The question breaks down into two parts:
Governments are in the business of regulating certain activities—hopefully in an effort to serve the public good. In the case of business methods and activities, their goal is to maintain an orderly marketplace; one that is fair, safe and conducive to economic growth.
But regulation that lacks a clear purpose or a reasonable detection and enforcement mechanism is folly. Such regulation risks making government seem arbitrary, punitive or ineffective.
«— This is money. It is not a promissory note, a metaphor, an analogy or an abstract representation of money in some account. It is the money itself. Unlike your national currency, it does not require an underlying asset or redemption guarantee.
Bitcoin is remarkably resistant to effective regulation because it is a fully distributed, peer-to-peer mechanism. There is no central set of books, no bank to subpoena, and no central committee to pressure (at least not anyone who can put the genie back into the bottle). In essence, there is no choke point or accountable administrative party.
Sure—it is possible to trace some transactions and legislate against ‘mixers’ and other anonymization methods—but there is no way to prevent a transaction before it occurs or to know the current distribution of assets. Bitcoin can exist as a printed QR code and it can be transmitted from a jail cell with a blinking flashlight. Sending bitcoin from Alice to Bob has no intermediary. Settlement requires only that one of the parties eventually has access to the Internet. But, there is no credit authority or central asset verification. [continue below image]…
If you are thinking of legislating against the use of Bitcoin, you might as well pass laws to ban the mating of feral cats or forbid water from seeping into underground basements. These things are beyond the domain of human geopolitics. You can try to shape the environment (e.g. offer incentives to cats and water levels), but you cannot stop sex or seepage.
Fortunately, Bitcoin is not a threat to governments—not even to spending or taxation. A gross misunderstanding of economics and sociology has led some nations to be suspicious of Bitcoin, but this improper perception is abating. Governments are gradually recognizing that Bitcoin presents more of an opportunity than a threat.
I have written more extensively on this issue:
Philip Raymond is co-chair of Cryptocurrency Standards Association, MC for The Bitcoin Event in NY and board member for Lifeboat Foundation. This fall, he will teach Cryptocurrency and The Blockchain in Massachusetts.
Here in the Lifeboat Blog, I have the luxury of pontificating on existential, scientific and technical topics that beg for an audience—and sometimes—a pithy opinion. Regular Lifeboat readers know that I was recently named most viewed Bitcoin writer at Quora under a Nom de Plume.
Quora is not a typical Blog. It is an educational site. Questions and numerous answers form the basis of a crowd-sourced popularity contest. Readers can direct questions to specific experts or armchair analysts. A voting algorithm leads to the emergence of some very knowledgeable answers, even among laypersons and ‘armchair’ experts.
During the past few weeks, Quora readers asked me a litany of queries about Bitcoin and the blockchain, and so I am sharing selected Q&A here at Lifeboat. This is my professional field—and so, just as with Mr. Trump, I must resist an urge to be verbose or bombastic. My answers are not the shortest, but they are compact. Some employ metaphors, but they explain complex ideas across a broad audience.
As you browse some recent Bitcoin questions below, click a question for which you know the least. (Example: Do you know what the coming ‘halving event’ is about?). Leave a comment or question. I am interested in your opinion.
Philip Raymond sits on Lifeboat’s New Money Systems Board, is co-chair of the
The Cryptocurrency Standards Association, and is a most viewed writer at Quora.
Still trying to figure out how Luxembourg got a space program.
(AFP) Luxembourg has staked its claim to the final frontier with an ambitious plan to profit from the mining of asteroids, the government said Thursday.
The Grand Duchy has joined forces with American company Deep Space Industries (DSI) to cash in on the wealth of natural resources thought to exist on asteroids.
The two have inked an agreement that will pave the way for Luxembourg to partly fund DSI’s plans to probe nearby asteroids for mineral riches using “nano” spaceships.
Deep Space Industries, the asteroid mining company, has signed a Memorandum of Understanding with the Luxembourg Government to co-fund the development and launch of DSI’s first spacecraft. Known as Prospector-X, the small spacecraft will test key technologies in Low Earth Orbit that will be necessary for future asteroid prospecting.
Deep Space Industries and the Luxembourg Government announce partnership to commercialize space resources.
Asteroid mining company Deep Space Industries, together with the Luxembourg Government and the Société Nationale de Crédit et d’Investissement (SNCI), the national banking institution in Luxembourg, have signed an agreement formalizing their partnership to explore, use, and commercialize space resources as part of Luxembourg’s spaceresources.lu initiative.
The Luxembourg Government will work with Deep Space Industries to co-fund relevant R&D projects that help further develop the technology needed to mine asteroids and build a supply chain of valuable resources in space.
With long-term plans for in-space resource extraction in the form of asteroid mining, Deep Space Industries (DSI) is offering an exciting business opportunity. It is aiming to change the economics of space by providing the technical resources, capabilities and systems required to harvest, process, manufacture and market in-space resources. DSI is already generating revenue from commercial contracts, as well as government and university research projects.
The Disrupt Space summit brought together a large number of entrepreneurs from around Europe and the world who are intent on reinventing the space industry. A panel of judges chose Deep Space Industries as the winner among five finalists in a start-up pitch.
Spaceoneers caught up with Daniel Faber, Deep Space Industries’ CEO at the summit to hear about the company’s long-term plans and the exciting business opportunity in asteroid mining.
Ask an Information Architect, CDO, Data Architect (Enterprise and non-Enterprise) they will tell you they have always known that information/ data is a basic staple like Electricity all along; and glad that folks are finally realizing it. So, the same view that we apply to utilities as core to our infrastructure & survival; we should also apply the same value and view about information. And, in fact, information in some areas can be even more important than electricity when you consider information can launch missals, cure diseases, make you poor or wealthy, take down a government or even a country.
What is information? Is it energy, matter, or something completely different? Although we take this word for granted and without much thought in today’s world of fast Internet and digital media, this was not the case in 1948 when Claude Shannon laid the foundations of information theory. His landmark paper interpreted information in purely mathematical terms, a decision that dematerialized information forever more. Not surprisingly, there are many nowadays that claim — rather unthinkingly — that human consciousness can be expressed as “pure information”, i.e. as something immaterial graced with digital immortality. And yet there is something fundamentally materialistic about information that we often ignore, although it stares us — literally — in the eye: the hardware that makes information happen.
As users we constantly interact with information via a machine of some kind, such as our laptop, smartphone or wearable. As developers or programmers we code via a computer terminal. As computer or network engineers we often have to wade through the sheltering heat of a server farm, or deal with the material properties of optical fibre or copper in our designs. Hardware and software are the fundamental ingredients of our digital world, both necessary not only in engineering information systems but in interacting with them as well. But this status quo is about to be massively disrupted by Artificial Intelligence.
A decade from now the postmillennial youngsters of the late 2020s will find it hard to believe that once upon a time the world was full of computers, smartphones and tablets. And that people had to interact with these machines in order to access information, or build information systems. For them information would be more like electricity: it will always be there, and always available to power whatever you want to do. And this will be possible because artificial intelligence systems will be able to manage information complexity so effectively that it will be possible to deliver the right information at the right person at the right time, almost at an instant. So let’s see what that would mean, and how different it would be from what we have today.
Unencumbered by red tape, these venture-backed companies believe that they can find a faster, cheaper way to fusion than government-sponsored projects, and some very influential people agree: besides Bezos, Microsoft cofounder Paul Allen and PayPal cofounder Peter Thiel are also backing firms at the forefront of fusion development.
The founders of Amazon and Microsoft are putting their fortunes into little-known fusion energy companies. Jonathan Frochtzwajg digs into a story that has strange parallels with fiction.
Hmmm; I guess the government needs to change its mode of operations. I believe that everyone has been saying this for a while now.
Technology companies are moving too fast for governments to keep up, according to a former chief of the US Defense Advanced Research Projects Agency (DARPA).
Kaigham (Ken) Gabriel was acting director of DARPA and the man behind drone technology and global positioning satellites, as well as the military’s top secret, high-tech operation responsible for inventing the forerunner to the internet, Arpanet.
He believes governments are fighting a losing battle with technologies such as encryption. But, when it comes to the possibility of advanced tech falling into the wrong hands, he doesn’t believe western governments should give up altogether.
