly respect their government because the government lives by the same accounting rules as everyone else.
A fair cryptocurrency (based on Satoshi’s open-source code and free for anyone to use, mine, or trade) is gold for the modern age. But unlike gold, the total quantity is clearly understood. It is portable, electronically transmittable (instant settlement without a clearing house), immutable—and it needn’t be assayed in the field with each transaction.
And the biggest benefit arises as a byproduct directly of these properties: Cryptocurrency (and Bitcoin in particular) is remarkably good for government. All it takes for eventual success is an understanding of the mechanism, incremental improvement to safety and security practices and widespread trust that others will continue to value/covet your coins in the future. These are all achievable waypoints along the way to universal adoption.
Philip Raymond co-chairs CRYPSA, hosts the Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top writer at Quora. Book a presentation or consulting engagement.
You don’t understand Bitcoin because you think money is real
Maria Bustillos is founder of the blockchain supported publication, Popula. I stole the title of this post from her essay at Medium.com (linked below).* I hope that Maria considers it a tribute rather than title-plagiarism. Her article is blocked by a pay wall, so allow me to explain a concept that confounds even a Nobel Prize winning economist. My take on the issue is somewhat different than Ms. Bustillos.
The difficulty understanding or appreciating Bitcoin boils down to a misconception that the dollar is backed by something more tangible, such as gold, guns or the promise of redemption. Not only is this an illusion, but Bitcoin is backed by something far more tangible, intrinsic and durable.
The illusion that “real” value emanates from government coupled with a robust consumer economy has been woven into our DNA for millennia. But, the value we attribute to a Dollar, Euro, or Yuan is a result of conditioning rather than any intrinsic value. That same conditioning has led us to believe that there is something sane and inherent in a nation that controls its money supply and its monetary policy.
Most public works projects—power generation, space ships, or the telephone network—were controlled by government in the past. If not, they were regulated as a licensed monopoly. This creates a choke point, a lack of competition, and a gaping opportunity for inefficiency, mismanagement or graft. It defies a free market economy and it concentrates power in the hands of politicians. But, at one time, it seemed necessary.
You might assume that government controlled these industries because they relate to areas of critical infrastructure and public welfare. That’s part of it, but it’s not the real reason. In each sector, a distributed or free market solution was prevented due to technology limitations or issues of scaling and geography.
Government issued money exists because in the past, we had no mechanism to arrive at a consensus on the value of something that is portable, fungible, secure, anti-forgeable and easily transmitted. Not even Gold fits the bill (pun intended). Prior to 2009, the only thing that met the criteria for money in a modern society was government issued fiat. At least someone, somewhere said that this is money and that this is what we must use to pay our taxes.
Today, there is no more reason for a government to control its money supply than there is for it to control communication networks, space travel or package delivery services. Today, a free and competitive marketplace benefits all of these industries and even government itself. And here’s the kicker: No harm will come to a government that uses a completely trusted, transparent and decentralized currency, rather than firing up a printing press whenever a group of transient politicians spends beyond their means.
The economic order facilitated by the blockchain is not as radical as it seems. Aristotle sought to solve the double-spend problem and lamented the lack of an accounting tool that we can now address via the clever combination of encryption and a communications network that is both instant and ubiquitous.
I am not smarter than your average bear, nor am I clairvoyant. But once in a while, I recognize a truth before the masses—and before its time. It’s time to clearly and succinctly illuminate business, banks, consumers, creditors and government:
1. The value we attribute to the dollar is an illusion
2. Bitcoin is not just fair and cost effective. It is tangible and durable. It is good for consumers and good for governments.
Bitcoin ushers in an era of accountability and more fairness. It does not facilitate crime, nor interfere with a government’s ability to tax, spend or enforce tax collection.
Bitcoin is a cryptocurrency with a firmly capped supply. Will it lead to deflation? Could governments lose control over their own monetary policy? Yes to both questions…
But, these are each good things. Capping the money supply and decoupling a nation from monetary policy not only eliminates inflation—it increases access to capital, retires debt more quickly, reassures creditors, imposes transparency and honesty—And it accelerates economic growth, rather than retarding commerce.
Dispelling three millennia of conditioning can be confusing and unsettling. I hate understanding something before my peers. Let’s please get ahead of the curve on this one. I want to enjoy the benefits of using real money in my lifetime.
Related Reading:
- Can Cash Have Value if it Isn’t Real?
- You Don’t Understand Bitcoin Because You Think Money Is Real [site #2]
- Is Money Even Real?
* I wrote the first article more than 7 years ago. It is a simple explanation of a geeky, new economic mechanism. Bitcoin had not yet entered mainstream media nor gained attention of Wall Street investors. But consider the similarity to Maria’s tutorial in the 2nd article. Perhaps Maria and I think alike!
Philip Raymond co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top Bitcoin writer at Quora. Book a presentation or consulting engagement.
Biohackers Are Implanting Everything From Magnets to Sex Toys
Biohacking raises a host of ethical issues, particularly about data protection and cybersecurity as virtually every tech gadget risks being hacked or manipulated. And implants can even become cyberweapons, with the potential to send malicious links to others. “You can switch off and put away an infected smartphone, but you can’t do that with an implant,” says Friedemann Ebelt, an activist with Digitalcourage, a German data privacy and internet rights group.
Patrick Kramer sticks a needle into a customer’s hand and injects a microchip the size of a grain of rice under the skin. “You’re now a cyborg,” he says after plastering a Band-Aid on the small wound between Guilherme Geronimo’s thumb and index finger. The 34-year-old Brazilian plans to use the chip, similar to those implanted in millions of cats, dogs, and livestock, to unlock doors and store a digital business card.
Kramer is chief executive officer of Digiwell, a Hamburg startup in what aficionados call body hacking—digital technology inserted into people. Kramer says he’s implanted about 2,000 such chips in the past 18 months, and he has three in his own hands: to open his office door, store medical data, and share his contact information. Digiwell is one of a handful of companies offering similar services, and biohacking advocates estimate there are about 100,000 cyborgs worldwide. “The question isn’t ‘Do you have a microchip?’ ” Kramer says. “It’s more like, ‘How many?’ We’ve entered the mainstream.”
Research house Gartner Inc. identified do-it-yourself biohacking as one of five technology trends—others include artificial intelligence and blockchain—with the potential to disrupt businesses. The human augmentation market, which includes implants as well as bionic limbs and fledgling computer-brain connections, will grow more than tenfold, to $2.3 billion, by 2025, as industries as diverse as health care, defense, sports, and manufacturing adopt such technologies, researcher OG Analysis predicts. “We’re only at the beginning of this trend,” says Oliver Bendel, a professor at the University of Applied Sciences & Arts Northwestern Switzerland who specializes in machine ethics.
How the Blockchain Could Break Big Tech’s Hold on A.I.
Many A.I. experts are concerned that Facebook, Google and a few other big companies are hoarding talent in the field. The internet giants also control the massive troves of online data that are necessary to train and refine the best machine learning programs.
Several start-ups hope to use the technology introduced by Bitcoin to give broader access to the data and algorithms behind artificial intelligence.
Decentralized Last Mile Communication Using Mobile Mesh Networks
Globally decentralized protocols like Bittorrent, Bitcoin and Tor provide users a remarkable level of censorship resistance, privacy and communication freedom. But highly centralized local communication networks can block, throttle and log users of these protocols and work with governments and private firms to surveil and harass users. Centralized communication networks historically tend toward rent-seeking behavior, do a poor job at serving last-mile communities, and are fragile during natural and manmade disasters. This talk will review decentralized alternatives for local communication and demonstrate a new open source solution called TxTenna for sending offline Bitcoin transactions over a mobile mesh network.
Institute of Cryptoanarchy.
Ric Edelman: Bitcoin will be an asset class
Kudos to WallStreet analyst and advisor, Ric Edelman. He drank the Kool-Aid, he understands a profound sea change, and he sees the ducks starting to line up.
Check out the clearly articulated interview, below, with Bob Pisani at the New York Stock Exchange and legendary Wall Street advisor, Ric Edelman, (Not my term…That’s what CNBC anchor, Melissa Lee, calls him). Read between the lines, especially the last words in the video, below.
Ric Edleman has just joined Bitwise as both investor and advisor. This lends credibility and gravitas to the organization that created the world’s first cryptocurrency index fund. Bitwise benefits from Edelman’s affiliation, because the US has been slow (some would say “cautious”) in recognizing the facts on the ground: Cryptocurrency is already an asset class.
Edelman fully embraces a strong future for Bitcoin—not just as a currency or payment instrument, but as a legal and recognized asset class; one that is at the starting line of a wide open racetrack. He explains that the SEC sets a high bar for offering a Bitcoin ETF, but that this will be achieved. It will pave the way for large institutions, pension funds, etc to allocate a portion of money under management for blockchain products.
At timestamp 3:39, Melissa asks Edelman “Why wait for an ETF?” and “If you believe this strongly, why not advise clients to invest a portion of assets into Bitcoin right now?”
Edelman’s response is stunning. He explains that he is frustrated, because this is what he wants to advise. But, his firm is bound by the Investment Act of 1940—and so, they cannot tell a client “Go to Coinbase” or “Invest in a private fund such as Bitwise—that I am such a big fan of. We don’t have that ability in our practice.” [i.e. until the SEC recognizes Bitcoin as an asset].
In my opinion (and in the opinion of Edleman), SEC recognition of Bitcoin as an asset can’t be far off…
- It’s already happening in other countries. Reputable exchanges and index funds exist today.
- Unlike a traveler’s check or Amazon gift card, it is inherently a store of value, whether or not you believe that its value is intrinsic;
- The IRS already considers it an asset for tax purposes (What an odd schism in definition & treatment!)
- It is legal to pay staff in Bitcoin and use it to settle debts, for any recipient that accepts it. For employees and consultants, it is a wage or stipend, just like FIAT. They can convert into cash immediately—or retain crypto it to pay their own bills)
It’s not difficult to read between the lines. Edleman makes a clear recommendation, although he can not yet advise this—certainly not on the record. His personal forecast for long term adoption and appreciation, especially of Bitcoin, matches my own analysis. His new affiliation with Bitwise (a pretty bold move) demonstrates certain commitment.
This ends my analysis of Edelman’s strong endorsement. But it raises another important question:
If large financial institutions are likely to offer Bitcoin products
and services—and if credible analysts & advisors are chomping
at the bit to recommend this new asset class—shouldn’t we
invest in Bitcoin now?!
Ironically, I do not recommend hording or investing in cryptocurrency, even as a collectable. Why?! Because of the big “Investment Catch-22”. I don’t discourage investing in Bitcoin because I fear that its value will lessen. It is for a completely different reason. And so, my advice against investing is half-hearted.
Currently, Bitcoin and altcoins are widely misunderstood. Many people have these false impressions…
- It is not backed by anything
- It interferes with tax collection
- Cryptocurrency facilitates crime
- Governments will never allow it
- They do not convey compelling benefits over government-issued currency
- They water down the overall money supply
- Their deflationary nature threatens economic growth
- They are easier to lose and subject to scams & hacking
- They do not facilitate refunds, rescission, recourse and customer claims
- They interfere with a government’s ability to control its monetary supply
All of this is untrue, except the last item—and that one is a tremendous benefit.
Additionally, blockchain currencies fluctuate widely in real market purchasing power, many altcoins and all ICOs are scams, and acceptance is far from being ubiquitous. Clearly, widespread adoption requires stability, infrastructure, trust and ubiquity.
This cannot happen until two things occur:
- The fraction of transactions in normal business and retail commerce (purchases, salaries, debt payment and settlement) must significantly dwarf the fraction that is driven by investors, hoarders and speculators.
- A significant number of established brands, services or retailers must begin publishing prices in Bitcoin and honoring those prices throughout a defined sale period (e.g. until the next catalog is published or until the next production run).
Things are beginning to change, but for such a positive and transormative mechanism, that change is frustratingly gradual.
A series of falling dominos is already in process. But, the end game is retarded by those of us who invest in Bitcoin, because we are removing a limited resource from circulation and contributing to volatility. We do this, because we realize that—in the long run—Bitcoin can only go up in value. Yet, our investment at such an early stage (before consumer adoption) makes the infant sick.
Philip Raymond co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top Bitcoin writer at Quora. Book a presentation or consulting engagement.