• Interview with MadBitcoins about CoinTelegraph

    This was my first time on the WorldCryptoNetwork for an Interview with Thomas Hunt (aka MadBitcoins). In the interview we discuss CoinTelegraph along with it’s origins and current atmosphere. I also attempt to doge the question who actually owns CoinTelegraph.

    In addition we talked a little about the future direction of Bitcoin Price, the Japanese Ruling of calling Bitcoin an asset one cannot own, and the consequences of people ‘Hoarding’ their Bitcoins.

    Hope you enjoy, I had a great time:


  • Will Escorts Take Bitcoin Adoption to the Next Level?

    Over the last few weeks there has been a significant development in the next driver of Bitcoin adoption. Most readers should clearly recall how it was Wikileaks donations that become of the first practical use for bitcoins in people’s digital wallets. The use case was small as not a lot of people were going to run out and get bitcoins just so they could contribute to the movement of putting Government secrets to light. The next significant use case was the drug market and Silk Road. This time people had a choice, and the more sophisticated dealers, who were willing to learn new technology, took to bitcoin and began posting their products on the site. On the user side there was also a voluntary learning curve for those that wanted to purchase these products from the comfort of their home, needed to go out and learn the new technology.

    Today we come to another one of these user transitions due to the consequences surrounding the popular ad site backpage.com. More specifically what we are talking about is the adult ‘escort’ section that has landed the site in a bit of controversy and it could not work more into Bitcoin’s favor. It all started when a sheriff of Cook County petitioned the credit card industry to cut of funding sources of users posting ads. The Credit Card companies complied and the ad website allowed some time for people to post for free, but then a week later announced that all ads must be paid with bitcoins. So unlike the prior two use cases mentioned, this time there is a portion of the population that is now forced to learn Bitcoin if they are to maintain their form of free-lance employment and financial survival.

    As a Free-Market economist looking to understand the consequences of this situation, we first need to see if similar events have occurred in history. The Economic Historian Martin Armstrong provides such an example back in Ancient Rome, when a Roman Emperor decided to outlaw Roman coins to be used for these types of services. What came out of it was that brothels took it upon themselves to create coins for this specific purpose.

    RomanEscortCoin

    These establishments were very commonplace back in those times, but with every new ruler, laws change, but human nature remains the same. These tokens were starting to become a real currency as they were actually backed by something tangible besides a military and expected tax revenue. In fact they were found as far away as Britain. 2000 years later, our leaders are still trying to fight human nature and Free-Markets and it’s not surprising that Bitcoin will be taking the place of the “Roman Prostitute Token” seen above.

    To be honest, I do not know how the site works or what exactly people are paying for as it’s advertised as a Free Ad site and looks identical to Craigslist which I personally have used long ago and don’t recall paying a fee. Here is what I do know however, from speaking to Local Bitcoin dealers and running into the topic on web. Demand for bitcoins, from young female’s providing adult services especially, is starting to increase exponentially. From reddit posts to how much demand is coming in, to blog posts by those in the profession providing guidance on the subject, to bitcoin dealers advertising directly in these adult sections, it’s undeniable that demand has already started to pick up.

    Many will question the morality of the situation, but what people need to understand is that human nature will always prevail. The world’s oldest profession does not care what laws politicians enact or how far law enforcers go to make sure those laws are held. In fact, the more unjust the law, the more it needs to be enforced because human nature and free markets will ways find a way to accomplish the acts in question. Another major aspect in the current situation is that contrary to what the media will have you believe, there is a significant reduction in 1st world crime. Also thanks to the Internet a lot of the escorts are simply independent contractors or voluntarily work for a service that will advertise for them, so the days of the abusive pimps are long gone and are pretty much mostly found on TV.

    So what is the expected chain of events going forward? The one thing I know for sure after being involved with Bitcoin the last two years is that once a person gets familiar with the technology there is absolutely no going back. The only hard part is the initial 24hr learning curve and you start to realize what a horror show the current ‘complicated’ banking system really is. It should not take long before every escort that needs to pay for her ads with bitcoins starts to prefer bitcoins as a payment method. There would be numerous advantages to both parties involve in the transaction because it can all be done without handing the payment on the spot. At least one escort service is already ahead of the game and has been accepting bitcoins as payment for over 6 months. Perhaps one day we will truly reach full circle and this will be the first service actually denominated in bitcoins as oppose to fiat paid in bitcoins. A true Unit of Account, just like the Roman Coin created out of necessity 2000 years ago.

    Addendum

    At the time of writing the above it was not easy to find Escorts who were accepting Bitcoin for services rendered. Today it is much easier and there was even a Reddit post about 5 months after this post waspublished:
    https://www.reddit.com/r/Bitcoin/comments/3ml2yf/want_to_see_bitcoin_working_do_a_google_search/

    The last ad from the “independent contractor” in Miami is really interesting because the services appear to be denominated in bitcoin and there is a bitcoin fee to initiate the discussion. The latter part is probably not a good idea because it limits her pool of clients from the start and the additional restriction of having to email her without providing an address, requires the client to have an account with the website. This reduce the client pool even further.