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Will Bitcoin Be Treated Like Online Piracy?

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Originally appeared at Bitcoinomics.Net

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Banks are aware of Bitcoin. One CEO doesn’t think it is long for this world.

Bitcoin developers “are going to try and eat our lunch,” Jamie Dimon, chairman and CEO of JPMorgan Chase said last week. “And that’s fine. That’s called competition, and we’ll be competing.”

Dimon sees the point in Bitcoin.  But there are some problems he sees on the horizon. (more…)

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Does The Dictionary Foretell Our Monetary Future?

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Originally appeared at GoldSilverBitcoin

Google is known as a massive technology company. Best known for its Search, Adwords, Adsense, Analytics, Google Books, Google News, YouTube, Google Voice, Google Maps and other products and services, something Google is not known for is financial advice, but that might be changing. (more…)

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This Economic Theory Might Spell The End Of Bitcoin

Ohhh yeah, bitcoin heading East along with all our gold.

[Article By Bitcoinomics.Net Chief Editor, Justin O'Connell]

Originally appeared at Bitcoinomics

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The future of bitcoin trading is in question. Local authorities have had diverse reactions to average people trading bitcoins, from setting up sting operations to outlining lengthy regulatory frameworks. A main question that might be decided over the coming months is whether or not everybody who has sold bitcoins on Local Bitcoins could find themselves in violation of state laws.

All of this could have been predicted by you though, if you knew about one simple economic theory.

(more…)

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Banking on bitcoin?

This is Channel 4 News’s recent coverage of bitcoin (11/09/2014). Apparently, the Bank of England are getting behind the crypto-currency now. What is the agenda?

Click here to view the video.

“It’s no longer possible to dismiss bitcoin as a wet dream for techies or anarchists when one of the world’s leading central banks has decided to take it seriously.

Having monitored developments in the world of bitcoin for a year, the Bank of England has now delivered its verdict on a currency that was only created five years ago.

When I spoke exclusively to the Bank’s Chief Cashier, Victoria Cleland, she was keen to say the Bank doesn’t want to dismiss bitcoin. It is watching how it develops and wants to be seen to be taking it seriously.

Perhaps she has a vested interest in keeping an eye on this rival currency. As Chief Cashier, her signature will start appearing on every new bank note from next Spring – a flourish that won’t be required if we all switch to digital.

But I wonder if the Bank is still not taking bitcoin seriously enough.

Rapid growth

It’s keen to emphasise just how small demand for the currency is right now. It calculates there are perhaps just 300 bitcoin transactions in the UK every day and only 20,000 people who have a digital wallet.

Victoria Cleland told me: “At the moment, there isn’t much evidence of the general person in the street really wanting to move to bitcoin”.

Then again, things on the internet have a habit of starting small and getting very big very fast.

Nicolas Cary of the BlockChain website points to the experience of PayPal, saying they “went from doing zero … transactions to doing a couple of million to doing 10 million to doing 100 million. Bitcoin now does 200-300 million dollars-worth of transactions a day, and the speed at which it got to that point is an order of magnitude faster than PayPal.”

He believes bitcoin could match VISA and Mastercard in size – possibly within just a few years.

But even if the Bank is right about bitcoin’s limited appeal in the UK, I suspect there are two other groups that might drive its usage – two groups at the opposite ends of the economic spectrum.

Billionaire banking

One is the super-rich. Many of them are exactly the sort of techie geeks who love the idea of bitcoin – including some who have made millions through investing in bitcoin itself. One such billionaire told me he’d consider holding 10 per cent of his wealth in bitcoin in future.

If that commitment gets repeated by other wealthy entrepreneurs, then bitcoin will become an important part of the financial infrastructure, and fast. It’s not the volume of bitcoin transactions that will matter but their total worth.

Alongside the super-rich will be the super poor.

Financially excluded

Billions of people on the planet have no access to bank accounts and, frankly, the banking system has shown no interest in them.

Already, mobile phone technology has moved in to fill the gap – by creating a whole new payment system that allows people to move money by text. The M-Pesa system in Kenya is the most developed example. In that country, 12 million people use a text message system developed by Vodafone to make transfers – that’s more than a quarter of the population.

Here in the UK, bitcoin allows anyone with a smartphone to effectively operate their own bank account, moving money for almost nothing.

You might not have a bank branch in a hundred miles, you might not trust the banks anyway, and you might not trust your nation’s currency either. Bitcoin will allow you to circumvent them.

As the Bank says, one of the main attractions of the currency is that it “minimises the degree of trust participants need to place in any third party”. It also, cuts down on commission fees charged to people trying to send money home.

So is bitcoin the future?

The internet is littered with next big things that disappeared back into the ether. Think MySpace or Friends Reunited. But the idea doesn’t tend to die, it evolves. With even the Bank calling bitcoin “the internet of finance”, it seems this idea may be here to stay.”

http://www.channel4.com/news/bitcoin-bank-of-england-super-rich-excluded-poor-internet-currency

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The Payments Problem Apple Pay Doesn’t Solve

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[The Following Post By Bitcoinomics Chief Editor, Justin O'Connell]

Originally appeared at Bitcoinomics

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Apple announced its payment product, Apple Pay, this week, and it was immediately touted by JP Morgan Chase’s Chief Financial Officer Marianne Lake as the future of payments. But is it all its made out to be by Apple executives and their partners on the project? Lots of questions remain, such as the fact Apple Pay will only be available in the United States at first. Once it is made available beyond US borders, the question remains – will it be adopted as a payment method in places where Apple penetration is lackluster? (more…)

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California Mayoral Candidate Wants To Free Bitcoiners Of The Income Tax

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[Article By Bitcoinomics.Net Chief Editor, Justin O'Connell]

Originally appeared at Bitcoinomics

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Another US political candidate is advocating the use of Bitcoin. Instead of just accepting the crypto-currency for donations, this candidate has taken it one step further.

Alex Fidel is running for mayor in the city of Encinitas, California, a suburb of San Diego famous for its surf culture and the YMCA skate park.

He’s looking to put Encinitas on the map for another reason than sunny climes, beautiful people, beach-town vibes, and so on. He wants the Southern California coastal town to be a Bitcoin safehaven from what he terms the “conjoined twins of the Federal Reserve and the IRS.”

(Listen to the clip at The Our Very Own Special Show Podcast) (more…)

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Brand Logos No More

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[Bitcoinomics.Net Chief Editor, Justin O'Connell]

Originally appeared at Bitcoinomics

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A brand logo used to be a status symbol, as was the case for Abercrombie & Fitch (A&F), which had a logo associated over the past decade-plus with cool kids (or…not cool kids?) among American teenagers and college kids. But coming this spring, that logo will exist no longer in the US.

“In the spring season, we’re looking to take the North American logo business to practically nothing, but protect logo in international stores,” Abercrombie Chief Executive Officer Mike Jeffries said. “The logo business is larger in Hollister, and that becomes a little more difficult to overcome than it has in A&F, although we’re overcoming that in both brands.” (more…)

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The Man Who Allegedly Freed The World

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Originally appeared at Bitcoinomics

Scientists suggest humans used drugs even in prehistory, having discovered over-and-over evidence linking Stone Age man to herbal mixtures for “visions and journeys”. Researchers have even discovered equipment used to prepare hallucinogenic drugs for sniffing, dating them back to prehistoric South American tribes. Ceramic bowls and bone tubes for inhaling fumes or powders appear to have originated in South America between 100BC and 400BC.

Bone tubes are common in pre-contact South America, and are associated with ritual shamanism. Archeologists have suggested that humans were extracting mind-expanding drugs from mescal beans and peyote cacti as far back as 5,000 years ago. Here are some quick examples of the most convincing evidence for the use of mind-altering substances in human prehistory. (more…)

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Is Bitcoin Making People Want To Kill Themselves?

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Originally appeared at Bitcoinomics.Net

In the bitcoin community, discussion generally revolves around the success of the technology over the past five years. Rarely does it venture forth into a darker area of conversation: the psychological toll participating in a world disrupting, extreme growth industry. In fact, bitcoin is much more than an extreme growth industry. It is perhaps the first example of a decentralized autonomous corporation, or peer-to-peer corporation. In this view, all of the participants in bitcoin are working towards preserving, growing and marketing the 24/7, global project. They are, in a way, contractors for the technology. This seems pretty exciting. But, there is a darker side. Like any job, helping to develop bitcoin and the bitcoin ecosystem can trigger stress and all its associated detriments. (more…)

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Did The NSA Design Bitcoin? A Look At What’s Known

FILE PHOTO  NSA Compiles Massive Database Of Private Phone Calls

Originally appeared @ Bitcoinomics

A common hypothesis submitted by members of the bitcoin community argues that the National Security Agency (NSA), or some other government alphabet agency, invented bitcoin. Many bitcoiners laugh this suggestion off as “impossible,” but, on the contrary, there is precedent for such an assertion. But, that doesn’t make it true…

It’s not as if the government or its agencies have never invented technology. In particular, the US defense industries, dubbed by Dwight D. Eisenhower as the “military-industrial complex.” Government research – generally conducted by the military or intelligence complexes and academia – has resulted in some of the most compelling technologies of our age, including the internet. The Tor project (the anonymous online network) was created by DARPA (Defense Advanced Research Projects Agency) and currently receives 80% of their funding from the US Government. (more…)

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The New World Order: An Open-Source Civilization Of 3D-Printed Medicines & Crowdsourced Taxation

Originally appeared @ The Dollar Vigilante

Depending on who you talk to, the phrase “New World Order” means different things. To plenipotentaries and politicians, the “New World Order” might refer to “global governance,” a form of cooperation among nation-states in which laws and policies are standardized. For another group of individuals, mostly independent and some academic researchers, “New World Order” refers to a post-Bretton Woods world order in which global institutions – like the United Nations, International Monetary Fund, World Bank and their associated think thanks – take authoritorian precedence over nation-states, creating effectively a “global government” defined mostly by its unity in economics and politics; including money, leaders, laws, etc..

(more…)

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[KR639] Keiser Report: Rid the Bankster Parasite!

We discuss peer to peer and decentralised systems, an idea whose time has come, thus, making them stronger than all the armies in the world. In the second half, Max interviews Nick Lambert and David Irvine of MaidSafe about their new company and currency, SafeCoin.

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