• Category Archives Investments
  • Bitcoin News #32 – China oversight, Bitcoin Digital Gold?, Coinbase now likes SegWit, Lightning Alpha

    January 15th from Miami: This was another on location episode from the Miami Hackathon. On this episode I was joined by a few guests starting with Alena of Satoshi Labs, Austin Alexander of Kraken & Doug of Bitstop. Here is the TLDR:
    0:00:03 – Miami Hackathon Recap: Great event, maybe I will enter the actual competition next year. My presentation on opening night should be posted to the web in the near future.
    0:12:00 – China Looking to Regulate Chinese Exchanges: I do not believe in the correlation between the Yuan & Bitcoin so when China did not devalue a lot of traders got caught on the wrong side of the trade. As the market was recovering from this event, the Chinese Regulators came in to investigate exchanges causing panic selling in addition to the fall a few days earlier. The leverage has already gone down but we are still waiting on the official words.
    0:33:00 – Bitcoin Digital Gold?: This discussion had a lot to do with Roger Ver’s recent tweet that Bitcoin should not be used as store of value but as Medium of Exchange. This once again starts a frustrating discussion which we would not be having if SegWit was adopted.
    0:57:00 – Blockchain Without the Bitcoin Hype in 2017:  I think the hype is definitely going to end and it’s probably due to people like me who have been adamant about not calling things a Blockchain when there is no PoW. (This was a long discussion and I come in at the 1:30:00)
    1:50:00 Lightning Alpha: No opinion because we need SegWit so I have no idea how it is going to be tested. The good news is that with Lightning around the corner the statements by Blockchain.info that Lightning would take years are very wrong. But without segwit there can never be any real testing other than TestNet and perhaps Litecoin.
    2:10:00 – Brian Armstrong & Coinbase now like SegWit: This is frustrating because Armstrong has been trying to fork bitcoin for years now.


  • Another Steemit Debate and My AMA on Steem

    Once again I can’t seem to leave this scam alone as it continues to bother me how they sucker in more victims. The first audio file took place on Dec 16th, 2016 in the WhalePool TeamSpeak. I did not plan to have this debate, and in fact I do not want anything to do with the Scammers Dan Larimer and Ned Scott, but they were there so we went at it. The audio is bad as the two of them were sharing a computer and there wasn’t any official moderation even though the WhalePool guys were trying. The medium for this chat was also totally new to me so I had no idea what would happen if one person talks over the other (which is what was happening and i’m probably at fault for a lot of that). Have a listen and you be the judge of how much of a scam Steemit really is. Especially the part where they admit to controlling 55% of the PoS system and ease with which they were able to change economic incentives to use the platform and still have the balls to call it a Blockchain. I have covered Steemit extensively on this blog before. If the Embeded SoundCloud does not play, click here:

    A week following the Debate with Dan & Ned, I was asked to do an AMA on Steemit, I was not going to crate a login so instead Adam Meister joins me for a video version of the AMA where live viewers get to ask me any Steemit Questions they like. I go into the details of why I dislike Dan Larimer so much, how the Steem price has only one direction DOWN and most importantly I compare & contrast Steemit to OneCoin to bring the point home of them being the same thing.


  • Bitcoin News #31 – Bitcoin Rally, Fed Rate Hike, Bitcoin in 2017

    December 19th from NYC: This turned out to be an excellent episode. A lot of the conversation revolved around General Economics as much as Bitcoin. Here is the TLDR:
    1:05 – Bitcoin Rally: We talk bitcoin price and the news that it is once again the best performing asset. The price was around $780 at time of recording and I show charts where I’m expecting a swift rally to all time highs of over $1000. I also talk about how India and Venezuela are not having that much of a direct affect on the price rise but them being in the news and richer countries taking notice is a reason for some of this rise.
    32:20 – Fed Rate Hike: We get into a long economic discussion about the Rate Hike. I do not think it has any affect on Bitcoin and very little affect on the overall economy. The Fed is like a dog chasing its tail. The market has already decided that rates need to be higher hence yields on Gov’t bonds already went up, so the Fed needs to keep up. On the flip side, one of the reasons why the rates whent up is of course due to the expectation that the Fed will raise rates hence we are back to a circular self fulfilling prophecy. I also discuss how the rise in rates should not affect stocks. We also get into the history of the Federal Reserve and I take the side that the original reason for its creation was not as conspiratorial as many think in relation to Jakyl Island. It also had a lot to do with the the 1906 San Fran Earthquake. For more on this topic please see the links in the following post from about a year ago. At the end I talk about why i’m looking for a 2-3x increase in stocks over rest of the decade.
    1:13:15 – Predictions for 2017: I am very optimistic on the price of Bitcoin into August 2017. I would like to see Netfix offer an ala-cart service via Bitcoin. I’m also not looking forward to the ETF and i also talk about why i think ICO’s will start go away and regulators will bring the hammer. I also see Bitcoin dominate the market of crypto and get back to 95% of total MCap.


  • WCN Bitcoin Group #120 – Circle No Bitcoin – Distributed Ledger Tech – ZCrash Continues – VC Hacked

     From NYC on Dec 9th: This was a great episode because I got to speak for an extra long time due to no other guests :). The topics were important. I look back into my early days of blogging with my very first articles about IRS and the mentality of Jeramie Allair which I never liked from day one. Here is the TLDR
    1. Circle Drops Bitcoin: Circle never appreciated bitcoin for what it was so this move should not be a surprise. They are saying they will continue to use Bitcoin on the back end as a settlement system which I think is not going to last for very long.
    2. DLT’s: The Fed has come out with a paper on DLT’s and it looks like they are starting to understand between the Bitcoin Blockchain and a Google Docs Blockchain. I also liked how they clearly consider TheDAO a VC fund while the community was constantly told by TheDAO architects that they are not a VC Fund.
    3. VC Fund Created to Invest in ICO Scams: I still think this might be an April Fools joke and the article got printed a little early.
    4. ZCash: I do not understand the economics of ZCash would ever create a rice in the price. What made bitcoin successful is that by the time the world found out, 50% was already in circulation and fairly distributed without a pre-mine… That kind of organic economic system is just not replicatable.
    5. VC Hacked: The details behind the Augur token hack seem strange to me and the dots are not connecting. It is also hard talking about it because I know Rep tokens are useless and unnecessary.
     


  • WCN Bitcoin Group #119 – Coinbase vs. IRS Round 2, Latin America, SFMuni Hacker

     Dec 2nd from NYC: This was a very good episode where we dive deep into important topics. Here is the TLDR:
    1. Coinbase vs IRS Round II – I continue to say “I told you so” and explain that the outrage towards Coinbase is unwarranted. Between their KYC requirements and the horrendous law IRS put on the books for Bitcoin users in the US it should have been obvious any user is assumed to be Federally guilty of Tax Evasion until they prove themselves innocent. Since the technology is not really there for any random citizen to prove themselves innocent to people that probably do not even understand how bitcoin works, ANY user of Bitcoin user who is also a US Citizen is putting himself at great legal risk. You also get what you pay for. Buying Bitcoin in the street paying a 10% premium for anonymity will greatly reduce this IRS risk vs only paying 1% from the comfort of your own home via Coinbase.
    2. Latin America – There are great reason for why bitcoin is used in Latin America, but talking about it brakes rules #1 & #2 of Fightclub. I’m disappointed & a bit worried about Rodrigo for going public. 
    http://reason.com/archives/2016/11/28/the-secret-dangerous-world-of
    http://reason.com/blog/2016/11/30/rodrigo-souza-bitcoin-venezuela-brazil
    3.  San Fran Muni Transportation System Hacked – We should all be thankful for CryptoLocker in a way, they are educating people on Internet security & why you need bitcoin. They also have a very helpful support staff that will teach you to acquire bitcoins :).
    BONUS: I make a case how mining can be sustainable and decentralized after the new bitcoin creation subsidy ends and most fees are captured by layer 2 protocols like Lightning.


     


  • Freedoms Phoenix Nov 2016 – Bitcoin Scaling and Politics

    This is another great interview with Ernie where I explain the controversy over Bitcoin Scaling, SegWit vs Bitcoin Unlimited. After that we get into the discussion of Politics and how the Trump Win will affect Bitcoin.
    Here is my profile on Freedom’s Phoenix to see all prior appearances

    2016-11-25 Hour 3 Tone Vays from Ernest Hancock on Vimeo.


  • Bitcoin News #29 – Talking with Chris Burniske of Ark-Invest.com

     November 21st from NYC: This was another great show, started off a little slow so I start the video below with the news topics, here is the TLDR.
    1. Goldman Sachs and Santander leaving R3 – This has been another interesting development that some of us (me included) have been saying for about a year. R3 does not know what a #Blockchian is nor what they are doing so banks dropping out come as no surprise.

    2. Coinbase & IRS – Once again i state my case that no one in the US should have ever used their bitcoins in a way that connects them to their name and or address, the IRS is a ruthless entity that ruin peoples lives. They will most likely only go after big traders but technically, every bitcoiner is breaking the law if they mis a penny of capital gains appreciation. There is nothing ‘currency’ like in IRS’s interpretation of Bitcoin
    3. 1 in 4 nodes have upgraded to SegWit – We need SegWit to pass for the future of bitcoin’s future, I find it frustrating this topic is even debatable.
     


  • WCN Bitcoin Group #117 – Coinbase vs. IRS – India Price Surge – Game of Satoshi – Riksbank

     November 18th from NYC: This was a great episode as the list of topics was very important, here is the TLDR.
    1.  Coinbase vs. IRS – I explain why I saw this coming and have advised everyone to not only stay away from Coinbase but also never to use Bitcoin in connection with their real name and/address for any reason. This applies mostly for US Citizens and to slightly lesser extent EU and AU.
    2. India Price Surge – India decided to do some thing stupid with their paper currency, they are not totally canceling their two largest bills (like the talk in the US and EU) but they are taking them out of circulation and replacing them with a new form of the bill. This make no sense at all but yes it is slightly positive for Bitcoin
    3. Game of Satoshi – Gavin is all over the place, people need to stop listening to him (me included)
    4. Bitcoin Mining is Unsustainable – No it is not
    5. Riksbank – We finally have a bank that understands the importance of a Bear Asset, but will Sweden create a token like that or will they ignore the global need for this like everyone else.