Neno's Place Established in 2006 as a Community of Reality

March 20, 2013

Hi and Welcome to the Neno's Place open public board for Dinar Investors.

Some forums are private so you want be able to see those with out being logged in. Create a good password.

Be sure and join our Newsletter Email list. It is located on the right.

See you on the inside,
Neno

Remember: Pick a strong password when registering.

Also, join our email list that is a separate software to
receive updates and alerts. It is a manageable software
that you can unsubscribe to at anytime.
Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar is the most popular topic amoung many everyday topics this Community discusses. Please Join our Email List for Updates. Some call it a RV Alert List as it can be used for that but as Admin, I use the secondary software for updates and alerts.

Cats Wrap
Cat561 Wants To Know

September 2014

SunMonTueWedThuFriSat
 123456
78910111213
14151617181920
21222324252627
282930    

Calendar Calendar

News

BBC Headline News

WebGuy’s Artwork For Sale

Watch The World Currencies FLow into BTC in Realtime!

Share

w8tin
Quiet Investor
Quiet Investor

Posts: 14
Join date: 2012-12-19

Watch The World Currencies FLow into BTC in Realtime!

Post by w8tin on Sat Nov 30, 2013 3:27 pm

This is addicting to watch!!

fiatleak - watch the world's currencies flow into BTC in realtime
fiatleak.com
Monitoring the flow of fiat currencies like the US Dollar and the Chinese Yuan into the digital currency Bitcoin. Data extracted from all major trading exchanges including MT.Gox, Bitstamp, BTCChina, BTC-E, Bit2c, Mercado

Gotta Click on --> http://fiatleak.com/

mbryan
Dedicated Investor
Dedicated Investor

Posts: 197
Join date: 2012-12-20

Re: Watch The World Currencies FLow into BTC in Realtime!

Post by mbryan on Sat Nov 30, 2013 4:00 pm

good one w8tin

Neno
Admin
Admin

Posts: 4638
Join date: 2012-12-17
Age: 50
Location: Lone Star State

Re: Watch The World Currencies FLow into BTC in Realtime!

Post by Neno on Sat Nov 30, 2013 7:25 pm

http://bitcoin.org/en/



_________________

Neno
Admin
Admin

Posts: 4638
Join date: 2012-12-17
Age: 50
Location: Lone Star State

Re: Watch The World Currencies FLow into BTC in Realtime!

Post by Neno on Sat Nov 30, 2013 7:32 pm

Legal issues
Bitcoin's association with criminal activities has historically hindered the currency from attaining widespread, mainstream use and has attracted the attention of financial regulators, legislative bodies, and law enforcement.[57] The Washington Post has labelled it "the currency of choice for seedy online activities,"[58] and CNN has called Bitcoin a "shady online currency."[59] Its links to criminal activities have prompted scrutiny from the FBI, US Senate, and the State of New York. The FBI stated in a 2012 report that "Bitcoins will likely continue to attract cybercriminals who view it as a means to move or steal funds".[60]
In March 2013 the US Financial Crimes Enforcement Network (FinCEN) established regulatory guidelines for "decentralized virtual currencies" such as Bitcoin, classifying American "Bitcoin miners" who sell their generated bitcoins as Money Service Businesses (or MSBs), that may be subject to registration and other legal obligations.[61][62][63] In August 2013 the German Finance Ministry characterized Bitcoin as a unit of account,[64][65] usable in multilateral clearing circles and subject to capital gains tax if held less than one year.[65] The New York State Department of Financial Services, citing its authority to regulate money transmissions and its concern with criminal activity (Silk Road in particular), announced an inquiry in late 2013 into possible regulations and guidelines for Bitcoin (a "BitLicense") and the holding of public hearings in New York City.[66] The US Internal Revenue Service has also stated that it is actively working on its own rules for Bitcoin.[40]
Some have suggested that due to its close association with illegal purchases, governments could outlaw Bitcoin. This assertion has been made by Steven Strauss, a Harvard public policy professor, and was also mentioned in 2013 SEC filing made by a Bitcoin investment vehicle.[67] Following the shut down of Silk Road, however, FBI Special Agent Christopher Tarbell said that "Bitcoins are not illegal in and of themselves and have known legitimate uses".[68]
Unauthorized mining
In June 2011, Symantec warned about the possibility of botnets engaging in covert mining of bitcoins,[69][70] consuming computing cycles, using extra electricity and possibly increasing the temperature of the computer. Some malware also used the parallel processing capabilities of the GPUs built into many modern-day video cards.[71] In mid-August 2011, Bitcoin miner botnets were detected again,[72] and less than three months later Bitcoin-mining trojans infecting Mac OS X were also discovered.[73] In April 2013 electronic sports organisation E-Sports Entertainment were accused of hijacking 14,000 computers to mine Bitcoins; the case was settled in November with the organisation fined $1 million USD if it breaks the law within the following 10 years, or $325,000 if it does not.[74]
Blackmarkets
Several news outlets assert that the popularity of Bitcoin hinges on the ability to use them to purchase illegal substances.[12] In 2013 The Guardian reported that the currency was primarily used to purchase illegal drugs and for online gambling,[75] and The Huffington Post stated that "online gambling accounts for a huge portion of Bitcoin activity."[76] Legitimate transactions are thought to be far less than the number involved in the purchase of drugs,[77] and roughly one half of all transactions made using Bitcoin are bets placed at a single online gaming website.[78] In 2012, an academic from the Carnegie Mellon CyLab and the Information Networking Institute estimated that 4.5 to 9% of all bitcoins spent were for purchases of drugs at a single online market, Silk Road.[79] As the majority of the Bitcoin transactions were at this time speculative in nature, this academic asserts that drugs constituted a much larger percentage of the products and services bought using the currency, however.[79] The Huffington Post stated in 2013 that online gun dealers use Bitcoin to sell arms without background checks.[80]
Money laundering
Fears have arisen that Bitcoin may be used to launder money, and a 2012 report by the FBI acknowledged these fears but stated that there were no known instances of this occurring.[60] However, in 2013 US authorities seized assets belonging to Mt. Gox, a service that allowed users to exchange bitcoins for US dollars.[81] Some say one obstacle to bitcoins becoming widely used to launder money may be the fact that the transaction history is public.[82] During the US Senate hearing in 2013, Jennifer Shasky Calvery, director of the Treasury Department's Financial Crimes Enforcement Network said that despite the possibility for using Bitcoin that "Cash is probably still the best medium for money laundering."[83]

http://en.wikipedia.org/wiki/Bitcoin


_________________

ksp
Getting It Investor
Getting It Investor

Posts: 67
Join date: 2012-12-21

A Good Read About Money, and Bitcoin

Post by ksp on Sun Dec 01, 2013 9:40 am

http://www.theburningplatform.com/

BITCOINS, THE SECOND BIGGEST PONZI SCHEME IN HISTORY
63 comments
Posted on 29th November 2013 by Zarathustra in Economy


AWD, You can’t say you weren’t warned.
The Number of Fools is Limited
By Gary North
 
I hereby make a prediction: Bitcoins will go down in history as the most spectacular private Ponzi scheme in history. It will dwarf anything dreamed of by Bernard Madoff. (It will never rival Social Security, however.)
To explain my position, I must do two things. First, I will describe the economics of every Ponzi scheme. Second, I will explain the Austrian school of economics’ theory of the origin of money. My analysis is strictly economic. As far as I know, it is a legal scheme — and should be.
PONZI ECONOMICS
First, someone who no one has ever heard of before announces that he has discovered a way to make money. In the case of Bitcoins, the claim claim is literal. The creator literally made what he says is money, or will be money. He made this money out of digits. He made it out of nothing. Think “Federal Reserve wanna-be.”
Second, the individual claims that a particular market provides unexploited arbitrage opportunities. Something is selling too low. If you buy into the program now, the person running the scheme will be able to sell it high on your behalf. So, you will take advantage of the arbitrage opportunity.
Today, with high-speed trading, arbitrage opportunities last only for a few milliseconds seconds in widely traded markets. Arbitrage opportunities in the commodity futures market last for very short periods. But in the most leveraged and sophisticated of all the futures markets, namely, the currency futures markets, arbitrage opportunities last for so brief a period of time that only high-speed computer programs can take advantage of them.
The individual who sells the Ponzi scheme makes money by siphoning off a large share of the money coming in. In other words, he does not make the investment. But Bitcoins are unique. The money was siphoned off from the beginning. Somebody owned a good percentage of the original digits. Then, by telling his story, this individual created demand for all of the digits. The dollar-value of his share of the Bitcoins appreciates with the other digits.
This strategy was described a generation ago by George Goodman, who wrote under the pseudonym of Adam Smith. You can find it in his book, Supermoney. This is done with financial corporations when individuals create a new business, retain a large share of the shares, and then sell the stock to the public. In this sense, Bitcoins is not a Ponzi scheme. It is simply a supermoney scheme.
The Ponzi aspect of it comes when we look at the justification for Bitcoins. They were sold on the basis that Bitcoins will be an alternative currency. In other words, this will be the money of the future.
The coins will never be the money of the future. This is my main argument.

THE AUSTRIAN SCHOOL’S THEORY OF MONEY’S ORIGINS
The best definition of money was first offered by Austrian economist Carl Menger in 1892. He said that money is the most marketable commodity. This definition was picked up by his disciple, Ludwig von Mises, who presented it in his book, The Theory of Money and Credit, published in 1912.
In that book, Mises argued, as Menger had before him, that money arises out of market transactions. That which did not function as money before, now functions as money. Something that was valuable for its own sake, most likely gold or silver, becomes valuable for another purpose, namely, the facilitation of exchange. People move from barter to a monetary economy. This increases the division of labor. As more and more people use the money commodity in order to facilitate exchanges, the division of labor extends, and as a result, people’s productivity increases. They can specialize. This specialization produces increased output per person, and therefore increased income per person.
In this scenario, something that had independent value becomes the focus of traders, who find that their ability to buy and sell increases as a result of the use of this commodity. Money develops out of market exchanges. Money was not used for its own sake initially, but it becomes widely used as money as a result of innumerable transactions within the economy. (I discuss this in my chapter in Theory of Money and Fiduciary Media, published by the Mises Institute in 2012.)
Here is the central fact of money. Money is the product of the market process. It arises out of anunplanned, decentralized process. This takes time. It takes a lot of time. It spreads slowly, as new people discover it as a tool of production, because it increases the size of the market for all goods and services. No one says, “I think I’ll invent a new form of money.”
Note: any time you see a proposal of a new form of money, hold on to your old form of money.
The central benefit of money is its predictable purchasing power. A monetary commodity is not easy to produce. The cost of mining is high. Money is slowly adopted by a large number of participants. These participants use money as a means of exchange. Why? Because it was valuable the day before. They therefore expect it to be valuable the next day. Money has continuity of value. This is not intrinsic value. It is historic value. So, a person can buy money by the sale of goods or services, set this money aside, and re-enter the markets in a different location or in a different time, in the confidence that he will probably be able to buy a similar quantity of goods and services.
Money is not accumulated for its own sake. It is accumulated to buy future goods and services. It is useful in the facilitation of exchange precisely because its market value varies little over time. It is the predictability of money’s market exchange rate that makes it money.
BITCOINS ARE NOT MONEY
Now let us look at bitcoins. The market value of one bitcoin has gone from about $2 to $1,000 in a year. This is not money. This commodity is not being bought for its services as money. It is unpredictable to a fault.
Admittedly, those who got in early on this Ponzi scheme are doing very well. They will probably continue to do well for a time. As more people hear about this investment, which is justified in terms of its future potential as money, more people will buy it. Late-comers are not buying it because they understand its potential as future money, any more than the late investors in Charles Ponzi’s scheme thought they were buying into the arbitrage potential of foreign postage stamps. They are buying Bitcoins because we are in the midst of a Ponzi scheme mania. They will continue to buy because they think this time it’s different.
This digital so-called money will not be used to facilitate exchange. Nobody is going to be getting rid of an asset that has moved from $2 to $1,000 in one year in order to buy pizzas. People want to hang onto it, refusing to sell, in the hopes that it will go to $2,000. This is the classic mark of Ponzi scheme psychology.People do not buy the investment for the benefits that the investment provides as an investment, in other words, because it is a capital asset. They buy it only because it has gone up in price. They expect this to continue.
Here is the Austrian school’s theory of money. People buy money because it has not fallen in price. But it has also not gone up in price much, either. It is predictable. Why? Because it is held in reserve by a large number of people over a large geographical area. It has become money through tradition, through experience, and through endless numbers of exchanges on a voluntary basis. It has proven itself in the marketplace as a means of facilitating exchange, and thereby as a means of preserving value over time. This is not the characteristic feature of a Bitcoin. People are not buying it to serve as money; they are buying it because they are in the midst of a mania, and they are gambling that the number of buyers will continue upward forever.
Here is an economic fact: the number of fools is limited. They are a scarce economic resource. As the price of bitcoins rises, more fools will be lured into the market. But this is a finite market.
In other words, bitcoins cannot possibly fulfill their supposed purpose: to serve as an unregulated currency unit. Bitcoins are not an alternative currency. They are something you buy in the midst of a mania, and you will sell at some point in order to get back your money. You are thinking of buying Bitcoins, not because Bitcoins will serve as a means of exchange, as originally argued, but because you want to get back lots more money than you paid for them. In other words, Bitcoins are not money; dollars are money. There has been no challenge from Bitcoins to the reign of the dollar.
JUST SAY NO
When you see an offer of an investment which inherently cannot possibly exist on its own merit, and yet lots of people are coming into the market to buy the item, you know, without any question, that this is a Ponzi scheme. In other words, people are buying into the program, not because of an arbitrage opportunity, and not because of a capital breakthrough in terms of technology, but because somebody else bought it cheaper yesterday. You buy it today, not because you think it is going to offer a stable value, but because you think you’re going to make a bundle of money when more people come into the market. Again, this is the classic mark of a Ponzi scheme.
In order for Bitcoins to become an alternative currency, there will have to be millions of users of the currency. There will have to be tens of millions of users of the currency. They will have to develop in a market on their merit as money, not as an investment of dollars in order to get more dollars back. It would have to develop through exchange, not bought as an investment. In other words, the free market will have to adopt Bitcoins as a means of increasing the division of labor.
Bitcoins are not increasing the division of labor. They are bought on the basis that somebody can get into a game of musical chairs. Instead of running out of chairs, leaving one person the great winter, the promoters started with a given number of chairs, and then they hoped that lots would come and bid on the chairs. “If we issue it, they will come.” This took place. The promoters creators are now very rich, as measured in dollars.
The fact of the matter is this: Bitcoins will not increase the division of labor by serving as an alternative currency. Inherently, Bitcoins have made their mark, not on the basis of their stable value in exchange, that is, their value in increasing the division of labor in alternative markets that do not use the dollar. On the contrary, Bitcoins are being purchased for one reason only: to get in on the deal. Buy low; sell high. Buy with what? Dollars. Sell for what? Dollars.
The mania has destroyed Bitcoins’ use as money. Bitcoins are too volatile in price ever to serve as a currency.
Which is money: dollars or Bitcoins? The answer is obvious: dollars.
This is a Ponzi scheme.
WHAT GOES UP COMES DOWN
This will lead to the ruination of more people than any private Ponzi scheme in history. There will be the poor schnooks to get in at the end, paying perhaps thousands of dollars per Bitcoin. Then the market will unravel. It will unravel for the same reason that all Ponzi schemes have unraveled: not enough new buyers. When the new buyers do not show up in great numbers, the holders will start to dump them. What went up in price, as measured in dollars, the real money, will come down in price.
This mania is going to be the stuff of best-selling books. This is going to be this stuff of Ph.D. dissertations in economics and psychology. This is going to be the equivalent of Mackay’s book, Extraordinary Popular Delusions and the Madness of Crowds.
The interesting thing is the mania started among the most technologically sophisticated people on earth: computer techies. The techies who got in early are going to be fabulously wealthy . . . if they sell. But the poor schnooks who come in at the and are going to lose money. Collectively, this will be the greatest single scheme for lots of people losing money that we have ever seen. This Ponzi scheme is not illegal . . . yet. It will spread. It has gone viral.
The price will soon be too high for most people to buy one Bitcoin. What I think is going to happen next is that somebody is going to start a Bitcoin mutual fund. You will be able to buy fractional shares of a Bitcoins. Maybe you can get in for $250.
Anytime you buy an investment, you had better have an exit strategy. There is no exit strategy for Bitcoins.
You must get out at the top, or you lose your shirt.
CONCLUSION
Anytime that anybody tries to sell you an investment, you have to look at it on this basis: “What are the future benefits that this investment will give final consumers?” In other words, how does it serve the final consumer? If it does not serve the final consumer, then it is a Ponzi scheme.
Bitcoins cannot serve the consumer. There is nothing to consume. The only way that Bitcoins can work to the advantage of the consumer is that they provides the consumer with increased opportunities, based on Bitcoins’ function as money. But the fundamental characteristic of money is its relatively stable purchasing power.
Bitcoins will never achieve this. It is a mania going up. It will be a mania coming down. It will not increase the division of labor, because people will recognize it as having been a Ponzi scheme, and they will not again buy it. They will not use it in exchange. Companies will not sell goods and services based on Bitcoins. Bitcoins have to have stable purchasing power if they are to serve as money, and they will never, ever achieve stable purchasing power.
Whenever somebody tries to sell you an investment that is based on the economic analysis of a market — an analysis that cannot possibly be true — do not buy the investment. This is a simple rule. I adhere to this rule.
There has to be an economic justification for a capital investment, and there is no economic justification of buying Bitcoins as an alternative currency. That was how Bitcoins were initially sold, and it was impossible as an economic concept from the beginning. The Austrian theory of money shows why.
I do not invest in capital that has no economic justification other than the greater fool theory. There are too few fools to keep the scheme going.
Bitcoins are not illegal. They should not be made illegal. They should merely be avoided.

Neno
Admin
Admin

Posts: 4638
Join date: 2012-12-17
Age: 50
Location: Lone Star State

Re: Watch The World Currencies FLow into BTC in Realtime!

Post by Neno on Sun Dec 01, 2013 10:46 am

Since we are already chatting about this, I have merged ksp's good reading article to his thread and quoted the below... ;)
BITCOINS ARE NOT MONEY
Now let us look at bitcoins. The market value of one bitcoin has gone from about $2 to $1,000 in a year. This is not money. This commodity is not being bought for its services as money. It is unpredictable to a fault.

Admittedly, those who got in early on this Ponzi scheme are doing very well. They will probably continue to do well for a time. As more people hear about this investment, which is justified in terms of its future potential as money, more people will buy it. Late-comers are not buying it because they understand its potential as future money, any more than the late investors in Charles Ponzi’s scheme thought they were buying into the arbitrage potential of foreign postage stamps. They are buying Bitcoins because we are in the midst of a Ponzi scheme mania. They will continue to buy because they think this time it’s different.

This digital so-called money will not be used to facilitate exchange. Nobody is going to be getting rid of an asset that has moved from $2 to $1,000 in one year in order to buy pizzas. People want to hang onto it, refusing to sell, in the hopes that it will go to $2,000. This is the classic mark of Ponzi scheme psychology.People do not buy the investment for the benefits that the investment provides as an investment, in other words, because it is a capital asset. They buy it only because it has gone up in price. They expect this to continue.

Here is the Austrian school’s theory of money. People buy money because it has not fallen in price. But it has also not gone up in price much, either. It is predictable. Why? Because it is held in reserve by a large number of people over a large geographical area. It has become money through tradition, through experience, and through endless numbers of exchanges on a voluntary basis. It has proven itself in the marketplace as a means of facilitating exchange, and thereby as a means of preserving value over time. This is not the characteristic feature of a Bitcoin. People are not buying it to serve as money; they are buying it because they are in the midst of a mania, and they are gambling that the number of buyers will continue upward forever.

Here is an economic fact: the number of fools is limited. They are a scarce economic resource. As the price of bitcoins rises, more fools will be lured into the market. But this is a finite market.
In other words, bitcoins cannot possibly fulfill their supposed purpose: to serve as an unregulated currency unit. Bitcoins are not an alternative currency. They are something you buy in the midst of a mania, and you will sell at some point in order to get back your money. You are thinking of buying Bitcoins, not because Bitcoins will serve as a means of exchange, as originally argued, but because you want to get back lots more money than you paid for them. In other words, Bitcoins are not money; dollars are money. There has been no challenge from Bitcoins to the reign of the dollar.

JUST SAY NO


_________________

ksp
Getting It Investor
Getting It Investor

Posts: 67
Join date: 2012-12-21

Questions About Bitcoin, Alternative Investing Lead to Freedom Fund

Post by ksp on Tue Dec 10, 2013 10:31 am

http://www.thedailybell.com/news-analysis/34812/Questions-About-Bitcoin-Alternative-Investing-Lead-to-Freedom-Fund/



 
Questions About Bitcoin, Alternative Investing Lead to Freedom Fund
By Staff Report - December 09, 2013
Bitcoins: A Fully-Compliant Currency The Government Can Love ... All of bitcoin's benefits to the establishment revolve around its blockchain. In simple terms, a blockchain is a registry of all transactions carried out in bitcoins. Thus is resolved the problem of double-spending one particular bitcoin: It can't be done (at least in theory) due to the blockchain. But the blockchain is in fact a register – a trail – of bitcoins. So it's a relative cinch to piece together each and every transaction of any particular wallet in the bitcoin universe. And since exchanges need detailed personal information about a bitcoin user in order to comply with money-laundering laws before issuing a new user with a wallet, the government or other interested parties could determine what any one particular person has been doing in the bitcoin marketplace. – Blacklisted News/Gonzalo Lira
Dominant Social Theme: Are you ethical? Okay, then go live in a "green" hut and give government every cent you've got so the bureaucrats can reintroduce feudalism.
Free-Market Analysis: Let's start with bitcoin. Then comes a bigger announcement ... We've been skeptical of bitcoin for years. The smug techno-geekness of bitcoin's backers irritated us, especially when we realized what they were supporting – a system that keeps track digitally of every single transaction ever made on the Internet.
You can see above that Gonzalo Lira has figured it out, as well. Those who blithely defend bitcoin without fully evaluating both the pros and cons of its technological stance are doing the freedom movement a, well ... disservice, in our humble opinion, and apparently Lira's, too.
That makes at least two of us against the rest of the libertarian world that is still a good deal enamored of this monetary marvel. Of course, it doesn't hurt that bitcoin has recently hovered around US$1,000 a coin, a price that has sent people scurrying to garbage heaps to try to dig up old bitcoins now worth millions in aggregate.
One of these stories received wide attention recently. A fellow supposedly discarded an electronic cache of bitcoins years ago and then decided to search a dump to see if the coins were still there. This story – and we have our doubts about it – was all over the mainstream media, which is not a good sign.
Does anyone really believe that if bitcoin was a subversive, government-altering currency the mainstream media would be covering it so closely, or The Bernank would be issuing positive-sounding statements about it?

  • One of the main sources of bitcoin's super-secret protection is DARPA's TOR facility. It always struck us as a bit odd that bitcoin users were depending on a military protocol for their protection – especially Silk Road.
  • Then there's the initial bitcoin Creation Myth. This has to do with an inscrutable Japanese techno-genius dropping bitcoin rules into the ether where they were gradually discovered and applied by a growing number of enamored acolytes.
  • The blockchain has always bothered us because what is indecipherable now may not be in a decade. Who knows how technology changes anonymity over time? We did find out that doyenne of alternative currencies, UNESCO"s Margrit Kennedy, has been preaching LETS trading systems that are backed enthusiastically by her former UN employer – probably because they also demand a general ledger. This is most helpful, of course, when the government wants to investigate for non-payment of taxes, etc.
  • It always seemed to us – throughout this ongoing bitcoin mania – that gold and silver were perfectly good alternatives to a wretchedly complex digital system. Granted, they are not directly as fungible as bitcoin, but they've been around for millennia. That's more than bitcoin's few years.

For all these reasons, we had reservations, which continue today, about bitcoin. Is it a system developed and placed on the Internet to anticipate the expansion of REAL alternative, digital currencies? Is it a kind of Trojan Horse, meant to provide the banking industry with a way to nullify a potential challenge – and regulate it – before something else comes along that is more challenging?
These may sound kind of hypothetical, but this iteration of The Daily Bell has certainly tried to speak to the expansion of alternative investing by setting some specific criteria. One powerful criterion would be "ethical" – as has been mentioned in past articles – and involves picking and choosing investments based on their ability to support freedom and free markets.


Bitcoin may offer profitability, but perhaps there is a "cost" attached that might – just might – involve a reduction of personal and monetary freedom in the long term. Does this sound counterintuitive? Perhaps so. But despite its success, High Alert Capital has not recommended it or taken a position in it thus far and probably won't in the near future.
High Alert Capital, a funding mechanism for alternative investments that are often mentioned in The Daily Bell, utilizes the VESTS system to determine promising products and services. The idea is that the Internet Reformation is collapsing some elite promotions while doing less damage to others. Using VESTS, we want to ascertain first of all whether a given dominant social theme is profitable and then, just as importantly, determine whether it is worth participating in.
We know, for instance, that global warming is a central elite meme and that people like Al Gore have made fortunes endorsing it. But global warming – AKA climate change – is also very destructive of personal and socio-political freedoms.
And now an announcement.
As part of this "ethical" consideration, High Alert Capital is going to be breaking new ground shortly by launching a one-of-a-kind "socially responsible fund" with a twist. So much ethical investing has revolved around funds that take an anti-market approach and seek to invest in companies and systems that alleviate "carbon pollution," for instance. Not this fund.
THIS fund will be a TRUE ethical investing fund. It will encourage freedom-oriented technology of all sorts. Like-minded investors – presumably those who read The Daily Bell – will finally have a place to put some funds if they wish.
Some may put a lot of funds in, as they are enamored of certain opportunities. Others may want to contribute simply to register a protest and show that there are still people who consider freedom to be a primary ethical consideration.
Think of it as a stick in the eye of major corporations that have taken to announcing en masse that reducing "carbon pollution" is part of their core corporate mission.
You can be sure that the senior partners of High Alert Capital shall be working hard to winnow real, freedom-oriented products worthy of support.
They will seek to profit from ideas that fit within a route defined by their "moral compass" – and those ideas are distinctly different from mainstream ones. Maybe bitcoin will ultimately make the cut and maybe not. But the considerations of this fund will be new.

mbryan
Dedicated Investor
Dedicated Investor

Posts: 197
Join date: 2012-12-20

Re: Watch The World Currencies FLow into BTC in Realtime!

Post by mbryan on Thu Dec 12, 2013 7:07 am

good article ksp thanks

Screwball
Insane Investor
Insane Investor

Posts: 852
Join date: 2012-12-19

Re: Watch The World Currencies FLow into BTC in Realtime!

Post by Screwball on Thu Dec 12, 2013 4:59 pm

and now accpeted by the germans as a private currency! nice! go the bit!

ksp
Getting It Investor
Getting It Investor

Posts: 67
Join date: 2012-12-21

Bitcoin Entrepreneur: How a Government Partnership Will Build a Bright Future

Post by ksp on Sun Dec 29, 2013 11:11 am

http://www.thedailybell.com/exclusive-interviews/34870/Anthony-Wile-Jesse-Heaslip-Bitcoin-Entrepreneur-How-a-Government-Partnership-Will-Build-a-Bright-Future/


Jesse Heaslip
 
Jesse Heaslip, Bitcoin Entrepreneur: How a Government Partnership Will Build a Bright Future
With Anthony Wile - December 29, 2013
The Daily Bell is pleased to present this exclusive interview with Jesse Heaslip
Jesse Heaslip is co-chief executive for Bex.io, a privately held company providing a platform that allows you to own your own bitcoin exchange. Jesse leads business development, design and marketing and the company just completed a successful financial raise and is releasing its first exchanges in early 2014.
Daily Bell: Thanks for sitting down. Let's start with some background on bitcoin.
Jesse Heaslip: Bitcoin is an increasingly popular protocol introduced in 2009 by "Satoshi Nakamoto." No one knows who he is, even today, but he placed a white paper on the Internet that explained how a peer-to-peer electronic currency would work and the ecosystem flourished from there.
Daily Bell: Is it money?
Jesse Heaslip: Bitcoin is a cryptocurrency. Every transaction updates a public ledger called the blockchain. The blockchain permanently records every single transaction.
Bitcoins are created through a process called mining. People "mine" them electronically by solving mathematical equations. This is known as "proof of work," and those who participate are known as miners. Successful miners receive transaction fees and new bitcoins.
Given that it's an entirely new kind of currency, bitcoin has been highly successful in its short life. However, there are a number of serious concerns that the community is still addressing.
Many people associated BTC with the recent shutdown of Silk Road, the online marketplace that supported the use of bitcoin purchases for potentially illegal items and drug purchase. Bitcoin exchanges have gone out of business and bitcoins have been stolen from electronic wallets. China recently banned the use of bitcoin but bitcoin keeps growing anyway.
Daily Bell: There's considerable price volatility.
Jesse Heaslip: Speculators are driving the price of bitcoin, which recently reached over US$1,000. But as more vendors accept bitcoin, volatility should lessen and bitcoin should behave more like a regular currency. It's entered an era where it is now receiving acceptance from major vendors including Reddit and WordPress.
We are at the tail end of the first wave of acceptance and just at the beginning of a second and much larger wave. There will be tremendous innovation over the next few years and a huge number of additional crypto coins. There will be huge developments built around "proof of work" and different kinds of mining. Say a health insurer wants to encourage healthy habits and lifestyles. That insurer could issue electronic coins based on a reduction in your resting pulse. You could accrue currency by becoming more healthy.
Daily Bell: But would the currency be accepted as money? Would it actually be useful?
Jesse Heaslip: Many currencies are beginning to come online and they're often priced against bitcoin. The bitcoin community generally accepts them and thus they are exchangeable against bitcoin. That's one place where exchanges come in.
Daily Bell: Tell us about your company, Bex.io.
Jesse Heaslip: Well, it's simple enough. We build digital currency exchanges and partner with groups in countries around the world to operate them locally.
We split the transaction fees with our partners on a case-by-case basis. We try to find a split that is beneficial to our partners while allowing us to grow our business at the same time.
Daily Bell: How does an interested individual or group begin to work with you?
Jesse Heaslip: We create exchanges with several groups at once called cohorts. Our first cohort of five exchanges will be launching in the coming months. Members of the first cohort have all pre-purchased 25-100K of Bex services.
Daily Bell: Comment on the technology, please.
Jesse Heaslip: We have tried to use technology appropriate to the task. On the back-end we use Elixir, a dialect of Erlang that is highly scalable and suitable to bitcoin exchanges. On the front end we use AngularJS and a fully responsive HTML5 interface to ensure a consistent and professional presentation.
Daily Bell: The interface comes from you?
Jesse Heaslip: Yes, the interface we give you is customizable because different clients have different needs. Each country and region of the world reacts differently to different colors and looks. We want your presentation to be the best you can have.
Daily Bell: What about security?
Jesse Heaslip: We manage hosting and are intimately involved with the security of the overall system. If you have a certain hosting provider, we're certainly open to working with the vendor if they prove suitable from a standards standpoint.
Daily Bell: Cost of an exclusive Bex.io license?
Jesse Heaslip: This is negotiable based on the duration and region. We're a startup and are trying to be flexible and cost effective.
Daily Bell: Tell us a little more about yourself. How did you come up with the Bex idea?
Jesse Heaslip: It was a market-driven concept, which often proves to be the best type. We were working with a client that wanted to build an exchange, but the cost was coming in high. So we wondered if we could build an exchange that several clients could sponsor. We put out a query via a landing page and we received a torrent of response.
Daily Bell: How far back do you go with bitcoin?
Jesse Heaslip: I have spent a good deal of time over the past two years on what you could call the bitcoin periphery and during that time I was hosting regular meetups in Vancouver. We'd have three or four people in a room but then the price went up and more people would join. You started to see the interest expand, and my interest did, too. Now, with this exchange concept, we're fully committed to enabling bitcoin growth.
Daily Bell: Where did you meet your partner, Yurii?
Jesse Heaslip: I met him through the meetup community. We kept running into each other and gradually as we became friends we began talking about what we could do together. We shared the same interests but it was the never the right time. One of us was always busy or had other commitments. But late last year we were suddenly both free at the same time and decided to try to focus on bitcoin. We began to develop the concept of a scalable exchange and now we are developing an exchange for four or five companies at a time. Our target client market is those individuals or groups that want to leverage the current interest in bitcoin. Often they may be miners that have bitcoins to market that they have gained via the mining process and want to sell on the open market. There are all sorts of opportunities.
Daily Bell: Where were you before that?
Jesse Heaslip: Before then, I was working at a local accelerator, what you might call a venture incubator, Growlab. So I've been around startups for a long time, including bitcoin. We have both been around venture capital ideas and seen the good, the bad and the ugly.
Daily Bell: Before then?
Jesse Heaslip: I was working in South America and learning to code. I ended up in New Zealand for a while at a startup and then returned to Vancouver in 2010. I'm a sports fan and I wanted to be in town for the Olympics. I worked directly for a startup in Vancouver and you start to get good at evaluating opportunities. You look for explosive markets. As an entrepreneur you have limited financial resources; however, you do have time and talent, and you have to ask yourself what is the best use of your time. Others will be asking the same thing, especially if you approach them about funding something.
Daily Bell: Give us a bit more detail on your background.
Jesse Heaslip: My dad is an architect and for a long time my mom ran a daycare center, so they are both entrepreneurs. I think I get that from them. I went to the University of Victoria and received a Bachelor of Commerce degree. I was always interested in how businesses can invoke change and found participating in startups to be exciting.
Daily Bell: You embarked on a raise to get this off the ground. What was that like?
Jesse Heaslip: We raised about half a million, and it was one of the hardest things I've ever done. In order to open the doors you've got to answer tough questions and you better get the answers right. It ended up taking four months of concentrated effort.
It's still early days in the bitcoin community and there's a sense of shared purpose. Most of our raise came from people who owned bitcoins, though we were paid US dollars. There are people trying to live on bitcoin, but that's still hard at the moment. We pay some office expenses in bitcoin.
Daily Bell: Do you think you raised enough?
Jesse Heaslip: We didn't want to raise more. The government of Canada has programs to finance us, too, and we can stretch out what we've got. This is a long-term business, and we have enough to take us to the next level. Also, you don't want to give up too much of the company, which we didn't. We're still very much in control, though with the next round we anticipate that the board will start to evolve. Competition-wise, we believe there were about four groups that set out to do what were doing, but now there are only three. One just dropped out.
Daily Bell: What about the recent bitcoin price downturn – from nearly US$1,000 to about half that?
Jesse Heaslip: Usually, when bitcoin prices decline, people begin to buy again. So there's a three- and four-month lag on any price action. If bitcoin goes down, buyers tend to bid it back up about three or four months later. So sometime in March, we expect there'll be another big climb back up.
Also, volatility tends to shake out the weak hands, which adds resolve to the remaining participants in the community.
Daily Bell: Comment on some of the controversy surrounding bitcoin.
Jesse Heaslip: There are growing pains. The future of bitcoin in our estimation is as a regular, regulated money. These days, you only want to build exchanges that identify the user via a labeled wallet. That means the users' purchases and buying habits aren't hidden in any way.
Daily Bell: Doesn't that have a big impact on a main factor of bitcoin, which is anonymity?
Jesse Heaslip: For the most part, bitcoin is not anonymous to begin with. That's kind of a myth. In the past, there has been research into tracking micro transactions and you can pretty much figure out the user if you track enough of them. There will always be dark wallets and tools that cater to a niche market that values anonymity.
But we should also look at our online lives as a whole. Because of the vast amount of Google data – and data generally available on the 'Net – it's very hard to hide. That word simply doesn't exist, as applied to human beings. Our buying habits can be tracked, our interests, our private lives.
Daily Bell: So from your perspective, the supposed anonymity is not the most valuable facet of bitcoin?
Jesse Heaslip: No. The most valuable element is that bitcoin does away with a large part of the friction of transactions. With bitcoin there are no time delays and no added costs. I can transfer large sums of money anywhere in the world in an instant. Compare that process to using a credit card or a bank wire or even Western Union. The end user saves time and money, and that alone makes bitcoin and related money quite valuable.
Daily Bell: There is concern that bitcoin's competition is going to come from places like Wall Street.
Jesse Heaslip: Yes, it's true that firms like Morgan Stanley are releasing their own versions of electronic money but for a lot of reasons, I don't think they fully understand the concept or the advantages of utilizing an open-source platform. Of course, if banks utilize bitcoin or a similar electronic currency, it will make them more efficient.
Daily Bell: Was the shutdown and subsequent reopening of Silk Road a good thing?
Jesse Heaslip: It was fantastic in the sense that bitcoin is not going to be identified with drug dealers and other fringe elements. In fact, Bitcoin is coming into its own as a full-fledged platform within the paradigm of modern money. Again, the issue is not anonymity for most people but the lack of friction when it comes to transactions. The convenience and global utility is what is going to make all sorts of electronic currencies more and more popular, especially bitcoin.
Daily Bell: Is there anything that can derail bitcoin?
Jesse Heaslip: I believe it is likely past the point of derailing. Governments would have to freeze bitcoin in its entirety and that's probably not going to happen. China just put the breaks on bitcoin, but we'll see how long that lasts. And even in China, it is perfectly possible to make micro-transactions. But right now the Chinese can't make large-scale purchases because the authorities won't let them.
Daily Bell: What about gold and silver? Are they good media for transactions?
Jesse Heaslip: Bitcoin is more liquid than gold and silver, and the main difficulty with bitcoin – lack of acceptance – is changing quickly. Last year there were maybe 10,000 vendors that accepted bitcoin. Next year, 100,000. The number is growing exponentially.
And bitcoin is not by any means the only electronic coin these days. As we discussed earlier, acceptance is growing all the time. You may soon see dozens or even hundreds of coins come online, each with different features and different kinds of proof of work. The proof of work can be almost anything and thus, I'd anticipate that this sort of money in a wide variety of configurations will be offered and receive acceptance. If people can make money by altering behaviors or doing something else advantageous, they will.
Daily Bell: A thousand coins will bloom?
Jesse Heaslip: Probably, and that's a nearer-term projection than you might think. Vendors will have tremendous incentives to issue coins to encourage use of their products.
Daily Bell: So the future of electronic money is commercial. That will be the driver rather than anonymity?
Jesse Heaslip: Anonymity is passé. That's simply a fact, and I'm not making a judgment about it. People should assume transparency online and conduct themselves accordingly.
Daily Bell: That's a controversial assumption, though. Many people don't like to think all their behaviors are accessible to authorities who presumably can judge them and even prosecute them.
Jesse Heaslip: I guess it works both ways. The transparency of the electronic ledger means increased efficiency. You can project that people won't have to do income taxes anymore because their financial history will be available electronically. The government could simply calculate annual taxes, send you a bill and return a refund or whatever as necessary. The whole process of tax filing could be automated.
Daily Bell: But there are negatives associated with that, too. Right now the potential for anonymity means that governments are at least a little worried about raising taxes too high because people simply won't cooperate and will seek ways to opt out, either legally or illegally. But if all transactions are recorded and transparency is universal, then maybe the governmental incentive to keep taxes at reasonable levels will vanish.
Jesse Heaslip: Possibly, but the kind of transparency we're discussing cuts both ways. Presumably, people would demand similar transparency from government and thus, even with higher taxes, if that happened, you'd get more public efficiency.
Daily Bell: We probably could debate that all day. But on another point, what is going to happen to the dollar as these electronic currencies become more popular? Will it cease to be the world's reserve currency?
Jesse Heaslip: There are certainly those within the bitcoin community who feel that way. On the other hand, there are huge opportunities to work with fiat currencies and there is no reason why electronic currencies and current fiat currencies can't coexist. One can complement the other.
Daily Bell: Presumably there are also more regulations that electronic currency will be subject to.
Jesse Heaslip: Electronic currencies are not going to exist outside of the current regulatory structure, at least not popular ones with longevity. When you look at what happens to places like Silk Road, you can see that. The authorities shut them down. On the other hand, if you are willing to work within the rules of the current structures, then there are absolutely tremendous opportunities. The deals being made in Silicon Valley are getting bigger and bigger and are starting to take place in the tens of millions. The potential has barely been scratched. One out of every 400 people in the US now has a Coinbase account.
Daily Bell: So obviously, from your perspective the future is bright for bitcoin and other alternative currencies.
Jesse Heaslip: Absolutely. We're on the cusp of explosive growth, though within more formal government parameters.
Daily Bell: We'll watch all this unfold with interest. Thanks for your time.
Jesse Heaslip: Thanks for yours.

Anthony Wile
The Daily Bell
After Thoughts
This is a pretty important interview, in our view. We thank Jesse Heaslip for his time and courtesy in sitting down with us.
We have some disagreements with the way bitcoin is evolving but as Jesse points out, people who are in the reality business when it comes to money and investing should face facts rather than letting their own sentiments sway their judgment.
What Jesse is presenting to us is pretty much the truth about bitcoin (as we see it along with him). Just as we have maintained in numerous articles, it is not anonymous – or at least it is rapidly getting less anonymous. Jesse believes the future of bitcoin is entirely transparent. Privacy, generally, as he points out, is basically a thing of the past.
Jesse also paints a picture in which electronic money shall be used in an almost Skinnerian way to incentivize certain behaviors. Again, that's a pretty scary perspective and one we're apt to disapprove of but we can't contradict his perspective. He may well be correct.
Finally, Jesse points out that the future of electronic money is under the aegis of government and that anyone who wants to play in this arena is going to have to play by government rules.
Of course, we tend to believe that bitcoin may have been set up as a kind of monetary false flag to begin with, and that what is occurring now is preordained. Whatever reasons Jesse has for being so blunt and uncompromisingly realistic are known first of all to him and his colleagues, but he has a reason for looking at bitcoin in this manner. He intends to build a business around it.
As for us, our suspicions are pretty much confirmed by this interview. We think bitcoin and other such money may indeed be the future of international finance. Turns out that perhaps IMF SDRs were simply a kind of head feint. Bitcoin may well be where the action is.
But we have reservations about it from a standpoint of free markets and competitive money. It sounds a good deal as if bitcoin will supplement the kind of monopoly central banking status quo that we have campaigned against for decades. It will be an adjunct, not a game-changer, even a reinforcer of the current monetary environment.
Bitcoin has already made many people wealthy and, as Jesse says, its main attraction right now is its frictionless element. It costs almost nothing to send bitcoins around the world. Over time, we have to point out, that may change, as well.
Thanks again, Jesse. Many of our forebodings – which we have received a good deal of criticism for – are confirmed by this interview. The idea that bitcoin may support and expand government fiscal efficiency when it comes to taxes is truly frightening to us.
But again, we've been pointing that out for a long time. That may well be why people like Margrit Kennedy -- a former UNESCO operative – have been pounding the drums for alternative monies.
We've been very clear that we believe this entire alternative anti-usury movement, with its celebration of people like Gesell and Douglas and its anti-freedom and anti-gold orientation, is a kind of elite dominant social theme. Those prominent spokespeople backing this movement often seem like military-intel types and the whole sovereign money idea puts the control of currency right back in the hands of Leviathan. Sure, the "people" are supposed to be issue out the money, but so what? Power corrupts, etc. ...
We should also note that Jesse has a pretty good business idea and is truly positioned at the beginning of a powerful trend. And to our viewers we say: Please respect the message and messenger – in this case, Jesse. He is surely an admirable entrepreneur with an interesting idea, and he has provided us with much food for thought.
Good luck, Jesse. You are obviously a visionary of sorts along with others like you. We just may not be very fond of aspects of the vision.

    Current date/time is Thu Sep 18, 2014 8:44 pm