Legal Tender Definition

Singapore Won’t Tax Airdrops or Hard Forks Under New Crypto Guidance

The Inland Revenue Authority of Singapore's (IRAS) e-tax guide fills in the tax gaps for so-called “digital tokens,” a catch-all for three crypto types: payment tokens, used to by goods and services; utility tokens, which represent a right to goods and services; and security tokens, or digital securities. Each has a new definition and corresponding tax treatment from the IRAS. Meant as a guide for consumers and businesses as well as issuers of initial coin offerings (ICO), the guide describes a fragmented approach for an industry still coming into form. The tax guide also clarifies procedures for more obscure crypto events. For example, IRAS will not levy income taxes against airdropped payment tokens or those that come from a blockchain hard fork, which is a “windfall.”
IRAS’ guide considers payment tokens such as bitcoin to be “intangible property” instead of legal tender. If a consumer pays in bitcoin he is engaging in “barter trade” for which the goods and services are taxed, not the payment token itself. The same goes for businesses that can value their goods’ tax burden against government-issued money metrics.
Utility token transactions, conversely, are “unlikely” to trigger a taxable event for the user, whose acquisition of them as a right to future services “will be treated as prepayment.” In fact, utility tokens’ use will actually be deductible under the guide.
Security tokens operate under the same loose tax laws Asia’s tax haven applies to other securities. Singapore levies no capital gains tax on securities of any kind and sparingly taxes dividends depending on the issuer, leaving security tokens taxable only when classified as a “revenue asset.”
Singapore's investor-friendly tax scheme leaves security token ICO issuers with the entirety of their raised capital. Utility token ICO issuers are not so lucky. Their proceeds are effectively deferred revenue that is taxable as soon as they deliver the goods. Payment token ICO issuers need to pay right away, though the guide said such schemes are “uncommon.”
Join the chat — https://t.me/joinchat/AAAAAE84vCXg5PK-VpHADg
submitted by Golubyev_Sergiy to ico [link] [comments]

Singapore Won’t Tax Airdrops or Hard Forks Under New Crypto Guidance

The Inland Revenue Authority of Singapore's (IRAS) e-tax guide fills in the tax gaps for so-called “digital tokens,” a catch-all for three crypto types: payment tokens, used to by goods and services; utility tokens, which represent a right to goods and services; and security tokens, or digital securities. Each has a new definition and corresponding tax treatment from the IRAS. Meant as a guide for consumers and businesses as well as issuers of initial coin offerings (ICO), the guide describes a fragmented approach for an industry still coming into form. The tax guide also clarifies procedures for more obscure crypto events. For example, IRAS will not levy income taxes against airdropped payment tokens or those that come from a blockchain hard fork, which is a “windfall.”
IRAS’ guide considers payment tokens such as bitcoin to be “intangible property” instead of legal tender. If a consumer pays in bitcoin he is engaging in “barter trade” for which the goods and services are taxed, not the payment token itself. The same goes for businesses that can value their goods’ tax burden against government-issued money metrics.
Utility token transactions, conversely, are “unlikely” to trigger a taxable event for the user, whose acquisition of them as a right to future services “will be treated as prepayment.” In fact, utility tokens’ use will actually be deductible under the guide.
Security tokens operate under the same loose tax laws Asia’s tax haven applies to other securities. Singapore levies no capital gains tax on securities of any kind and sparingly taxes dividends depending on the issuer, leaving security tokens taxable only when classified as a “revenue asset.”
Singapore's investor-friendly tax scheme leaves security token ICO issuers with the entirety of their raised capital. Utility token ICO issuers are not so lucky. Their proceeds are effectively deferred revenue that is taxable as soon as they deliver the goods. Payment token ICO issuers need to pay right away, though the guide said such schemes are “uncommon.”
Join the chat — https://t.me/joinchat/AAAAAE84vCXg5PK-VpHADg
submitted by Golubyev_Sergiy to CryptocurrencyICO [link] [comments]

Singapore Won’t Tax Airdrops or Hard Forks Under New Crypto Guidance

The Inland Revenue Authority of Singapore's (IRAS) e-tax guide fills in the tax gaps for so-called “digital tokens,” a catch-all for three crypto types: payment tokens, used to by goods and services; utility tokens, which represent a right to goods and services; and security tokens, or digital securities. Each has a new definition and corresponding tax treatment from the IRAS. Meant as a guide for consumers and businesses as well as issuers of initial coin offerings (ICO), the guide describes a fragmented approach for an industry still coming into form. The tax guide also clarifies procedures for more obscure crypto events. For example, IRAS will not levy income taxes against airdropped payment tokens or those that come from a blockchain hard fork, which is a “windfall.”
IRAS’ guide considers payment tokens such as bitcoin to be “intangible property” instead of legal tender. If a consumer pays in bitcoin he is engaging in “barter trade” for which the goods and services are taxed, not the payment token itself. The same goes for businesses that can value their goods’ tax burden against government-issued money metrics.
Utility token transactions, conversely, are “unlikely” to trigger a taxable event for the user, whose acquisition of them as a right to future services “will be treated as prepayment.” In fact, utility tokens’ use will actually be deductible under the guide.
Security tokens operate under the same loose tax laws Asia’s tax haven applies to other securities. Singapore levies no capital gains tax on securities of any kind and sparingly taxes dividends depending on the issuer, leaving security tokens taxable only when classified as a “revenue asset.”
Singapore's investor-friendly tax scheme leaves security token ICO issuers with the entirety of their raised capital. Utility token ICO issuers are not so lucky. Their proceeds are effectively deferred revenue that is taxable as soon as they deliver the goods. Payment token ICO issuers need to pay right away, though the guide said such schemes are “uncommon.”
Join the chat — https://t.me/joinchat/AAAAAE84vCXg5PK-VpHADg
submitted by Golubyev_Sergiy to u/Golubyev_Sergiy [link] [comments]

The badeconomics of Facebook’s Libra

Facebook issued a whitepaper on the new cryptocurrency that they’re issuing, the Libra. Now, the whitepaper lacks any technical details about their plans (composition of currency basket, the exchange rate, etc.) The sources that they use are bad. But I’ll try to focus on why the Libra is a bad idea, at least at addressing the unbanked who Facebook claims to support.
So how will it work?
Facebook takes your money, puts some of it in a bank and uses the rest to buy securities from various countries. They then “mint” a new coin and give it to the user. When people want their money back, Facebook just “burns” the Libra and sells securities. This means the Libra is based on a basket of securities and bank deposits (see: Money Market Funds and Currency ETF).
What’s Facebook’s plan?
Facebook plans on tackling two problems with the Libra. The first and most important is to “bank the unbanked”, aka providing people with access to financial services. The second is to help reduce remittance fees and make it easier to transfer money. The second point will probably be how most people use the Libra.
Some issues with the Libra:
It won’t help the unbanked
Facebook’s main plan is to help the “unbanked”. In the problem statement, they acknowledge that;
“those who remain “unbanked” point to not having sufficient funds, high and unpredictable fees, banks being too far away, and lacking the necessary documentation”.
It seems that they forgot about two other reasons that were given in the World Bank paper that they cited: some people don’t need a bank account (30% of people) and some rely on family members with bank accounts (26% of people). Even so Facebook’s system will only solve two of these problems (high fees and distance) and will do nothing about the biggest reason people don’t have a bank account, not having enough money (66% of people).*
David Marcus, the current head of Calibra, said this in an update;
“The very people who say they lack the money to open a bank account are actually not saying that they have no use for modern financial services. They’re just saying they can’t afford to access the system, so they remain on the fringes and are forced to use services that charge exorbitant fees and rates.”
I guess he never read the report used by Facebook, where excessive fees was a separate reason cited by 26% of respondents.
I also want to clarify the documentation issue. This usually refers to Know-Your-Customer and anti-money laundering laws, which vary in each country. Facebook will have to adhere to these same laws when setting up Libra unless they want to get tackled by every financial regulatory agency in the world. These laws typically require identity proof and address proof, things that many poor people are unable to provide. And that means they can’t help the unbanked.
*Note that people were allowed to choose multiple reasons, so the total adds up to more than 100%
How are people going to get their Libra?
If you look at the list of corporations and organizations partnering with Facebook, it’s not very hard to notice that some pretty important firms are missing; Banks. Which begs the question, how are people going to convert their hard-earned money into Libra? In the video that they showed, it looks like people can use credit and debit cards, but that doesn’t help the unbanked. You can hand someone cash in exchange for them sending you Libra, but that’s always risky. The World Bank report gives us some potential answers;
“People using digital payments need to be able to deposit and withdraw cash safely, reliably, and conveniently at cash-in and cash-out points”.
One example is a post office. However, post offices are probably not going to accept anything other than legal tender, which means no Libra. Physical infrastructure is important, especially to serve developing countries. Facebook seems to have forgotten about that.
They don’t have phones
Facebook refers to a statistic from the World Bank that 1.7 billion adults are unbanked, of which 1 billion own mobile phones and half a billion have internet access. Let’s just ignore that last number, as I have no clue where they got it from. The 1 billion strikes me as being quite high, and there’s a reason for that. The study that they used looked at mobile phones, not just smartphones. The rhetoric that they use in their whitepaper and in official responses from the company seems to imply that Libra can only be used through apps and web browsers.
This doesn’t mean that it’s impossible to use mobile payments on non-smartphone devices; there is a very popular mobile payment system in Kenya called M-Pesa that transfers money through texts. But it will be a while before an independent developer gets that working, if it ever happens. And until then, the 50% of people in developing countries without access to smartphones will not be able to use Libra.
It’s unstable
It’s true that the Libra won’t be very volatile. But as the exchange rates of the currencies backing the Libra fluctuate, the value of the Libra is going to change as well. Facebook mentioned it in their whitepaper, so it’s not like they don’t know about it. If exchange rates swing the wrong way, users could find themselves losing a significant portion of their initial purchase. And while it’s possible that banks and retailers might start to accept Libra in transactions or to pay off mortgages, until the government starts accepting taxes in Libra (aka never), people will always have to convert Libra into something else. As long as the need for conversion exists, there will be risk.
And while we’re on this topic, lets talk about those countries with unstable currencies. Many people from those countries will invest their money into Libra. But that just causes the local currency to depreciate in value, making the poor people without access to the Libra worse off.
Additional ranting
They use the price of a phone from Best Buy to show that people across the world can buy smartphones for $40 (it’s on sale for $28 right now if you were curious). They seem to have forgotten that the US is not the only country in the world (don’t worry, it’s a pretty easy mistake for us Americans to make). Now, admittedly it’s quite hard for me to find data for minimum phone prices for all countries in the world. But then again, I’m not Facebook. I would assume that households in developing countries would have to spend a larger portion of their monthly income to buy a mobile phone than households in America.
Honestly, looking at the sources that they cited, it seems more and more like some intern just used the first search result from Google instead of doing any actual research.
It’s not cryptocurrency
Yes, it is blockchain (it actually might not be, I just don’t understand crypto very well and it doesn't really matter for this sub). It’s considered to be a stablecoin, a cryptocurrency that is tied to other assets. But that’s about the only thing that makes it a cryptocurrency. Unlike bitcoin, it should be a decent store of value and has the potential to be a medium of exchange and a unit of account if retailers start adopting it. Which means it can actually be used as money. There’s a central reserve that fully controls the Libra. And unlike other stablecoins, the Libra is also backed by securities. As far as I’m aware, assets backed by securities are securities (at least that’s my definition).
If you really think about it, transacting in Libra is like paying for your groceries or the movies using shares from a money market fund. This should be considered capital gains (or losses), and would be taxed as such. Financial regulators are really going to love that.
No interest
Facebook’s plan is that “Users of Libra do not receive a return from the reserve.” Facebook will put a portion of the user’s money into a bank account. However, any interest earned will be kept as profits. This means that people who use the Libra can’t do anything about inflation without converting it to their local currency. This seems like a big oversight for company that seems to be betting on users holding on to their Libra and not exchanging it for their local currency.
Now, for people in countries that experience hyperinflation, this is not an issue. Libra would probably be less risky than the local currency and would protect their earnings. However, for the rest of the world bank deposits just seem like a better choice.
Conclusion
Now, this doesn’t mean that Facebook doesn’t have any valid concerns. Remittance fees are extremely high for people trying to transfer money anywhere. Having greater financial inclusivity would help reduce inequality and poverty. Digital technology is likely the best way for that to happen. But the idea that Facebook will help to “bank the unbanked” is a lie.
submitted by hubstar1453 to badeconomics [link] [comments]

CRYPTOCURRENCY BITCOIN

CRYPTOCURRENCY BITCOIN
Bitcoin Table of contents expand: 1. What is Bitcoin? 2. Understanding Bitcoin 3. How Bitcoin Works 4. What's a Bitcoin Worth? 5. How Bitcoin Began 6. Who Invented Bitcoin? 7. Before Satoshi 8. Why Is Satoshi Anonymous? 9. The Suspects 10. Can Satoshi's Identity Be Proven? 11. Receiving Bitcoins As Payment 12. Working For Bitcoins 13. Bitcoin From Interest Payments 14. Bitcoins From Gambling 15. Investing in Bitcoins 16. Risks of Bitcoin Investing 17. Bitcoin Regulatory Risk 18. Security Risk of Bitcoins 19. Insurance Risk 20. Risk of Bitcoin Fraud 21. Market Risk 22. Bitcoin's Tax Risk What is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity is yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Understanding Bitcoin Bitcoin is a type of cryptocurrency: Balances are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Style notes: According to the official Bitcoin Foundation, the word "Bitcoin" is capitalized in the context of referring to the entity or concept, whereas "bitcoin" is written in the lower case when referring to a quantity of the currency (e.g. "I traded 20 bitcoin") or the units themselves. The plural form can be either "bitcoin" or "bitcoins."
How Bitcoin Works Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places. Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain and receiving a reward in the form of a few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of February 2019, the mining difficulty is over 6.06 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.
What's a Bitcoin Worth? In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Bitcoin's price is also quite dependent on the size of its mining network since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months.
How Bitcoin Began
Aug. 18, 2008: The domain name bitcoin.org is registered. Today, at least, this domain is "WhoisGuard Protected," meaning the identity of the person who registered it is not public information.
Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.
Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.
Who Invented Bitcoin?
No one knows. Not conclusively, at any rate. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. The Bitcoin protocol requires users to enter a birthday upon signup, and we know that an individual named Satoshi Nakamoto registered and put down April 5 as a birth date. And that's about it.
Before Satoshi
Though it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not happen in a vacuum. All major scientific discoveries, no matter how original-seeming, were built on previously existing research. There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself cites Hashcash and b-money, as well as various other works spanning several research fields.
Why Is Satoshi Anonymous?
There are two primary motivations for keeping Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
The Suspects
Numerous people have been suggested as possible Satoshi Nakamoto by major media outlets. Oct. 10, 2011, The New Yorker published an article speculating that Nakamoto might be Irish cryptography student Michael Clear or economic sociologist Vili Lehdonvirta. A day later, Fast Company suggested that Nakamoto could be a group of three people – Neal King, Vladimir Oksman and Charles Bry – who together appear on a patent related to secure communications that were filed two months before bitcoin.org was registered. A Vice article published in May 2013 added more suspects to the list, including Gavin Andresen, the Bitcoin project’s lead developer; Jed McCaleb, co-founder of now-defunct Bitcoin exchange Mt. Gox; and famed Japanese mathematician Shinichi Mochizuki.
In December 2013, Techcrunch published an interview with researcher Skye Grey who claimed textual analysis of published writings shows a link between Satoshi and bit-gold creator Nick Szabo. And perhaps most famously, in March 2014, Newsweek ran a cover article claiming that Satoshi is actually an individual named Satoshi Nakamoto – a 64-year-old Japanese-American engineer living in California. The list of suspects is long, and all the individuals deny being Satoshi.
Can Satoshi's Identity Be Proven?
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins. Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.
Receiving Bitcoins As Payment
Bitcoins can be accepted as a means of payment for products sold or services provided. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touch screen apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers, like credit cards, PayPal, etc. Online payments will require a Bitcoin merchant tool (an external processor like Coinbase or BitPay).
Working For Bitcoins
Those who are self-employed can get paid for a job in bitcoins. There are several websites/job boards which are dedicated to the digital currency:
Work For Bitcoin brings together work seekers and prospective employers through its websiteCoinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as Dogecoin and LitecoinJobs4Bitcoins, part of reddit.comBitGigs
Bitcoin From Interest Payments
Another interesting way (literally) to earn bitcoins is by lending them out and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub, and BTCjam. Obviously, you should do due diligence on any third-party site.
Bitcoins From Gambling
It’s possible to play at casinos that cater to Bitcoin aficionados, with options like online lotteries, jackpots, spread betting, and other games. Of course, the pros and cons and risks that apply to any sort of gambling and betting endeavors are in force here too.
Investing in Bitcoins
There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.
In March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property rather than currency. Gains or losses from bitcoins held as capital will be realized as capital gains or losses, while bitcoins held as inventory will incur ordinary gains or losses.
Like any other asset, the principle of buying low and selling high applies to bitcoins. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own bitcoins. Here are a few options which Bitcoin enthusiasts can explore.
Risks of Bitcoin Investing
Though Bitcoin was not designed as a normal equity investment (no shares have been issued), some speculative investors were drawn to the digital money after it appreciated rapidly in May 2011 and again in November 2013. Thus, many people purchase bitcoin for its investment value rather than as a medium of exchange.
However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a long-term track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
Bitcoin Regulatory Risk
Investing money into Bitcoin in any of its many guises is not for the risk-averse. Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict or ban the use and sale of bitcoins, and some already have. Others are coming up with various rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies dealing with the buy, sell, transfer or storage of bitcoins to record the identity of customers, have a compliance officer and maintain capital reserves. The transactions worth $10,000 or more will have to be recorded and reported.
Although more agencies will follow suit, issuing rules and guidelines, the lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.
Security Risk of Bitcoins
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner's computer hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. (Users can prevent this only if bitcoins are stored on a computer which is not connected to the internet, or else by choosing to use a paper wallet – printing out the Bitcoin private keys and addresses, and not keeping them on a computer at all.) Hackers can also target Bitcoin exchanges, gaining access to thousands of accounts and digital wallets where bitcoins are stored. One especially notorious hacking incident took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after millions of dollars worth of bitcoins were stolen.
This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible. It's like dealing with cash: Any transaction carried out with bitcoins can only be reversed if the person who has received them refunds them. There is no third party or a payment processor, as in the case of a debit or credit card – hence, no source of protection or appeal if there is a problem.
Insurance Risk
Some investments are insured through the Securities Investor Protection Corporation. Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
Risk of Bitcoin Fraud
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Market Risk
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news." According to the CFPB, the price of bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%.
If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. There is already plenty of competition, and though Bitcoin has a huge lead over the other 100-odd digital currencies that have sprung up, thanks to its brand recognition and venture capital money, a technological break-through in the form of a better virtual coin is always a threat.
Bitcoin's Tax Risk
As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.
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Related Terms
Satoshi
The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency.
Chartalism Chartalism is a non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Satoshi Nakamoto The name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is closely-associated with blockchain technology.
Bitcoin Mining, Explained Breaking down everything you need to know about Bitcoin Mining, from Blockchain and Block Rewards to Proof-of-Work and Mining Pools.
Understanding Bitcoin Unlimited Bitcoin Unlimited is a proposed upgrade to Bitcoin Core that allows larger block sizes. The upgrade is designed to improve transaction speed through scale.
Blockchain Explained
A guide to help you understand what blockchain is and how it can be used by industries. You've probably encountered a definition like this: “blockchain is a distributed, decentralized, public ledger." But blockchain is easier to understand than it sounds.
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By Satoshi Nakamoto
Read it once, go read other crypto stuff, read it again… keep doing this until the whole document makes sense. It’ll take a while, but you’ll get there. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party

submitted by adrian_morrison to BlockchainNews [link] [comments]

[Weekly Report] Micropayments Change the Future of Blockchain

[Weekly Report] Micropayments Change the Future of Blockchain
Dear friends of LivesOne,
In the previous weekly report, we mentioned that LivesOne would focus on building a payment platform, which is our major development direction. After a period of research, we recommend BSV's micro-payment. We're all familiar with payments, but what exactly is micropayment? Let's learn about it today.
What is micropayment?
Micropayment is compared with the existing third-party payment system. At present, PayPal is the world's largest third-party payment provider, and its "micro payment" service charges 5% plus 5 cents for each transaction. If it's a $1 deal, PayPal charges a 10% commission.
At present, PayPal as an American company has almost monopolized the third-party payment market except China. Alipay and WeChat have monopolized the Chinese market, but their status is not unbreakable. If you are a Chinese businessman, the goods you sell may be bought by foreigners, while Alipay and WeChat only connect the domestic consumers. Will you refuse to add a collection options? If you are a Chinese consumer and want to buy goods only sold by foreign businesses, will you refuse to install an additional payment option? Under the general trend of global commodity connectivity, the market scale of cross-border payment in China has been growing steadily year by year.
https://preview.redd.it/r5jb1fi2nb841.jpg?width=720&format=pjpg&auto=webp&s=66a00e8d6e990b0969d35109271677b36fafb373
If Alipay and WeChat are do nothing, the market share will definitely decrease year by year. In contrast, because the underlying design of BSV is the original bitcoin and point-to-point, the operation cost and handling fee are far lower than PayPal. It's also a $1 deal, with BSV charging about $0.0003. This means that there is no pressure on the BSV network that PayPal cannot cover.And even if PayPal is adjusted to a lower fee than the BSV network, BSV can be adjusted accordingly, because of the relative cost advantage.
BSV opens up the situation through micropayment and circulates as a global commodity (like physical gold). Payee can choose not to convert it into legal tender and deposit it like gold. Paypal will never be able to do that without the advantage of currency exchange.
Micropayment instance of BSV
As one of the application development of BSV, Mediopay in Germany has launched a product for article reading.
https://preview.redd.it/z2eyzhu3nb841.jpg?width=720&format=pjpg&auto=webp&s=6dd5b3022317c43747f1c7c42f6447d635c146bd
As an example, the demo on the official website of the above picture: Regardless of the national currency of the readers in the world, readers only need to pay the BSV of the same value (such as the 22 cents in the figure) to read the article.
The application is based on WordPress, the world's largest personal blog tool. Bloggers can use the app on WordPress in a few simple steps, and set the amount that readers need to pay to activate the paid reading function.
Even a transaction with a price of as little as 1 cent,you only needs to pay 3% of the handling fee to BSV miner, which may even continue to decrease in further. As an application developer (such as the Mediopay team), you can charge the author a percentage of the service fee. Taking the one-cent micropayment as an example, if 3% of the service charge is paid to BSV miner, the developer can get the service charge to 7%. The third-party payment tool represented by PayPal is only a development team, even if the team structure is complex and huge. However, there is no limit to the number of development teams based on BSV payment tools, and they are globally distributed. If you don't do it, someone else will do it.
Many knowledge payment platforms provide the function of paid reading, but they cannot be allowed to purchased only one article. This rejects the majority of readers with only mild reading needs. Micropayments precisely solve this problem. Because there is no longer bundled sale, excellent authors can stand out quickly - which in turn boosts the consumer market.
Micropayment breaks the existing business model. It is imperative for LivesOne to introduce BSV micropayment. Let's look forward to it.

Symbiosism Economy Foundation
Jan.2nd, 2020
submitted by LivesoneToken to LivesOne [link] [comments]

What is the difference between digital currency, virtual currency and cryptocurrency?

What is the difference between digital currency, virtual currency and cryptocurrency?
When we read articles about bitcoin, ethereum, etc., do these words always appear: digital currency, virtual currency, cryptocurrency?They look similar, so are they different?
In fact, virtual currency, digital currency, cryptocurrency, there is no very clear definition, sometimes the use of media interspersed, but strictly speaking, there are some differences.

1. Digital currency

At present, the definition of digital currency is still quite different, but we can understand it as a kind of currency presented in digital form, rather than physical currency such as paper money and COINS, which performs the functions of physical currency, but can support instant transaction and transfer of ownership without geographical restrictions.
Simply put, digital currency is the currency that exists in the digital world.

What is the difference between digital currency, virtual currency and cryptocurrency?

2. Virtual currency

How to define virtual currency?In 2014, the European banking authority (EBA) defined it as: “a virtual currency is a digital expression of value, not issued by a central bank or public authority, not necessarily linked to a legal tender, but accepted by a natural or legal person as a means of payment, which can be transferred, stored or traded electronically.”
In short, virtual currency is any currency that is not printed on paper or printed on metal, so it is virtual and exists only in the virtual world.Virtual currency can only be used in one direction and cannot be exchanged for cash or transferred.
In addition, the issuing quantity of virtual currency is determined by the issuing company, and the issuing quantity and pricing can be changed at any time. Its credit guarantee comes from the brand credit of the operator.So, to some extent, this kind of virtual currency is more like a toy.

cryptocurrency

3. Cryptocurrency

Since the emergence of bitcoin, many people think it is both digital and virtual currency.
In fact, cryptocurrency is a digital currency created based on some encryption algorithm. It is not issued by any centralized institution, and theoretically it will not be affected by government intervention or control.
Cryptocurrency is “encrypted” as opposed to “unencrypted.””Unencrypted” currencies are centralised, with the number of issues determined by the issuer, a group of people and a computer network that monitors online transactions.In addition, transactions in “non-encrypted” currencies are regulated by centralized institutions, and wallet addresses and transaction information are not published.Digital currencies issued by countries or virtual currencies issued by companies are of this type.
Cryptocurrency uses a distributed accounting system, and the consensus mechanism is developed by most users in the community, which provides good privacy protection for users.However, its trading information is completely open and transparent, and trading rules will not be arbitrarily changed by one institution or individual, subject to the supervision of all members.
In general, cryptocurrencies are the smallest category, which includes digital currency and virtual currency.
We can say that bitcoin is a kind of digital currency or virtual currency, but we can’t say that digital currency or virtual currency is bitcoin.Generally speaking, only currencies based on blockchain technology (including cryptography and encryption algorithms) can be called cryptocurrency.
Digital currency, in general, can be called digital currency as long as it is based on digital technology.But it is technically equivalent to legal tender and is issued by governments.Virtual currency, on the other hand, is relative to the real currency. Any currency that cannot be seen or touched can be called virtual currency. Theoretically, it has a wider range than digital currency, but it is not digital currency or cryptocurrency.The above is the answer of the Bit Century exchange(BTCC), I hope this can help you better understand the differences between the three, if you are interested in bitcoin, blockchain, please pay attention to the Bit Century exchange(BTCC)!

Bit Century exchange
What is BTCC Exchange?
Bit Century (BTCC) is the world’s first digital asset trading platform jointly initiated by the bitcoin consensus and the developer community. BTCC collected COINS developers around the world, the prophet of community members, pioneer is committed to the currency of the development and the prosperity of one hundred, the perfect combination of centralized exchange bits high performance and high reliability advantages of decentralized and chain, with its original plans and deflation SIEO community business model to realize the sustainable development of the developer community, through the exchange has its own value chain to realize digital asset security, project the raise, calculate the force motivation, assets, and super node decision system, all-round service to our trading platform.
submitted by btcc100 to Bitcoin [link] [comments]

Why I Sold My Bitcoin

Disclaimers:
I think it's important to share a contrarian view here, given the hype and euphoria over the last few days. I think I also have a some-what unique perspective on cryptos. Educated as an economist, I've spent a career in the technology departments of large banks. I've also taken the licensing exams to open my own investment manager, though I haven't launched one yet. I held some bitcoin as a speculation, but have exited on this rally because the mania is getting out of hand - even for a believer in the technology with high risk tolerances.
I'm not trying to be a downer or spread FUD - just provide a sobering reality check based on my understanding of investing and market structure. After all, it is extremely easy to lose sight of reality when you're sitting on fat paper profits. That type of complacency is an integral part of market cycles and one of the core weaknesses that professional traders exploit.
I do believe bitcoin is both something of tremendous value, and a bubble. History shows that bubbles form as society digests new forms of value - it happened as humans minted their first coins, their first paper currency, their first stocks and bonds, etc. Every new innovation in financial instruments is typically accompanied by some sort of bubble - the 2008 innovations in mortgage securities should be fresh and memorable for most.
The size and scale of the bitcoin bubble's inflation speaks about the underlying technology. It will, no doubt, be transformative across society - in many ways we cannot foresee now. However, that doesn't mean it has unlimited value, and "it'll go to the moon!" Or that it's even an investment. In fact, the hallmark of a bubble when people buy for fear of missing out on a price, without connecting that price to underlying economic activity. That's exactly what's happening here.
Why Bitcoin is NOT an Investment, and that's Okay
First, let's talk about what an investment is. By definition, an investment is an asset that yields a return above its purchase price.
If you invest in bonds or equities, you're usually looking at some kind of discounted cash-flow to decide whether to invest or not. Either your bond will pay a coupon of $X per year, or your company will generate $X amount of cash annually - and you project these values over time. Then you compare that to the return on less risky assets, like the US 10 year Treasury, and decide if the return is worth the risk.
But bitcoin doesn't yield anything. No matter what industries it disrupts or entrenched powers it destroys, it will never yield anything. If you own 1 BTC today, it's still 1 BTC in the future without any dividends, coupons, or splits. By definition, it cannot be an investment - there's no return. Non-yielding assets can never be an investment.
This is why bitcoin is a cryptocurrency. Crypto for the source of authority (proof-of-work or proof-of-stake), but currency for the asset's behavior. You don't invest in a currency, you can only speculate in it. You can buy a currency in order to buy investments denominated in that currency (eg. trading dollars for yen to buy Japanese Government Bonds), but the currency itself is never an investment.
Now, it's perfectly okay to buy another currency in expectation that it's price (against your 'native' currency) will rise. But that's just a trade, and one fueled by speculation. And some speculation is okay, it helps grease financial markets and discover 'real' prices. It's just important not to fool yourself, and to realize what you are doing. This also means no HODLing - every transaction has a lifecycle that ends in liquidation.
Some professionals make a living doing this, but typically they're not just speculating - they're helping institutions and companies intermediate between their 'native' currency and wherever they do business.
Are you Toyota selling a car in the US, trying to bring your dollars home as yen? A currency trader can help you. It's probably also probably worth noting here the recent settlements between the world's biggest banks and their regulators for openly fixing currency markets. The professionals tend to stay in business with a healthy dose of fraud and trading against their clients.
This is not behavior to emulate, and should give pause to anyone speculating in cryptocurrency. Who do you think you're trading against when you buy bitcoin from an exchange? There's a concept that everyone trading needs to know - the 'greater fool trade.' Are you buying because you have reasonable ideas about what the asset will return, or because there's a greater fool who will pay you more for it?
From what I've seen, and the yield on bitcoin, it seems like most people are betting there are greater fools out there.
'Hard Money' and Metcalfe's Law
These are common arguments I've seen posted here. A lot of people don't trust the Federal Reserve, or think of bitcoin as some technology that can be priced according to a model that describes the adoption of ethernet. Neither make a ton of sense in the light of day.
The bitcoin mining curve is modeled after gold, the original 'hard money'. By design, it's supposed to be deflationary. I'll admit I've never gotten along well with gold bugs and usually don't persuade them, but I'm happy to trade against them.
There's hundreds of year of economic history demonstrating that deflationary currencies are bad for economic growth. Where deflationary currencies have existed, they've been out-competed by mildly inflationary currencies. This is why they don't exist anymore, except for brief periods of severe economic stress. The idea that real economic activity can occur with a deflationary bitcoin is contrary to both experience and theory, which shows that 'real' economic activity slows as people anticipate further gains in currency value. The incentive is to hoard instead of spending or lending, so they don't, and economic activity falls.
Likewise, gold has been a bad inflation hedge, and there's no reason to expect bitcoin to do better. The last hundred years of data shows that even in inflationary periods, stocks have performed better than gold (inflation adjusted, anyone who bought gold at it's local maxima in 1980 at $650/oz would still be underwater at 2011's global maxima at $1,900/oz). And needless to say, stocks have yielded many-fold the return over gold in that time period by dividends alone.
If you're holding bitcoin because you don't trust the dollar or are worried about inflation, you should ask yourself why you don't also hold gold. It's the same logic. Then you should ask yourself why you would hold either.
As for Metcalfe's Law, this is a bit of a red herring. The idea is simple - networking effects produce exponentially more value as more people join the network. Champions of this idea point to fax machines, the internet, and Facebook - and publish interesting graphs showing the price of bitcoin neatly following Metcalfe's curve.
But we need to remember what we're examining - users of the network. If I register a Coinbase account to speculate on bitcoin, am I really using the bitcoin network? Is bitcoin's value proposition becoming more valuable intrinsically? Or is the price just increasing, because of the money flowing into it?
Twitter provides a good example. It's dominated by bots who are 'on the network', but provide marginal value and don't conform to Metcalfe's Law. It's taken a few years, but the price (what you pay) has caught up to the value (what it's worth), as the market has digested that many nodes in the network don't really count.
If the value proposition of bitcoin is in trustless transactions, how many of it's exponentially growing users are actually using bitcoin to perform trustless transactions? Transaction volumes are relatively flat year-on-year, while the number of new wallets have skyrocketed - so let's not fool ourselves about Metcalfe's Law. Correlation does not mean causation, and the network is not becoming more intrinsically valuable because more people are trying to speculate on bitcoin's price.
There IS some real growth here from adoption in jurisdictions where cryptos have been recognized as legal tender, but we can't fool ourselves about the impact there. Again, bitcoin is deflationary, and the incentives are hold instead of spend. If recognition and accessibility were really driving adoption, transaction volumes shouldn't be flat year-on-year.
But What About the MASSIVE DISRUPTION?
This is where bitcoin shines - it has tremendous disruptive potential. It allows counterparties to interact without trust or central authority, which removes the role for banks, money transfer agents, and other folks who would usually clip some part of a transaction. Open, distributed blockchains will revolutionize many industries and social institutions.
However, this doesn't go too far in helping bitcoin's value. An asset's value depends on the rights it bestows to the owner - just like above, where we could value a stock or bond by the rights to the cashflow it grants. But what does bitcoin grant the owner?
We come up short. Bitcoin is a token representing a proof-of-work for authenticating transactions on the network. All it grants to the owner is a high mathematical likelihood that the token is not fraudulent or double-spent. So what's that worth?
Depends on who you're transacting with. When we pay in dollars, there are systems in the background looking for fraud. These costs get spread across society in the fees we pay for credit cards (both in our interest charges, and the fees charged to merchants for accepting cards). If we don't need a card issuer and bank to back the transaction and guarantee that it's legitimate, there is substantial value that can be recaptured.
Likewise, bitcoin's portability can be a source of value. If you can send bitcoin across borders, there's no need for money transfer agents to send remittances. There's no need to be scammed by a cabal of currency traders. This is all value that can be recaptured as old, expensive institutions become irrelevant.
However - is that value recaptured by the owner of the bitcoin? Or is it captured by the nodes on the network authenticating the transaction?
Bitcoin would substantially reduce the fee for sending money, but the actual fee would go to the miners - not the holder of bitcoin tokens. Holders of bitcoin would see no direct benefit.
Now - it's reasonable to think, "if bitcoin replaces those institutions, that's trillions of dollars that will have to flow into bitcoin, and the price will skyrocket!". And there's some truth to that. Based on money flow and bitcoin's illiquidity, it will have to rise. But it's not realistic that things will happen that way, as it embeds some bad assumptions:
The first two points are fairly straightforward. Even if bitcoin replaces existing institutions, it's important to consider how and when - and whether the market price for bitcoin today is being too optimistic and forward-looking. Likewise, bitcoin is not the only game in town, and other cryptos already have value propositions that can out-compete in certain niches. All the big banks are already working on their own blockchains, which aren't as revolutionary as bitcoin, but will likely be easier for mass consumer adoption.
The last bullet point is the real rub. Bitcoin is deflationary, and a main purpose of banks is to create leverage throughout the monetary system. $1 deposited in a bank can become $5 throughout the whole system, and extended further with clever credit structures and derivatives. Because bitcoin is deflationary, that kind of leverage (and face amount of fiat) cannot be lifted-and-shifted into bitcoin. No one would lend, except at interest rates high enough to contract the money supply. Several trillion dollars in the banking system today would shrink by orders of magnitude in a bitcoin economy. The initial inflows would create a spike in the dollar value of bitcoin, but economic activity would grind to a halt shortly after.
This is why the really smart folks like Andreas Antonopolous comment far more on what the technology can do than what the token is worth. It's why he's testified to the Canadian Senate that we will see many different 'monetary recipes' across different cryptos, and the future is wide open for any mix of them to dominate. It's why he talks about the bitcoin protocol as a base layer, which may be abstracted from any future end-use and doesn't speculate on the price.
If you're sitting on a big profit, maybe it's time to re-examine exactly why you think there's substantial value ahead. And if you're buying in at these levels, you should be asking yourself why it's worth paying ~$10k. As prices go up, the risks get bigger - not smaller. The rate of advance means there are a lot of people who have bought in the last three months, and could quickly leave if they see a big profit turn to a loss. Anytime a market moves like this is a time for greater caution, not greater greed.
** TL/DR ** There's a lot of enthusiasm, backed by naive and childish arguments, saying that bitcoin should keep advancing at a rapid clip. But there are still serious impediments, and even success of bitcoin (the technology) doesn't mean the tokens are worth anywhere near where they trade today. Everyone should be taking this rally as an opportunity to reality check their assumptions, and figure out if they're long because they're bullish - or if they're bullish because they're long. You can still love bitcoin without the hype.
submitted by The_Scho_Empire to Bitcoin [link] [comments]

How to help the Nano ecosystem # 2018.11.02

Rules for the thread:
 

Chapter 1 - Basics

Upgrading the global monetary system: Nano is a deflationary digital currency that has instant transactions and zero fees: https://nanolinks.info
 

Chapter 2 - Infrastructure | Payment Gateways

 

Chapter 3 - Infrastructure | Exchanges

 

Chapter 4 - Infrastructure | POS

 

Chapter 5 - Infrastructure | ATM

 

Chapter 6 - Usability | Hardware Wallets

 

Chapter 7 - Usability | Programming and Design

 

Chapter 9 - Media

 

Chapter 10 - Social Media

Upgrading the global monetary system: $NANO is a deflationary #cryptocurrency that has instant transactions and zero fees: https://nanolinks.info
 
#money #forex #business #startup #finance #investing #trading #markets #economy #blockchain #bitcoin #ethereum #crypto
 

Chapter 11 - Other

 

Now actually choose something and do it!

submitted by laurbyteball to nanocurrency [link] [comments]

How to help the Nano ecosystem # 2018.12.04

Rules for the thread:
 

Chapter 1 - Basics

Upgrading the global monetary system: Nano is a deflationary digital currency that has instant transactions and zero fees: https://nanolinks.info
 

Chapter 2 - Infrastructure | Payment Gateways

 

Chapter 3 - Infrastructure | Exchanges

 

Chapter 4 - Infrastructure | POS

 

Chapter 5 - Infrastructure | ATM

 

Chapter 6 - Usability | Hardware Wallets

 

Chapter 7 - Usability | Programming and Design

 

Chapter 9 - Media

 

Chapter 10 - Social Media

Upgrading the global monetary system: $NANO is a deflationary #cryptocurrency that has instant transactions and zero fees: https://nanolinks.info
 
#money #forex #business #startup #finance #investing #trading #markets #economy #blockchain #bitcoin #ethereum #crypto
 

Chapter 11 - Other

 

Hopefully subscribers start pitching in, and we'll see some comments here about it.

submitted by laurbyteball to nanocurrency [link] [comments]

/u/PoliteCanadian on Should bitcoin or precious metals be given legal tender status? Why or why not?

I don't think either need legal tender status. Mcdonalds should be forced to take 1/32 of an ounce of gold for a hamburger.
If something isn't legal tender then you can't be forced to accept payment in it. That's the definition of legal tender.
from PoliteCanadian on Should bitcoin or precious metals be given legal tender status? Why or why not?
submitted by rightwingnews to DebateRightists [link] [comments]

"Investing" in Cryptocurrencies (Article)

Article by Mr. Money Mustache on Bitcoin.
I've enjoyed this blog, and this post was really well thought out. It explains that buying cryptocurrency is speculation, not investment:
No, you should not invest in Bitcoin. The reason is that it’s not an investment. Just like gold, tulip bulbs, Beanie Babies, 1999 dotcoms without any hope of a product plan, “pre-construction pricing” Toronto condominiums you have no intent to occupy or rent out, and rare baseball cards are not investments.
These are all things that people have bought in the past, and driven to completely irrational prices, not because they did anything useful or produced any money and value to society, but solely because they thought they would be able to sell them to someone else for more in the future.
When you make this kind of purchase, which you should never do, you are speculating
The author then explains that while the underlying technology (blockchain) may or may not have intrinsic value, because it's free for anyone to use, there's no stopping the proliferation of thousands/millions/billions of different types of cryptocurrencies.
He also talks about necessary qualities of currency, where a currency must have/be
easy and frictionless trading between people, widely accepted as legal tender for all debts, public and private, and a stable value that does not fluctuate (otherwise it’s impossible to set prices)
which Bitcoin doesn't possess.
Finally, he links a few other articles, which I enjoyed just as much as the original blog post.
Edit:
I'm adding the author's definition of an investment:
Investing means buying an asset that actually creates products and services and cashflow for an extended period of time. Like a piece of a profitable business or a rentable piece of real estate. An investment is something that has intrinsic value – that is, it would be worth owning from a financial perspective, even if you could never sell it.
submitted by kuningas51 to personalfinance [link] [comments]

PINCOIN : Scam ICO of the Year 2018

The crypto currency community, investors and other crypto enthusiast get shock to what happen to the project called PINCOIN. An online collaborative consumption platform for global community, based on the foundation of Sharing Economy, Blockchain Technology, and Artificial Intelligence.
The scam happened in Vietnam, where a company named Modern Tech launched its own ICO for their own crypto token called Pincoin.
The Pincoin website(https://pincoin.io/), while expertly made and beautifully presented, offers nothing in the way of clarity over precisely what the project is after to. Instead, it is filled with obscure catchphrases such as “The Sharing Economy 2.0” and a YouTube video promising that Pincoin is bringing the future to the masses. Because of this flowery words they attract almost 32,000 investors in their platforms which invest not a small amount!! because the project promises that every investors will or might get an almost 48% monthly return of their initial investments and by this if you carefully analyze their goal it's almost impossibility to make that big returns yet there are so many people who get attracted and risk. Immediately after paying out cash to its investors, Pincoin started paying out those promised returns in a new token called iFan. Then, the company’s seven team members – all Vietnamese nationals – disappeared, leaving only a gaggle of jaded investors outside their former offices.
Modern Tech had said it was only an official representative of both coins in Vietnam, before media reports confirmed its seven Vietnamese executives were in fact the masterminds behind them.
According to local news outlet Viet Bao, the owner of Modern Tech’s office building said the company had moved out a month prior in early March.
Modern Tech left and liquidated a contract about one month ago,” the publication quotes the firm as saying. “No one knows where they are located now.”
Pincoin had been under suspicion online for months. Financial scam directory Behindmlm released an analysis in February 2018 that noted its buy-in method and opaque nature were characteristic of an “ROI ponzi.”
The scheme’s website remains online, along with Ifan’s, which masqueraded as a bridge between celebrities and their fans.
The severity of the alleged scams, both in scale of its operation and the reported losses suffered by victims, has seen the office of Nguyen Xuan Phuc, Vietnam’s Prime Minister, publish a directive ordering the State Bank of Vietnam, the Ministry of Public Securities and other authorities to reinforce and strengthen the management of “activities related to bitcoin and other cryptocurrencies”. A separate statement from Vietnam’s deputy prime minister Vuong Dinh Hue has ordered six governmental ministries to “quickly consider and take down” the scam.
While Vietnam was reported to have been preparing to legalize legitimate cryptocurrencies like bitcoin in mid-2017, the central bank has since enforced laws to prohibit the usage of bitcoin as legal tender in the country.
There are many reviews says that this is like a ponzi scheme coin and really doesn't have a future but why there are so many investors? The reason behind this is the way that the group is promoting their product and how well they design their website having fake information and the high return of the investment people always wants an easy money but they don't know what will happen if you like a fast money. The way of analyzing the project you can tell that it is really too good to be true for its motif this project will be definitely become scam.
The total amount raised by the Pincoin ICO is almost $660 million this amount of money is very huge for all of their core team members. I think they have a lot of money now but the eye of the government and investigators was on them and it will be hard for them to move but up until now there is no result of the finding of the people behind this largest ICO SCAM in the history.
A group of seven Vietnamese nationals are described as the ‘masterminds’ of promoting the alleged scams across Vietnam including Hanoi and Ho Chi Minh, the country’s two biggest cities.
if you want to know more about this you can read through the references below:
https://cointelegraph.com/news/crypto-markets-see-slight-slump-ethereum-fails-to-hold-300-support
https://www.ccn.com/vietnam-investigates-alleged-660-million-ico-fraud-of-pincoin-ifan/
https://themarketmogul.com/pincoin-ico-scam/
If you are a victim of this million dollar ICO scam of the year please let me know your insights toward this.
submitted by Snowangeldevs to citowise [link] [comments]

How to help the Nano ecosystem # 2018.11.25

Rules for the thread:
 

Chapter 1 - Basics

Upgrading the global monetary system: Nano is a deflationary digital currency that has instant transactions and zero fees: https://nanolinks.info
 

Chapter 2 - Infrastructure | Payment Gateways

 

Chapter 3 - Infrastructure | Exchanges

 

Chapter 4 - Infrastructure | POS

 

Chapter 5 - Infrastructure | ATM

 

Chapter 6 - Usability | Hardware Wallets

 

Chapter 7 - Usability | Programming and Design

 

Chapter 9 - Media

 

Chapter 10 - Social Media

Upgrading the global monetary system: $NANO is a deflationary #cryptocurrency that has instant transactions and zero fees: https://nanolinks.info
 
#money #forex #business #startup #finance #investing #trading #markets #economy #blockchain #bitcoin #ethereum #crypto
 

Chapter 11 - Other

 

Now actually choose something and do it!

submitted by laurbyteball to nanocurrency [link] [comments]

Offisium Decentralised Barter Exchange

Offisium Network
Decentralised barter exchange platform
May 24, 2018
Introduction to the Offisium Barter Exchange Project:
Offisium is building the first decentralized barter exchange, a supply system of liquidity, and asset backed blockchain hub. It’s a cryptocurrency developed to replace the traditional “trade dollars” in the barter trade system. An open distributed system of liquidators which upholds barter trade conduct of all members of the network. It uses a mechanism of a protocol token to make a delegated proof-of-stake blockchain dApp to regulate the barter activities amongst participants. The decentralised barter platform hub allows businesses and individuals to trade their goods and services, for other member’s goods and services. Participants can buy and sell their goods or services as part of a global network. The network will help businesses gain access to a huge potential customer base, which is not accessible to typical competitors who do not use the network or hold and Offisium private key. This also works for businesses in guaranteeing to bring new customers allowing them to grow or to use spare or underutilised cash/goods capacity.
It will provide one of the world’s most innovative blockchain business models by making the barter trade process simple to manage. Unlike all other traditional barter exchange platforms, Offisium also allows for decentralised barter of other blockchains and between multiple blockchains directly without a trusted gateway barter currency. This is achieved using EOS smart contracts, protocol tokens to uphold correct market behaviour of matching transactions and invoices, exchange data for use with EOS smart contracts.
Offisium is a London based Blockchain Startup. A decentralised exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.
The modern trade and barter industry includes four major sectors; retail barter exchange platforms (mutual peer-to-peer credit clearing systems), corporate barter systems (who perform larger company barter transactions), counter-trade (usually between sovereign governments and targeted on import & export of commodities), and complementary currency systems (local/community currencies).

Background:

1.Traditional Barter Exchanges (Problem) vs Offisium (Solution)

Offisium is the result of a close study of the current economic affairs. Nowadays we have a fiat money that is used to buy a certain labour (service). If I'm a plumber, I must work a certain amount of time per day and get paid at a rate. For my time, not the value of my work or my labour.
Because people have put a price on the value of what they do. If a doctor is saving lives, the value of his work will surely be bigger than the value of a carpenter who makes tables. So eventually, when we talk about hourly rates, for doctors, plumbers or attorneys, we are not valuing their time, we are valuing their work. And we use the time to derive how valuable their time is.
Offisium tokens value comes from the value of labour. The value of what is produced, whether it is a service, or a product.
This means that fundamentally, the tokens are not only acquired through purchasing them on an exchange, or buying them through an ICO, but also through using them to exchange service value between individuals and businesses. They are acquired by using your time and the value of that time at your work. To pay for another service or good, using your own service or good.
If a doctor needs a tutor to teach his child, instead of paying him with dollars from his bank account (cash). He pays him with his service as a doctor. Provided they are both members of the Offisium Network and both hold Offisium Wallets. The network here serves as a middle man to facilitate the bartering of these goods and services.
The exchange rates between the doctor’s service and the tutor’s service, will vary. A doctor's one hour may be higher in value than a tutor's one hour of work. For this to work, Offisium debits the doctor’s wallet and credits the tutor’s wallet with tokens that they both agreed to, to sell their goods and services for. This is the core concept of a barter system for exchanging value between individuals and businesses.
Offisium is aiming to use interest-free token lines of credits which will allow direct swaps between private key holders. Members may then earn token credits by exchanging goods and services among themselves. Which they can then spend again on the same network. The transactions are recorded in the decentralised ledger which is open to all members. Token credits are issued by the Offisium network members, for their own benefit and therefore considered mutual credits. The only difference this time, the transactions are open and transparent, and decentralised.
The real question however is, how can a barter economy be a better economy?
We first must agree that; “Any economy is a barter economy” One thing is traded for another, each party to the trade valuing what he gets more than what he gives. Always a win-win transaction, regardless of the items involved. But simple barter without a monetary system is like comparing the performance of a roller skate to that of a Ferrari.
And an economy whose marketplace is not entirely free, but whose prices are distorted by forced transactions via government interference, regulation, "protection" etc., is like a Ferrari with a flat tire and misfiring cylinders. Money is simply the most widely acceptable trade commodity in a "division-of-labor" economy. For some 5000 years that has been silver and gold, especially in coin form, which were arrived at because of their physical properties giving them the functional attributes of sound money: uniformity​, ** divisibility*, **durability, and **scarcity (limited quantity) *.
Paper "money" (currency), fulfils well all of these functions except the last. When more "money" can easily be produced without significant cost--as printing press products, or even worse, digits in a computer--those who control its production (and make monopoly laws forcing its acceptance in trade to the exclusion of other media) inevitably fall victim to the all-too-human temptation to produce it to their own advantage and to the disadvantage of everyone further down the distribution line.
The only purpose of legal tender laws is to force people to use something they would otherwise not choose for money if left free to decide. No one must be forced at gunpoint to accept good sound money in trade, at least not until they're brainwashed to the point of believing that paper, not gold, is real money.
Money, like every commodity in the marketplace, has a price. For the money, its price is the inverse of the price of any commodity. This is particularly easy to understand in the international money market where currencies trade against each other. The supply-demand-price curve teaches us that with increasing quantity, the price will decrease at constant demand, or demand will decrease at a constant price.
Flooding the marketplace with intrinsically worthless scraps of paper is not the road to riches. Except for those who do the flooding, spending their zero-cost fun coupons at the price preceding the fall in purchasing power when the market adjusts to the new quantity.
This is why prices continuously increases in a fiat currency system. Only when the market distortions resulting from the easy money misallocation of scarce resources causes the economy to crash so we see actual deflation as cash-strapped borrowers default on loans, banks go belly up, and goods are sold by desperate merchants for whatever they will bring in something a bit closer to a free market.
To sum up, a money-less basic barter economy is incredibly inefficient and paper fiat currency used as a money substitute in the marketplace is either just plain dishonest or rife for abuse by the bankers who control it.
A free market economy based on honest commodity money has proved itself the best system imaginable to date to provide a steadily increasing quality of life for the most people. Therefore, we introduced Offisium as a solution to both problems.
A network of money-less exchange of value, using the most efficient, immutable, transparent and decentralised ledger. The blockchain.
It is possible to argue that a system is not considered barter if there is a unit-of-account. (OFFS Tokens). However, that is an archaic and incomplete definition of the word barter as defined in modern usage. A system of barter implies organised barter, rather than a one-off. Perhaps it is a misnomer for the word to be applied to modern barter networks, but it is generally accepted. Governments totally appreciate organised barter networks.
If the economy is slow and the GDP is down XX% from peak, tax revenues are down XX% from peak too. That is the minimum that can be made up through cashless trading. There is always excess capacity stagnating in the marketplace for a need of national casino chips.
Trade monetises spare capacity and creates taxable commerce. Governments embrace the corporate barter industry, and in some cases even use them. Some key dimensions that determine whether money or barter is better are:
· The separability of money transactions from the enjoyment of the good or service in question, so that financial transactions don't mess up the creation of value.
· The credibility/stability of the money being used.
· The complexity of the economy -- the degree to which workers are specialised and goods are differentiated, making it unlikely that the producer of what you want is a consumer of what you make.
Cash Trade vs Offisium (decentralised barter)Trade:
Sometimes, money transactions surrounding a good or service affect its consumption value.
An easy, yet interesting example of this, is sex: its value to those involved changes drastically if it's paid for. When something has this property, we say that its value to the consumer is not separable from money transactions. For goods like this, the classic arguments suggesting that trade with money yields more efficient outcomes fail, and barter is likely to be better.
Less racy examples include personal letters, a friendly conversation on the phone, birthday parties, etc. These goods and services are more efficiently provided through a mechanism of trading favours and informal mental accounting, and in fact, that's what we see in the world. The more one's “use value” of something is negatively affected by the knowledge that there is an explicit, monetary quid pro quo, the more we would expect it to be bartered rather than bought and sold.
Effective trade with money also requires a stable currency. Whether it is something natural (like gold) that's used as a currency or something printed by a government (like dollar bills), the people involved need to have beliefs that rationalise accepting it in exchange for things of real value, like effort, work, labour, danger etc.
They should believe that they'll be able to buy things of value with it in the future. That, in turn, means they should believe that many others will have similar beliefs.
When there is uncertainty about these things, the uncertainty reduces the value of money and introduces a friction into monetary transactions. The uncertainty can come from not trusting the people who print the money: if I think they'll print a ton of it later and devalue the bills I'm currently getting; a dollar is not very valuable to me.
In the case of gold, it can come from not believing that the people I'll trade with in the future (perhaps different people from the ones I'm trading with today) will regard it as valuable. And the same can be said about Bitcoin.
A functioning currency requires a social setting that is cohesive and stable in certain ways, and when that's absent, barter offers a clearer path to efficient transactions. Of course, money has one main, vast advantage over barter: it overcomes the problem of the double coincidence of wants.
Suppose Ann can do a favour for Bob every day; Bob can do a favour for Charlie every day, and Charlie can do a favour for Ann every day, and nobody can do anything for anyone else.
There is no scope for bilateral barter in this situation. But if a favour costs a dollar, then Ann can buy a favour from Charlie for a dollar; Charlie can use the dollar to buy a favour from Bob, and Bob can use the dollar to buy a favour from Ann. Nobody needs to worry about whether everyone in the cycle is doing their jobs -- they just trade a favour for money in their bilateral relationships. Favour flow around the cycle efficiently with a minimum of explicit coordination.
Note that in this example, nobody values money in itself -- it is just paper: people only value favour. But money is the instrument that enables us to coordinate the flow of favour around the cycle.
Thus, in a complex economy, it is very rare that the person you want to get stuff from wants whatever you produce. (For example, the people who make burritos at Chipotle have little immediate use for the algorithms or economic analyses that some of us produce.)
Indeed, the kinds of cycles that are present in the real economy are very long. This is intensified when people become more specialised in their work, and as goods become more differentiated. Thus, assuming that we don't have the non-separability and currency stability problems outlined above, money beats barter by a long shot for the trade of specialised goods and services among a large number of diverse agents.
This brings us to question the difference between cash payments and a barter exchange of value. The answer is in what we call "Value”.
Nobel Laureate Al Roth published an article titled "Repugnance as a Constraint on Markets"2 where he explored the notion of associating cash Payments with Repugnance.
“One often-noted regularity is that some transactions that are not repugnant as gifts and in-kind exchanges become repugnant when money is added. The historical repugnance to charging interest for loans seems to fall into this class too, as do prohibitions on paying birth mothers of children put up for adoption, and perhaps prostitution.
That is, loans themselves, and adoption, and love are widely regarded as good things when given freely, even when their commercial counterparts are regarded in a negative way.
Similarly, in Massachusetts and California, it is legal to sell human eggs for fertilization but illegal to sell them for research purposes, although it is legal to donate them for research. And widespread outrage in Britain greeted the decision to allow sailors recently released from captivity in Iran to sell their stories to news media: after two sailors had done so, the remaining sailors were no longer allowed to receive money for interviews offering money is often regarded as inappropriate even when not repugnant.
Concerns about the monetization of transactions fall into three principal classes. One concern is objectification: that is, the fear that putting a price on certain things and buying or selling them might move them into a class of impersonal objects to which they should not belong. The sociology literature has shown a longstanding interest in how the introduction of money changes many kinds of social relationships and their meanings.
A second concern is that offering substantial monetary payments might be coercive, in the sense that it might leave some people, particularly the poor, open to exploitation from which they deserve protection.
A third, the concern, sometimes less clearly articulated, is that monetising certain transactions that might not themselves be objectionable may cause society to slide down a slippery slope to genuinely repugnant transactions. Experience suggests that ideas about the inappropriateness of certain kinds of transaction, even when this inappropriateness falls short of outright repugnance, can constrain market design.
  1. Offisium’s Decentralised Barter Exchange:
The barter system itself doesn’t have more specific weaknesses than any other human-driven system. Wherever humans are involved, there is an opportunity for scammers and cheats who are looking to take advantage of the system.
This is true for business and every other interaction between people. You can create official smart contracts and smart transaction receipts for bartering in the same way you do for business deals on the blockchain decentralised ledgers.
It merely involves an alternate form of payment (transaction). One might say that a weakness is how much more creativity and effort is needed, compared to walking into a store and exchanging cash for what you want.
However, we see this as a bonus because it forces you to network more effectively, build stronger relationships, and opens more opportunities for a decentralised transparent and trustworthy future.
Being connected adds that much more value to the barter, over simply paying a cashier and walking away.
  1. How is an Offisium Transaction Invoiced?
The invoice is raised just like any other transaction on the blockchain and is reflected in the open ledger. The outstanding is squared off by making purchases from the same account and booking invoices for the purchases made.
If it is a direct (10M) transaction, it is advisable to make the transaction back to back, so the outstanding does not stand there for too long. In case of buying and selling through an exchange, there are multiple transactions and outstanding is taken care of time to time.
Business owners love bartering because it saves them cash; It moves excess stock or idle inventory and fills up their downtime or spare capacity. Chances are you have conducted a one-to-one barter deal in the past and the outcome was a win-win. However, while these direct barter deals can be effective, they lack flexibility, which limits how often they may occur. The challenge with a direct one-on-one barter is you might want something that one business has but they may not want what you have. By creating a Crypto Currency of traded Offisium tokens, you can barter-trade conveniently with up to millions of Offisium network wallet holders worldwide.
Offisium creates a flexible, secure and fully accountable way for businesses to barter their goods and services with businesses all around the world. This makes it one of the largest B2B, B2C, C2C, C2B and B2C networks with Millions of participants who hold an Offisium Wallet and who will be effectively using barter to Gain new customers, who generate increased sales income. Move excess stock. Free up cash and Increase profits from the introduction of new business. Trading Offisium Tokens for the goods and services you sell and this value is recorded electronically on the blockchain and in your wallet.(Just like you do with a bank account).
You then spend your credit balance (or draw on your interest-free line of token credit) on goods or services from any other Officium Network member. This offers completely flexible trading because the purchase can be from the same business that purchases from you. You spend with anyone locally, nationally and internationally. You can sell now and buy later or buy now and sell later. You can use the interest-free line of token credit as working capital, even before making a sale.
Officium Network brings a solution to the current issues of Cash/Liquidity problems within a certain business. Most businesses if not all of them like to keep cash flow. And most startups fail due to cash flow issues. Being an Offisium member and having a line of interest free token credit, not only will allow you to start your project. But also pay for it back using the value of what you do. You could pay the network back by selling us your products too. This is also an opportunity for blockchain developers who have spare work time who could pay back the network by choosing to work for the network and help it grow in their own spare time.
Offisium transactions are similar to a credit/debit card transaction. There are several Point of Sale tools available to process transactions, including the back-office of our website (which is a bit like online banking), A smartphone app (Offisium app) as well as traditional methods. Offisium’s website provides real-time statements so you can reconcile all transactions. Offisium is a 100% trading system exchange. Every client agrees to buy and sell at 100% full Offisium barter using our tokens. There are practical exceptions to this rule such as property purchases, or £100,000+ capital equipment purchases with a minimum 20% barter component through Offisium.
Offisium will be hosting local, national and eventually international networking functions every month and regional Trade Shows. Our users are encouraged to participate in these functions in order to meet other business owners and promote their own companies. It is a great way to build up your business contact base.
Offisium token is called “OFFS” and is the trading currency that Offisium clients use to transact with each other. Barter transactions on the network are accounted for the same way as your cash transaction, therefore you claim Tax back on purchases, just as you do now. The tokens will be used as utility tokens.
To be continued...Offisium is awaiting the full public disclosure of its Whitepaper and Roadmap.
[[email protected]](mailto:[email protected])
submitted by OffisiumNetwork to u/OffisiumNetwork [link] [comments]

Refutation to savingprivatedash's Proposal to Demote Ryan Taylor

Recently a proposal was submitted to the Dash masternode network requesting the demotion of Ryan Taylor, the CEO of Dash Core Group (DCG). DCG is the core development team hired by the Dash DAO. The proposal’s author, savingprivatedash, provided 7 points to support his argument. I am going to discuss each of these points directly.
This is the link to the proposal - https://www.dashcentral.org/p/demote-ryan-taylor-to-an-advisory-role

(1) “Ryan destroyed the market's confidence in Dash by repeatedly breaking promises and missing deadlines. Dash was once valued at 0.09BTC and it is now 0.02, in spite of millions of dollars available to him. Vault accounts, usernames, friends lists, easy to use mobile wallets, marketplace. None of the 2016 promises were kept. Even Amanda Johnson, once Dash's biggest fan and now nowhere to be seen, said publicly she would give DCG until Dec 31 2018 to deliver on Evolution. Unfortunately, she is in for yet another disappointment, since we are in August 2018 and there isn't even a roadmap yet. If Ryan were to present one during this quarterly call, there is no reason he should be believed.”
(2) “Ryan has grown his company irresponsibly. There are 6,176 DASH available in the budget and DCG has about $500,000 in monthly expenses. Dash is now below $200, and $500,000 / 6176 = $80.95. That means if the DASH price goes below $80, not only there won't be funds for any other community projects, but also not enough to pay the salaries of DCG employees. The threshold for complete chaos is probably around $150-$160, because there are other financial obligations that they need to meet besides salaries. I wonder how much confidence the employees have in Ryan's leadership knowing their salaries are at risk.”
(3) “Ryan had access to more than $30,000,000 USD in funding and didn't create a safety net for DCG. Because of his unforgivable mistake, other important community projects are either already defunded or in serious risk of being defunded. Ryan jeopardized the financial stability of his entire company, and many other community projects, in spite of the ludicrous amounts of money that were available to him.”
(4) “Technology. Big promises were made and we expected reasonable results in reasonable times. Users, merchants, investors and everyone else in the ecosystem had high expectations but didn't see meaningful releases in the past 3 years. We still don't have features promised in Evolution, Private Send still takes way too long (it took me almost 2 days to mix 5 DASH), Dash.org and the Dash Core Wallet are still the same they were 2 years ago, and so on. There are thousands of other cryptocurrencies being actively developed and timing is essential. People cared about logins and passwords in 2016, but won't in 2019-2020 if and when this is released. Perhaps we would do better by breaking Dash Core into individual teams, where each apply for their own funding. Instead of 100 DASH all going to DCG, the Marketing Team applies for 30, Evolution Team for 60 and Business Development for 10.”
(5) “Marketing. Ryan made the mistake of promoting Fernando Gutierrez to CMO (Chief Marketing Officer) back in Jan 17 2018. As a lawyer with no experience, creativity, or talent for marketing, Fernando has an impressive track record of zero results in 8 months. He had at his disposal millions of dollars and still have nothing to show for. The Dash brand is in dire need of professional tender love and care. He is doing the best he can with the limited resources he has (talent, experience, creativity), and it is Ryan's fault for misallocating human resources. The new CEO should move Fernando to a different position and instruct HR to hire a new CMO.”
(6) “Business Development. Ryan made the mistake of hiring Bradley Zastrow on Dec 15 2017. For the past 8 months, the guy has been bullshitting his way with meaningless updates and also zero results. Things like "30 conversations focusing on 9 integrations", and "30+ conversations focusing on 6 integrations" are his way of saying he is working, but not delivering. Imagine a sales person that does not make a single sale. Ever. His list of accomplishments includes things like "Attended Consensus" and "Attended Alt36 conference". If Bradley were a community project he would have been defunded after just two months. He is allowed to underperform and underdeliver without consequences, in spite of the disproportional salary he receives.”
(7) “Ryan is not a leader. Since Evan Duffield left, Dash Core Group has been a stale and boring company that does not innovate! Ryan failed to create a sense of urgency and a culture of results. His company has taken millions of dollars from the budget and still does not have any meaningful achievements on Marketing, Business Development, and most importantly, on Technology. No other entity in the Dash ecosystem consumes so much resources and delivers so little. Even small community projects with modest budgets have far more to show for than DCG's bloated and fully funded departments. We need a dependable, energetic, and passionate CEO. One that would care deeply about our brand, that would be involved in important community projects, that would have a say on important proposals, that would DELIVER and KEEP HIS PROMISES.”
Ultimately, even though presented as concern for the Dash network, this proposal is nothing more than an insidious attempt to create dissent in the Dash community and tarnish the reputation of Dash to those who don’t follow the project closely. It failed. What it showed is not only how open and decentralized the Dash system is where someone can submit a proposal for personnel change and have the network vote on it, but it also showed that by being the least successful proposal in Dash’s history, the Dash community is more united than ever.

**Edited to fix formatting**
submitted by kanuuker to dashpay [link] [comments]

The ultimate mini-dictionary of Crypto environment (Feel free to use/modify)

Hello investers. These last days I have been seeing a bit of confusion in the whole cryptocurrency environment with people asking what "X" meant. Today I come to bring a post in which I will try to add all the possible definitions of some words related to this concept.
 
I want you to be free to use this mini-dictionary to post it where yo want (in another subreddit, in a forum ...) and edit it as you want (adding terms or explaining them better). I would also ask that, please, if you see that I have left a concept or you want to know what another word means, comment it so I can add it. Let's start so:
 
Crypto-dictionary V1.1 (added ERC-20, PoW and PoS)
 
Cryptocurrency: A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. The regular cryptocurrency is called "coin".
 
Blockchain: A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
 
ERC-20: the ERC-20 defines a common list of rules for all Ethereum tokens to follow, meaning that this particular token empowers developers of all types to accurately predict how new tokens will function within the larger Ethereum system. ERC-20 defines six different functions for the benefit of other tokens within the Ethereum system. These are generally basic functionality issues, including how tokens are transferred and how users can access data about a token. ERC-20 also prescribes two different signals that each token takes on and which other tokens are attuned to.
 
Token: Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies.
 
Altcoin: Alternative cryptocurrency coins are also called altcoins or simply “coins”. They’re often used interchangeably. Altcoins simply refers to coins that are an alternative to Bitcoin. The majority of altcoins are a variant (fork) of Bitcoin, built using Bitcoin’s open-sourced, original protocol with changes to its underlying codes, therefore conceiving an entirely new coin with a different set of features. Ethereum and Litecoin are great examples of altcoins.
 
ICO (Initial Coin Offering): An initial coin offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture. An ICO is used by startups to bypass rigorous and regulated capital-raising processes required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, often Bitcoin or Ethereum.
 
Short Term Trader or Exchanger: A Short term trader or a exchanger are people who buy and exchange cryptocurrencies to sell them in a short period of time hoping to obtain a profit. It must be said that, just as you can double, triple ... your investment with this method in less than a day, you can also lose a lot of money, so you have to do this carefully and knowing what you do (reading graphics and know how to anticipate the market). It is a high risk investment.
 
Long Term Trader or HODLer: A Long term trader or HODLer are people who buy and exchange cryptocurrencies to sell them over a very long period of time. Unlike the exchangers that spend most of the day looking at the prices of their cryptocurrencies, these users usually buy the cryptocurrencies and forget about them, in order to consult them again in the future (either after 1 month, 1 year ... ). This style of buying and selling is considered to be somewhat safer than that of the exchanger, although it takes longer to win (or lose) what the exchanger wins (or loses) in a few days.
 
"To the moon", "lambos"...: These are phrases that the community that has acquired cryptocurrencies usually state that the price of that cryptocurrency will rise a lot in a matter of a few days. They are usually creators of HYPE and try to get more people to join their investment with the promise that they will get very far in the near future.
 
FUD: Fear, uncertainty, doubt. FUD is a strategy that tries to scare investors of a cryptocurrency to get a large number of sales of that particular currency and thus achieve lower prices exponentially. Normally this is done in order to get a specific cryptocurrency at a value well below normal.
 
Beggars: Beggars are people who share their wallets to obtain donations. They are similar to leechers.
 
Panic Selling: These people are usually newbies in this world who buy a cryptocurrency in green and see that the value the next day has fallen and they think that they will not recover and the value of that currency will only go down, so they sell in red.
 
PoW (Proof of Work): A proof of work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated. As a sumary, we can say that PoW requires proof that work of some kind occurred. In the case of Bitcoin miners are required to do this work before any of their blocks is accepted by others.
 
PoS (Proof of Stake): A PoS requires users that have a high stake at the currency (i.e. hold a lot of coins) to determine the next block. This has a high risk of some party achieving monopoly of the currency but there are several methods to prevent that (by allocating random stakeholders to agree on a new block, and others).
 
I will continue updating this mini-dictionary. If you have any suggestions leave it in the comments. Thanks, Mr. IMAP
 
(Dictionary image for thumbanil, ignore: https://imgur.com/8bXf7Bf)
submitted by POP3ye_IMAP to Dentacoin [link] [comments]

My idea for a crypto currency - NonFiatCoin

Hey everyone,
I have been working on a blueprint for a crpytocurrency based on Ethereum blockchain. I initially wasn't interested in Ethereum as I wanted it to be based on a Proof-of-Stake model so people can make money rather than using money for electricity and machinery costs. Now since it is moving to Casper, Ethereum seems like the way to go!
Ok, to make it short TLDR - I want this to be a Non-Fiat Coin (Currency), which will have a real value, and not some arbitrary number, so coin holders don't lose money, and the valuation is based on real assets and not on the valuation of the infrastructure of the crypto. Lets face it, people don't want to pay for the road, they just want to pay for the destination.
So i floated this among a few buddies, here is the Q&A:
  1. What is a Fiat Currency? (Trust me, some didn't know that the currency we use is a Fiat Currency :)
Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material from which the money is made. (From Investopedia)

2) Why do we have it?
Well, for a government to manage buying gold and land while maintaining currency liquidity in the market is practically impossible. And as markets mature and as they become more complex to evaluate, a fiat currency is the only logical way for a government to manage its money supply.

3) Does it have shortcomings?
Many. Plenty. As the money isn’t backed by any real assets, it has a definite downside. Rampant inflation is the worst possible outcome for this type of currency.
Zimbabwe is the worst case scenario.
Venezuela is suffering under a massive currency devaluation now.
The Turkish lira fell 40% against the US dollar this year.
The Indian rupee had the worst run against the US Dollar ever this year and the drop off seems to worse every week.
The list will go on, and on, as governments wage economic sanctions against each other.

4) I am not from one of these ‘type’ of countries, why I should I opt for a NonFiatCoin?
Nobody actually thinks they are from this type of a country, until it actually strikes them. Brexit caused a 10 percent decline against the dollar. A 31 year worst.

5) What does this new NFC offer?
Assets behind the cash.
80% will be in hard assets like real estate, more liquid assets like stocks, mutual funds etc.
10% will be in currency purchases of the US Dollar, Pound, Euro and Renminbi.
10% will be for staff, founders, legal and technology investment.

6) What kind of returns can the coin holders expect?
I certainly don’t expect Bitcoin and other crypto type crazy returns. The NFC will be a simple, boring and sturdy value holder.
Now, since we will constantly and consistently be investing in the infrastructure and technology behind the coin, there might be some significant jumps in the value as we keep developing some unique algorithms and payment mechanisms.
But the most important aspect of this will be that your money is secure. It will hold value, your money will not vanish or depreciate. As the asset holdings increase in value, so will your money per coin held.
This is a long term currency asset.

7) What type of asset purchases are expected when the ICOs raise money?
Rental Generating Assets – Commercial and Residential in highly liquid and transparent markets like London, Berlin & Paris.
Land holding
Mutual Funds – such as Vanguard
Stocks, Gold Assets, etc.
As we get more diversified, we will venture into commodities and maybe even buy a coffee plantation!

8) Which countries will you enter?
2 types of countries.
A – Who have no rules or regulations against crypto currency – here we will have crypto exchanges to change the tokens into cash or bank transfers.
B – who allow 100% foreign ownership of companies
If a country allows both, we will have full fledged operations in those countries, no matter how big or small the market.
If a country allows only crypto currency without 100% foreign ownership of companies, here we will provide exchange & banking services but will not purchase assets.
If a country allows only 100% foreign ownership of companies without crypto currency, here we will open a subsidiary asset holding company which will provide asset purchases services to the parent company.
9) What are the other services you will provide as the NFC matures?
A) Loans – we will make the coin holders the bank and they will become bankers in a sense using our platform to disburse the loans at an interest rate they deem is reasonable.
B) Currency Exchange – People from one end of the world can trade their currency with people from another country.
C) Asset Liquidity – If a person with an illiquid asset such as a house or a car would like to raise funds, they can pledge their asset with NFC and get funds from other NFC holders with liquid funds.

10) What is the final outcome you are looking for? One currency for the world? Beat the US dollar?
None of the above. Only to complement the world financial system with a global alternative. One that does not cave under any politicians or country’s whims and fantasies.
Hurting the NFC would mean hurting your own assets as the asset holdings will be truly interconnected.
No single currency since the dawn of time has dominated the globe. Some have made a mark like the US dollar. Some are here to stay. And NFC plans to be both of them.

Sorry if any grammatical errors.
Let me know what you all think?
Is this a good idea?
Will it make people interested?
Any questions??
And if anyone is interested in working on this with me, email me at: [email protected]

submitted by DaPudi to cryptodevs [link] [comments]

The Re-solution of the Block Size Debate

Author’s note: I typically don’t seem to approach problems the way most of us are expected to. In some ways I think this could be useful for various reasons, but unfortunately there are “side effects” as well. Once such side effect is my inability to use language in the standard way. The reader will have to forgive me for this, however, I believe that for this writing, the meaning and purpose will still translate to SOME players. If a few players can understand the content well enough, perhaps those who themselves HAVE a talent in language, might be able to translate the content in their own respective ways.
Introduction
…it cannot be irrelevant whether or not the future quality of a currency is really assured or whether instead that it depends on the shifting sands of political decisions or the possibly arbitrary actions of a bureaucracy of official.~John Nash-Ideal Money
Ever since Satoshi put the 1mb cap on the block-size, the community has been dividing itself further and further, between those that want a dramatic increase in the limit and those that do not. This creates an uncertainly in the future quality of the currency, and I think both sides would admit that this necessarily affects adoption and the price of the bitcoin. The most popular sentiment SEEMS to be that “big-blockers” want to scale bitcoin to have a transaction capacity that would allow it to evolve to be a global currency. However, big-blockers also have the biggest hill to climb, because they must convince Core to bend to their mandate (and then convince the network to adopt such a proposal). Core seems to have no intention in even addressing this issue. Bitcoin is in a state of flux. The purpose of this writing is to put and end this flux.
Re-solution and Rheomodes
If we can see what all of our opinions mean, then we are sharing a common content, even if don’t agree entirely.~David Bohm-On Dialogue
In order to do this I must be allowed to extend our language slightly. Rheomodes are a new mode of words (like verb, noun, pronoun, adjective etc.) created by Dr. David Bohm as an experiment to see if we can derive any value from taking emphasis off the noun and putting it onto the verb (in this instance rheo refers “to flow” or movement like an action word). In regard to bitcoin we might think of the distinction as the difference between “I’ll send you some BITCOIN” or “BITCOIN it to me”. The former treats bitcoin like a noun, and the latter like an action (a payment method).
It might not be immediately obvious what the importance of introducing a rheomodes. And it is indeed a difficult subject to introduce. A rheomode refers to a type of perspective that could either be called “objective” or an “aggregate of all subject perspectives”. An easier way to say this is that a rheomode means ‘to call the groups attention to X’, where X depends on the definition of the rheomode.
For the purpose of this essay the rheomode I wish to levate (call attention to) is “re-solution”. ‘Re’ (followed by a hyphen) in this instance, along with denoting the rheomode also implies “again”. ‘Solution’ in this instance, will not refer to the solution to a problem per se, but rather the mixture of two otherwise divided parts into a whole. The “again” or “re” implies that these separate parts were already a whole, and they were somewhat unnecessarily or unjustly divided (this creates an implication that there is a need or want for the parts to return to the whole, hence the connection to the root word ‘resolution’).
This is the basic aspect of the concept of rheomode I wish to bring to our attention, and the rheomode itself, re-solution, means, essentially, “to bring to the community’s attention the spontaneous combining of two otherwise separate parts, in such a way that a new wholistic perspective arises for the group”.
Now I will give an example of how we might use this rheomode in practice so that we might better understand its purpose and function.
The Re-solution of Gresham’s Law and Tier’s Law
After previously trying to re-solve the block-size debate with Gresham’s law, and the explanation that people will not circulate bitcoin, but rather they will hoard it versus a fiat counterpart, it has been brought to my attention that Gresham’s law isn’t necessarily applicable to bitcoin since there is no legal-tender law in relation to it.
Furthermore, astute players (and usually proponents of big-blocks) point out that the bitcoin phenomenon should work in REVERSE to Gresham’s law-people will circulate bitcoin and drop fiat altogether. This is called Tier’s law and it is said to come into play in the absence of any legal tender laws.
And here is where our example for our rheomode comes in (wiki):
The Nobel prize-winner Robert Mundell believes that Gresham’s Law could be more accurately rendered, taking care of the reverse, if it were expressed as, “Bad money drives out good if they exchange for the same price.”[18]
Now we can use our rheomode in a sentence: Robert Mundell “re-solved” Gerham’s law with Thier’s law which such a statement. That is to say, by taking a higher level perspective, Mundell was able to present a more general perspective that encapsulated both of the laws, and because of the succinct and direct use of language he was able to call this generalized perspective to the attention of the academic community and citizenry of this world. (note: In the language I have been working on, I would call this observation transmutation, which basically refers to “that which changes, and that which doesn’t change. Here the common meaning of transmutation seems appropriate as well.)
In going with Mundell’s insight we can begin to re-solve the future of bitcoin, without breaking Gresham’s or Tier’s law as follows. If bitcoin, left as is, became the new gold standard, people began to hoard it, and the velocity of fiat started to increase, we might view this phenomenon as a similar RESULT to Gresham’s law (even though the initial circumstances are not necessarily the same). If we raised bitcoin’s transaction capacity to facilitate a low fee coffee money, and bitcoin grew to be a world currency fast enough that fiat was effectively dropped altogether, we might view this phenomenon, instead, to be comparable to Tier’s law.
Ideal Money: A COMMON Goal
Each side of the debate seems to share a common interest in that they want to use bitcoin in the most optimal fashion possible. And each side shares a common interest in wanting to bring our global financial system into order. I want to paint two distinct pictures, big-blockers that wish to optimize bitcoin as a currency, and small-blockers, that might be thinking of bitcoin as a new age digital gold, which inspires optimized currency systems to run in and around bitcoin and the block-chain.
Each of us has our own view on what ideal money might be, however we need to take note that a very brilliant man has spent many years meditating and speaking on the subject of Ideal Money. His definition for what would ultimately be Ideal Money comes down to basically, ‘money that doesn’t degrade in value/purchasing power over time’. Now this is a slippery definition, it is not in itself a solution (this is why it is called IDEAL). But it does provide us a basis or a ceiling that we might strive for.
I have always understood this to support the small-blocker agenda, in that as bitcoin becomes a safe haven for inflation, government will be forced to print money of a better and better quality. The eventually “asymptotic” result being the ceiling or “Ideal”.
I think though we can begin to re-solve both sides of the debate by using another perspective or definition in regard to a common goal or an Ideal Money. Here is another quote from Dr. Nash:
…to improve the conditions under which agreements regarding long-term lending and borrowing would be made, a money would be more or less equivalently good if it had a completely steady and constant rate of inflation. Then this inflation rate could be added to all lending an borrowing contracts.~Ideal Money
Now I think then I can see the possibility (like Thier’s law states) that the people could adopt bitcoin perhaps in a relatively short period of time, and drop fiat currency so fast that governments have no realistic time to adjust. Then bitcoin could become a global currency with a very moderate inflation rate for some period of time. This too I think could bring our global financial system into order, as bitcoin could either be continually optimize, or perhaps new currencies in the future could arise to take its place (but not fiat). This path though, does require a higher transaction capacity (ie bigger-blocks).
The Re-solution of the Block Size Debate
Now I believe we have brought about a great insight. I think it can now basically be shown that Ideal Money could be brought about using EITHER path for bitcoin. And this possibility changes the nature of the problem. If we can be allowed to suggest that both sides do in fact have legitimate claims to bringing about order to our financial system, then it is no wonder that sincere players are so passionate and adamant that their agenda pull through!
In fact such a realization can be used to create 4 useful player archetypes I wish use to remember to use: the rational small-blocker, the irrational small-blocker; the rational big-blocker, and the irrational big-blocker. Notice that even if someone calls another player an “irrational X-blocker” there is still an implication from that person that the X side does in fact have rational players. This alone, it seems, could change the nature of the debate.
I think some people will read this writing and be unsatisfied with the claim that I may have re-solved the block-size debate. I wish us to keep in mind the purpose and definition of our rheomode (re-solution), and especially that it means “to bring to the community’s attention the spontaneous combining of two otherwise separate parts, in such a way that a new wholistic perspective arises for the group”. This is what I have done, but what I have not done is the traditional use of the word “resolution”, I have not chosen or proved one side of the debate is correct. Instead, by showing both sides can lead to our shared goal, I believe I have served the stated purpose of this paper, which is to help bring bitcoin out of flux.
Rational players on both sides now have a common goal and reason to come together. And it can be side that if each player cannot admit that there are rational players on both sides of the debate, then that player must be seen as insincere. Now much of the focus can be on finding the optimal PATH to take bitcoin on, rather than focusing on winning the debate, in the name of what each player KNOWS is “correct”. That is to say this paper, if successful, should alleviate pressure on Core, which in turn should bode well for the present day and long term health and circumstances of our beloved currency.
In closing, I would like to say, I have now changed my stance on the block-size debate as a previously devote small-blocker. I am no long afraid of big blocks. I am no longer afraid of X-size blocks, and I hope now the reader no longer is either.
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Why Bitcoin is illegal & Why Criminals use Bitcoin ??

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