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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


 

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Do You Own “S2S Compromised Cryptocurrencies?”

Do You Own “S2S Compromised Cryptocurrencies?”

It’s about peers versus subjects, is it not?

Are you a P2P or and S2S Person? That’s the gist of it, right?

P2P is what? Peer to peer, right? Person to person.

S2S is what? Subject to subject. Slave to slave, in some countries.

Pause. Think. Slave to slave = S2S?

So much is said in that P2P acronym. So much is lost in S2S. It matters.

If you are P2P, you are probably safe. But you can be safer. You can do one better.

As an S2S believer, you are in trouble. But don’t take my word for it. Ask Mr. History.

When observing the changing cryptocurrency landscape, we note capitulation and appeasement. Those who bring change; and those who want to stick to the old way of doing business. If not the old way, then bending the new way to the will of the old.

But P2P is not new. It has just been adapted to the blockchain.

S2S is the old way.

Why do we own certain cryptocurrencies, but not others? Why is the P2P idea the best thing to have hit cryptocurrency, let alone the human condition, in thousands of years?

But…there is P2P and there is private P2P, correct?

Many of the newest breeds of crypto-entrepreneurs have forgotten the words of Satoshi Nakamoto and have instead, chosen to use the blockchain technology for other reasons. And there is nothing wrong with that, save the lack of vision of such people. The automatic and almost tribal reductionism is inherent in the herd mentality.

In other words, the desire of many to belong to the herd at any cost. Spare no expense, they say. Trade your privacy and your freedom for a false sense of security.

Don’t rock the boat. Don’t go against the flow. You don’t really need or want P2P. You need S2S. We hear this so often.

So, let’s recall those words, just a few of them, purposely embedded within the Bitcoin Blockchain. “Satoshi’s Warning,” I will call it.

These words resonate today, and I submit that they will resound into the future — if we are still here. And these words will be taken more seriously in ten or twenty years, if world economies do finally collapse, and if cryptocurrencies save the day after that foreseen collapse.

The warning:

‘The Times 3 January 2009 Chancellor on brink of second bailout for banks’.

This statement gives one the clear sense that Satoshi had a problem with governments and bank bailouts. He did not agree with the current monetary system in general.

Why?

We can speculate about his motives, read his various quotes, but can we agree that he/she/they invented a well-functioning, but not private, peer-to-peer e-cash system? It seems to me that Satoshi, and I have stated this before, provided the outline – the foundation – upon which others could build.

And remember that: P2P. Let that echo over and over until it seems to lose meaning. Until the echo of it comes back after a time and reminds us what it really is. What its value really is.

P2P is that rock in the river, standing against the tide of financial tyranny. If that rock is hardened (privatized), all the better, but bitcoin’s P2P rock sits high in the rapids. It is “exposed” P2P and it is sandstone. Sandstone will not last. Even so, some want to convert bitcoin to S2S, now. They want to blast that sandstone apart.

If “exposed” P2P is the core value of the bitcoin service, how can it be improved? Satoshi warned that this P2P system was only temporary. That it probably would not last. Was he correct?

Satoshi showed the way.

Then Nicolas van Saberhagen came along and privatized the blockchain. It was the next step in the evolution of blockchains. Many other P2P models are “exposed” at some level.

Saberhagen (he/she/they) created CryptoNote and after a rocky start a new crypto pulled away from the pack: Monero (XMR).

Monero has one well known face: fluffypony (Riccardo Spagni). He came forward and I submit, took his freedom in his hands when he did so.

For all the rancor surrounding Monero and all the concerns I still have about its developers remaining behind the curtain of anonymity, I respect Mr. Spagni. And that is the point: trust. Not to mention that Monero was the first successful private crypto on earth. (Okay – that’s an assertion. Prove me wrong.)

There is another crypto that deserves mention here and I have cited it before. Aeon. “Smooth” is the developer of Aeon and works on Monero. Smooth is anonymous. This might be important in the future since Monero is slowly gaining acceptance on an international scale. Aeon would seem to be the logical partner in that effort.

And there are other private crypto’s out there, but I am only mentioning Monero and Aeon in this post as examples. Many of the other privacy based coins do not have the longevity, have changed hands, or have known developers – which is a risk.

There are arguments against the PoW (proof-of-work) based blockchains, such as Monero and Aeon, as well. Even bitcoin uses PoW, but Ethereum is apparently considering a PoS (proof-of-stake) blockchain addition or change-over. PoS is more energy efficient, certainly.

Obviously, these “proofs” will evolve over time, but getting hung-up in the debate may not be the best course of action.

In fact, allowing the salesmen, flush with crypto-cash, financed to the gills with venture capital, to present vivid images of Crypto 3.0, is a trip to S2S.

How so? These salesmen, often experts in the field of blockchain, are not experts in the field of privacy.

The war now is to destroy the very essence of bitcoin and any cryptocurrency attempting to remain private. It is an effort to undermine the best P2P out there. Usually, by means of overregulation and/or making such transactions illegal.

KYC. Know your customer. Papers please, comrade. You might be a communist-terrorist-tax-evading-immigrant. You might be a criminal. Just in case, we need to know you. Who is this we?

On the other hand, you are probably just an innocent citizensubject wanting to keep as much of your money as possible. And it is your currency, right? No, it is the State’s Currency. “But I have some XMR’s,” you answer, “not State Currency.” All the more reason to know you, comrade.

Privacy? You have no right to that; the herd tells you. What are you trying to hide? Nothing? Prove it. Show us all your currency and let us decide.

Welcome to America, land of the citizen-subjects. Hey, at least we can emigrate – so long as we have paid our taxes first. Even if you hand in your citizenship-subject papers, you must still pay your exit bills, before you may emigrate, right? And they dare call this freedom? (Hey, I’m American, but America is not a place – it was an idea – in the past.)

Is it any better in the UK, Australia, Canada, or Switzerland?

Because of government pressure, the cryptocurrency innovators are beginning to give in. Or maybe they never had the guts in the first place. They are creating what amounts to “S2S” or Subject-to-subject transactions. Weak sister versions of the almost true form. Compromised crypto’s, the lot of them.

But I’m sure they work just fine.

These new S2S innovators are the compromisers. They help support the current fiat monetary systems. The highly centralized, highly controlled, inflation pushing bureaucracies.

I labeled Cardano (ADA) as S2S compromisers. But they are not alone. Ripple (XRP) is S2S compromised as well. Even Ethereum (ETH)  advises that they will comply with governmental information requests. I’m certain there are many more S2S compromisers.

Few have the tenacity to protect privacy. Legitimate privacy. Many of the cryptocurrency exchanges bow to the might of “.gov” as well.

These S2S capitulators have good people working for them, however. They have children and dreams and I do not fault them for coloring within the lines. If they are to remain at liberty, to exercise their delimited freedoms, they must bow down. No blame can be placed upon subjects working within their enclosures.

It is odd that a fluffypony will not bow, however. It requires vision and nerve to stand, virtually alone. To back a crypto that will not comply.

The same can be said of Smooth and all the developers of both coins (Monero and Aeon). To believe that the “.govs” of the world have not discovered some of their identities, is foolish. And they know it.

And don’t give me that bull about sacrifice. These men and women working behind the curtain to privatize crypto are not doing so for free. Their trade, their gain, is profit. Their potential loss is their freedom. Is this a sacrifice or a trade? Are they, in a sense…

…mutually pledging to each other, their lives, their fortunes and their sacred honor?

Private P2P is a down payment on future value few can imagine. To buy the freedoms of their children. To refuse the current call for S2S, and see what happens.

I hope these private P2P men and women, keep at it.

Here’s the audioblog along the same lines: “The P2P Question.”

If you need to convince yourself that privacy is important, buy this: “For the New Intellectual”


 

Note: As usual, the above is only an opinion. I welcome any responses. In the meantime, do not base investment decisions upon any of it. Call your banker, broker, insurance salesman and/or financial advisor, if you must.

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.)


 

Ripple (XRP): Kill the ICO’s?

Ripple (XRP): Kill the ICO’s?

 “He has erected a Multitude of New Offices, and sent hither Swarms of Officers to harass our people, and eat out their Substance.”

Dear Cryptocurrency Folks,

The above is a line from the Declaration of Independence in the United States of America. Then and now, these states often differed in their opinions and laws — or lack of them — but for a time, men and women of courage dared to enrage a despot.

The declaration was addressed to King George III. And, as we know, it changed history.

I firmly believe that a certain Ripple (XRP) CEO needs to read the above words and attempt to comprehend their meaning, if he has the capacity. Read them, and if he has the guts, to step up and do what is right and not what is expedient.

But few men of this stature exist. Few men or women are willing to “do the right thing.”

You, the people of the Fintech Future, should know that cryptocurrency is a revolution in currency. A new way to both secure transactions, records, identity and the like — with modern technology.

Without interference.

Without “Swarms of Officers” to harass us.

Not so, according to some. We need to be whipped into shape, otherwise there would be mayhem in the streets, sayeth the crypto-banker kings.

But your rights to own crypto, to experiment, to invest, to see where this road takes you — is about to be attacked. It’s only a matter of time, before — if you allow it — they will eat our substance, yet again.

The lights are being snuffed out, one by one. And this is not only about the regulation of an airline or some new drug. This drills much deeper. This goes all the way down to the economic tool we use daily. A tool that, each day, is rotting away in your wallet. That tool, which was essentially stolen from you, decades ago, is itself under attack. But not in the sense that you think.

The tool is fiat money. It is weak and wobbly, but our governments require its use. Order its circulation. Decree its sanctity. Its religion. Its myth.

Its competition is cryptocurrency, yet another fiat, but with a primary advantage: inflation resistance.

Many of these crypto’s have a limited virtual supply. This is unlike fiat currency, which expands and contracts – inflates and deflates – at a bureaucrat’s whim.

Without exception, history reminds us that flexible fiat currencies of this nature, eventually fail. They die of inflation. Prices, indexed to the fiat, skyrocket. Black budgets devour the stock seed of wealth.

Is there an interim solution to fight this downward spiral? A way to slow the inflationary money drain, until systems of sound monies can be reinstalled, by law?

In other words, is there a way to let the people decide what is sound money, not a group of government bankers. Not a convoy of business gunships, mired in the Bay of Fiat, unable or unwilling to explore, fearing that the edge of world lay beyond the Pillars of Hercules.

Can this new revolution, transition us, without arms, without mobs in the streets — to a better financial reality? Or will pro-monopolistic, anti-capitalistic, pull peddling puds ground innovation under the wheels of corruption — once again?

I believe that cryptocurrencies offer the possibility of sound money. That, if governments are disallowed entry, crypto’s will innovate and help secure a better, sounder, more modern monetary reality. A bridge, if you will, to a better future.

But, this new technology will necessitate the changing-of-the-guard. The purse strings will need to be handed back to the people. Something, I fear that governments cannot and will not allow. Not in Communist China or in those lands beyond the oceans daring to fly that banner of freedom in the mean streets of controlled and planned economies.

From those who nurse from the udders of corruption, to those who devise the method of their eventual destruction, to admit their impotence, is heresy. Government fiat must survive, they implore. It is the only way for them to lead — to control.

However, the longer we hold the line. The longer we keep the regulators from mucking with the innovators, those geniuses of finance and math, the harder it will be for the bureaucrats to halt the process of monetary evolution.

Many governments, companies, professors, financial experts and so on, are leading the charge against the ever-growing popularity of this monetary/service revolution. A system that could replace money as we know it or fail completely.

And if the innovators fail in the current climate of monetary corruption of the highest order, it will be at the hands of those self-appointed representatives of our indefinable “common good.” Those muckrakers born of backroom shenanigans, fiat five-year plans, and a group disintegrative psychosis.

Let cryptocurrency fail or succeed on its own. Allow investors their mistakes. Arrest those who bilk and steal.

Some ICO’s will fail and some will succeed. We only know, that when killed-off with draconian regulations, they will never be. Never have the chance to grow at all, if buried by rules, red tape and bloated bureaucracies. Bureaucracies with feeding-tubes attached to each citizen, beholden to special interests who seek only to increase the size and number of such vile tubes. Tubes now becoming iron pipes, flowing faster. Draining the only value that might yet cure this diseased body politic.

I speak of cryptocurrencies, of course.

A Ripple CEO now supports regulations. Please show Ripple some tough love. Do what you think is best. Let them know that they are not a true crypto in the sense of that word. They are only a fiat conduit. A pump to help speed up the delivery of the poison that is killing the wealth of the world.

Who knows. Maybe these Ripple XRP’s will serve to undo the twisted monetary systems that it is attempting to lubricate. A quickening, of sorts, but not of the expected variety.

I can only hope.

Here is my commentary (audioblog) about the matter. I didn’t cuss too much and it’s a bit raw:

 

Your American Friend,

 

Jack Shorebird

 

Cardano (ADA): The Golden Hand?

Cardano (ADA): The Golden Hand?

Luck is when preparation meets opportunity. The hard part is recognizing the opportunity.


The Cardano opportunity is a risk.

Life…is a risk.

The news today…the news any day…the last few crypto-days…is mixed.

From a layman’s point of view – one who has made a few good calls – I think that the next great cryptocurrency opportunity is here. The early cryptocurrencies were the introductions, the experiments and the tests.

A lot of people have made a lot of money in this space since 2009. Some of these newly minted multimillionaires have used this opportunity to push Fintech further. To create a second generation of cryptocurrencies with smart contracts and added tokens. To allow others to use their blockchains for good or ill.

From Bitcoin to Ethereum. Public blockchains that allowed innovators to dream and make their dreams into reality. The reality, the regulators, pushing back, but not yet winning.

From Bytecoin (stay away) to Monero (use at your own risk). And we must not forget the private angle. Others in this new space felt that the current governments obstructed the development of this technology as they, the Darknet users, actively created systems to hide behind a wall of code. Or give the user the choice to secure his accounts or make them public.

The principal problem with the private angle, is that we the users, do not often know who created these coins. We have no customer service. The risk, therefore, is great. To state otherwise is to be oblivious or perhaps to take that risk in hopes of a great return.

Is there a third way, however? A third generation of cryptocurrency? Not a compromise, as I have postulated before, but a “realist” coin? One that exists and uses the regulations to its benefit, rather than subjecting itself to the laws of all nations? In other words, can Cardano (ADA) use the law of nations to its advantage, while enticing a new breed of users?

We live in the real world after all. We earn and save and spend our money on real things in real stores, where real people stuff our groceries in real bags. We use fiat money, by and large, to do this. And there are many advantages to using fiat, except for micropayments across borders. Cryptocurrency handles the latter much better. But cryptocurrency has other problems.

Although, I’m no supporter of the IMF (International Monetary Fund) its current director made some interesting remarks recently.

Christine Lagarde, Managing Director at the IMF, indicated in her speech recently, “…this is not about digital payments in existing currencies—through Paypal and other “e-money” providers such as Alipay in China, or M-Pesa in Kenya…”

What does that tell you? Aside from the fact that she said it? Is Lagarde sounding the alarm or is she helping to clear the way for the banking industry to adopt the blockchain technology? If so, what type of cryptocurrency would governments accept? After all, the governments are the banks.

In the US, the company with the cheapest product wins the government business – a lot. Yes, there are affirmative action quotas (reverse discrimination policies) to follow, but the product used, needs to be under budget – until later, when the corruption and incompetence is discovered and the whole project exceeds the projected budget, plus some.

Would PoW cryptocurrencies be used by governments? Unlimited budgets are things of the past. Yes, China and Russia can offer inexpensive power (electricity) to cryptocurrency miners, having built the power stations on the backs of their subjects (tax and spend), however, freer countries cannot often hide such corruption for long.

PoS cryptocurrencies might fit the bill, however. In fact, Ripple is fitting the bill nicely now. More and more businesses and banks are signing on. But Ripple is not really PoS, is it? It does not encourage people to save and earn interest, it only entices them the buy, hold and sell. Perhaps to use their system. It is no longer user-friendly – if it ever was. But it is a pre-mined animal for the current financial system. Centralized and existing in the regulatory environs – and earning money for its investors.

Back to Lagarde. She also said, “For now, virtual currencies…pose little or no challenge to the existing order of fiat currencies and central banks…[b]ecause they are too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable. Many are too opaque for regulators; and some have been hacked.” (Underlining emphasis mine.)

Volatility is a given with cryptocurrencies. They are not often pegged to a basket of goods or a fiat money supply. On the other hand, they are not – in theory – able to cause inflation.

Energy. There’s the big one. Bitcoin, for example, uses as much power as hundreds of thousands of homes, certainly. And there are worries, that continued unchecked, the blockchain beast might use as much electricity as entire countries.

That is a non-starter for whole countries, if they are constrained by objectivity and budgets. So, what is better? What kind of cryptocurrency would entice the average Joe, the high-power banker and, at the same time, dissuade governments from clamping down on the process? Where whole nations could participate?

It would need to be – IMO – a cryptocurrency (or more than one) with wide acceptance, ease of use, an international governance structure, economical, secure, and transparent under certain circumstances. (By that I mean, an objective set of published rules whereby the ‘coin’ would, under the circumstances outlined, provide identity information to third parties.)  Whatever else the cryptocurrency could add, given the needs and desires of the populace, would be up to them. Smart contracts. Machine to machine payments etc.

Naturally, the acceptable cryptocurrency would require scalability. In other words, be flexible enough to increase business in an efficient fashion.

Such a cryptocurrency, could become a new world reserve cryptocurrency, if it was not subject to the whims and laws of every separate bureaucracy – used a system of governance akin to Maritime Law – as has been suggested. It can be argued that Bitcoin is like this today.

This would be, as some have called it, the third stage in the evolution of cryptocurrency. And, perhaps, a stage in the re-development of a base or reserve monetary system, decentralized at its heart and beholden to its users, not its users’ users.

Efficient, secure, regulatable, sustainable and trusted, all based upon the original concepts of peer to peer networks. With the added benefit of creating a voluntary user base to extend the network.

Let’s face it, Bitcoin would be much faster if everyone connected and kept their computer on. But why waste energy? Why download the blockchain when cryptocurrencies like Cardano offer more efficient ways of participating – and obtaining PoS rewards?

The trick will be in the regulation. And how Cardano can manage what will certainly absorb much of their nest egg, that we the user must be willing to provide.

Can Cardano outpace Ripple and become a serious international player in short order?

Read between my lines.

 


The above should not be considered investment advice. It is solely the opinion of the author. The author who had DASH when it was wet behind the ears, Ethereum when the nerds were wrecking “DAO” havoc, Bitcoin too late and Aeon, at pennies on the dollar. Now it is the time for Cardano?


 

Cardano (ADA): Is Proof-of-Stake Unproven Tech?

Cardano (ADA): Is Proof-of-Stake Unproven Tech?

Updated November 20, 2017


Dear Cryptocurrency Enthusiasts,

Trust, trust, trust — or baloney?

In each other, we trust?

Trust, but verify…especially with cryptocurrency?

It seems that we have three developments occurring simultaneously, now — in the Fintech Crypto-World.

  1. Proof-of-Work (PoW) is moving to Proof-of-Stake (PoS).
  2. Public is moving to Private or “choice.”
  3. And governments are trying to regulate.

Did I tell you something you don’t know? I hope not.

PoW. It was the most trusted way to create and maintain a person-to-person (P2P) network. But what happened? Has the crypto-space evolved?

PoW has become labor intensive, energy hogging and increasingly centralized. Bitcoin, Ethereum, Litecoin etc. Ethereum is attempting to move to a PoS system or at least use some of its protocols. Really? Again, why?

Why was the PoS protocol developed in the first place? Peercoin, Blackcoin, Cloakcoin and others. Were there long term issues? Security disadvantages? They drew less power, were faster, but they were essentially a pre-mine. But they reward those who maintain balances – and help to secure the network, right? Reward with an ever growing supply of cryptos, unless that supply is fixed — which appears to be the plan for Cardano.

What were (are) the results of PoS? Marginal success. Can a new PoS protocol reverse that trend?

Peercoin, for example, had problems with their code early on. Their primary developer is anonymous. Cloakcoin has changed hands.

What was worse, these PoS coins were more vulnerable than PoW types – less secure. So, why is Ethereum attempting to move in that direction? Aside from the official reports, I mean?

Competition from Cardano?

We know Cardano was developed – at least in part – by a former Ethereum developer, turned Ethereum Classic developer/supporter. To, me, that smells of trust. That smells of new blood — underdog — PoS+ blood type.

But the underdog is only in name. Like Ripple, Cardano has removed the curtain to reveal that it too is willing, at some level, to cooperate with regulators. They are willing — and able — to compromise. If we look to Ripple, they are succeeding.

To roll back the blockchain, as Ethereum did, to stop one criminal – okay, one “advantage taker” – smacks of centralization. (See the DAO Incident.) At that juncture, no matter how benign a dictator, Ethereum lost its way. One cannot punish the whole, to catch one mistake.

So what stain does Cardano have? As a free market supporter, the stain is called compromise? Or is it realism.

In other words, Cardano is not seemingly attempting to create a separate cryptocurrency and/or protocol, as much as it is attempting to “get along” with the regulators. It wants to identify you, at least on one level. KYC — know your customer. The smart contract-currency platform that might be too smart for its own good.

And, in my mind, Cardano, unlike Ripple, wants you to participate. Game changer?

Ethereum Classic is “righting” the wrong of Ethereum. Still, the system – the protocol – is slow. It devours resources. Energy for mining. Power hungry.

So, what is the solution?

A PoS Ethereum, with new math: Cardano?

Here’s a recent opinion from Charlie Lee about PoS.

Now, we must decide. Do we trust the PoS? The pre-mine with a large chunk of coins held back for the “company.” Do we trust corporations? They act in their own interests, right? They must make a profit to survive, certainly. How much is enough?

And they are willing to share profits if we support the system?

Many cryptocurrencies are headed by corporations today. Mining warehouses keep many coins alive – corporations regulated by their respective governments. Of course, letting governments create cryptocurrencies will be a cluster-fork, of enormous proportions. But it’s heading that way today, in many countries.

Bitcoin’s reality is that it is managed by people with differing points of view, but they must come to a consensus to move forward. Hence the slow-to-change mentality. Is it outliving its usefulness? Some will tell you it has.

It seems that the move to privacy coins, created by unknown players, is an accident waiting to happen.  We need – IMO – the human factor. The “part” in the virtual machine that is not virtual. To service the humans who use the crypto. Or do we?

Privacy coins obscure their process, as to be non-auditable (or having a choice to audit), in a way that gives many the willies. Not because we want cash-like privacy, but because we wonder who else is using the protocol and why.

So, what can we say. Cash has no feelings. It’s just cash. True. But if you have the protocol to trace the bad actor and you don’t? What does that make you? An accomplice?

The one weakness in that cash-privacy crypto, one which you might hold on your flash-drive, is the customer service angle. If the currency “forks” and you didn’t update in time, what then? Get on Reddit and start complaining? Really?

Where is the “Complaint Department?”

Grandma likes to call people, right? The old school likes warm voices, emails to real organizations, faces to names. The old school lives and saves, on trust. Is Cardano that trust? The new Savings and Loan of Fintech Crypto?

And isn’t that what it’s all about? If we strip away the layers of protocols, unload the software, and just listen – who do you trust to keep your money? I’m not talking about playing the crypto-markets, drifting from one coin to the other, riding the emotion-horse. I mean, the bare-bones of it.

It is not the machines we trust, yet. It’s the people.

Isn’t that what it boils down to?

The fact that governments want to regulate may not be the best reason to flee into the “dark” coins. They will chase any entity that threatens the fiat empire. The darkness only eggs them on.

Regulations change because of force. What is the force of millions of cryptocurrency wallets, worldwide? It is a wave. A tidal wave.

Put your ship in the deep water.

A cryptocurrency that is backed (or less regulated by whole countries), will place pressure upon the bankers of old – the money-changers of the past. Especially, when it is trusted by people everywhere.

How would the empires of old stop that?

Can they, ICANN?

I don’t know if Cardano is the answer, but maybe they are onto something.


 

Cardano (ADA): A New Cryptocurrency and More…

Cardano (ADA): A New Cryptocurrency and More…

Updated November 28, 2017


Dear Readers,

Is your Cardano ship about ready to sail…without you?

Could we be looking at the promised “Proof-of-Stake” cryptocurrency — finally? Something as good as or better than Ethereum, with more concise math, faster, cheaper and safer?

It’s been in the works for a few years, but finally — it’s on Bittrex.

Is Cardano the next in line to make it big?

(For the record, when I posted this, ADA’s were about 2 cents each.)

(Music, compliments of Zapsplat.com)


Begin your journey here:

Cardano:

Input Output:

Emurgo:

Market Data:

Wallet:

YouTube:

Technical:

Exchanges:

Warning:

At present, over 99% of all ADA trading is occurs on Bittrex. This is not an ideal situation.

 

If you need to do a little homework first, try this Kindle ebook.

Sincerely,

 

Jack Shorebird

 

P.S. This is not investment advice. Please check out the available videos and literature. Happy research!

 

Zcash v. Monero: The Friday Night Fights

Zcash v. Monero: The Friday Night Fights

Hello Crypto Dudes and Dudettes,

This is just a nightcap, a final bit of juice for the day.

Recent internet chatter pits Zcash against Monero. It seems that some Zcash supporters are citing or linking to an older evaluation of Monero. One that is not so glowing. Hints that Monero is/was traceable.

Is it? The question seems to hang like bad meat in a broken freezer – in South Africa.

Other allegations imply that Monero is Mickey Mouse, essentially.

Apparently, Edward Snowden has weighed in. Zcash it is.

The peanut gallery is crying foul. Snowden is a shill, a paid endorser…really?

But shouldn’t you at least consider a private cryptocurrency? Bitcoin is traceable. Why wait?

So, what’s in your wallet? Governments already know. And some hackers.

Choose wisely.

And if top academics did help to develop Zcash, who cares if they did not “implement” the actual coin?

That’s one lame argument.

If a rocket scientist shows you how it’s done and you build a brand new shiny rocket, it’s still a rocket. Even if you used old Nazi science – old V2 methods – for some of your “code.” (I’m hinting at the use of bitcoin code within Zcash.)

We know that bitcoin works. We have never seen Bytecoin take off like that. (Note : the Bytecoin link may not work.)

Monero has moved onto higher ground – as – I might say – it’s a “people’s coin.” Grass roots.

Zcash is beholden to their sponsors, right?

But that does not mean we cannot or should not profit from those who back Zcash and therefore “pump” the coin.

The continued success of Zcash – a very volatile coin – is still in the weeds. But judging by bitcoin’s success, is Zcash the best of both worlds? Private or public? You can show and tell or…not, right?

To defend Monero – that it too is based on the works of academia – is disingenuous.

We know those who developed the Zcash/Zerocash process. We cannot verify the existence of a single coder or developer of CryptoNote/CryptoNight – Bytecoin – not one.

And yes, I realize that we do not know Satoshi Nakamoto or his counterpart in the CryptoNote universe – Nicolas van Saberhagen.

That’s not my point.

This article helps to clear the air a bit.

Monero/Aeon, remain the underdog(s) – for now – as far as I’m concerned. And lately Aeon has spiked. We’ll see if it holds.

Certainly, Monero and Aeon are better at holding the line than Zcash. That’s a tell.

Apparently, Edward Snowden doesn’t have time to check the crypto-markets to verify this fact.

That’s all for now.

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