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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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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

 

 

 

 

 

 

 

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?

 

Feathercoin: Chicken or Golden Egg?

Feathercoin: Chicken or Golden Egg?

Dear Crypto-Enthusiasts:

I came across it quite by accident…again.

No, not a particular crypto, but something that led me there, quite by accident.

Some people say the strangest things…

And you don’t find those things in classrooms or in books as often as you’d like. Magazines are filtered niceties. News alerts, groomed and stylish. Substance takes the side exit, in the politically-edited world.

You find these snippets scattered on this thing called the internet. In videos and blogs, where guys and gals argue on some other guy’s YouTube Channel. On Reddit, where kids bash adults and jokesters have their way.

Despite it all and perhaps because of it all, the good cream rises, then dissolves. You can always tell when someone is pushing coin and how others (myself included) make mention of certain cryptos that have come into focus of late. I don’t like to push.

Here’s an example of fantasy shoving…

…mycelial network?

Bitcoin and crypto, in general, are a mycelial network(s). Nature’s internet, long ago fastened to the reality of need. Huh?

Little blurbs of genuine hype like this are common.

Mycelial Networks. Living things compared to crypto-networks. From Wikipedia – “the vegetative part of a fungus or fungus-like bacterial colony, consisting of a mass of branching, thread-like hyphae.”

I get the picture. It’s not a bad analogy, if a weak one.

Although, crypto is not a single entity – even bitcoin’s ledgers run on various “machines” – the neural-like network is ubiquitous. It is homogeneous, but not self-sustaining. Bitcoin requires you and me to “make” it function. It’s the opposite of a fungal root system, that grows to absorb its nutrients.

It’s as good an explanation as any, however. Bitcoin – crypto – is usually a network. An energy-network between computers. But it is also dependent, like the lowly mycelium, upon its environment. It must take from its surroundings to live.

We are networks too. Our bodies and brains. We eat and walk and procreate. We use our environment.

But bitcoin is not alive.

Chemical or electrical, a network is a network. And I’m not on about the fabulous nature and redundancies of networks. They work, unless all hell breaks loose. The bigger, the stronger.

But living things – networks — have their weaknesses. One good virus and goodbye network. Redundancies or not.

Electrical networks – digital networks – are far more resilient. Usually.

Thus far, few crypto-networks have failed, aside from forks and 51% attacks. Once bitten, however, the end users often suffer the trust-bug. No longer will they provide energy to that network.


Peercoin

The network may live for years in a subdued state, like Peercoin, but left without new code and new blood, networks die off. At least you think they would. Some mature and stabilize. They become good for short term crypto-storage. Then entropy rages.

I never thought Peercoin would last as long as it has. They had problems early on. I lost money in one of their unplanned forks. Then the main devs pressed on. Created other complimentary coins. None of the relation has had significant success, but I’m relatively sure the devs have reaped the rewards.

Is that not the play? If you do not at first succeed and all that. Or is it something more sinister? Are we simply watching money vacuums in action?

“Come one, come all – today we have a special! Today, we announce (almost – we need some start-up money, hence the ICO) a 4th Gen crypto! It’ll send your cryptos in under five seconds, confirm in under a minute and you can mine it with solar energy! How’s that for green?”

Then there are the bedrock coins. Never quite here, but never quite dead. Not zombie coins, but pregnant ones?


Feathercoin

Some few older cryptocurrencies like Feathercoin, one of the longer standing coins, seem resilient. Not overly obtrusive, not all that exciting, but under the covers. They have made significant changes since I last looked.

Interesting? Maybe or maybe not.

Looking back, I wonder why, other than its plain vanilla feel, Feathercoin has yet to realize the pumps we have seen with the other cryptos. It has never reclaimed its earlier records, choosing instead to meander in the lows, until 2017.

After two years of relative slumber, like many cryptos, Feathercoin seems to be waking. Or is it that the people are awakening?

There are also Google Trends showing recent Feathercoin interest spikes. In the crypto scheme of things; however, they are not seemingly relevant.

Why do I mention cryptos, like Feathercoin? Because, after reading The Two Bit Idiot’s latest piece I’m left wondering if the general public will get a very bad “bitcoin” taste in their mouths. So much bickering.

Two Bit is on about Bitcoin Cash (BCH or whatever). And I’ve always respected his views. He gets into so many angles, though – and that helps one respect the research – it leaves me a bit sick. Holding or HODL? BTC or BCH?

To hell with it all, I sometimes think. Let me hope for the best with Lending Club.

And yes, we’ve all seen BTC rise and rise. We’ve all noted when big boy tanks, the girls (and guys) scream and nearly all of the other coins sprint for the doors. They cash out or Tether up. But that plays seems less of a bother these days.

These days, some few cryptos hold their candle wax, as BTC burns. Is this the handwriting? A psychological shift?

In any event, unless you think that one of the bitcoin brothers will hitch its star to Jihan Wu, who if memory serves, advised that people will follow the pack. I submit that packs, like pure democracies or autocratic empires, eventually crumble.

People are fickle, Mr. Wu. Trust is difficult to maintain when one has large businesses within China. A country not known for treating its subjects fairly.

Aside from all the battles and concerns about bitcoin, bitcoin cash, bitcoin gold and so on – there is the other angle to look at: profit. People, in this fintech space are not after trade, as much as profit. Profit seems to be the dirty little word, however. But let’s admit it. Don’t you want to profit on your investment in crypto?

Using that yardstick, do you hope one of the bitcoins (not cryptocurrency in general) will double, triple or quadruple in value? Sure, you do.

On the other hand, do you scan the other cryptos looking for more leverage? Seeking that short and explosive coin to jump start your investment? Maybe you won’t hold it, just use it, right? Then park your profits in BTC or maybe LTC or maybe somewhere else…

And it’s the somewhere else that will begin to chip away at the mountain that is bitcoin. It’s been happening for the last few years anyway.

And how do we decide what will be the most profitable investment in crypto? I find no experts. Some of the chart reader types seem to get close, on occasion. But some have insinuated that “over heated” crypto-markets are bubbly.


Electroneum

And the hunt for adoption is ever the noble journey. Electroneum seeks this high ground and maybe, in time, investors will reap the rewards. Certainly, utility must charge the profit meter. How can it not?

Compare utility to bitcoin. Is it not speculative in nature? Does one not want to accumulate, rather than spend? And is not the spending of bitcoin becoming prohibitively expensive?

Sure, there were gold hoarders in the past, but the gold’s utility as actual money maintained its power to purchase. When gold was legal tender, one was not charged for the privilege of using it, but storing it was often fee based.

My point is, things like legal tender gold and silver coins had a utility value multiplier, when used as money, as well as stored for savings. Since bitcoin and crypto are unstable, the risk reward for any long-term investment is dubious at best.


Attributes:

Here are a few of the attributes recommended by the gurus of ‘coin and ones I’ve come up with over the years. By no means is this the all-inclusive list. Plenty of cryptos have soared and are doing quite well using different methodologies.

  • High-speed transactions
  • Ability to secure personal data (privacy)
  • Limited virtual supply
  • Trusted by its users (maybe not an ICO)
  • May or may not be centralized
  • Bottom-up focus
  • Longevity
  • Customer Service/Communication
  • Core or primary services located in freer countries
  • Dev/founder philosophy

And don’t get all hung up in longevity. Just because a coin is old, does not mean it’s the same. Often, past forks, like what occurred with Feathercoin, offer new and better code, but also end up with new headaches. If the team remains, that’s a big tell.


Final Notes:

Moving back to Electroneum (one coin I’m watching lately) – it uses the CryptoNote codebase. A well-known, but sometimes problematic system which Monero has improved. In other words, the code can be well-tested (trusted) long before someone picks it up and takes it down a new path.

Finally, you may have come across the RuffCT concerns that could slow Monero down. Better at privacy, but less efficient, could spell disaster, unless coders find a better solution. How Electroneum will feel about such a modification, if they update to it, could put them in the same boat.

Meanwhile, I wonder if Feathercoin will lay some nice little eggs after all these years…

 

Sincerely,

 

Jack Shorebird


The above is not investment advice. Seek appropriate gurus for that.

 

Cryptocurrency: “…and Bitcoin Must Burn!”

Cryptocurrency: “…and Bitcoin Must Burn!”

Dear Crypto-fans,

The crypto-fake-fintech-news continues, but the tide is turning in some few lands. Slovenia maybe. Singapore, possibly. Nigeria? Yes. But I won’t be emigrating.

Google trends are showing an upswing of late.

But the battle against cryptocurrency is also gaining momentum. The reaction is fomenting. Like Cato the Elder’s call for Carthage to burn, so too are the princes of the day signaling their intent, through their mouthpieces on retainer, that non-princely crypto, must also be destroyed.

The most recent pretext to dump bitcoin and cryptocurrency, besides bubble fears, is that fiat currency is “backed” by the government or the Central Bank. That such a thing as cryptocurrency, which does not enjoy the toxic fruits of the government fiat monopoly, is intolerable and hopeless.

But this assertion is ominous, not glorious. Whether you believe Clif High, that Bitcoin will far outpace the value of gold or you want to take to the shadows with your secret Bytecoin, the princes are on the march. They care not if you chose Cardano (ADA), but might let up, if you wade into Ripple (XRP).

And we cannot reach into our television sets, our computer monitors, our tablets or cell phones, and shake these intellectual Lilliputians by the shoulders and yell, “Hey, Brainiacs, fiat money is also NOT backed – except by a gun.”

“How dare you think that, you finite fleshpots.”

That’s how they respond, in my translation. Shake their ponytails, peer side-long down red veined noses, lick their finely wine-soaked lips, point to the proper ends of their overcooked eggs, with bejeweled digits, and leer at us subjugated subjects – with the aplomb of the imagined royal birthright.

Two such peers of servitude deserve mention.

“Alan Greenspan…Jamie Dimon…”

Alan Greenspan? A former gold bug, now completely in tune with the Fed or is that the vampiric feeding of inflated monetary dogma?

Jamie Dimon? A bankster in the Morgan mold or is he a dollar-defender, through hell and devalue?

Here are a few more bitcoin bashers to peruse.

Deep thinkers of the bygone epoch, where it is said that monetary conscription is better than gold-backs. Where the song of sound money, as sublime and powerful as it is, cannot meet the rejoinder – the princely power of the purse, under guard.

What do these bashers of bitcoin really mean when they say that cryptocurrency is not “backed” by Johnny Law? They mean, dear readers, that the prince is not in charge of the peoples’ currency, i.e., cryptocurrency.

And that is the crux of it. THE PRINCE HAS NO CONTROL. Paupers must mind their prince.

The prince’s fiat money is “backed” by his soldiers. You must use it – or else.

Think on that, each time you pull that fiat from your wallet with that picture of the current or past princes. This currency is “backed” by the point of a gun, the threat of jail if you refuse to use it, or large fines if you dare to abuse it. It is called forced compliance.

The Federal Reserve Note, is your contract with the prince. Do no fail to abide by the terms.

Has not humankind outgrown such princely designs?

The religion of money…

Most currency, that plastic card, paper or digital noise stored at your bank or under that rock in your yard, is worthless-worth. It is backed by nothing and the power to “make it work.” A promise to pay zero and from that zero, substance. The religion of money, if you will. To make nothing buy something. Just believe, sayeth the Prince of Fiat.

Every school child should know this. Government fiat is “myth money.” Fantasy cash, you are compelled to use.

The soldier “backs” your princely fiat these days. Except, to him, you are the enemy. Harsh words, but relevant when comparisons must be made with cryptocurrency.

Fiat crypto, by comparison, is an all-volunteer army. In this scenario of sin, the prince of fiat is dead.

And about the noble metals. There are no gold bars at the bank – in most cases. Even the Swiss have denuded their banks of metal. But the Swiss people, being a lot more intelligent than their host of princes, have stored gold in private vaults – not banks. Unfortunately, the princes are aware of the locations of such vaults.

But who owns that gold? You think American and Japanese billionaires don’t have a dog in that fight? Sure, they do. Will a Swiss Army man care to back your Swiss stored gold, if his prince reclaims the bars, for the good of Switzerland?

And private vaults abound these days. Do you wonder why? And are these vaults safe from the princes’ soldiers?

…myth money…

Cryptocurrency is also a myth money, a fiat currency, but it is different too. The prince does not own the cryptocurrency fiat money machine. The people own crypto. It is a detached system of fiat currency that circumvents capital controls, i.e., the Prince’s Rules of Trade. And there are dozens of competing blockchain alternatives, not simply one princely fiat system.

The prince is fuming about this. How dare his subjects create their own fiat currency. Don’t they know that fiat money is backed by nothing – not even the princes’ soldiers?

You might wonder how a cryptocurrency system can invade and dislodge, peaceably, the Prince’s Bank and essentially rob him of his ability to conduct business. You might also wonder what the prince is going to do when his fiat currency begins to devalue so rapidly that he can no longer pay his castle employees the proper level of wages.

He will need to pay his soldiers some how and maintain his dominance.

Will the prince seek to control all the cryptocurrencies on earth? No, he does not have that power.

Could our Prince enlist the help of other princes abroad, hold a summit in a foreign land and gather the forces of many other princes and kings, to block this crypto-virus from spreading?

Maybe. He and his soldiers, who he pays in Bright Prince Fiats, must team up with other lands to thwart this growing threat, before it’s too late.

…a gold standard…

In the meantime, some gold-bug few of the Prince’s own citizens, wealthy masters in their own right, the ones who have decried his use of fiats for years, call for a gold standard once again – and for the abolition of crypto, henceforth.

The prince, seeing a way out of the crypto-crisis begins to devise his plan.

The renewed gold standard is enacted, sort of.

The prince has all the land gather their hoards of silver and gold, deposit them into the banks he controls and promises his subjects, that from this day forward, sound money will reign supreme in all his lands.

The prince’s subjects, save a few wary ones, deposit their golden hoards, which they have hidden from the princes of past and present, into the princely vaults. Record amounts of gold, silver and diamonds, flood in and the subjects are ecstatic.

Even the prince smiles, benevolently praising his lands. “For the good of my subjects!” he laments. He feigns emotions at just the right moments, as his advisors have advised.

The subjects of the lands, relieved of the dual threat of the crypto-virus and the prince’s own fiat money scourge, forgive the latter and bash the former with abandon.

Pronouncements echo and postings are posted all over the lands. Town criers cry. On every tree and jailhouse wall, flapping in the breezes, are the grand and memorable memoranda: sound money is the order of the new day.

Of course, our Prince, along with all the other princes and kings; and not a few queens of dubious nature, have simply activated their plan to cast a shadow of disrespect over the whole of crypto.

“You see,” the prince quips, as he lounges on great pillows, attended to by subjects knowledgeable in the ways of arcane finance, “crypto is fiat…and princely sums are sound money – backed by gold and silver! I have returned to the ways of old gold!”

But the plans these of princes is most certainly a mirage. They, the princes and kings, the dubious queens and tyrannical tricksters, have merely confiscated the gold and issued multitudes of fiat. They have also declined to report the exact amounts of gold and silver in their safe-haven bank vaults, under their control and properly guarded by soldiers of the crown, by and for the good of all subjects, of course.

“Security,” says the prince, “is of vast and secret importance! Therefore, for the good of all subjects, I will keep the location and amount of princely precious metals undisclosed.”

…gold and silver and jewels…

What’s more, the prince, seeing to the secret security of all this gold and silver and jewels, has it moved from the banks and consolidated at his Summer Palace. A palace which is really a fortress far from his subjects and heavily guarded by loyal soldiers, who are paid in actual gold.

Princely subjects, fighting for the flag, dying for honor and dust, must dine, once again, upon the quantitative ease. No more are they worth, no less should they breathe.

Do you see any parallels here? This is essentially the repeating history of money. The Classical Liberal societies start with gold/silver monies then they devolve into socialistic fiefdoms and fiat systems controlled by the prince. A prince, who requires all your private information, to keep you safe from the wanton criminals and be able to reallocate your accumulated wealth as you live; and upon your demise, absorb your gold – all for the good of the prince’s subjects – meaning us, whether we like it or not.

And you wonder why the subjects currently trust fiat cryptocurrency over gold – for now.

The subjects – paupersdo not trust the prince.

Perhaps one should look at this trend. Bitcoin is gathering more interest than silver or the dollar. That’s an eye opener.

When do you suppose the interest in bitcoin will surpass gold? And does it have staying power?


Sincerely,

 

Your Friend in Crypto…

Jack Shorebird


Disclaimer: Believe none of what you read herein, half of what you see, and bow to the prince every night, before your subject-slumber, if you think that I’m not serious…

Cryptocurrency: Dreams in a Bottle or a Bubble?

Cryptocurrency: Dreams in a Bottle or a Bubble?

Dear Cryptocurrency and Freedom Lovers of Earth:

We are just dreamers waiting for the big bad bubble. Lean over and kiss your bitcoins goodbye.


Bubble Trouble

Cryptocurrency is a bubble.

It’s the 2.0 try-outs, since we didn’t believe them the first thousand times.

We love Ponzi, they insinuate. We probably initiate chain-emails in our sleep, insert cryptocurrency miners on your webpages, and dream of pyramid schemes…as we pay our extremely reasonable .gov taxes.

Cardano (ADA) will surely explode.

Monero (XMR) will implode.

Electroneum (ETN) will evaporate.

Ethereum (ETH) will wither smartly, and die.

Cheaters and meanies are hiding in the dark corners of those ICO-laced cryptocurrencies.

Bad people, the lot of them.

Run back to gold?

“Hey! But we love the blockchains! Just not the ‘people’ running them.

“You see, us banks and .govs – we do a much better job popping fiat bubbles. We just go around, blowing them up, making you go broke and then we do it all over again!

“And us metallic mega-hoarders, well, we can dig it too! And hopefully, one day in the far-flung future, gold will become what it once was: money. And then us mega-hoarders will win the day. We will say, on that day, if that day ever comes again that — we told you so!

“We can’t wait. It’ll happen soon, we promise!”

At least some of the gold bugs are on board the crypto-train. Guys like Mike Maloney. He’s a forward thinker, unlike others…

The lesser numismatic gods, the ones still hoping to influence President Donald Trump – to take the US back to gold – are instead bashing away at crypto. Maybe they don’t realize that they are, at the same time, bashing away at liberty itself. Not such a brilliant tactic as it is a calculated risk.

“Tell these Millennial dolts that cryptocurrency not stamped IN GOD WE TRUST and FEDERAL RESERVE NOTE is NOT money. Jeez, the humanity of it all. Tell them gold is the answer – immediately.”

Is that the general feeling you get from some of the golden metal-heads? The ones who warn of crypto-bubbles and hope for altcoin death, in situ.

And the best gold bugs? The proud Sharia Law complaint versions of them? “Oh Canada!” they sing aloud on their days off, from those frozen roof tops.

I take you now, dear reader to the halls of GoldMoney. In Canada. There, the money (no not money yet) is GOLD! Actually, the company was called Bitgold before that, but cited regulatory problems and low demand, before shutting down.

These golden folks have allowed to be posted on their website (and I’m almost certain it will be taken down like another YouTube video that fled in haste — business is war, right?) are the illustrious words of one Bubble Attacker: Alasdair Macleod. For shame. (My opinion.)

Macleod is an apparent researcher for the company in question, hence not the best disinterested party, right? A mouthpiece? Hmmm.

Then there is a far more corrupt banking industry to consider. Finance houses practicing insider trading. A Fed that feeds the US with worthless notes. Just read the headlines. Wells Fargo. JPMorgan Chase. Bank of America. Quantitative Easing. (Not an opinion. Facts.)

Need I say more? Aren’t you sick enough yet?

It’s not the banks or the .govs this time, however. It’s gold. Or more precisely, a troubled offshoot of gold bullion pushers surveying the crypto-landscape and taking careful aim.

 

Crypto Kills Fiat

To talk of cryptocurrency bubbles that will occur and describe them as a dire menace to .gov fiat is pandering to the .govs of the world. Gold money is a far worse threat to the .gov machinery and they – the bullion dealers — know it.

If people were actually allowed to use gold, silver, copper – as money – the Fed would close its doors and the Military-Industrial Behemoth would most definitely become rather irritated, if not hungry.

The .govs would need to finance themselves with real money then. No longer could they pass on the costs via inflation taxation. They would need to beg, borrow or steal the gold – again – from their subjects.

And that is always a problem, isn’t it? Gold theft?

And why can’t some companies see that? Especially ones in North America? Don’t they understand that before gold can become money again – that the entire centrally planned economic model must be dismantled? That laws must protect the people from their .gov?

It appears that Our Golden Savior of Canada is sounding that alarm, however. Or at least helping to ring a few bells to scare the cryptocurrency birds away. Darned pesky eagles just won’t die. They want to fly at any cost, even if it means creating their own crypto-fiat money in a world gone money-subservient.

It’s also a way of diverting attention – heat – from them. And a way to “sell more gold!” Soon they might begin knocking on our doors. Or you’ll see them at flea markets, not buying gold, but selling it!

Congratulations bullion traders of the Great White Socialistic North. Not that the US is that far behind either, but strike while the bubble is hot! And the bubble attack is ongoing.

But we need new material, not tired old rinse-and-repeats.

It reminds me of Chicken Little when he yelled, “the sky is falling!”

I’ll call them, those Gold Money guys and gals, Our Golden Savior. The bell ringers, who are losing investors to cryptocurrency. And who only want to make sure you and I aren’t being swindled, right?

After all, gold is money. No, it’s not. Not yet anyway.

 

The Warning

One Macleodian article on their website (and also here) talks to us about bubbles. But this does not irritate me as much as the Canadian based Sharia Law Compliant company does.

I mean, gold and precious metals are no doubt great value keepers, but dear fellas, we do not live in a golden age. I swear. I just called my bank. They said that they can arrange to store any gold I might wish to purchase; however, I can’t use it as money. (No thanks.)

You can’t spend it, your gold – in the US – like money. The IRS wants an accounting of each transaction. Just like cryptocurrency.

We live in a fiat-currency age – in the US. We are jammed in tight. Well, there is one out. It’s called cryptocurrency.

Gold is taxed as property in the US, which makes it terrible to use as money – even debit card based. I believe Peter Schiff advised this long ago, but now – he has joined them. And now…these facts seem to have drifted away. Little tax bombs ready to go off in April, when you have that “awe shucks” 1040 moment.

Don’t get me wrong, I would rather use precious metals, as money. I’d love to have a sound money system, but this fiat thing is just going to have to burn itself out first. Venezuela style. A little Greek fire, as it were.

The article in question asserts that gold is on the minds of many. Granted. Any form of sound money ought to be. If gold was money today it would be on everyone’s mind. Well, most everyone. Some actually like the fiat money system and socialist governments.

The write-up also warns, yet again, about the pure and shiny new bubble. The cryptocurrency bubble that is sure to burst – someday.

The problem is the golden .gov wall, however. We are all looking at that wall and asking ourselves the same questions.

Is there an alternative to gold, since I can’t spend it like cash?

Should I buy a few pieces of a precious metal and store it myself or should I use a gold bullion dealer in Canada? A dealer with gold all over the world in nice vaults – all on the ‘up and up’ – but far away…?

 

Crypto is NOT Money?

The primary debate against cryptocurrency, that it is not money, ought to be jettisoned.

We know this. We know it is not money.

Gold can be money, but it’s not either. It’s just gold, for now.

Cryptocurrency is more closely related to a functional currency or a service money, but it is a form of fiat currency as well. But a far superior fiat currency, for many reasons. And rather crappy, as well.

That’s what we are living with. We can use cryptocurrency, with all the associated risks or we can obey. Now do you understand?

Why did people risk their lives to come across the oceans in hopes of a better life? By comparison, this rather low-key way of transferring wealth is lame by comparison. It’s an exercise in freedom, however frail. The thing is, the .govs need to crush it in order to stop the virtual and peaceful sit-in.

 

A Bridge to Sound Money

Cryptocurrency is a bridge. It is a way back to sound money over the river of .gov fiat systems currently in place. It is the bank waiting to store the gold, so to speak. Only, the .govs stand in the way, so there is an impasse.

Who will blink?

How could crypto bridge to gold?

View it as a check or a contract.  A voluntarily enforceable one for now, but one that would easily fit in as a legally binding instrument against a rare commodity, such as a precious metal. Banks could accept cryptos in exchange for silver coins in some enlightened future. That ‘backing’ would likely stabilize cryptocurrency values.

The problem is that precious metals are currently locked out of legal tender status. The same can be said of cryptocurrency, except it has many other advantages neither fiat money or gold has – at present.

A gold bullion dealer is no less vulnerable to .gov regulations, than are most public cryptocurrencies. There are more private cryptocurrencies, however.

 

Privacy

And that brings up the idea of privacy. The love-child of cryptography and blockchain services.

Unlike the bullion company in question, where I need to give my name, address, income, photograph, ad infinitum – let them dig into my personal life – I don’t need to do that with many cryptocurrencies. Not with CryptoNote versions; and I can find ways around those exchanges now asking for my goods, as well.

The argument that the cryptocurrency companies, promote their own coin – buy in, pump it up – is a given. This is also true across the spectrum of stocks and bonds, in the restricted .gov regulated trading houses – where the brokers take their cuts and fees; and slice the pie more often than the average cryptocurrency exchange. All at the pleasure of .gov.

 

Early Adopters

Certainly, early adopters could make the most profits in a cryptocurrency economy. Ground floor opportunities have that potential, but this does not validate that a bubble is on its way. This is unlike the fiat cash flowing into the stock market and extinguishing any semblance of a P/E Ratio.

The obvious measure that bitcoin, for example, is a self-verifying property mechanism, is difficult to ignore. The limited virtual supply of bitcoin can drive its price. It’s ability to maneuver unhampered is juxtaposed with the .govs’ desire to bring it to heel. There is no P/E Ratio here. It’s absorption of one unstable fiat by a stable one.

Can that be said of our bullion buddies? Not the ones who sell us gold and silver and we stash it elsewhere, but the one in question. The one that essentially keeps our metal safely locked away where we will never see it and where any wayward .gov can grab it.

You call that safety? Try and grab my fiat crypto. Go ahead.

How did that work out for you?

It didn’t, huh?

 

The Undermine

And the fact that cryptocurrency can “undermine” capital controls is not a weakness. Money, ultimately, should be private. Taxes, ultimately, should be voluntary.

Did you not read the word “controls?” Who is doing the controlling and why? By what right?

Why must I send my cash via banks, be over-charged, wait days, when I can zip crypto to my Aunt in South America in seconds and do it much cheaper?

Hence, cryptocurrency is pro-freedom, whereas the company under scrutiny is compliant. But it must be, right? It has chosen the obedient path.

And fiat currency issued by .gov, is, of course, fiscal subservience.

If allowed to go mainstream, those cryptocurrencies that wish to comply with the long list of rules and fees, could certainly see radical value booms and busts. Obedience will have its profits.  After this alleged legal adoption, when the investment houses flood in, the public will take notice, as the assertion goes. The bubble will come as a result.

 

Pre-Bubble

So, the article in question makes the assumption that the .govs will eventually acquiesce to the public cryptocurrencies. Ones like traceable Bitcoin, Litecoin or Cardano. Then it all goes pop!

Why are the bubblers so certain? Past comparisons?

The South Sea bubble, where corruption was rampant? Government granted monopolies are not comparable to voluntarily purchased, transparent cryptocurrencies.

The Tulip Mania bubble is often cited, but the fact that much of Europe was debasing their currency at the time, is not often explored. Interesting parallels, but tulips aren’t cryptos.

Additionally, since many CryptoNote based cryptocurrencies are not designed with regulations in mind, this bubble warning only seems to apply to the public blockchains, like bitcoin and family.

According to the assumptions in the article, this future flood of bubble wealth into public cryptocurrencies will also cause prices to rise. Another dire warning.

That’s the static world view. In other words, more money into crypto equals more spending, equals less goods available, equals higher prices.

The problem is, when demand increases, in a free trade economy, the supply is often increased, and everyone wins. Prices often come down, in such economies.

This static theory of rising prices also ignores non-spenders. Some will save and not spend.

 

Choking

Yet another bubble warning is the “choke-off fable.”

Once and if .gov fiat currencies begin to falter, interest rates will be raised to entice crypto-investors away.

One problem with that scenario is rising interest rates slows the economy and could explode the debt and pop the fiat bubble all the faster.

Another? That crypto holds far more promise of profit than bank certificates.

If .gov could lure the crypto enthusiasts away from their chosen altcoins; however, what would stop them from also confiscating all the gold? After all, gold does compete with fiat currency and it makes fiat devaluation clear. An embarrassment to be certain, but one that can be easily remedied with an official announcement of fiat currency to gold conversion. It’s happened in the US before. Quite a choke I would say.

And we are only talking about the US here. There would need to be an international effort to quash crypto. Raise interest rates all over. And suffer the consequences.

A credit crisis would be the least of our problems then. Fiat currency would falter and I’d posit that cryptos, absent a move to a sound money standard (gold) by .govs — would maintain their purchasing power, so long as .gov didn’t zap the internet. Then we’d need to use stored reserves (gold/silver), eggs, canned goods and wine.

 

Conclusion:

The upside is that gold is real money, but it is not legal tender. Until then, it appears rather sluggish.

To state that private cryptocurrency is a threat to .gov fiats, that they could hasten their demise, is a bit disingenuous. Fiat currency is a threat to all of us already. If crypto hastens its demise, so be it.

The company in question is no less a threat and perhaps even more dangerous to investors, when one considers all the precious metals under their private control and the ability of any one .gov to remove said stores on a whim – or a “trumped up” national emergency.

In short, to return to a precious metal standard will require new laws in the US and elsewhere. It will require the closure of the US Federal Reserve, unless they begin to issue gold backed currency. It will then open the doors for competition between banks, with real money in their vaults. Money that should also be in your country of residence and not Dubai, Toronto, or Hong Kong.

Until then I’ll risk a crypto-bubble and pass on the debit card of gold, from the company in question. While waiting for the laws to embrace sound money, I will grow old and I hope rich, on the only form of successful liberty-currency I have ever witnessed in my lifetime: cryptocurrency.

 

Sincerely,

 

Jack Shorebird

 

P.S. Don’t let the .gov buttheads get you down. And think before you buy into Bitgold GoldMoney.


The above is my opinion. Make sure to consult your gold bullion dealer, economist, attorney, accountant and hair stylist, before you chance the Greatest Crypto Bubble of all time!

Electroneum (ETN) is Uber-esque?

Electroneum (ETN) is Uber-esque?

Dear Cryptocurrency Watchers and Dreamers:

The Crypto-Dream.

“So, do you want some Electroneum, dude? Just a taste? Yeah?

“Step into my dark alley.

“A little closer…”

Isn’t that what it’s all about anyway?  If you’re going to create a cryptocurrency, would you not make that cryptocurrency interesting?

And thinking this way, allowing yourself that luxury, how many cryptocurrencies out there, are interesting? Have any pizzazz? Ones that don’t make you want to throw-up after you buy them?

Take bitcoin for example.  We know it started in 2009 or thereabouts. Satoshi Nakamoto and all that. Please.

We know that hundreds of other cryptocurrencies are under development, but none have ever been as popular as bitcoin.

Even Nicolas van Saberhagen got in the act. And CryptoNote was born. And it was about time.

We also know that the Chinese really like bitcoin? Bull. We know that the Chinese (people) aren’t stupid. Why would an entire nation of near-slaves like any type of cryptocurrency that is traceable? Think again, Shirley. The PBoC (.gov) needs compliant subjects.

And we know that there are hundreds of other cryptocurrencies out there with varying degrees of excitement…and sheer boredom. Dull, as in sleepy.

So, where is the real McCoy? The real back-burner stuff, that we can move to the front burner – at least for a while?

Explosive adoption. A tidal wave of fun. Electroneum?

Bitcoin fights for superiority.  It struggles against its competitors. Bitcoin Cash, Bitcoin Gold, and many more. Ethereum, Ethereum Classic, Dash, Ripple and so on.

Crypto-creators are getting rich, but the investors are bilked – or is that milked? Why even try?

And the circus continues, right?  New processes, new promises, new wallets and basically the same old thing.

Download this PC app. Maybe we’ll have a cell phone miner – someday. For now, just wait. And wait some more. This takes time. More BS. More time. Meanwhile, we’re aging…

And zero “mass adoption.”

Wouldn’t that be nice? Mass adoption or “use,” in short order? A Pokémon GO routine. Uber-like.

Why?

Time.

Cryptocurrency can be very temporary.  Like the Hula-hoop or Fidget-Spinners.

And we know that hype can make people notice.  Or is it the other way around, if you build it, they will come. How about somewhere in between? How about if we sizzle it?

Is that the promise of Electroneum?  Having the same capabilities of Bytecoin, Monero and the CryptoNote protocol – but having some power behind it. Some excitement, but not hype. Some chutzpa? But not junk-coin.

And some live person to call and say, “Dude, like your coin but, well, I screwed up and forgot one freaking letter on the send address and now I have 1000 ETN’s in freaking stuck-like-pud-land. Can you help?”

“Electroneum here – we’ll get right on it, sir!”

Can’t do that with any other CryptoNote. Will we be able to with our ETN’s?

You’ve undoubtedly come across allegations from the Monero folks indicating that Electroneum is essentially a copy of Monero.  But was not Monero taken from BitMonero, by the alleged community?  Was not Monero taken from Bytecoin and the CryptoNote protocol, even if it has changed?

Sure.

Cryptocurrency is the land of clones and forks. In fact, the folks that brought us CryptoNote encouraged anyone to use their software protocol.

And now we have a Electroneum.

So, let’s get off our high horses, shall we?  Let the best man or woman, win.

I am sick of the purification schemes that never come to fruition. CryptoNote coins that never rise to the “user-friendly” environs, because, you see, the users are losers. The developers, lost in their own self-serving nodes, regale us with their genius, then crap on us with their half-baked excuses.

Maybe it’s time to let Electroneum give it a go.

If expert businessmen and marketers can combine their resources and use a product better than those who developed the original product, why shouldn’t they?

It sort of reminds you of ranching.  Once you voluntarily sell your cattle, the next rancher can do what?  He or she can compete with your business and sell more cows. You can go out of business for being less efficient or get to work.

Sure, people will like the privacy of Monero.  They like security, absolutely.  But if all you do is sell the steak, refuse to sell any sizzle, your business model may not succeed.

That’s what I think Electroneum is trying to do.  Trying to sell the sizzle and the steak, using the CryptoNote protocol, but centralizing part of the works. This certainly decreases the privacy part, but will it matter?  Will anybody care, if it serves to unseat the Fiat Gods of the Fed? Besides, we’re not talking about a coin that is being built in a third world communist regime.

Does anyone really think that cryptocurrencies are long term investment vehicles, though?  That cryptocurrencies are not temporary? Of course, they are. Things will change.

Come on, search your soul.  How many times have you deleted the bitcoin wallet from your computer?  How many other cryptocurrency wallets have you downloaded and deleted?

And I am not saying that I would rather have .gov fiat money. I think that .gov fiat sucks.  All I’m saying is we need to make some hay, while the crypto-sun is still shining.

Using that as a backdrop, anyone who invests in cryptocurrencies, might want one with immediate and powerful messages and a potential to rally — and rapidly expand.

Why? Is it not plain? Strike while the iron is molten, not after the .govs ramrod the innovators.

Less chance of losing money, right? More chance of making money, don’t you think? No more delay.

So, the key, is to recognize the next major expanding cryptocurrency.  That’s a tough job.

Looking back almost anyone can see how the new cryptocurrencies arrive on the scene. How they create some hype, suck in millions of dollars, plateau and then fade. More advertising is pushed out, more videos, professors, news guys, hot chicks — all talking-up the protocol while more investment money flows in; and then what happens?

“Adios, nitwits.”

Oftentimes you have a stationary thing.  A crypto-monster treading water until it disappears into the depths, with your cash. The crew and talk-bots shift to the next coin. Failures dot the crypto-landscape, but these coin-pushers thrive here. It’s too easy.

“Wanna taste for free,” they ask? “An air-drop maybe? This is some 3.0 stuff!”

So, you buy and cry.

The pushers call them tears of joy.

Zombie-coins. Churning coins. Incessant trading. Exchanges, feeding off the fees. Money tubes, full of lost labor. Math freaks gorging on code.

And it all sucks. And I’m tired of it, aren’t you? Way past day-trader mode and gambling. Now I want a contender, ready to show us the marketing stuff. Show the blockchain-lovers, how the hell it’s done.

Could Electroneum do that?

A few months later, after the next-newest cryptocurrency version has failed, no doubt the same guys will be back with the next great cryptocurrency. They’re trying again. ICO after ICO and dump after dump. They need millions more of your hard-earned money.  There is another rush to purchase, maddening pumps, spectacular dumps, and then the cryptocurrency is shoveled into that pit where our money burns. But they come again. Version 12. A new team. New protocols. New wallet.

Oh, just stuff it.

Cryptocurrencies are labeled as Ponzi schemes and pyramid schemes, somewhat like the current .gov fiat money schemes we use today.  We are told that cryptocurrency exchanges are unregulated, and they can essentially cheat their own system.  We are told that private money can lead to more crime but the cash in our pockets, created by our governments, is somehow immune?

With all this bad news, maybe a Electroneum is the good news.

At any rate, cryptocurrency is a choice.  It’s a free choice. Government money is required money.  And gold and silver are not legal tender, for the most part.

If you can’t crap, CryptoNote progeny (you know who you are) then get off the pot.

Let’s watch Electroneum.

Sincerely,

Jack Shorebird


 

Bitcoin: Not a Value-Producing Asset?

Bitcoin: Not a Value-Producing Asset?

Dear Cryptocurrency Readers:

It’s good to keep tabs on the big picture while hoping for the good news. But don’t short change yourself if the time comes to make a choice between regulated or unregulated cryptocurrencies. It may be better to pay the tax, than pay the fine…or worse yet, be placed in a “political” prison cell.

Think long and hard about trying to hide your crypto stash and making your escape to some foreign island after you trade a chunk of it for some local fiat, gold or silver.

Things like crypto need to be won first in the courts, in countries where that is still possible. Political representatives must carry the banner and I feel that eventually, crypto needs an anchor. A hard currency. Only then will it be able to unhinge the fiat myth we have lived under for over half a century in these United States of America.

Is not that the ultimate dream of cryptocurrency?

It made many see, for the first time, that there is a way through this monetary nightmare we call government fiat currency. If it is only a pipe dream, that dream has had a lasting impact upon the minds of many – worldwide – I will posit. And dreams drive change.

Even if cryptocurrency dies, fifty years from now, people will remember, that for a brief time, the purse strings were almost given back to their rightful owners. The people. To you and me. We were almost back in control.

I write all of this in the hopes that I am dead wrong. That cryptocurrency, as it was meant to be, does not die, but evolves and helps to remake this decaying fiat world.

In short, this is not investment advice, it’s thinking advice. Education and speculation, is better than throwing the virtual darts at the virtual dart board.

For those who highlight cryptocurrency charts, citing all the technical reasons to “buy now,” know that the problem is a fundamental one. We need to look at the creators of these cryptocurrencies, why they make them, how they will work and so on.

Fundamental analysis is a must in the cryptosphere.

According to a MarketWatch article, Warren Buffet recently remarked that he thinks coin [cryptocurrency] offerings will end badly. “People get excited from big price movements, and Wall Street accommodates,” he said.

I don’t think Buffet gets it.

Buffet also advised that “You can’t value bitcoin because it’s not a value-producing asset.”

Now think on that a moment. “Not value producing.” That’s a fundamental issue, is it not?

So, it’s not a house or a farm or stocks. We know this. Buffet is not telling us anything new here, just couching it in investment terms. But remember, Buffet is also – if I can judge by his past statements – pro-big-government, pro-higher taxes for the wealthy…he’s a status quo kind of fellow. Rose colored glasses and all.

Guys like Buffet need what? They need the rules to remain “stable.” Capital gains taxes, income taxes, regulations, political support, all play into the scheme to use the system to earn more fiat money. Fiat money and other real assets, but all lubricated by a slowly crumbling (could be quickly) monetary system.

Bitcoin and company mucks up system, if they are seen as a currency replacement mechanism, say to the grand old investor types. So, they refuse to imagine the potential if such thinking requires them to start from ground zero. If it requires them to ask that burning question they refuse to hear: What is sound money? And the other one. Can we get along better without it if we pay off (buy) the bureaucrats and ask for special favors granted involuntarily, by the taxpayers?

But let’s compare.

Is digitized anything, say music, talk radio or even movies – are they value producing?

Yes, but they have an industry behind them. Singers, producers, directors, and labor unions. Companies with stock. Buildings, cars – the machinery of sight and sound.

Does bitcoin, specifically, have that same sort of structure? Or is it a bubble?

No. It has voluntary “assistance” right? Those who are willing and able to code and debug, right? There was no bitcoin creation company, as far as we know. Satoshi Nakamoto could be anyone or a group of communist sympathizers. We haven’t a clue.

Bitcoin is not an asset, in the traditional sense, only a service based upon secret codes, information exchange, shared data ledgers, miners, computers, internet use and so on. We know that bitcoin (currently) is very valuable, but subject to change, forks, political risk, clones, hackers and crowd sentiment.

Bitcoin is also subject to being replaced, at any time, by better technologies. Some new developer who can convince the world that this new bit of code is the cat’s meow.

Bitcoin is also subject to wide value fluctuations. Fluctuations, if you are risk tolerant, that can earn profits – or not.

So, bitcoin does not appear to fit any valuation model that I am aware of. Yes, it is anti-fiat, anti-capital controls, pro-personal banking, anti-inflation, anti-establishment, anti-tax, anti-status quo, and emotionally charged, probably a bit bubbly, but its asset value is, like Buffet contends – missing in action.

Is it just a numbers game?

Certainly, we are in new territory here.

Steve Wozniak of Apple fame thinks “cryptocurrency could become a better standard of financial value than gold or the U.S. dollar. Wozniak argued that Bitcoin is more stable and less prone to arbitrary supply changes.” This, according to a recent piece at Futurism.com.

If Wozniak does think, as the article suggests, that bitcoin is better than gold or the U.S. Dollar, he should qualify that statement.

Currently, the U.S. fiat dollar works, but into the future?

Gold? Well, it’s not used as legal tender in the United States in any huge way.

So, yes, right now, bitcoin appears to have a lot of advantages, except for what the article mentioned:  stability. You can’t depend on it.

Wozniak is a computer guy, not an economist. So, I would lean more toward the investor extraordinaire side – be a little Buffet-ish. But does not the truth land somewhere in the middle?

What seems to support Buffet’s words and may spell bad news for bitcoin and cryptocurrencies in general (maybe not Ripple or Stellar Lumens) is the recent news from AMD. AMD sells GPU’s which can be used for cryptocurrency mining. They are projecting losses now.

Does that mean cryptocurrency miners are no longer as interested as they once were? Or is it as this article explains, that the centralization of mining is requiring more than GPU’s? ASIC farms and other specialized processes, in China? Could it be a larger move away from mining altogether? A shift to Proof-of-Stake coins?

And then there’s the Russian angle to consider. Motherboard advises that the Russian Government is finally – if we can believe it – regulating these crowd funding mechanisms, i.e., cryptocurrencies. Taxation is coming to a miner near you – in Moscow. Wow, even America is past that part. Well, except for the registration part. “Papers please, Comrade!”

But what are the Russians really doing? Invading. It’s what aggressive regimes do. Take over other “countries.” This one is called “The Virtual Currency Country.” Dear Comrades, bend over and take it — be invaded.

Hey, don’t worry, America will probably join you soon. They will be a bit more coy about it, however. The bankers will hide behind the regulatory agencies, I’ll assert. Pushing them all the while to “register” all cryptocurrency related organizations, companies, and exchanges. Make them fall in line or suffer the fines, taxes and yes — Jail House Rock.

Just as Jamie Dimon hinted – arrests might be next. Oh, but they love the blockchain. Go figure. Wanna bet the bankers do not want a public blockchain — like bitcoin?

What does this tell you? That the banking industry will soon use the blockchain technology and then seek to outlaw all private cryptocurrencies? To monopolize cryptocurrency like they do fiat? With the blessing of the FED of course. Or maybe they will use a ready-made solution. Ripple? Hmmm.

Think again. Banking is about responsibility and control over the owned (official)  currency. They will want their own crypto’s. Crypto’s identified to their banks in some way. Ones that they control absolutely, if possible. If not, at least a Fedcoin, but then why would we need banks at all then?

Do you really think banks will outsource cash to Ripple? No, Ripple will be used to lubricate international transfers, until the banks figure out a cheaper system. A more profitable exchange mechanism.

If all this bad news continues, my concern is which non-establishment, unregulated cryptocurrency or system can survive and profit – long term – in such an environment? Will the ones which sought to comply with regulations early on survive in an anti-bitcoin world? Ones like Ripple? Ethereum? Stellar Lumens? How about Cardano?

And does this lack of backbone, a crypto’s desire to please the masters, only help to destroy a movement with the original intent to halt the devaluation of fiat currencies altogether? To replace the corrupt system, from the computer up?

Maybe so, but I still think that for now, one can profit if there are any major shifts from the dream – a private decentralized cryptocurrency – to the reality – soon to come “government regulated crypto.”

Not necessarily “state” created crypto, however. That wouldn’t be any different than the current fiat mess we are in now. In fact, it would be much worse. Every bit of your money could be tracked.

Welcome to a Brave New World.

That’s all for now.

In the meantime, you might want to store some coin on a Trezor.

Jack Shorebird


 

Cardano (ADA) is NOT Money, but that’s Okay — neither is Bitcoin…

Cardano (ADA) is NOT Money, but that’s Okay — neither is Bitcoin…

Dear Cryptocurrency Enthusiasts,

I heard the air just go out of the room. How can I dare say such a thing? I mean, why? Why challenge the Gods of Crypto? Because I listen to them when they say really dumb things and I’m a bad little sheep. I crap on their stage and bleat. It’s okay, I’m just a little sheep. Not much to worry about.

After reviewing several recent videos put out by the more vocal cryptocurrency developers and evangelists I wanted to reiterate a few things about what these pro-cryptocurrency, blockchain promoting, initial coin offering gurus and family, might be obfuscating: reality.

(There. I just let one go. Plop.)

And this goes for nearly all cryptocurrencies. Bitcoin, Litecoin, Sexcoin, Ether-bum and Frogpennies included.

What? There are no Frogpennies? You mean I was scammed? Again?

Dammit man!

I’m no newbie (noob) to this financial vehicle. I’ve been around the bend. Lost and gained. And I’m still here. Still playing the game. Still bleating and trading — and winning — for now.

“Freaking gambler!”

Hey…relax.

So, this is a reality check, from a fan of cryptocurrencies. (That’s me. Don’t forget that part.)

Is cryptocurrency anything other than a speculative vehicle?

I mean, look at where most of the money is going in cryptocurrency markets.  Most of the investment is going into bitcoin. Currently, bitcoin’s market capitalization is nearing $100,000,000,000.  Each BTC is now (almost) worth – $6000 each. It kind of wobbles there — for now.  Certainly, another milestone for cryptocurrency at large.

But is bitcoin worth anything at all? Go ahead. Torture yourself about energy, electricity and nodes. What type of value, other than a service value, does any cryptocurrency have?

Tick-tock.

How’s the mental argument going? Feeling twisted up yet? Okay, I’ll let you off the hook. It’s better for your blood pressure that way.

Wait a minute… The older guys and gals take this crap in stride. It’s just the younger ones who need to chillax. We’ve — us elders — been around the apple cart a few more times.

“Oh, but times have changed!”

No. They have not. Crooks are always crooks, not matter the century. Dummies are always dummies. Blonds are…  Never mind.

In the cryptocurrency world, there’s a lot of conjecture about the nature of money itself.  So, I’d like to explore that a bit. Remind the wandering souls who left their gamer chairs and headed over the crypto-couchs for beer and saki. (Which are both wonderful, I’ll admit.)

Hopefully, these wandering post-gamer types (Vitalik?) will sober-up before it’s too late — for the rest of us broke investors.

So, let’s get to it.

One of my favorite definitions of money was provided by Ayn Rand. If you don’t know her, consider yourself — sorry — uneducated.

Okay, maybe that was harsh. But if you are in the Fintech world, you ought to be ashamed.

If you go to aynrandlexicon.com and look up the word “money,” you will find the seeds of what I’m about to go over, there.

The Lexicon pulls this definition from a piece that Rand did titled “Egalitarianism and Inflation,” from the book titled Philosophy: Who Needs It, page 127. (Go ahead, look it up. You can google it. I’m tired of giving out shortcuts like candy.)

So, let me compare cryptocurrency to money. I think that a lot of people are disregarding this very important definition — to their own detriment.

According to Rand, money is a tool.  A tool that can be used to exercise long range control over one’s life. A tool that can be used for saving. A tool that permits delayed consumption. And, a tool that buys time for future production.

Think on that a moment. Pick up a wrench. Caress it. Did you just fondle money? Well, kind of.

Is cryptocurrency a tool? Can you fondle a crypto? Would you want to?

Certainly, crypto is a type of tool or at least an application, but it requires something a money-tool does not. Cryptocurrency requires energy. Electrical energy. It also requires a computer, software, regular updates, dedicated developers and user cooperation. These are only a few of the cryptocurrency requirements.

In other words, crypto is a “user of tools.” Catch that? It’s a multi-tool. (Oh, that’s gross.)

Can a cryptocurrency be used long range, however?

The apparent answer is that it cannot be used beyond a few years, without improvements. So, in this respect cryptocurrency cannot be used to exercise control, in a long-range manner.

Crypto is a shorty sporty. Heck, so is my wife.

Can cryptocurrency be used for saving? And by saving, I mean saving something of value (a tool — remember) that one can come back to in a week, a month, a year or longer — and pick it up, dust it off and say, “Wow, it’s still good as new.”

The simple answer, again, is…no. Attempting to save cryptocurrency beyond one week might be very risky. Yes, I’ve heard about bitcoin. Probably, before you.

In this respect, cryptocurrency cannot be used to delay any consumption for greater than perhaps a few days. It cannot buy time for the future.

Gold, for example, buys one “time” in a sense that one can delay using it for years. Maybe, if the governments did not control the price.

Let’s look at another aspect of money that Rand indicated was a definite requirement.

Money must be a material commodity that is imperishable.

Not a banana or pork bellies. Not energy or “trust.” Not nodes or networks. Material…and a commodity. A tough and tumble thing that just holds the fort and takes no prisoners — not even during “World of Warcraft.” (That should probably be Witchcraft.)

Now, you might ask what (exactly) is “imperishable.” And it is clear cut –  it is something that cannot perish or if it does perish it would take some serious effort. Computers and networks and games — they all go “bye bye.” Time kills them.

Cryptocurrency shall perish from this earth — I mean — eventually. Maybe in a few years. Maybe after Fedcoin awakens and the apparatchiks get going. Make a few arrests. Tax people into the poor house. A bit of insurance policy suicide.

So crypto is perishable, but for now, it’s a great fruit. Sort of like one of those irradiated, dehydrated apple chips. It’ll last for a few years on your counter, but once the dog finds it, yum-yum.

If the power goes out in your area, can you spend, save, and borrow a bitcoin? If your country makes cryptocurrency illegal, will you still use it? If, a few years from now, a newer and much better cryptocurrency is invented, what will happen to your preferred cryptocurrency? It just rotted. Perished into the doggy mouth.

Rare. Money should also be rare. Something that is abundant, easy to produce, easy to copy, easy to “fork,” does not meet the definition of rare. Think copy-machine. Think clones. Think, fiat-money.

Artificially reduced numbers on a digital ledger does not meet the definition of money, but it could be a type of functional currency. Reduced numbers of cryptocurrency atomic units do meet the definition of “limited,” but digital information is not in and of itself, rare.

Unless you print this — the words you are now reading (and why you waste you time here, I’ll not ask) — are born of code. Pixels instructed to turn on and off, by a bit of computer code, fed through a electronic processor. Okay, it’s not the best code. Not a crypto-code, but you catch my drift, don’t you?

Codes are not rare. They can be secure, however.

Money must be homogeneous too. Standardized. Similar. A dollar bill looks the same and spends the same all over the U.S. and many other places. (Yes, I know dollars suck — but they spend.)

Multiple kinds of functional money, i.e. cryptocurrencies, are not standardized. Although, many cryptocurrency technologies are similar they are not, for all intents and purposes identical. There is no standard. (Maybe that’s good, actually.)

Money must be easily stored.

Generally, this might mean that money is compact, perhaps stack-able, able to be placed in one’s pocket, transportable and able to be secured.

Yes, I know gold is heavy and past presidents in the US have stolen it from the people — and that it’s really hard to steal crypto.

But you know what’s even harder to steal than crypto? My thoughts. Electronic (and chemical) codes I can relay to you via spoken or written words.

I have secret thoughts too. Try and take them. On second thought, don’t — you might get sick. I’ve seen some pretty messed up things in my life.

Is cryptocurrency easy to store? In some sense, saving information on your computer is quite easy. But is that true storage in the physical sense? And isn’t that what we’re after? The ability to place money in a safe, under your mattress or in a tin can in your backyard?

Are my thoughts money? I think I have nodes too. My neurons are decentralized in my brain for sure. Billions of nodes, just humming along.

Money should not be subject to wide fluctuations of value, according to Rand. This seems straightforward. Sort of like, “Duh!”

My thoughts fluctuate. Crypto pops up and runs to ground often. I wonder, can I trade my thoughts on an exchange?

If you place a government issued coin in your pocket, unless you live in Venezuela, it will probably maintain its value throughout the day, perhaps an entire year.

On the other hand, if you stored a bitcoin on your computer hard drive, next week it could be worth twice as much or half as much.  And this goes for most other cryptocurrencies as well.

Not so for my thoughts. They are worth zilch, until I use them to develop something — say a crypto. There, I just did. Did you feel it? Wanna buy some thought-crypto?

So, fiat currencies are terrible, but they generally hold their value over longer periods of time – a stable value — when compared to cryptos. Especially my thought-cryptos.

What else is important about money?

Well, if you can’t go to the market and spend it, there’s a problem. If you can’t buy a cup of coffee, a soda, or a car – anywhere you normally go – there’s a problem.

Oh, please don’t bring out that BTC ATM map. Just go to the store and let them stare at you like you are a “nerd.” (Hint: you are. But it’s okay. They meet on Wednesdays, I think. Make sure to bring your pencils.)

So, if a cryptocurrency is to become a functional money it must be in demand among those you trade with. Not only the Wednesday “Nerd” Group. Currently, cryptocurrency also fails in this respect.  Let me repeat that, currently. Today.

(Note: Nerds may conquer the universe. Just look at Bill Gates. He’s got his own crypto now. “Way to go Bill, you copycat. No, I know you did not copy Apple…”)

Let’s get back on track, before Billy gets made and shuts this blog down. Really, I apologize Billy. I know you love crypto too.

Using Rand’s definitions, it seems that the only true money is gold.

“Oh not that rock thing again. You’re so retro, dude!”

Straighten up. Get a job, before your dad kicks you out.

Gold has a tangible value, but, as Rand states it, gold is “…a token of wealth actually produced.” Moreover, the transaction itself becomes much safer, much simpler, because it is like bartering.

Let’s recycle.

“No, Mr. Retro. I need to get back to War of the Witchs II!”

Money is a tool.  Cryptocurrency is an application that uses a tool – a computer.

“So.”

Tools can be used over long periods of time. We do not know how long cryptocurrencies will last.

“You mean it’s like a new modified game?”

No. Listen.

“Why?”

One can save a money-tool. If one saves a cryptocurrency application, it may be outdated within the year.

“Yep, just like my computer games. I sort of get it now.”

If you delay using your cryptocurrency, you may lose all your money – all your value.

“Right. You can’t sell used games for squat after a few months!”

The money-tool ought to be imperishable. Cryptocurrency is perishable.

“Games are dead soon after release!”

Right and a cryptocurrency is not a material commodity.

“True. I download my games now.”

Cryptocurrency is not rare, only mathematically limited.

“You got me there, grandpa.”

Cryptocurrency is not homogeneous in the sense that it is standardized among the persons with which you trade. If cryptocurrency were standardized, this might increase its demand.

“Yeah, a lot of dudes can’t stand War of Witchcraft at all! No demand. Puds.”

Cryptocurrency requires a stable value – if it is to escape the bonds of speculation.

“Hey, I made a few bucks with mining Piggycoin a few years back!”

Aside from the fact that cryptocurrencies do not meet the ‘Randian’ definition of a sound money, this does not mean that its value will not increase.

“Like I said, the Piggy was good to me. But my mom got tired of the high power bills and the gizmos making all of that noise.”

Even if governments choose to define cryptocurrencies in different ways, those jurisdictions with the least amount of regulations appear to be reaping the benefits of increased Fintech investments, for now.

“I heard that. But I’m not leaving America for some European paradise.”

Cryptocurrency is also voluntary. Fiat currency is not.

“That’s the point, right?”

Cryptocurrency is also trustworthy, in many cases. Many people trust the math, but some are concerned about the developers who write the code.

“Dude, you are confusing the hell out me. First you say they suck, now you say they don’t?”

Is fiat currency trustworthy? It depends upon the country, the economy and the leadership.

“Oh, yeah. Bummer.”

One thing is certain, however, even with two arms tied behind its back, decentralized cryptocurrency has captured the imagination of the people.

I think that any blockchain adoption by governmental entities, will only serve to solidify the people’s belief in the private use of the blockchain technologies.

I’ve also included a YouTube video of mine, highlighting some of the above issues.

“Dude, can I go back to my games now?”

Sure.

 

Sincerely,

 

Jack Shorebird

P.S. I’m selling my thoughts for one BTC each. Guaranteed to be far more awesome than any cryptocurrency ever mined, minted, spat out, staked, gassed-in or farmed-out. There is a limited supply of my thoughts because one day I’ll be dead. (Shut up, I heard that.) Just leave a reply and we can work out the details. I’m not going to leave my BTC address. That’s just tacky as hell, don’t you think? Hurry, this is a limited time offer — maybe less that 30 years before it ends and my decentralized network will cease to function.


(Disclaimer: The above is the opinion of this writer. Any appearance to reality is merely a coincidence. If it bothers you, mine some ‘coin.)


 

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