Tag Archives: Money

Bytecoin is still kicking…


Just a quickie, before you throw yourself under the bus…

Today, I received a response to one of my blogs about Bytecoin. It was a link to video, an audio actually, of an interview with the mysterious Jenny Goldberg. Goldberg is the new Community Manager, if we can accept this — of Bytecoin.

(Hi, Jenny.)

The connection seemed to skip or warble at times and Jenny herself, to an American, had a strange accent. I’m no ‘world traveler’ and I could not place it.

I also checked Reddit and the video was also posted there.

As some of you may recall, I often blog about various coins, especially the more anonymous ones, because I think at some point, many in the cryptosphere will actually desire a more secure and less public coin. Meaning, a cryptocurrency that is usable by anyone but not visible to everyone all the time — like bitcoin.

It’s a move simply waiting to happen. The developers have been gearing up for it.

In the mean time, there will be a large number of people who will desire the services of an anonymous coin network now. They come in several flavors of dishonest, but the bulk I feel, will be derived from the honest. Those simply trying to find a way to move and/or store value (money) in a place where others, including governments, cannot get to it.

Think on that for a moment. Let me name a few places. China. Russia. North Korea. The United States of Taxes. Cuba. Greece. Cyprus. Venezuela. Planet Earth.

The thing is, I don’t want people to get screwed. That’s why this video I mentioned is important to hear. First, do a little homework. Learn about Bytecoin. Determine for yourself, if Monero is simply trying bash a good system. And I have spoken highly of Monero in the past. Now I’m more neutral.

Secondly, make your own educated decision. Is Bytecoin good to use? Can you send value over the internet in a secure fashion, with Bytecoin. The quick answer is yes, you can. The system does work, but be fast about it. Transfer and get out of it as fast as possible — if you must use it at all.

You want to retain as much value as possible, after all. Let someone else take the risk of “holding” any cryptocurrency. It’s like holding a greased pig on crack cocaine, while drinking a beer and talking to your wife about painting the downstairs — again. It is nearly stupid, for now. Even bitcoin holders might find themselves in a world of poop, if the market decides that crypto is “old hat.”

I’m not saying to stop making money. Go for it. Spin that dial and laugh. I am. For now. Just know that the next idea is just around that dark intersection — where the bus is coming.

And listen to regular people. Too many times we gravitate to the news fed to us. I even cite them in my posts. This magazine or that financial expert. Know that in this vein, the blood that runs herein is not necessarily blue. The value if these things is transitory as hell. And the last time I looked, Satan’s Pit of Boiling Mud (think Yellowstone National Park) is still looking for permanent tourists.

And for the record, I’m curious as hell about NAVCOIN these days.

Have a good day.

Jack Shorebird

 

 

 

 

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Is Bitcoin in a Bubble?


The Big Question:

This seems to be the question of the day, if not the decade.

Can cryptocurrencies replace money or are they just another bubble?

The answers vary.

To the optimist, but not necessarily the realist, bitcoin is already money. So, yes, not only will it replace all government fiat cash, but it will free the masses from the tyranny of the state. It will never “bubble” and the way it’s designed, it will only become more valuable with time. Freedom for all forever and all the drugs you want. Gold? It’s a quaint idea. Caveman monetary policy, complete with pretty rocks.

Okay, maybe that was a bit overboard.

To the pessimist, no. Bitcoin is a Ponzi scheme. It is a well-marketed fiat asset trick. Don’t fall for it. It will eventually bubble, crash and burn. In the meantime, it will benefit the criminal element. It must go and/or be regulated as soon as possible. The state should always be the final arbiter of monetary policy, after all.

To the middle-of-the-road folks? Bitcoin can exist along side the current fiat money systems. It should work within the current frameworks of nationalized  monies, however. It can improve things from there. We can create a sound money standard after we iron out all of the regulatory kinks within the new cryptocurrency technology.

Unfortunately, our governments, as they are now designed, will not be able to survive on a diet of sound money and that is why fiat money was created in the first place. To escape the bonds of reality with a legal fiction, all the while, kicking the inflation can down the road.

But why not stop inflation by connecting bitcoin with gold? Make each one represent a certain amount of some rare earth metal? Why not couple gold and cryptocurrency, privately? Because the political environment is fiscally destructive. That’s why.

We know that our centrally planned economies will not allow citizens to derail the inflation machine which keeps our governments in control. It is only when the puppeteers begin to loose control of inflation that the money strings of government unravel, resulting in a revolution against the “evils of money.” Such revolutions do not always end up with a population of free citizens, however.

Cryptocurrency Negatives:

So, let us be cruel to ourselves. Take it on the chin, like a good cryptocurrency enthusiast should.

What is often cited as the main reason that bitcoin (or any cryptocurrency) can never serve as money? There are many reasons actually and here are a few:

  • Unstable Value
  • Trust
  • Fiat
  • Acceptance
  • Taxation
  • Bubble

Now, before we go off spouting all the great things about cryptocurrency, lets define money. I mean, what is this paper stuff we carry in out wallets and what are those electronically recorded digits in our banks? Better yet, let’s just define a good money.

Money:

  • A tool of humans
  • Used when high level of productivity is reached
  • Desire for long-range control over their lives
  • A tool of saving for delayed consumption and later production
  • A material commodity which is:
    • imperishable
    • rare
    • homogeneous
    • easily stored
    • not subject to wide fluctuations of value
    • always in demand among those you trade with

Source: Ayn Rand Lexicon

Few people ever go this deep, however. The dollar, euro, yen, dinar, peso, franc, pound, lira, rupee, krone, zloty, rand, and the shekel are, for all intents, legal notes. It’s money for the masses. Buts it’s not real money. It’s fiat money, which represents nothing but trust. I trust you, do you trust me? Besides, what choice do we have, right? It’s legal tender. It’s easier to use than chunks of silver, which the government wants to value in fiat anyway.

You can, at least in the US, pay your taxes with fiat currency and most of us trust that the currency is money.

We also know everything is becoming more expensive, but few of realize that the root cause of inflation is not the weather, the wealthy or our enemies. It’s simple math. The more fiat notes we print or e-print, the less valuable they become. This holds true for some cryptocurrencies as well. You simply divide the value, in fiat currency, by the current number of altcoins. This gives you a rough estimate of the fiat value of a particular cryptocurrency, at a given moment in time.

So, it’s easier to understand values with cryptocurrencies, since their creation is usually straight forward. There is no Federal Reserve to manipulate alleged M1, M2 and so on. There are no banks to create endless supplies of fiat. The only inflation regulators in bitcoin, for example, is its code base. It is currently programmed to create a finite number of BTC’s. It’s not manipulated to screw the masses, but to retain its spending value.

Paper money used to represent or hold title to gold or silver. That was why it worked. Why it functioned. Once the paper no longer held title to some form of property, it became fiat. It became dysfunctional. At that point, almost always, economies begin their decline. Some economies decline faster than others of course.

Perhaps if our governments set hard long-term limits on fiat numbers, then our fiat monies might stand a chance. But there are no such limits.

High Hopes:

Many hoped that bitcoin could save our failing economies, tame our ever growing governments, and usher in some new global paradigm of wealth, but not without effort.  If this is your thinking, you are guilty of being overly optimistic and just maybe, a bit naive. Don’t worry, I’m rooting for you because I’m a near-convert myself.

What holds us back from becoming “one with the crypto?” History. It is full of examples of ledger based monetary systems that ultimately failed. It is replete with evidence that all of the fiat based systems failed as well. And the gold-backed systems — failed, but after the decoupling of functional money (paper notes) from the metals. The governments enforced these failures, often by confiscating the one form of money that has never become valueless: gold.

So we have to ask ourselves why have all monetary systems failed throughout history? Now, I’m not asserting that gold became worthless–ever. Fiats did. Ledger systems were scrapped or forced out. Seashells were abandoned. But not a single monetary system transcended all governments, in any cohesive fashion. Bitcoin, though an asset, does.

Asked another way. Aside from gold and silver being an asset for thousands of years, what monetary system, fiat or otherwise, has ever existed beyond the constructive control of all governments, simultaneously?

Bitcoin as an Asset:

The latest thinking is that bitcoin (cryptocurrency) is not money, but acts as like an asset. That is Peter Schiff’s thinking. Schiff works with Goldmoney Inc., based in Canada and he lives in Puerto Rico. Goldmoney(tm) is a company that allows you to spend gold, via a debit card, in many countries, for a small fee. You can also store gold in various vaults around the word. And there are other benefits.

You can find out about more about Schiff’s views easily. He has his a radio show, owns several companies, is an author, but to sum up his financial views I would offer this:

He has repeatedly held bullish views on long-term investments in foreign stocks and currencies in countries with sound fiscal and monetary policies, as well as global commodities including physical precious metals and has expressed bearish views on the US economy and the US dollar.

Source: Wikipedia

So what is an asset?

An asset is anything of value that can be converted into cash.

Source: Investopedia

It’s a bit more complicated than this, but for the sake of argument, all cryptocurrencies are assets, since conversions to some other form of trusted money is the fundamental purpose to both buy and hold bitcoins. I mean, that is the allegation, right? Moreover, as Schiff asserts, companies that accept bitcoin in payment for services or products, ultimately convert it to either fiat currency or some other more trusted asset. Sure they do. After all, what real choice do they have? None.

In other words, the companies that will accept your bitcoins direclty just want to sell you stuff. Of course they do and they are held to the regulations requiring them to report their earnings in a nationalized fiat currency format. A government euro. A dollar. One wonders what would happen if companies and citizens were not required to convert to government fiat money? If they were actually free to use the asset of their choosing for all debts, public and private.

But we are not free in this sense. Not completely.

You Must Comply:

Are we to then shrug and comply? I don’t think so. The future is not made by those in the halls of government. That is not the purpose of government. They are present simply to protect and serve the people. They are peace keepers, not currency makers. Currency and money should be denationalized anyway. Things like bitcoin serve as a reminder of who should be in charge. Even if it fails. Even if it is a bubble.

Under the current circumstances, bitcoin, as asserted by Peter Schiff, is untraceable. This, I’m afraid is close, but not the complete cigar. All bitcoin transactions are public. You can see them zip around the network, but they can be obfuscated for privacy and criminal reasons. And your name is not attached to your account. Other cryptocurrencies are much better at retaining your privacy.

A Common Criminal:

Naturally, Schiff keys in on the criminal aspect. We’ve all heard it. A terrorist or crook will send his bitcoin, instead of carrying cash. At some point the bitcoin will be converted into cash to buy or sell something illegal.

One of the main problems with this criminal tactic are the fluctuations in bitcoin prices. The criminal might have a set price for his product and bitcoin is terrible for that reason. Perhaps it would be better to use what is called Tether ™. It’s a bank backed cryptocurrency that is almost pegged at the US dollar. Better yet, use paper dollars or digital fiats. That’s the routine.

I used to work in criminal justice field, just a few years ago. We rarely came across evidence of cryptocurrency use. Maybe it’s more prevalent now. What we did come across were stolen credit cards, emailed cash, fiat bill, drugs, debit card numbers and so on. Criminals wanted dollars just as fast as they could get them. Not gold or silver coins, but paper fiats. They used the banking system and filed false IRS refunds (very lucrative since the IRS does a terrible job of policing their own refund system) as a way to easily subvert the antiquated, government regulated, fiat monetary system.

This is not to say that cryptocurrency is immune to criminal exploitation, but cash is king — by law. And even criminals love to exploit that law. Some even print their own bills. This is next to impossible with bitcoin.

Bubbles:

The comparison of cryptocurrencies to the Dot-com bubble is also interesting, but old. The idea that investing in cryptocurrency is similar to a fad or is speculative, is certainly a strong argument, however. More and more people are becoming aware of the technology and as a result, more money is flowing in. Is this a new opportunity for those who are already versed in their use and speculation? Sure it is. The first comers are on top of that pyramid, right? But can’t this also be said of a new stock? The more people buy the faster the value of the stock increases, right?

One must realize, however, that as cryptocurrencies become more and more popular, they become more and more risky. They are not stocks. There are few barriers to entry and trades are nearly instant. There are few restrictions. You are free to lose and gain and panic. At least with stocks, you have a broker who earns very high commissions by comparison, and you can execute trades reasonably quickly, in most cases. Oh, and you have no privacy. Every transaction is logged for tax and regulatory purposes, to ensure that you are not being cheated. That never happens…

This new injection of funds into the cryptosphere, ostensibly from a broader base — regular people — and not simply from the brokerage houses that fueled the Dot-coms, serves to magnify the potential bubble. This is a given. If such a bubble bursts, the fallout could eclipse a standard market collapse…in the future. Not right now though. Which is why the heat is not all that hot.

Currently, the amount of money in the cryptocurrency system is peanuts compared to the banking sector. Sure, lawsuits and investigations happened after the Dot-coms, the housing bubble — after any number of market implosions. Bailouts are always an option for government to soften the blow of poor investment decisions. But when banks collapse, governments step in and the insurers pay up. Then the arrests come. Fines and Senate Hearings, when the circus comes to town.

Brokerage houses are known entities. The mortgage companies and banks are all around us. If bitcoin fails, the loss is real. It will hurt millions, but in the scheme of things, it will be very small. Currently, if all the cryptocurrencies listed on coinmarketcap here went to zero overnight, it would only be half as bad as the Washington Mutual insolvency in 2008. One bank compared to over 1000 cryptocurrencies.

Diversification:

Diversification may not help. One might be safer with a mutual fund or an ETF but not a cryptocurrency. Why? Because there are few, what I will call base-cryptocurrencies, bitcoin being one. When bitcoin drops in value, nearly all cryptocurrencies lose value. So, loses are often magnified. When bitcoin recovers, so do the others. Tether cryptocurrency is one exception. It usually hovers around one US dollar in value, but it has little upside. Conversely, if say Ripple (tm) devalues, bitcoin may not.

The tie-in with bitcoin and all other cryptocurrencies happens because it was a first comer and trusted. If you want other cryptocurrencies you will often need to trade for them using your bitcoin. If you want to convert back to fiat, it is often best to use bitcoin. This is changing, however. Other coins are slowly earning a type of base-currency status.

Anti-Money:

The Fallout:

What do you suspect will happen to the hundreds of international cryptocurrency market exchanges, when (and if) the bubble bursts? Do we even know where they are? How about the US based exchanges? Will their doors be closed, their assets frozen? Will your bitcoins be stuck in Europe or Asia? Will you keep your BTC at home on your hard-drive or some other device. Will cryptocurrency developers in the US then be shuffled off to prison?

How about the giant bitcoin mining farms in China and the world over? Shut off? Scrapped? Bitcoins Confiscated? What about the cryptocurrencies that do not use the ‘farms?’ The ones like Peercoin ™, which is essentially PC based?

What of the decentralized cryptocurrency exchanges that exist only between you an unknown parties over the internet? Will these applications be shut down and their unknown creators sought?

The fact that Amazon ™ lost 90% of it’s stock value over as many years, as Schiff indicated, is his example of what can happen to bitcoin. The nearly constant ICO’s (Initial Coin Offerings), the new cryptocurrencies popping up like so much graffiti, will not survive, even if they use the latest blockchain technology or some variant of it. There will be a saturation point, no doubt. Already, there is talk that if you are in “blockchain” (your company invests or develops this type of new tech) you don’t make any money.

Some companies can exist in the red for years, but at some point they must turn a profit or fail. The only other option is to ask for a loan. In any event, even Amazon ™ has not failed, but it has real products as well as software. (Bitcoin is software. An intangible asset.)

The Beginning of the End?

Flipping houses before the market imploded was all the rage before 2007. It still happens today, in Florida, where I live, but not nearly at the pace of a decade earlier. When friends quit their jobs back then, bought huge homes, new cars and lived the life, only to be financially destroyed later, it was rough. The house flippers paid the price. After the building boom things slowed and housing prices dropped. We can argue all day about how and why the crisis began. One thing is certain, however, irrational exuberance was the norm.

Is that beginning to happen with cryptocurrencies now? In a sense, flipping cryptocurrencies doesn’t really happen. You can’t buy one, improve it, unless you are the developer, sell it and walk away. You can however, buy one at the bottom, when it’s cheap, then trade it for bitcoin or Tether, when it increases in value. Unfortunately, the tax headaches in some countries makes this type of arbitrage unprofitable. If you ignore the taxes, you are chancing fines or worse.

But what of the P/E Ration? I mean, we can calculate the price to earnings ratio of a stock, but how would you do that with bitcoin? Can we ever know when and if it is overvalued? We can see when underlying government fiat money is devaluing by comparing it to something like gold. When more fiat buys less gold we have inflation or more correctly, currency devaluation. When less bitcoin buys more fiat dollars, what is occurring? Is bitcoin becoming more popular or is it acting like gold? Is it becoming like a peoples’ barometer of their own fiat money — worldwide?

The Aftermath?

After this cryptocurrency bubble bursts, if it does, what might remain? Cryptocurrencies which offer a type of service, like Ethereum ™? Ones that offer fiat trading via third parties, and other services, like Stellar ™? Newer models, such as Iota ™ or Neo ™? It’s your guess.

Worse case? Your country outlaws innovation or co-ops it, then slowly destroys it.

The best case scenario, for now? Bitcoin keeps growing and more nationalized fiat  currencies fail. The cryptosphere becomes indispensable, trusted by people everywhere, and nations begin to compete by adopting sound monetary policies.

In the meantime, don’t fall for the hype. Do your homework if you are curious about cryptocurrencies.

And a parting thought. At some point, technology will be able to create physical items upon demand. If we are then able to create gold by recombining atoms and molecules, an abundant resource nearly everywhere where we look, on the cheap, how will we then design a voluntary, sound monetary system?

 

Good Day,

Jack Shorebird.


 

 

Where there is smoke there is Iota?


An open letter to Cryptocurrency fans, that is not investment advice. Please speak to your parents before you plop down your hard won lunch money on crypto.

Where there is smoke there is Iota?

For the crypto-enthusiast Iota is nothing new. It’s another cryptocurrency, albeit, one with great new tech, we are advised. Some call it the Bitcoin Killer. A new type of coin altogether, with a blockchain and a “tangle” and a new way of reaching consensus — to validate transactions. It’ll reach a ten billion market cap in no time, some say.

I’m no developer. Not a programmer. I knew a little Basic and Fortran in the deep dark past. But I have spent many man-hour-years using the various crpytocurrency wallets, hardware miners, exchanges, services and so on. I’ve learned a lot, from losing a lot and gaining a little. I tried to keep up with all the news, ICO’s, premine scams, discussions and government blow back.

So, as a layman, which I think many a crpyto-enthusiast is or was or will be, I like to give my two cents and in the process make a few cents in ad money when you read this — and hopefully, as a noob, maybe save yourself a few bucks and harsh words from your wife when she asks you why you dumped all of her vacation cash into crypto. (Yep, you’re in trouble now.)

I used to get right in there with all the bloggers or Redditors — and I still do — and say how great this coin or that idea seemed to be. I had no intention of pumping, but if I felt good about the coin, I’d say it. If I felt bad, I’d sell, then say it — nicely at first. To hint at others that maybe this coin was not so great, and here’s why. If I read about a particular coin, saw that its website was clunky, dead, had a lot of spelling errors (with some exceptions here), looked cheesy, I’d not even invest.

Another thing is the Bitcointalk.org page. If the coin’s page was well thought out, clean, understandable, with a community of serious people, so much the better.  If it’s disorganized, errors are abundant or if the developer’s comments are abrasive, over the top and ridiculous, then I ditched the coin. And yes I know that many great minds are jerks on the outside. If so, then they’d best get a partner to smooth out the people wrinkles. That goes for broad based appeals to the general public and also getting the German government, for example, on board. In a recent Iota video, such a process was discussed. Grants from Uncle Germany? Doesn’t make me feel good. When you obtain grants, you gather strings.

And then, after the sales pitch, citing the great tangled tech, a very detailed Reddit Page, new tests are announced. Tests? Yes, I said tests. More tests. Why? Well, things need fixing. But don’t worry, if you can download a large file, a new wallet, if the repository is not too busy, install it and follow basic instructions (not easily located) you will be just fine. Why might you need to reinstall a wallet? Because of the upgrades. They are making things better for you, of course. They are going to have the machines talk to each other and probably take over the world. Not really. It’s just to speed things up, like for paying automobile tolls in Germany. I guess they don’t have Sunpass.

So, you realized you have the Iota web wallet, during these tests. Well, you made a mistake. You need that new download. So you download, follow the instructions, thinking what a bunch of amateurs these Iota people are, all the while. You install a basic new wallet, pull over your funds from your old “seed” thingy, get all sorted out, get your new seed, stash it in a safe place, bitch to yourself how long it is, the lengths (literally) you will go to secure your crypto, feel good about it, how smart your are, then the fan gets hit hard — if you are a US citizen.

Bitfinex, the only major exchange offering Iota trading has decided that Americans are too risky. Sounds like baloney, but they allegedly don’t want the heat. You read the Reddits. Read between the lines. All is well they say. Others say get the hell out of there. Oh crap, you think. I just got my stupid wallet fixed and now this?

So, you think about it for a day. Watch as Iota continues up, tops a few times and starts to drift. You think, well, you can stick it out or do some more due diligence. So you waste more time. Listen to German “Iota” youth talk about how they are now reformed gamers. Oh great, roof top talks with guys who sold game mods on the sly. Okay, okay — it’s fine. Could be another Bill Gates. But not likely. I don’t think Bill was gamer as much as a thinker.

You reminisce about the old days then, last month, when you finally decided to buy some Iota. All that reading. All those profanity laced audio broadcasts you listened to from the Iota guy. That’s what I call him, the Iota guy. But I think he’s just a product of the times. Profanity is common now. It’s becoming meaningless. It has no impact, which is what I think they are shooting for. I can’t imagine people investing in Microsoft ™ if Bill Gates walked out on stage and let go a stream of mouth puke. But that’s how it flies at Iota. Rough and tough. (Baloney.) More like bravado to take your eye of the money ball. The ball they want you to give them.

So, here I was, Iota in my wallet. I got rid of it. A little at first. Jetted it to Bitfinex. Traded it. Withdrew other coins I know aren’t so sloppy. Waited. It worked. I did the rest, slowly. Breaking it up in small chunks until I got down to some weird divisions, minuscule amounts of Iota’s in my wallet. I left them. I wanted to reach in my computer then and squeeze the little wallet, give it some human-to-app love, but what the hell.

I was out of Iota. Well, except for some parts of them. Some atomic units I sent to my cell phone as a test, which I am just too lazy to mess with now. Then I go back on Reddit, see all the community members, the sheep, singing the Iota song. I wish the herd luck, but for now, I’m almost Iota-less and I’m not staring into that Zombie Moon waiting for the rockets. I’m thinking more of a bomb at this point, but I’ve been wrong before.

Anyway, I feel better about being Iota poor.

Sincerely,

Jack Shorebird

 

 

 

 

 

So, Where is Mr. Bytecoin?


There’s no meat on these bones, but fish as you please.

Recently, within the past few weeks, maybe a bit longer, Bytecoin.org has attempted or is attempting to make yet another comeback. Not unlike the comeback kid. And since I’m an avid crypto-junkie, having immersed myself in this sphere of innovation since Satoshi was wet behind the ears, I figured that a bit of advice is in order. If you feel Bytecoin is without sin, stop reading this blog now.

Why do I care? In my last life I caught bad guys. It’s in my nature I guess — to keep after them. And when some jerk wise-mouths me, like DStrangeM from Reddit did, well then, he has it coming.

In my last life I gathered the evidence, took the statements, pointed the gun, cuffed the perps, dragged them to jail, went to court and bled the blood. Not in that order of course, but it irks me, to say it nicely, when a bunch of alleged cryptocurrency developers — or those purporting to be thus — have the gall to cry foul when any regular citizen (me) asks for a smidgen of proof. They whine and moan. Why do you pee on my pump, they scream? It is always the same. Then again, in the back of my mind, that little voice asks, could they be innocent?

A new name has surfaced on the Bytecoin Reddit: Jenny Goldberg. No bio offered. She’s the “Community Manager” and BCN_official, we are advised, as of sixteen days ago. Her name does not appear on the Bytecoin.org website that I can find. (As indicated in the comments below — Goldberg’s name does appear on the Bytecoin.org Contact Page, just not under the Teto-Team page.)

Goldberg is on Reddit and I’m sure she’s on Telegram and Slack, but that does not verify that she has anything to with Bytecoin original Teto-Team — if said team ever really existed. It’s not even close to a confirmation, even if she will (or someone will) respond to emails sent to Contact@Bytecoin.org — which is the listed email for the Bytecoin.org webpage. Too easy to buy and sell email addresses these days — and websites.

Jenny offered this under the heading “BCN_Official”:

Dear BCN community,

My name is Jenny Goldberg and I’m the official BCN community manager

From this moment on, the official Bytecoin team will be making an effort to be more transparent to the community. We’ve been following all the activity in the community and we know you’ve been waiting for us to make a public statement. We see that there are lots of questions and we are now here to answer.

But firstly let me express my gratitude to all those enthusiasts who have made such valuable contributions to the development of BCN. We are so grateful for all the work put in by @Leogheo and BFB program team, @kinlakinla for the Bytecoin info page, @GaboCarranza and @sydney40 for Bytecointalk activity, @july for the Telegram channel, @boomworking for help with the design and @Camilo_Gil for your sincere appeal to our team. Thanks to the entire community for your trust and support even when you didn’t hear from us. Only with your support we were able to keep up our strength and continue working.

Just a few words about our history, Bytecoin is the first coin developed under the cryptonote protocol, but due to the fragmented nature of the community, BCN was forked a million times. You know that sometimes we were criticized for “slow development”, but the truth is that when the others were spending time on marketing, we were putting all our effort into enhancing the already existing cryptocurrency ecosystem.

In any case, we’re still here and we’re looking to grow. We would like to invite the best cryptographers, developers, bright minds and passionate hearts to join our BCN team to create absolutely new and exciting developments – get ready for the BCN of the new era. To ensure our success in this new era, we’ll need to support and trust each other and make our community even stronger.

Starting now, we are open for communication. Feel free to share your thoughts, bugs and features with us. Please send all feedback to contact@bytecoin.org and we’ll get back to you asap. We will do our best to bring the best ideas to life.

Let’s start a new chapter of Bytecoin together!

Source: Reddit

The only other Admin name on the Reddit for BytecoinBCN is our illustrious DStrangeM, who is a bit miffed at me today. (Hi, DStrangeM! I’m Danesjold on Reddit, by the way…) We are not even certain if DStrangeM is the DStrange, as is mentioned on the Bytecoin.org website. And does it matter anyway?

There are so many twists and turns.

From Bytecoin.org:

DStrange - Copy

Oh what a tangled web we weave when we practice to deceive.

And just who is DStrange or DStrangeM? Good question. But don’t worry, they/he/she — has your fiscal interests at heart. Are you certain?

The Bytecoin_BCN Twitter feed suddenly became active after nearly a year in slumber. How does that make you feel? There was an April 25, 2016 tweet then silence, until July 28, 2017. Announcements indicated that there was now a Telegram Group and a Slack Channel. The thing is, we really don’t know if these new groups have anything to do with the original developers of Bytecoin.

There is also the Bytecoin.org Twitter feed with tweets beginning on January 14, 2017. Why are there two feeds like this? Which one is official? Both? Neither? Half and half?

There is also the new Bytecoin Trading Community (Exchange). I found this out by accident. A Redditor advised me. (Thanks.) Anyway, according to Scamadviser, the site is 68 days old. It’s ownership is hidden, but what do we expect from a “secret” coin, right? For now the site’s reputation is pending. In other words, we will see.

A bad bit of news which continues to slow down any real progress, is the Poloniex issue. They are, for all intents and purposes, blocking BCN deposits and withdrawals. This has been going on for some time…over a month. (Longer according to Goldberg.) I’ve yet to hear a clear reason why, other than the recent mining issue, when extra BCN were created by a bad actor. Bytecoin did not rollback the blockchain to “unsteal” the coins. And I am uncertain now, if Bytecoin ever really fixed the flaw. I will need some expert, disinterested party to confirm this. (Not DStrangeM.)

What is my take on all of this, having spent decades bringing scum to justice? That these guys — that the people listed on Bytecoin.org as the Teto-Team do not exist. They never have. Prove me wrong. Come forward. Just one of you. I dare you.

I assert that the CryptoNote.org website is a farce. Has always been a front. But the code…is good. Now doesn’t that rankle your spuds? Again, if I am wrong, correct me. I will gladly print a retraction. I will be your biggest fan, if you can clear the “air.”

But I expect no answer. There are no men in the room. Only fluffy pony had the gumption. (Inside joke. If you don’t get it, get out of crypto, yesterday.)

So where is Mr. Bytecoin?

Answer: We must keep our identities secret, the governments are after us.

In those immortal words: “That dog don’t hunt.”

Have a spine.

In the end, which is where I hope all the noobs don’t take it, Bytecoin’s past is biting the heck out of their backside. Read a few more of my posts here. Surf the net and catch a few really stinky byte-fish, before you get caught, in what I believe will be yet another sucker’s rally.

Or chance it and prove me wrong.

But, unlike John McAfee, I will not consume my privates, if Bytecoin surges to the bitcoin spot or even gives Litecoin a run for the money.

Have a good day or night, as the case may be.

Jack Shorebird.

 


Note: This blog has been edited to reflect the comments through August 11, 2017.

 

 

Clif High

 


Hello, crypto enthusiasts. Thanks for stopping by again. This is just a quickie for tonight. I mean it’s night where I am — in Florida (United States). You Europeans are dead asleep by now, but hey, you’ll open your emails in the morning. And you Asian folk, you’re getting off of work about now. I’m not sure about you Aussies. You guys (and gals) are what, eating dinner and watching the news about North Korea? Guam on your minds?

As usual, I’ve been scanning the net for the scoops. Watching the markets for the fizz and pop. And here’s the latest curiosity I’ve managed to dig up from the fintech ether. And mind you, the people (person) I may cite herein may not have the cleanest resumes, but damned if they don’t get your spaz juices flowing.

Bitcoin and Ethereum seem to be in the keeping modes right now. Meaning they are looking great. Clif High, and he’s a bit of a, how can I say this nicely — an unusual chap? But I’m not one for killing the messenger, even if he is a bit burnt, if you catch my drift.

And that’s why I’ve been chomping at the bit today and yesterday. Kind of mulling this whole thing over. Trying to align my belief in a gold backed (silver backed) monetary system with the alleged future facts (and ideas) Clif High is constantly bringing to the table.

But I can’t really do it justice and I do not work for Clif. Don’t know him from Adam, as it were. Yet the guy is able to explain, in words and ideas — in a few seconds — to sort of encapsulate what many of us might think. How bitcoin (cryptocurrency) may, within the next 10 to 20 years, undo thousands of years of stagnant and centralized money control. How this new world of crpyto can serve as a shot-in-the-arm for economies, for wealth, technological development and so on. That, according to Clif, America (the U.S.) split from Great Britain when about 3% of the people wanted it. That only about 1% or less of people, now want bitcoin or cryptocurrency. That, if this margin reaches 10%, the governments of the world, which are always behind the times, will be unable to stop it. That, the iron is heating up and you may be able to make some serious cash, if you invest soon. That is what Clif is implying, I believe.

These are very positive statements in a lot of ways, in my book.

But, I hope that Clif’s inexplicable descriptions, his references to the unusual and seemingly unproven, are not, in some ways, infecting his ability to maintain his rationality. As far as I can see, his “predictions” have raised eyebrows for several years now. But are his prognostications simply too general? Too crazy?

He talks about silver prices skyrocketing — for a time.

Gold’s just sort of okay, as far I can judge by Clif’s statements.

New tech that will create matter from energy is only a few years away. So why mine gold or silver in say, 15 years?

Potential limited nuclear wars are on the horizon.

But by and large, the outlook is very positive, in Clif’s assessments.

He didn’t talk about my current favorite crypto’s though: Neo and Iota.

Please — you be the judge. Give this guy a listen. Tell me that he does not, in some weird way, make you very positive about the future of our world.

Here’s his latest talk. It’s long — a YouTube interview.

The Interview.


 

 

The Animals


iota

The guys are discussing cryptocurrency today. Tom is traditional, Dick is confused and Harry always wants to be on the cutting edge.


 

 

Image: Wikipedia — By ravas51 (Flickr: IMG_3747) [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons

Will Bitcoin Miners Initiate “SegWit” Early?

 


 

Bitcoin is not like the Titanic. The Titanic was on her maiden voyage when she struck that iceberg. Bitcoin has been sailing for years. It has been through rough seas before.

Thus far, the bitcoin community has not panicked about the upcoming SegWit updates. But preparations are being made by a few. It is possible that many in the community are wholly unaware of the SegWit icebergs now visible in the distance.

The 24 hour bitcoin outlook is currently positive, as of press time. The one hour trade display continues to blare “red” warnings on and off. Losses of up to three percent have been reported in the top ten most traded coins. You can see a current list of gains/losses here.

“…bitcoin is 33% off of its recent highs…”

Few cryptocurrencies are gaining value, if one has a seven-day measuring stick. Currently, bitcoin is 33% off of its highs posted in June of this year. If this was a stock, losing $1000 dollars per share, many would have initiated a sell order by now. Hint: cryptocurrencies are not stocks or bonds.

Bitcoin is once again flirting with $2200, which could serve to lull investors into a false sense of security. Ethereum’s volume also eclipsed bitcoin over the past 24 hours. This is happening more often now and yet bitcoin still has double the market cap at present. Iota and Veritaseum have also posted amazing gains in the last 24 hours.

But don’t let the “blips” fool you. Keep an eye out for the value spikes — the pump and dumps. And watch out for the sales pitches from all manner of used car salesmen. Make informed decisions. The SegWit icebergs are real. Either bitcoin slips by unscathed or it won’t.

Japanese bitcoin trade may halt.

The Japan Cryptocurrency Business Association  may recommend that its member exchanges stop processing all bitcoin transactions for as long as a week, as a result of the perceived crisis of faith. (See this Altcoin Today article for more details.) The concerns revolve around the legal ramifications if they take no action. Translated? If they lose money and customers come calling. The Japanese government could also change its mind about allowing their citizens to continue using bitcoin. They’ve already had experience with MtGox.

“…GDAX…taking similar actions.”

We also know that GDAX, a cryptocurrency exchange in the United States, is taking similar actions. Surely, for similar reasons. If SegWit results in US citizens losing money, you can bet the lawyers will start to circle. But the regulatory agencies will probably step in first.

This worse case scenario is always good to examine. But there are many other less problematic scenarios.

A consensus appears to be building. Get your bitcoins to safety and away from the exchanges.

“…ViaBTC…creating a separate token…”

ViaBTC, one of the largest mining operations in the world, with roughly 5% of the network, is taking steps to help ensure customer bitcoin holdings by creating a separate token based on BitcoinABC.

In a MarketWatch article out today, experts indicate that bitcoin has not yet bottomed. Other business gurus have concluded the opposite. The situation is fluid for sure.

$2888 bitcoin price?

On the positive, but unusual side, Clif High of Half Past Human has reported a probable bitcoin price of about $2888 in several months. You can check out his latest video here — if you are so inclined. In no way am I suggesting that he is accurate, I just like to give you all angles and some comedic relief.

Finally, it is rather ludicrous that some do not understand why merchants are not flocking to bitcoin. If you’ve been reading my blogs — well — I’m sure you have an idea. Heck, if you’ve been reading the bitcoin news in general, you should be feeling queasy — if you own any bitcoin.

Here is another optimistic viewpoint concerning the lack of merchant adoption:

“That is a very troubling development, even though there doesn’t appear to be a clear logic behind it.”

The above quote is from a NewsBTC article dated today. Do they get it? Bitcoin is not yet an easily adoptable technology. Debates about its core functions and who controls it, are major concerns.

How many other cryptocurrency exchanges are making preparations behind the scenes? And, are miners preparing to nip this thing in the bud? It appears to be true.

“…miners…signalling for SegWit early.”

CoinDesk has reported that miners are signalling for SegWit early. Here is the Countdown Clock they are referencing.

I’ll continue to keep you posted.


Image: Flickr