Major Turkish project accepting Bitcoin for property sale ...

What is money?

Hey all, this might be a bit outside of the "Bitcoin" realm, but I wanted to create a sounding board to help me grasp what money is, how it relates to economies, and where Bitcoin can come in. I'm just writing out my thoughts, and I'm open to comments and opinions or corrections :). Hopefully this can be helpful to others too.
Note, that I live in the UK and I feel like a lot of information talks about the dollar, and I never know if it applies the same to my currency. I will give examples in dollars, but they should apply to any world currency (eg. GBP) to the best of my understanding.
I saw a link recently on this subreddit to this site: https://modernmoneybasics.com/. If I were to summarise what I learnt, it is a mental model that frames fiat currency in an interesting way, but I wouldn't be surprised if it did contain some misinformation. -- It claims that the model applies to any fiat currency.
OK. Pretend that all of a countries money = 1. If you own $100, you own a fraction of the countries money, so if there is $10,000 in the world you own 0.001 of all dollars. So naturally, if more money is printed, you start to own a smaller fraction of that money.
The Modern Money Theory (MMT) gives me the impression that money is basically a tool owned by the countries government (owned by someone who isn't the general public). Money is not an asset, it is a liability (hence why it loses value over time). People pay taxes and the Government will try to redistribute the wealth by investing in projects like The Army, Green Energy, etc.
This is supposed to be distributed in ways that help the country's economy, ensuring that the country is productive and is exporting things to other countries. When deemed necessary, more money can be printed to help redistribute wealth to the areas that the Government wants to invest in. I think that the more successful your economy, the more your money is worth.
This means one thing to me; PEOPLE DO NOT OWN/HAVE MONEY. Don't save fiat; it is a tool to help the economy, not a thing of value that you should store. I feel like saving actually keeps money from circulating in the economy and probably works towards needing to print money. Instead, buy assets; you put money back into the economy, and you get to hold onto your wealth. What can you invest in? Ok, that's not such an easy question to answer. Maybe buy gold (or *ahem* Bitcoin), or invest in yourself to make something valuable and ultimately start your own business.
MMT says that fiat has value because people pay taxes in fiat. Ultimately, we work, and earn in order to pay taxes (income, VAT, road tax, etc.). We spend in fiat, because the person accepting fiat will need to pay taxes and the next person will do the same, so now the whole country values your fiat currency.
Because of this, you need liquidity, you need to have some money to spend on groceries and living, and you need some money for a rainy day lest you end up in an emergency situation with not enough time to handle it with money. -- I think the more something costs, the more time you typically will have to pay it, so there might even be a formula you could create or use that helps you decide what to keep as cash, and what to spend.
So long story short, money is a token that represents a tiny fraction of your countries economy. It is also something that the government can manipulate and move around as it pleases in the same way a business invests in departments for its company. We are all just a cog in the machine that is our country's economy.
One thing I have not talked about, is the role of banks and credit and interest. I haven't expanded my thoughts in that area yet, but I feel like that they serve a different purpose.
Where does Bitcoin fit in? Well, just like gold, it is a potential asset. It has an interesting property though; it has liquidity. This give it the potential to be used for local trades, meaning that people can save their wealth and use it for local transactions too. It is global, so it also has the ability to be used for global transactions too. For now, it is an asset for saving your wealth; I think that as more people use it and favour it as a storage mechanism, more people will start to accept it for small trades too. Hey, maybe if there's a tool to easily calculate taxes from Bitcoin trades, that could help with adoption.
What would happen to fiat currency if everyone collected fiat for the sake of paying taxes, but used conversion tools to allow them to keep the majority of their wealth in Bitcoin while knowing the appropriate taxes to pay? Honestly, I fall short here, because at that point, you can no longer measure a country's economy by its currency. This is where I need to maybe learn how countries that do not have their own currency measure their economy.
I suppose governments, or ourselves, will have to invent new ways to measure and manage our economies, and I imagine i will be a much more transparent. I think it is an important question to answer as Bitcoin would shift wealth from being country wealth, to individual wealth (for everyone, not just those with enough income and education to invest in assets).
submitted by tookthisusersoucant to Bitcoin [link] [comments]

38/m/single, crossed $2 million today

https://i.imgur.com/fgRQHpY.jpg
I apologize for my shameless bragging, I'm just really relieved and happy about this and not a soul alive knows about my net worth so I can't exactly go out and talk about it IRL.
Some background. I've worked since my early 20s, have made anywhere from $70,000 to $130,000 a year since, amount varies from year to year. I'd say about half my net worth is from my saved salary, the other half is purely investment gains from stock I invested the saved salary in. I live a pretty frugal and minimalist life, I drive a used car and live in the same starter home I've lived in for a decade. Material things don't really interest me, but I will spend money on cool experiences.
My original (naive) plan when I got out of college was to FIRE when I hit one million. I reached that 2-3 years ago and realized quickly one million doesn't go as far as I thought anymore. I still don't feel $2 million is enough. I don't love my job but the stress is manageable, so I'd like to stay until 40 and then leave. We shall see.
In terms of what investments I have, it's largely US large cap banks and tech companies. No early day bitcoin, no Google IPO, just good old fundamental analysis, value investing and buy-and-hold. I haven't bought any new stock for several, several years, I did almost all of my buying from 2009 to 2012 as we were stumbling out of the Great Recession. I thought we were in overbought territory in 2013-2015, so the stock market's rise since proves that I don't know what I'm doing and market timing is for suckers, heh.
[edit] I have gotten a couple of questions about my house and about my dating situation and what I spend money on. My house is cheap, I live in the south. Land is cheap here, even in the major cities. It was valued at around $125,000 before the subprime meltdown. It went into foreclosure then like half of the homes in my neighborhood. My lender obviously could not offload it in foreclosure, so it sat on the property for almost a year. No buyers surfaced because no one could get a mortgage loan. I scraped together about $80,000 in cash and put in an offer that was accepted. I was motivated by the $8,000 Obama housing stimulus credit, so my final bill came in at $72,000. The home is currently appraised at over $140,000. I need to update it on my Mint profile.
My dating situation. I'm probably never getting married or having kids. It's a personal decision, I'm too selfish and value my freedom too much to ever do either. Being a millionaire is a rather recent occurrence for me and I haven't told anyone, so I haven't and don't ever plan on flaunting money to get a lady to like me. It seems really sad and desperate to me when older guys do that and I don't want to be that guy. Just being myself, being kind and listening has worked in getting ladies to like me, amazingly enough. I feel exceptionally lucky that I didn't get married early and am divorced and miserable now. Like so many other guys my age that I know.
I caught the travel bug about two years ago. I travel once every 2-3 months. It is expensive but it's worth it, plus airfares out of my primary airport have dropped like a rock thanks to growing competition, cheap fuel and new fuel efficient planes like the 787 and A350. Round trip airfare to Europe or Asia is as low as $400 bucks during a sale. Round trip airfare domestically to either coast is $90 to 110 bucks during a sale on non-budget airlines. Have traveled to the UK, France, Thailand, NYC, LA and Chicago so far this year. It's been wonderful.
submitted by ihasanemail to financialindependence [link] [comments]

Weekly news review (November 16-22)

Weekly news review (November 16-22)
Hello, everyone! Happy Monday! Let's dive into last week's news highlights ;)
https://preview.redd.it/9aogvhaket041.png?width=1200&format=png&auto=webp&s=1d4bc9b6c06f1864aaa9aa50deb1c251f0d629f4
Earlier on Thursday, the National Assembly's Amendment Subcommittee on Parliamentary Affairs passed a legal amendment to the still-in-development Special Financial Transactions Information Act to force virtual asset exchanges to register with the Financial Services Commission (FSC). Those failing to do so would face up to five years in prison or a fine of up to 50 million won ($42,460).
Under the amendment, aimed to align the industry with international anti-money laundering guidance from FATF, crypto exchanges must also have so-called real name virtual bank accounts – sub accounts for users within an exchange's primary account – to avoid falling foul of the legislation.
Opposition lawmakers had expressed concerns that that exchanges without real-name virtual accounts would be forced to close, bringing further contraction of the domestic cryptocurrency industry.

Someone hacked the official website of the Monero cryptocurrency project and quietly replaced legitimate Linux and Windows binaries available for download with malicious versions designed to steal funds from users' wallets. The latest supply-chain cyberattack was revealed on Monday after a Monero user spotted that the cryptographic hash for binaries he downloaded from the official site didn't match the hashes listed on it.
At this moment, it's unclear how attackers managed to compromise the Monero website and how many users have been affected and lost their digital funds.

Having dropped to one-month lows below $8,000, bitcoin is now eyeing the first test of a key average support, now at $7,714, since April.
The top cryptocurrency by market value fell more than 2.4 percent in the 60 minutes to 08:00 UTC on Thursday to hit a low of $7,875 – a level last seen on Oct. 25, according to Bitstamp data. The drop marked a downside break of a 48-hour narrowing price range seen above $8,000.
Notably, with a slide to levels below $7,900, bitcoin has erased 80 percent of the rally from $7,293 to $10,350 seen in the second half of October.
On a month-to-date basis, the cryptocurrency is now reporting a loss of over 13 percent. Further, the cryptocurrency is trading in the red for the fourth straight week.
The dismal performance contradicts the positive seasonality factor: bitcoin has put on a good show in November in six out of the last eight years. Notably, prices gained for six straight years in November, starting from 2012 to 2017, before falling hard in November 2018.

The United Kingdom Jurisdiction Taskforce of the Lawtech Delivery Panel published a statement concerning the status of cryptocurrencies, distributed ledger technology (DLT) and smart contracts under English and Welsh private law.
U.K. entrepreneur network Tech Nation announced the paper’s publication on Nov. 18. The document attempts to address the legal uncertainties of cryptocurrency and recognizes crypto assets as tradeable property and smart contracts as enforceable agreements under local law.
Lawtech Delivery Panel director Jenifer Swallow noted that the worldwide smart contract market is expected to reach $300 million by 2023 while the World Economic Forum predicts that one-tenth of the global GDP will be stored on a blockchain by 2027. Due to this, she thinks adapting regulations on these new technologies is particularly important.

Institutional investors are aware of the risks that come with allocating a large percentage of their funds to a particular asset or market indices. For one, the downturn of such a market or asset would have a crippling effect on their returns. The same is true for investors that allocate the majority of their portfolio to asset classes that have strong correlations to one another. Hence, adopting a strategy that allows the allocation of funds to different asset classes, with little or no correlation, is the appropriate solution. This is where Bitcoin excels.
While other markets had moderate correlations to one or two traditional asset classes, Bitcoin maintained a very weak correlation to all of the asset classes examined. In other words, Bitcoin could fit nicely into an investment portfolio and boost returns.
VanEck’s study went further to prove Bitcoin’s eligibility as an investment option. This investigation entailed the assessment of the asymmetric return of portfolios allocated to varying percentages of equities, bonds and Bitcoin from January 2012 to July 2019. A portfolio with 58.5% of the fund distributed to equities, 38.5% to bonds and 0.5% to Bitcoin generated returns that surpassed that of a portfolio allocated solely to the S&P 500 by over 150% as of July 2019.

Have anything to say? Do so in the comments section down below!
submitted by rokkex to Rokkex [link] [comments]

DIFFERENCE BETWEEN FIAT AND CRYPTO

• Fiat Currency is backed by Governments/Countries itself. What determines the value of a currency is the economic health, demand, growth, political stability to name a few, of the respective country. Before 1930, most fiat currencies were backed by gold and silver.
• Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government - quoted in google.com.
• What backs crypto value is purely supply and demand. The demand creation of a crypto is its sole objective. To create demand, the crypto has to have a purpose. And most purpose commonly promoted is utility. The number of ways you can utilize the said crypto. The more utilization factors the more demand there is for it.
• There are other ways to substantiate value of a crypto and that is to back the crypto with a 1 to 1 ratio in assets or in USD. Then the question is, how 3,000 crypto currencies in circulation be monetary eco sustainable? Can anyone imagine walking into McDonald and view a chart of 3,000 different pricing? Which also means the crypto is a payment gateway pegging against USD instead of bearing any true characteristic of a currency.
• A country’s currency is in its own legit form of legal tender, the only currency acceptable under financial sovereigns of a country. People in the world must be made to understand that. Retailers in Thailand cannot put up products price tags in EUROS/USD, it is illegal. It has to be in Thai Baht.
• It is hardly imaginable for everyone in the world to retail with a Crypto-Currencies at a rate of 7 transactions per second. When mining nodes are reduced due to non-performing mining ratio, mining blocks in the Blockchain will significantly be limited too, rendering delays in transactions while usage increases.
• In time to come, as trends of crypto picks up, Thailand can issue BAHT COIN or UK the STERLING COIN, exactly what China wishes to do. Digital RMB, but would such crypto currencies be fully decentralized? We all have our answers. Absurd to even think of producing Thai Baht, Pound Sterling or Chinese Yuan at the cost of electricity. It is currencies in digital forms.
KRATSCOIN is not meant for that purpose. In some opinion, apart from utilization, a crypto can be for safekeeping, an entity for keeping money while allowing easy liquidation, at a click of a mobile button, not to mention sending or transferring without the trouble of going to banks, which was the original purpose of Bitcoin to begin with. Therefore, KRATSCOIN would be better termed as Crypto Commodity, sharing similarities as Metal Commodities.
An individual cannot use gold to make a purchase, neither can one eat gold. It can only be kept or invest in for appreciative value over time. Gold is being exampled for its scarcity which reasons for its higher value over its cousin, silver or bronze. Who or what determines the value of gold? Just like any other crypto, demand by humanity. As in all other commodities, it must also be placed in checks by governments. To put in checks, serial numbers are introduced to protect a country’s commodities outflows or illegal exports.
Humanity made Bitcoin a reality. Acceptance by the majority members of the public made Bitcoin to what is it today with the trust they entrusted it with, or is the majority public hopping on the band wagon to make a few quick extra bucks? Whatever the reasons are, the characteristics of Crypto Currencies are only matched by the behavior of Commodities.
SERIALIZED COINS - WHAT IT MEANS FOR THE PUBLIC: Every currency has its own remarkable name, design and colors. Dollars, Euros, Pound, Tugrik, Peso, Rupee, Rupiah, Dina, Ringgit, Baht and the list carries on. One thing every currency have in common - Serial Numbers.
In any crime, investigators will firstly establish motives and mode of operation, both of which are very likely related to money. So following the money trial is a natural thing to do for investigators/authorities and it has become a common practice. Crimes require funding ie robbers need money to buy guns to carry out its robbing activities. Cutting off financing will reduce criminal activities. That’s the approach governments of the WORLD have adopted for crime fighting.
Perhaps people do not realize this while most do not feel the pinch. Humanity tends to take life for granted until apocalypse happens. Take a minute to visualize the tallest tower in your homeland collapse into a pile of dust with thousands of casualties effecting everything else that comes to mind. Imagine a family member, just 1 is enough, is among those casualties.
• Imagine if monetary system is not in place and drug dealers, among many, roam the earth freely distributing what can be death threatening substance to your kids. What if you are mugged of your inheritance [items left to you by your father] that is beyond retrieval? As for crypto enthusiast, what if your wallet gets hacked as even the mighty Pentagon gets hacked. All the above can go away if the crypto system leaves a trail for hound dogs to sniff out. Money Trail or Serial Codes Trail to be exact.
• Citizens rely on governments and their countries to do what is best for them to lead their daily lives, flourish, advance, improve and strive but at the same time, citizens want to take away the single most important thing deemed crucial in the hierarchy of humanity from governments with additional boastful remarks such as “I transferred $400 million from one corner of the earth to another corner in a single transaction and no governments can do anything about it”.
• In-short, to boast unregulated financial movement is to arrogantly promote crime without realizing it while challenging the world’s monetary authority. Oldest advice in the book teaches us never to pick a fight we can’t win.
• Serial Coded Coins does not take away the financial movement freedom nor does it take away your privacy. It merely provides Authorities the necessary means needed for crime prevention and fighting. It only re-inforce security and safety. SERIALIZED COINS - WHAT IT MEANS FOR GOVERNMENTS: • Governments are relentlessly trying to find new ways to keep track of crypto transactions. Crypto Currency Exchanges, just like all other Financial Institutions and Banks, are required to practice the most stringent Know Your Customer (widely known as KYC) process. The KYC is designed to provide governing agencies and authorities with information pertaining to crypto ownerships.
• But no governments can have information on Peer-to-Peer (also known as P2P) transactions unless the government in question launch a full scale Federal Investigation on certain suspected individuals seeking Wallet Developers to unveil the ownership of certain wallet addresses. Do not forget, National and Global Security trumps Privacy Act. Refusal to co-operate under the pretext of Global or National Security will only result in an out-right ban, which is exactly what happened to Blackberry.
• Questions to Governments – What if Wallet Developers or Crypto Exchanges shuts down which can happen for various reasons be it foul-play, sinister or forcefully under threat? What if servers are damaged and ruined? An EMP strike or a simple magnet can make it happen. Information/identities of suspected customers of such addresses shall be lost forever and along with it the Money Trial.
• The most probable way of evading Authorities with crypto assets are developing an e-wallet for own illicit purpose. Since the cost of developing an e-wallet is relatively low in considerable cost to hiding, what can governments do to flush out these ants from the vast networks of tunnels?
• With Serialized Coded Crypto Assets, it doesn’t matter if servers of Exchanges or Wallets are destroyed. The Serial Codes of each token/coin enables governments of every participating country to track both origin and destination by identifying records of each token/coin in wallet address. It can disappear into a cold wallet but emerging some place later yet Authorities can still detail which particular token/coin has at one moment of time been into which wallet, on what day and date.
• If the battle of financial crimes can be resolved with a simple Serialize Coded Crypto Asset, the eradication of corruptions, money laundering, unlawful proceeds and terrorism financing will be made possible. Criminals can no longer exploit the genius creation of Sathoshi – Blockchain and Crypto-Currencies.
• Global Security, Anti-Terrorism Financing and Money Laundering could just be excuses granting government agencies the need to have access to financial information in the Monetary System. Nonetheless, it is in the interest of every nation that capital outflow is controlled. Capital Outflow is most frequent when the economy of a country is deteriorating. In the face of an economy meltdown, monetary flow is most needed and yet citizens tend to transfer monies further away illegally from their own country in an act of selfishness. This would not be tolerated by any country. Serial Coded Coin shall prove this attempt futile.
• In most part of Asian Countries, many crypto-currency mining operations are carried out illegally. The legality sits on thin fine line where Authorities can pin only stealing of electricity as a major concern to the respective country. Since most Power Companies belongs to the Country in one way or another, it is financially damaging to Power Producers and Utility Suppliers. Serial Codes can determine if the KRATSCOIN is mined legally or illegally making it difficult for miners or mining farms to mine crypto while avoiding making electricity payments. Will this deterrent disrupt the chain of KRATSCOIN supply? That’s not how Blockchain Tech works. TAXATIONS - WHAT IT MEANS FOR PUBLIC AND GOVERNMENTS: • Taxation cannot be imposed on “Illegal & Unlawful Proceeds” instead confiscation is enforced in many countries. Origins or proceeds of Serialized Coded Crypto Assets can be easily identified by the Serial Codes in-conjunction with the Blockchain. This exercise can evidently proof the legitimacy of the aforesaid token/coin. By “Illegal & Unlawful Proceeds” also refers to crypto coins obtained via illegal mining operations.
• Taxation on Crypto Assets are calculated on profits deriving from the sale/disposal of the crypto Assets. If we are small crypto believers, the amount of taxation rendered by Inland Revenue will be insignificant. Why risk Freedom of Life over Freedom of Small Monies. If we are big crypto believers, taxation on Serialized Coded Coins can be considered added security to your assets protection.
• By adopting Serialized Crypto Assets, declaration is made easily possible via proof of token/coin origin via the Blockchain. If the Authorities can know where our crypto assets come from, the Authorities will know where it will disappear to. It is taxation cum insurance in one tiny sum. This added security with freedom feature will encourage self-declarations of crypto assets to Authorities and Agencies. PRIVACY & ANONIMITY: • Many may be skeptical of their wealth being tracked and monitored. But in this era of technological advance society, everything we touches has our signature. Banks, iPhones, Samsung Mobiles, Google, Facebook, Whatsapp, WeChat, LINE, Viber, Facebook, Properties, Utilities. Almost everything. It is to this fact that there is a need for Privacy Protection Act.
• As explained before, Crypto Currency Exchange KYC procedures is designed to expose the identity of Crypto Assets ownership. The Blockchain is supposed to serve as a transparent information platform. The question of privacy over Serialized Coded Coins does not exist, it does not make Serialized Coded Coins ownership any less private.
• Ownership of wallet addresses shall always remain anonymous while the only way Authorities can get to it is through Wallet Developers by virtue of Global/National Security Threats or by a Court Order as per the Privacy Protection Act. SAFETY & SECURITY (CODED CRYPTO VS FIAT + COMMODITIES): • No human mind can memorize the millions of serial numbers printed on fiat currencies. The records of Serialized Coded Coins will forever be in the Blockchain embedded within each transaction from wallet to wallet.
• Serialized Commodities such as gold can be melted down. Diamonds recrafted. Fiat double printed. But not Serialized Coded Crypto Assets.
• Should an accessory system be added into the KRATSCOIN Blockchain, allowing reports on criminal activity be made within the Blockchain, notifying all ledgers of certain stolen Serial Coded Coins, enabling WARNINGS and forbidding next transaction of that particular Serial Coded Coin, wouldn’t this function enhance protection. A theft deterrent function which can never be achieved with physical gold, diamonds or fiat. KRATSCOIN SUMMARY: • Most crypto currencies have not reach a level of security alert for governments. This could be the only reason why a possible ban has not been discussed. China and India has begun efforts to control or ban crypto currencies in their quest to combat capital outflow, writer’s personal opinion. The EU has stopped Libra from implementation. “A company cannot be allowed Authoring Power for issuance of currencies” quoted the governments. KRATSCOIN is fully decentralized with no ownership nor control by any country, company or individual. Once again, the beauty of Bitcoin decentralization concept prevails.
• “There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar” quoted in google.com.
• Most countries have “Foreign Reserves” as backing to a country’s fiat currency. It is a mean of “back up” attempt should all factors above mentioned leading to the value of their currencies collapse. Then what will happen if the Country of the Foreign Reserves collapse?
• Serial Coded KRATSCOIN belongs to no one, no country, no company and therefore theoretically shall not be effected by politics, war or global economy meltdown yet everyone, every country and every government is able to benefit from KRATSCOIN.
"Quoted by" https://lintangnews.com/ada-kratscoin-ini-bedanya-dengan-bitcoin/ https://0xzx.com/201910111244312902.html https://news.tokocrypto.com/tag/kratscoin-ktc/ http://bbs.tianya.cn/post-lookout-836105-1.shtml https://zhuanlan.zhihu.com/p/84844615
submitted by xia112 to Bitcoin [link] [comments]

An Anarchist Case Against Markets

I originally posted this to DebateAnarchism but thought it would be good for discussion here as well
This post was inspired by a debate I had on this sub with a Market Anarchist, which stopped advancing beyond a certain point due to several impasses that we could never get beyond. It became frustrating for both of us after a while because we kept talking past each other.
I wanted to make this post in an effort to clearly explain the following: 1) What I mean when I say that I am "against markets", 2) Why I am against markets, 3) What mechanisms I think can serve as effective replacements for markets, and 4) Responses to common criticisms.
(Disclaimer: I am only pointing out problems with markets pertinent to the target audience of this sub that supports them - Market Anarchists. There is no need to make criticisms of market features that Market Anarchists do not endorse in the first place. This post is not intended to be a general or all-inclusive criticism of markets, because Market Anarchists are anti-capitalists anyway.)
"Against Markets"
I don't seek to "ban" markets in an anarchist social context (obviously, because I'm an Anarchist), but I seek to make them obsolete. This is what I mean when I say that I am "against markets".
The Problems with Markets (as they pertain to Market Anarchism) (in no particular order)
The authors investigate how worker-owned and capitalist enterprises differ with respect to wages, employment, and capital in Italy, the market economy with the greatest incidence of worker-owned and worker-managed firms. Estimates calculated using a matched employer-worker panel data set for the years 1982–94 largely corroborate the implications of orthodox behavioral models of the two types of enterprise. Co-ops had 14% lower wages than capitalist enterprises, on average; more volatile wages; and less volatile employment. Given the quality of the data set analyzed, the authors argue, these results can be regarded as having broad generality
(Note: Regarding the point about "less volatile employment" in favor of coops...this study was done comparing between capitalist firms and worker coops. The wages were largely reflective of wages for union members because the wages in capitalist firms regardless of whether the workers were union members or not were based on regional collective bargaining by the unions. However, (unlike with the wages) the job security is not reflective of job security for union members. While we can see that union wages are higher than income for workers working in cooperatives, we cannot make a meaningful comparison based on this study between union job security and coop job security.)
If you want an efficient market system for coordinating production and distribution, you need a flexible labor market. Unfortunately, a more flexible ("freer") labor market leads to reduced labor share of income even under worker ownership (Self-Exploitation). On the other hand, workers forming cartels (monopolizing/oligopolizing access the labor in their field) that restrict labor markets is the only way to halt the trend of decreasing labor share of income - this is essentially what the function of labor unions is. So you need labor cartels to prevent Labor self-Exploitation (in the Marxist sense), while these labor cartels will themselves either be impossible to enforce in the absence of authority (because of the equivalent of Scabs) OR even if they can be enforced without authority they will undermine the efficiency of the markets in your society (because cartels screw up the function of prices in a market).
Alternatives
Based on what is written below regarding ECP and HKP, there is no longer a reason (with regard to rational economic calculation or information) to think that decentralized planning and gift economy dynamics would be unable to entirely replace the role of markets.
Answers to Common Criticisms/Objections
I've been told this recently in an argument with a Market Anarchist. However, he never was able to explain specifically how and why these differences would manifest and on what basis one could claim that it would alter my calculus and conclusions above.
In that case you've massively restricted the potential scale and scope in which markets can have a role in the functioning of your economy. I suppose that's fine, but in that case I would ask the question: Why retain them at all? Why not seek to replace them entirely?
To put it simply, ECP just says that you need a mechanism that allows you to compare multiple possible allocation pathways for resources in order to know which allocation pathway is the most efficient use of resources. And HKP basically says that those who do a particular kind of activity in the economy learn the information relevant to that activity as they perform it. Furthermore, this information is disparate and best able to be extracted by lots of people individually doing particular activities that they focus on.
There's nothing inherent about a large firm that prevents this from happening more so than an aggregate of small firms playing the same role in aggregate as the large firm does by itself. Large firms that are run bottom-up and allow their members autonomy (as was the case of with each of the collectives/syndicates in Catalonia, in contrast to large firms in capitalism) can discover and disseminate this information at least as well as an aggregate of small firms playing the same role as the large firm by itself. As support for my claim, I reference The Anarchist Collectives by Sam Dolgoff - a book that contains multiple empirical examples showing that collectivization of multiple separate firms (which had been engaging in exchange transactions with one another to form a supply chain prior to the Anarchist revolution in Spain) into singular firms of operation from start to finish across the entire supply chain, actually improved productivity, innovation within the production process, and distribution of end products. This actually addresses both HKP and ECP. As per Hume's Razor, we can therefore conclude that a reduction in the scope, role, and presence of intermediary exchange transactions/prices between steps in the supply chain neither results in reduced ability to acquire & disseminate information nor results in reduced economic efficiency. Furthermore (as per Hume's Razor), we can conclude that it is not the scope, role, or presence of prices/exchange transactions that enable either rational economic calculation or the acquisition & dissemination of knowledge. This is because (as per Hume's Razor) if it were true that prices/markets are necessary or superior to all other methods for efficient information discovery & dissemination as well as for rational economic calculation, it would not have been the case that we could have seen improvements in productivity, innovation, and distribution of end products in the aforementioned examples after substantially reducing (via collectivization/integration of various intermediary and competing firms) the role, scope, and presence of prices/markets within the economy.
The alternative explanation (one that is more credible after the application of Hume's Razor and keeping the aforementioned empirical examples in mind) is that optimally efficient information discovery & dissemination as well as rational economic calculation, are both possible in a non-market framework when individuals have autonomy and can freely associate/dissociate with others in the pursuit of their goals.
What's written above should be sufficient to address this objection as well. If it is not the scope, role, and presence of prices/exchange transactions that enable either rational economic calculation or the acquisition & dissemination of knowledge...then there is no basis upon which to argue there will necessarily be (from an information or rational economic calculation standpoint) more bureaucracy in aggregate in a society that has replaced markets, than there would be in a society that retains them.
However, there remains the objection that bureaucracy would exist to a larger extent due to the lack of competitive pressures against inefficiency. My response is to point out that empirical evidence from revolutionary Anarchist societies indicate strongly to the contrary. The role and presence of competition was greatly reduced while there was a simultaneous improvement in efficiency. As per Hume's Razor, we can therefore reject the notion that it is competition specifically that inherently prevents bureaucratic buildup in individual firms. It seems, from these empirical examples, that the best way to prevent bureaucracy is not through market competition between several small firms but through Anarchist praxis involving a lack of hierarchy and authority within large firms (recall that I often use the term "firm" to refer to collectives, syndicates, etc. for the purposes of this post), such that there is no ossified system of rank within the large firm. The absence of an ossified system of rank within firms is the true key to preventing the accumulation of bureaucracy within firms.
Note the three types of efficiency in the linked video - Allocative Efficiency, Productive Efficiency, and Dynamic Efficiency.
The evidence from Anarchist Spain during the Spanish Civil War (which I discussed above) indicates that Productive Efficiency and Allocative Efficiency was improved in various industries and communities where Anarchist collectivization took place. This trend only reversed and ended as the State undermined the Anarchists through various measures, such as cutting them off of currency that was needed to acquire resources from outside the Anarchist-controlled regions, using that leverage over currency to take over control of various industries away from the Anarchists, etc... Thus far, the market anarchists I have discussed this issue with have agreed on this point.
Where I have faced disagreement from market anarchists is on the issue of Dynamic Efficiency aka "Innovative Efficiency". Those whom I have discussed this with argue that markets optimize dynamic efficiency better than any other alternative.
My response is as follows... Evidence indeed does not support the commonly held view that (within a market economy) larger firms have greater dynamic efficiency. However, it does show that investment into R&D (especially by small firms) in market settings is substantially impacted by whether or not there are Intellectual Property Rights.
For me, this raises a natural question: In an Anarchist social context where there are no intellectual property rights, would a framework of cooperation/collectivization into larger firms be more dynamically efficient than competition between smaller firms? Let's look at the following...
(1) Evidence shows that, in general, Intellectual Property Rights have a substantial net negative impact on innovative efficiency:
To summarize, although only tentative conclusions can be drawn given the small number of empirical studies, the body of available empirical evidence suggests that patents may substantively hinder both subsequent scientific research and subsequent product development. Across a relatively heterogeneous set of technologies within the life sciences, and examining various forms of intellectual property rights, the available empirical evidence suggests that property rights hinder cumulative innovation—with declines on the order of 30 percent. Clearly much more work is needed in order to examine the extent to which these patterns generalize to other technologies and other forms of intellectual property, but the best available evidence suggests that mechanisms that reward innovation in a way that places the technologies in the public domain—such as patent buyouts—may have substantial benefits in terms of encouraging cumulative innovation, at least in some contexts.
(2) Evidence shows that firms - in the context of a market economy - invest less in R&D without the presence of Intellectual Property Rights of some form.
So to summarize, IP generally has a substantial net negative impact on dynamic efficiency but in the context of a market economy IP is necessary to incentivize firms to invest adequately into R&D.
Based on this we can argue that in an Anarchist social context, a non-market framework (involving decentralized planning and gift economy dynamics) of cooperation/collectivization into larger firms is likely to be more dynamically efficient than a market framework of competition between multiple smaller firms. This means that replacing markets with cooperative/collectivized dynamics will likely improve dynamic efficiency - the opposite of what the market anarchists I have discussed this issue with claim.
I have had a discussion with a market anarchist who argued that certain kinds of tasks will not be adequately completed without monetary incentive - particularly tasks that are unpleasant or those which people do not enjoy.
However, this ignores the historical and contemporary evidence of Anarchists accomplishing these tasks without monetary incentive - see below:
https://theanarchistlibrary.org/library/peter-gelderloos-anarchy-works#toc53
https://theanarchistlibrary.org/library/sam-dolgoff-editor-the-anarchist-collectives#toc57
https://theanarchistlibrary.org/library/peter-gelderloos-anarchy-works#toc24
(A) First, here is the simplified logic behind why I find Marx's Law of Value Compelling as compared to Subjective Value Theory:
(i) The function of markets is to optimize supply and demand so that resources are allocated efficiently. An efficient allocation of resources enables future reproduction and growth of an economy. When the market suddenly undoes the very allocation of supply to fulfill demand that it had previously built up such that the economy subsequently shrinks, the previous build up can be thought of as a market failure. Hence the process by which prices plummet (along with all the subsequent effects) until the market can reorient to start growing the economy again, can be accurately called "correction". Given that prices can be incorrect such that they require "correction", price and value cannot be the same thing.
(ii) A bubble bursts in the economy when previously inflated prices are corrected. (Note that "correction" is not my own term, but a term frequently used to describe such phenomena in economics.)
(iii) The only way to make sense of this is that prices originally (prior to the bubble bursting) deviated from values too much.
(iv) If it is the case that prices can deviate too much from values while prices are derived from the interplay of various actors' marginal utilities, value cannot be subjective. There must be an objective substance of value around which prices can deviate (to an extent).
(v) Therefore, STV is invalid as a theory of value.
(vi) Having accepted this logic, it follows that we require an objective theory of value as opposed to a subjective theory of value. Now the question becomes: What should this objective theory of value be?
(vii) An objective theory of value must express value as being comprised of some definable substance(s).
(viii) Given that we have established value as something objective rather than subjective, it must be possible for commodities to be exchanged in such a way that there is equal Value on both sides of an exchange.
(ix) In order for things to have equal value, the substance of value must be some characteristic that all commodities share but also separates them from non-commodities.
(x) The only such characteristic is that they can all be produced by simple/"unskilled" human labor.
(xi) Therefore, expressing the value of a commodity must be done in units of simple/"unskilled" human labor.
(B) Furthermore, it has come to my attention that some market anarchists find Marx's Law of Value uncompelling as a result of the Transformation Problem. My response is to look into TSSI, which has made it clear that the Transformation Problem is a non-issue.
The reason this is important is that if you agree with Marx's Law of Value, then you necessarily would find worker cooperatives and market socialism of any variety (including market anarchism) highly problematic due to Self-Exploitation.
submitted by PerfectSociety to CapitalismVSocialism [link] [comments]

An Anarchist Case Against Markets

This post was inspired by a debate I had on this sub with a Market Anarchist, which stopped advancing beyond a certain point due to several impasses that we could never get beyond. It became frustrating for both of us after a while because we kept talking past each other.
I wanted to make this post in an effort to clearly explain the following: 1) What I mean when I say that I am "against markets", 2) Why I am against markets, 3) What mechanisms I think can serve as effective replacements for markets, and 4) Responses to common criticisms.
(Disclaimer: I am only pointing out problems with markets pertinent to the target audience of this sub that supports them - Market Anarchists. There is no need to make criticisms of market features that Market Anarchists do not endorse in the first place. This post is not intended to be a general or all-inclusive criticism of markets, because Market Anarchists are anti-capitalists anyway.)
"Against Markets"
I don't seek to "ban" markets in an anarchist social context (obviously, because I'm an Anarchist), but I seek to make them obsolete. This is what I mean when I say that I am "against markets".
The Problems with Markets (as they pertain to Market Anarchism) (in no particular order)
The authors investigate how worker-owned and capitalist enterprises differ with respect to wages, employment, and capital in Italy, the market economy with the greatest incidence of worker-owned and worker-managed firms. Estimates calculated using a matched employer-worker panel data set for the years 1982–94 largely corroborate the implications of orthodox behavioral models of the two types of enterprise. Co-ops had 14% lower wages than capitalist enterprises, on average; more volatile wages; and less volatile employment. Given the quality of the data set analyzed, the authors argue, these results can be regarded as having broad generality
(Note: Regarding the point about "less volatile employment" in favor of coops...this study was done comparing between capitalist firms and worker coops. The wages were largely reflective of wages for union members because the wages in capitalist firms regardless of whether the workers were union members or not were based on regional collective bargaining by the unions. However, (unlike with the wages) the job security is not reflective of job security for union members. While we can see that union wages are higher than income for workers working in cooperatives, we cannot make a meaningful comparison based on this study between union job security and coop job security.)
If you want an efficient market system for coordinating production and distribution, you need a flexible labor market. Unfortunately, a more flexible ("freer") labor market leads to reduced labor share of income even under worker ownership (Self-Exploitation). On the other hand, workers forming cartels (monopolizing/oligopolizing access the labor in their field) that restrict labor markets is the only way to halt the trend of decreasing labor share of income - this is essentially what the function of labor unions is. So you need labor cartels to prevent Labor self-Exploitation (in the Marxist sense), while these labor cartels will themselves either be impossible to enforce in the absence of authority (because of the equivalent of Scabs) OR even if they can be enforced without authority they will undermine the efficiency of the markets in your society (because cartels screw up the function of prices in a market).
Alternatives
Based on what is written below regarding ECP and HKP, there is no longer a reason (with regard to rational economic calculation or information) to think that decentralized planning and gift economy dynamics would be unable to entirely replace the role of markets.
Answers to Common Criticisms/Objections
I've been told this recently in an argument with a Market Anarchist. However, he never was able to explain specifically how and why these differences would manifest and on what basis one could claim that it would alter my calculus and conclusions above.
In that case you've massively restricted the potential scale and scope in which markets can have a role in the functioning of your economy. I suppose that's fine, but in that case I would ask the question: Why retain them at all? Why not seek to replace them entirely?
To put it simply, ECP just says that you need a mechanism that allows you to compare multiple possible allocation pathways for resources in order to know which allocation pathway is the most efficient use of resources. And HKP basically says that those who do a particular kind of activity in the economy learn the information relevant to that activity as they perform it. Furthermore, this information is disparate and best able to be extracted by lots of people individually doing particular activities that they focus on.
There's nothing inherent about a large firm that prevents this from happening more so than an aggregate of small firms playing the same role in aggregate as the large firm does by itself. Large firms that are run bottom-up and allow their members autonomy (as was the case of with each of the collectives/syndicates in Catalonia, in contrast to large firms in capitalism) can discover and disseminate this information at least as well as an aggregate of small firms playing the same role as the large firm by itself. As support for my claim, I reference The Anarchist Collectives by Sam Dolgoff - a book that contains multiple empirical examples showing that collectivization of multiple separate firms (which had been engaging in exchange transactions with one another to form a supply chain prior to the Anarchist revolution in Spain) into singular firms of operation from start to finish across the entire supply chain, actually improved productivity, innovation within the production process, and distribution of end products. This actually addresses both HKP and ECP. As per Hume's Razor, we can therefore conclude that a reduction in the scope, role, and presence of intermediary exchange transactions/prices between steps in the supply chain neither results in reduced ability to acquire & disseminate information nor results in reduced economic efficiency. Furthermore (as per Hume's Razor), we can conclude that it is not the scope, role, or presence of prices/exchange transactions that enable either rational economic calculation or the acquisition & dissemination of knowledge. This is because (as per Hume's Razor) if it were true that prices/markets are necessary or superior to all other methods for efficient information discovery & dissemination as well as for rational economic calculation, it would not have been the case that we could have seen improvements in productivity, innovation, and distribution of end products in the aforementioned examples after substantially reducing (via collectivization/integration of various intermediary and competing firms) the role, scope, and presence of prices/markets within the economy.
The alternative explanation (one that is more credible after the application of Hume's Razor and keeping the aforementioned empirical examples in mind) is that optimally efficient information discovery & dissemination as well as rational economic calculation, are both possible in a non-market framework when individuals have autonomy and can freely associate/dissociate with others in the pursuit of their goals.
What's written above should be sufficient to address this objection as well. If it is not the scope, role, and presence of prices/exchange transactions that enable either rational economic calculation or the acquisition & dissemination of knowledge...then there is no basis upon which to argue there will necessarily be (from an information or rational economic calculation standpoint) more bureaucracy in aggregate in a society that has replaced markets, than there would be in a society that retains them.
However, there remains the objection that bureaucracy would exist to a larger extent due to the lack of competitive pressures against inefficiency. My response is to point out that empirical evidence from revolutionary Anarchist societies indicate strongly to the contrary. The role and presence of competition was greatly reduced while there was a simultaneous improvement in efficiency. As per Hume's Razor, we can therefore reject the notion that it is competition specifically that inherently prevents bureaucratic buildup in individual firms. It seems, from these empirical examples, that the best way to prevent bureaucracy is not through market competition between several small firms but through Anarchist praxis involving a lack of hierarchy and authority within large firms (recall that I often use the term "firm" to refer to collectives, syndicates, etc. for the purposes of this post), such that there is no ossified system of rank within the large firm. The absence of an ossified system of rank within firms is the true key to preventing the accumulation of bureaucracy within firms.
Note the three types of efficiency in the linked video - Allocative Efficiency, Productive Efficiency, and Dynamic Efficiency.
The evidence from Anarchist Spain during the Spanish Civil War (which I discussed above) indicates that Productive Efficiency and Allocative Efficiency was improved in various industries and communities where Anarchist collectivization took place. This trend only reversed and ended as the State undermined the Anarchists through various measures, such as cutting them off of currency that was needed to acquire resources from outside the Anarchist-controlled regions, using that leverage over currency to take over control of various industries away from the Anarchists, etc... Thus far, the market anarchists I have discussed this issue with have agreed on this point.
Where I have faced disagreement from market anarchists is on the issue of Dynamic Efficiency aka "Innovative Efficiency". Those whom I have discussed this with argue that markets optimize dynamic efficiency better than any other alternative.
My response is as follows... Evidence indeed does not support the commonly held view that (within a market economy) larger firms have greater dynamic efficiency. However, it does show that investment into R&D (especially by small firms) in market settings is substantially impacted by whether or not there are Intellectual Property Rights.
For me, this raises a natural question: In an Anarchist social context where there are no intellectual property rights, would a framework of cooperation/collectivization into larger firms be more dynamically efficient than competition between smaller firms? Let's look at the following...
(1) Evidence shows that, in general, Intellectual Property Rights have a substantial net negative impact on innovative efficiency:
To summarize, although only tentative conclusions can be drawn given the small number of empirical studies, the body of available empirical evidence suggests that patents may substantively hinder both subsequent scientific research and subsequent product development. Across a relatively heterogeneous set of technologies within the life sciences, and examining various forms of intellectual property rights, the available empirical evidence suggests that property rights hinder cumulative innovation—with declines on the order of 30 percent. Clearly much more work is needed in order to examine the extent to which these patterns generalize to other technologies and other forms of intellectual property, but the best available evidence suggests that mechanisms that reward innovation in a way that places the technologies in the public domain—such as patent buyouts—may have substantial benefits in terms of encouraging cumulative innovation, at least in some contexts.
(2) Evidence shows that firms - in the context of a market economy - invest less in R&D without the presence of Intellectual Property Rights of some form.
So to summarize, IP generally has a substantial net negative impact on dynamic efficiency but in the context of a market economy IP is necessary to incentivize firms to invest adequately into R&D.
Based on this we can argue that in an Anarchist social context, a non-market framework (involving decentralized planning and gift economy dynamics) of cooperation/collectivization into larger firms is likely to be more dynamically efficient than a market framework of competition between multiple smaller firms. This means that replacing markets with cooperative/collectivized dynamics will likely improve dynamic efficiency - the opposite of what the market anarchists I have discussed this issue with claim.
I have had a discussion with a market anarchist who argued that certain kinds of tasks will not be adequately completed without monetary incentive - particularly tasks that are unpleasant or those which people do not enjoy.
However, this ignores the historical and contemporary evidence of Anarchists accomplishing these tasks without monetary incentive - see below:
https://theanarchistlibrary.org/library/peter-gelderloos-anarchy-works#toc53
https://theanarchistlibrary.org/library/sam-dolgoff-editor-the-anarchist-collectives#toc57
https://theanarchistlibrary.org/library/peter-gelderloos-anarchy-works#toc24
(A) First, here is the simplified logic behind why I find Marx's Law of Value Compelling as compared to Subjective Value Theory:
(i) The function of markets is to optimize supply and demand so that resources are allocated efficiently. An efficient allocation of resources enables future reproduction and growth of an economy. When the market suddenly undoes the very allocation of supply to fulfill demand that it had previously built up such that the economy subsequently shrinks, the previous build up can be thought of as a market failure. Hence the process by which prices plummet (along with all the subsequent effects) until the market can reorient to start growing the economy again, can be accurately called "correction". Given that prices can be incorrect such that they require "correction", price and value cannot be the same thing.
(ii) A bubble bursts in the economy when previously inflated prices are corrected. (Note that "correction" is not my own term, but a term frequently used to describe such phenomena in economics.)
(iii) The only way to make sense of this is that prices originally (prior to the bubble bursting) deviated from values too much.
(iv) If it is the case that prices can deviate too much from values while prices are derived from the interplay of various actors' marginal utilities, value cannot be subjective. There must be an objective substance of value around which prices can deviate (to an extent).
(v) Therefore, STV is invalid as a theory of value.
(vi) Having accepted this logic, it follows that we require an objective theory of value as opposed to a subjective theory of value. Now the question becomes: What should this objective theory of value be?
(vii) An objective theory of value must express value as being comprised of some definable substance(s).
(viii) Given that we have established value as something objective rather than subjective, it must be possible for commodities to be exchanged in such a way that there is equal Value on both sides of an exchange.
(ix) In order for things to have equal value, the substance of value must be some characteristic that all commodities share but also separates them from non-commodities.
(x) The only such characteristic is that they can all be produced by simple/"unskilled" human labor.
(xi) Therefore, expressing the value of a commodity must be done in units of simple/"unskilled" human labor.
(B) Furthermore, it has come to my attention that some market anarchists find Marx's Law of Value uncompelling as a result of the Transformation Problem. My response is to look into TSSI, which has made it clear that the Transformation Problem is a non-issue.
The reason this is important is that if you agree with Marx's Law of Value, then you necessarily would find worker cooperatives and market socialism of any variety (including market anarchism) highly problematic due to Self-Exploitation.
submitted by PerfectSociety to DebateAnarchism [link] [comments]

ETH News/Dapp Compilation

Hi guys. This is a list I started just recently for personal use to keep track of all the great news we’ve gotten recently for Ethereum. I’m trying my best to categorize the articles by either what type of industry ETH is helping, or how ETH is being helped (Infrastructure section).
It is in no way a comprehensive list and I’d like to open it up to everyone here to contribute/pick apart. I’ve got an idea for basically an “onboarding packet” for Ethereum that will include a rundown of all this stuff, some defi growth stats, list of popular dapps, user guide for Metamask (None of which will come from me but will be compiled all into one place for the benefit of newbs).
I think any non-believer who reads all of the articles in this list, or even just the snippets I included, would be hard pressed to say “ETH isn’t used” or “crypto is a scam” …unless they are just a total moron. Apologies for bad formatting.
Charity/utilitarianism:
https://www.coindesk.com/oxfam-trials-delivery-of-disaster-relief-using-ethereum-stablecoin-dai “Oxfam has previously distributed help to Vanuatu villagers using cash, but the time taken for ID checks and bank visits was an obstacle, the charity representative said. Onboarding a new user for cash aid took around an hour, signing up for a DAI card takes six minutes, Micky wrote. Plus, it made the whole process more transparent.”
Infrastructure:
http://hitcryptonews.com/2019/04/17/ernst-young-ey-unveils-ethereum-blockchain-based-nightfall-protocol/
private UK tax/audit company with over 35 Billion in revenue "Instead of developing a private iteration, EY has announced that its Nightfall protocol will run on top of the public Ethereum network. Further, the multi-national accounting conglomerate has taken a unique strategy to intellectual property. The company said that it will not only open-source the protocol code but also put it in the public domain with absolutely no license at all."
https://blog.cloudflare.com/cloudflare-ethereum-gateway/
"Today, as part of Crypto Week 2019, we are excited to announce Cloudflare's Ethereum Gateway, where you can interact with the Ethereum network without installing any additional software on your computer."
https://www.coindesk.com/microsoft-ethereum-group-launch-token-building-kit-for-enterprises Microsoft launches a kit for businesses to build their own public Ethereum tokens.
https://www.coindesk.com/samsung-unveils-cryptocurrency-wallet-dapps-for-galaxy-s10-phone
“According to a report from CoinDesk Korea published Sunday, the Samsung Blockchain Wallet is currently compatible only with ether (ETH) and ethereum-based ERC20 tokens. Bitcoin is not yet supported, despite the logo appearing on earlier pre-release presentation images.”
https://www.coindesk.com/operas-browser-with-built-in-crypto-wallet-launches-for-iphones
“Dapps can be accessed by typing their address directly in the browser, avoiding the need to use third-party extensions” https://www.bitcoinisle.com/2019/04/05/ethereum-eth-former-white-house-deputy-ctos-blockchain-startup-raises-3-7m-in-seed-funding/ Former whitehouse Chief Technology Officer raising money for an Ethereum side-chain. The chain WILL use the public chain as a final authority, so not just another private chain.
https://cointelegraph.com/news/big-four-auditing-firm-pwc-releases-cryptocurrency-auditing-software
Per the release, the tool newly added to PwC’s Halo auditing suite can be used to “provide assurance services for entities engaging in cryptocurrency transactions.” The firm claims that, with the new addition, the Halo suite permits PwC to provide independent evidence of private-public key pairing (to establish crypto asset ownership), and gather information about transactions and balances from blockchains.
Supply Chain/Logistics:
https://decrypt.co/7621/farmer-trials-blockchain-supply-chain-app-says-its-better-than-excel
“With a spreadsheet, you have to take the farmers’ word on faith. But Treum provides a timestamp and a geolocation—tied to a specific, pre-selected field—that demonstrates, irrevocably, that the crop was grown where the farmer said it was grown. This data is then transferred, in the form of a single token, to the Ethereum network, where it cannot be overwritten.”
https://www.thedrinksbusiness.com/2019/06/idealwine-launches-authentication-tool/
"Cyrille Jomand, iDealwine’s CEO, said: “Bottles verified by iDealwine are equipped with an inviolable RFID TAG which permanently guarantees the link between the bottle of wine and the information contained and transferred in the blockchain.”
Finance:
https://www.forbes.com/sites/hanktucke2019/06/17/polish-bank-alior-uses-public-ethereum-blockchain-for-new-document-authentication-feature/#120959f244a6
"Societe Generale, a major French investment bank, issued a $112 million bond in security tokens on the public ethereum blockchain in April, but Alior’s management believes it is the first bank to use a public blockchain for a direct customer service solution"
"Customers can search documents they have received on Alior’s servers and browse their history to find where those documents are located on the (Ethereum) blockchain to ensure that they have not been changed by the bank since they were published."
http://fintechnews.sg/31826/blockchain/worlds-first-traditional-equity-shares-on-the-blockchain-blueshare-launches-in-singapore/ The token/share ratio is 1:1, meaning that 1 security token is backed by 1 Equity Capital Participation Share. Investments are accepted both in fiat and cryptocurrencies – Euro, Bitcoin, Ether, and Tether. The token sale started on May 6, 2019. The funds raised under the proposed security token offering will be used as a direct investment into the company’s mining and exploration concessions.
https://finance.yahoo.com/news/iceland-financial-regulator-approves-blockchain-190100164.html "Reykjavik-based Monerium, backed by blockchain software company ConsenSys, has reportedly been approved by the Icelandic financial watchdog to provide fiat payment services using ethereum (ETH) blockchain"
https://www.forbes.com/sites/stevenehrlich/2019/06/19/metlife-plans-to-disrupt-2-7-trillion-life-insurance-industry-using-ethereum-blockchain/#1dd36d002770 MetLife is utilizing the live public Ethereum blockchain to add transparency and efficiency to the claims process. In what is believed to be the first pilot program in the world focused on the life insurance industry, MetLife’s Singapore-based incubator LumenLab is collaborating with Singapore Press Holdings (SPH) and NTUC Income (Income) on a platform of smart contracts known as ‘Lifechain’ to help loved ones quickly determine if the deceased was protected with a policy and automatically file a claim.
Novelty/Games/Collectibles:
https://en.businesstimes.cn/articles/113719/20190614/ubisoft-may-soon-have-ethereum-in-game-items-and-blockchain-games.htm "The associate manager at Ubisoft, Anne Puck, added: "We think that blockchain has the potential to transform the gaming experience and even maybe to empower players as true stakeholders in their worlds. That's why our job is to accelerate the integration of blockchain at Ubisoft with this initiative." Ubisoft will likely enable in-game or in-app purchases via the Ethereum network. It is worth noting that the company has not clearly stated that any form of digital currency will be used for any such purchases. "
https://finance.yahoo.com/news/austria-post-launches-crypto-stamp-132010928.html "The “Crypto Stamp” is the first use case for non-fungible tokens launched by a government so far, making it a milestone. The pilot’s success will help determine the future for NFTs, which can now be issued across multiple Ethereum token standards."
https://coinjournal.net/japans-first-blockchain-game-crypt-oink-expands-to-english-speaking-markets-partners-with-cryptokitties/ "Created by Japan-based developer Good Luck 3, Crypt-Oink is a decentralized application (DApp) running on the Ethereum network. The game lets users breed, collect and trade digital racing pigs called Cryptons."
Data/Identity Management:
https://www.forbes.com/sites/rachelwolfson/2019/06/25/ibm-orbs-consensys-work-together-on-global-blockchain-settlement-platform-for-telecoms/#498d66c4782c “In particular for this project, we propose solutions for the "transaction orchestration layer," and decentralized identities for participants in the network, solutions that have already been deployed successfully on Ethereum, and can integrate with other DLTs."
List of actually useful/cool Ethereum Apps(Some are Dapps others just involve ETH):
https://app.compound.finance/# Lending/borrowing ETH and ETH tokens. No fixed lending periods and interest is generated in real time (Every block I think– roughly ten seconds)
https://cdp.makerdao.com/ Mint DAI against your Ether.
https://www.augur.net/ Create a betting market for anything you can imagine. Use https://predictions.global/ to view current markets without downloading the client.
https://kyberswap.com Trade ETH tokens right from your Metamask account without having to deposit/withdrawal to an exchange.
https://godsunchained.com/ Buy trading cards for the first AAA quality hearthstone-esque Ethereum card game where your cards are tokens in your wallet and are freely tradeable (Or at least they will be once the game is out of Beta…)
https://trade.dydx.exchange/ Decentralized leverage trading right from your Metamask wallet.
Other Utilities and Resources:
https://etherscan.io Block explorer. Use this to check out your ETH address, smart contract addresses, spy on whales addresses, etc.
https://www.ethgasstation.info/ Check current gas prices and transaction speeds.
https://github.com/ethereumbook/ethereumbook This is the github version of “Mastering Ethereum” Which goes over the basics of how Ethereum works with smart contracts and nodes and whatnot. It’s actually easier to follow along with than you’d think. Can also buy the PDF version on Amazon.
submitted by hello_again_world to ethtrader [link] [comments]

11-04 14:33 - 'DIFFERENCE BETWEEN KRATSCOIN AND BITCOIN' (self.Bitcoin) by /u/xia112 removed from /r/Bitcoin within 3-13min

'''
• The indivisible minimum KRATSCOIN unit is 0.00001 instead of 0.00000001 to denominate realistic currency rates in FOREX. Denomination cannot be determined or dictated by the value of a currency. If KRATSCOIN is valued at USD10,000.00 then the smallest unit of KRATSCOIN at 0.00001 = USD0.10 and nothing smaller than USD0.10 in KRATSCOIN.
Example: If USD1.00 = THB30.00 and the smallest denomination of USD is USD0.10, then a USD0.10 which is THB3.00, is unable to buy a piece of candy at THB1.00. Thus the USD must be converted into a smaller currency of THB in order to buy the THB1.00 candy.
• KRATSCOIN is in-line with standard International Foreign Currency Exchange Practice at indivisible minimum unit 0.00001.
• Each KRATSCOIN is equipped with a 13 digit “SERIAL CODES AND NUMBERS” and there will be a total of 2,100,000,000,000 SERIAL CODES in total.
Example1: 1st KRATSCOIN = AKDJFYRS.00000 Example2: 1st Fraction from 1st KRATSCOIN = AKDJFYRS.00001 Example3: 2nd Fraction from 2nd KRATSCOIN = AKDJFYRS.00002 Example4: Last KRATSCOIN = DLXVZKWR.00000 Example5: 1st Fraction from Last KRATSCOIN = DLXVZKWR.00001 Example6: 2nd Fraction from Last KRATSCOIN = DLXVZKWR.00002
• In Year 2015, Silk Road in DeepWeb utilization of Bitcoin in their transactions amounts to USD1.2billion spanning over 950,000 users. One may argue that Bitcoin is most utilized by the black market, which then maintains its value and worth among other factors. However, the USD1.2bil a year over 950,000 users are far fetch from the Legitimate Users in comparison. Bitcoin transactions runs into USD40.0bil in recent Legitimate Crypto Exchanges. In summary, legitimate transaction of crypto currencies is many times larger use in illegal transactions.
DIFFERENCE BETWEEN FIAT AND CRYPTO:
• Fiat Currency is backed by Governments/Countries itself. What determines the value of a currency is the economic health, demand, growth, political stability to name a few, of the respective country. Before 1930, most fiat currencies were backed by gold and silver.
• Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government - quoted in google.com.
• What backs crypto value is purely supply and demand. The demand creation of a crypto is its sole objective. To create demand, the crypto has to have a purpose. And most purpose commonly promoted is utility. The number of ways you can utilize the said crypto. The more utilization factors the more demand there is for it.
• There are other ways to substantiate value of a crypto and that is to back the crypto with a 1 to 1 ratio in assets or in USD. Then the question is, how 3,000 crypto currencies in circulation be monetary eco sustainable? Can anyone imagine walking into McDonald and view a chart of 3,000 different pricing? Which also means the crypto is a payment gateway pegging against USD instead of bearing any true characteristic of a currency.
• A country’s currency is in its own legit form of legal tender, the only currency acceptable under financial sovereigns of a country. People in the world must be made to understand that. Retailers in Thailand cannot put up products price tags in EUROS/USD, it is illegal. It has to be in Thai Baht.
• It is hardly imaginable for everyone in the world to retail with a Crypto-Currencies at a rate of 7 transactions per second. When mining nodes are reduced due to non-performing mining ratio, mining blocks in the Blockchain will significantly be limited too, rendering delays in transactions while usage increases.
• In time to come, as trends of crypto picks up, Thailand can issue BAHT COIN or UK the STERLING COIN, exactly what China wishes to do. Digital RMB, but would such crypto currencies be fully decentralized? We all have our answers. Absurd to even think of producing Thai Baht, Pound Sterling or Chinese Yuan at the cost of electricity. It is currencies in digital forms.
KRATSCOIN is not meant for that purpose. In some opinion, apart from utilization, a crypto can be for safekeeping, an entity for keeping money while allowing easy liquidation, at a click of a mobile button, not to mention sending or transferring without the trouble of going to banks, which was the original purpose of Bitcoin to begin with. Therefore, KRATSCOIN would be better termed as Crypto Commodity, sharing similarities as Metal Commodities.
An individual cannot use gold to make a purchase, neither can one eat gold. It can only be kept or invest in for appreciative value over time. Gold is being exampled for its scarcity which reasons for its higher value over its cousin, silver or bronze. Who or what determines the value of gold? Just like any other crypto, demand by humanity. As in all other commodities, it must also be placed in checks by governments. To put in checks, serial numbers are introduced to protect a country’s commodities outflows or illegal exports.
Humanity made Bitcoin a reality. Acceptance by the majority members of the public made Bitcoin to what is it today with the trust they entrusted it with, or is the majority public hopping on the band wagon to make a few quick extra bucks? Whatever the reasons are, the characteristics of Crypto Currencies are only matched by the behavior of Commodities.
SERIALIZED COINS - WHAT IT MEANS FOR THE PUBLIC: Every currency has its own remarkable name, design and colors. Dollars, Euros, Pound, Tugrik, Peso, Rupee, Rupiah, Dina, Ringgit, Baht and the list carries on. One thing every currency have in common - Serial Numbers.
In any crime, investigators will firstly establish motives and mode of operation, both of which are very likely related to money. So following the money trial is a natural thing to do for investigators/authorities and it has become a common practice. Crimes require funding ie robbers need money to buy guns to carry out its robbing activities. Cutting off financing will reduce criminal activities. That’s the approach governments of the WORLD have adopted for crime fighting.
Perhaps people do not realize this while most do not feel the pinch. Humanity tends to take life for granted until apocalypse happens. Take a minute to visualize the tallest tower in your homeland collapse into a pile of dust with thousands of casualties effecting everything else that comes to mind. Imagine a family member, just 1 is enough, is among those casualties.
• Imagine if monetary system is not in place and drug dealers, among many, roam the earth freely distributing what can be death threatening substance to your kids. What if you are mugged of your inheritance [items left to you by your father] that is beyond retrieval? As for crypto enthusiast, what if your wallet gets hacked as even the mighty Pentagon gets hacked. All the above can go away if the crypto system leaves a trail for hound dogs to sniff out. Money Trail or Serial Codes Trail to be exact.
• Citizens rely on governments and their countries to do what is best for them to lead their daily lives, flourish, advance, improve and strive but at the same time, citizens want to take away the single most important thing deemed crucial in the hierarchy of humanity from governments with additional boastful remarks such as “I transferred $400 million from one corner of the earth to another corner in a single transaction and no governments can do anything about it”.
• In-short, to boast unregulated financial movement is to arrogantly promote crime without realizing it while challenging the world’s monetary authority. Oldest advice in the book teaches us never to pick a fight we can’t win.
• Serial Coded Coins does not take away the financial movement freedom nor does it take away your privacy. It merely provides Authorities the necessary means needed for crime prevention and fighting. It only re-inforce security and safety. SERIALIZED COINS - WHAT IT MEANS FOR GOVERNMENTS: • Governments are relentlessly trying to find new ways to keep track of crypto transactions. Crypto Currency Exchanges, just like all other Financial Institutions and Banks, are required to practice the most stringent Know Your Customer (widely known as KYC) process. The KYC is designed to provide governing agencies and authorities with information pertaining to crypto ownerships.
• But no governments can have information on Peer-to-Peer (also known as P2P) transactions unless the government in question launch a full scale Federal Investigation on certain suspected individuals seeking Wallet Developers to unveil the ownership of certain wallet addresses. Do not forget, National and Global Security trumps Privacy Act. Refusal to co-operate under the pretext of Global or National Security will only result in an out-right ban, which is exactly what happened to Blackberry.
• Questions to Governments – What if Wallet Developers or Crypto Exchanges shuts down which can happen for various reasons be it foul-play, sinister or forcefully under threat? What if servers are damaged and ruined? An EMP strike or a simple magnet can make it happen. Information/identities of suspected customers of such addresses shall be lost forever and along with it the Money Trial.
• The most probable way of evading Authorities with crypto assets are developing an e-wallet for own illicit purpose. Since the cost of developing an e-wallet is relatively low in considerable cost to hiding, what can governments do to flush out these ants from the vast networks of tunnels?
• With Serialized Coded Crypto Assets, it doesn’t matter if servers of Exchanges or Wallets are destroyed. The Serial Codes of each token/coin enables governments of every participating country to track both origin and destination by identifying records of each token/coin in wallet address. It can disappear into a cold wallet but emerging some place later yet Authorities can still detail which particular token/coin has at one moment of time been into which wallet, on what day and date.
• If the battle of financial crimes can be resolved with a simple Serialize Coded Crypto Asset, the eradication of corruptions, money laundering, unlawful proceeds and terrorism financing will be made possible. Criminals can no longer exploit the genius creation of Sathoshi – Blockchain and Crypto-Currencies.
• Global Security, Anti-Terrorism Financing and Money Laundering could just be excuses granting government agencies the need to have access to financial information in the Monetary System. Nonetheless, it is in the interest of every nation that capital outflow is controlled. Capital Outflow is most frequent when the economy of a country is deteriorating. In the face of an economy meltdown, monetary flow is most needed and yet citizens tend to transfer monies further away illegally from their own country in an act of selfishness. This would not be tolerated by any country. Serial Coded Coin shall prove this attempt futile.
• In most part of Asian Countries, many crypto-currency mining operations are carried out illegally. The legality sits on thin fine line where Authorities can pin only stealing of electricity as a major concern to the respective country. Since most Power Companies belongs to the Country in one way or another, it is financially damaging to Power Producers and Utility Suppliers. Serial Codes can determine if the KRATSCOIN is mined legally or illegally making it difficult for miners or mining farms to mine crypto while avoiding making electricity payments. Will this deterrent disrupt the chain of KRATSCOIN supply? That’s not how Blockchain Tech works. TAXATIONS - WHAT IT MEANS FOR PUBLIC AND GOVERNMENTS: • Taxation cannot be imposed on “Illegal & Unlawful Proceeds” instead confiscation is enforced in many countries. Origins or proceeds of Serialized Coded Crypto Assets can be easily identified by the Serial Codes in-conjunction with the Blockchain. This exercise can evidently proof the legitimacy of the aforesaid token/coin. By “Illegal & Unlawful Proceeds” also refers to crypto coins obtained via illegal mining operations.
• Taxation on Crypto Assets are calculated on profits deriving from the sale/disposal of the crypto Assets. If we are small crypto believers, the amount of taxation rendered by Inland Revenue will be insignificant. Why risk Freedom of Life over Freedom of Small Monies. If we are big crypto believers, taxation on Serialized Coded Coins can be considered added security to your assets protection.
• By adopting Serialized Crypto Assets, declaration is made easily possible via proof of token/coin origin via the Blockchain. If the Authorities can know where our crypto assets come from, the Authorities will know where it will disappear to. It is taxation cum insurance in one tiny sum. This added security with freedom feature will encourage self-declarations of crypto assets to Authorities and Agencies. PRIVACY & ANONIMITY: • Many may be skeptical of their wealth being tracked and monitored. But in this era of technological advance society, everything we touches has our signature. Banks, iPhones, Samsung Mobiles, Google, Facebook, Whatsapp, WeChat, LINE, Viber, Facebook, Properties, Utilities. Almost everything. It is to this fact that there is a need for Privacy Protection Act.
• As explained before, Crypto Currency Exchange KYC procedures is designed to expose the identity of Crypto Assets ownership. The Blockchain is supposed to serve as a transparent information platform. The question of privacy over Serialized Coded Coins does not exist, it does not make Serialized Coded Coins ownership any less private.
• Ownership of wallet addresses shall always remain anonymous while the only way Authorities can get to it is through Wallet Developers by virtue of Global/National Security Threats or by a Court Order as per the Privacy Protection Act. SAFETY & SECURITY (CODED CRYPTO VS FIAT + COMMODITIES): • No human mind can memorize the millions of serial numbers printed on fiat currencies. The records of Serialized Coded Coins will forever be in the Blockchain embedded within each transaction from wallet to wallet.
• Serialized Commodities such as gold can be melted down. Diamonds recrafted. Fiat double printed. But not Serialized Coded Crypto Assets.
• Should an accessory system be added into the KRATSCOIN Blockchain, allowing reports on criminal activity be made within the Blockchain, notifying all ledgers of certain stolen Serial Coded Coins, enabling WARNINGS and forbidding next transaction of that particular Serial Coded Coin, wouldn’t this function enhance protection. A theft deterrent function which can never be achieved with physical gold, diamonds or fiat. KRATSCOIN SUMMARY: • Most crypto currencies have not reach a level of security alert for governments. This could be the only reason why a possible ban has not been discussed. China and India has begun efforts to control or ban crypto currencies in their quest to combat capital outflow, writer’s personal opinion. The EU has stopped Libra from implementation. “A company cannot be allowed Authoring Power for issuance of currencies” quoted the governments. KRATSCOIN is fully decentralized with no ownership nor control by any country, company or individual. Once again, the beauty of Bitcoin decentralization concept prevails.
• “There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar” quoted in google.com.
• Most countries have “Foreign Reserves” as backing to a country’s fiat currency. It is a mean of “back up” attempt should all factors above mentioned leading to the value of their currencies collapse. Then what will happen if the Country of the Foreign Reserves collapse?
• Serial Coded KRATSCOIN belongs to no one, no country, no company and therefore theoretically shall not be effected by politics, war or global economy meltdown yet everyone, every country and every government is able to benefit from KRATSCOIN.
"Quoted by" [[link]6 [[link]7 [[link]8 [[link]9 [[link]10
'''
DIFFERENCE BETWEEN KRATSCOIN AND BITCOIN
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Author: xia112
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Unknown links are censored to prevent spreading illicit content.
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DIFFERENCE BETWEEN FIAT AND CRYPTO

• Fiat Currency is backed by Governments/Countries itself. What determines the value of a currency is the economic health, demand, growth, political stability to name a few, of the respective country. Before 1930, most fiat currencies were backed by gold and silver.
• Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government - quoted in google.com.
• What backs crypto value is purely supply and demand. The demand creation of a crypto is its sole objective. To create demand, the crypto has to have a purpose. And most purpose commonly promoted is utility. The number of ways you can utilize the said crypto. The more utilization factors the more demand there is for it.
• There are other ways to substantiate value of a crypto and that is to back the crypto with a 1 to 1 ratio in assets or in USD. Then the question is, how 3,000 crypto currencies in circulation be monetary eco sustainable? Can anyone imagine walking into McDonald and view a chart of 3,000 different pricing? Which also means the crypto is a payment gateway pegging against USD instead of bearing any true characteristic of a currency.
• A country’s currency is in its own legit form of legal tender, the only currency acceptable under financial sovereigns of a country. People in the world must be made to understand that. Retailers in Thailand cannot put up products price tags in EUROS/USD, it is illegal. It has to be in Thai Baht.
• It is hardly imaginable for everyone in the world to retail with a Crypto-Currencies at a rate of 7 transactions per second. When mining nodes are reduced due to non-performing mining ratio, mining blocks in the Blockchain will significantly be limited too, rendering delays in transactions while usage increases.
• In time to come, as trends of crypto picks up, Thailand can issue BAHT COIN or UK the STERLING COIN, exactly what China wishes to do. Digital RMB, but would such crypto currencies be fully decentralized? We all have our answers. Absurd to even think of producing Thai Baht, Pound Sterling or Chinese Yuan at the cost of electricity. It is currencies in digital forms.
KRATSCOIN is not meant for that purpose. In some opinion, apart from utilization, a crypto can be for safekeeping, an entity for keeping money while allowing easy liquidation, at a click of a mobile button, not to mention sending or transferring without the trouble of going to banks, which was the original purpose of Bitcoin to begin with. Therefore, KRATSCOIN would be better termed as Crypto Commodity, sharing similarities as Metal Commodities.
An individual cannot use gold to make a purchase, neither can one eat gold. It can only be kept or invest in for appreciative value over time. Gold is being exampled for its scarcity which reasons for its higher value over its cousin, silver or bronze. Who or what determines the value of gold? Just like any other crypto, demand by humanity. As in all other commodities, it must also be placed in checks by governments. To put in checks, serial numbers are introduced to protect a country’s commodities outflows or illegal exports.
Humanity made Bitcoin a reality. Acceptance by the majority members of the public made Bitcoin to what is it today with the trust they entrusted it with, or is the majority public hopping on the band wagon to make a few quick extra bucks? Whatever the reasons are, the characteristics of Crypto Currencies are only matched by the behavior of Commodities.
SERIALIZED COINS - WHAT IT MEANS FOR THE PUBLIC: Every currency has its own remarkable name, design and colors. Dollars, Euros, Pound, Tugrik, Peso, Rupee, Rupiah, Dina, Ringgit, Baht and the list carries on. One thing every currency have in common - Serial Numbers.
In any crime, investigators will firstly establish motives and mode of operation, both of which are very likely related to money. So following the money trial is a natural thing to do for investigators/authorities and it has become a common practice. Crimes require funding ie robbers need money to buy guns to carry out its robbing activities. Cutting off financing will reduce criminal activities. That’s the approach governments of the WORLD have adopted for crime fighting.
Perhaps people do not realize this while most do not feel the pinch. Humanity tends to take life for granted until apocalypse happens. Take a minute to visualize the tallest tower in your homeland collapse into a pile of dust with thousands of casualties effecting everything else that comes to mind. Imagine a family member, just 1 is enough, is among those casualties.
• Imagine if monetary system is not in place and drug dealers, among many, roam the earth freely distributing what can be death threatening substance to your kids. What if you are mugged of your inheritance [items left to you by your father] that is beyond retrieval? As for crypto enthusiast, what if your wallet gets hacked as even the mighty Pentagon gets hacked. All the above can go away if the crypto system leaves a trail for hound dogs to sniff out. Money Trail or Serial Codes Trail to be exact.
• Citizens rely on governments and their countries to do what is best for them to lead their daily lives, flourish, advance, improve and strive but at the same time, citizens want to take away the single most important thing deemed crucial in the hierarchy of humanity from governments with additional boastful remarks such as “I transferred $400 million from one corner of the earth to another corner in a single transaction and no governments can do anything about it”.
• In-short, to boast unregulated financial movement is to arrogantly promote crime without realizing it while challenging the world’s monetary authority. Oldest advice in the book teaches us never to pick a fight we can’t win.
• Serial Coded Coins does not take away the financial movement freedom nor does it take away your privacy. It merely provides Authorities the necessary means needed for crime prevention and fighting. It only re-inforce security and safety. SERIALIZED COINS - WHAT IT MEANS FOR GOVERNMENTS: • Governments are relentlessly trying to find new ways to keep track of crypto transactions. Crypto Currency Exchanges, just like all other Financial Institutions and Banks, are required to practice the most stringent Know Your Customer (widely known as KYC) process. The KYC is designed to provide governing agencies and authorities with information pertaining to crypto ownerships.
• But no governments can have information on Peer-to-Peer (also known as P2P) transactions unless the government in question launch a full scale Federal Investigation on certain suspected individuals seeking Wallet Developers to unveil the ownership of certain wallet addresses. Do not forget, National and Global Security trumps Privacy Act. Refusal to co-operate under the pretext of Global or National Security will only result in an out-right ban, which is exactly what happened to Blackberry.
• Questions to Governments – What if Wallet Developers or Crypto Exchanges shuts down which can happen for various reasons be it foul-play, sinister or forcefully under threat? What if servers are damaged and ruined? An EMP strike or a simple magnet can make it happen. Information/identities of suspected customers of such addresses shall be lost forever and along with it the Money Trial.
• The most probable way of evading Authorities with crypto assets are developing an e-wallet for own illicit purpose. Since the cost of developing an e-wallet is relatively low in considerable cost to hiding, what can governments do to flush out these ants from the vast networks of tunnels?
• With Serialized Coded Crypto Assets, it doesn’t matter if servers of Exchanges or Wallets are destroyed. The Serial Codes of each token/coin enables governments of every participating country to track both origin and destination by identifying records of each token/coin in wallet address. It can disappear into a cold wallet but emerging some place later yet Authorities can still detail which particular token/coin has at one moment of time been into which wallet, on what day and date.
• If the battle of financial crimes can be resolved with a simple Serialize Coded Crypto Asset, the eradication of corruptions, money laundering, unlawful proceeds and terrorism financing will be made possible. Criminals can no longer exploit the genius creation of Sathoshi – Blockchain and Crypto-Currencies.
• Global Security, Anti-Terrorism Financing and Money Laundering could just be excuses granting government agencies the need to have access to financial information in the Monetary System. Nonetheless, it is in the interest of every nation that capital outflow is controlled. Capital Outflow is most frequent when the economy of a country is deteriorating. In the face of an economy meltdown, monetary flow is most needed and yet citizens tend to transfer monies further away illegally from their own country in an act of selfishness. This would not be tolerated by any country. Serial Coded Coin shall prove this attempt futile.
• In most part of Asian Countries, many crypto-currency mining operations are carried out illegally. The legality sits on thin fine line where Authorities can pin only stealing of electricity as a major concern to the respective country. Since most Power Companies belongs to the Country in one way or another, it is financially damaging to Power Producers and Utility Suppliers. Serial Codes can determine if the KRATSCOIN is mined legally or illegally making it difficult for miners or mining farms to mine crypto while avoiding making electricity payments. Will this deterrent disrupt the chain of KRATSCOIN supply? That’s not how Blockchain Tech works. TAXATIONS - WHAT IT MEANS FOR PUBLIC AND GOVERNMENTS: • Taxation cannot be imposed on “Illegal & Unlawful Proceeds” instead confiscation is enforced in many countries. Origins or proceeds of Serialized Coded Crypto Assets can be easily identified by the Serial Codes in-conjunction with the Blockchain. This exercise can evidently proof the legitimacy of the aforesaid token/coin. By “Illegal & Unlawful Proceeds” also refers to crypto coins obtained via illegal mining operations.
• Taxation on Crypto Assets are calculated on profits deriving from the sale/disposal of the crypto Assets. If we are small crypto believers, the amount of taxation rendered by Inland Revenue will be insignificant. Why risk Freedom of Life over Freedom of Small Monies. If we are big crypto believers, taxation on Serialized Coded Coins can be considered added security to your assets protection.
• By adopting Serialized Crypto Assets, declaration is made easily possible via proof of token/coin origin via the Blockchain. If the Authorities can know where our crypto assets come from, the Authorities will know where it will disappear to. It is taxation cum insurance in one tiny sum. This added security with freedom feature will encourage self-declarations of crypto assets to Authorities and Agencies. PRIVACY & ANONIMITY: • Many may be skeptical of their wealth being tracked and monitored. But in this era of technological advance society, everything we touches has our signature. Banks, iPhones, Samsung Mobiles, Google, Facebook, Whatsapp, WeChat, LINE, Viber, Facebook, Properties, Utilities. Almost everything. It is to this fact that there is a need for Privacy Protection Act.
• As explained before, Crypto Currency Exchange KYC procedures is designed to expose the identity of Crypto Assets ownership. The Blockchain is supposed to serve as a transparent information platform. The question of privacy over Serialized Coded Coins does not exist, it does not make Serialized Coded Coins ownership any less private.
• Ownership of wallet addresses shall always remain anonymous while the only way Authorities can get to it is through Wallet Developers by virtue of Global/National Security Threats or by a Court Order as per the Privacy Protection Act. SAFETY & SECURITY (CODED CRYPTO VS FIAT + COMMODITIES): • No human mind can memorize the millions of serial numbers printed on fiat currencies. The records of Serialized Coded Coins will forever be in the Blockchain embedded within each transaction from wallet to wallet.
• Serialized Commodities such as gold can be melted down. Diamonds recrafted. Fiat double printed. But not Serialized Coded Crypto Assets.
• Should an accessory system be added into the KRATSCOIN Blockchain, allowing reports on criminal activity be made within the Blockchain, notifying all ledgers of certain stolen Serial Coded Coins, enabling WARNINGS and forbidding next transaction of that particular Serial Coded Coin, wouldn’t this function enhance protection. A theft deterrent function which can never be achieved with physical gold, diamonds or fiat. KRATSCOIN SUMMARY: • Most crypto currencies have not reach a level of security alert for governments. This could be the only reason why a possible ban has not been discussed. China and India has begun efforts to control or ban crypto currencies in their quest to combat capital outflow, writer’s personal opinion. The EU has stopped Libra from implementation. “A company cannot be allowed Authoring Power for issuance of currencies” quoted the governments. KRATSCOIN is fully decentralized with no ownership nor control by any country, company or individual. Once again, the beauty of Bitcoin decentralization concept prevails.
• “There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar” quoted in google.com.
• Most countries have “Foreign Reserves” as backing to a country’s fiat currency. It is a mean of “back up” attempt should all factors above mentioned leading to the value of their currencies collapse. Then what will happen if the Country of the Foreign Reserves collapse?
• Serial Coded KRATSCOIN belongs to no one, no country, no company and therefore theoretically shall not be effected by politics, war or global economy meltdown yet everyone, every country and every government is able to benefit from KRATSCOIN.
"Quoted by" https://lintangnews.com/ada-kratscoin-ini-bedanya-dengan-bitcoin/ https://0xzx.com/201910111244312902.html https://news.tokocrypto.com/tag/kratscoin-ktc/ http://bbs.tianya.cn/post-lookout-836105-1.shtml https://zhuanlan.zhihu.com/p/84844615
submitted by xia112 to u/xia112 [link] [comments]

DIFFERENCE BETWEEN FIAT AND CRYPTO

• Fiat Currency is backed by Governments/Countries itself. What determines the value of a currency is the economic health, demand, growth, political stability to name a few, of the respective country. Before 1930, most fiat currencies were backed by gold and silver.
• Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government - quoted in google.com.
• What backs crypto value is purely supply and demand. The demand creation of a crypto is its sole objective. To create demand, the crypto has to have a purpose. And most purpose commonly promoted is utility. The number of ways you can utilize the said crypto. The more utilization factors the more demand there is for it.
• There are other ways to substantiate value of a crypto and that is to back the crypto with a 1 to 1 ratio in assets or in USD. Then the question is, how 3,000 crypto currencies in circulation be monetary eco sustainable? Can anyone imagine walking into McDonald and view a chart of 3,000 different pricing? Which also means the crypto is a payment gateway pegging against USD instead of bearing any true characteristic of a currency.
• A country’s currency is in its own legit form of legal tender, the only currency acceptable under financial sovereigns of a country. People in the world must be made to understand that. Retailers in Thailand cannot put up products price tags in EUROS/USD, it is illegal. It has to be in Thai Baht.
• It is hardly imaginable for everyone in the world to retail with a Crypto-Currencies at a rate of 7 transactions per second. When mining nodes are reduced due to non-performing mining ratio, mining blocks in the Blockchain will significantly be limited too, rendering delays in transactions while usage increases.
• In time to come, as trends of crypto picks up, Thailand can issue BAHT COIN or UK the STERLING COIN, exactly what China wishes to do. Digital RMB, but would such crypto currencies be fully decentralized? We all have our answers. Absurd to even think of producing Thai Baht, Pound Sterling or Chinese Yuan at the cost of electricity. It is currencies in digital forms.
KRATSCOIN is not meant for that purpose. In some opinion, apart from utilization, a crypto can be for safekeeping, an entity for keeping money while allowing easy liquidation, at a click of a mobile button, not to mention sending or transferring without the trouble of going to banks, which was the original purpose of Bitcoin to begin with. Therefore, KRATSCOIN would be better termed as Crypto Commodity, sharing similarities as Metal Commodities.
An individual cannot use gold to make a purchase, neither can one eat gold. It can only be kept or invest in for appreciative value over time. Gold is being exampled for its scarcity which reasons for its higher value over its cousin, silver or bronze. Who or what determines the value of gold? Just like any other crypto, demand by humanity. As in all other commodities, it must also be placed in checks by governments. To put in checks, serial numbers are introduced to protect a country’s commodities outflows or illegal exports.
Humanity made Bitcoin a reality. Acceptance by the majority members of the public made Bitcoin to what is it today with the trust they entrusted it with, or is the majority public hopping on the band wagon to make a few quick extra bucks? Whatever the reasons are, the characteristics of Crypto Currencies are only matched by the behavior of Commodities.
SERIALIZED COINS - WHAT IT MEANS FOR THE PUBLIC: Every currency has its own remarkable name, design and colors. Dollars, Euros, Pound, Tugrik, Peso, Rupee, Rupiah, Dina, Ringgit, Baht and the list carries on. One thing every currency have in common - Serial Numbers.
In any crime, investigators will firstly establish motives and mode of operation, both of which are very likely related to money. So following the money trial is a natural thing to do for investigators/authorities and it has become a common practice. Crimes require funding ie robbers need money to buy guns to carry out its robbing activities. Cutting off financing will reduce criminal activities. That’s the approach governments of the WORLD have adopted for crime fighting.
Perhaps people do not realize this while most do not feel the pinch. Humanity tends to take life for granted until apocalypse happens. Take a minute to visualize the tallest tower in your homeland collapse into a pile of dust with thousands of casualties effecting everything else that comes to mind. Imagine a family member, just 1 is enough, is among those casualties.
• Imagine if monetary system is not in place and drug dealers, among many, roam the earth freely distributing what can be death threatening substance to your kids. What if you are mugged of your inheritance [items left to you by your father] that is beyond retrieval? As for crypto enthusiast, what if your wallet gets hacked as even the mighty Pentagon gets hacked. All the above can go away if the crypto system leaves a trail for hound dogs to sniff out. Money Trail or Serial Codes Trail to be exact.
• Citizens rely on governments and their countries to do what is best for them to lead their daily lives, flourish, advance, improve and strive but at the same time, citizens want to take away the single most important thing deemed crucial in the hierarchy of humanity from governments with additional boastful remarks such as “I transferred $400 million from one corner of the earth to another corner in a single transaction and no governments can do anything about it”.
• In-short, to boast unregulated financial movement is to arrogantly promote crime without realizing it while challenging the world’s monetary authority. Oldest advice in the book teaches us never to pick a fight we can’t win.
• Serial Coded Coins does not take away the financial movement freedom nor does it take away your privacy. It merely provides Authorities the necessary means needed for crime prevention and fighting. It only re-inforce security and safety. SERIALIZED COINS - WHAT IT MEANS FOR GOVERNMENTS: • Governments are relentlessly trying to find new ways to keep track of crypto transactions. Crypto Currency Exchanges, just like all other Financial Institutions and Banks, are required to practice the most stringent Know Your Customer (widely known as KYC) process. The KYC is designed to provide governing agencies and authorities with information pertaining to crypto ownerships.
• But no governments can have information on Peer-to-Peer (also known as P2P) transactions unless the government in question launch a full scale Federal Investigation on certain suspected individuals seeking Wallet Developers to unveil the ownership of certain wallet addresses. Do not forget, National and Global Security trumps Privacy Act. Refusal to co-operate under the pretext of Global or National Security will only result in an out-right ban, which is exactly what happened to Blackberry.
• Questions to Governments – What if Wallet Developers or Crypto Exchanges shuts down which can happen for various reasons be it foul-play, sinister or forcefully under threat? What if servers are damaged and ruined? An EMP strike or a simple magnet can make it happen. Information/identities of suspected customers of such addresses shall be lost forever and along with it the Money Trial.
• The most probable way of evading Authorities with crypto assets are developing an e-wallet for own illicit purpose. Since the cost of developing an e-wallet is relatively low in considerable cost to hiding, what can governments do to flush out these ants from the vast networks of tunnels?
• With Serialized Coded Crypto Assets, it doesn’t matter if servers of Exchanges or Wallets are destroyed. The Serial Codes of each token/coin enables governments of every participating country to track both origin and destination by identifying records of each token/coin in wallet address. It can disappear into a cold wallet but emerging some place later yet Authorities can still detail which particular token/coin has at one moment of time been into which wallet, on what day and date.
• If the battle of financial crimes can be resolved with a simple Serialize Coded Crypto Asset, the eradication of corruptions, money laundering, unlawful proceeds and terrorism financing will be made possible. Criminals can no longer exploit the genius creation of Sathoshi – Blockchain and Crypto-Currencies.
• Global Security, Anti-Terrorism Financing and Money Laundering could just be excuses granting government agencies the need to have access to financial information in the Monetary System. Nonetheless, it is in the interest of every nation that capital outflow is controlled. Capital Outflow is most frequent when the economy of a country is deteriorating. In the face of an economy meltdown, monetary flow is most needed and yet citizens tend to transfer monies further away illegally from their own country in an act of selfishness. This would not be tolerated by any country. Serial Coded Coin shall prove this attempt futile.
• In most part of Asian Countries, many crypto-currency mining operations are carried out illegally. The legality sits on thin fine line where Authorities can pin only stealing of electricity as a major concern to the respective country. Since most Power Companies belongs to the Country in one way or another, it is financially damaging to Power Producers and Utility Suppliers. Serial Codes can determine if the KRATSCOIN is mined legally or illegally making it difficult for miners or mining farms to mine crypto while avoiding making electricity payments. Will this deterrent disrupt the chain of KRATSCOIN supply? That’s not how Blockchain Tech works. TAXATIONS - WHAT IT MEANS FOR PUBLIC AND GOVERNMENTS: • Taxation cannot be imposed on “Illegal & Unlawful Proceeds” instead confiscation is enforced in many countries. Origins or proceeds of Serialized Coded Crypto Assets can be easily identified by the Serial Codes in-conjunction with the Blockchain. This exercise can evidently proof the legitimacy of the aforesaid token/coin. By “Illegal & Unlawful Proceeds” also refers to crypto coins obtained via illegal mining operations.
• Taxation on Crypto Assets are calculated on profits deriving from the sale/disposal of the crypto Assets. If we are small crypto believers, the amount of taxation rendered by Inland Revenue will be insignificant. Why risk Freedom of Life over Freedom of Small Monies. If we are big crypto believers, taxation on Serialized Coded Coins can be considered added security to your assets protection.
• By adopting Serialized Crypto Assets, declaration is made easily possible via proof of token/coin origin via the Blockchain. If the Authorities can know where our crypto assets come from, the Authorities will know where it will disappear to. It is taxation cum insurance in one tiny sum. This added security with freedom feature will encourage self-declarations of crypto assets to Authorities and Agencies. PRIVACY & ANONIMITY: • Many may be skeptical of their wealth being tracked and monitored. But in this era of technological advance society, everything we touches has our signature. Banks, iPhones, Samsung Mobiles, Google, Facebook, Whatsapp, WeChat, LINE, Viber, Facebook, Properties, Utilities. Almost everything. It is to this fact that there is a need for Privacy Protection Act.
• As explained before, Crypto Currency Exchange KYC procedures is designed to expose the identity of Crypto Assets ownership. The Blockchain is supposed to serve as a transparent information platform. The question of privacy over Serialized Coded Coins does not exist, it does not make Serialized Coded Coins ownership any less private.
• Ownership of wallet addresses shall always remain anonymous while the only way Authorities can get to it is through Wallet Developers by virtue of Global/National Security Threats or by a Court Order as per the Privacy Protection Act. SAFETY & SECURITY (CODED CRYPTO VS FIAT + COMMODITIES): • No human mind can memorize the millions of serial numbers printed on fiat currencies. The records of Serialized Coded Coins will forever be in the Blockchain embedded within each transaction from wallet to wallet.
• Serialized Commodities such as gold can be melted down. Diamonds recrafted. Fiat double printed. But not Serialized Coded Crypto Assets.
• Should an accessory system be added into the KRATSCOIN Blockchain, allowing reports on criminal activity be made within the Blockchain, notifying all ledgers of certain stolen Serial Coded Coins, enabling WARNINGS and forbidding next transaction of that particular Serial Coded Coin, wouldn’t this function enhance protection. A theft deterrent function which can never be achieved with physical gold, diamonds or fiat. KRATSCOIN SUMMARY: • Most crypto currencies have not reach a level of security alert for governments. This could be the only reason why a possible ban has not been discussed. China and India has begun efforts to control or ban crypto currencies in their quest to combat capital outflow, writer’s personal opinion. The EU has stopped Libra from implementation. “A company cannot be allowed Authoring Power for issuance of currencies” quoted the governments. KRATSCOIN is fully decentralized with no ownership nor control by any country, company or individual. Once again, the beauty of Bitcoin decentralization concept prevails.
• “There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar” quoted in google.com.
• Most countries have “Foreign Reserves” as backing to a country’s fiat currency. It is a mean of “back up” attempt should all factors above mentioned leading to the value of their currencies collapse. Then what will happen if the Country of the Foreign Reserves collapse?
• Serial Coded KRATSCOIN belongs to no one, no country, no company and therefore theoretically shall not be effected by politics, war or global economy meltdown yet everyone, every country and every government is able to benefit from KRATSCOIN.
"Quoted by" https://lintangnews.com/ada-kratscoin-ini-bedanya-dengan-bitcoin/ https://0xzx.com/201910111244312902.html https://news.tokocrypto.com/tag/kratscoin-ktc/ http://bbs.tianya.cn/post-lookout-836105-1.shtml https://zhuanlan.zhihu.com/p/84844615
submitted by xia112 to btc [link] [comments]

Withdrawing crypto profits in the UK - a short guide

I have never attempted a post as long as this so apologies if it will end up a little long-winded. If you want to skip a general pre-amble and jump right into the actual informational bit, please scroll until guide section.
I have been investing in cryptocurrencies for a little over a year now, with some good results. I read on a daily basis a ton of news re this space, at some point I knew every ICO there was and their potential, I perused through numerous whitepapers - I did the lot. I got to a comfortable position of being registered on various exchanges, with a relatively broad portfolio. I contacted a few people re taxation, and while it seems simple (CTG on the profits) you can still find a chartered accountant to help you with that (google even lists a few crypto-accountants).
GREAT! Seems like all the pieces are in place... Well, there is one additional step that some people forget about and kind-of take is a given, namely withdrawals of FIAT (GBP/EUR etc.). We live in the world where everything is driven by hard cash, all taxes are done in denomination of some normal currency, and if you exclude people willing to sell you sth for cryptos then in order to actually earn anything on our investment you have to withdraw your profits in FIAT and then pay (or if you want to live an adventerous life, not) any taxes on your gains.
Well, what is the problem? You have a bank account, right? You get the money in as with any other form of revenue (salary, sell of property, sell of a business), right? Not exactly...
GUIDE
This guide is written with intention to give an overview of possible ways to withdraw crypto profits for UK citizens/residents. It is also assuming that there might be substantial gains to be withdrawn, which complicate things further.
In any of the underlying case, be aware, even if you think otherwise, that you monitored and tracked. We all live in a fully police invigilated country, where no larger sum of money will get past HMRC. And if you are dealing with bitcoins, you are by definition someone on the wrong side of the law according to most banks.
ASSUMPTION: You only have GBP account - limited set of options
  1. Coinfloor: GBP to your GBP account
By far the easiest option, as far as I know coinfloor is the only exchange that offers GBP transfers. The problem is it is a small exchange, 2M BTC turnover a day, which is not great. Also they do not support ANY other crypto or FIAT.
SO if you have a large portfolio and want to sell 1M of all sortos of assets, you will first need to convert to BTC, do not dump anything extensively but it is doable.
  1. Coinbase: GBP to GBP account
Not yet supported, but I have high hopes they will revive this some time later this year.
  1. Coinbase/Kraken: EUR to GBP account
I think this is a terrible idea. Depending on the UK bank, certain fees will be charged for processing transactions. But the worst thing is the exchange rate they use - around 3-4% off mid-market rate!! Now, when you are sending 1000 eur that might be bearable, certainly not for 100k
ASSUMPTION: Multi-currency account is possible
World is your oyster! Coinbase/Kraken/Gemini - All offer EUUSD liquidity beyon any reasonable need, even if you need to sell 20M USD worth of crypto. All require KYC but it is all available widely to UK customers.
However... You need to have a currency account, which often poses more problems than you think. HBSBC and Barclays is quite flexible and offer currency accounts together with standard GBP account (Lloyds/Halifax won't to make matters wors). BUT, as soon as you mention crypto, you might get your account blocked, or any transfer over 1000 pounds will raise red flags. THis is a big one for me, as I am not entirely sure how to get over this hoop, as obvioulsy you want to be clean and be transparent, but even with such attitude you will still be branded as "money launderer".
I am in process of setting up that account myself (I have been a LLoyds client for a long time) but unless coinfloor works or coinbase, I need another account to avoid cstly fees and exchange rates. If anyone has any experience, your feedback is greatly appreciated.
ASSUMPTION: Revolut solves your problems
It does not! Well... it might. If you open EUR account with them, you can transfer 25k a year. Then you can convert that to GBP, with little fees and then transfer that out to GBP account. That is nowhere near my limits, but if you are in this category, and do not want to bother setting up a multi-currency account, this is your best bet.
PLEASE NOTE: Kraken does not accept this transfer, neither does Gemini, so coinbase is the only real exchange you can consider.
MORAL OF THE STORY
Seems like the unexpected problems often seem to be the most challenging ones. Withdrawing across multiple exchanges, which do not accept pounds and involve heavy KYC can be a problem, but hopefully this will at least be an eye-opener to some people and maybe will spark a larger discussion, so that we can all benefit from.
tl;dr - Be careful when you withdraw any funds from cryptos in the UK - it might not be as simple as you envision it to be!
submitted by bober02 to BitcoinUK [link] [comments]

World History Timeline of Events Leading up to Bitcoin - In the Making

A (live/editable) timeline of historical events directly or indirectly related to the creation of Bitcoin and Cryptocurrencies
*still workin' on this so check back later and more will be added, if you have any suggested dates/events feel free to lemme know...
This timeline includes dates pertaining to:
Ancient Bartering – first recorded in Egypt (resources, services...) – doesn’t scale
Tally sticks were used, making notches in bones or wood, as a form of money of account
9000-6000 BC Livestock considered the first form of currency
c3200 BC Clay tablets used in Uruk (Iraq) for accounting (believed to be the earliest form of writing)
3000 BC Grain is used as a currency, measured out in Shekels
3000 BC Banking developed in Mesopotamia
3000 BC? Punches used to stamp symbols on coins were a precursor to the printing press and modern coins
? BC Since ancient Persia and all the way up until the invention and expansion of the telegraph Homing Pigeons were used to carry messages
2000 BC Merchants in Assyria, India and Sumeria lent grain to farmers and traders as a precursor to banks
1700 BC In Babylon at the time of Hammurabi, in the 18th century BC, there are records of loans made by the priests of the temple.
1200 BC Shell money first used in China
1000-600 BC Crude metal coins first appear in China
640 BC Precious metal coins – Gold & Silver first used in ancient Lydia and coastal Greek cities featuring face to face heads of a bull and a lion – first official minted currency made from electrum, a mixture of gold and silver
600-500 BC Atbash Cipher
A substitution Cipher used by ancient Hebrew scholars mapping the alphabet in reverse, for example, in English an A would be a Z, B a Y etc.
400 BC Skytale used by Sparta
474 BC Hundreds of gold coins from this era were discovered in Rome in 2018
350 BC Greek hydraulic semaphore system, an optical communication system developed by Aeneas Tacticus.
c200 BC Polybius Square
??? Wealthy stored coins in temples, where priests also lent them out
??? Rome was the first to create banking institutions apart from temples
118 BC First banknote in the form of 1 foot sq pieces of white deerskin
100-1 AD Caesar Cipher
193 Aureus, a gold coin of ancient Rome, minted by Septimius Severus
324 Solidus, pure gold coin, minted under Constantine’s rule, lasted until the late 8th century
600s Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty, 960–1279
c757–796 Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa
806 First paper banknotes used in China but isn’t widely accepted in China until 960
1024 The first series of standard government notes were issued in 1024 with denominations like 1 guàn (貫, or 700 wén), 1 mín (緡, or 1000 wén), up to 10 guàn. In 1039 only banknotes of 5 guàn and 10 guàn were issued, and in 1068 a denomination of 1 guàn was introduced which became forty percent of all circulating Jiaozi banknotes.
1040 The first movable type printer was invented in China and made of porcelain
? Some of the earliest forms of long distance communication were drums used by Native Africans and smoke signals used by Native Americans and Chinese
1088 Movable type in Song Dynasty China
1120 By the 1120s the central government officially stepped in and produced their own state-issued paper money (using woodblock printing)
1150 The Knights Templar issued bank notes to pilgrims. Pilgrims deposited their valuables with a local Templar preceptory before embarking, received a document indicating the value of their deposit, then used that document upon arrival in the Holy Land to retrieve their funds in an amount of treasure of equal value.
1200s-1300s During the 13th century bankers from north Italy, collectively known as Lombards, gradually replace the Jews in their traditional role as money-lenders to the rich and powerful. – Florence, Venice and Genoa - The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many other parts of Europe
1200 By the time Marco Polo visited China they’d move from coins to paper money, who introduced the concept to Europe. An inscription warned, "All counterfeiters will be decapitated." Before the use of paper, the Chinese used coins that were circular, with a rectangular hole in the middle. Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily. To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person. Marco Polo's account of paper money during the Yuan Dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."
1252 Florin minted in Florence, becomes the hard currency of its day helping Florence thrive economically
1340 Double-entry bookkeeping - The clerk keeping the accounts for the Genoese firm of Massari painstakingly fills in the ledger for the year 1340.
1397 Medici Bank established
1450 Johannes Gutenberg builds the printing press – printed words no longer just for the rich
1455 Paper money disappears from China
1466 Polyalphabetic Cipher
1466 Rotating cipher disks – Vatican – greatest crypto invention in 1000 yrs – the first system to challenge frequency analysis
1466 First known mechanical cipher machine
1472 The oldest bank still in existence founded, Banca Monte dei Paschi di Siena, headquartered in Siena, Italy
1494 Double-entry bookkeeping system codified by Luca Pacioli
1535 Wampum, a form of currency used by Native Americans, a string of beads made from clamshells, is first document.
1553 Vigenere Cipher
1557 Phillip II of Spain managed to burden his kingdom with so much debt (as the result of several pointless wars) that he caused the world's first national bankruptcy — as well as the world's second, third and fourth, in rapid succession.
1577 Newspaper in Korea
1586 The Babington Plot
1590 Cabinet Noir was established in France. Its mission was to open, read and reseal letters, and great expertise was developed in the restoration of broken seals. In the knowledge that mail was being opened, correspondents began to develop systems to encrypt and decrypt their letters. The breaking of these codes gave birth to modern systematic scientific code breaking.
1600s Promissory banknotes began in London
1600s By the early 17th century banking begins also to exist in its modern sense - as a commercial service for customers rather than kings. – Late 17th century we see cheques slowly gains acceptance
The total of the money left on deposit by a bank's customers is a large sum, only a fraction of which is usually required for withdrawals. A proportion of the rest can be lent out at interest, bringing profit to the bank. When the customers later come to realize this hidden value of their unused funds, the bank's profit becomes the difference between the rates of interest paid to depositors and demanded from debtors.
The transformation from moneylenders into private banks is a gradual one during the 17th and 18th centuries. In England it is achieved by various families of goldsmiths who early in the period accept money on deposit purely for safe-keeping. Then they begin to lend some of it out. Finally, by the 18th century, they make banking their business in place of their original craft as goldsmiths.
1605 Newspaper in Straussburg
c1627 Great Cipher
1637 Wampum is declared as legal tender in the U.S. (where we got the slang word “clams” for money)
1656 Johan Palmstruch establishes the Stockholm Banco
1661 Paper Currency reappears in Europe, soon became common - The goldsmith-bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor
1661 Palmstruch issues credit notes which can be exchanged, on presentation to his bank, for a stated number of silver coins
1666 Stockholms Banco, the predecessor to the Central Bank of Sweden issues the first paper money in Europe. Soon went bankrupt for printing too much money.
1667 He issues more notes than his bank can afford to redeem with silver and winds up in disgrace, facing a death penalty (commuted to imprisonment) for fraud.
1668 Bank of Sweden – today the 2nd oldest surviving bank
1694 First Central Bank established in the UK was the first bank to initiate the permanent issue of banknotes
Served as model for most modern central banks.
The modern banknote rests on the assumption that money is determined by a social and legal consensus. A gold coin's value is simply a reflection of the supply and demand mechanism of a society exchanging goods in a free market, as opposed to stemming from any intrinsic property of the metal. By the late 17th century, this new conceptual outlook helped to stimulate the issue of banknotes.
1700s Throughout the commercially energetic 18th century there are frequent further experiments with bank notes - deriving from a recognized need to expand the currency supply beyond the availability of precious metals.
1710 Physiocracy
1712 First commercial steam engine
1717 Master of the Royal Mint Sir Isaac Newton established a new mint ratio between silver and gold that had the effect of driving silver out of circulation (bimetalism) and putting Britain on a gold standard.
1735 Classical Economics – markets regulate themselves when free of intervention
1744 Mayer Amschel Rothschild, Founder of the Rothschild Banking Empire, is Born in Frankfurt, Germany
Mayer Amschel Rothschild extended his banking empire across Europe by carefully placing his five sons in key positions. They set up banks in Frankfurt, Vienna, London, Naples, and Paris. By the mid 1800’s they dominated the banking industry, lending to governments around the world and people such as the Vanderbilts, Carnegies, and Cecil Rhodes.
1745 There was a gradual move toward the issuance of fixed denomination notes in England standardized printed notes ranging from £20 to £1,000 were being printed.
1748 First recorded use of the word buck for a dollar, stemming from the Colonial period in America when buck skins were commonly traded
1757 Colonial Scrip Issued in US
1760s Mayer Amschel Rothschild establishes his banking business
1769 First steam powered car
1775-1938 US Diplomatic Codes & Ciphers by Ralph E Weber used – problems were security and distribution
1776 American Independence
1776 Adam Smith’s Invisible Hand theory helped bankers and money-lenders limit government interference in the banking sector
1781 The Bank of North America was a private bank first adopted created the US Nation's first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the country's first initial public offering. It lasted less than ten years.
1783 First steamboat
1791 Congress Creates the First US Bank – A Private Company, Partly Owned by Foreigners – to Handle the Financial Needs of the New Central Government. First Bank of the United States, a National bank, chartered for a term of twenty years, it was not renewed in 1811.
Previously, the 13 states had their own banks, currencies and financial institutions, which had an average lifespan of about 5 years.
1792 First optical telegraph invented where towers with telescopes were dispersed across France 12-25 km apart, relaying signals according to positions of arms extended from the top of the towers.
1795 Thomas Jefferson invents the Jefferson Disk Cipher or Wheel Cipher
1797 to 1821 Restriction Period by England of trading banknotes for silver during Napoleonic Wars
1797 Currency Crisis
Although the Bank was originally a private institution, by the end of the 18th century it was increasingly being regarded as a public authority with civic responsibility toward the upkeep of a healthy financial system.
1799 First paper machine
1800 Banque de France – France’s central bank opens to try to improve financing of the war
1800 Invention of the battery
1801 Rotchschild Dynasty begins in Frankfurt, Holy Roman Empire – established international banking family through his 5 sons who established themselves in London, Paris, Frankfurt, Vienna, and Naples
1804 Steam locomotive
1807 Internal combustion engine and automobile
1807 Robert Fulton expands water transportation and trade with the workable steamboat.
1809 Telegraphy
1811 First powered printing press, also first to use a cylinder
1816 The Privately Owned Second Bank of the US was Chartered – It Served as the Main Depository for Government Revenue, Making it a Highly Profitable Bank – charter not renewed in 1836
1816 The first working telegraph was built using static electricity
1816 Gold becomes the official standard of value in England
1820 Industrial Revolution
c1820 Neoclassical Economics
1821 British gov introduces the gold standard - With governments issuing the bank notes, the inherent danger is no longer bankruptcy but inflation.
1822 Charles Babbage, considered the "father of the computer", begins building the first programmable mechanical computer.
1832 Andrew Jackson Campaigns Against the 2nd Bank of the US and Vetoes Bank Charter Renewal
Andrew Jackson was skeptical of the central banking system and believed it gave too few men too much power and caused inflation. He was also a proponent of gold and silver and an outspoken opponent of the 2nd National Bank. The Charter expired in 1836.
1833 President Jackson Issues Executive Order to Stop Depositing Government Funds Into Bank of US
By September 1833, government funds were being deposited into state chartered banks.
1833-1837 Manufactured “boom” created by central bankers – money supply Increases 84%, Spurred by the 2nd Bank of the US
The total money supply rose from $150 million to $267 million
1835 Jackson Escapes Assassination. Assassin misfired twice.
1837-1862 The “Free Banking Era” there was no formal central bank in the US, and banks issued their own notes again
1838 First Telegram sent using Morse Code across 3 km, in 1844 he sent a message across 71 km from Washington DC to Baltimore.
1843 Ada Lovelace published the first algorithm for computing
1844 Modern central bank of England established - meaning only the central bank of England could issue banknotes – prior to that commercial banks could issue their own and were the primary form of currency throughout England
the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt.
1848 Communist Manifesto
1850 The first undersea telegraphic communications cable connected France in England after latex produced from the sap of the Palaquium gutta tree in 1845 was proposed as insulation for the underwater cables.
1852 Many countries in Europe build telegram networks, however post remained the primary means of communication to distant countries.
1855 In England fully printed notes that did not require the name of the payee and the cashier's signature first appeared
1855 The printing telegraph made it possible for a machine with 26 alphabetic keys to print the messages automatically and was soon adopted worldwide.
1856 Belgian engineer Charles Bourseul proposed telephony
1856 The Atlantic Telegraph company was formed in London to stretch a commercial telegraph cable across the Atlantic Ocean, completed in 1866.
1860 The Pony Express was founded, able to deliver mail of wealthy individuals or government officials from coast to coast in 10 days.
1861 The East coast was connected to the West when Western Union completed the transcontinental telegraph line, putting an end to unprofitable The Pony Express.
1862-1863 First US banknotes - Lincoln Over Rules Debt-Based Money and Issues Greenbacks to Fund Civil War
Bankers would only lend the government money under certain conditions and at high interest rates, so Lincoln issued his own currency – “greenbacks” – through the US Treasury, and made them legal tender. His soldiers went on to win the war, followed by great economic expansion.
1863 to 1932 “National Banking Era” Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932
1864 Friedrich Wilhelm Raiffeisen founded the first rural credit union in Heddesdorf (now part of Neuwied) in Germany. By the time of Raiffeisen's death in 1888, credit unions had spread to Italy, France, the Netherlands, England, Austria, and other nations
1870 Long-distance telegraph lines connected Britain and India.
c1871 Marginalism - The doctrines of marginalism and the Marginal Revolution are often interpreted as a response to the rise of the worker's movement, Marxian economics and the earlier (Ricardian) socialist theories of the exploitation of labour.
1871 Carl Menger’s Principles of Economics – Austrian School
1872 Marx’s Das Capital
1872 Australia becomes the first nation to be connected to the rest of the world via submarine telegraph cables.
1876 Alexander Graham Bell patented the telephone, first called the electric speech machine – revolutionized communication
1877 Thomas Edison – Phonograph
1878 Western Union, the leading telegraph provider of the U.S., begins to lose out to the telephone technology of the National Bell Telephone Company.
1881 President James Garfield, Staunch Proponent of “Honest Money” Backed by Gold and Silver, was Assassinated
Garfield opposed fiat currency (money that was not backed by any physical object). He had the second shortest Presidency in history.
1882 First description of the one-time pad
1886 First gas powered car
1888 Ballpoint pen
1892 Cinematograph
1895 System of wireless communication using radio waves
1896 First successful intercontinental telegram
1898 Polyethylene
1899 Nickel-cadmium battery
1907 Banking Panic of 1907
The New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. This banking panic spurred debate for banking reform. JP Morgan and others gathered to create an image of concern and stability in the face of the panic, which eventually led to the formation of the Federal Reserve. The founders of the Federal Reserve pretended like the bankers were opposed to the idea of its formation in order to mislead the public into believing that the Federal Reserve would help to regulate bankers when in fact it really gave even more power to private bankers, but in a less transparent way.
1908 St Mary’s Bank – first credit union in US
1908 JP Morgan Associate and Rockefeller Relative Nelson Aldrich Heads New National Monetary Commission
Senate Republican leader, Nelson Aldrich, heads the new National Monetary Commission that was created to study the cause of the banking panic. Aldrich had close ties with J.P. Morgan and his daughter married John D. Rockefeller.
1910 Bankers Meet Secretly on Jekyll Island to Draft Federal Reserve Banking Legislation
Over the course of a week, some of the nation’s most powerful bankers met secretly off the coast of Georgia, drafting a proposal for a private Central Banking system.
1913 Federal Reserve Act Passed
Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today, originally with gold backed Federal Reserve Notes. It was based on the Aldrich plan drafted on Jekyll Island and gave private bankers supreme authority over the economy. They are now able to create money out of nothing (and loan it out at interest), make decisions without government approval, and control the amount of money in circulation.
1913 Income tax established -16th Amendment Ratified
Taxes ensured that citizens would cover the payment of debt due to the Central Bank, the Federal Reserve, which was also created in 1913.The 16th Amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
1914 November, Federal Reserve Banks Open
JP Morgan and Co. Profits from Financing both sides of War and Purchasing Weapons
J.P. Morgan and Co. made a deal with the Bank of England to give them a monopoly on underwriting war bonds for the UK and France. They also invested in the suppliers of war equipment to Britain and France.
1914 WWI
1917 Teletype cipher
1917 The one-time pad
1917 Zimmerman Telegram intercepted and decoded by Room 40, the cryptanalysis department of the British Military during WWI.
1918 GB returns to gold standard post-war but it didn’t work out
1919 First rotor machine, an electro-mechanical stream ciphering and decrypting machine.
1919 Founding of The Cipher Bureau, Poland’s intelligence and cryptography agency.
1919-1929 The Black Chamber, a forerunner of the NSA, was the first U.S. cryptanalytic organization. Worked with the telegraph company Western Union to illegally acquire foreign communications of foreign embassies and representatives. It was shut down in 1929 as funding was removed after it was deemed unethical to intercept private domestic radio signals.
1920s Department stores, hotel chains and service staions begin offering customers charge cards
1921-1929 The “Roaring 20’s” – The Federal Reserve Floods the Economy with Cash and Credit
From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period.[3] This artificially created another “boom”.
1927 Quartz clock
1928 First experimental Television broadcast in the US.
1929 Federal Reserve Contracts the Money Supply
In 1929, the Federal Reserve began to pull money out of circulation as loans were paid back. They created a “bust” which was inevitable after issuing so much credit in the years before. The Federal Reserve’s actions triggered the banking crisis, which led to the Great Depression.
1929 October 24, “Black Thursday”, Stock Market Crash
The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else.
1930s The Great Depression marked the end of the gold standard
1931 German Enigma machines attained and reconstructed.
1932 Turbo jet engine patented
1933 SEC founded - passed the Glass–Steagall Act, which separated investment banking and commercial banking. This was to avoid more risky investment banking activities from ever again causing commercial bank failures.
1933 FM Radio
1933 Germany begins Telex, a network of teleprinters sending and receiving text based messages. Post WWII Telex networks began to spread around the world.
1936 Austrian engineer Paul Eisler invented Printed circuit board
1936 Beginning of the Keynesian Revolution
1937 Typex, British encryption machines which were upgraded versions of Enigma machines.
1906 Teletypewriters
1927 Founding of highly secret and unofficial Signal Intelligence Service, SIS, the U.S. Army’s codebreaking division.
1937 Made illegal for Americans to own gold
1938 Z1 built by Konrad Zuse is the first freely programmable computer in the world.
1939 WWII – decline of the gold standard which greatly restricted policy making
1939-45 Codetalkers - The Navajo code is the only spoken military code never to have been deciphered - "Were it not for the Navajos, the Marines would never have taken Iwo Jima."—Howard Connor
1940 Modems
1942 Deciphering Japanese coded messages leads to a turning point victory for the U.S. in WWII.
1943 At Bletchley Park, Alan Turing and team build a specialized cipher-breaking machine called Heath Robinson.
1943 Colossus computer built in London to crack the German Lorenz cipher.
1944 Bretton Woods – convenient after the US had most of the gold
1945 Manhattan Project – Atom Bomb
1945 Transatlantic telephone cable
1945 Claude E. Shannon published "A mathematical theory of cryptography", commonly accepted as the starting point for development of modern cryptography.
C1946 Crypto Wars begin and last to this day
1946 Charg-it card created by John C Biggins
1948 Atomic clock
1948 Claude Shannon writes a paper that establishes the mathematical basis of information theory
1949 Info theorist Claude Shannon asks “What does an ideal cipher look like?” – one time pad – what if the keys are not truly random
1950 First credit card released by the Diners Club, able to be used in 20 restaurants in NYC
1951 NSA, National Security Agency founded and creates the KL-7, an off-line rotor encryption machine
1952 First thermonuclear weapon
1953 First videotape recorder
1953 Term “Hash” first used meaning to “chop” or “make a mess” out of something
1954 Atomic Energy Act (no mention of crypto)
1957 The NSA begins producing ROMOLUS encryption machines, soon to be used by NATO
1957 First PC – IBM
1957 First Satellite – Sputnik 1
1958 Western Union begins building a nationwide Telex network in the U.S.
1960s Machine readable codes were added to the bottom of cheques in MICR format, which speeded up the clearing and sorting process
1960s Financial organizations were beginning to require strong commercial encryption on the rapidly growing field of wired money transfer.
1961 Electronic clock
1963 June 4, Kennedy Issued an Executive Order (11110) that Authorized the US Treasury to Issue Silver Certificates, Threatening the Federal Reserve’s Monopoly on Money
This government issued currency would bypass the governments need to borrow from bankers at interest.
1963 Electronic calculator
1963 Nov. 22, Kennedy Assassinated
1963 Johnson Reverses Kennedy’s Banking Rule and Restores Power to the Federal Reserve
1964 8-Track
1964 LAN, Local Area Networks adapters
1965 Moore’s Law by CEO of Intel Gordon Moore observes that the number of components per integrated circuit doubles every year, and projected this rate of growth would continue for at least another decade. In 1975 he revised it to every two years.
1967 First ATM installed at Barclay’s Bank in London
1968 Cassette Player introduced
1969 First connections of ARPANET, predecessor of the internet, are made. started – SF, SB, UCLA, Utah (now Darpa) – made to stay ahead of the Soviets – there were other networks being built around the world but it was very hard to connect them – CERN in Europe
1970s Stagflation – unemployment + inflation, which Keynesian theory could not explain
1970s Business/commercial applications for Crypto emerge – prior to this time it was militarily used – ATMs 1st got people thinking about commercial applications of cryptography – data being sent over telephone lines
1970s The public developments of the 1970s broke the near monopoly on high quality cryptography held by government organizations.
Use of checks increased in 70s – bringing about ACH
One way functions...
A few companies began selling access to private networks – but weren’t allowed to connect to the internet – business and universities using Arpanet had no commercial traffic – internet was used for research, not for commerce or advertising
1970 Railroads threatened by the growing popularity of air travel. Penn Central Railroad declares bankruptcy resulting in a $3.2 billion bailout
1970 Conjugate coding used in an attempt to design “money physically impossible to counterfeit”
1971 The US officially removes the gold standard
1971 Email invented
1971 Email
1971 First microcomputer on a chip
1971 Lockheed Bailout - $1.4 billion – Lockheed was a major government defense contractor
1972 First programmable word processor
1972 First video game console
1973 SWIFT established
1973 Ethernet invented, standardized in ‘83
1973 Mobile phone
1973 First commercial GUI – Xerox Alto
1973 First touchscreen
1973 Emails made up more than ¾ of ARPANET’s packets – people had to keep a map of the network by their desk – so DNS was created
1974 A protocol for packet network intercommunication – TCP/IP – Cerf and Kahn
1974 Franklin National Bank Bailout - $1.5 billion (valued at that time) - At the time, it was the largest bank failure in US history
1975 New York City Bailout - $9.4 billion – NYC was overextended
1975 W DES - meant that commercial uses of high quality encryption would become common, and serious problems of export control began to arise.
1975 DES, Data Encryption Standard developed at IBM, seeking to develop secure electronic communications for banks and large financial organizations. DES was the first publicly accessible cipher to be 'blessed' by a national agency such as the NSA. Its release stimulated an explosion of public and academic interest in cryptography.
1975 Digital camera
1975 Altair 8800 sparks the microprocessor revolution
1976 Bretton Woods ratified (lasted 30 years) – by 80’s all nations were using floating currencies
1976 New Directions in Cryptography published by Diffie & Hellman – this terrified Fort Meade – previously this technique was classified, now it’s public
1976 Apple I Computer – Steve Wozniak
1976 Asymmetric key cryptosystem published by Whitfield Diffie and Martin Hellman.
1976 Hellman and Diffie publish New Directions in Cryptography, introducing a radically new method of distributing cryptographic keys, contributing much to solving key distribution one of the fundamental problems of cryptography. It brought about the almost immediate public development of asymmetric key algorithms. - where people can have 2 sets of keys, public and private
1977 Diffie & Hellman receive letter from NSA employee JA Meyer that they’re violating Federal Laws comparable to arms export – this raises the question, “Can the gov prevent academics from publishing on crypto?
1977 DES considered insecure
1977 First handheld electronic game
1977 RSA public key encryption invented
1978 McEliece Cryptosystem invented, first asymmetric encryption algorithm to use randomization in the encryption process
1980s Large data centers began being built to store files and give users a better faster experience – companies rented space from them - Data centers would not only store data but scour it to show people what they might want to see and in some cases, sell data
1980s Reaganomics and Thatcherism
1980 A decade of intense bank failures begins; the FDIC reports that 1,600 were either closed or received financial assistance from 1980 to 1994
1980 Chrysler Bailout – lost over $1 billion due to major hubris on the part of its executives - $1.5 billion one of the largest payouts ever made to a single corporation.
1980 Protocols for public key cryptosystems – Ralph Merkle
1980 Flash memory invented – public in ‘84
1981 “Untraceable Electronic Mail, Return Addresses and Digital Pseudonumns” – Chaum
1981 EFTPOS, Electronic funds transfer at point of sale is created
1981 IBM Personal Computer
1982 “The Ethics of Liberty” Murray Rothbard
1982 Commodore 64
1982 CD
1983 Satellite TV
1983 First built in hard drive
1983 C++
1983 Stereolithography
1983 Blind signatures for untraceable payments
Mid 1980s Use of ATMs becomes more widespread
1984 Continental Illinois National Bank and Trust bailed out due to overly aggressive lending styles and - the bank’s downfall could be directly traced to risk taking and a lack of due diligence on the part of bank officers - $9.5 billion in 2008 money
1984 Macintosh Computer - the first mass-market personal computer that featured a graphical user interface, built-in screen and mouse
1984 CD Rom
1985 Zero-Knowledge Proofs first proposed
1985 300,000 simultaneous telephone conversations over single optical fiber
1985 Elliptic Curve Cryptography
1987 ARPANET had connected over 20k guarded computers by this time
1988 First private networks email servers connected to NSFNET
1988 The Crypto Anarchists Manifesto – Timothy C May
1988 ISDN, Integrated Services Digital Network
1989 Savings & Loan Bailout - After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act - This was a taxpayer bailout of about $200 billion
1989 First commercial emails sent
1989 Digicash - Chaum
1989 Tim Berners-Lee and Robert Cailliau built the prototype system which became the World Wide Web, WWW
1989 First ISPs – companies with no network of their own which connected people to a local network and to the internet - To connect to a network your computer placed a phone call through a modem which translated analog signals to digital signals – dial-up was used to connect computers as phone lines already had an extensive network across the U.S. – but phone lines weren’t designed for high pitched sounds that could change fast to transmit large amounts of data
1990s Cryptowars really heat up...
1990s Some countries started to change their laws to allow "truncation"
1990s Encryption export controls became a matter of public concern with the introduction of the personal computer. Phil Zimmermann's PGP cryptosystem and its distribution on the Internet in 1991 was the first major 'individual level' challenge to controls on export of cryptography. The growth of electronic commerce in the 1990s created additional pressure for reduced restrictions.[3] Shortly afterward, Netscape's SSL technology was widely adopted as a method for protecting credit card transactions using public key cryptography.
1990 NSFNET replaced Arpanet as backbone of the internet with more than 500k users
Early 90s Dial up provided through AOL and Compuserve
People were leery to use credit cards on the internet
1991 How to time-stamp a digital doc - Stornetta
1991 Phil Zimmermann releases the public key encryption program Pretty Good Privacy (PGP) along with its source code, which quickly appears on the Internet. He distributed a freeware version of PGP when he felt threatened by legislation then under consideration by the US Government that would require backdoors to be included in all cryptographic products developed within the US. Expanded the market to include anyone wanting to use cryptography on a personal computer (before only military, governments, large corporations)
1991 WWW (Tim Berners Lee) – made public in ‘93 – flatten the “tree” structure of the internet using hypertext – reason for HTTP//:WWW – LATER HTTPS for more security
1992 Erwise – first Internet Browser w a graphical Interface
1992 Congress passed a law allowing for commercial traffic on NSFNET
1992 Cpherpunks, Eric Hughes, Tim C May and John Gilmore – online privacy and safety from gov – cypherpunks write code so it can be spread and not shut down (in my earlier chapter)
1993 Mosaic – popularized surfing the web ‘til Netscape Navigator in ’94 – whose code was later used in Firefox
1993 A Cypherpunks Manifesto – Eric Hughes
1994 World’s first online cyberbank, First Virtual, opened for business
1994 Bluetooth
1994 First DVD player
1994 Stanford Federal Credit Union becomes the first financial institution to offer online internet banking services to all of its members in October 1994
1994 Internet only used by a few
1994 Cybercash
1994 Secure Sockets Layer (SSL) encryption protocol released by Netscape. Making financial transactions possible.
1994 One of the first online purchases was made, a Pizza Hut pepperoni pizza with mushrooms and extra cheese
1994 Cyphernomicon published – social implication where gov can’t do anything about it
1994-1999 Social Networking – GeoCities (combining creators and users) – had 19M users by ’99 – 3rd most popular after AOL and Yahoo – GeoCities purchased by Yahoo for $3.6B but took a hit after dotcom bubble popped and never recovered – GC shut down in ‘99
1995-2000 Dotcom bubble – Google, Amazon, Facebook: get over 600M visitors/year
1995 DVD
1995 MP3 term coined for MP3 files, the earlier development of which stretches back into the ‘70s, where MP files themselves where developed throughout the ‘90s
1995 NSFNET shut down and handed everything over to the ISPs
1995 NSA publishes the SHA1 hash algorithm as part of its Digital Signature Standard.
1996, 2000 President Bill Clinton signing the Executive order 13026 transferring the commercial encryption from the Munition List to the Commerce Control List. This order permitted the United States Department of Commerce to implement rules that greatly simplified the export of proprietary and open source software containing cryptography, which they did in 2000 - The successful cracking of DES likely helped gather both political and technical support for more advanced encryption in the hands of ordinary citizens - NSA considers AES strong enough to protect information classified at the Top Secret level
1996 e-gold
1997 WAP, Wireless Access Point
1997 NSA researchers published how to mint e cash
1997 Adam Back – HashCash – used PoW – coins could only be used once
1997 Nick Szabo – smart contracts “Formalizing and Securing Relationships on Public Networks”
1998 OSS, Open-source software Initiative Founded
1998 Wei Dai – B-money – decentralized database to record txs
1998 Bitgold
1998 First backdoor created by hackers from Cult of the Dead Cow
1998 Musk and Thiel founded PayPal
1998 Nick Szabo says crypto can protect land titles even if thugs take it by force – said it could be done with a timestamped database
1999 Much of the Glass-Steagal Act repealed - this saw US retail banks embark on big rounds of mergers and acquisitions and also engage in investment banking activities.
1999 Milton Friedman says, “I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that's missing, but that will soon be developed, is a reliable e-cash - a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.”
1999 European banks began offering mobile banking with the first smartphones
1999 The Financial Services Modernization Act Allows Banks to Grow Even Larger
Many economists and politicians have recognized that this legislation played a key part in the subprime mortgage crisis of 2007.
1999-2001 Napster, P2P file sharing – was one of the fastest growing businesses in history – bankrupt for paying musicians for copyright infringement

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