Lifeboat Foundation News Blog: Bitcoin

The Lifeboat Foundation Is Recruiting Members For Its Bitcoin and Digital Currency New Money Systems Board Which Already Has Over 100 Members

The Lifeboat Foundation Is Recruiting Members For Its Bitcoin and Digital Currency New Money Systems Board Which Already Has Over 100 Members submitted by Itbtc to Bitcoin [link] [comments]

Clear link between Micheal Patryn and Omar Dhanani

Notice Micheal Patryn and Nazmin Dhanani are listed as officers in the company MPD Advertising: https://www.companiesofcanada.com/company/726420-8/mpd-advertising-inc

Also Intraday56 Explained it well here https://www.reddit.com/BitcoinCA/comments/7nt7ys/question_is_quadrigacx_legit_with_all_the/ds4ihco (copied and pasted for your convenience):
"Michael Patryn is one of the founders of Quadrigacx. He is part of a criminal mafia mob and has been to jail before for carding theft, ID theft and ponzi schemes. His real name is Omar Dhanani. Here's an article from coindesk that names Patryn as the cofounder of QuadrigaCx:
https://www.coindesk.com/bitcoin-exchange-quadriga-public-reverse-takeover
Omar Dhanani aka Michael Patryn was one of 6 men arrested for internet ID theft and credit card conspiracy fraud back in 2005. They were operating Shadowcrew.com, a web mob of highly organized criminals. For more info google ShadowCrew.
https://www.justice.gov/archive/opa/p2005/Novembe05_crm_619.html
At the time ShadowCrew was busted by the US Secret Service Omar Dhanani was a resident of Fountain Valley, California. A search on Intelius lists Omar R. Dhanani from Fountain valley, CA along with his relatives, Nazmin Dhanani and Nabatbibi Dhanani.
www.intelius.com/people/Omar-Dhanani/Fountain%20Valley-CA/06DPMG23XKS
Now here is where it gets interesting. Nazmin Dhanini and Michael Patryn have apparently registered several companies together, one of them being MPD Advertising:
http://www.companiesofcanada.com/company/726420-8/mpd-advertising-inc
Omar Dhanini relatives: Nazmin Dhanani and Nabatbibi Dhanani
Michael Patryn: registered at least one company, MPD Advertising Inc with Nazmin Dhanini."

See pastebin below for more info:

"# Michael Patryn

  1. aka. Omar Dhanani
  2. aka. Omar Patryn
  3. ## 2004-10-28
  4. Arrested and convicted in California under the name of Omar Dhanani as a member of Shadowcrew, an organization trafficking stolen credit and identity information primarily using E-Gold
  5. IMPORTANT: Omar Dhanani used the alias Voleur (french for "thief") during his time with Shadowcrew. This is one of the primary connecting threads between the Omar Dhanani and his later aliases as Patryn, owner of VFS-NETWORKS
  6. https://www.justice.gov/archive/opa/p2005/Novembe05\_crm\_619.html
  7. https://web.archive.org/web/20130216063323/http://www.secretservice.gov/press/pub2304.pdf
  8. https://www.justice.gov/sites/default/files/usao-nj/legacy/2013/11/29/Kolarov%2C%20Aleksi%20Indictment.pdf
  9. ### 2004-10-04
  10. According to a Bloomberg article from January 2006 citing a United States Secret Service affidavit, Omar:
  11. "boasted in a chat room that he moved between $40,000 and $100,000 a week. He pled guilty in November to conspiracy to commit fraud and faces up to five years in prison."
  12. https://www.bloomberg.com/news/articles/2006-01-08/gold-rush
  13. ## 2004-10-29
  14. Users on Talkgold forum begin discussing the possibility that a prolific user on the forum, "Patryn" is actually Omar Dhanani.
  15. https://web.archive.org/web/20130510055547/http://www.talkgold.com/forum/r256207-.html
  16. ## 2005-11-18
  17. An article in The Register describes how Omar Dahnani and 5 others plead guilty to charges laid on them in November 2014:
  18. "The group of six pleaded guilty to one count of conspiracy to defraud in New Jersey on Thursday in exchange for the state dropping other charges pending against them, Wired reports. They were named as: Andrew Mantovani, 23, and Brandon Monchamp, 22, of Arizona; Kim Taylor, 47, and Omar Dhanani, 22, of California; Jeremy Stephens, 31, of North Carolina; and Jeremy Zielinski, 22, of Florida. In total, 12 people have now pleaded guilty to Shadowcrew-related charges."
  19. "Shadowcrew members are expected to be sentenced between mid-February and mid-March 2006."
  20. https://www.theregister.co.uk/2005/11/18/shadowcrew/
  21. ## 2007-05-23
  22. According to US Federal Prison Records, an Omar Dhanani is released from Federal Prison
  23. https://www.bop.gov/inmateloc/
  24. ## 2008-04-03
  25. MIDAS GOLD Exchange is registered in Canada
  26. under the name Omar Patryn
  27. Specialized in processing anonymous purchases and sale of early digital currencies, particularly Liberty Reserve. (Liberty Reserve was shut down in 2013 for money laundering and facilitating identity theft, credit card theft, narcotics trafficking, and child pornography)
  28. https://www.ic.gc.ca/app/sccc/CorporationsCanada/fdrlCrpDtls.html?corpId=6951198&V\_TOKEN=1511930988373&crpNm=&crpNmbr=695119-8&bsNmbr=
  29. http://www.hyipforum.pl/topic/779-m-gold-midas-gold-exchange-obni%C5%BCona-prowizja-dla-forumowicz%C3%B3w/
  30. ## 2008-05-30
  31. DNSGEO.COM domain is registered in Panama
  32. This domain was used as an alternative gateway to VFS-NETWORK.COM as seen in the internet archive
  33. https://web.archive.org/web/20110207131437/http://dnsgeo.com/
  34. https://whois.icann.org/en/lookup?name=dnsgeo.com
  35. for comparison:
  36. https://web.archive.org/web/20101218100404/http://vfs-network.com/
  37. ### Reports from users claim that phishing emails we're received from this domain (DNSGEO.COM) shortly after disputing problems with MIDAS GOLD withdrawals and deposits.
  38. Images are included.
  39. https://www.complaintsboard.com/complaints/midas-gold-exchange-c440529.html
  40. ## 2008-08-27
  41. HD-MONEY.COM domain is registered as being located in the Bahamas
  42. https://whois.icann.org/en/lookup?name=www.hd-money.com
  43. ## 2009-02-09
  44. VFS-NETWORK.com domain is registered
  45. (Voleur Financial Services)
  46. https://web.archive.org/web/20090225095825/http://www.vfs-network.com:80/
  47. VFS Network was an exchange network bringing together
  48. e-money services like Liberty Reserve and other OmaMichael projects like HD-MONEY.COM, XXX-CHANGE.COM and MIDAS GOLD.
  49. Website now points to dns.shadowserver.org, a volunteer service often used by legal authorities to capture data from incoming traffic to the webpage (Was used by authorities after Liberty Reserve's domain was seized)
  50. https://whois.icann.org/en/lookup?name=vfs-network.com
  51. https://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/#more-20723
  52. ### 2009-10-02
  53. VFS-Network publishes that they have met with the management of Liberty Reserve
  54. https://web.archive.org/web/20101129134240/http://vfs-network.com/main.htm
  55. ### NOTE: Voleur is mentioned as an alias by users on dreamteammoney.com, along with complaints related to MIDAS GOLD. These complaints relate a MIDAS GOLD policy of withholding client's funds depending on how many emails they sent asking about the status of their funds.
  56. http://www.dreamteammoney.com/index.php?showtopic=130170&hl=voleur
  57. ### IMPORTANT: "OWNER" of VFS-NETWORK frequently appears online under the name of Patryn, connecting the alias to Omar Patryn of MIDAS GOLD, although Patryn can be found denying any relationship whatsoever between the businesses. In the same thread below on ComplaintsBoard, Patryn posts with a VFS-NETWORK avatar while describing why he, as an administrator on a MIDAS GOLD-managed forum deleted posts of users making complaints.
  58. https://www.complaintsboard.com/complaints/midas-gold-exchange-c286802.html#c546412
  59. http://www.realscam.com/members/patryn/
  60. ## 2009-05-02
  61. HD-MONEY.COM CEO (Michael Patryn aka Omar Dhanani) informs clients that they are now partnered with Liberty Reserve
  62. https://web.archive.org/web/20100115074839/http://www.hd-money.com/Usecms.aspx?Page=ceo
  63. ## 2009-09-10
  64. XXX-CHANGE.COM domain is registered (although internet archive shows an xxx-change.com as far back as 2001)
  65. Images from internet archive show an important partnership with HD-MONEY and VFS-NETWORK
  66. https://web.archive.org/web/20130628192252/http://xxx-change.com:80/
  67. ## 2009-10-22
  68. MPD ADVERTISING is founded by Nazin Dhanani and Michael Patryn in Vancouver
  69. Nazin is thought to be a sibling of Omar Dhanani aka Michael Patryn
  70. http://www.companiesofcanada.com/company/726420-8/mpd-advertising-inc
  71. ## 2009-12-25
  72. Complaints surface online about MIDAS GOLD withholding funds with recommendations to report to the Canadian police
  73. https://www.complaintsboard.com/complaints/perfect-money-corporation-c287831.html#c546416
  74. ## 2009-12-30
  75. MIDAS GOLD business registration is dissolved by Omar Patryn, but forums show that services continued well into 2011
  76. https://www.ic.gc.ca/app/sccc/CorporationsCanada/fdrlCrpDtls.html?corpId=6951198&V\_TOKEN=1511930988373&crpNm=&crpNmbr=695119-8&bsNmbr=
  77. ###
  78. Around December 2009 , reports begin to surface of payment processors closing down MIDAS GOLD accounts due to overwhelming amounts of complaints from MIDAS GOLD users not receiving their funds from MIDAS GOLD. OmaMichael himself responds in the thread
  79. https://www.complaintsboard.com/complaints/midas-gold-exchange-c286802.html
  80. ### In the same year, Liberty Reserve is investigated by Costa Rican
  81. authorities due to questions as to their funding sources. By 2011 they are denied a business license for these reasons and forced to dissolve. Liberty Reserve continues to do business illegally by routing through 5 separate Costa Rican corporate entities.
  82. https://en.wikipedia.org/wiki/Liberty\_Reserve#Criminal\_investigation\_and\_charges
  83. ### MIDAS GOLD would be seized by the United States Global Illicit Financial Team sometime between 2010-2011
  84. http://m-gold.com/index.html
  85. ## 2013-06-13
  86. Extremely dubious reports of the arrest of an Omar Dhanani in Montreal for money laundering crimes appear on press release websites (very unreliable reports)
  87. https://www.businesspress24.com/pressrelease1236813/omar-dhanani-arrested-in-montreal.html
  88. https://web.archive.org/web/20130701234632/http://internetcybercrime.com/montreal-omar-dhanani-arrested-for-money-laundering/
  89. http://www.realscam.com/attachments/f29/4517d1371775999-welcome-patryn-omar.jpg
  90. ## 2014-04-17
  91. Michael Patryn is nominated to the Bitcoin Foundation by Francis Pouliot, who states in his nomination:
  92. "Michael Patryn has been working with digital currencies since 2002 in the capacity of financial consultant, market maker, and exchanger. As a venture capitalist, Michael has actively invested with and supported over twenty companies within the digital currency space."
  93. ### Which 20 companies? 2002 would be the year Omar Dhanani was working with Shadowcrew laundering funds using E-Gold.
  94. ## 2014-01-26
  95. A profile of Michael Patryn is published on the Lifeboat Foundation website listing him as Director of VFS SECURITIES.
  96. ## 2014-11-12
  97. Quadriga Fintech Solutions is founded by Gerald Cotton and Michael Patryn (Only Gerald Cotton is listed on the SEDAR page for the company).
  98. https://sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00037030"
Copied and pasted from: https://pastebin.com/Svap6KSF


Also note early connection between Lovie Horner and Micheal Patryn through the BJJ Foundation (maybe this side-note will be useful at some future point):
https://www.companiesofcanada.com/company/861395-8/world-bjj-federation
Also note early connection between Lovie Horner and Micheal Patryn through the BJJ Foundation (maybe this side-note will be useful at some future point):
https://www.companiesofcanada.com/company/861395-8/world-bjj-federation
submitted by cryptotrader1234 to QuadrigaCX [link] [comments]

In case you missed it: Major Crypto and Blockchain News from the week ending 12/14/2018

Developments in Financial Services

Regulatory Environment

General News


submitted by QuantalyticsResearch to CryptoCurrency [link] [comments]

Clear evidence that Micheal Patryn is Omar Dhanani and connection to other staff

Notice Micheal Patryn and Nazmin Dhanani are listed as officers in the company MPD Advertising: https://www.companiesofcanada.com/company/726420-8/mpd-advertising-inc

Also Intraday56 Explained it well here https://www.reddit.com/BitcoinCA/comments/7nt7ys/question_is_quadrigacx_legit_with_all_the/ds4ihco (copied and pasted for your convenience):
"Michael Patryn is one of the founders of Quadrigacx. He is part of a criminal mafia mob and has been to jail before for carding theft, ID theft and ponzi schemes. His real name is Omar Dhanani. Here's an article from coindesk that names Patryn as the cofounder of QuadrigaCx:
https://www.coindesk.com/bitcoin-exchange-quadriga-public-reverse-takeover
Omar Dhanani aka Michael Patryn was one of 6 men arrested for internet ID theft and credit card conspiracy fraud back in 2005. They were operating Shadowcrew.com, a web mob of highly organized criminals. For more info google ShadowCrew.
https://www.justice.gov/archive/opa/p2005/Novembe05_crm_619.html
At the time ShadowCrew was busted by the US Secret Service Omar Dhanani was a resident of Fountain Valley, California. A search on Intelius lists Omar R. Dhanani from Fountain valley, CA along with his relatives, Nazmin Dhanani and Nabatbibi Dhanani.
www.intelius.com/people/Omar-Dhanani/Fountain%20Valley-CA/06DPMG23XKS
Now here is where it gets interesting. Nazmin Dhanini and Michael Patryn have apparently registered several companies together, one of them being MPD Advertising:
http://www.companiesofcanada.com/company/726420-8/mpd-advertising-inc
Omar Dhanini relatives: Nazmin Dhanani and Nabatbibi Dhanani
Michael Patryn: registered at least one company, MPD Advertising Inc with Nazmin Dhanini."

See pastebin below for more info:

"# Michael Patryn

  1. aka. Omar Dhanani
  2. aka. Omar Patryn
  3. ## 2004-10-28
  4. Arrested and convicted in California under the name of Omar Dhanani as a member of Shadowcrew, an organization trafficking stolen credit and identity information primarily using E-Gold
  5. IMPORTANT: Omar Dhanani used the alias Voleur (french for "thief") during his time with Shadowcrew. This is one of the primary connecting threads between the Omar Dhanani and his later aliases as Patryn, owner of VFS-NETWORKS
  6. https://www.justice.gov/archive/opa/p2005/Novembe05_crm_619.html
  7. https://web.archive.org/web/20130216063323/http://www.secretservice.gov/press/pub2304.pdf
  8. https://www.justice.gov/sites/default/files/usao-nj/legacy/2013/11/29/Kolarov%2C%20Aleksi%20Indictment.pdf
  9. ### 2004-10-04
  10. According to a Bloomberg article from January 2006 citing a United States Secret Service affidavit, Omar:
  11. "boasted in a chat room that he moved between $40,000 and $100,000 a week. He pled guilty in November to conspiracy to commit fraud and faces up to five years in prison."
  12. https://www.bloomberg.com/news/articles/2006-01-08/gold-rush
  13. ## 2004-10-29
  14. Users on Talkgold forum begin discussing the possibility that a prolific user on the forum, "Patryn" is actually Omar Dhanani.
  15. https://web.archive.org/web/20130510055547/http://www.talkgold.com/forum/r256207-.html
  16. ## 2005-11-18
  17. An article in The Register describes how Omar Dahnani and 5 others plead guilty to charges laid on them in November 2014:
  18. "The group of six pleaded guilty to one count of conspiracy to defraud in New Jersey on Thursday in exchange for the state dropping other charges pending against them, Wired reports. They were named as: Andrew Mantovani, 23, and Brandon Monchamp, 22, of Arizona; Kim Taylor, 47, and Omar Dhanani, 22, of California; Jeremy Stephens, 31, of North Carolina; and Jeremy Zielinski, 22, of Florida. In total, 12 people have now pleaded guilty to Shadowcrew-related charges."
  19. "Shadowcrew members are expected to be sentenced between mid-February and mid-March 2006."
  20. https://www.theregister.co.uk/2005/11/18/shadowcrew/
  21. ## 2007-05-23
  22. According to US Federal Prison Records, an Omar Dhanani is released from Federal Prison
  23. https://www.bop.gov/inmateloc/
  24. ## 2008-04-03
  25. MIDAS GOLD Exchange is registered in Canada
  26. under the name Omar Patryn
  27. Specialized in processing anonymous purchases and sale of early digital currencies, particularly Liberty Reserve. (Liberty Reserve was shut down in 2013 for money laundering and facilitating identity theft, credit card theft, narcotics trafficking, and child pornography)
  28. https://www.ic.gc.ca/app/sccc/CorporationsCanada/fdrlCrpDtls.html?corpId=6951198&V_TOKEN=1511930988373&crpNm=&crpNmbr=695119-8&bsNmbr=
  29. http://www.hyipforum.pl/topic/779-m-gold-midas-gold-exchange-obni%C5%BCona-prowizja-dla-forumowicz%C3%B3w/
  30. ## 2008-05-30
  31. DNSGEO.COM domain is registered in Panama
  32. This domain was used as an alternative gateway to VFS-NETWORK.COM as seen in the internet archive
  33. https://web.archive.org/web/20110207131437/http://dnsgeo.com/
  34. https://whois.icann.org/en/lookup?name=dnsgeo.com
  35. for comparison:
  36. https://web.archive.org/web/20101218100404/http://vfs-network.com/
  37. ### Reports from users claim that phishing emails we're received from this domain (DNSGEO.COM) shortly after disputing problems with MIDAS GOLD withdrawals and deposits.
  38. Images are included.
  39. https://www.complaintsboard.com/complaints/midas-gold-exchange-c440529.html
  40. ## 2008-08-27
  41. HD-MONEY.COM domain is registered as being located in the Bahamas
  42. https://whois.icann.org/en/lookup?name=www.hd-money.com
  43. ## 2009-02-09
  44. VFS-NETWORK.com domain is registered
  45. (Voleur Financial Services)
  46. https://web.archive.org/web/20090225095825/http://www.vfs-network.com:80/
  47. VFS Network was an exchange network bringing together
  48. e-money services like Liberty Reserve and other OmaMichael projects like HD-MONEY.COM, XXX-CHANGE.COM and MIDAS GOLD.
  49. Website now points to dns.shadowserver.org, a volunteer service often used by legal authorities to capture data from incoming traffic to the webpage (Was used by authorities after Liberty Reserve's domain was seized)
  50. https://whois.icann.org/en/lookup?name=vfs-network.com
  51. https://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/#more-20723
  52. ### 2009-10-02
  53. VFS-Network publishes that they have met with the management of Liberty Reserve
  54. https://web.archive.org/web/20101129134240/http://vfs-network.com/main.htm
  55. ### NOTE: Voleur is mentioned as an alias by users on dreamteammoney.com, along with complaints related to MIDAS GOLD. These complaints relate a MIDAS GOLD policy of withholding client's funds depending on how many emails they sent asking about the status of their funds.
  56. http://www.dreamteammoney.com/index.php?showtopic=130170&hl=voleur
  57. ### IMPORTANT: "OWNER" of VFS-NETWORK frequently appears online under the name of Patryn, connecting the alias to Omar Patryn of MIDAS GOLD, although Patryn can be found denying any relationship whatsoever between the businesses. In the same thread below on ComplaintsBoard, Patryn posts with a VFS-NETWORK avatar while describing why he, as an administrator on a MIDAS GOLD-managed forum deleted posts of users making complaints.
  58. https://www.complaintsboard.com/complaints/midas-gold-exchange-c286802.html#c546412
  59. http://www.realscam.com/members/patryn/
  60. ## 2009-05-02
  61. HD-MONEY.COM CEO (Michael Patryn aka Omar Dhanani) informs clients that they are now partnered with Liberty Reserve
  62. https://web.archive.org/web/20100115074839/http://www.hd-money.com/Usecms.aspx?Page=ceo
  63. ## 2009-09-10
  64. XXX-CHANGE.COM domain is registered (although internet archive shows an xxx-change.com as far back as 2001)
  65. Images from internet archive show an important partnership with HD-MONEY and VFS-NETWORK
  66. https://web.archive.org/web/20130628192252/http://xxx-change.com:80/
  67. ## 2009-10-22
  68. MPD ADVERTISING is founded by Nazin Dhanani and Michael Patryn in Vancouver
  69. Nazin is thought to be a sibling of Omar Dhanani aka Michael Patryn
  70. http://www.companiesofcanada.com/company/726420-8/mpd-advertising-inc
  71. ## 2009-12-25
  72. Complaints surface online about MIDAS GOLD withholding funds with recommendations to report to the Canadian police
  73. https://www.complaintsboard.com/complaints/perfect-money-corporation-c287831.html#c546416
  74. ## 2009-12-30
  75. MIDAS GOLD business registration is dissolved by Omar Patryn, but forums show that services continued well into 2011
  76. https://www.ic.gc.ca/app/sccc/CorporationsCanada/fdrlCrpDtls.html?corpId=6951198&V_TOKEN=1511930988373&crpNm=&crpNmbr=695119-8&bsNmbr=
  77. ###
  78. Around December 2009 , reports begin to surface of payment processors closing down MIDAS GOLD accounts due to overwhelming amounts of complaints from MIDAS GOLD users not receiving their funds from MIDAS GOLD. OmaMichael himself responds in the thread
  79. https://www.complaintsboard.com/complaints/midas-gold-exchange-c286802.html
  80. ### In the same year, Liberty Reserve is investigated by Costa Rican
  81. authorities due to questions as to their funding sources. By 2011 they are denied a business license for these reasons and forced to dissolve. Liberty Reserve continues to do business illegally by routing through 5 separate Costa Rican corporate entities.
  82. https://en.wikipedia.org/wiki/Liberty_Reserve#Criminal_investigation_and_charges
  83. ### MIDAS GOLD would be seized by the United States Global Illicit Financial Team sometime between 2010-2011
  84. http://m-gold.com/index.html
  85. ## 2013-06-13
  86. Extremely dubious reports of the arrest of an Omar Dhanani in Montreal for money laundering crimes appear on press release websites (very unreliable reports)
  87. https://www.businesspress24.com/pressrelease1236813/omar-dhanani-arrested-in-montreal.html
  88. https://web.archive.org/web/20130701234632/http://internetcybercrime.com/montreal-omar-dhanani-arrested-for-money-laundering/
  89. http://www.realscam.com/attachments/f29/4517d1371775999-welcome-patryn-omar.jpg
  90. ## 2014-04-17
  91. Michael Patryn is nominated to the Bitcoin Foundation by Francis Pouliot, who states in his nomination:
  92. "Michael Patryn has been working with digital currencies since 2002 in the capacity of financial consultant, market maker, and exchanger. As a venture capitalist, Michael has actively invested with and supported over twenty companies within the digital currency space."
  93. ### Which 20 companies? 2002 would be the year Omar Dhanani was working with Shadowcrew laundering funds using E-Gold.
  94. ## 2014-01-26
  95. A profile of Michael Patryn is published on the Lifeboat Foundation website listing him as Director of VFS SECURITIES.
  96. ## 2014-11-12
  97. Quadriga Fintech Solutions is founded by Gerald Cotton and Michael Patryn (Only Gerald Cotton is listed on the SEDAR page for the company).
  98. https://sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00037030"
Copied and pasted from: https://pastebin.com/Svap6KSF


Also note early connection between Lovie Horner and Micheal Patryn through the BJJ Foundation (maybe this side-note will be useful at some future point):
https://www.companiesofcanada.com/company/861395-8/world-bjj-federation
submitted by cryptotrader1234 to QuadrigaCX2 [link] [comments]

Bitcoin's Dystopian Future

I have seen the future of Bitcoin, and it is bleak.
The Promise of Bitcoin
If you were to peak into my bedroom at night (please don’t), there’s a good chance you would see my wife sleeping soundly while I stare at the ceiling, running thought experiments about where Bitcoin is going. Like many other people, I have come to the conclusion that distributed currencies like Bitcoin are going to eventually be recognized as the most important technological innovation of the decade, if not the century. It seems clear to me that the rise of distributed currencies presents the biggest (and riskiest) investment opportunity I am likely to see in my lifetime; perhaps in a thousand lifetimes. It is critically important to understand where Bitcoin is going, and I am determined to do so.
My hundreds of hours of thought experiments have been productive. I published a whitepaper about the future of Bitcoin, and because of that paper I’ll have the great privilege of sitting on the “Bitcoin in the Future” panel at the 2013 Bitcoin Conference in San Jose. Through these years of deliberation I have satisfied myself that the answer to the “Trillion Dollar Question” of whether any form of distributed currency can ever achieve a stable price, is “yes”. (There are three ways this will happen, as I have written elsewhere).
I have been predicting for years that the world’s first trillionaire by USD valuation will be an early investor in distributed currency — quite possibly Satoshi Nakamoto, whoever he/she/it/they may be. I own a few bitcoins, and I intend to keep them until I find a more attractive investment (that is, I want to invest in whatever replaces bitcoin or builds on top of it).
To many people, this sounds like an implausibly rosy future, and for early adopters that is true — it feels like winning the lottery every day. However, for most other people, the ascendancy of distributed currency systems will feel like a disaster. If you are involved in Bitcoin now, you should prepare to be almost universally hated someday.
In this article, we will examine a few simple thought experiments to show how the rise of distributed currencies such as bitcoin could create massive social upheaval due to governments’ rapidly degrading capability to fulfill their core functions of taxation and regulation of commerce. We’ll see how the end result could be extremely painful for common citizens due to previously unimaginable wealth disparities, hyperinflation of previously stable government-backed fiat currencies, and a greatly empowered criminal class.
The Bleak Future of Fiat Currencies
Anarchists and hardcore libertarians love Bitcoin, but most people outside those circles are not in favor of completely doing away with their government. If you aren’t part of a fringe political movement, chances are there is something the government does that you like, whether it’s handing out entitlement money, killing enemies, putting people in prison, building dams and roads, funding research, or any number of other things. The government can do these things because the government can collect taxes, which in turn they can do because the flows of money are highly regulated and tracked at every level. Whether you are collecting a paycheck, buying furniture, cashing out investments, or simply dying and leaving an inheritance, the government knows about it and takes a cut.
For our first thought experiment, let’s imagine a world where distributed currencies like bitcoin have become wildly successful due to technological advances which make them easy to use and completely stable. In this world government-issued money is as good as dead. It may take a few years for everyone to realize it, but there will come a point when the ever-increasing outflows of money from fiat money into untaxable, unseizable decentralized currency will reach a tipping point, and we’ll have a financial panic like the world has never seen. Frightened lawmakers and banks will try to stop people from cashing out, but that will just increase the panic. Those who don’t get out before the door closes will be in dire straits indeed. This is the ultimate bank run — the run on the world’s central banks, and who could possibly step in and restore order?
When people think of hyperinflation, they usually envision a Zimbabwean printing press running around the clock in the dark corner of a mud hut, putting ever more zeroes on cheap paper. Has it ever occurred to you that hyperinflation can happen while the printing presses are off? The value of the money in your pocket is not ultimately guaranteed by your government, but by simple supply and demand. The government controls the supply, and we control the demand. If demand falls precipitously, we have hyperinflation without ever needing to print another dollar or euro. If people start fleeing government currencies en masse, hyperinflation is the inevitable result.
The good news is that you don’t need to worry about current government debt in this scenario. If government currencies lose their value rapidly, debts which previously seemed overwhelming suddenly become much more manageable. Perhaps your debt-laden government will someday completely pay off it’s national debt by simply selling a few gold bars and a couple national parks.
The Bleak Future of Retirement
For our next thought experiment, let’s consider what will happen to Grandma. For her whole life, she has carefully saved her money, and now she is living in reasonable comfort. She gets money and health care from the government, and she has her own savings to fall back on. Grandma has done everything right, including taking her savings out of the stock market; most of her savings are now invested in the safest asset known to man: U.S. Treasury Bonds.
Rather suddenly, things start to go wrong. At the same time all her expenses start skyrocketing, the government has a liquidity crisis; they are having trouble collecting taxes and can no longer pay for her health care. Her savings are still “safe” in the sense that she will get U.S. Dollars out of them, but that is little comfort when those dollars which should have lasted years can barely pay her weekly grocery bill.
Grandma’s retirement has been sabotaged by the rise of a new kind of money that she can’t even begin to understand. All she knows is that she did everything right, and now she has nothing.
The Bleak Future Wealth Disparities
All the world’s wealth has essentially been stolen, but by whom? By you, dear reader.
We’ll be very lucky if we aren’t all rounded up and summarily executed. Thankfully, you’ll be able to use some of that money to purchase protection, but I’m not at all convinced that it will be enough. A wrathful government backed by an enraged population is a fearful enemy. Satoshi foresaw this long ago, and I doubt he/she/it/they will ever voluntarily come into the light.
If there are enough of us, and we are very careful and charming, we may be physically safe. However, the massive displacement of wealth will still have some awful consequences. People argue all the time about the societal benefits and drawbacks of wealth disparities, and the rise of distributed currencies will create disparities that previously did not seem possible. It seems clear that there will be a lot of jobs created by the new wealthy, but whether the average person is better off or not, one thing is sure to rise: resentment. What right do we have to take all the wealth of the world and put it in our pockets? Sure, a nifty new idea should pay off for early visionaries, but nobody ever expected a new idea to suck all the wealth out of the world like a financial black hole!
The Bleak Future of Law Enforcement
This is where things get really bleak. Currently distributed currencies facilitate money laundering, black market commerce (the Silk Road), and insider trading (TorBroker). These applications in their current form are just a snowflake on the tip of the iceberg. Not only will they get MUCH bigger, but we will see applications which are much less savory. Historically, the “Dark Net” accessible by Tor and private networks has been nothing more than a hidey-hole for illegal files and a hangout for paranoid schizophrenics, but it is quickly becoming the platform of choice for large-scale illegal commerce.
For this thought experiment, we will imagine that your child has been kidnapped and put up for sale on “TorSlaver”. Their business plan is to kidnap children and sell them to the highest bidder, whether parent or pedophile. The winning bidder is sent the location of the child, probably bound and gagged and dumped somewhere. As long as they don’t get caught doing the kidnapping, the kidnappers can do this again and again with complete impunity. Once someone proves it can be done, copycats will come out of the woodwork, and it won’t matter if the first mover gets caught.
As a parent of three small children, I cannot describe to you how awful this makes me feel. I have always been a very reluctant bitcoin investor, for this very reason. I don’t invest in bitcoin because I think it will bring about a happy utopian world. Quite the opposite. I invest in bitcoin because the rise of distributed currency is inevitable, and owning some bitcoins seems to be the best way to prepare for the chaos ahead. And just maybe, if I position myself correctly, I can make things a little less awful.
The Government Strikes Back
Does anyone really expect the government to sit back quietly and watch while their currency is debased, terrorism is funded, and children are kidnapped? The only question is when and how they will strike back against these forces. While the government does have a lot of options, ultimately those options only slow things down. At some point, we collectively with our governments face a difficult choice between trying to survive this deadly storm or attempting to destroy all decentralized computer networks (including the internet). The former seems unthinkable, the latter, impossible.
I wouldn’t be surprised if this chaos gives rise to a strong, centralized, one-world government which gets its revenues by tightly reigning in freedom of commerce in order to collect taxes. For instance, I will not be surprised to see a requirement someday that every person buying or selling have an implant which tightly binds their identity to the sale. Perhaps the implant will even be located on the back of the right hand or the forehead! This may seem repugnant to you now, but wait until you have lived in the storm for a while before you call it impossible. The natural reaction to the deadly chaos of decentralized currency is for the populace to embrace increasingly centralized controls on commerce. The battle lines are only just starting to be drawn, and your guess is as good as mine for how it will play out.
What Should We Do?
We need people thinking about this. I’ll admit that many of the things I wrote about may not happen at all, or may happen very differently than I imagine. However, there are lots of people touting the fantastic benefits that bitcoin and its children can give us, and I don’t see anybody talking about how bad things could potentially get.
We need solutions. When the government finally starts taking decentralized currency seriously, it will probably be doing so in a state of panic. We need to be advising governments now about how they can survive the storm and protect their populace. We need to think of ways the government can pay for its most critical operations, and what legislation makes sense to mitigate these new risks while preserving as much freedom as we can.
The Lifeboat Foundation is attempting to provide this thinking, advice, and solutions. They are already getting ready for a new advisory board, culled from computer scientists, economists, and bitcoin experts. If you make a fortune from your investments in decentralized currency, I urge you to consider how you can help all the people harmed by these rapid changes. Many bitcoin enthusiasts seem to think they will get to retire on a private island with a harem and a stable of Italian sports cars. This is wrong. Bitcoin investors need to someday become bitcoin philanthropists, and our giving needs to be targeted at helping all the people we have harmed. The Lifeboat Foundation is one option, but I’m sure there will be others.
I first published this article on the blog of the Lifeboat Foundation: http://lifeboat.com/blog/2013/04/bitcoins-dystopian-future
Bitcoin forum version is here: https://bitcointalk.org/index.php?topic=180798.0
tl;dr: Wildly successful distributed currencies could hurt a lot of people.
submitted by dacoinminster to Bitcoin [link] [comments]

Blockchain, Isolationism, Space Exploration and the Future of Nations | David Orban of Singularity University

Blockchain, Isolationism, Space Exploration and the Future of Nations | David Orban of Singularity University

David Orban is an entrepreneur, author, keynote speaker, and the Founder and Managing Partner of Network Society Ventures, a seed stage global investment firm focused on innovative startups at the intersection of exponential technologies and decentralized networks.
An early adopter of blockchain and an active Bitcoin investor since 2010, he was the first to own Ether during the Ethereum launch in 2014. He also led the adoption of Bitcoin and blockchain in start-ups and is an advisor and investor in numerous blockchain companies and funds, such as Blockchain Capital, Bancor, Swarm Fund, and others. David was the keynote speaker at the first Ethereal Summit in May 2017 in New York and is the Founder and a Trustee of Network Society Research, a London-based global think tank present in over 40 countries focused on decentralized exponential technologies disrupting governments and corporations.
He is a mentor for the Thiel Fellowship, a Scientific Advisory Board Member for the Lifeboat Foundation on the Faculty of and an advisor to the Singularity University, an investor in the Singularity University Labs Accelerator Fund (now SU Ventures), President of SingularityU Italy Summit and an advisor to Humanity+.
David is a sought-after speaker, he has given over 100 keynote addresses and speeches around the world for organizations including Abbvie, Cisco, Oracle, Roche, Ernst & Young, Accenture, Gilead, TEDx Academy, Alphabet and others and blogs at davidorban.com

In our wide-ranging conversation, we cover many things, including:
submitted by The_Syndicate_VC to VenturedCapital [link] [comments]

Cryptocurrency trenches: Are bitcoin & blockchain really transformative?

Today, I interviewed Phil Raymond. He co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He sits on the New Money Systems board of Lifeboat Foundation and is a top Bitcoin writer at Quora.

For the people who don’t know you, what can you tell about yourself?

I was originally a hardware design engineer, creating electronic memory systems for computers and a few consumer products. Later, I started a company that designed and manufactured local area network devices for the smart building controls industry.
Back at college, I studied hardware engineering, of course. But I was always fascinated with encryption, compression and error correction. I studied under Gilles Brassard (inventor of Quantum Cryptography), and I met Claude Shannon (the father of information theory) and David Chaum (founder of DigiCash). In the early days of email, I latched onto PGP, RSA and the public key infrastructure that enables internet commerce. I realized that these concepts would enable transformative products and services, and that they would radically benefit consumers.
Nine years ago, Satoshi hit the scene with a solution to the Double-Spend problem. In a very brief whitepaper, he articulated the blockchain and even introduced a test platform which used a blockchain as a distributed consensus mechanism for digital cash that required no central nexus or authoritative bookkeeper. He called it “Bitcoin”.
I was fortunate to appreciate the tectonic importance of Satoshi’s gift to mankind. The blockchain and Bitcoin are easily misunderstood or dismissed today, but they are no less important than the internet or public key cryptography. They will radically change how we work, play, spend money and how we interact with each other. Ultimately, they will redefine the relationship between citizens and their governments, because these concept allow us to redefine trust and democracy in a way that more closely matches our goals and ideals.
I was involved in cryptocurrency early on, even in the pre-PayPal days of DigiCash and Digital Gold.
So, what do I do today?
I co-chair the Cryptocurrency Standards Association, a loose-knit collaborative of researchers, journalists, enthusiasts and vendors. I host the New York Bitcoin Event and more recently, I am keynote speaker at Cryptocurrency Conferences. I also sit on the New Money Systems board at Lifeboat Foundation. I am a top Bitcoin writer at Quora and editor of the Blog, AWildDuck.com

What is blockchain and, how does it work?

We hear a lot about the blockchain. We also hear a lot of misconceptions about its purpose and benefits. Some have said that it represents a threat to banks or to governments. Nonsense! It is time for a simple, non-political, and non-economic definition…

What is a Blockchain?

A blockchain is a distributed approach to bookkeeping. Because it opens and distributes the ledger among all participants, it offers an empowering, efficient and trusted way for disparate parties to reach consensus. It is “empowering”, because conclusions built on a blockchain can be constructed in a way that is inherently fair, transparent and resistant to manipulation. At scale, it is also massively redundant. This further leads to a hardened network which can resist loss whether caused by accident, faulty infrastructure or attack.
This is why blockchain-backed systems are generating excitement. Implemented as distributed and permissionless, they take uncertainty out of accounting, voting, legislation or research, and replace it with trust and security. Benefits are bestowed without the need for central authority or arbitration. The blockchain not only solves a fundamental transaction challenge, it addresses communication and arbitration problems that have bedeviled thinkers since the ancient Egyptians.

Related explanations:

What is a cryptocurrency and, how does it work?

Cryptocurrency is a blockchain-based token that has achieved a two-sided network and is used like money in payment for goods, services or debts. It is not simply traded by investors, hoarders and speculators (although these trades dominate the early adoption phase) — and it is not simply used as an asset-backed payment instrument like a gift card or debit card. (Those are instruments are tied to dollars or the solvency of banks and retailers). Rather, a cryptocurrency is traded with the potential to be the money itself. It’s value floats freely with supply and demand.
It is important to distinguish cryptocurrency from ICOs (Initial Coin Offerings) and other digital tokens. Cryptocurrency always refers to Bitcoin or other altcoins that are built on an open source, transparent and permissionless blockchain. They have no proprietary code or features, and every transaction from the very start of time is open to public scrutiny.
A cryptocurrency might have a functional purpose like some ICOs (That is, they might be used for something other than a payment instrument). But they are never associated with Airdrops, multi-level trading, or promotions that generate benefits to early adopters or those who refer. These gimmicks never apply to genuine cryptocurrencies. They are concepts from the marketers who hawk ICOs. Those are digital products for speculators and not a cryptocurrency.

How do they work?

Cryptocurrencies work by permitting trust without any central authority keeping the books. Instead of a bank or retailer tracking your ownership of coins, a network of miners act as a giant network of distributed accounts. Their activity maintains the transaction logs, attests to the validity of transactions and keeps track of who owns what.

Here are some really interesting facts about miners:

(a) Anyone can be a miner. There are no restrictions on joining the party
(b) Eventually, everyone will be a miner, whether they realize it or not. That is, it will become a part of every wallet. The reason that everyone will become a miner, is because the rewards will eventually run out. When they do, the spread of mining to all parties is the glue that will keep transactions fast, free and trusted.
(c) Miners don’t “see” that they are writing, validating, publishing and guaranteeing validity of the books. From their perspective, they are participating in a massive networked gaming community. They race other gamers, trying to solve a math puzzle, while seeking little rewards as they go along.

Do you see future where we will adopt cryptocurrencies at international scale and, why?

It is inevitable! Someday, Cryptocurrencies will replace government issued currencies. I am certain of this. Why is this? Because Bitcoin is not only good for consumers, vendors, banks, lenders, creditors and NGOs — it is especially good for governments.
Today, some legislators and politicians fear that cryptocurrency will undermine a country’s control over its own monetary policy. This is true. Indeed, governments will lose that control. And this is good.
A government no more needs control over monetary policy as it does over telecommunications or the package delivery services. We are conditioned to believe that value comes from a trusted party, and this makes it hard to give up our assumption that governments must control the creation of wealth. But, in fact, nations are much healthier if they must balance their books like any individual, business, NGO, club, state or municipality. They can still borrow, of course. But they will no longer be able to print funny money and continuously hoist their debts onto unborn generations.

Why did bitcoin reach such a high value??

Bitcoin had a significant rise in 2017. From $1000 to almost $20,000 per BTC unit. During that time, the subject spread like wildfire — and so, of course did investor interest. News stories flourished and these led to functional studies by banks, vendors, exchanges, and settlement houses. But, more than 95% of trades were made by investors, day traders, hoarders and speculators, and this leads to a volatile commodity. (Not a bubble, but a very rapidly changing value). This exchange value makes for great dinner-table discussion. It also makes some very rich and poor traders. But, in the end, it is quite meaningless.
In the end, 1 BTC will always be worth 1 BTC. When the exchange rate fluctuates relative to the dollar or some other currency, you will wonder what good or bad news affected the value of the dollar. You will not wonder about Bitcoin, because goods and services will be quoted and exchanged in Bitcoin, and the value to your household will not fluctuate rapidly.

What is the best cryptocurrency out there and, why?

Bitcoin is the only viable long-term cryptocurrency. Others, like Ethereum, may survive or even flourish, but this is because they serve other markets, and are not trying to be simply money.

The reason that Bitcoin will not be dethroned as the future of money, is:

Developers that I work with view every altcoin as a beta test platform for Bitcoin. Any improvement, new feature or clever innovation can be backed into Bitcoin. It’s a messy exercise in democracy, but ultimate, it only requires that the new code is accepted by a majority of miners — or championed by rising user awareness.

Do you think ETFs will be possible?

Sure. This will happen. Some government bodies will be against it and some will be for it. But either way, it is fait accompli. Eventually, every country will be dragged into the party. In any democracy or capitalist country, there is no reasonable basis for government or regulators to forbid citizens from creating securities out of any commodity or asset. Cryptocurrencies do not present any unique issues for brokers and traditional exchanges. They can be easily securitized or partitioned into derivatives. Sure, some of these instruments will amplify risk, but in the end, the public will create and market whatever instruments they wish.

Do you think decentralization will be inevitable and, why?

Yes. Decentralization is inevitable, because it addresses the goal of fairness, accountability and capitalism. It has always been a viable solution, but without a mechanism to enable applications.
Trust built on decentralized consensus (especially money) creates a fair, transparent, fluid network. It keeps governments honest.
Contrary to early pundits, decentralized cryptocurrency does not lessen a government’s ability to tax, spend or enforce tax collection. Additionally, it does not facilitate crime. These are early myths from analysts who did not fully understand or appreciate the blockchain.
But, cryptocurrency will certainly change the social contract between a government, its citizens and its creditors. Walls will come tumbling down, and this benefits everyone.

Do you think we are making history and, why?

Yes indeed. Just like the steam hammer, the telephone, the internal combustion engine, the transistor and the internet, our grandchildren will look back on the 20-teens and 2020s, and ask what it was like to witness a revolution is real time. The advent of cryptocurrency is a bit harder to grasp at first. But it is just as transformative; just as beneficial; just as important to our future.

Can you name some of the projects who will have huge impact in society and, why?

Voting, Real estate (deeds, transfers, liens), contracts, multisig consensus (related to anything), peer review (in any field), medicine, genetics, law (adjudication & arbitration), sports (scoring and consensus) — and hundreds of fields that we cannot yet imagine.

What advice can you give to the people who are starting their own project on the blockchain?

Keep your eye on the fundamental things that make the blockchain credible and beneficial. That is, Be very skeptical of any implementation that is not:
If you are involved in a project that uses a new coin or token, ask yourself if the problem could be addressed by Bitcoin or Ethereum. If so, why bother with the new coin? It certainly cannot be as fair, transparent, vetted and scalable.

Where should people start when they want to begin to learn how blockchain works?

What resources can you share with us, besides the ones that you already share?

I write a lot of articles about the revolution under our feet. With irreverent modesty, I refer you to my own articles:
WildDuck I write under the pen name, “Ellery” [View articles]
• LinkedIn Blockchain columnist: Dozens of published articles. Additionally,
• Lifeboat Board member, Columnist [View articles]
• Quora Most active author Bitcoin & blockchain [1000 articles as “Ellery”]
Sophos Bitcoin wallet security [View article]

What is the next milestone to the blockchain?

In the past few months, we have seen the gradual roll out of Lightning Network. It successfully addressed critical infrastructure problems associated with of transaction speed, cost, and other issues affecting scalability.
There are several minor issues to be addressed, mostly related to security, malleability, and testability. But I am most interested in two long term issues that must eventually be addressed:

1. Energy Consumption Caused by Proof of Work

The blockchain is the engine of Bitcoin and all other fair cryptocurrencies. Currently, Bitcoin’s blockchain is based on a distributed consensus mechanism called Proof of Work [POW]. It is fair, but it is very expensive. If solar power and other cheap energy sources spread across the world, the economics of POW guarantee that all the new, inexpensive energy will be diverted into mining and will not free humanity from fossil fuels and massive cash payments across borders.
We must replace the current Proof-of-Work mechanism with one that does not suck up every available kilowatt. Currently, POW is the scalability elephant in the room. Other cryptocurrencies have introduced alternate consensus mechanisms, but, in my opinion, they are either centralized or unfair.
Fortunately, other fair, distributed consensus mechanisms are on the horizon. You can read more about it here:

2. Dwindling of Mining Rewards and the Alignment of Goals

Every user must eventually become a miner. This will align the interests of stakeholders, incentive validators (what is now called miners), and enhance Satoshi’s vision of a fair, decentralized system of accounting and consensus.

What motivates you?

I am very fortunate to have discovered a calling and a career that fires my passion in every way. I recognized the importance of the blockchain and Bitcoin very early, and as an amateur writer, I realized that I could dispel myths that were bound to arise. The biggest myths about cryptocurrency, and Bitcoin in particular, are:
Absolutely none of this is true. But it makes for great press and it leads to a state of fear, which helps to mislead the public. I try hard to counter such misunderstanding and irrational fear in my articles, presentations and consulting.

What’s your definition of success?

Cryptocurrency transactions fall into two classes:

1. Transactions driven by money exchange or investment (speculators, hoarders, day traders)
2. Transactions driven by commerce (purchases, sales, debt settlement, staff salaries, interbank transfers, bonding shipments).
Today, the first category accounts for 95% or more of all Bitcoin transactions.
The first stage of “success” will be the time at which the fraction of Bitcoin transactions in Category 2 exceeds those in Category one. This will be the day that Bitcoin stops fluctuating and becomes a serious economic instrument.
Later a 2nd success will arrive when citizens of the world begin to shift their accumulated wealth and credit from legacy, national currencies to Bitcoin.

What you think of work/life balance?

With any career or project, there is always a risk of abandoning family responsibilities or the need to relax. I find my work to be both rewarding and relaxing (my career in cryptocurrencies and blockchain). But, I still spend more than half of my time with family and friends. For me, the balance is crucial to leading a fulfilling life.
Many of these friends are interested in the same things as me, and i always try to learn from those with different interests and skills.

What is the best advice you can give to the people who are reading this?

Don’t get sucked into ICOs. They are scams
More about this:
(a) Is every ICOs a scam?
(b) ICOs & altcoins rise and fall, but Bitcoin endures
-Philip Raymond
Phil Blockchain columnist: Dozens of published articles. Additionally, Admin/Moderator of Largest Bitcoin group; 30,000+…bitcoinreferee.com
Thanks for reading. If you have thoughts on this, be sure to leave a comment.
If you found this article helpful, smash the clap 👏 button.
You can follow me on twitter for more.
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My letter today sent opposing legislation unfriendly to bitcoin - help by demanding a veto of the insanity. Thank you

The following letter was sent to Governor Brown of CA who has not yet acted on AB 1460 (2017-2018). The bill is sitting on his desk as of the date of this post, July 16, 2017. The CA Governor can be written (please encourage him to veto AB 1460) at: https://govapps.gov.ca.gov/gov39mail/ -- anyone around the world can contact him through that form.
------(The below letter in full is under the 6000 character limit for the Governor's contact webform.----
Dear Governor Brown,
I write you with my sincere concerns about AB 1460, which passed the Legislature and has been sitting on your desk since July 5, 2017.
Today is July 16, 2017. Thus seven whole weekdays have passed (I am not counting weekend days) since the legislation was sent to your desk for signature or veto.
I absolutely urge you to veto this bill.
Before I explain exactly why, let me tell you a brief story. This story is regarding the Swiss canton known as Zug. Back in 2008, according to the government of the canton, or region, of which Zug is the capital, there were 27,000 companies on its commercial register - one for every man, woman and child in the town, leaving a few hundred to spare. Today, Zug has recently become the first town in the world to accept bitcoin for public services. That town is an innnovator in many economic respects. People have been able to pay in bitcoin for whatever they want to there, including government services, without restraint, without licensing requirements, other limitations, or reprisal by the state. It's a great situation and should be replicated in other places. Furthermore, recently news has come out about Bitcoin Suisse AG, a regulated crypto financial broker, asset manager and service provider based in -- you guessed it -- Zug, Switzerland. They have made it so that people across Europe will be able to buy and exchange bitcoin directly through that bank. People don't have to use Bitcoin Suisse AG -- they can transact in bitcoin (or other decentralized, distributed systems) directly peer to peer with each other without intermediaries. However, entities such as Bitcoin Suisse are now one option that people there have.
Why did I tell you this story in the context of AB 1460?
Because Dababneh is trying to destroy California's economy and limit it with useless bills like this one, AB 1460.
This seemingly innocent bill, like so much of Dababneh's nonsense which he proposes in the Legislature for the banking industry, has an interesting and rather problematic provision buried in it.
It states that "Any fiduciary funds, as defined in Section 1733, received as cash, lawful money of the United States, or freely tradeable currency of any foreign government, by any person licensed, whether under a permanent license, restricted license, temporary license, or certificate of convenience, to act in any of the capacities specified in Section 1733, shall comply with Section 1734, but shall initially be maintained in a trust account in a bank or savings and loan association in California, licensed by the State of California or the United States government and insured by the FDIC." This is what Dababneh wanted in the bill, but it is also why I am asking you to veto it.
As you know, in 2013-2014, a law was passed in California that allowed people to (if they wanted to) use bitcoin (and other similar things) as "lawful money." (That was AB 129 (2013-2014).) Thus, what Dababneh (who is very anti bitcoin) has done with AB 1460 is made it so that people can only initially maintain funds received by licensees (under the California Insurance Code) premiums or return premiums on or under any policy of insurance or undertaking of bail, in a trust account in a bank or savings and loan association in California.
In other words, if I wanted to use bitcoin to directly pay a licensee for a premium amount relating to insurance or bail in California, AB 1460 is saying that this is illegal and I can't do it, because the money will have to go through a bank first. And since (unlike in Switzerland) there are no banks in the United States that allow customers to make exchanges in currencies directly through the bank, then basically that means that Dababneh's 1460 makes various classes of transactions completely illegal in California.
It should also go without saying that since there are more than 900 cryptocurrencies available over the internet as of 11 July 2017 and growing, and these are distributed and decentralized, that Dababneh is literally through AB 1460, directly classifying transactions peer to peer from any of these (for the purposes of premium payment for insurance, or bail) as ILLEGAL in California. I wonder how the State of California will enforce such a law?
Yes, another unenforceable law, attempting to limit what we spend in order to pay for services.
If you do not veto AB 1460, and if you allow it to become law, what kind of message will that send to Dababneh - and the rest of the California legislature? They will feel as though they should have free rein to keep us from being able to pay directly for other services, also.
If AB 1460 is allowed to pass, the State Legislature might return with another bill like AB 1460, but one designed to target BitcoinIRAs or any kinds of funds used for any other purposes. The State is clearly intruding into the space of how people wish to hold and manage OUR funds.
Dababneh's view is that our transactions should be controlled by bank monopoly. The people of the State have already overwhelmingly rejected Dababneh's proposed bank monopolies in California when we rejected Dababneh's AB 1326 (2015-2016) and when we, the people of the State also rejected AB 1123 (2017-2018), which is anticipated to simply die in committee. Because many people didn't understand the wording of AB 1460 (2017-2018), it was allowed to pass because it was not so explicit as the prior bills by Dababneh that we've defeated, but it is evident AB 1460 has the same kind of problems conceptually as did AB 1326 (2015-2016) and AB 1123 (2017-2018).
We do not want the people of California and the people of the world to be restrained in economic decisions about how they choose to pay for services.
I urge you to veto AB 1460.
Thank you.
Respectfully,
Colin Gallagher Chair, Education Committee, Bitcoin Foundation
Member, Advisory Boards, Lifeboat Foundation:
Complex Systems Board
Human-Nonhuman Relationship Board
New Money Systems Board
Philosophy Board
submitted by pcvcolin to Bitcoin [link] [comments]

Quickly convincing global charities to use bitcoin may be the best way to stave off regulation [Wall Street analyst]

I agree with this simple legitimizing strategy recently proposed by Nick Colas, a Wall Street analyst who showed early interest in Bitcoin and who works as Group Chief Market Strategist for ConvergEx.
Here are the two most relevant paragraphs from his longish, excellent article, Bitcoin: What Doesn’t Kill You Makes You Stronger (available through a paywall here or copypasted here):
My humble recommendation to venture capitalists to avoid further regulation or an outright ban is to quickly convince global charities to use the bitcoin system for both donations and money transfers. It is, after all, ideally suited to the purpose of taking in money in rich countries and efficiently moving it abroad to places with limited financial infrastructure. According the National Philanthropic Trust, individual Americans gave $218 billion in 2011, the most recent information available, and there are over one million charitable groups operating in the U.S. Presumably they all have bank accounts to process payments and would like a more efficient way to distribute funds.
That move alone would begin to remove the “Cokehead currency” imprimatur which bitcoin still struggles to overcome due to some early press about its use on illegal drug distribution websites. If shutting down bitcoin would hurt worthwhile charities by pushing them back into a higher-cost banking system, regulators might think twice about excessive regulation or an outright ban. This would give the bitcoin ecosystem time to resolve the security and compliance issues we’ve described previously.
The foundations/charities/NGOs that I know of that already support Bitcoin are:
Some ideas for mainstream targets for Bitcoin donation campaigns are of course the Red Cross and Amnesty International but good stepping stones could be organizations like the Linux Foundation, the Long Now Foundation, TED, NPR, and the EFF (which sadly withdrew its acceptance of Bitcoin donations last year, but they really should reconsider). Even Google.org, the philantropic arm of Google could set an important example by using it internally (and Mike Hearn, core Bitcoin programmer, is a Googler).
Thoughts?
submitted by eliazar to Bitcoin [link] [comments]

BitStats:

Not to mention individuals.
Aquatic Foundations
Art
Bitcoin organizations and companies:
Drug sites
Freedom tech
Justice - Law
Politics
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NOTES [Tor seems woefully underfunded – This needs to be addressed.
I2P stopped posting his meetings on his site right around the time bitcoin prices went up -Early retirement?]
submitted by BitStatistics to Bitcoin [link] [comments]

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BITCOIN IS THE LIFEBOAT FOR ALL HUMAN EMOTION!!! LET ME EXPLAIN

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