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Cardano (ADA) is the Next Bitcoin?

Cardano (ADA) is the Next Bitcoin?

Dear Crypto-Thinkers,

Keep your brain-caps on. It’s the time that we few long-haul penny investors outdo the professionals, since we have invested the time and sweat. And we can have our chocolate croissants too.

I often research how readers land on my relatively unknown and largely unread newsletter. I do this to both improve my information – I hope – but also to communicate what I think people are thinking. I mean Google Trends are one thing, but reading the fricking tea leaves is for the fools, like me.

I have more time to do this now, because I have spent countless hours, days, months, and now – years – with my nose to the computer screen looking at (investing in) cryptocurrencies. It all started before bitcoin, when I was looking for something like it…and now I’m here…and going slowly blind. (I’m old, what can I say. But I’ll bet I was in crypto before most.)

In some cases, I can pull the search phrases people use when they land on a post of mine. Lately, among a dozen other search phrases, someone asked a very odd question, but maybe it’s not so weird. Maybe I’m missing my own ship…again. And mind you, I’ve sailed a few rough seas and even the lake I live on in Florida.

It’s about Cardano (ADA).

The person who landed on my site, typed simply:

“cardano the next bitcoin”

…and that was it.

I thought, what? Replace bitcoin? Are you kidding me? A crypto that is still wet behind the ears, not fully tested in the crypto battle front and is split into at least three parts, a wallet maker, a marketer, and a coin/system coder?

And all the funny names associated with Cardano (ADA). A dead mathematician and the world’s first algorithm developer. Okay. That’s nice. Nostalgia.

The name of the new algorithm: Ouroboros. A tongue twister for us “ugly Americans.” The serpent eating its own tail. How nice.

And the name of the wallet?  Daedalus. Greek mythology. The skilled craftsman. Maybe a dead wallet?

This is all special, but the proof is in the dog, right? Will he eat it? And the answer is? Yes. Billions of dollars’ worth, in short order. That must be one hell of a shot in the arm. A vote of confidence. Trust. ADA is being consumed in hopes of gains and interest, in the Proof-of-Stake wallet for sure.

Cardano, as I understand it, is a system that is incorporating a new programming language. Like many crypto-projects, development is an ongoing process. With each roll-out, each new improvement, we often see a bump in value. A change in perception – as to what we think this system can accomplish. Then the lull, before the next bit of news. Perhaps a new exchange will list it. Great…then the bump.

I have watched Cardona climb from two cents. Wow. And few dumps. Incredible or telling? I’m pessimistic at present. I think – and I have been wrong – a dump is in the offing. And soon. Why?

Note: After I posted this,  ADA dropped almost 25% by January 6, 2018 — but so did a lot of other altcoins…

In my thinking, it becomes more difficult when your cryptocurrency is separated into parts, like Cardano. And when these parts are separated by borders, it’s even more difficult. Hence the idea of a Maritime Law system to anchor Cardano in the world of regulators, but not necessarily be owned by them. To say that this project is not ambitious, is an understatement.

Still, I was shocked, as I always am, when cryptos climb that first big wall. These days, with institutional investors about, banks going goofy over blockchains, governments seriously considering cryptocurrencies as fiat-replacements, and now “everyone” investing in this space – I am both happy and…worried.

When the dumps come now, they will be mythical in scope. As in, “remember when that altcoin dumped, and the government stepped in and shut down the…”

“…adding XRP…”

Coinsquare CEO Cole Diamond recently said something that made me wonder. Coinsquare is a well-known Canadian cryptocurrency trading platform, that by American standards, is light years ahead – as Diamond seems to imply. They are adding Ripple (XRP) next and there are more altcoins to come.

Diamond implied that they are now seeing a broader interest in the space. No longer are the younger investors about, but older ones – every kind of person and age.

That’s my take. They have arrived. And, they are still arriving.

This is good, but it could spell disaster. As in a Tulip disaster.

Which means what? It means, that there is still time to come aboard, but, as some have suggested, maybe not much time to magnify your investments. Unless you think in a different way.

And, I’m not saying that Coinbase, in the US, is slow on the uptake, given the draconian tax laws and regulations in the United States, not to mention their ongoing fight with the IRS, but they could end up in the doldrums, far from future trade winds, if they don’t act quickly to secure their place in the space.

“…Cardano (ADA), Iota (MIOTA) or Raiblocks (XRB).”

In any event, some refer to what is going on now as a “second tier” catch-up. In other words, as bitcoin, litecoin and ethereum appear to take a breath, there’s thin air up there, the next crew is making its move. Ripple, of course, being a first mover in this, but it is not really a new generation altcoin, like Cardano (ADA), Iota (MIOTA) or Raiblocks (XRB).

If you look, you will see that the old guard, such as Ethereum, are offering grants to help them scale – improve their products. Is this catch-up or forward thinking? A search for new blood? Isn’t it odd that Ethereum is considering a proof-of-stake concept, while Cardona works to implement same?

Seriously, I am enthusiastic about Cardona, but miss the idea behind bitcoin too. I feel that developers should be rewarded for their work, but we must remember how we got here. It was bitcoin. It was Satoshi Nakamoto. No matter how you bake it, split it up, rationalize it, the crucial core of it was bitcoin. And even bitcoin had its predecessors. But it was the proverbial “critical mass” and the saving grace. Almost nobody could control it. It was Pandora’s Money Box. And Pandora left only hope, if you remember your Greek Mythology – after she opened the “jar” of evils.

In the meantime, back here on earth, where Greek Gods are the names of sub sandwiches, let us man the lookouts, shall we? If we see a good target, even if it is moving, we need to take it out, bring it home, skin it, cook it and…eat it. Then think: “Next.” What other foods can we skin, before the big dogs eat?

Finally, as a side note, I have real heartburn with Peter Thiel’s idea that bitcoin, though nearly unmovable – considering the cost of transfers these days – is becoming the new replacement digital gold standard. A 20-million-dollar investment is peanuts for him, but a slight move to the downside wouldn’t hurt the Thiel profit margin, I guess. Is he coming late to the party? I hope so. My bets have been off bitcoin for months and I have profited

And I hope…like those who have contacted me…that you have also made a killing.

 

Sincerely,

 

Jack Shorebird

P.S. The above was advice. It meant: use your head and don’t let the nerds get you down.

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Hashgraph: Potential Ground Floor Opportunity?

This is just a notice.

If you have not heard about Hashgraph, you might want to peruse the videos and sites listed below.

Although, the jury is still out, this protocol seems to be the next big thing in internet and maybe even cryptocurrency.

Blindingly fast, already in use, proven tech, and on the cusp?

There might be an ICO coming.


Videos:

From Bitcoin To Hashgraph: The Crypto Revolution – Hidden Secrets Of Money Ep 8 – Mike Maloney

Hashgraph Youtube Channel


Websites:

Hashgraph Homepage

Whitepaper

Twitter

Facebook


 

Get Educated!

jgs

 

Bitcoin: The Immovable Object?

Bitcoin: The Immovable Object?

Here’s a thought, as I close out the day.

I’ve read and listened. Yes, it’s obvious that Bitcoin is becoming too expensive to use — to move — for the average investor.

For big investors, not such a big deal. Moving large amounts of digital fiats is also not cheap.

However, the vast majority are now trading to Litecoin (LTC) to move value. I know I do. Why pay a premium for slow service? But this does not convince me to buy Bitcoin Cash (BCH). This convinces me to look elsewhere.

It is rumored, as I and many have mentioned, that Ripple (XRP’s) could be slated to go on sale at Coinbase in the near future. And certainly, if this happened, it should boost prices.

Ripple XRP’s are also cheaper to move — to transfer. They would eat Bitcoin’s lunch in that department. Probably Litecoin and Ethereum (ETH) as well, with other benefits…except for one. You can’t, as of yet, hold XRP’s in your own wallet. They are slaved to the XRP servers.

Hey, does it really matter if XRP’s can earn you a tidy profit?

So, if Coinbase had XRP’s, they would allow you to buy them, right? I submit, in a sense, you will only “control” them. That is great for the supplier — for Ripple and Company — but not so great for the average citizen on other levels. No warm and fuzzy XRP’s to hold at night…in your “paper wallet?”

It will also be great for the regulators. You forget to pay any taxes and you will find out the hard way that you no longer own or control you favored altcoins…if you keep them on a regulated exchange.

Savvy? Why do you think bitcoins (altcoins) became so valuable? At least one good reason? Capital Controls.

Coinbase is on American soil. They must comply. So is Bittrex. So are others.

Bitcoin, in my opinion, is becoming immovable. Still very valuable, but figuratively heavier than gold, when you apply the fees.

What does this mean?

To me, it means bitcoins will sit. And as they sit, they will be found or at least become more vulnerable. More security will be required.

It also means that cryptocurrency exchanges will need to adopt newer cryptocurrencies in order to survive. And adapt to the changing regulatory environment in the U.S. and elsewhere, to carry on.

Maybe, as a result of these changes, if bitcoin remains the lumbering golden beast, we will be able to profit on the coming spikes in other cryptocurrencies. But in the long run, as these substitute altcoins attempt to bear the weight, won’t they also become overburdened?

Whether the privacy coins (Monero etc.) will win out, is a mystery to me, but I thought Vitalik Buterin’s (of Ethereum fame) hint about a Mesh based internet was curious. It could be a potential solution to the Net Neutrality issue and to ISP censorship in general. But a Mesh based internet would also lend itself to a more secure cryptocurrency network, even for the more public ones, designed like bitcoin.

At present, Mesh systems are in their infancy and any crypto running on them would need to be lean and mean…like Cardano (ADA)? Or Buterin’s new PoS idea that is pending for Ethereum? But bitcoin?

I’m waiting to buy my Mesh Device — that’s not app on my cell phone. But won’t they be illegal if Uncle Sam can’t spy on them?

Didn’t we see sci-fi shows about these devices decades ago? I know I did. A guy on the street paying a bill with his ‘device’ while holding it up to the other guy’s gizmo. I think they were mesh wallets!


jgs

 

 

Cardano (ADA) Drifting Lower

Cardano (ADA) Drifting Lower

Dear Cryptocurrency Enthusiasts,

It appears that Cardano (ADA) may be drifting lower.

This began shortly after 8:00 a.m. Universal Time and it has continued.

The high on Binance was .00003090 Bitcoin (BTC). That’s about 60 cents, American. And that was an enormous surge.

Less than five hours later there was a drop to approximately 41 cents.

The price range of ADA is about 46 cents, currently.

This kind of pull back is normal and should be expected. Even a crash to penny value is not out of the question — and that goes for any altcoin. But I think it doubtful.


There has been a great deal of speculation, to include Charlie Lee (of Litecoin) chiming in here, just as he previously rang some bells about IOTA (MIOTA).

From Charlie Lee’s Twitter:

I just noticed Cardano (ADA) is #6 on CoinMarketCap. How did it become a $10B coin when it’s only 3 months old and the only major exchanges trading it is Bittrex and Binance and without even any fiat trading pairs?

Either the market is crazy or Cardano will end world hunger.

Lately, Charlie’s opinions have been a bit curious. One wonders why he has chosen to highlight Cardano (ADA) now.

Litecoin is doing well. Currently, they trade at over $300 each. The altcoin appears to be growing in popularity, but investors are apparently looking for alternatives. This new crypto-environment might irritate others.

The fact that Litecoin has lived up to its idea of being the “silver” to bitcoin’s “gold” should placate some. The ratio is about right.

But enter Cardano (ADA). Slowly at first, then a sudden spike…

Charles Hoskinson replied with a poem:

Coarse the rush-mat roof

Sheltering the harvest-hut

Of the autumn rice-field;

And my sleeves are growing wet

With the moisture dripping through.

If you read through the replies to Charlie Lee, Charles Hoskinson explained what he meant by the poem, and it is interesting. He essentially means that he (and the team) will work in the “rain” or the drought. It does not matter. Good or bad.

It was a good response and Charlie Lee seemed satisfied with it.

It is also important to note the Charlie Lee did not appear to be negative about Cardano, but conciliatory. He stated on Twitter that he was sure it was great product and that he was only pointing out the recent valuations.

This seems to imply that Charlie Lee does not know much about Cardano (ADA), but anyone in this sphere should question when newer coins take off in this manner. It raises too many questions.

Certainly, Cardano (ADA) is young and the fact that she has risen so quickly, in the face of criticism and accusations, must concern the old guard. But let us not throw them completely under the bus. After all, they created and nurtured this space. They also have a right to call them as they see them — as anyone does.

But Charlie Lee “carries a big stick.” When he talks, unless he says something completely nuts, we ought to lend him an ear.

I wish ADA all the luck and hope she surpasses Litecoin (LTC) and challenges Ethereum (ETH) in short order. If she does, then the Litecoins and perhaps the bitcoins of the world, will need to step aside. For now, however, the game is afoot.

And we have to remember, although ADA is young, she was created by people who have learned in the ditches of crypto.

And an acorn needs “rain.”


A final note…the above poem is curious. It has layered meanings, that I am still reviewing. Why is this important? What one chooses to say or cite, can define one. I will explain more in another post, if Cardano (ADA) continues to impress.


jgs

 

 

 

 

 

 

 

Ripple (XRP) and Bitcoin (BTC) Speculation

Ripple (XRP) and Bitcoin (BTC) Speculation

Dear Cryptocurrency Investors,

Just a few more pieces of news and speculation. It’s dated information, but curious, in light of the the recent Cardano (ADA) run up.

Don’t take it too seriously.


First, the speculation:

Bitcoin might to pull back then rebound to about the $60,000 mark. Or crash to $1000. It’s all over the internet.

Here’s one source.


Secondly, Ripples could hit $9.00 each.

I can’t find the source on this one, but more conservative predictions indicate a $2.00 price range. (Source.)


Third, if you want a good (but a bit racy) bit of business education about cryptocurrency and some of the problems facing developers today, try this video.

It’s long, but speaks to liquidity, custody and regulatory issues.

It might also give you some insights into Ripple’s (XRP) direction.

Some apparently feel that XRP’s will be offered by Coinbase in January 2018. If so, this is big news.


jgs

Will Bitcoin become Over-regulated?

Will Bitcoin become Over-regulated?

Dear Cryptocurrency Investors…and those concerned about the future of regulation,

The bad bitcoin news continues and most of us do not want to hear it, but we need to.

We need to think about what they will do next. Before the dominoes begin to fall. Currently, cryptocurrency appears to be reacting.

It’s time to be proactive or at least think ahead.

What’s the bad thing about ICO’s being regulated?

The next bend in the road.

It’s the first good way in. A way for governments to begin their crawl into the cryptosphere using the alleged reason that they want to protect you – to save you money. Because, you know – if they leave it up to you – you’ll screw it up and some fools will get ripped off.

A Broad Stroke…

So, instead of going after the thieves, the regulators use a broad brush. They paint everyone red. It’s then your job, as a cryptocurrency developer, to prove your innocence. You are automatically guilty from the start. Hey, it’s the way of the money-changers.

That’s how regulations work. Not laws, which help to convict the bad guys, but regulations to tell the good guys how they will run their businesses. From how many toilets a grocery store must have to the slope of the wheel chair ramps at Wally World.

“…regulations…”

Can you imagine the crypto-regulations? How many coins a crypto might have. How much they may charge. Where they can sell. How they will register and identify all users. How the company must be formed. What records it must keep.

I could go on.

The point? Innovation would suffer. Coins, good and bad, would die. The big boys on the block would file all the necessary paper work and press on, only to become embroiled in more legal issues. Bitcoin would need to register. The one saving grace – that bitcoin is not a company or a corporation – would be tossed in the crapper.

You’d have the same choice as before. Which company should I invest in? Which controlled, fiat dollar financed, regulatory burdened, bankster run, non-private new-crypto should I choose?

How about none of the above, if crypto gets ramrodded?

Now, you might say that ICO’s, which in the early days of purist-crypto (that never really existed), are no different than premining. And I’d have to agree. But if you accept an ICO, then no harm no foul and…let the best seed money bear fruit. Not much different than initial stock offerings that go belly up or soar.

No longer. The regulators, in their quest to ensure the permanence of centralized government monetary systems have no choice but to secure the current systems via tight controls of the supply of money; and that means anything that is even remotely connected to money. And that means…you and me.

Cryptocurrency is more closely related to stocks than money, some will argue, but make no mistake, the ICO warning is a shot over the bow, again.

So, what is next, logically?

Ignoring for the moment, steps being taken by various governments to fold crypto-regulation into the murky half-laws dealing with KYC and money laundering issues, how will the government gangs launch their next foray?

Here’s an idea.

When the laws pass that will require all Americans, Europeans, Asians etc., to report their crypto-holdings, that will simply be the opening bell. The “hey, we’ve just legitimized your bubble money and now you must let us ruin it” moment.

Next, after regulating who may or may not create a cryptocurrency, via an ICO, they (our blessed regulators who invent and create nothing) will, in the most obvious of blunders, conclude that anyone seeking to initiate a blockchain based crypto or similar, must first seek approval from a bureaucrat, who is necessarily, holding keys to the jail cells. It will be the Pre-ICO rules. Comply or bye-bye. Good guys must be throttled with numerous and confusing righteous regulations, above and beyond the laws, to be sure.

Now that is not all.

How else, given their penchant for protecting their conscriptual citizenry, will our illustrious innovators of graft continue to serve our interests?

“…retroactive…”

I say they will go full retroactive. After all, it’s the best way to collect taxes. Make them guilty, yesterday.

Henceforth, all cryptos having existed prior to now, and which are not currently in compliance with the laws heretofore dictated, must comply immediately. All persons having control or interest in the core development of any and all cryptocurrencies, must come forward to [fill in the blank] and file all appropriate applications, submit all required fees, undergo a background check, and more or less, be told exactly how said currencies will be sold, dispensed or used.

The above, is of course nonsense or is it?

Keep an eye out.

Just wait for it. Maybe in a year?

I’d be nervous if I was a “dev.”

 

Sincerely,

 

Jack Shorebird

Bitcoin: Deletion by Executive Order?

Bitcoin: Deletion by Executive Order?

Dear Cryptocurrency Investors,

Let’s play a “worst case scenario” game. Why? Because it’s always good to play the “what if” game. It helps you prepare.

You see a lot of hints out there and worries. But I wanted a bit more. I wanted you to taste it, if even fictionally. Why?

Because this has happened before. I know people who lived through it. People who had to turn in their gold to the government or face criminal prosecution.

But a little background first.

Cryptocurrency is now being accused of outshining gold. It’s little wonder that in the United States bitcoin is effectively, 10 times the price of gold.

Think on that for a moment. Software – a ledger service – is now more valuable than a physical commodity.

What’s more, cryptocurrency cannot be as easily regulated as gold or silver. It’s a governmental conundrum.

In 1933, President Franklin D. Roosevelt (FDR) signed Executive Order 6102. It essentially confiscated gold from law abiding citizens because of an emergency.

The emergency? It’s debatable, but many point to one thing: to bailout the Federal Reserve. At the time, many foreign countries were cashing in dollars for American gold and well, the government was running low.

Gold prices back then were set by government at $20.67 an ounce. About a year later, the official rate of gold was raised to $35 per ounce. What that meant was that the US Dollar lost approximately 40% of its value in a year. Inflation was gifted by Uncle Sam. It may have also slowed the gold drain, since by then, foreigners had to use more fiat currency to buy the same amount of gold.

This is all history. How US citizens were ripped-off by their government. No wonder, that even today, people are nervous about their gold. But maybe they shouldn’t worry so much now.

Gold has been out-shined. The days of price manipulation by governments, is over.

Bitcoin is now the up and coming king of currencies. Perhaps it is better to say that cryptocurrency is king. Why?

Because we do not know if some new altcoin will win the day. Ethereum, IOTA, Litecoin or Monero – or some innovative altcoin may soon become the new digital gold. But there is no doubt that the digital gold rush is on.

Governments are paying much closer attention.

They see that their fiat currency is under threat by software that not only substitutes for fiat dollars, but does all sorts of other neat things too. They avoid capital controls, zip around the world in seconds, skirt banks and taxes – and hide in plain sight. Best of all, they can’t be confiscated, without permission – or so we hope. Governments have a difficult time tracking them.

The idea that blockchains cannot be cracked by quantum computers might not wash. If the government agencies utilize quantum computers to confiscate a single cryptocurrency transaction, this would no doubt have a chilling effect upon the entire cryptosphere.

Would people then stop transacting in crypto, knowing that any transaction could be redirected to a government wallet? Would that not halt crypto in its tracks? Make it worthless?

Could our governments conduct a 51% attack? A concerted effort to destroy specific crypto targets? These cryptocurrency websites often suffer such attacks and other issues.

North Korea attacks bitcoin regularly, via the exchanges. It appears that they are trying to steal cryptocurrency, however, and not destroy the targets themselves. They are a fiscally challenged despotic regime, after all.

Denial-of-service attacks recently hit the cryptocurrency exchanges Bitfinex and Bittrex.

Bitfinex shies away from American customers due to the onerous reporting regulations and the costs associated with them.

Bittrex is suspiciously locking Legacy accounts and asking for upgraded identity information from its customers. They telegraphed (reported) this process before they proceeded, but reduced customer withdrawal amounts. Shortly thereafter the total lockdown began. They have sent out emails to apologize.

One would expect a big outflow of funds when and if Bittrex releases the locks. Unless Bittrex customers have been Goxxed.

Crypto-jacking is on the rise. Are you mining crypto for others as you surf the web? You would hope not.

ICO’s may soon lose their luster. Initial Coin Offerings can be used to easily raise money, but will the developers make good on their promises? Recent US investigations might be one nail in that coffin.

And to top it all off, it appears that bitcoin has some serious problems ahead. Routing attacks are a concern. Apparently, most of bitcoin’s transactions flow through just three ISP’s. If true, how difficult would it be to slow the nodes? To make everyone lose the faith?

“…the biggest threat…”

In all this mess, many of us are ignoring the biggest threat of all, however: The Great Confiscators. The governments.

If FDR could sign an Executive Order to take all the gold from Americans, how difficult would it be for a sitting president to do the same – to steal the crypto?

If Congress, in the US, cannot agree on a bill to make Americans report their crypto-holdings, would it not be easier to whip out the presidential pen and in a matter of hours, criminalize bitcoin possession?

And that’s my thrust here. I wanted to imagine just what such an order would look like. So I looked up FDR’s great theft and perused a couple of The Donald’s recent Executive Orders and came up with this:


Presidential Executive Order Combating Terrorism, Money Laundering, Illicit Drugs and Cryptocurrency Pyramid Schemes

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the National Emergencies Act (50 U.S.C. 1601 et seq.), and in furtherance of the objectives of Proclamation 7463 of September 14, 2001 (Declaration of National Emergency by Reason of Certain Terrorist Attacks), which declared a national emergency by reason of the terrorist attacks of September 11, 2001, in New York and Pennsylvania and against the Pentagon, and the continuing and immediate threat of further attacks on the United States, and in order to provide the Secretary of Defense additional authority to manage personnel requirements in a manner consistent with the authorization provided in Executive Order 13223 of September 14, 2001 (Ordering the Ready Reserve of the Armed Forces to Active Duty and Delegating Certain Authorities to the Secretary of Defense and the Secretary of Transportation), and in order to clarify SEC. 13. Prepaid access devices, digital currencies, or other similar instruments, (a) In general. —Section 5312(a) of title 31, United States Code, it is hereby ordered as follows:

Section 1. For the purposes of this regulation, the term “hoarding” means the withdrawal and withholding cryptocurrency, cryptocurrency contracts, prepaid access devices, and digital currency, from the recognized and customary channels of trade, be they held at a digital exchanger or tumbler of digital currency or anywhere and in any form not yet known to exist. The term “person” means any individual, partnership, association or corporation.

Section 2. All persons are hereby required to deliver or transfer on or before January 1, 2018, to a Federal Reserve Bank or a branch or agency thereof or to any member bank of the Federal Reserve System all cryptocurrency holdings, cryptocurrency passwords and password seed phrases, to include hardware, software, and paper wallets, now owned or controlled by them or coming into their ownership on or before December 6, 2017, except the following:

(a) Such amount of cryptocurrency as may be required for pre-approved legitimate and customary use within and under the direct control of the regulated banking and financial industry or those government regulated companies that serve said industries, including any cryptocurrency mined/minted therein.

(b) Cryptocurrency and cryptocurrency certificates in an amount not exceeding in the aggregate of .00000001 BTC, belonging to any one person; and cryptocurrency having a recognized special value to bankers as rare and unusual altcoins.

(c) Cryptocurrency and mining, minting, or other methods of network security, earmarked or held in trust for a recognized foreign Government or foreign central bank or the Bank for International Settlements.

(d) Cryptocurrency and any derivatives thereof, licensed for other proper transactions (not involving hoarding) including cryptocurrency and said derivatives, imported for reexport or held pending action on applications for export licenses.

Section 3. Until otherwise ordered, any person becoming the owner or controller of any cryptocurrency, cryptocurrency passwords or password seed phrases, to include hardware, software, and paper wallets after December 6, 2017, shall, within three days after receipt thereof, deliver the same in the manner prescribed in Section 2; unless such cryptocurrencies are held for any of the purposes specified in paragraphs (a), (b), or (c) of Section 2; or unless such cryptocurrencies are held for purposes specified in paragraph (d) of Section 2 and the person holding it is, with respect to such cryptocurrency, a licensee or applicant for license pending action thereon.

Section 4. Upon receipt of cryptocurrency delivered to it in accordance with Sections 2 or 3, the Federal Reserve Bank or member bank will note therefor an equivalent amount of any other form of legal tender at the official rate of one US cent per one BTC or equivalent in any other altcoin.

Section 5. Member banks shall deliver all cryptocurrency owned or received by them (other than as exempted under the provisions of Section 2) to the Federal Reserve Banks of their respective districts and receive credit or payment therefor, at the going market rate, prior to the issuance of this order.

Section 6. The Secretary of the Treasury, out of the sum made available to the President, will in all proper cases pay the reasonable costs of transportation or transfer of cryptocurrency delivered to a member bank or Federal Reserve Bank in accordance with Section 2, 3, or 5 hereof, including the cost of insurance, protection, and such other incidental costs as may be necessary, upon production of satisfactory evidence of such costs. Voucher forms for this purpose may be procured from Federal Reserve Banks.

Section 7. In cases where the delivery of cryptocurrency by the owners thereof within the time set forth above will involve extraordinary hardship or difficulty, the Secretary of the Treasury may, in his discretion, extend the time within which such delivery must be made. Applications for such extensions must be made in writing under oath, addressed to the Secretary of the Treasury and filed with a Federal Reserve Bank. Each application must state the date to which the extension is desired, the amount and location of the cryptocurrency in respect of which such application is made and the facts showing extension to be necessary to avoid extraordinary hardship or difficulty.

Section 8. The Secretary of the Treasury is hereby authorized and empowered to issue such further regulations as he may deem necessary to carry out the purposes of this order and to issue licenses thereunder, through such officers or agencies as he may designate, including licenses permitting the Federal Reserve Banks and member banks of the Federal Reserve System, in return for an equivalent amount of other coin, currency or credit, to deliver, earmark or hold in trust cryptocurrency to or for persons showing the need for the same for any of the purposes specified in paragraphs (a), (c) and (d) of Section 2 of these regulations.

Section 9. Upon collection of the cryptocurrencies in question, the Secretary of the Treasury is hereby ordered to delete, by any feasible method, as verified by Federal Reserve Banks and companies on retainer for said purposes, the cryptocurrencies in their possession by not later that February 1, 2018.

Section 10. Whoever willfully violates any provision of this Executive Order or of these regulations or of any rule, regulation or license issued thereunder may be fined not more than $1,000,000, or, if a natural person, may be imprisoned for not more than twenty-five years, or both; and any officer, director, or agent of any corporation who knowingly participates in any such violation may be punished by a like fine, imprisonment, or both.

This order and these regulations may be modified or revoked at any time.

THE PRESIDENT

THE WHITE HOUSE?

December 6, 2017…


Do not think for a moment that such an order is impossible today.

Be ready.

Note: Please feel free to copy my fictional executive order and distribute. Wake up some crypto-heads.

 

Sincerely,

 

Jack Shorebird

 

P.S. Do you really think that all Americans – the true patriots – gave up their gold in 1933?

 

Bitcoin: The Gathering Storm

Bitcoin: The Gathering Storm

Dear Crypto Fans,

Excuse my absence. I’ve been reading all the news lately and it has made me slightly wary of things to come.

The crypto innovators are being hunted…again.

Prepare for more American regulation…again.

Followed by the UK.

And probably Australia…again.

Wendy McElroy called it the Pitbull assault, in the US. She’s being nice. She keeps tabs on this crap and I suggest keeping an eye on Wendy.

Uncle Sam is taking square aim at your stash of crypto now. Bitcoin et al.

Maybe Uncle Sam is tired of his missing tax loot. More than likely, he’s about ready to print a load of paper money to pay down the debt through inflation. It would be smarter just to e-print some crypto, but allegedly the US gov’t isn’t biting.

If there is one thing that could put a serious dent in cryptocurrency, internationally, this is it: S.1241. Or, perhaps more accurately, push crypto underground – in the US, UK and Australia. Okay, let’s add South Africa.

Did I miss anyone? Canada? Please.

Crypto Black-markets may be about to explode in the old free-world, as a result. But how long can they last?

Who controls ICANN?

Reactions from this news might push people into the privacy coins. Monero (XMR) is up of late, but some of that may be from news that you can now purchase discounted music with XMR’s. In other words, it’s marketing. No, Jethro, it’s privacy.

Privacy, privacy, privacy.

Let me harp on that. Get ready. It is possible that the Winklevoss Twins backed the wrong horse. It’s okay, but if they are smart, you should see a rising Monero now. Slowly at first. Then faster.

It is highly probable that governments will continue to attack cryptocurrency as a threat, as a bubble, as an unregulated investment vehicle, with no intrinsic value. They will hold out their own valueless fiat currencies as the one true god. Bitcoin will be beaten.

Don’t pray too hard. Diversify. If not Monero, any other privacy coin you think is good gumballs, buy them. You might live to regret it, if you don’t. I seriously doubt you will regret it, if you do.

S.1241 states, if you are a US subject (I am) – you must comply. They will cancel my passport, if I do not. This is my prison camp. How big is yours?

The United States must modernize. I’m serious, that’s the buzzword: modernize. But think of this word instead: confiscate. I mean, at least be honest, pud-winkles. Modernize what? The confiscatory tax laws?

And don’t think there is an out.

S.1241 covers all the bases. Ownership. Control. Cryptocurrency exchanges. Paper wallets. Brain Wallets. Hardware wallets. My dead grandma’s coffin stash. Hey, they even made it all-encompassing: funds stored in digital format are subject to reporting requirements, if the bill passes.

And you think it won’t pass? Do you remember why Jesus tipped over the money-changer’s tables?

By my estimation, there are over 30 million Americans holding (HODLing) crypto. I hope there are more. Eleven more disciples at least. No Judas.

S.1241 is attempting to amend a section of  Section 53412(a) of title 31, United States Code. And it appears as if our illustrious US law makers will do it on the sly. Middle of the night stuff. And soon.

Satoshi Nakamoto warned us. Bitcoin was only a temporary solution.

So, what is a more enduring solution?

Monero? Grin? Aeon? Electroneum? Bytecoin?

Any port in a storm.

And for the record, IOTA. I have a bad feeling about it. I hope I’m wrong.

 

Sincerely,

 

Jack Shorebird


The above is all opinion. If you think it’s off the mark, that’s okay.

1 in 10 Americans Own Bitcoin?

1 in 10 Americans Own Bitcoin?

Dear Cryptocurrency Investors:

You are a big audience. That means we might get bigger?

We’ll start with a little speculation, John McAfee style.

If Bitcoins are $1,000,000 each by the year 2020, here is how the chart might look, if charts had straight lines.


MILLION - Copy


(Come back and look at this in a year.)

Curse McAfee if he’s wrong.

That will mean the total capitalization of bitcoin would be approaching 20 Trillion dollars – if bitcoin can go this high.

It would be a 100-fold increase if it did.

Talk about irrational exuberance. I think people would almost consider a McAfee diet if bitcoin does value at a million bucks per.

Currently, the US debt is about as much as what bitcoin would be worth, as a whole, in this year 2020 scenario: 20 trillion clams.

Let’s back track though. Get our bearings.

Bitcoins were about $400 each, two years ago. I got nervous then and sold some — after reading some bubbly stuff. Dumb mistake.

They grew 25-fold by 2017 – to more than $10,000 each. That has apparently surprised a lot of people and fresh bubble calls are in vogue again.

I mean seriously, did you expect this?

How about awareness?

Estimates put awareness of bitcoin (in the US) at about 80%. (Maybe.)

In 2013, awareness was half that number – in the US. Around 40%.

But awareness and ownership are different animals.

India is far more aware of cryptocurrency today, according to some reports.

Of Americans who are aware of bitcoin (cryptocurrencies) only about 14% actually own any.

That’s about 35 million Americans who own bitcoins(No wonder the IRS is complaining they can’t steal enough money!)

Translated? About 1 in 10 Americans owns crypto.

Now, using Joe Kennedy’s rationalization – listen to the shoeshine boy – for getting out of the stock market before it tanks, just prior to the Great Depression, are we near a bubble – now? But remember, Joe Kennedy shorted the markets back then. And he made a bundle. He did not get out of the markets.

So, the allegation today, that everyone is talking about bitcoin and this will be its downfall, seems to fall flat.

I’ve asked my financial planner (US-based) if anyone has asked him about bitcoin – really wanted to talk about it – and he sees the high dollar investor types all the time; and he said that virtually none of his clients talks about it. They may mention it in passing, but they are not serious about it. His investors are after real investments, he advised. Safer and better. Bitcoin is a confusing mess at tax time – in the US.

And if that is the “tell” – everyone is talking about it – then I’d have to ask you where you are. Because in my neck of the woods (Florida), few make mention of it. No clerks or cell phone sales guys. No neighbors or bus drivers.  I often ask them, just to have fun. Most just stare at me.

And bitcoin signs? Billboards? Darned few around here. Maybe some local radio announcer gives his take. Or maybe I should get out more.

Additionally, all the classic bubble burst models I’ve checked show 10 to 20% drops in value and then crashes – not to the floor, but maybe to the 20% – 40% level.

Bitcoin has been swinging like a drunken sailor since day one. And then recovering. It does not appear to listen to the bubblers. Or not yet anyway.

Do I think bitcoin is magic? Don’t be silly. But I do think we need some new bubble models on this one. All the old earmarks seem wanting.

And maybe the gurus of the bubble will need to rewrite the business books after a few more years of growth. This time, using a model that accepts that crypto is a money replacement and not a stock.

Oh, the shock.

But I could be wrong. Being a pessimist at heart – skeptical – I’ve been waiting patiently for the Great Bitcoin Crash, so I can tell all those nasty Bitcoin Rich guys that I told them so.

In the meantime, just on the outside chance BTC’s go to a million each, I don’t think owning a slice is a bad thing.

Sincerely,

 

Jack Shorebird

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