Cash Bitcoin via ATM & BUY [email protected]% today or INVEST 20%

Worth it to invest in a BTC ATM machine? /r/Bitcoin

Worth it to invest in a BTC ATM machine? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Is it still worth it in 2020 to invest into a BITCOIN ATM?

I am looking to invest in my first BITCOIN ATM. I have some money saved up, but not sure if it's worth it. Don't know if the demand is high in my area or the earning potential for one. Any good resources for me to read up on? I am still doing my homework. Any suggestions on the machine itself. I have about $5k-6k to invest into a machine.
What is an earn potential for a machine? I live in the Los Angeles Area.
submitted by MarkBLeee to Bitcoin [link] [comments]

Spending Crypto in Real World

Spending Crypto in Real World

https://preview.redd.it/ex0q76e0eg651.jpg?width=1280&format=pjpg&auto=webp&s=f37a60cd573c3880a40b6fd2057a7b11b6051314
Is it possible to use cryptocurrencies in everyday purchases? This is one of the biggest questions that people with zero knowledge in cryptocurrencies are curious about.
Cryptocurrencies are designed to function like all the other physical currencies that people use today. The only difference with cryptocurrencies is you have the choice to decide whether to solely manage your assets without the need of banks, a central authority, or a crypto exchange or wallet. In cryptocurrency, you have the power to make your own decisions.
How will I make my very first purchase using crypto? A few years ago, spending cryptocurrencies was not easy and not accessible to anyone. Remember the Bitcoin Pizza Day Story? It opened the possibility of using cryptocurrencies in everyday transactions.
At present, there are a number of ways where cryptocurrency can be spent. Service providers are offering hassle-free crypto to fiat conversions. To name, these services are:
Bitcoin or Crypto ATMs
At present, there are a total of 7,962 Bitcoin ATMs worldwide. Bitcoin ATMs allow cryptocurrency users to withdraw cash using their private keys or via a crypto debit card. Some crypto ATMs also allow buying and selling of cryptos directly on the machine. Using Bitcoin ATMs are a fast way to get traditional money on hand. However, due to the limited availability of these machines, only a few crypto users can enjoy it.
Software Crypto Wallets
Signing up in a cryptocurrency wallet is convenient for users with multiply types of cryptocurrencies. However, not all cryptocurrency wallets allow their users to spend crypto to fiat easily. The types of wallets that allow these transactions are mostly software wallets or wallets connected to the internet, such as web, desktop, and mobile wallets. Depending on the chosen wallet, some help users manage multiple cryptocurrencies, and at the same time, convert crypto to fiat easily within the applications.
Crypto to fiat debit cards
There is a variety of crypto to fiat debit cards available in the market today. Normally, some of these are tied-up with crypto wallets for a more seamless conversion and transaction. The advantage of using crypto to fiat debit cards is that you can use it at establishments where debit cards are accepted. The debit cards will automatically convert your cryptocurrencies to fiat, and the user’s wallet will be deducted based on his or her crypto balance.
Swipe Wallet and Debit Cards
Swipe is a multi-asset digital crypto wallet application that allows users to buy, sell, and spend cryptocurrencies instantly. It is also tied-up with a Visa debit card which allows users to spend their cryptocurrencies anytime and anywhere. In order to reach more users, it has partnered with notable institutions such as Apple Pay, Google Pay, and recently, Samsung Pay, to make purchases within the app and cards easy.
With the presence of companies that continues to help to achieve worldwide access to crypto, a lot of never-imagined services in the industry are slowly being introduced. Years ago, people looked at cryptocurrencies as a mysterious and too technical form of investment. Now more are venturing in the industry with the hopes of having easier financial transactions and full control of their assets.
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This blog article is also posted at https://sw.pe/blogspendcrypto
submitted by SwipeWallet to Swipe_io [link] [comments]

Stellar The Biggest Cryptocurrency since Bitcoin? 1 year later!

Special consideration and appreciation to 87Crypto for all the research and investment into most of this article, this flashback was and is very much on point perfectly.

My input and addition I believe will be the future of Stellar Lumens (XLM) and I don't think the bears can stop it.. With the works economy crashed because of the pandemic, countries are looking at making precious metal backed Cryptocurrencies.... Major banks are rushing to make the technology improvements to accommodate this change, and it is happening very rapidly..


To the world from REDDIT user 87Crypto:

Stellar The Biggest Cryptocurrency since Bitcoin?
Ok everyone, feel free to tell me I'm crazy and delusional on my idea of Stellar being the biggest Cryptocurrency since Bitcoin.

In 2014, Nasdaq launched a separate company, Nasdaq private market which partnered with a San Francisco based Blockchain startup company called Chain to test Bitcoin technology. Part of this testing included digital transfers of money and other assets securely and nearly instantaneously which is something the current system is incapable of doing so seamlessly. Additional features included the transfer of securities directly between asset managers, to serve as a secure ledger for tracking assets across divisions of a large organization, enable a next-generation mobile banking solution, create a loyalty points system for a consortium of brandsto issue digital gift cards onto a network that can support multiple wallet vendors, create automated insurance contracts, and issue central bank currencies digitally to improve the payments system in any country. In October 15th, 2017 IBM chose the Stellar Blockchain to power the process of cross-border payments. This partnership was to significantly reduce transaction costs and increase transaction speeds whilst eliminating the inefficiencies and frustrations of the current cross-border payments system. January of 2018, Former Chain president, and Goldman Sachs Managing Director of technology and Business Development became the Head of Corporate Business Development for the Newly launched digital arm of Fidelity. Now this is getting more and more obvious as to what is going on. The same group of people are involved in all these financial institutions. On September 4th, 2018 IBM Debuted Blockchain World Wire (BWW). This platform was created to not only improve the cross-border payment system but to revolutionize the entire financial system. This ecosystem allows assets to be freely transported to any region of the world without the necessity to exchange currencies prior to doing so. Blockchain world wire utilizes the Stellar native token, the Lumen, as a form of exchange, as well as gas for low transaction fees. One of the brilliant aspects of BWW is the fact that the Lumen can be converted to as many as sixty currencies and according to Jed McCaleb even stocks can be transferred within the ecosystem. These currencies vary from the current fiat system, to cryptocurrency, 1:1-dollar ratio Stable coins and central bank digital cryptocurrencies. Just six days later, on September 10, Blockchain Start up and Nasdaq partner merges with Steller’s start up named Lightyear. This merger formed Interstellar to bring Chain's enterprise products of digital asset transfers, seamless tracking of these assets, as well as their customer base to the Stellar blockchain. On the other side of the IBM / Stellar partnership, IBM was working closely with The Official Monetary and Financial Institutions Forum (OMFIF) on central bank cryptocurrencies. The OMFIF is an independent think tank for central banking, economic policy, and public investment with a collective of investable assets equating to $36 trillion dollars which is equivalent to 45% of the worlds GDP. I don’t know about you but that gave me goosebumps. The magnitude of the Stellar blockchain is just unreal. We are talking about Stellar having the potential to take over not just the cross-border payments market but will also play a massive role in asset tokenization which would revolutionize Wall St. Itself. On October 13th, 2018 Stellar partnered with SEC approved Security token exchange platform Hyperion. This exchange is the first platform in north American for security tokens. This provides investors the ability to exchange digital security tokens using blockchain technology with significantly lower fees as well as more efficiently than the traditional stock market. In addition to that, Hyperion signed an MOU with Kinesis Money, a company offering a unique system solely on digital gold and silver currencies. This unique form of tokenizing gold and silver as a 1:1 allocation to those assets as a stable coin is just further proof that everything will be tokenized on the blockchain. Ok, there’s a few more things to discuss. This is what institutions are calling open banking. Open banking is a system where banks can use the open source Application Programming Interfaces (APIs) to allow 3rd party developers applications around financial institutions. A partner of IBM that is leading the way of open banking is HSBC. Due to this strong relationship it is very likely they will use the Stellar Blockchain to issue digital assets. Speaking of partnerships and 3rd party developers, let's discuss yet another huge part of the puzzle that is Stellar.

On October 28th, 2018 the largest bank of the United states J.P Morgan financed a $34 billion-dollar loan to IBM for the acquisition of the world’s largest hybrid cloud provider, Red Hat. This purchase was purposely executed to become the #1 hybrid cloud provider in the world. Red hat fits the perfect description of the 3rd party required for HSBC to implement its Open banking and eventual issuance of digital currencies through the Stellar Blockchain. In case you were wondering why I made a point to mention J.P Morgan and their massive loan to IBM when I could have simply left them out, we'll circle back because it is important. On December 4th, 2018 we closed out the year with Fidelity and Nasdaq Ventures investing in cryptocurrency exchange Eris X. As Previously mentioned, Former president of blockchain start up Chain, Tom Jessup relocated to Fidelity which is a partner of Nasdaq in this cryptocurrency exchange Eris X. Tom Jessup was president of Chain during the time they partnered with Nasdaq. What I am pointing out is that all these top institutional companies are working together one way or another and it is clear as day something massive will be announced March 19th as I mentioned before. As we look back at all the moving parts, I can’t help but think that IBM and Stellar will revolutionize the stock market itself through all their partnerships directly or indirectly, more importantly due to Blockchain World Wire and its capabilities. This is truly incredible. But that's still not all just yet. J.P Morgan financing the $34 billion dollars to IBM was strategic. Well, what do you know, On February 14th of this very year, J.P Morgan launched their own US bank-backed cryptocurrency coin and as Jesse Lund, head of IBM Blockchain previously mentioned, Blockchain World Wire would allow up to 60 world currencies and even stable coins which is exactly why J. P. Morgan created their coin. All of this has led us to the Singapore Money 20/20 event of March 19th, 2019. All the pieces of the puzzle seem to be in place and I honestly can not find evidence to prove anything otherwise. Stellar has all the qualifications, attributes and partnerships to not only be one of the biggest cryptocurrencies in the world but to become the Blockchain of the financial world. Please give me your thoughts.
From: 87Crypto May, 2019

Now 1 year later :Everything is in place, all currencies are at an all time low because of the worldwide pandemic last month...
It is time, time to grow this machine!

We need a Stellar Lumens based "ATM" program that runs on Debian. Something that can be dropped into almost all "ATM" platforms. This would give instant international bank transactions from any bank to any bank. It could use Stripe or BWW directly, because of the existing Stellar Commitments, and Charge it's own processing fees set by the ATM provider.

Let's get this marketed to every ATM provider there is and push the market, this is the environment for bank integrations and will reduce ATM fees to the end user.. Even at $1 per average transaction that is an average savings of $1.50 per transaction from an average ATM... Banks will pay attention, then every user will see the message "Your transaction was proudly transferred to you with the Stellar Lumens (XLM) network, in coordination with BWW or Stripe, and" insert ATM COMPANY NAME "....This same environment would be used as the backbone of the merchant P.O.S. machines for credit card and debt transactions.
Thank you for reading..

The most cryptocurrency ever lost, was not from investments it was from inoperable or unrecoverable wallets. Stay safe my friends.
submitted by Uber1ife to xlm [link] [comments]

Nearest GetCoins Bitcoin ATM in Ferndale, Michigan

if you searching for the nearest bitcoin ATM machine in Ferndale, Michigan? Just download the get coins wallet app on your mobile. We providing a top secure way to invest money in digital currencies. The easiest way to selling bitcoins by interfacing with their financial balances.
submitted by evergreenatmgetcoins to u/evergreenatmgetcoins [link] [comments]

Nearest Bitcoin Machine Roseville MICHIGAN - GetCoins

Nearest Bitcoin Machine Roseville MICHIGAN - GetCoins

https://preview.redd.it/ue7etpclitp41.jpg?width=400&format=pjpg&auto=webp&s=7457b6052641432042b19da9d593289a3cd9f65b
Getcoins provides the most secure way to invest in Digital Currencies across the United States. Find the Nearest Bitcoin ATM Machine in Roseville MICHIGAN, United States. Stay tuned for updates!
submitted by evergreenatmgetcoins to u/evergreenatmgetcoins [link] [comments]

A question on numbers and verification.

I don’t know exactly how to phrase this. I’ve “used” google voice for a long time. Realistically, only for apps and services I don’t want to have my real phone number. It works well, seemingly, for most things. HOWEVER, the other day I tried to buy some bitcoin from an ATM machine, and it didn’t accept the google voice number. I’m only using this as an example because it’s the only specific one I remember, but it’s happened a lot before: A service wouldn’t let me continue with the google voice number. However, I could usually just end up verifying with my home phone.
Here’s I guess the start of my long, and stupid question: Today my landline phone jumped up to $80 a month, and not only has it not been working for the past 3 months, I clearly don’t use it other than those verifications that won’t work with google voice and appointments for my grandfather. (This part has been a hassle due to the home phone not working.) So, today I cancelled it. This kind of leaves me boned for verification purposes. Is there any way or loop hole around this so I can use google voice?
I did some research prior to me asking this; specifically on magic jack, because back in our dial up days, we used magic jack to a while for similar purposes. I heard about obi and gv, would like to give that a shot. I live and take care of my Grandfather who is disabled from his time in the army, due to this he is SUPER hard hearing. If it wasn’t for this, I’d probably just have a prepaid flip phone on the wall; As we have invested quite a bit on some landline phones that he would be able to hear.
During my research I did end up remembering that you could port a number to google voice. So, for part two of my stupid question: if I were to head to Walmart and get a cheap prepaid burner to port over, I know that changes ownership of the number. What are the technicalities of that? Would these services still know it’s a google voice number?
submitted by bbdylanjlee to Googlevoice [link] [comments]

IQ stock broker is a Forex & bitcoin Company in USA Founded in 2012 by a team of highly motivated professionals who are very passionate about trading on the world’s financial market, and are keen on empowering

Bitcoin, Cryptocurrency, forex, make money, online trade, stock exchange
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This makes it easy to trade from anywhere… at any time. You don’t need to have any previous trading experience to get going. It is as easy as 1-2-3. The interface is remarkably user friendly. We have worked hard to ensure processes are fast and intuitive. Using our platform, customers can trade on options such as currencies, indices, stocks and commodities round the clock. We provide the most flexible pricing and the most suitable options on the market among all the Forex & Bitcoin companies in USA. Our objective is to make the trading process as simple and profitable as possible for all level of trader. Our team consists experienced professionals with backgrounds in binary trading, derivatives, risk management, payment processing as well as international laws and legislation. Contact us for Bitcoin, Cryptocurrency, forex, make money, online trade, stock exchange. IQ stock broker is listed in American Stock Exchange.
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submitted by IQstockbroker to u/IQstockbroker [link] [comments]

I Got Scammed by the Cryptocurrency Exchange EZBTC.CA

I wanted to make this post of my experience as a warning to others, especially Canadians as they have limited buying options when investing (speculating) into cryptocurrencies. I understand the subject of cryptocurrencies are polarizing to many, but nonetheless, it's an emerging asset class that deserves discussion because there are many ways to lose your funds. This isn't the fault of cryptocurrencies themselves, but the result of user error, outright scams, social engineering, hacks, or in my case not being up-to-date on current events.

There are many scams in cryptocurrencies, but shady exchanges are a classic dating back to the legendary Mt. Gox hack where 850,000 Bitcoins were stolen (worth approximately $4.6 billion at the time of this writing). Or the most recent Canadian QuadrigaCX exchange hack where the CEO allegedly died in India carrying the only private key to 200 million worth of customer funds.

It seems that exchange hacks keep propping up in the news, so why then do they keep happening even in 2019? Because users are left with limited choices if they want to acquire cryptocurrency in the safest (ironic) and most convenient manner. In order to buy cryptocurrency, you first have to exchange it for fiat currency (USD, CAD, EUR). You could buy cryptocurrency from one of those Bitcoin ATMs you see at the mall but the fees are exorbitant and quite a few require ID as it is, so why not just sign up for an exchange instead? The next option is to buy them peer-to-peer in person for cash, but people feel unsafe dealing with strangers and large amounts of money. Further, liquidity would be an issue. This led to a boom of many cryptocurrency exchanges offering customers a place to buy and sell with the exchanges acting as the middle-man between users.

I've been away from cryptocurrency for a while and only came back recently. I've used the EZBTC exchange in the past without issues and decided I would use them again. What I didn't do upon my return was my homework on any updates/news regarding this exchange which resulted in my ordeal now. I noticed the website had an overhaul that now includes an express option for you to receive faster withdrawals if you deposited larger amounts (first red flag). I opted for the regular option I always used in the past and sent a small amount via eTransfer that was deposited in my account almost immediately (second red flag). In the past, my eTransfers regardless of amount took some time and up to many hours. Nonetheless, I made a purchase and initiated a withdrawal request that still hasn't been sent out to this day, and I am not the only one.

A condensed version of my story is that I got worried about my pending withdrawal with EZBTC and my emails/calls went unanswered. The live chat on their website was also disabled. I decided to tweet my situation to @ezBtcCanada and immediately got an email from the owner David Smillie himself urgently telling me to call him on a personal number. He deverified and suspended my account as a result of my tweets @tokenflair for "security reasons". After some talk (me saying I'll delete the tweets) he immediately reactivated and reverified my account again and said that my withdrawal will be taken care of the next day.

Fast forward to the next day and my withdrawal is still pending. Calls/texts/email go unanswered again. Live chat is still disabled. I proceed to send another tweet instead. Like clockwork, I get a response from David shortly after and he was livid. He threatened to sue me for defamation if I continued posting about my situation on public forums. I told him I'll be waiting for his letter. He stated that my account would be receiving a lifetime ban and I will not be receiving my withdrawal but I would get an eTransfer refund in 30 days, and all this information would be included in an email I was supposed to receive on Monday April 22, 2019. I still have not received any such email, and my emails/call/texts to him are again being ignored. The saga continues.

The most important piece of advice I can give when it comes to cryptocurrency is that what's true today, is not true tomorrow. You must stay up-to-date on current events in cryptocurrency because your investment could be at stake. In my case, EZBTC was exhibiting red flags and had many user complaints that I would have seen had I just done some research prior to sending my money. I was not up-to-date regarding the status of this "exchange".

David Smillie (owner of ezbtc.ca) operating under business # 1081627 B.C LTD. currently has 5 ongoing lawsuits against his company for unpaid funds:

  1. File number: 1812420 - GOLDLUST, Joseph v 1081627 B.C. LTD. - Supreme Civil (General)
  2. File number: 1963965 - ROBERTS, John v 1081627 B.C. LTD. - Provincial Small Claims
  3. File number: 172818 - GODWIN, Richard v 1081627 BC LTD - Supreme Civil (General)
  4. File number: 18104 - MCCALLUM, Evan v 1081627 BC LTD - Provincial Small Claims
  5. File number: 1862507 - WONG, Gary v 1081627 BC LTD. - Provincial Small Claims

You can get the latest information on all pending lawsuits against EZBTC here:
https://justice.gov.bc.ca/cso/esearch/civil/partySearch.do

List of numerous complaints against David Smillie and EZBTC:

https://files.fm/f/23ej52ff (David Smillie sued by Richard Godwin)

https://np.reddit.com/BitcoinCA/comments/bahzsm/another_bc_lawsuit_filed_against_ezbtc_1081627_bc/ (David Smillie sued by John Roberts)

https://np.reddit.com/BitcoinCA/comments/99fs6i/2_new_court_filings_against_ezbtc_in_the_past_week/ (More lawsuits)

https://np.reddit.com/BitcoinCA/comments/8mjtjb/amaa_exowner_of_ezbtc_resigned_when_i_realized_it/ (Ex-CTO of EZBTC blows whistle)

https://np.reddit.com/BitcoinCA/comments/b53zq3/please_sticky_this_post_im_a_developer_who_worked/ (EZBTC developer blows whistle)

https://np.reddit.com/BitcoinCA/comments/939ce2/40_days_and_counting_fiat_withdrawal_ezbtcca/

https://np.reddit.com/BitcoinCA/comments/926adi/ezbtcca_may_have_gone_bust_toronto_offices_have/

https://np.reddit.com/BitcoinCA/comments/973yrz/ezbtcca_is_likely_insolvent/

https://np.reddit.com/BitcoinCA/comments/98njea/worth_visiting_ezbtc_offices/

https://np.reddit.com/BitcoinCA/comments/901847/concern_regarding_ezbtc/

https://np.reddit.com/BitcoinCA/comments/9181nx/banned_from_ezbtcca_chatroomhave_not_rcvd/

https://np.reddit.com/BitcoinCA/comments/arnboh/ezbtc_will_my_girlfriend_ever_see_her_money/

https://coiniq.com/ezbtc-review/

https://np.reddit.com/BitcoinCA/comments/ao680q/what_are_customers_latest_experiences_with_ezbtc/

https://warosu.org/biz/thread/10773849

https://np.reddit.com/BitcoinCA/comments/bfqrv1/fortune_jack_here_regarding_david_smillie_and/

https://np.reddit.com/BitcoinCA/comments/b57fq9/ezbtc_terms_of_service_wayback_machine/

https://np.reddit.com/BitcoinCA/comments/arfa5x/ezbtc_is_so_fake_check_this_out/

https://np.reddit.com/BitcoinCA/comments/95rpl5/to_those_staying_silent_for_ezbtc_defamation/
submitted by TokenFlair to PersonalFinanceCanada [link] [comments]

B(TC)itcoin is slow || My small and humble contribution

https://panzadura.github.io/B(TC)itcoin-is-slow/itcoin-is-slow/)

This is my small and (very) humble contribution: *English is not my first language so I apologize for spelling mistakes and inaccuracies.

B(TC)itcoin is slow

Bitcoin is slow because the block size was left at 1MB - 2MB with Witness Data on the SEGWIT network - after throwing the entire "team" developer of GitHub and being occupied by developers of what is now known as Blockstream.
This size has been maintained and keeps referring to two issues: Mining in China and the decentralization of the nodes or transaction validators that you point out in the article.

Mining in China occupies a good part of the pie that miners distribute - in turn these are the ones that confirm the transactions and undermine the blocks - since 2011 and these Chinese farms are behind something that in the West call "The Great Firewall "that prevents a stable connection and slows down the propagation of the block, its mining and confirmation of the transaction over 3 minutes [1] [2] causing a large part of the mining coming from China and therefore the power of 'Hash' decreased drastically affecting the security of Bitcoin; The less Hash the greater the possibility of being attacked by the Bitcoin network through a 51% attack that could cause double spending - although this gives rise to many debates since the 51% attack on an already "mature" network like Bitcoin requires a Considerable expenditure on mining equipment to control 51% of the mining power and receiving the block reward and the commissions for confirmed transfer on each block would make it less likely that said miner or mining group would like to make a double expense upon receiving sufficient economic compensation. So only a malicious agent with the intentions of destroying the network and assuming the total losses on the investment of equipment would be willing to carry out such operation. Possibilities exist but these are reduced by being the miner compensated for their activity.

In the same references to Chinese mining farms but in another more economical field; Bitcoin has 21 million that are obtained through mining and commissions on transfers. These 21 million are achieved over time and from there it becomes a deflationary element as there is no possibility of printing more coins. The question of the Bitcoin block costly and the influence of Chinese mining goes through the Bitcoin subsidy or, currently called as, block reward: When a miner puts a block in the chain he receives the Bitcoin reward that is "inside" "of that block and which is currently encrypted in 12.5. Every 210000 blocks the reward is reduced by half so in less than a year (312 days from today [3]) it will be reduced to 6.25 so the miners will see their subsidy fall in half unless Bitcoin's price per coin increases considerably or the mining farms begin to close or reduce mining equipment thus decreasing the power of the network's Hash. If Bitcoin reduces by half every 210000 blocks the subsidy per block to miners will come a time when they can only live and maintain their equipment for transaction fees and in a Bitcoin network with 7 transactions per second and a commission that tends to Increase the higher the number of movements in it makes it unfeasible for miners to continue in said 1MB network and above all that people want to use this payment method that is expensive and slow - more even than gold paper - Because remember that Bitcoin born as Peer 2 peer cash, not gold-.
Therefore, if in time the subsidy or reward is going to be 0 or unable to cover the mining equipment expense, it is necessary to find a solution if the developers do not want to touch the block size. And this goes through three issues already raised in BIPs and about the community: RPF (Replace By Fee), Lightning Network and Increase in the number of Bitcoin since the demand for Bitcoin does not rise because it offers a quality service but for security and above all for the manipulation of Tether (USDT) and the large exchange houses:

- The RBF consists in the substitution of a transaction without confirmations for another that would replace it with a higher commission eliminating the previous one of the mempool - the limbo of the transactions to be confirmed in Bitcoin -. Although this system seems effective, it does not eliminate the long-term problem of continuing to maintain the reduced block, but rather removes the problem of financing miners, but does not eliminate it and, above all, kills the operation of Bitcoin transactions by not eliminating the increase in commissions that would distance the user from its use. In addition to more easily allowing double spending [4] [5].

- Lightning Network is a side-chain or second layer, that is, a software development not implemented in the Bitcoin network itself and therefore is not an element of the block chain so this should already be repudiated since being a External and non-auditable element such as Bitcoin gives rise to "blanks" and therefore lack of existence and possibility of auditing accounts [6] and even the loss of money or cancellation of the transaction [7] [8]. It also faces the problem of routing since in a network in constant change with the openings and closures of payment channels it is unfeasible to establish a total and rapid diffusion to the nodes of LN - other than those of Bitcoin - so it comes into play Another new element of this network is the watchtowers in charge of ensuring compliance in open channels and over the entire LN network of payments. Obviously it requires an additional cost to hire this service and it is not yet implemented [9] and taking into account the pace at which Lightning Network is developed, it is doubtful that it will become available [10]. In short, to use properly - which is not successful - LN you need a node valued at $ 300 [11], a watchtower, have a channel open 24/7 and with sufficient funds to carry out transactions [12] [13] [14] .

- The increase in the Bitcoin offer was raised fleetingly by developer Peter Todd [15] [16] and will become an open debate in a few years when the mining block reward is low and the price of Bitcoin cannot be sustained only with uncontrolled printing of Tether and the manipulation on the price of the currency [17] [18] next to the collusion of the exchange houses headed by BitFinex [19] and personalities of the world 'crypto' [20] - if he survives long enough to see that moment since they are already behind Bitfinex for money laundering [21]. When that moment arrives I am sure that a BIP - Bitcoin Improvement Proposal - will be launched by Blockstream or directly notified of the measure destroying the essence of Bitcoin and the TRUE DECENTRALIZATION: THE PROTOCOL.

This brings us to the second reason for the slowness of Bitcoin. The correct and true decentralization goes through the code and the team of developers and maintainers, not any other. The protocol must be engraved in stone [22] and that the action of the miners distribute and decentralize the network and they maintain the nodes and the transactions in a completely capitalist economic relationship. Investing in machines and communication improves access, speed and spread of transactions and blocks and makes miners true competitors as well as facilitating the transmission of money and all kinds of transactions [22].
The decentralization of the nodes was the other great reason to prevent the increase of the block and therefore the speed in the transaction. It is based on a false premise to base the decentralization of Bitcoin - which is nowhere on the whitepaper - on the raspberry nodes. The dispersion of the transaction and all the stages of the transaction and the blocks depend on the miner and his team, as well as the search for excellence in communications to avoid orphan blocks - which are stipulated in the Nakamoto consensus and are part of Bitcoin and not they throw no problem in the transactions only in the resolution of the reward of the block that affects the miners and should seek greater efficiency - and reorganizations. The audit on the Bitcoin network can be perfectly performed without there being a Bitcoin node in each house, in fact it would cause the same routing problems that occur / will occur in the LN network.
Decentralization should not go through nodes but through developers and to a lesser extent by miners. If a protocol is continually being altered by developers they have the power of the network and it must be in constant struggle by the miners through the commission on transactions.

Due to these two factors, the BIP0101 proposed by the developers that Satoshi left in charge [23] and that originated the creation of Bitcoin Unlimited was rejected, later it was attacked due to its recent creation through DDoS attacks in a statement of intentions of the network Blockstream bitcoin [24] [25] remaining as a residual element.

These two reasons are the cause of the drowning suffered by the Bitcoin network - including many other elements that were eliminated and that corresponded to the initial code completely changing the nature and destiny of Bitcoin that are not relevant and I will not enumerate -, Any other reason is propaganda by those who want to keep Bitcoin drowned in order to enrich themselves with mining sub-subsidies and second-layer software like LN. Bitcoin has a structure similar to gold and can collect certain attributes of it but its destination in efficient and fast transmission as effective - among other transactions.

Bitcoin was designed to professionalize miners and create a new industry around them, so mining centers will become datacenters [26] and they will replicate all transaction logs and even this professionalization will eventually lead to specialization in other types of transactions born new industries around you that will support the nodes according to specialization - Data, asset transfers, money, property rights, etc ... -

Bitcoin scales to infinity if they leave the protocol FREE enough to do so.

P.D: Core, since the departure of Hearn and Andersen, they know perfectly well what they are doing: The worst breed from the Cyberpunk movement has been combined with the worst breed of the current synarchy; The ends always touch.

[1] https://np.reddit.com/btc/comments/3ygo96/blocksize_consensus_census/cye0bmt/
[2] https://www.youtube.com/watch?v=ivgxcEOyWNs&feature=youtu.be&t=2h36m20s
[3] https://www.bitcoinblockhalf.com/
[4] https://petertodd.org/2016/are-wallets-ready-for-rbf
[5] https://www.ccn.com/bitcoin-atm-double-spenders-police-need-help-identifying-four-criminals/
[6] https://bitcointalk.org/index.php?topic=4905430.0
[7]https://www.trustnodes.com/2018/03/26/lightning-network-user-loses-funds || https://www.trustnodes.com/2019/03/13/lightning-network-has-many-routing-problems-says-lead-dev-at-lightning-labs
[8] https://diar.co/volume-2-issue-25/
[9] https://blockonomi.com/watchtowers-bitcoin-lightning-network/
[10] https://twitter.com/starkness/status/676599570898419712
[11] https://store.casa/lightning-node/
[12] https://bitcoin.stackexchange.com/questions/81906/to-create-a-channel-on-the-lightning-network-do-you-have-to-execute-an-actual-t
[13] https://blog.muun.com/the-inbound-capacity-problem-in-the-lightning-network/
[14] https://medium.com/@octskyward/the-capacity-cliff-586d1bf7715e
[15] https://dashnews.org/peter-todd-argues-for-bitcoin-inflation-to-support-security/
[16] https://twitter.com/peterktodd/status/1092260891788103680
[17] https://medium.com/datadriveninvestotether-usd-is-used-to-manipulate-bitcoin-prices-94714e65ee31
[18] https://twitter.com/CryptoJetHammestatus/1149131155469455364
[19] https://www.bitrates.com/news/p/crypto-collusion-the-web-of-secrets-at-the-core-of-the-crypto-market
[20] https://archive.is/lk1lH
[21] https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=8W00ssb7x5ZOaj8HKFdbfQ==
[22] https://bitcointalk.org/index.php?topic=195.msg1611#msg1611
[23] https://github.com/bitcoin/bips/blob/mastebip-0101.mediawiki
[24] https://www.reddit.com/bitcoinxt/comments/3yewit/psa_if_youre_running_an_xt_node_in_stealth_mode/
[25] https://www.reddit.com/btc/comments/3yebzi/coinbase_down/
[26]https://bitcointalk.org/index.php?topic=532.msg6306#msg6306"
submitted by Knockout_SS to bitcoincashSV [link] [comments]

I'm trying to put together a list of what's coming out this year. Have this very simple list so far. Anyone care to add anything or suggest some better dates?

Latest News (most recent first) - Instant channels enable safe Lightning payments with unconfirmed funding Beta - Feb 10, 2019 - Voyager, New trading app from Uber & E-Trade execs announce launch date - Feb 9, 2019 - bumi/blockstream_satellite ruby gem for the Blockstream Satellite API - Feb 8, 2019 - New Zap Desktop 0.3.4 is out. New features, massive performance - Feb 8, 2019 - New release: @lightning desktop app v0.4.0-alpha - Feb 8, 2019 - valerio-vaccaro/Liquid-dashboard - Feb 7, 2019 - Japanese SBI Holdings will allow trading of coins - March 2019 - lnd v0.5.2-beta released - Feb 6, 2019 - Koala studios launches online LN gaming platform - Feb 6, 2019 - Independent Reserve has become the first #crypto exchange in Australia to be insured, with coverage underwritten by Lloyd's of London. - Feb 6, 2019 - Coinbase announces BTC support for their mobile (keep your own keys) wallet - Feb 6, 2019 - Blockstream published a new open source Proof of Reserves tool. - Feb 5, 2019 - RTL release v0.1.14-alpha - Feb 5, 2019 - dr-orlovsky/typhon-spec spec for new trestles side chain published - Feb 5, 2019 - Payment requests coming soon to BTCPay. - Feb 5th, 2019 - Kraken Acquires Futures Startup In Deal Worth At Least $100 Million - Feb 5th, 2019 - Next Blockchain cruise scheduled for June 9-13 - Feb 4, 2019 - Work on a GoTenna plugin to Electrum wallet in progress - Feb 4, 2019 - Bitcoin Candy Dispensers being open sourced - Feb 4, 2019 - New release of JoinMarket v0.5.3 - Feb 4, 2019 - Prime Trust won’t charge its clients to custody digital assets any longer. - Feb 4, 2019 - nodogsplash/nodogsplash wifi access using LN - Feb 3, 2019 - @tippin_me Receive tips using Lightning Network adds message feature - Feb 3, 2019 - Bitcoin-for-Taxes Bill in NH Unanimously Approved by House Subcommittee - Feb 3, 2019 - Full support for native segwit merged into bitcoinj - Feb 3, 2019 - Bitfury is partnering with financial services firm Final Frontier! - Feb 2, 2019 - Now you can open #LightningNetwork channels in @LightningJoule - Feb 2, 2019 - Integrating Blockstream’s Liquid payments on SideShift AI - Feb 1, 2019 - Wyoming legislature passes bill to recognize cryptocurrency as money - Feb 1, 2019 - Casa is open sourcing the code for the Casa Node - Feb 1, 2019 - Casa Browser Extension released - v0.5.2-beta-rc6 of lnd, full release getting very close now - Feb 1, 2019 - Tallycoin adds subscriptions and paywall features in bid to rival Patreon - Jan 31, 2019 - Static channel backup PR merged into LN - Jan 31, 2019 - The NYDFS grants another Bitlicense to ATM operator - Jan 31, 2019 - @pwuille currently proposing the “MiniScript” language to describe BTC output locking conditions for practical composition - Jan 31, 2019 - Fidelity is in the “final testing” phase for its new digital asset business - Jan 31, 2019 - Hardware wallet PR #109 just got merged so that @Trezor no longer requires user interaction for PIN - Jan 31, 2019 - CBOE, VanEck & SolidX filed a new & improved bitcoin ETF proposal. - Jan 31, 2019 - Casa Node code is now open sourced - Jan 31, 2019 - Next Bitoin halving in roughly 497 days - Jan 31, 2019 - BTCPay released 1.0.3.53 - Jan 31, 2019 - @binance now lets users purchase cryptos using Visa and Mastercard credit. - Jan 31, 2019 - Bitfury to Launch Bitcoin Operations in Paraguay - Jan 31, 2019 - Coinbase introduces very generous affiliate program - Jan 30, 2019 - DOJO Trusted Node bitcoin full node. Coming Early 2019 - Jan 30, 2019 - FastBitcoins.com Enables Cash-for-Bitcoin Exchange Via the Lightning Network - Jan 30, 2019 - TD Ameritrade says clients want cryptocurrency investment options - company plans major announcement in 'first half of 2019' - Jan 30, 2019 - Storage component of Fidelity's @DigitalAssets live, with some assets under management, @nikhileshde - Jan 29, 2019 - lightning mainnet has reached 600 BTC capacity - Jan 29, 2019 - Drivechain shows picture of Grin side chain and suggests might be ready in 2 month - Jan 29, 2019 - Lightning labs iOS neutrino wallet in testing stage now - Jan 29, 2019 - Aliant offering cryptocurrency processing free-of-charge - Jan 29, 2019 - Chainstone’s Regulator product to manage assets on the way - Jan 29, 2019 - Fidelity Investments’ new crypto custody service may officially launch in March. - Jan 29, 2019 - Gemini's becomes FIRST crypto EXCHANGE and CUSTODIAN to complete a SOC 2 Review by Deloitte - Jan 29, 2019 - Iran has lifted the ban on Bitcoin and cryptocurrency - Jan 29, 2019 - Confidential Transactions being added into Litecoin announcement - Jan 28, 2019 - http://FastBitcoins.com Enables Cash-for-Bitcoin Exchange Via the Lightning Network - Jan 28, 2019 - Germany’s largest online food delivery platform now accepts btc - Jan 27, 2019 - Launching a Bitcoin Developers School in Switzerland - Jan 27, 2019 - RTL release v0.1.13-alpha Lightning Build repository released - Jan 27, 2019 - The first pay-per-page fantasy novel available to Lightning Network. - Jan 27, 2019 - Numerous tools become available to write messages transmitted with Blockstream Satellite - Jan 26, 2019; - BTCPay 1.0.3.47 released - Jan 26,2019 - WordPress + WooCommerce + BTCPay Plugin is now live - Jan 25, 2019 - Juan Guaido has been promoting #Bitcoin since 2014 is new interim president of Venezuela - Jan 25, 2019 - Morgan Creek funds @RealBlocks - Jan 25, 2019 - Coinbase integrates TurboTax - Jan 25, 2019 - Robinhood received Bitlicense - Jan 25, 2019 - Anchor Labs launches custody - Jan 25, 2019 - NYSE Arca files w/ @BitwiseInvest for BTC ETF approval - Jan 25, 2019 - South Korea, Seoul, Busan & Jeju Island currently working to create pro crypto economic zones. - Jan 25, 2019 - valerio-vaccaro/Liquid-dashboard - Jan 25, 2019 - Bermuda to launch crypto friendly bank - Jan 25, 2019 - Mobile Bitcoin Wallet BRD Raises $15 Million, Plans for Expansion in Asia - Jan 25, 2019 - BullBitcoin rolling out alpha access of platform - Jan 25, 2019 - Electrum Wallet Release 3.3.3 - Jan 25, 2019 - Bitrefill, purchase Bitcoin and have it delivered directly over LN - Jan 25, 2019 - South Korean crypto exchange Bithumb looking to go public in USA - Jan 24, 2019 - Bitcoin Exchanges Don’t Need Money Transmitter Licenses in Pennsylvania - Jan 24, 2019 - US; New Hampshire Bill Aims to Legalize Bitcoin for State Payments in 2020 - Jan 24, 2019 - Robinhood, LibertyX Receive Licenses from New York Regulators - Jan 24, 2019 - Bakkt Bitcoin futures contract details released - Jan 24, 2019 - Blockstream CryptoFeed V3 now includes 30+ venues and 200M+ updates per day - Jan 24, 2019 - Binance Jersey – The Latest Binance European Exchange - Jan 2019
Commit Activity
Nodes and Market Dominance
Bitcoin
Financial
Lightning:
ASIC Miners:
Will update this section when I hear new developments
Wallets:
Hardware wallets:
LN
LN Apps:
LN Extensions / Launchers
LN Desktop wallets:
LN Mobile wallets:
LN Network:
LN Nodes:
LN Plugins:
LN Services:
Liquid Network
Rgulatory:
Exchanges:
Payments:
Please comment if you have any ideas on dates. Many of these dates are placeholders waiting for me to update. If you comment then I will update the post.
submitted by kolinHall to Bitcoin [link] [comments]

Online Bitcoin Trading: Discover The Keys To Making A Powerful Earnings Trading Bitcoin

Action 1 - Comprehending Bitcoin And The Block-Chain

Bitcoin is a peer-to-peer payment system, otherwise called electronic cash or virtual currency. It provides a twenty-first century option to traditional banking. Exchanges are made through "e wallet software application". The bitcoin has in fact overturned the conventional banking system, while running beyond federal government guidelines.
Bitcoin utilizes modern cryptography, can be provided in any fractional denomination, and has a decentralized circulation system, remains in high need worldwide and provides numerous unique benefits over other currencies such as the United States dollar. For one, it can never ever be garnished or frozen by the bank( s) or a federal government company.
Back in 2009, when the bitcoin deserved simply 10 cents per coin, you would have turned a thousand dollars into millions, if you waited simply 8 years. The variety of bitcoins offered to be bought is restricted to 21,000,000. At the time that this short article was composed, the overall bitcoins in flow was 16,275,288, which indicates that the portion of overall bitcoins "mined" was 77.5%. at that time. The present worth of one bitcoin, at the time that this short article was composed, was $1,214.70 USD.
According to Costs Gates, "Bit coin is amazing and much better than currency". Bitcoin is a de-centralized type of currency. There is no longer any requirement to have actually a "relied on, third-party" included with any deals. By taking the banks out of the formula, you are likewise removing the lion's share of each deal cost. In addition, the quantity of time needed to move cash from point A to point B, is lowered formidably.
The biggest deal to ever occur utilizing bitcoin is one hundred and fifty million dollars. This deal happened in seconds with very little charge's. In order to move large amounts of cash utilizing a "relied on third-party", it would take days and expense hundreds if not countless dollars. This discusses why the banks are strongly opposed to individuals purchasing, offering, trading, moving and investing bitcoins.
Just.003% of the worlds (250,000) population is approximated to hold a minimum of one bitcoin. And just 24% of the population understand what it is. Bitcoin deals are gotten in chronologically in a 'blockchain' simply the method bank deals are. Blocks, on the other hand, resemble specific bank declarations. Simply put, blockchain is a public journal of all Bitcoin deals that have actually ever been performed. It is continuously growing as 'finished' blocks are contributed to it with a brand-new set of recordings. To utilize standard banking as an example, the blockchain resembles a complete history of banking deals.

Action 2 - Establishing Your E Wallet Software Application Account

As quickly as you produce your own special e wallet software application account, you will have the capability to move funds from your e wallet to a receivers e wallet, in the type of bitcoin. If you want to utilize a bitcoin ATM to withdraw funds from your account, basically you will connect your e wallet 'address' to the selected Automated Teller Machine e wallet 'address'. To help with the transfer of your funds in bitcoin to and from a trading platform, you will just connect your e wallet 'address' to the e wallet 'address' of your picked trading platform. In reality, it is a lot easier than it sounds. The knowing curve in relation to utilizing your e wallet, is really brief.
To establish an e wallet, there are a myriad of business's online that use safe, safe, totally free and turn-key e-wallet services. An easy Google search will assist you discover the best e wallet software application for you, relying on what your requirements are precisely. Lots of people get going utilizing a "blockchain" account. This is complimentary to establish and extremely protected. You have the choice of establishing a two-tier login procedure, to even more boost the security and security, in relation to your e wallet account, basically securing your account from being hacked into.
There are lots of choices when it pertains to establishing your e wallet. An excellent location to begin is with a business called QuadrigaCX. You can discover them by doing a Google search. Quadrigacx utilizes a few of the most strict security procedures that presently exist. Moreover, Bitcoins that are moneyed in QuadrigaCX are saved in freezer, utilizing a few of the most safe and secure cryptographic treatments possible. To put it simply, it is an extremely safe location for your bitcoin and other digital currencies.
In order to withdraw cash in your regional currency, from your e wallet, you are needed to find a bitcoin ATM, which can typically be discovered in regional companies within a lot of significant cities. Bitcoin ATM's can be found by doing a basic Google search.

Action 3 - Purchase Any Fractional Denomination Of Bitcoin

To purchase any quantity of bitcoin, you are needed to handle a digital currency broker. Similar to any currency broker, you will need to pay the broker a charge, when you acquire your bitcoin. It is possible to purchase.1 of bitcoin or less if that is all that you wish to acquire. The expense is just based upon the existing market price of a complete bitcoin at any offered time.
There are a myriad of bitcoin brokers online. A basic Google search will permit you to quickly source out the very best one for you. It is constantly an excellent concept to compare their rates prior to continuing with a purchase. You need to likewise verify the rate of a bitcoin online, prior to finding a place to buy bitcoin, as the rate does tend to vary regularly.

Step 4 - Keep Away From Any Trading Platfrom Promising Unrealistic Returns To Unwary Financiers

Discovering a respectable bitcoin trading business that provides a high return is vital to your online success. Making 1% each day is thought about a high return in this market. Making 10% each day is difficult. With online bitcoin trading, it is practical to double your digital currency within ninety days. You should prevent being tempted by any business that is providing returns such as 10% daily. This kind of a return is not practical with digital currency trading. There is a business called Coinexpro that was using 10% daily to bitcoin traders. And it wound up being a ponzi plan. If it's 10% each day, leave. The abovementioned trading platform seemed really advanced and discovered as being genuine. My recommendations is to concentrate on trading your bitcoin with a business that uses affordable returns such as 1% daily. There will be other business that will try to separate you from your bitcoin utilizing unethical techniques. Be extremely mindful when it pertains to any business that is using impractical returns. When you move your bitcoin to a recipient, there is actually absolutely nothing your can do to get it back. You need to make sure that your selected trading business is completely automated & incorporated with blockchain, from invoice to payment. More notably, it is vital that you find out to distinguish genuine trading chances from deceitful "business's" that are specialists when it concerns separating it's customers from their cash. The bitcoin and other digital currencies are not the concern. It is the trading platforms that you should work out care with, prior to turning over your hard-earned cash.
Your ROI ought to likewise be upwards of 1%+ daily due to the fact that the trading business that you are providing your bitcoin to, is more than likely earning upwards of 5%+ each day, usually. Your ROI needs to likewise be immediately moved into your "e-wallet" at routine periods, throughout your agreement term. There is just one platform that I feel comfy utilizing. It pay's each bitcoin investotrader 1.1% daily in interest in addition to 1.1% each day in capital. This kind of a return is staggering compared to what you would make with standard monetary markets, nevertheless, with crypto currency, it prevails. A lot of banks will payment 2% annually!
If you are needed to carry out tiresome activities such as logging into your account, sending out e mails, clicking links etc, you certainly require to keep looking for an appropriate trading business that uses a set-it-and-forget-it kind of platform, as they definitely exist.
submitted by Katherine4512 to Bitcoinshow [link] [comments]

AVOID SHADY CRYPTOCURRENCY EXCHANGE EZBTC.CA

I wanted to make this post of my experience as a warning to others, especially Canadians as they have limited buying options when investing (speculating) into cryptocurrencies. I understand the subject of cryptocurrencies are polarizing to many, but nonetheless, it's an emerging asset class that deserves discussion because there are many ways to lose your funds. This isn't the fault of cryptocurrencies themselves, but the result of user error, outright scams, social engineering, hacks, or in my case not being up-to-date on current events.

There are many scams in cryptocurrencies, but shady exchanges are a classic dating back to the legendary Mt. Gox hack where 850,000 Bitcoins were stolen (worth approximately $4.6 billion at the time of this writing). Or the most recent Canadian QuadrigaCX exchange hack where the CEO allegedly died in India carrying the only private key to 200 million worth of customer funds.

It seems that exchange hacks keep propping up in the news, so why then do they keep happening even in 2019? Because users are left with limited choices if they want to acquire cryptocurrency in the safest (ironic) and most convenient manner. In order to buy cryptocurrency, you first have to exchange it for fiat currency (USD, CAD, EUR). You could buy cryptocurrency from one of those Bitcoin ATMs you see at the mall but the fees are exorbitant and quite a few require ID as it is, so why not just sign up for an exchange instead? The next option is to buy them peer-to-peer in person for cash, but people feel unsafe dealing with strangers and large amounts of money. Further, liquidity would be an issue. This led to a boom of many cryptocurrency exchanges offering customers a place to buy and sell with the exchanges acting as the middle-man between users.

I've been away from cryptocurrency for a while and only came back recently. I've used the EZBTC exchange in the past without issues and decided I would use them again. What I didn't do upon my return was my homework on any updates/news regarding this exchange which resulted in my ordeal now. I noticed the website had an overhaul that now includes an express option for you to receive faster withdrawals if you deposited larger amounts (first red flag). I opted for the regular option I always used in the past and sent a small amount via eTransfer that was deposited in my account almost immediately (second red flag). In the past, my eTransfers regardless of amount took some time and up to many hours. Nonetheless, I made a purchase and initiated a withdrawal request that still hasn't been sent out to this day, and I am not the only one.

A condensed version of my story is that I got worried about my pending withdrawal with EZBTC and my emails/calls went unanswered. The live chat on their website was also disabled. I decided to tweet my situation to @ezBtcCanada and immediately got an email from the owner David Smillie himself urgently telling me to call him on a personal number. He deverified and suspended my account as a result of my tweets @tokenflair for "security reasons". After some talk (me saying I'll delete the tweets) he immediately reactivated and reverified my account again and said that my withdrawal will be taken care of the next day.

Fast forward to the next day and my withdrawal is still pending. Calls/texts/email go unanswered again. Live chat is still disabled. I proceed to send another tweet instead. Like clockwork, I get a response from David shortly after and he was livid. He threatened to sue me for defamation if I continued posting about my situation on public forums. I told him I'll be waiting for his letter. He stated that my account would be receiving a lifetime ban and I will not be receiving my withdrawal but I would get an eTransfer refund in 30 days, and all this information would be included in an email I was supposed to receive on Monday April 22, 2019. I still have not received any such email, and my emails/call/texts to him are again being ignored. The saga continues.

The most important piece of advice I can give when it comes to cryptocurrency is that what's true today, is not true tomorrow. You must stay up-to-date on current events in cryptocurrency because your investment could be at stake. In my case, EZBTC was exhibiting red flags and had many user complaints that I would have seen had I just done some research prior to sending my money. I was not up-to-date regarding the status of this "exchange".

David Smillie (owner of ezbtc.ca) operating under business # 1081627 B.C LTD. currently has 5 ongoing lawsuits against his company for unpaid funds:

  1. File number: 1812420 - GOLDLUST, Joseph v 1081627 B.C. LTD. - Supreme Civil (General)
  2. File number: 1963965 - ROBERTS, John v 1081627 B.C. LTD. - Provincial Small Claims
  3. File number: 172818 - GODWIN, Richard v 1081627 BC LTD - Supreme Civil (General)
  4. File number: 18104 - MCCALLUM, Evan v 1081627 BC LTD - Provincial Small Claims
  5. File number: 1862507 - WONG, Gary v 1081627 BC LTD. - Provincial Small Claims

You can get the latest information on all pending lawsuits against EZBTC here:
https://justice.gov.bc.ca/cso/esearch/civil/partySearch.do

List of numerous complaints against David Smillie and EZBTC:

https://files.fm/f/23ej52ff (David Smillie sued by Richard Godwin)

https://np.reddit.com/BitcoinCA/comments/bahzsm/another_bc_lawsuit_filed_against_ezbtc_1081627_bc/ (David Smillie sued by John Roberts)

https://np.reddit.com/BitcoinCA/comments/99fs6i/2_new_court_filings_against_ezbtc_in_the_past_week/ (More lawsuits)

https://np.reddit.com/BitcoinCA/comments/8mjtjb/amaa_exowner_of_ezbtc_resigned_when_i_realized_it/ (Ex-CTO of EZBTC blows whistle)

https://np.reddit.com/BitcoinCA/comments/b53zq3/please_sticky_this_post_im_a_developer_who_worked/ (EZBTC developer blows whistle)

https://np.reddit.com/BitcoinCA/comments/939ce2/40_days_and_counting_fiat_withdrawal_ezbtcca/

https://np.reddit.com/BitcoinCA/comments/926adi/ezbtcca_may_have_gone_bust_toronto_offices_have/

https://np.reddit.com/BitcoinCA/comments/973yrz/ezbtcca_is_likely_insolvent/

https://np.reddit.com/BitcoinCA/comments/98njea/worth_visiting_ezbtc_offices/

https://np.reddit.com/BitcoinCA/comments/901847/concern_regarding_ezbtc/

https://np.reddit.com/BitcoinCA/comments/9181nx/banned_from_ezbtcca_chatroomhave_not_rcvd/

https://np.reddit.com/BitcoinCA/comments/arnboh/ezbtc_will_my_girlfriend_ever_see_her_money/

https://coiniq.com/ezbtc-review/

https://np.reddit.com/BitcoinCA/comments/ao680q/what_are_customers_latest_experiences_with_ezbtc/

https://warosu.org/biz/thread/10773849

https://np.reddit.com/BitcoinCA/comments/bfqrv1/fortune_jack_here_regarding_david_smillie_and/

https://np.reddit.com/BitcoinCA/comments/b57fq9/ezbtc_terms_of_service_wayback_machine/

https://np.reddit.com/BitcoinCA/comments/arfa5x/ezbtc_is_so_fake_check_this_out/

https://np.reddit.com/BitcoinCA/comments/95rpl5/to_those_staying_silent_for_ezbtc_defamation/
submitted by TokenFlair to CanadianInvestor [link] [comments]

[ECON] The Great Redemption

[M] Apologies for reposting this, but on my end the post kept disappearing for some reason, and I doubt anyone else could see it.
—————
[Central Bank of Chile](https://www.bcentral.cl/web/central-bank-of-chile/home), Augustinas 1180, Santiago de Chile

The Road to Redemption

January 9th, 2022
Following the collapse of Lehman Brothers on September 15th, 2008, the international financial fabric was torn apart into an existential crisis. Threatened by the "Great Recession", the global ruling class was forced into taking decisive action. Most Governments opted to bail out the banks, driven by their mantra of "too big to fail". Elsewhere, financial authorities and Central Banks opted to do the unthinkable by letting the market collapse.
In the wake of the global recession, a plethora of financial reforms were carried out. Some economists revisited the concept of doing away with fractional reserve banking altogether, with Iceland nearly leading the way. Most conventional politicians, meanwhile, opted to enact some of the most complex regulatory legislation in financial history, adding over eleven thousand pages to the bureaucratic burdern in the process.In the meantime, the regular "bloke on the street" had finally had enough and clamoured for change.
Today, nearly fifteen years later, "recession" has once again become the name of the game. With the European economy entering a state of contraction and German commercial banks facing imminent collapse, the global economic system is on the edge of being subjected to the worst economic crisis in recorded history. And while the Bundestag has already **recommitted itself to a bailout, others have yet to respond to the impending financial meltdown.
Although Chile and the rest of Latin America are somewhat isolated and thus shielded from the "European dumpster fire", the Government is keenly aware that the situation could quickly take a turn for the worse. As such, the Ministry of Finance and the Central Bank of Chile have decided to embark on what they call "The Great Redemption". And although financial reform is contrary to the Allende Administration's strictly interim nature of governance, the President believes that the State has an inherently entrenched obligation to protect its citizens from suffering at the hands of the financial system. "The old continent has finally met its end", an increasingly aged and fragile Allende told the New York Times. "And in this new world order, Chile leads the way."

Hard-coded Monetarism

Following the global financial and subsequent European sovereign debt crisis, the European Central Bank embarked on a "Quantitative Easing" program of monumental proportions. While "Super Mario's" money printing machine allowed for Keynesian contra-cyclical spending, the long-term consequences of the ECB's continued buyback program have seemingly far outstripped the benefits. Negative interest rates have become standard practice across the Eurozone, and Christine Lagarde's continuation of her predecessor's policies has effectively led to the loss of the continent's ability to undertake monetary policy. Meanwhile, "inflation's ugly twin" is threatening to put a halt to consumer spending, potentially throwing more oil on the continental-sized dumpster fire.

Towards a Cashless Society

Following the introduction of Bitcon in the wake of the global financial crisis, digital cryptocurrencies have promised to dramatically reshape our moodern conception of money. After having watched privately-sanctioned digital coinage wax and wane for several years, Central Bankers across the globe have increasingly started calling for a public alternative. The dangers of private digital fiat money became abundantly clear when social media behemoth Facebook announced it would issue its own global cryptocurrency), with the Bank for International Settlements publicly denouncing the notion of digital currency being monopolised by private actors. The French and German Governments quickly followed suit, striking a major blow to the Libra.

Privatisation with a Human Face

Founded in 1953 by President Carloz Ibañez del Campo, the Bank of Chilean State is the country's third largest bank. BancoEstado has been ranked Latin America's safest bank since 2012, and the 48th safest bank in the world and 6th in the Southern Hemisphere since 2015. BancoEstado - whicich is rated AA3 by Moody's - is furthermore the only bank to service all of the country's communes, while being the sole financial service provider in theseventy-seven of the most remote Chilean localities.

Premium Insurance

Other Measures

The Chilean Government hopes - above all - that its willingness to undertake radical reforms will serve to inspire Euuropean Governments and Central Banks into being ambitious in their response to the continet's economic issues. At the same time, the Chilean financial sector is expected to become one of the world's most innovative, competitive and dynamic payments markets, continuing the country's reputation as Latin America's "Shining Star".Only time will tell whether or not these reforms will actually bear their fruits.

Footnotes

  • 1 - Based on a quote by Milton Friedman.
  • 2 - Customer support, mobile and internet banking, etc
  • 3 - I based this figure on the 2018 Annual Report, where on page 46 it states that the bank's total consolidated assets total more than $40 billion dollars. The figures I gave in terms of revenue are based on the subsequent economic growth, the willingness of Chileans to gain ownership of the bank for nationalist reasons, and on thee fact that both Peter_j_ and ForestChapel valued the bank at $50 billion in previous seasons. Please feel free to provide me with imput as I'm not very well vested in corporate valuations.
  • 5 - This is based on the so-called Bibby Plan, which is briefly described on the deposit insurance wikipedia page, as well as on basic econoics.
  • 6 - Regulations regarding the creation of a new bank will be adressed in a separate post.
[M] Much of the stuff in this post is based on recommendations by the Sustainable Finance Lab, a high profile Dutch financial think tank. As such, some of the stuff in this post might be a bit out of place considering the vastly different nature of the Dutch financial sector. Most of it should still be universally applicable, though.
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Wealth Formula Episode 179: Buy, Borrow and Die: Bitcoin Style

Catch the full episode: https://www.wealthformula.com/podcast/179-buy-borrow-and-die-bitcoin-style/
Buck: Welcome back to the show everyone. Today my guest on Wealth Formula Podcast is Zack Prince. He's Founder and CEO of BlockFi. BlockFi bridges the gap between blockchain and the basic financial products that you're used to including interest-bearing accounts and loans. Zack, welcome to Wealth Formula Podcast. I think you we might have had you on before as a Consensus Network replay but first time on Wealth Formula Podcast specifically, so welcome.
Zac: Yeah, excited to be here, Buck. Thanks for having me. And it's good to chat with you again
Buck: Yeah so remind me how you got into this you know Bitcoin stuff in the first place, I mean you were as I understand you were a traditional finance guy right so where did the blockchain part come in?
Zac: Sure so I was I was working at a company in the FinTech world that provided data and technology solutions to institutional investors that wanted to participate in some of the new online lending platforms, whether they were real estate platforms or consumer lending platforms, and I kind of became the FinTech guy amongst my friend group and people would ask me you know should I invest in these real estate deals on fund rise or buy loans from Lending Club and I started writing a blog to share the information more efficiently with my friends basically and I started expanding a little bit writing about Robo advisory and some other things that were going on in the FinTech space and that's what led me to Bitcoin, and this is back in early 2015. I didn't start BlockFi until 2017 because I started following the market in the background, still working in traditional financial services in FinTech and then in early 2017 it started to feel like mainstream adoption was starting to happen in the crypto ecosystem. I'm started going to some meetups in New York City because at a certain point my wife said Zac, you're talking about crypto all the time and you're talking to me about it and I don't want to talk about it so you should find some other people to talk about this with. And the meetup composition started to change and in 2016 when I started going to these meetups it was the early crypto adopters you know libertarians, computer scientists and then in early 2017 I started to see some venture capitalists, some guys who had just left their job at Wall Street still wearing a suit, some more entrepreneurs and it was a really exciting time in the ecosystem, things like the Enterprise Ethereum Alliance were getting announced which had participation microsoft and a lot of other you know fortune 500 companies and I had started to believe in it. I was drinking the kool-aid a little bit so I decided to find a way to get involved in the space full-time and that's what led me to start BlockFi.
Buck: So I have to imagine that the response you got from the traditional finance people around that time when you started talking about the blockchain space and when you started being more and more involved with that was probably not a very positive response initially or did you did you experience some of that sort of you know rejection initially to what you were doing?
Zac: Yeah absolutely. But you know throughout my career this is now kind of the third emerging technology industry that I've worked in. I was originally an advertising technology starting like you know 15 years ago and I was in FinTech specifically the online lending side of FinTech which in its early days was called peer-to-peer lending and now in crypto. So having to do a lot of education explain it you know why something isn't crazy and it might work and here's why and here's the value proposition and here's what it is, I've gotten very used to that and comfortable with it. But yeah there were a lot of people who are like you know I've heard Bitcoin is only used by drug dealers and money launderers. I've heard that I'm supposed to care about blockchain and not Bitcoin. And you know at BlockFi we’re providing financial products into the market so it's a heavily regulated business so we also had to communicate with regulators. We had to explain to state regulators, federal regulators why what we were doing with Bitcoin and other cryptos than when you're doing these same types of things with assets that they're more familiar with.
Buck: So when you were talking to people back in, I don't know I guess 2016/17 and it's not a long time ago, it's only two years ago, but I have to imagine that the response or the you know the approach that people take to you when you speak to investors is very different. Has it become more mainstream in that regard for you know for big money investors?
Zac: It's absolutely become more mainstream you know the end of 2017 Q3/Q4. Point was going on that parabolic run it started to get covered everywhere, I mean it was on CNBC every day it was in Bloomberg New York Times Wall Street Journal. If you were paying attention to the financial industry and markets you heard about Bitcoin at that time if you hadn't heard about it before. So from a baseline of awareness perspective it got a lot better and then in 2018 you had a number of positive developments for the sector including one that I think is probably the most noteworthy which is that Bitcoin futures were listed on the CME the institutional investor perspective that's massive. You now have a well regulated well known super trustworthy venue where you can get exposure to this asset class, you also had companies like Grayscale bringing products to the market which are accessible to certain types of investors and their low bridge accounts and you started to see some adoption from companies like FinTech companies like Robin Hood and Square making Bitcoin available on their platforms. So the conversation has absolutely changed a lot and it's become less about whether or not this is something that's going to continue to exist whether or not it's something that was just a bubble and is going to die and now it's more about ok how is it going to get used how big could it get what are the interesting applications of it and what could have potentially disrupt in the traditional financial ecosystem.
Buck: So you know we had obviously following this you know pop in 2017, you know I actually like you kind of really got into this early 2017 so timing was pretty good I guess now regards. Good or bad depending how you look at it but I was there before before the parabolic move. And then we have you know then we followed this up with a crypto winter and and you know who knows if we're done with it, I guess we certainly are much better off than we were. You know a unit buddy it's funny Zac I don’t know if you remember this but I was about to, we'll talk about BlockFi specifically in a minute but, I was about to use BlockFi for borrowing because I like this idea of borrowing you know collateralized debt and collateralized debt on assets and buying something else. So I was about to do it and then Bitcoin lost a clip and I was like literally and I remember I was just emailing with somebody somebody over there and I was like sorry dude I guess I just sold it, I just sold all that Bitcoin I had and you sent one email back to me and it said “capitulation” but it you know and so now we're looking back at these we go down from 3,000 back up you know been sort of flirting around this 10,000 and it seems like we're kind of maybe that we're stuck there, maybe we're kind of out of winter, maybe we're in a holding pattern but it seems like to me that since that two years not only is the awareness increase but the development of the ecosystem itself is so much further advanced than it was in 2017. Is this an unusual case where the technology and maybe even the infrastructure is actually outpacing the price?
Zac: You know it's really hard to say. I would argue that in some ways it's typical. In other industries that showed a lot of promise where investors could you know participate maybe a little bit ahead of the adoption curve you saw crazy price run ups with the tech bubble and you know ‘99-2000 being the one that's kind of top of mind in recent memory and then on the other side of things, are we behind where the price should be now? It's really hard to say because this is kind of like a commodity type asset built on a payment network and valuing that is challenging and there's not a perfect model for for doing it today. It's not as easy as something that's cashflow producing but I'm incredibly bullish. I'm on record as saying at the beginning of this year that Bitcoin has only had one year in its 10-year existence where it had a lower low than the year before and parted this year around the low price for 2018 and I predicted that we would in the year had a higher price than where we started the year pretty soon and now we're up and you know around 300 percent from where we started the year. As that happens in investing is people frequently look at things on a year-to-year performance basis and when people are looking at Bitcoin even if all we do is stay around 10 K from here when they're looking at how Bitcoin performed rather than other relative to other assets at the end of 2019 it's probably going to look fantastic. And you also have an event coming up and in the summer of next year called The Halvening where basically the supply that's produced by miners is going to get cut in half and so if you believe in the stock the flow type models of valuation for Bitcoin that is usually a very big driver of price appreciation.
Buck: I believe May of 2020, right?
Zac: That's right.
Buck: In May of 2020. Can you just talked a little bit about that just so people know because people hear about it, I've been talking about it but I don't think that it really explained it.
Zac: Yeah and you know I'm not I'm not a computer scientist so I can explain it in a you know in a very simple…
Buck: No one else here is either.
Zac: So basically the way that new Bitcoin is created is through this process called mining. And it's analogous to mining gold except instead of finding a place in the earth where gold exists and then getting your trucks and mining equipment and digging it out of the ground, the way bitcoin is mined is using this computer program and there is now specialized computer hardware that's built specifically and optimized for mining Bitcoin. And you have this network of machines around the world where the input is energy into the mining hardware and the output is new Bitcoin and those miners are what provides the power for the payment network a Bitcoin to run and when we say that there is this event called The Halvening, what that basically means is that the output that's built into the Bitcoin program that the miners are receiving as their payment for contributing energy to the network, is going to get cut in half. So the miners are going to have the same you know relative input but the amount that they're receiving is going to get cut in half for that input. This should, if the demand side for Bitcoin remains equal, it should drive up the price and historically Bitcoin has had three of these Halvening events in its lifetime so far I believe and around each Halvening you have seen you know six months before or six months after a pretty material run up in price.
Buck: Yeah so it also goes along with that sort of that the entire idea that Bitcoin unlike you know other assets including gold is it's a deflationary asset ultimately and and that's one of the things that makes that happening really significant. Apart from and I have one more question before we get to block five which is apart from the Halvening, you know thing that's happening, what is maybe the biggest development or upcoming thing that's coming up that makes you the most bullish on the future of Bitcoin or blockchain in general?
Zac: Sure so I think I wouldn't actually point to any one specific thing, I would point to two broad trends. So one is institutional adoption and participation in the asset class and the other is better ramps for retail participation into the asset class and just focusing here you know on the US market because it really is an international story but just in the US market. In September we should have Bakkt launching their futures platform. Bakkt is owned by ICE, the Intercontinental Exchange, and there's a big core difference between their futures and the current futures that are available on the CME in that futures on Bakkt platform are going to be physically settled so that means that actual Bitcoin is going to be needed to facilitate the trading on Bakkt’s platform which does not happen on CMEs exchange so that's that should be a very positive catalyst in terms of demand for physical Bitcoin that could have an impact on the price. Also on the institutional side this year I believe earlier this year, the first pension fund made an investment into an asset management vehicle that was focused on investing in Bitcoin and private equity opportunities in the Bitcoin and blockchain sector. So that will be a trend.
Buck: Which pension fund was it?
Zac: It was in North Carolina so I think it was like the North Carolina Firefighters and the group that raised the money from them was Morgan Creek Digital it’s actually invested in BlockFi by Anthony Pompliano Twitter and Mark Yusko so that's on the institutional side. And then on the retail side you've seen FinTech companies like Square and Robin Hood offer Bitcoin trading to their users. But soon you will also have companies like TD Ameritrade E-Trade and others offer Bitcoin to their users sometimes be a partnership sometimes because they've built it directly. You also at some point might see progress made in terms of an ETF getting approved that would give retail investors in the US market exposure to Bitcoin in a really easy and familiar way. All of those things are tremendously positive catalysts and the caliber of people working on them only continues to increase. Talent was attracted into the sector very, very rapidly these days.
Buck: You know one question that leads me to is that all of this is happening with Bitcoin for the most part. Are alt coins in your opinion is that market coming back or is that something that we're gonna see probably select you know group of tokens projects emerge and then the rest will kind of just get left in the dust, what do you think?
Zac: I mean I'll tell you exactly what I'm doing with my portfolio and then I'll provide a bit more color. So my asset allocation in the crypto side of my investing is I'm like 90% Bitcoin 5% Ethereum and 5% B&B; which is the Binance right. So I'm super bullish on Bitcoin. I think that you know there's a chance that Ether makes a comeback specifically I think that a lot of the stable coins that have been launched have been built on Ethereum if you're not familiar with stable coins it's basically the concept of a dollar but on a blockchain which could be really really powerful because it creates the opportunity for the delivery of US dollar denominated financial services at a global scale not using the traditional banking rails. And then B&B; I mean Binance is the biggest and most successful exchange they have a history of innovating, creating new products, going fast and so I'm taking a bit of a flyer with them but I'm 90% Bitcoin. I don't think that I'm not bullish on any of the other all coins frankly I struggle to see you know the big upside I have heard whispers in the community that there's kind of like a new wave of altcoins 3.0 might emerge, you know could see some some good returns similar to what some of the ICOs did in 2017 but it's not an area of focus for me. So that's my view.
Buck: Yeah let's talk about BlockFi. Remind us exactly what BlockFi is.
Zac: Sure so we're a wealth management platform for crypto investors. Today we have two products that we offer. One product is analogous to a savings account from a traditional bank where you're able to earn interest on your holdings except on BlockFi, the assets instead of being dollars are bitcoin and Ether and we don't have FDIC insurance so it's not exactly the same risk profile as a savings account at a bank, but conceptually you're able to hold Bitcoin and an account with BlockFi and earn interest on it paid in Bitcoin every month. That's one product that we have. The second product that we have which you are alluding to earlier offers our clients the ability to borrow dollars secured by the value of their cryptocurrency and it's analogous to a securities backed loan or a liquidity access line in the traditional world except instead of securities we're taking Bitcoin or other digital assets as collateral and lending it rates as low as four point five lending USD that rates as low as four point five percent a year.
Buck: I wanna pick these apart a little bit if you don't mind. In terms of this savings account first of all is it just bitcoin or is it bitcoin, Ethereum?
Zac: We actually support three assets in the interest account currently Bitcoin, Ether and GUSD which is the stable coin from Gemini.
Buck: Got it. And talk about the interest because it's not one flat interest rate right it's different depending on how much cryptocurrency actually is held?
Zac: Correct so there's a tiered interest rate structure. Currently on Bitcoin for balances up to ten Bitcoin, we offer a six point two percent annual yield and for balances above ten Bitcoin it's a 2.2 percent annual yield. On Ether, for balances up to two hundred Ether it's a 3.3 percent annual yield and balances above two hundred Ether is 0.5% annual yield and for GUSD the stable coin it's an eight point six percent interest rate with no tier so yeah those are the different rates.
Buck: Why did, I mean was it just a matter of like an issue with people dumping like a thousand Bitcoin and trying to get six you know 6% of that, was it just too hard to you know make that a long-term part of the business model or why did the higher levels end up changing to a lower rate?
Zac: Sure so I wanted to function of market conditions and to it's a function of supply and demand. So we launched the interest account in March of this year. We were just starting to come out of the bear market and one of the things that happened as we switched from being in a bear market to being in a bull market is the futures switched from being in backwardation to contango which basically means that our institutional borrowers the groups that we lend to that enable us to pay the rate to depositors had less of a need they had less demand to borrow and they were willing to pay lower rates to borrow crypto than they were when we were building and planning to launch this product. The second thing that happened is we were surprised to the upside in terms of the level of interest that we received from depositors and especially depositors with very large sums of cryptocurrency. So to give you an example you know within a day or two of making the product available publicly, we had a number of groups that were depositing 5, 10, 15, 20 million dollars worth of Bitcoin and so the supply-demand that we have to manage is, the amount that we have on deposit relative to the size of this market that will borrow Bitcoin size of the market that will borrow Bitcoin is partially a function of market sentiments partially a function of number of trading venues and the liquidity profile and it's partially a function of you know BlockFi’s efforts in terms of sales and client development relationship management. So the supply side got a little bit ahead of the demand side on deposit and how much there was available to borrow so we made a few tweaks. We want to keep the 6%, 6.2% rate on Bitcoin available to as many people as possible for as long as possible so that's why we went with the tiered structure where we made it available on balances up to 10 and reduced it for balances above that.
Buck: Got it and the interest on that, when you say 6.2 percent that six point like it's all denominated in Bitcoin, you're not paying cash out right?
Zac: Correct so to use round numbers to provide an easy example you start on January first with a hundred Bitcoin in an account, by the subsequent January first you will have 106 point 2 Bitcoin in your account.
Buck: Yeah and that that's kind of neat too because then you're you know you're also getting potentially the upside of that you know I mean they made 6% but if you if you're really bullish on the market you could be potentially looking at a lot more than 6% on your money. How about in terms of the, is there like a you know do you do it sort of a month-to-month or six month or month you know year-long contracts for these things?
Zac: It's month-to-month. So the rates are subject to change on a monthly basis. We provide notifications at least a week in advance before the end of one month on what the rates will be for the subsequent month and people are able to you know withdraw any time without penalty. We reserve up to 7 days to process withdrawals but we've never taken more than one business day to process a withdrawal so they're pretty quick but not instant for security reasons and yeah it's pretty flexible.
Buck: How about the lump in the lending side how does how does that work? So now I've got like 10 Bitcoin and so I would deposit that I guess and you guys I understand that maybe that that goes into like a Gemini account or something, is that still how it works?
Zac: Correct so we have a partnership with Gemini for custody. So when you log into a BlockFi account you'll have a deposit address. When you send Bitcoin to that deposit address it actually goes directly into storage with Gemini. Gemini was the first custodian in the crypto sector to receive insurance against cyber hacks on their platform. They were also the first custodian to get to complete a SOC 2 compliance audit and they have a really long track record of custody billions of dollars worth of crypto without ever having any issues. So it goes directly to Gemini and then you're able to interact with block-wise platform to take any actions that you might deem necessary. So you can view your interest payments you can withdraw you can deposit more you can also take out a loan. So in terms of taking out a loan, if you have ten Bitcoin that's worth roughly a hundred thousand US dollars at this point in time, you can borrow up to fifty percent of that value in a US dollar loan which can be funded be a wire or stable coin and then the structure of those loans is that you make interest-only payments on the amount that you borrowed throughout the duration and you can prepay at any time without penalty.
Buck: And what's the typical you said it was four point six.
Zac: We have interest rates as low as four point five. The interest rates on borrowing USD vary according to your initial loan to value ratio. So if you have a hundred thousand dollars worth of Bitcoin we actually have three loan-to-value ratio options. You can borrow at a 50 percent initial loan-to-value ratio which would mean you're borrowing 50k, the interest rate on that will be eleven point two five, if you borrow thirty five percent of the value so 35k the interest rate is seven point nine, and if you borrow twenty five percent of the value of the interest rate is four point five percent per year.
Buck: Got it. In terms of you know the technical, so you basically pay that on a month-to-month basis and then in terms of contracts, are those also month-to-month loans or how does that work?
Zac: Those are one-year term loans well now it's the ability to renew without repaying the principal at the end of the term at current rates and our rates for those loans have always come down so far. So it's a one-year term loan BlockFi committed for a year at that rate your payments stay the same but you can prepay at any time without penalty.
Buck: Right. When do you do when would you do an actual sort of I guess a cap will call like what loan-to-value because you can go up to say you're borrowing at you know you're borrowing at the lowest rate you know you're at 4.5% you're borrowing see you know just for round numbers 100 Bitcoin you borrowed or you said 10 Bitcoin hundred thousand dollars but you only borrowed twenty-five thousand dollars at four point five percent, what if Bitcoin you know loses 50 percent of its value then what happens?
Zac: Well you wouldn't have a margin call based on on that example. If your loan to value ratio hits 70 percent that's when we have a margin call and the way the margin call works is our clients have the option to either post more collateral, pay down the loan using USD or some of the collateral that's posted for the loan or take no action. If they take no action there's a 72-hour window where we'll wait to see if the price recovers, if it does then no action is required, if the price keeps going down further then we will initiate a partial collateral sale to rebalance that LTV to a healthy level at the end of that window.
Buck: So in terms of the clients that you see doing this kind of stuff, I mean who are you seeing borrowing because you don't have a cap I mean you can on the borrow side, I mean and the rates don't really change like if you're depositing a hundred Bitcoin you're getting the same rate differences as somebody who's depositing ten for borrowing right?
Zac: That's right.
Buck: So who are the people who are putting I mean what are these businesses that are putting are using these loans who are the typical clients?
Zac: Sure so it's a mix of retail and corporate. On the retail side we actually did a survey recently on use cases and the number one use case about a third of our borrowers expressed is that they were using the funds that they borrowed to start a business, which we were really excited about. So the other popular use cases were investing in real estate, investing in other types of traditional assets like stocks and bonds, home improvement, larger purchases, vacations were all used cases, paying down higher cost debt was another use case, and then on the corporate side the loans are used for operating capital. So we have some mining companies that borrow from BlockFi. Other types of companies who you know maybe have crypto denominated inventory like exchanges or crypto ATM businesses our frequent borrowers from BlockFi and our loan sizes rearranged from you know as low as five thousand dollars all the way up to seven figures. So it's a pretty diverse group of borrowers.
Buck: So recently it sounds like you guys partnered with another company called Casa. What is Casa and I guess how does that benefit both companies?
Zac: Sure. So Casa is a leader in fighting self sovereign storage solutions for cryptocurrency owners so if you're alone that owns Bitcoin and to use a gold analogy. If you want to own gold but you keep it in your vault or in your backyard you want to have physical possession of it yourself if you want to do that same type of custody with Bitcoin. Casa has a solution that makes that really easy. Our partnership with Casa provides mutual benefits to clients on either side. So Casa clients are able to receive some discounts in terms of accessing BlockFi products and vice-versa BlockFi clients are able to receive discounts in terms of accessing kasam products and over time we'll build some things in to the user experience specifically on Casa’s platform that will make it you know a bit more seamless to interact with BlockFi products while you're on their platform. In general that partnership strategy is something that you'll see more of we think there are in the ecosystem that are specializing in areas that BlockFi's not focused on and doing things where we can provide benefits to clients on both sides is a win-win for us then and our clients.
Buck: Last thing I want to ask you about, last time I spoke to you, you had talked about the idea of potentially Bitcoin backed credit cards meaning like you know getting Bitcoin back instead of miles or dollars back. You guys any closer to that, because I definitely want one of those cards.
Zac: I'm so glad you brought it up. We're definitely closer, but we're not you're not going to have the card until like Q3 of next year probably. It's getting worked on, these things you know for better or worse they take a long time launching a credit program is no small feat you know we're working on it. We've identified some of the key partners that we'll be working with to bring that product to market it is going to happen and I share your sentiment like I wish I had it now.
Buck: Yeah seriously that'd be great. Well listen it was great talking you. So it's BlockFi.com and it's spelled like block and then fi and tell us you know tell us the process of doing is pretty simple okay how long does it take to apply for these things…
Zac: Yeah I mean nothing takes any time really. So you could come in and start earning interest and get a loan from us all in under five minutes. And we also have a client service team that's super responsive in in terms of communication however you want to communicate with them, over email, over the phone, over text message so you know don't don't hesitate to reach out to us. We're also on twitter. My twitter handle is BlockFiZac and our company twitter handle is @therealBlockFi so we're very active on those platforms and happy to chat with you there as well.
Buck: Zac Prince, thank you very much for being on Wealth Formula Podcast today.
Zac: Thanks for having me, Buck, I appreciate it.
Buck: We’ll be right back.
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Consensus Network EP36: Buy, Borrow and Die: Bitcoin Style

Catch the full episode: https://www.consensusnetwork.io/podcastepisodes/2019/10/5/ep36-buy-borrow-and-die-bitcoin-style-1
Buck: Welcome back to the show everyone. Today my guest on Wealth Formula Podcast is Zack Prince. He's Founder and CEO of BlockFi. BlockFi bridges the gap between blockchain and the basic financial products that you're used to including interest-bearing accounts and loans. Zack, welcome to Wealth Formula Podcast. I think you we might have had you on before as a Consensus Network replay but first time on Wealth Formula Podcast specifically, so welcome.
Zac: Yeah, excited to be here, Buck. Thanks for having me. And it's good to chat with you again
Buck: Yeah so remind me how you got into this you know Bitcoin stuff in the first place, I mean you were as I understand you were a traditional finance guy right so where did the blockchain part come in?
Zac: Sure so I was I was working at a company in the FinTech world that provided data and technology solutions to institutional investors that wanted to participate in some of the new online lending platforms, whether they were real estate platforms or consumer lending platforms, and I kind of became the FinTech guy amongst my friend group and people would ask me you know should I invest in these real estate deals on fund rise or buy loans from Lending Club and I started writing a blog to share the information more efficiently with my friends basically and I started expanding a little bit writing about Robo advisory and some other things that were going on in the FinTech space and that's what led me to Bitcoin, and this is back in early 2015. I didn't start BlockFi until 2017 because I started following the market in the background, still working in traditional financial services in FinTech and then in early 2017 it started to feel like mainstream adoption was starting to happen in the crypto ecosystem. I'm started going to some meetups in New York City because at a certain point my wife said Zac, you're talking about crypto all the time and you're talking to me about it and I don't want to talk about it so you should find some other people to talk about this with. And the meetup composition started to change and in 2016 when I started going to these meetups it was the early crypto adopters you know libertarians, computer scientists and then in early 2017 I started to see some venture capitalists, some guys who had just left their job at Wall Street still wearing a suit, some more entrepreneurs and it was a really exciting time in the ecosystem, things like the Enterprise Ethereum Alliance were getting announced which had participation microsoft and a lot of other you know fortune 500 companies and I had started to believe in it. I was drinking the kool-aid a little bit so I decided to find a way to get involved in the space full-time and that's what led me to start BlockFi.
Buck: So I have to imagine that the response you got from the traditional finance people around that time when you started talking about the blockchain space and when you started being more and more involved with that was probably not a very positive response initially or did you did you experience some of that sort of you know rejection initially to what you were doing?
Zac: Yeah absolutely. But you know throughout my career this is now kind of the third emerging technology industry that I've worked in. I was originally an advertising technology starting like you know 15 years ago and I was in FinTech specifically the online lending side of FinTech which in its early days was called peer-to-peer lending and now in crypto. So having to do a lot of education explain it you know why something isn't crazy and it might work and here's why and here's the value proposition and here's what it is, I've gotten very used to that and comfortable with it. But yeah there were a lot of people who are like you know I've heard Bitcoin is only used by drug dealers and money launderers. I've heard that I'm supposed to care about blockchain and not Bitcoin. And you know at BlockFi we’re providing financial products into the market so it's a heavily regulated business so we also had to communicate with regulators. We had to explain to state regulators, federal regulators why what we were doing with Bitcoin and other cryptos than when you're doing these same types of things with assets that they're more familiar with.
Buck: So when you were talking to people back in, I don't know I guess 2016/17 and it's not a long time ago, it's only two years ago, but I have to imagine that the response or the you know the approach that people take to you when you speak to investors is very different. Has it become more mainstream in that regard for you know for big money investors?
Zac: It's absolutely become more mainstream you know the end of 2017 Q3/Q4. Point was going on that parabolic run it started to get covered everywhere, I mean it was on CNBC every day it was in Bloomberg New York Times Wall Street Journal. If you were paying attention to the financial industry and markets you heard about Bitcoin at that time if you hadn't heard about it before. So from a baseline of awareness perspective it got a lot better and then in 2018 you had a number of positive developments for the sector including one that I think is probably the most noteworthy which is that Bitcoin futures were listed on the CME the institutional investor perspective that's massive. You now have a well regulated well known super trustworthy venue where you can get exposure to this asset class, you also had companies like Grayscale bringing products to the market which are accessible to certain types of investors and their low bridge accounts and you started to see some adoption from companies like FinTech companies like Robin Hood and Square making Bitcoin available on their platforms. So the conversation has absolutely changed a lot and it's become less about whether or not this is something that's going to continue to exist whether or not it's something that was just a bubble and is going to die and now it's more about ok how is it going to get used how big could it get what are the interesting applications of it and what could have potentially disrupt in the traditional financial ecosystem.
Buck: So you know we had obviously following this you know pop in 2017, you know I actually like you kind of really got into this early 2017 so timing was pretty good I guess now regards. Good or bad depending how you look at it but I was there before before the parabolic move. And then we have you know then we followed this up with a crypto winter and and you know who knows if we're done with it, I guess we certainly are much better off than we were. You know a unit buddy it's funny Zac I don’t know if you remember this but I was about to, we'll talk about BlockFi specifically in a minute but, I was about to use BlockFi for borrowing because I like this idea of borrowing you know collateralized debt and collateralized debt on assets and buying something else. So I was about to do it and then Bitcoin lost a clip and I was like literally and I remember I was just emailing with somebody somebody over there and I was like sorry dude I guess I just sold it, I just sold all that Bitcoin I had and you sent one email back to me and it said “capitulation” but it you know and so now we're looking back at these we go down from 3,000 back up you know been sort of flirting around this 10,000 and it seems like we're kind of maybe that we're stuck there, maybe we're kind of out of winter, maybe we're in a holding pattern but it seems like to me that since that two years not only is the awareness increase but the development of the ecosystem itself is so much further advanced than it was in 2017. Is this an unusual case where the technology and maybe even the infrastructure is actually outpacing the price?
Zac: You know it's really hard to say. I would argue that in some ways it's typical. In other industries that showed a lot of promise where investors could you know participate maybe a little bit ahead of the adoption curve you saw crazy price run ups with the tech bubble and you know ‘99-2000 being the one that's kind of top of mind in recent memory and then on the other side of things, are we behind where the price should be now? It's really hard to say because this is kind of like a commodity type asset built on a payment network and valuing that is challenging and there's not a perfect model for for doing it today. It's not as easy as something that's cashflow producing but I'm incredibly bullish. I'm on record as saying at the beginning of this year that Bitcoin has only had one year in its 10-year existence where it had a lower low than the year before and parted this year around the low price for 2018 and I predicted that we would in the year had a higher price than where we started the year pretty soon and now we're up and you know around 300 percent from where we started the year. As that happens in investing is people frequently look at things on a year-to-year performance basis and when people are looking at Bitcoin even if all we do is stay around 10 K from here when they're looking at how Bitcoin performed rather than other relative to other assets at the end of 2019 it's probably going to look fantastic. And you also have an event coming up and in the summer of next year called The Halvening where basically the supply that's produced by miners is going to get cut in half and so if you believe in the stock the flow type models of valuation for Bitcoin that is usually a very big driver of price appreciation.
Buck: I believe May of 2020, right?
Zac: That's right.
Buck: In May of 2020. Can you just talked a little bit about that just so people know because people hear about it, I've been talking about it but I don't think that it really explained it.
Zac: Yeah and you know I'm not I'm not a computer scientist so I can explain it in a you know in a very simple…
Buck: No one else here is either.
Zac: So basically the way that new Bitcoin is created is through this process called mining. And it's analogous to mining gold except instead of finding a place in the earth where gold exists and then getting your trucks and mining equipment and digging it out of the ground, the way bitcoin is mined is using this computer program and there is now specialized computer hardware that's built specifically and optimized for mining Bitcoin. And you have this network of machines around the world where the input is energy into the mining hardware and the output is new Bitcoin and those miners are what provides the power for the payment network a Bitcoin to run and when we say that there is this event called The Halvening, what that basically means is that the output that's built into the Bitcoin program that the miners are receiving as their payment for contributing energy to the network, is going to get cut in half. So the miners are going to have the same you know relative input but the amount that they're receiving is going to get cut in half for that input. This should, if the demand side for Bitcoin remains equal, it should drive up the price and historically Bitcoin has had three of these Halvening events in its lifetime so far I believe and around each Halvening you have seen you know six months before or six months after a pretty material run up in price.
Buck: Yeah so it also goes along with that sort of that the entire idea that Bitcoin unlike you know other assets including gold is it's a deflationary asset ultimately and and that's one of the things that makes that happening really significant. Apart from and I have one more question before we get to block five which is apart from the Halvening, you know thing that's happening, what is maybe the biggest development or upcoming thing that's coming up that makes you the most bullish on the future of Bitcoin or blockchain in general?
Zac: Sure so I think I wouldn't actually point to any one specific thing, I would point to two broad trends. So one is institutional adoption and participation in the asset class and the other is better ramps for retail participation into the asset class and just focusing here you know on the US market because it really is an international story but just in the US market. In September we should have Bakkt launching their futures platform. Bakkt is owned by ICE, the Intercontinental Exchange, and there's a big core difference between their futures and the current futures that are available on the CME in that futures on Bakkt platform are going to be physically settled so that means that actual Bitcoin is going to be needed to facilitate the trading on Bakkt’s platform which does not happen on CMEs exchange so that's that should be a very positive catalyst in terms of demand for physical Bitcoin that could have an impact on the price. Also on the institutional side this year I believe earlier this year, the first pension fund made an investment into an asset management vehicle that was focused on investing in Bitcoin and private equity opportunities in the Bitcoin and blockchain sector. So that will be a trend.
Buck: Which pension fund was it?
Zac: It was in North Carolina so I think it was like the North Carolina Firefighters and the group that raised the money from them was Morgan Creek Digital it’s actually invested in BlockFi by Anthony Pompliano Twitter and Mark Yusko so that's on the institutional side. And then on the retail side you've seen FinTech companies like Square and Robin Hood offer Bitcoin trading to their users. But soon you will also have companies like TD Ameritrade E-Trade and others offer Bitcoin to their users sometimes be a partnership sometimes because they've built it directly. You also at some point might see progress made in terms of an ETF getting approved that would give retail investors in the US market exposure to Bitcoin in a really easy and familiar way. All of those things are tremendously positive catalysts and the caliber of people working on them only continues to increase. Talent was attracted into the sector very, very rapidly these days.
Buck: You know one question that leads me to is that all of this is happening with Bitcoin for the most part. Are alt coins in your opinion is that market coming back or is that something that we're gonna see probably select you know group of tokens projects emerge and then the rest will kind of just get left in the dust, what do you think?
Zac: I mean I'll tell you exactly what I'm doing with my portfolio and then I'll provide a bit more color. So my asset allocation in the crypto side of my investing is I'm like 90% Bitcoin 5% Ethereum and 5% B&B; which is the Binance right. So I'm super bullish on Bitcoin. I think that you know there's a chance that Ether makes a comeback specifically I think that a lot of the stable coins that have been launched have been built on Ethereum if you're not familiar with stable coins it's basically the concept of a dollar but on a blockchain which could be really really powerful because it creates the opportunity for the delivery of US dollar denominated financial services at a global scale not using the traditional banking rails. And then B&B; I mean Binance is the biggest and most successful exchange they have a history of innovating, creating new products, going fast and so I'm taking a bit of a flyer with them but I'm 90% Bitcoin. I don't think that I'm not bullish on any of the other all coins frankly I struggle to see you know the big upside I have heard whispers in the community that there's kind of like a new wave of altcoins 3.0 might emerge, you know could see some some good returns similar to what some of the ICOs did in 2017 but it's not an area of focus for me. So that's my view.
Buck: Yeah let's talk about BlockFi. Remind us exactly what BlockFi is.
Zac: Sure so we're a wealth management platform for crypto investors. Today we have two products that we offer. One product is analogous to a savings account from a traditional bank where you're able to earn interest on your holdings except on BlockFi, the assets instead of being dollars are bitcoin and Ether and we don't have FDIC insurance so it's not exactly the same risk profile as a savings account at a bank, but conceptually you're able to hold Bitcoin and an account with BlockFi and earn interest on it paid in Bitcoin every month. That's one product that we have. The second product that we have which you are alluding to earlier offers our clients the ability to borrow dollars secured by the value of their cryptocurrency and it's analogous to a securities backed loan or a liquidity access line in the traditional world except instead of securities we're taking Bitcoin or other digital assets as collateral and lending it rates as low as four point five lending USD that rates as low as four point five percent a year.
Buck: I wanna pick these apart a little bit if you don't mind. In terms of this savings account first of all is it just bitcoin or is it bitcoin, Ethereum?
Zac: We actually support three assets in the interest account currently Bitcoin, Ether and GUSD which is the stable coin from Gemini.
Buck: Got it. And talk about the interest because it's not one flat interest rate right it's different depending on how much cryptocurrency actually is held?
Zac: Correct so there's a tiered interest rate structure. Currently on Bitcoin for balances up to ten Bitcoin, we offer a six point two percent annual yield and for balances above ten Bitcoin it's a 2.2 percent annual yield. On Ether, for balances up to two hundred Ether it's a 3.3 percent annual yield and balances above two hundred Ether is 0.5% annual yield and for GUSD the stable coin it's an eight point six percent interest rate with no tier so yeah those are the different rates.
Buck: Why did, I mean was it just a matter of like an issue with people dumping like a thousand Bitcoin and trying to get six you know 6% of that, was it just too hard to you know make that a long-term part of the business model or why did the higher levels end up changing to a lower rate?
Zac: Sure so I wanted to function of market conditions and to it's a function of supply and demand. So we launched the interest account in March of this year. We were just starting to come out of the bear market and one of the things that happened as we switched from being in a bear market to being in a bull market is the futures switched from being in backwardation to contango which basically means that our institutional borrowers the groups that we lend to that enable us to pay the rate to depositors had less of a need they had less demand to borrow and they were willing to pay lower rates to borrow crypto than they were when we were building and planning to launch this product. The second thing that happened is we were surprised to the upside in terms of the level of interest that we received from depositors and especially depositors with very large sums of cryptocurrency. So to give you an example you know within a day or two of making the product available publicly, we had a number of groups that were depositing 5, 10, 15, 20 million dollars worth of Bitcoin and so the supply-demand that we have to manage is, the amount that we have on deposit relative to the size of this market that will borrow Bitcoin size of the market that will borrow Bitcoin is partially a function of market sentiments partially a function of number of trading venues and the liquidity profile and it's partially a function of you know BlockFi’s efforts in terms of sales and client development relationship management. So the supply side got a little bit ahead of the demand side on deposit and how much there was available to borrow so we made a few tweaks. We want to keep the 6%, 6.2% rate on Bitcoin available to as many people as possible for as long as possible so that's why we went with the tiered structure where we made it available on balances up to 10 and reduced it for balances above that.
Buck: Got it and the interest on that, when you say 6.2 percent that six point like it's all denominated in Bitcoin, you're not paying cash out right?
Zac: Correct so to use round numbers to provide an easy example you start on January first with a hundred Bitcoin in an account, by the subsequent January first you will have 106 point 2 Bitcoin in your account.
Buck: Yeah and that that's kind of neat too because then you're you know you're also getting potentially the upside of that you know I mean they made 6% but if you if you're really bullish on the market you could be potentially looking at a lot more than 6% on your money. How about in terms of the, is there like a you know do you do it sort of a month-to-month or six month or month you know year-long contracts for these things?
Zac: It's month-to-month. So the rates are subject to change on a monthly basis. We provide notifications at least a week in advance before the end of one month on what the rates will be for the subsequent month and people are able to you know withdraw any time without penalty. We reserve up to 7 days to process withdrawals but we've never taken more than one business day to process a withdrawal so they're pretty quick but not instant for security reasons and yeah it's pretty flexible.
Buck: How about the lump in the lending side how does how does that work? So now I've got like 10 Bitcoin and so I would deposit that I guess and you guys I understand that maybe that that goes into like a Gemini account or something, is that still how it works?
Zac: Correct so we have a partnership with Gemini for custody. So when you log into a BlockFi account you'll have a deposit address. When you send Bitcoin to that deposit address it actually goes directly into storage with Gemini. Gemini was the first custodian in the crypto sector to receive insurance against cyber hacks on their platform. They were also the first custodian to get to complete a SOC 2 compliance audit and they have a really long track record of custody billions of dollars worth of crypto without ever having any issues. So it goes directly to Gemini and then you're able to interact with block-wise platform to take any actions that you might deem necessary. So you can view your interest payments you can withdraw you can deposit more you can also take out a loan. So in terms of taking out a loan, if you have ten Bitcoin that's worth roughly a hundred thousand US dollars at this point in time, you can borrow up to fifty percent of that value in a US dollar loan which can be funded be a wire or stable coin and then the structure of those loans is that you make interest-only payments on the amount that you borrowed throughout the duration and you can prepay at any time without penalty.
Buck: And what's the typical you said it was four point six.
Zac: We have interest rates as low as four point five. The interest rates on borrowing USD vary according to your initial loan to value ratio. So if you have a hundred thousand dollars worth of Bitcoin we actually have three loan-to-value ratio options. You can borrow at a 50 percent initial loan-to-value ratio which would mean you're borrowing 50k, the interest rate on that will be eleven point two five, if you borrow thirty five percent of the value so 35k the interest rate is seven point nine, and if you borrow twenty five percent of the value of the interest rate is four point five percent per year.
Buck: Got it. In terms of you know the technical, so you basically pay that on a month-to-month basis and then in terms of contracts, are those also month-to-month loans or how does that work?
Zac: Those are one-year term loans well now it's the ability to renew without repaying the principal at the end of the term at current rates and our rates for those loans have always come down so far. So it's a one-year term loan BlockFi committed for a year at that rate your payments stay the same but you can prepay at any time without penalty.
Buck: Right. When do you do when would you do an actual sort of I guess a cap will call like what loan-to-value because you can go up to say you're borrowing at you know you're borrowing at the lowest rate you know you're at 4.5% you're borrowing see you know just for round numbers 100 Bitcoin you borrowed or you said 10 Bitcoin hundred thousand dollars but you only borrowed twenty-five thousand dollars at four point five percent, what if Bitcoin you know loses 50 percent of its value then what happens?
Zac: Well you wouldn't have a margin call based on on that example. If your loan to value ratio hits 70 percent that's when we have a margin call and the way the margin call works is our clients have the option to either post more collateral, pay down the loan using USD or some of the collateral that's posted for the loan or take no action. If they take no action there's a 72-hour window where we'll wait to see if the price recovers, if it does then no action is required, if the price keeps going down further then we will initiate a partial collateral sale to rebalance that LTV to a healthy level at the end of that window.
Buck: So in terms of the clients that you see doing this kind of stuff, I mean who are you seeing borrowing because you don't have a cap I mean you can on the borrow side, I mean and the rates don't really change like if you're depositing a hundred Bitcoin you're getting the same rate differences as somebody who's depositing ten for borrowing right?
Zac: That's right.
Buck: So who are the people who are putting I mean what are these businesses that are putting are using these loans who are the typical clients?
Zac: Sure so it's a mix of retail and corporate. On the retail side we actually did a survey recently on use cases and the number one use case about a third of our borrowers expressed is that they were using the funds that they borrowed to start a business, which we were really excited about. So the other popular use cases were investing in real estate, investing in other types of traditional assets like stocks and bonds, home improvement, larger purchases, vacations were all used cases, paying down higher cost debt was another use case, and then on the corporate side the loans are used for operating capital. So we have some mining companies that borrow from BlockFi. Other types of companies who you know maybe have crypto denominated inventory like exchanges or crypto ATM businesses our frequent borrowers from BlockFi and our loan sizes rearranged from you know as low as five thousand dollars all the way up to seven figures. So it's a pretty diverse group of borrowers.
Buck: So recently it sounds like you guys partnered with another company called Casa. What is Casa and I guess how does that benefit both companies?
Zac: Sure. So Casa is a leader in fighting self sovereign storage solutions for cryptocurrency owners so if you're alone that owns Bitcoin and to use a gold analogy. If you want to own gold but you keep it in your vault or in your backyard you want to have physical possession of it yourself if you want to do that same type of custody with Bitcoin. Casa has a solution that makes that really easy. Our partnership with Casa provides mutual benefits to clients on either side. So Casa clients are able to receive some discounts in terms of accessing BlockFi products and vice-versa BlockFi clients are able to receive discounts in terms of accessing kasam products and over time we'll build some things in to the user experience specifically on Casa’s platform that will make it you know a bit more seamless to interact with BlockFi products while you're on their platform. In general that partnership strategy is something that you'll see more of we think there are in the ecosystem that are specializing in areas that BlockFi's not focused on and doing things where we can provide benefits to clients on both sides is a win-win for us then and our clients.
Buck: Last thing I want to ask you about, last time I spoke to you, you had talked about the idea of potentially Bitcoin backed credit cards meaning like you know getting Bitcoin back instead of miles or dollars back. You guys any closer to that, because I definitely want one of those cards.
Zac: I'm so glad you brought it up. We're definitely closer, but we're not you're not going to have the card until like Q3 of next year probably. It's getting worked on, these things you know for better or worse they take a long time launching a credit program is no small feat you know we're working on it. We've identified some of the key partners that we'll be working with to bring that product to market it is going to happen and I share your sentiment like I wish I had it now.
Buck: Yeah seriously that'd be great. Well listen it was great talking you. So it's BlockFi.com and it's spelled like block and then fi and tell us you know tell us the process of doing is pretty simple okay how long does it take to apply for these things…
Zac: Yeah I mean nothing takes any time really. So you could come in and start earning interest and get a loan from us all in under five minutes. And we also have a client service team that's super responsive in in terms of communication however you want to communicate with them, over email, over the phone, over text message so you know don't don't hesitate to reach out to us. We're also on twitter. My twitter handle is BlockFiZac and our company twitter handle is @therealBlockFi so we're very active on those platforms and happy to chat with you there as well.
Buck: Zac Prince, thank you very much for being on Wealth Formula Podcast today.
Zac: Thanks for having me, Buck, I appreciate it.
Buck: We’ll be right back.
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