Tag Archives: Litecoin LTC

Google’s Great Cryptocurrency-Blockchain “Delist”


Are you — as a cryptocurrency ‘hodler’ — ready for Cryptogeddon? The greatest ‘delist’ ever performed by a single company? Ready, for billions of dollars in value to be flushed down the internet drain?

Well, hold onto you crypto’s — or not — because the party is starting all over again…thanks to a dominant search engine.

Most people, I’ll venture, could care less if Google, like Facebook, limits advertisers and their ability to search for bitcoin, Ethereum, Litecoin or even Ripple XRP or other dirty things.

But, when Google marries the Thought Police, it’s only a matter of time before the real ones show up.

Google is free to use right? You don’t pay for it. So, who cares if by June of 2018, crypto is dead?

But, it begs the question: where will Google stop? What website, blog, organization, racist comment, naughty picture, fake news, iffy diet book, comedic review, or cat video will be censored next? Seriously, who cares if a cat freaks out?

This is just the beginning. So, in the grand tradition of Big Brother, why not just go for it now?

I suggest Google starts with a blank screen. No history lesson, art work, music, videos – just a dull gray screen.

And I then ask or type my question: “What the hell is cryptocurrency? And follow-up with, “screw Google.”

That question is then sent to the NSA, where it is cataloged, verified, vilified, and disapproved. A copy is then forwarded to my employer, the SEC, the IRS, the FBI, my wife, her mother, the Chinese Government, my kids and a local group of “Thugs against Thugs.”

Then my computer explodes, my house burns down, my dog bites me and a tree falls on my car. A few years later the post office delivers a letter from the Governor stating that I’m under investigation for the crime of “Thinking for Myself!” It also requests back taxes for the new retroactive cryptocurrency pretax or one major organ to be ‘donated’ to the Congressman of my choice.

And we’ve all been there. We google a topic, only to be served ads, not in the margins, but as a direct result of our search – in our collective faces. No, I don’t want vitamins. No, I don’t wear dresses. And how did you know I wanted a cookie? Did the NSA tell you? Alexa? That bitch, she always laughing these days.

Which is okay if you are shopping. Not so fun if you are researching. And there are other search engines that don’t garbage up your user experience like Google does. But none have the reach. Google is that 700 lb. gorilla. But he’s been sitting much too long and he’s getting fat and sloppy and he just shat upon thy rug.

Google…has about 74%…

Google, if you check, has about 74% of the international search engine market. Bing comes in second – maybe at 5 to 8%, depending upon which article you believe. I mean, these figures are only estimates, right? All the rest are far below that, however.

But nothing lasts forever. If you do not give the people what they want, you will – eventually (in a free market) – lose.

Maybe in North Korea, Iran, the New Union of Soviet Socialist Republics, and China – censored search engines and closed Internets are all the rage. But in less unfree nations, people will become a bit friskier.

Google’s bill is paid by advertisers. And Google’s advertising policies are influenced by its major shareholders, i.e., the voters. We get that.

The shareholders own stock, the sales of which are regulated by the U.S Government, i.e., the straw bosses. A no brainer.

The government, of course, issues the money that people use to purchase stocks in the first place, i.e., he who owns the fiat money makes all the rules. Gold is passé.

You see the problem then. We are screwed.

Google is in a tough spot regarding cryptocurrencies. They can be investigated by governments for advertising a competitive monetary system. No such competition is allowed – at least in the U.S. We have “In God We Trust” money now. Heavenly regulated, infused with special powers – pumped out of our banks, at the discretion of the Fed. (That’s where they keep the Monopoly Game Board and the booze.)

Google can be sued by happy lawyers, for advertising investment vehicles that are not approved by governments. Remember: regulation. You must first bow, kiss the Pope’s ring, then pray that you didn’t slobber on his dress.

You are not allowed to make financial decisions on your own. You must (should) purchase “investments” from trained professionals and not “mine” your own cryptocurrency. Who the hell do you think you are anyway?

Free and unfettered markets do not exist in the U.S. It’s a pay to play system – a mixed bag at best. Keep your head down. Work hard, grovel, pay your taxes and die – and then pay more taxes, as a zombie.

And, whole communist dictatorships, such as China, can’t stand cryptocurrencies anyway. Google would lose business in Beijing, Hong Kong and… potentially, AMC Theaters.

China owns AMC now. That’s why I’m not going to AMC to watch movies any longer. Don’t want to enrich dictators. Does “AMC” mean the “Authoritarian Movie Company” now?

The fact that Chinese political prisoners are involuntarily donating their organs also bothers me. If I visited China, would I be placed on the “involuntary organ donor” list? I’m not going to find out.

For the same reason, many of us will voluntarily not use Google any longer. We have dumped Facebook. Why make either of them richer, if they have no spine? The thing is, do any of us have spines?

So, as we approach June of 2018, a reasonable person would think that cryptocurrencies are about to take a nose dive.

Or…will the ones that capitulated early on, survive and conquer? Like Ripple? Didn’t they start dating the banks early on? Then coddled up to the regulators? Isn’t Hedera Hashgraph (SAFT) taking a similar road? Cardano ADA?

Or…will Google fall, as us naughty searchers go elsewhere? Already, I’m seeing more and more readers of my blog bouncing in from other search engines.

Welcome, wanderers from the non-Google worlds. I hope your visit was not unpleasant.

Tell, me – have you found greener pastures?


 

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Did February 2018 Mark a Cryptocurrency and Blockchain Market Reset?


Reset - Copy

Dear Readers,

Charts.

They’re great, right?

Not always, but in a few “lines” we can really pick up a lot. Not so with words.

So here is my first chart of the day. It plots the market capitalization of the top five (current) cryptocurrencies from January 1, 2018 to February 14, 2018.

It helps you keep things in perspective.


T5


What do you notice, besides all the ups and downs and such? (Above.)

Hint. Look at the last dip. About February 6, 2018.

What do you see?

A bit closer now.


T6


Is this a market “reset” of some sort?

If not, it is interesting how the top three are nearly equidistant now.

In any event, if you peruse the upper chart, you will see which “coin” seemed to bounce from the resets very quickly.

I wonder if history will repeat?

 

–JGS

 

Data Source: CoinMarketCap.com

Three Predictions for Cryptocurrencies in 2018: “SPACE”

What’s Next?


Many people ask where cryptocurrency is heading. I thought I’d take a moment here and delve into that. A bit of forward conjecture.

Why?

Because I can’t seem to find it all in one place. Just bits and pieces of negative and positive elements. So, I jammed a few of them in here. And it’s all my opinion, of course. Take it with a smidgen of rock salt.


Predictions:


1. The CCE’s will Official-ize and DCE’s will not matter

Centralized Cryptocurrency Exchanges (CCE’s) may not survive in their current form. The year 2018, in the United States, will test their mettle.

Why? Tax laws, crypto-friendly countries, atomic swaps, and:

Decentralized Cryptocurrency Exchanges (DCE’s).

In a recent interview by an unnamed person, as not to disparage the name of a particular CCE, it was learned that things like atomic swaps and/or functional DCE’s are years into the future. That is, according to the CEO of this particular CCE. That centralized and regulated exchanges are better suited for a servile public and institutional investors. Regulation is acceptable.

Bull. We have grown up now. Training wheels are not handcuffs.

Some CCE’s even pride themselves for their transparency. They put a face to their company. They stand upright and walk on two legs and pay their taxes as all good citizens should. Even if the monetary system is rotten to the core. Don’t you dare try to improve it.

The anti-government stance seems to worry the CCE’s. Just be nice and trade, they ask. We are all in the same sinking boat after all – the CEO says from the crow’s nest — as the waters rush in.

But let’s face it. If a CCE decides to go transparent, it has no choice. The business model they chose, for good or ill, requires that they follow and not lead, at least in the U.S. In the U.S., CCE’s must create and maintain a KYC, AML compliant trading platform or face prosecution. It’s that simple. No submarines allowed. Surface ships only, please. Even if we lose the war.

Add to this CCE mix, the recent 2018 U.S. tax law clarifications regarding cryptocurrency trading and one can speculate as to the true motives behind a certain unnamed CCE’s recent announcement that they are moving in the direction of U.S. Dollar trading – for most users. And that they are apparently seeking to offer actual securities (stocks and bonds) in the future.

Why? They are losing money – or soon will be. They need you to buy and buy now. The sooner the better. Use lots of cash. And, as the tax laws kill the cryptosphere in the U.S., the CCE’s will “evolve.” No, Mr. CCE, you will capitulate. You will spring backwards, to the safety of the fiat. And there, you will die Mr. CCE, for lack of verve and vision.

And that leads into the DCE’s. In their current incarnation, they are worthless or nearly so. Dead on arrival. You must pledge a bit of expensive bitcoin, choose a third party to settle disputes and wait forever. DCE’s are slow to improve, unprofessional, not user-friendly and untrusted.

Perhaps the new impetus will be the desire for free trade, unhindered by the regulations and onerous tax laws.

But we need something more.


2. The U.S. New Tax Laws will be Ineffective

Translation: Cryptocurrency trading is slowing down. U.S. customers especially, are not trading like they used to, because they know that each time they do so, they can no longer claim a “like-kind” exchange. In other words, the tax hit is helping to drive cryptocurrency prices lower. It is also killing the centralized exchanges – which could be a good thing.

U.S. based CCE’s must now shift into another gear if they want to stay in business. Aside from the threat of atomic swaps and DCE’s, the fact that trading will continue to slow because of tax laws, means that the CCE’s will begin to consolidate and/or offer more services.

This is already happening. It’s called survival mode. The hangover after the party. Luckily, there is still plenty of booze left, but it’s cheap booze now. Bitcoin is no longer as “top shelf” as it once was. Bitcoin Cash continues to hammer away.

These new tax laws, reduced trading and the bubble-popping amusement ride, is soaking value from the CCE’s, at hyper-speed. Where once, the cryptos flowed like champagne into the golden baths of the CCE’s, it now dribbles in as diluted, headache-inducing, sparkling wine, from the Left Coast (California).

As a result, expect CCE membership fees to emerge, large balance requirements, the wooing of institutional investors with unpublished deals, and the farming-out of the expensive retail arms to other companies, especially where labor is cheap. Expect more ads.

The net effect? The little guy will be left holding cryptocurrency he cannot trade, without first signing his life away. Should the little guy hold private coins, he will be suspect. Where will any freedom-seeking individual go?

This is why I feel that the new U.S. Tax Laws will be ineffective. They will make a show of it, force the crypto lovers underground, arrest a few, let the problem fester, and in the end, they will wake up with a new money. It is simply a matter of time. Even the dinosaurs died out.

Sophisticated traders and gamblers might hire third-party fictions to hold their crypto, but the vast majority will not be able to entertain such extravagant schemes. Tax loopholes are for the affluent.


3.The Rise of “SPACE”

If you live under a rock, you’ve never heard of a DCE. That’s fine. Maybe atomic swaps are your thing. Or even Atomic Coin, which is another altcoin. But I don’t think you’ve heard about this next idea. It’s not about another blockchain.

Spontaneous Private Atomic Cryptocurrency Exchange(s)? Or: S.P.A.C.E.

It does not yet exist.

I predict we will see the beginnings of SPACE in 2018. It will be a combination of a CCE, DCE, Atomic Swaps, and best of all, it will be anonymous and untraceable. Imagine a private-Amazon with its own Monero-like cash that spends everywhere, instantly. Making fiat superfluous. (I’m an optimist.) Where you can store your crypto in the new cloud and access it where ever SPACE is used.

Already, we are seeing hints of this. Cloakcoin. Litecoin in talks with Monero? Some countries creating their own internet, with different protocols. Sharding altcoins, like MaidSafeCoin, just to name a few.

They all seem to miss the mark however. They all must ground themselves to the given ICANN.

What if they didn’t?

What if SPACE was created as needed? You initiate a private connection to a flexible network where there are no third parties. You buy, sell or trade instantly. Your choice of payment (coin) is saved, privately. And you disconnect. There would be no fees, no records, save your own and no limits. Everything would be automatic, anonymous, user-friendly and secure. Once the developers released such a network into the wild, it would, like bitcoin, be maintained in a similar manner.

Therefore, the next big thing, at least in the Cryptosphere, will be way out there. Beyond the current internet completely. A quantum leap and a human achievement that could set the stage for the next leap forward.

That is the idea, isn’t it?

Will you be ready for SPACE?

–JGS


 

Bitcoin: The Immovable Object?

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

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

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

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

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

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

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

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

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

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

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

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

What does this mean?

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

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

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

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

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

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

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


jgs

 

 

Cardano (ADA) Drifting Lower


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?

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?

 

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!