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The Great Bitcoin Bull Market Of 2017 by Trace Mayer
By: Trace Mayer, host of The Bitcoin Knowledge Podcast. Originally posted here with images and Youtube videos. I just got back from a two week vacation without Internet as I was scouring some archeological ruins. I hardly thought about Bitcoin at all because there were so many other interesting things and it would be there when I got back. Jimmy Song suggested I do an article on the current state of Bitcoin. A great suggestion but he is really smart (he worked on Armory after all!) so I better be thorough and accurate! Therefore, this article will be pretty lengthy and meticulous. BACKGROUND As I completely expected, the 2X movement from the New York Agreement that was supposed to happen during the middle of my vacation flopped on its face because Jeff Garzik was driving the clown car with passengers willfully inside like Coinbase, Blockchain.info, Bitgo and Xapo and there were here massive bugS and in the code and miners like Bitmain did not want to allocate $150-350m to get it over the difficulty adjustments. I am very disappointed in their lack of integrity with putting their money where their mouths are; myself and many others wanted to sell a lot of B2X for BTC! On 7 December 2015, with Bitcoin trading at US$388.40, I wrote The Rise of the Fourth Great Bitcoin Bubble. On 4 December 2016, with Bitcoin trading at US$762.97, I did this interview:
As of 26 November 2017, Bitcoin is trading around US$9,250.00. That is an increase of about 2,400% since I wrote the article prognosticating this fourth great Bitcoin bull market. I sure like being right, like usual (19 Dec 2011, 1 Jul 2013), especially when there are financial and economic consequences. With such massive gains in such a short period of time the speculative question becomes: Buy, Hold or Sell? FUNDAMENTALS Bitcoin is the decentralized censorship-resistant Internet Protocol for transferring value over a communications channel. The Bitcoin network can use traditional Internet infrastructure. However, it is even more resilient because it has custom infrastructure including, thanks to Bitcoin Core developer Matt Corrallo, the FIBRE network and, thanks to Blockstream, satellites which reduce the cost of running a full-node anywhere in the world to essentially nothing in terms of money or privacy. Transactions can be cheaply broadcast via SMS messages. SECURITY The Bitcoin network has a difficulty of 1,347,001,430,559 which suggests about 9,642,211 TH/s of custom ASIC hardware deployed. At a retail price of approximately US$105/THs that implies about $650m of custom ASIC hardware deployed (35% discount applied). This custom hardware consumes approximately 30 TWh per year. That could power about 2.8m US households or the entire country of Morocco which has a population of 33.85m. This Bitcoin mining generates approximately 12.5 bitcoins every 10 minutes or approximately 1,800 per day worth approximately US$16,650,000. Bitcoin currently has a market capitalization greater than $150B which puts it solidly in the top-30 of M1 money stock countries and a 200 day moving average of about $65B which is increasing about $500m per day. Average daily volumes for Bitcoin is around US$5B. That means multi-million dollar positions can be moved into and out of very easily with minimal slippage. When my friend Andreas Antonopolous was unable to give his talk at a CRYPSA event I was invited to fill in and delivered this presentation, impromptu, on the Seven Network Effects of Bitcoin. These seven network effects of Bitcoin are (1) Speculation, (2) Merchants, (3) Consumers, (4) Security [miners], (5) Developers, (6) Financialization and (7) Settlement Currency are all taking root at the same time and in an incredibly intertwined way. With only the first network effect starting to take significant root; Bitcoin is no longer a little experiment of magic Internet money anymore. Bitcoin is monster growing at a tremendous rate!!
SPECULATION For the Bitcoin price to remain at $9,250 it requires approximately US$16,650,000 per day of capital inflow from new hodlers. Bitcoin is both a Giffen good and a Veblen good. A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect. Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand. There are approximately 16.5m bitcoins of which ~4m are lost, ~4-6m are in deep cold storage, ~4m are in cold storage and ~2-4m are salable. (http://www.runtogold.com/images/lost-bitcoins-1.jpg) (http://www.runtogold.com/images/lost-bitcoins-2.jpg) And forks like BCash (BCH) should not be scary but instead be looked upon as an opportunity to take more territory on the Bitcoin blockchain by trading the forks for real bitcoins which dries up more salable supply by moving it, likely, into deep cold storage. According to Wikipedia, there are approximately 15.4m millionaires in the United States and about 12m HNWIs ($30m+ net worth) in the world. In other words, if every HNWI in the world wanted to own an entire bitcoin as a 'risk-free asset' that cannot be confiscated, seized or have the balance other wise altered then they could not. For wise portfolio management, these HNWIs should have at least about 2-5% in gold and 0.5-1% in bitcoin. Why? Perhaps some of the 60+ Saudis with 1,700 frozen bank accounts and about $800B of assets being targetted might be able to explain it to you. In other words, everyone loves to chase the rabbit and once they catch it then know that it will not get away. RETAIL There are approximately 150+ significant Bitcoin exchanges worldwide. Kraken, according to the CEO, was adding about 6,000 new funded accounts per day in July 2017. Supposedly, Coinbase is currently adding about 75,000 new accounts per day. Based on some trade secret analytics I have access to; I would estimate Coinbase is adding approximately 17,500 new accounts per day that purchase at least US$100 of Bitcoin. If we assume Coinbase accounts for 8% of new global Bitcoin users who purchase at least $100 of bitcoins (just pulled out of thin error and likely very conservative as the actual number is perhaps around 2%) then that is approximately $21,875,000 of new capital coming into Bitcoin every single day just from retail demand from 218,750 total new accounts. What I have found is that most new users start off buying US$100-500 and then after 3-4 months months they ramp up their capital allocation to $5,000+ if they have the funds available. After all, it takes some time and practical experience to learn how to safely secure one's private keys. To do so, I highly recommendBitcoin Core (network consensus and full validation of the blockchain), Armory (private key management), Glacier Protocol (operational procedures) and a Puri.sm laptop (secure non-specialized hardware). WALL STREET There has been no solution for large financial fiduciaries to invest in Bitcoin. This changed November 2017. LedgerX, whose CEO I interviewed 23 March 2013, began trading as a CFTC regulated Swap Execution Facility and Derivatives Clearing Organization. The CME Group announced they will begin trading in Q4 2017 Bitcoin futures. The CBOE announced they will begin trading Bitcoin futures soon. By analogy, these institutional products are like connecting a major metropolis's water system (US$90.4T and US$2 quadrillion) via a nanoscopic shunt to a tiny blueberry ($150B) that is infinitely expandable. This price discovery could be the most wild thing anyone has ever experienced in financial markets. THE GREAT CREDIT CONTRACTION The same week Bitcoin was released I published my book The Great Credit Contraction and asserted it had now begun and capital would burrow down the liquidity pyramid into safer and more liquid assets. (http://www.runtogold.com/images/Great-Credit-Contraction-Liquidity-Pyramid.jpg) Thus, the critical question becomes: Is Bitcoin a possible solution to the Great Credit Contraction by becoming the safest and most liquid asset? BITCOIN'S RISK PROFILE At all times and in all circumstances gold remains money but, of course, there is always exchange rate risk due to price ratios constantly fluctuating. If the metal is held with a third-party in allocated-allocated storage (safest possible) then there is performance risk (Morgan Stanley gold storage lawsuit). But, if properly held then, there should be no counter-party risk which requires the financial ability of a third-party to perform like with a bank account deposit. And, since gold exists at a single point in space and time therefore it is subject to confiscation or seizure risk. Bitcoin is a completely new asset type. As such, the storage container is nearly empty with only $150B. And every Bitcoin transaction effectively melts down every BTC and recasts it; thus ensuring with 100% accuracy the quantity and quality of the bitcoins. If the transaction is not on the blockchain then it did not happen. This is the strictest regulation possible; by math and cryptography! This new immutable asset, if properly secured, is subject only to exchange rate risk. There does exist the possibility that a software bug may exist that could shut down the network, like what has happened with Ethereum, but the probability is almost nil and getting lower everyday it does not happen. Thus, Bitcoin arguably has a lower risk profile than even gold and is the only blockchain to achieve security, scalability and liquidity. To remain decentralized, censorship-resistant and immutable requires scalability so as many users as possible can run full-nodes. (http://www.runtogold.com/images/ethereum-bitcoin-scability-nov-2017.png) TRANSACTIONS Some people, probably mostly those shilling alt-coins, think Bitcoin has a scalability problem that is so serious it requires a crude hard fork to solve. On the other side of the debate, the Internet protocol and blockchain geniuses assert the scalability issues can, like other Internet Protocols have done, be solved in different layers which are now possible because of Segregated Witness which was activated in August 2017. Whose code do you want to run: the JV benchwarmers or the championship Chicago Bulls? As transaction fees rise, certain use cases of the Bitcoin blockchain are priced out of the market. And as the fees fall then they are economical again. Additionally, as transaction fees rise, certain UTXOs are no longer economically usable thus destroying part of the money supply until fees decline and UTXOs become economical to move. There are approximately 275,000-350,000 transactions per day with transaction fees currently about $2m/day and the 200 DMA is around $1.08m/day. (http://www.runtogold.com/images/bitcoin-transaction-fees-nov-2017.png) What I like about transaction fees is that they somewhat reveal the financial health of the network. The security of the Bitcoin network results from the miners creating solutions to proof of work problems in the Bitcoin protocol and being rewarded from the (1) coinbase reward which is a form of inflation and (2) transaction fees which is a form of usage fee. The higher the transaction fees then the greater implied value the Bitcoin network provides because users are willing to pay more for it. I am highly skeptical of blockchains which have very low transaction fees. By Internet bubble analogy, Pets.com may have millions of page views but I am more interested in EBITDA. DEVELOPERS Bitcoin and blockchain programming is not an easy skill to acquire and master. Most developers who have the skill are also financially independent now and can work on whatever they want. The best of the best work through the Bitcoin Core process. After all, if you are a world class mountain climber then you do not hang out in the MacDonalds play pen but instead climb Mount Everest because that is where the challenge is. However, there are many talented developers who work in other areas besides the protocol. Wallet maintainers, exchange operators, payment processors, etc. all need competent developers to help build their businesses. Consequently, there is a huge shortage of competent developers. This is probably the largest single scalability constraint for the ecosystem. Nevertheless, the Bitcoin ecosystem is healthier than ever before. (http://www.runtogold.com/images/bitcoin-ecosystem.jpg)(/images/bitcoin-ecosystem-small.jpg) SETTLEMENT CURRENCY There are no significant global reserve settlement currency use cases for Bitcoin yet. Perhaps the closest is Blockstream's Strong Federations via Liquid. PRICE There is a tremendous amount of disagreement in the marketplace about the value proposition of Bitcoin. Price discovery for this asset will be intense and likely take many cycles of which this is the fourth. Since the supply is known the exchange rate of Bitcoins is composed of (1) transactional demand and (2) speculative demand. Interestingly, the price elasticity of demand for the transactional demand component is irrelevant to the price. This makes for very interesting dynamics! (http://www.runtogold.com/images/bitcoin-speculation.jpg) On 4 May 2017, Lightspeed Venture Partners partner Jeremy Liew who was among the early Facebook investors and the first Snapchat investor laid out their case for bitcoin exploding to $500,000 by 2030. On 2 November 2017, Goldman Sachs CEO Lloyd Blankfein (https://www.bloomberg.com/news/articles/2017-11-02/blankfein-says-don-t-dismiss-bitcoin-while-still-pondering-value)said, "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus." On 12 Sep 2017, JP Morgan CEO called Bitcoin a 'fraud' but conceded that "(http://fortune.com/2017/09/12/jamie-dimon-bitcoin-cryptocurrency-fraud-buy/)Bitcoin could reach $100,000". Thus, it is no surprise that the Bitcoin chart looks like a ferret on meth when there are such widely varying opinions on its value proposition. I have been around this space for a long time. In my opinion, those who scoffed at the thought of $1 BTC, $10 BTC (Professor Bitcorn!), $100 BTC, $1,000 BTC are scoffing at $10,000 BTC and will scoff at $100,000 BTC, $1,000,000 BTC and even $10,000,000 BTC. Interestingly, the people who understand it the best seem to think its financial dominance is destiny. Meanwhile, those who understand it the least make emotionally charged, intellectually incoherent bearish arguments. A tremendous example of worldwide cognitive dissonance with regards to sound money, technology and the role or power of the State. Consequently, I like looking at the 200 day moving average to filter out the daily noise and see the long-term trend. (http://www.runtogold.com/images/bitcoin-price-200dma-nov-2017.png) Well, that chart of the long-term trend is pretty obvious and hard to dispute. Bitcoin is in a massive secular bull market. The 200 day moving average is around $4,001 and rising about $30 per day. So, what do some proforma situations look like where Bitcoin may be undervalued, average valued and overvalued? No, these are not prognostications. (http://www.runtogold.com/images/bitcoin-price-pro-forma.png) Maybe Jamie Dimon is not so off his rocker after all with a $100,000 price prediction. We are in a very unique period of human history where the collective globe is rethinking what money is and Bitcoin is in the ring battling for complete domination. Is or will it be fit for purpose? As I have said many times before, if Bitcoin is fit for this purpose then this is the largest wealth transfer in the history of the world. CONCLUSION Well, this has been a brief analysis of where I think Bitcoin is at the end of November 2017. The seven network effects are taking root extremely fast and exponentially reinforcing each other. The technological dominance of Bitcoin is unrivaled. The world is rethinking what money is. Even CEOs of the largest banks and partners of the largest VC funds are honing in on Bitcoin's beacon. While no one has a crystal ball; when I look in mine I see Bitcoin's future being very bright. Currently, almost everyone who has bought Bitcoin and hodled is sitting on unrealized gains as measured in fiat currency. That is, after all, what uncharted territory with daily all-time highs do! But perhaps there is a larger lesson to be learned here. Riches are getting increasingly slippery because no one has a reliable defined tool to measure them with. Times like these require incredible amounts of humility and intelligence guided by macro instincts. Perhaps everyone should start keeping books in three numéraires: USD, gold and Bitcoin. Both gold and Bitcoin have never been worth nothing. But USD is a fiat currency and there are thousands of those in the fiat currency graveyard. How low can the world reserve currency go? After all, what is the risk-free asset? And, whatever it is, in The Great Credit Contraction you want it! What do you think? Disagree with some of my arguments or assertions? Please, eviscerate them on Twitter or in the comments!
The owners of Blockstream are spending $76 million to do a "controlled demolition" of Bitcoin by manipulating the Core devs & the Chinese miners. This is cheap compared to the $ trillions spent on the wars on Iraq & Libya - who also defied the Fed / PetroDollar / BIS private central banking cartel.
The fiat masters of the universe are afraid they'll lose power if Bitcoin succeeds. They're afraid that trillions of dollars in legacy fiat will suddenly plunge in relative value, if Bitcoin shoots to the moon. So they're trying to quietly cripple Bitcoin - congesting the network, suppressing the price, and offering 1.7MB centrally-planned blocksize with their SegWit poison pill - which will complicate all further upgrades and permanently cement their power - while permanently crippling Bitcoin. In order to provide some support suggesting that yes they would really go that far, we have to dive into some pretty nasty and shadowy geopolitics. What do the wars on Iraq and Libya, JPMorgan's naked short selling of silver, and the book "Confessions of an Economic Hit Man" all have in common? Whenever a currency tries to compete with the Fed / Petrollar / BIS  private central banking cartel, the legacy fiat power élite destroys that currency (if the currency has a central point of control - which Bitcoin does have: the Core devs, the Chinese miners, and Theymos).  BIS = the Bank for International Settlements, often referred to as "the central bank of central banks" Trillions of dollars were spent to take down the central banks of Iraq and Libya, because they defied the hegemony of the Fed / Petrodollar / BIS private central banking cartel. https://duckduckgo.com/?q=ellen+brown+iraq+libya+bis And while you're googling, you might want to look up whistleblower Andrew Maguire (who exposed how JPMorgan uses naked short selling to "dump" nonexistent silver in order to prevent the USDollar from collapsing). https://duckduckgo.com/?q=andrew+maguire+jpmorgan And you might also want to look up John Perkins, whose book "Confessions of an Economic Hit Man" is another major eye-opener about how "the Washington consensus" manages to rule the world by printing fiat backed by violence and justified by "experts" and propaganda. https://duckduckgo.com/?q=john+perkins+confessions+economic+hit+man That's just how the world works - although you have to do a bit of research to discover those unpleasant facts. So for the legacy fiat power élite, $76 million to suppress Bitcoin (and quietly maintain their fiat power) is chump change in comparison. You all knew that "they" were going to try to destroy Bitcoin, didn't you? Even Jamie Dimon practically admitted as much. https://duckduckgo.com/?q=jamie+dimon+bitcoin Did you really think they would be clumsy enough to try to ban it outright? Private central bankers run this planet, and they have never hesitated to use their lethal combination of guns, debt and psy-ops to maintain their power. They pay for the wars, they keep people enslaved to debt, they censor discussion and create propaganda, and they "dumb down" the population so nobody knows what's really going on. Print up a trillion dollars here, kill a million people there, brainwash everyone with censorship and propaganda. That's their modus operandi. So we shouldn't be surprised if they they ruthlessly and covertly try to take down Bitcoin. They have the means, and they have the motivation. It was only a matter of time before they identified the three weakest centralized points in the Bitcoin system:
the Core/Blockstream devs
the Chinese miners
Theymos and the rest of the corrupt mods on r\bitcoin
And so that's where they applied the pressure. All three of those players listed above are easy "soft" targets up against the full-spectrum of covert dirty tricks deployed by the legacy fiat power élite. The central bankers, via AXA, are paying filthy fiat to Blockstream devs, and to their Minister of Propaganda u/brg444. Blockstream is a "front company" which has been established for the purpose of performing a "controlled demolition" of Bitcoin. So Satoshi messed up. He messed up by baking in a "temporary" 1 MB constant into the code at the last minute as a clumsy anti-spam kludge - and then not taking it out again soon enough via a hard fork. Now the global legacy power élite have managed to use "social engineering" to retain that 1MB temporary kludge (and now offer us a pathetic 1.7MB blocksize via very messy soft-fork upgrade which will massively complicate future upgrades). This is their plan. This is their secret poison pill for Bitcoin. SegWit is the trojan which will be the final nail in Bitcoin's coffin: giving only a pathetic 1.7MB centrally-planned blocksize - via a soft-fork that will mess up Bitcoin's code so much, it will make it almost impossible to upgrade Bitcoin properly in the future. The only way to stop them is to:
Reject Core/Blockstream's inferior code - with its current 1MB limit, and its upcoming SegWit 1.7MB limit - code based on CENTRALIZED BLOCKSIZE planning, and paid for by central bankers.
Install superior code like Bitcoin Unlimited / Bitcoin Classic - which supports MARKET-BASED blocksize, clean safe hard forking, and features like FlexTrans (which does the same thing as SegWit, only with much cleaner code).
If Ripple supersedes bitcoin in market cap, ignore it; Ripple is nothing “new”
It doesn’t really mean anything if Ripple supersedes the market cap of Bitcoin, because Ripple is a trivially distributed system. I argue that it is trivially distributed because the right to verify payment is controlled by an exclusive oligopoly of nodes. To gain the incentive to be a node, in brief terms, is to be a bank. Don’t believe me? Where are the miners? There are a total of 55 validator nodes, “the equivalent of a miner”, which are essentially super computers run by institutional banking. What you end up with is nothing more than a classic gossip protocol between banks with some nifty cryptography wedged in. So just like Jamie Dimon says “who gives a fuck about Bitcoin,” I say “who gives a fuck about Ripple.” First person to convince me otherwise gets 0.01 BTC.
I posted this as a comment yesterday, but I think it could use more discussion: For a long time I have waivered back and forth between the blocksize/hardfork debate. I do believe I have settled my mind on the issue. Listening to Jamie Dimon speak about governments attempt to shut Bitcoin down "if it gets too big" reminded me really what it is we are up against. Bitcoin seeks to displace centuries old power structures, and they certainly won't go without a fight. We've been ignored up to this point, but now financial institutions and governments are taking notice. Bitcoin must remain as decentralized and censorship resistant as possible. If we create a situation where nodes and miners have no possibility of operating anonymously, then they could theoretically all be targeted. Increasing centralization decreases the targets. If for some reason major governments, the US, Russia, China, and the EU decided to outlaw bitcoin and/or create onerous regulations, a highly decentralized network would be able to adapt. People would be able to mine behind TOR and VPN, people in South America and even some places in Africa could keep mining on. Jamie Dimon makes it clear that he will use his influence to try to crush Bitcoin if it becomes a threat to his empire. I want Bitcoin to be as resilient as possible to any and all of these threats. Additionally, a hardfork without a true state of emergency demonstrates that this currency and network can be changed by the will of the majority. We do not want a currency and network controlled by a political process. Yes the Core maintainers are a small group, but Bitcoin will grow beyond Core development. As the ecosystem grows, it will become more and more difficult to make any changes that are not absolutely necessary. This is a great property of Bitcoin, to be absolutely resistant to change. It inspires confidence that other parameters won't be changed in the future. Another point I want to bring up is the halving we will experience later this year. We all want to believe that the price will increase significantly in response to the halving. This is far from guaranteed. A rising fee market will help subsidize miners during what WILL be an incredibly volatile year. We, as the Bitcoin community have created something the world has never seen before. Bitcoin is worthless if we make it fragile enough to be ruined by State sanctions. Bitcoin is invaluable to me because it is anti-fragile.
The owners of Blockstream are spending $75 million to do a "controlled demolition" of Bitcoin by manipulating the Core devs & the Chinese miners. This is cheap compared to the $ trillions spent on the wars on Iraq & Libya - who also defied the Fed / PetroDollar / BIS private central banking cartel.
At this point, that's really the simplest "Occam's razor" explanation for Blockstream's "irrational" behavior. Once you let go of your irrational belief that Blockstream's owners actually want to get a "return" on their $75 million investment, from "innovations" such as sidechains technology (Lightning Network - LN) - only then will you be able to see that Blockstream's apparently "irrational" behavior is actually perfectly rational. They say their goal is to "get rich" from LN. And if you believe that, I have a Dogecoin I'd like to sell you. What are the real goals of Blockstream's owners? Blockstream's owners don't give a fuck about the Rube Goldberg vaporware which some focus group christened "the Lightning Network". That name is just there to placate the masses of noobs who congregate on /bitcoin. The owners of Blockstream are laughing at Adam Back as he continues to labor in isolation, the stereotypical math PhD who is clueless about economics, toiling away creating a slow, overpriced, centralized "level 2" payment layer on top of Bitcoin - a complicated contraption which may never work. They have neutralized him - but meanwhile, he thinks he's a rock star now, as "CEO of Blockstream". Little does he know he is the worst "collaborator" of all. Investors are risk-averse If Blockstream's owners really wanted to get rich from LN, do you really think they would freeze the "max blocksize" at 1 MB for the next year, when this 1-year freeze obviously risks destroying Bitcoin itself (along with their investment)? Investors are not stupid - and they are risk-averse. They know that if there's no Bitcoin, then there's no Lightning - so their $75 million investment would go out the window. And all the "Core" devs have actually gone on the record stating (in their less-guarded moments, or before they signed their employment contracts with Blockstream) that 2 MB blocks would work fine - even 3-4 MB blocks. Empirical research by miners has shown that 3-4 MB blocks - or even bigger - would work fine right now. So why aren't the Blockstream investors pressuring the Core devs to go to 2 MB now, to remove the risk of Bitcoin failing? If Blockstream did the "rational" thing and agreed to 2 MB now, the price would shoot up, the community would heal, innovation would start happening again. Bitcoin would proper, and Blockstream's investors would have a good chance at making a "return" on their investment. For some reason, Blockstream's investors are trying to stop all this from happening. So we have to look for a different explanation. If the owners of Blockstream don't want to get rich from the Lightning Network, then what do they really want? The simplest explanation is that the real risk which Blockstream's investors are "averse" to is the possibility of trillions of dollars in legacy fiat suddenly plunging in relative value, if Bitcoin were to shoot to the moon. They're afraid they'll lose power if Bitcoin succeeds. In order to provide some support for this radical but simple hypothesis, we have to dive into some pretty nasty and shadowy geopolitics. What do the wars on Iraq and Syria, JPMorgan's naked short selling of silver, and the book "Confessions of an Economic Hit Man" all have in common? Whenever a currency tries to compete with the Fed / Petrollar / BIS  private central banking cartel, the legacy fiat power élite destroys that currency (if the currency has a central point of control - which Bitcoin does have: the Core devs, the Chinese miners, and Theymos).  BIS = the Bank for International Settlements, often referred to as "the central bank of central banks" Trillions of dollars were spent to take down the central banks of Iraq and Libya, because they defied the hegemony of the Fed / Petrodollar / BIS private central banking cartel. https://duckduckgo.com/?q=ellen+brown+iraq+libya+bis And while you're googling, you might want to look up whistleblower Andrew Maguire (who exposed how JPMorgan uses naked short selling to "dump" nonexistent silver in order to prevent the USDollar from collapsing). https://duckduckgo.com/?q=andrew+maguire+jpmorgan And you might also want to look up John Perkins, whose book "Confessions of an Economic Hit Man" is another major eye-opener about how "the Washington consensus" manages to rule the world by printing fiat backed by violence and justified by "experts" and propaganda. https://duckduckgo.com/?q=john+perkins+confessions+economic+hit+man That's just how the world works - although you have to do a bit of research to discover those unpleasant facts. So for the legacy fiat power élite, $75 million to take down Bitcoin (and maintain their power) is chump change in comparison. You all knew that "they" were going to try to destroy Bitcoin, didn't you? Even Jamie Dimon practically admitted as much. https://duckduckgo.com/?q=jamie+dimon+bitcoin Did you really think they would be clumsy enough to try to ban it outright? Private central bankers run this planet, and they have never hesitated to use their lethal combination of guns, debt and psyops to maintain their power. They pay for the wars, they keep people enslaved to debt, and they dumb down the population so nobody knows what's really going on. Print up a trillion dollars here, kill a million people there, brainwash everyone with censorship and propaganda. That's their modus operandi. So we shouldn't be surprised if they they ruthlessly and covertly try to take down Bitcoin. They have the means and the motivation. It was only a matter of time before they identified the three weakest centralized points in the Bitcoin system:
the Core devs
the Chinese miners
And so that's where they applied the pressure. I'm sorry to be rude, but all three of those players listed above are idiot savants / sitting ducks up against the full-spectrum of covert dirty tricks deployed by the legacy fiat power élite - whether it's money, ego-stroking, or pretending to go along with their crazy cypherpunk beliefs that Bitcoin will only prosper as long as it remains small enough to run a node on a dial-up internet on a Raspberri Pi in Luke-Jr's basement. So the simplest explanation is this: Blockstream is a "front company" which has been established for the purpose of performing a "controlled demolition" of Bitcoin. So Satoshi messed up. He messed up by baking in a 1 MB constant into the code at the last minute as a clumsy anti-spam kludge - which could unfortunately only be removed via a hard fork - and which the global legacy power élite have figured how to retain via social engineering directed at clueless Core devs and clueless Chinese miners (and clueless forum moderators). So why is the price is still fairly stable? Heck, I'm so paranoid, I wouldn't even put it past them to try to interfere with investors who might otherwise be trying to send a signal by "voting with their feet". In other words, several observers have commented that the only way to liberate Bitcoin from the cartel of Chinese miners and Core/Blockstream devs is to crash the price. And many other observers are puzzled that the price isn't crashing now that Bitcoin is being strangled in its cradle by Blockstream. Well, this wouldn't be the first time that the Fed / PetroDollar / BIS private central banking cartel sent in the "plunge protection" team to artificially prop up their fragile, centralized, permissioned currency. https://duckduckgo.com/?q=plunge+protection+team Who knows, they could easily have printed up a few million dollars in phoney fiat and given it to players like Jamie Dimon or Blythe Masters who probably have access to the HFT (high frequency trading) tools to keep the price exactly where they want it, for as long as they want it. Manipulating an unregulated $6 billion market would be child's play for them. The point is, we have no idea who is buying bitcoins at this price right now. Or what their motives are. I know that if I were part of the legacy fiat power élite, this is exactly what I'd be doing now: buy off the devs, pressure the miners, encourage the censors, and play with the price - so nobody knows what the hell is going on. Prevent the price from crashing for the next year (so the community won't have a "smoking gun" to reject the Core devs and the Chinese miners)... and prevent it from going to the moon also (so the dollar won't look like it's crashing). Not too hard to do, especially if you have unlimited fiat at your disposal. 2016 is the perfect time to perform a "controlled demolition" on Bitcoin. All the forces in the global economy are now aligned for a massive economic storm of epic proportions. Without Blockstream's interference, Bitcoin's price would be shooting to the moon right now, because it's the only digital asset class free of counterparty risk, compared to all the other garbage floating around in the system:
Deutsche Bank is teetering on the edge of collapse: that alone would be 5x the size of the Lehman collapse. (Deutsche has about $75 trillion in nominal derivatives exposure - 1000x as big as its mere $58 billion in assets. It's probably already bankrupt, and is merely being held together with chewing gum and paper clips accounting tricks.)
After multiple rounds of QE (quantitative easing), the central bankers have shot their wad, and have no tools left to stimulate the economy.
The 8-year US president reign will end this fall - which is when all the financial dirt that was swept under the rug always comes out. (Recall that Timothy Geithner went to Congress begging for the first $1 trillion of the bailouts after the 2008 election, in early November.)
And the Bitcoin halvening is coming up.
Bitcoin is one of the only safe harbors in this oncoming economic storm. So it should be skyrocketing right now - if there were no artificial constraints on its growth. So if Blockstream were not doing a controlled demolition of Bitcoin right now by freezing the blocksize to 1 MB for the next year, then the Bitcoin price could easily go to 4,000 USD - instead languishing around 400 USD. In other words: the USDollar would be crashing 10-fold versus Bitcoin. The only bulwark against Bitcoin rising 10x versus the USDollar is Blockstream's stranglehold on the Core devs and the Chinese miners. Just like the only bulwark against precious metals rising 10x versus the USDollar right now is JPMorgan's naked short selling of phoney (paper) precious metals, mainly via the SLV ETF (exchange traded fund). https://duckduckgo.com/?q=jpmorgan+naked+short+selling+slv (Most informed estimates say that there is 100x more "fake" or "paper" gold and silver in existence, versus "physical" gold and silver. So it's easy for JPMorgan to suppress the silver price: just naked-short-sell "paper" silver. They do this as a service to the Fed, to prop up the dollar. And your tax dollars pay for this fraud.) The silence of the devs Isn't it strange how not a single Blockstream dev dares to "break ranks" on the 2 MB taboo? This unanimous code of silence among Blockstream devs speaks volumes. Devs on open-source projects like this (particularly ones which were founded on principles of "permissionless" "decentralization") would never maintain this kind of uniform code of developer silence - especially when their precious open-source project is on the verge of failing. Most devs are rebels - especially Bitcoin devs - ready to break ranks at the drop of a hat, and propose their brilliant ideas to save the day. But right now - utter silence. This bizarre code of silence which we are now seeing from the "Core" devs must be the result of some major behind-the-scenes arm-twisting by the owners of Blocsktream, who must have made it abundantly clear that any dev who attempts to provide a simple on-chain scaling solution will be severely punished - financially, legally and/or socially. Blockstream has deliberately set Bitcoin on a suicide course right now - and all the devs there are silently complicit - and so are the Chinese miners who submissively bowed down to Blockstream's stalling "scaling" roadmap. But I don't really blame the devs and the miners. I feel bad for them. I'm not really "blaming" any Chinese miners for being used like this - nor am I really "blaming" devs such as Adam Back, Greg Maxwell, etc. Nor do I really "blame" guys like Austin Hill. And I even think guys like Theymos and Luke-Jr "mean well". They're all just being played. They think they're doing the right thing. Their arguments are genuine and heart-felt. Wrong, but heart-felt. This is what makes them so dangerous - because they really sound sincere and convincing. This is why they are the perfect pawns for the owners of Blockstream to play like this. Subtle coercion We recently found out that they locked the Chinese miners in a room for 13 hours until 3 AM to force them to sign an "agreement" to never use any code from a competing Bitcoin implementation that would increase the blocksize. https://np.reddit.com/btc/comments/46tv22/only_emperors_kings_and_dictators_demand_fealty/ Have you ever seen this kind of coercion in an open-source project - an open-source project founded on the principles of "permissionless" "decentralization" - where many of the founders were "cypherpunks"?? The miners and the devs - and Theymos - and guys like Austin Hill - all are passionate about Bitcoin, and they all believe they are doing "the right thing". But they are being manipulated, without their knowledge, by the real power behind Blockstream. Prisoners in a golden cage Strange how we never get to hear what really goes on behind closed doors at Blockstream. We never get to see the PowerPoint decks, we never get to find out who said what. Blockstream's public messaging is tightly controlled. If Bitcoin were to have a "core" dev team, it should have had something like the Mozilla Group, or the Tor Project - non-profits, who answer to the public, not to private investors. Instead we got Blockstream - a private company funded by some of the biggest players of the legacy fiat power élite. WTF?!? If they wanted to develop sidechains and LN, then fine, they should be able to. But what they're really doing is radically changing Bitcoin itself - mainly by freezing growth at 1 MB blocks now, which is choking the system. Depite all this, I still would not go so far as to say that the Core devs and the Chinese miners are really "traitors". At most, they are actually prisoners in a golden cage, who are not even really conscious of their own imprisonment. They're smart people - and in some ways, smart people are actually easier to fool, once you figure out what they believe in. So this is what I really think the owners of Blockstream have done. They've figured out how to manipulate the Core devs and the Chinese miners - and they're happy that Theymos is playing along, censoring the main online forums - so they're able to move ahead with their plan to do a "controlled demolition" of Bitcoin, and it only cost them $75 million dollars. Centralization got us into this mess. The only reason Bitcoin is vulnerable to this kind of "controlled demolition" being performed by the owners of Blockstream is because mining operations and dev teams are centralized - thus providing a single, vulnerable point where the legacy fiat power élite could easily deploy their full-spectrum attack. We finally have a digital asset with no counterparty risk - and they want to take it away from us, so that we continue to depend on their debt-backed, violence-backed legacy fiat. And they're able to do this because the Core devs and the Chinese miners and Theymos were such easy gullible centralized targets. Decentralization will get us out. If you are a miner or a dev, and if you want Bitcoin to survive, then you must go back to the principles of permissionless decentralization. Go dark, release some code anonymously. Release an internal Blockstream PowerPoint deck or some internal Blockstream emails to Wikileaks, exposing what the Blockstream investors are really up to. Otherwise, Bitcoin is probably going to fail to realize its potential - and we'll have to wait a while for truly decentralized development (and mining, and forums) to possibly create a successor someday. If you're a hodler, it would be great if such a phoenix rising from Bitcoin would be a "spinoff" - ie, a coin bootstrapped off of the existing ledger (to preserve existing wealth, while upgrading to a new protocol for appending new blocks). https://bitcointalk.org/index.php?topic=563972.0 But who knows.
[USA-NC] [H] Local cash, PayPal [W] EVGA GTX 1080 Ti
I blame the miners. Long story short, I just parted ways with my 2 year old MSI GTX 970 and expected to source an EVGA GTX 1080 Ti reference card quickly and for not a lot of money. It seems, however, that my plan was ill-timed. No sooner had I started looking than I saw inventory selling out everywhere and prices of BNIB units skyrocketing. If Jamie Dimon ends up being right about Bitcoin, ethereium, and the other cryptocurrencies, then this hyped-up demand for GPUs is going to look spectacularly, fantastically silly. I just want to use my Vive. That's it. No mining, no over clocking, no SLIing. Just VR. Promise. Please let me buy your 1080 Ti. It will come to a good home and be treated with respect. PayPal verified and have hundreds of confirmed trades over on /starcitizen_trades. Thanks in advance!
FUD From All Sides: In Defense of CME's Bitcoin Futures Plan
https://www.coindesk.com/fud-sides-defense-cmes-bitcoin-futures-plan/ William Mallers, Jr. started First American Discount Corporation with his father in 1984, eventually building it into the third-largest discount futures brokerage. He sold it in 2001 to Man Financial and then retired. In this opinion piece, Mallers argues CME Group's plan to offer bitcoin futures will benefit the futures trading industry and the bitcoin community alike – notwithstanding hand-wringing in both worlds about the idea. I'm a member of the Chicago Mercantile Exchange. I've also been a bitcoiner since 2013. So, when CME Group announced its intention to launch bitcoin futures in the coming weeks, I thought, "Great! Way to go, CME." The first exchange to offer a futures contract on bitcoin is good news for my CME friends: more trading volume and and speculative opportunities. And it's also good for my bitcoin friends: the legitimacy and access is sure to help with adoption and higher bitcoin prices. Win-win! Right? Well, that wasn't quite the response I got. Instead I heard just about every negative stereotype about both futures trading and bitcoin, from both communities. Let's try to put these misperceptions to rest. 'Tulips' in 5,4,3... First, there’s this from the futures industry’s most widely read blog, John Lothian News: "The risk of bitcoin is in its history and the cloud surrounding its creation and early fraudulent days. Who is Satoshi? Where is he today? What happened at Mt. Gox? Is it still used to launder money? Why won't China let people trade bitcoin and what does this have to do with money laundering or capital controls?" Good Lord. If you've been in enough arguments with bitcoin skeptics you know what's coming after the drug-dealing, money-laundering slam, right? Next up: the tulip-bulb analogy. Sure enough, Lothian says, "I don’t want to be on the wrong side of history. But the history I am looking at is … 1636-37. That was the peak of tulipmania." And that, my friends, is why I spent my first two years in bitcoin not sharing my passion with any non-bitcoiners. "Bitcoin? Never heard of it." But because I have benefited from all the hard work that others have done to advance this project – hosting meetups, dispelling misinformation – and all I've done is log into my account and click "Buy," I thought I'd try to do my part. A margin clerk's dream Here's what I wrote to Lothian (a former employee at the futures brokerage I ran), and maybe it will help you with your bitcoin futures doubters: "Hey John, it's Junior from your old FADC [First American Discount Corporation] days and I’ll be glad to help you understand bitcoin. "But first – recall how you used to try to collect margin money by first asking the customer to provide a contact at his bank who could confirm that he had sufficient funds in his account and that he had initiated the wire. Why did we have you do that? Because we knew we wouldn’t get the money until the next day; his bank, while debiting his account immediately, would wait until the end of the day to wire us the money (unless he stopped the wire) and our bank wouldn’t credit us until mid-morning the next day, at the earliest. "Now, imagine, instead of that 24-hour headache, your under-margined customer simply waved his cell phone at our FADC QR code and we got the money within 10 minutes, or at most a few hours. Bitcoin is a margin clerk's dream come true: near-instant peer-to-peer value transfer! It's easy to see why Jamie Dimon doesn’t like it, but a former margin clerk? You should be loving this technology and cheering for its adoption! "I know having an asset protected by the computing power of a globally distributed network doesn't feel as secure as having armed guards protecting a bank vault, but if you get some time, there are websites that estimate the cost of amassing enough computing power to defraud the bitcoin network. This site estimates about $1 billion in electricity per day, plus over $1 billion in equipment, to counterfeit one transaction. In other words, it would be way cheaper for the Hunt brothers to corner today’s silver market than it would be for me to con an online retailer like Overstock into sending me free patio furniture. It's called a '51% attack' because I’d need to control a majority of the network hashing power to get a consensus mechanism to accept my phony accounting. "Bernie Madoff-style cons are hard to pull off; I need years to earn my victims' trust, I have to get a reputable accounting firm to bless my forged statements, etc ... but Madoff's con was far easier than going undetected while amassing billions' worth of computing power. Plus, since new bitcoins are awarded to the miners proportionate to their computational contribution, if I did have that much computing power, I may as well amass bitcoins the honest way, right? "That's one of the fun insights into this project: it manages to align all participants through economic incentive." Overwhelming demand When Terry Duffy, CME's CEO, says it's offering bitcoin futures in response to customer demand, I'm sure he’s right. I know from writing brochures for commodity trading advisors that money managers want non-correlated assets. That's the only reason they own gold. When the stock market tanks or a terrorist attack happens, that's when gold rallies. After 9/11, the stock market dropped over 7 percent, but gold spiked. Bitcoin, like gold, is a perfect non-correlated asset to add to an investment portfolio. I am not surprised that there is such overwhelming demand for bitcoin futures from traders. Now, every trader is going to have the option to invest right there on their screen without having to do the onerous work of buying and securing bitcoin itself. Risk controls As for claims that CME futures trading will put the exchange at risk, they are overblown. CME clearing privilege requires a large amount of capital. If a member's capital level drops below the threshold required to clear, the CME removes customer accounts and places them with a firm that has the capital to support them. Again, customers come first. Stock index futures functioned as designed during the 1987 crash, grain futures likewise during the 1988 drought, currencies during the high volatility after the Plaza Accord. Consider this: prior to 1982, if you’d predicted where the most successful stock index contract would launch, you’d guess probably the New York Stock Exchange, right? But S&P 500 Index Futures launched at the Chicago exchanges next to the pork-belly pit, U.S. Treasury futures next to the soybean pit. CME has done its homework on bitcoin; it's well aware of bitcoin's volatile price history and has the experience and controls in place to clear bitcoin futures. Amazing, isn't it? The exchange that offers risk-management products should avoid bitcoin because it’s "risky?" Huh? I’ve never seen anything like bitcoin that inspires such lame arguments from its opponents. This ain't Wall Street Then, there's all the bitcoiners' FUD: "Here comes Wall Street to drive the price of bitcoin down, manipulate the market and ruin it for us!" Suffice it to say, for many of the same reasons I gave above, I don’t believe that to be true. Keep in mind that CME is not Wall Street. The Chicago exchanges have an ethos like bitcoin's: transparency, security, independence and accountability. To all the people hand-wringing on both sides, let's just see how this plays out. I have decades of experience with the Chicago exchanges and feel reasonably certain that you all are wasting your breath and paying too much for full-page ads in print newspapers. Let's get this thing to the moon!
A possible solution to the current EDA Situation. *Lower the amplitude*
The current EDA situation is disruptive and damaging due to the massive see-saw movements of mining power from BTC to BCH and then back gain, each time one or the other coin becomes "more profitable". The abandoned coin then becomes bogged-down in long wait times between found blocks, causing users inconvenience or worse, and perhaps to even reconsider using BTC and/or BCH at all and move to other coins. And to the non-believing outside world the situation could justifiably make the proposal of mass public use of any cryptocurrency appear to be unwise and prone to puzzling and completely unnecessary problems. . Short of another hard fork to fix this in the code, there is a possible solution that I would like others to consider. Steady, unwavering mining power that does not move. In other words, Hey Miners, let's stop moving our mining power back and forth. Especially if a substantial amount of your fellow mining pool members do the same, you will still mine blocks and make good money even with an increase in difficulty. The "lost" (opportunity cost) profits will be recovered easily with increased value in BCH. With market prices of coins fluctuating for all sorts of other reasons (ie Jamie Dimon, for example, and other clowns and rumors of rumors etc) this "lost" amount is a fairly small fraction compared to the total amount, and also compared to the damage being done to the reliability and usability of the BTC/BCH ecosystem. I'm hodling as much of my mined coins as I can, anyway. This brings up another viewpoint: Like it or not, BTC and BCH are actually linked for now. They are much like divorced parents who still have to make contact. I guess the miners are like their children, who can (if they decide to) swing their love and affection drastically and unfairly from one parent to another. This of course does not make a bad situation better. It might give the children a feeling of control but the benefits are shallow and in the end are terribly counterproductive. However, if the children are wise and care about enjoying a happy life, they would not aggravate the broken relationship between the parents, but seek to soothe it, so that everyone can make the best of an unfortunate situation and perhaps then each individual involved can work on sorting out their own personal problems. (LOL, I realize I'm stretching this metaphor beyond the breaking point, but I hope there is some value in it!) .... Personally, in the first week of August, I paid for some cloud mining contracts because I greatly wanted Bitcoin Cash to succeed, and short of having gobs of dollah bills to throw at direct investing in this new coin, I wanted to support it by doing my small part in making sure that 'baby Bitcoin Cash' had enough mining power commited to it. (Things looked pretty darned precarious at the time). So NOW, with this same concern and willingness to protect Bitcoin Cash, I have largely resisted the temptation (*...I confess! I did jump on the bandwagon, and move my miners, once. Or twice? o.O ) to shift my miners back and forth with each swing of the difficulty pendulum. ... But to reiterate, my proposal is: If more of us miners would simply stop see-sawing back and forth, collectively our pools would continue to mine a steady number of blocks of BCH even after a difficulty increase, and the subsequent fluctuations will become less drastic, and hopefully things will settle into a steady "normal" and more reliable situation. And, this would be just in time before the next big storm brewing on the horizon which will hit us, ALL OF US, whether we are in the BCH camp or not... ... Which brings up another point: If BCH is going to be perceived as a safe harbor from the embarrassingly inane craziness that will almost inevitably result from the upcoming chaotic fork of BTC---and I think there is a GREAT OPPORTUNITY for our lovable BCH in this---we have another reason to make efforts to minimize the current drastic amplitude of the EDA fluctuations as much as we can. Anyway, best regards to everyone, and thank you for reading all the way through this! [sorry for the longishness of the post. I'm hyped-up on coffee right now...!]
Fidelity, Bakkt and an ETF Approval will Drive Bitcoin’s Price to $15k in 2019’: Bitpay’s Sonny Singh
https://preview.redd.it/lga55m1pywz11.jpg?width=960&format=pjpg&auto=webp&s=029164fbc9377e5202091ed16a521d13d9088f88 BitPay a #Bitcoin payment processing company had been in the news for some time due to their addition of stablecoins among the payment options for merchants. However, the negative volatility in the crypto market has made most cryptocurrencies to tumble and to trade below their previous year high values. This has made some #cryptocurrency#investors, influencers, analyst and researchers to change their position on forecasts about some coins like Bitcoin. In a recently published interview, Tom Lee of Fundstrat reaffirmed his position of $15,000 by year end for Bitcoin Joining Tom Lee to maintain his position on Bitcoin price prediction is the chief commercial officer (CCO) of Bitpay Sonny Singh. Sonny Singh had said previously that Bitcoin could get to its all-time high of $20,000 by next year and could not get below $15,000 by the end of next year. This he reaffirmed in an interview with Bloomberg Technology. Singh said: “Next year will see new players and miners emerge in the industry. We will not see any rapid shift but by the end of Q1 or Q2, Bitcoin will emerge as a viable commodity. Bitcoin has become mainstream adoption around the world, it has got a great brand reputation.” Just like Tom Lee said that institutional investments will be a major drive in attaining his prediction of Bitcoin value, Sonny Singh said that the awaiting Launch of Bakkt by Intercontinental #Exchange (ICE) by Jan 2019, the arrival of Fidelity into the crypto market and the expected approval of Goldman Sachs and Black rock #ETFs could drive Bitcoin to a “new direction.” Although the CEO of JPMorgan Jamie Dimon had called Bitcoin a “fraud” in a statement in 2017, Sonny believes that going by the role of big #financialbodies in the crypto market presently and the attraction of other institutional investors, that JPMorgan could still retrace its stand and invest in the Crypto market. Singh had to inform that irrespective of the downtrend in the crypto market, that Bitcoin with the highest market capitalization still maintains more than 50% dominance in the entire market. On ICOs Current stance since the decline, Sonny Singh said that: “The ICO market is pretty much dead right now. None of them are going to survive unless Bitcoin survives first” Singh continued that the ICOs market needs Bitcoin to succeed going by the regulation challenge they face with US SEC. He concluded that his prediction depends on Bitcoin ETF approval “because as for the adoption of bitcoin, he said that, “They move very slow because nothing moves fast in #FinTech.”
Shutting down or restricting the uses of bank accounts, thereby forbidding clients to buy crypto, is a blatant affront to the rights of civil liberty, manifested, but not limited to, in the rights to private property and free speech (562 points, 262 comments)
I believe Bitcoin Core/Blockstream is now attempting to infiltrate Bitcoin Cash in the same manner that they did with Bitcoin Segwit. They are suddenly befriending Bitcoin Cash. Only in that way can they destroy from within. Do not be fooled. (401 points, 166 comments)
You have $100 worth of BTC. So you purchase an item for $66, but have to pay a $17 fee. Now you have $17 worth of Bitcoin left, but it costs $17 more to move it. So $66 item effectively cost you $100. #Thanks BlockStream (1420 points, 433 comments)
2025 points: kairepaire's comment in As of today, Steam will no longer support Bitcoin as a payment method
2018 points: vbuterin's comment in "So no worries, Ethereum's long term value is still ~0." -Greg Maxwell, CTO of Blockstream and opponent of allowing Bitcoin to scale as Satoshi had planned.
1215 points: vbuterin's comment in Vitalik Buterin tried to develop Ethereum on top of Bitcoin, but was stalled because the developers made it hard to build on top of Bitcoin. Vitalik only then built Ethereum as a separate currency
1211 points: LiamGaughan's comment in As of today, Steam will no longer support Bitcoin as a payment method
Hi. I was a Bitcoin miner in 2013, and I’ve enjoyed this bull run up to almost $20,000. Jamie Dimon, the CEO of Chase Bank, called Bitcoin a fraud earlier in the year and made the comment that the bubble would surely burst. As you know, he pulled a reversal today. Well he is now very sorry and regrets his comments. His quoted statement today was "It's real, and I regret my previous statements." So ask yourself - Why didn't the price go up today? After all, it sunk from around 7K to 3K after his initial negative statements in July of last year. Then it rallied to $20,000 in December. So you would expect today it would soar with this declaration, but the opposite happened - It tanked by a huge $1K per Bitcoin. Why did it sink after his statement of support? Don't get caught up in the smokescreen and misdirection! Positive Bitcoin Wall Street announcements in addition to the futures market being announced has Bitcoin’s legitimacy secured and future looking bright. However your common investor’s liquidity is gone, and the market has become extremely volatile. It is no longer a bull market, and hasn't been since last month. Simply holding your Bitcoin and not taking action is much less profitable than actively trading and taking advantage of the market swings. This is where an intelligent Bitcoin Trading Algorithm comes into play. I use Amazon servers to crunch market behavior and continuously update the algorithm, and ensure the trades are occurring at the optimum amounts. If you are interested in this opportunity to have your Bitcoin actively traded 24/7 without any time spent on your part, please contact me to go over any questions and details about a loan. I will under no circumstances allow you to see the algorithm, and it is not up for sale. For the sake of anonymity, I only need know your deposit address to return your loaned Bitcoin. Proof of concept: 12-7-17: https://youtu.be/Ro191xImJNk 12-8-17: https://youtu.be/lbihHaSNPZs 12-9-17: https://youtu.be/p4QVddv6dgk Looking forward to the Future, Exact BTC Trading
The EU bitcoin "crackdown" is a disproportionate reaction to recent events. More likely it is an anti competitive assault brought about by the cozy relationship between high level banks and the EU
How convenient is it that the EU wants to try and eliminate forms of payments that don't go through banks? What more effective way to give yourself a monopoly than to use judicial courts and laws that brand any of your competition as terrorists? It was only a week ago that we had Jamie Dimon and Blythe Masters giddily claiming that all it would take to make bitcoin unable to compete would be one person (the DoJ) claiming that it is illegal to use. There is something wrong about this whole situation. First of all a form of money isn't a source of funding. It is not correct to say that "bitcoin" is a source of funding since it is just a method of payment. A more accurate description would be something like this: Oil, which is converted to money through selling is a source of funding. One of these types of money may be bitcoin. Except that it isn't. According to this article Isis makes 100 million a month in selling oil at sub market prices. They control oil in Iraq and Syria which is purposefully not targeted by our government. Why? If the source of terrorist funding is oil then why aren't we going after the root of the problem? http://www.zerohedge.com/news/2015-11-19/most-important-question-about-isis-nobody-asking Secondly, Even with the known source of funding being oil, why is it that the middle men, the ones involved in the transaction of converting oil to money aren't being caught? To turnover such a large amount of oil you need connections to the banking establishments ? Again from the article:
At this point, however, three things are certain: whoever the commodity trading house may be that is paying ISIS-affiliated "innocent civilians" hundreds of millions of dollars for their products, they are perfect aware just who the source of this deeply discounted crude is. Crude so deeply discounted, in fact, it results in massive profits for the enterprising middleman who are engaging in openly criminal transactions. The second certainty: whoever said middleman is, it is very well known to US intelligence services such as the NSA and CIA, and thus to the Pentagon, and thus, the US government.
Lets go through the points of why Terrorists most likely aren't involved with Bitcoin at all: To get bitcoins you need to do one of four things: Mine bitcoin yourself, buy bitcoins from an exchange, buy bitcoins over the counter or off an exchange, Accept donations in bitcoin.
Most likely terrorists will never mine bitcoin. Mining bitcoin exposes your location. You need to build static facilities that can mine bitcoin, you would need to fabricate your own hardware because ordering the hardware from somewhere would divulge information. You would need to "waste" money burning your own oil to power miners instead of just selling the oil for regular currencies. And you would be left with a currency that isn't widely accepted at all.
An exchange has more strict Know your customer policies than even banks do. So using them would put them at more risk than using a bank would. In fact, most exchanges won't accept a bank statement as a form of address verification because it is too easy to create fraudulent bank accounts.
Most people involved with bitcoin and that have large amounts of it are early adopters. They are people with libertarian ideals who would most likely never sell to a terrorist. And then even if they presumably did , who would turn around and buy bitcoins from terrorists once the terrorists actually needed to buy something they couldn't with bitcoins? Another terrorist?
Accepting donations couldn't be an issue. Right now the largest use of bitcoin is donations. Bitcoin makes donations incredibly easy and it also has the possibility of enforcing transparency over charities. The problem? To accept these donations you would need to publicize an address that we could all watch for incoming transactions.
The next problem: bitcoin doesn't make a full circle in the economy. It is not widely accepted. Even though you may hear of this business or that business is accepting bitcoins, they actually convert it to cash at the point of sale. So to turn your bitcoins into cash, especially in large amounts you have to go through regulated entities: Payment processors, bitcoin exchanges. Both of these are regulated and even more than that they are connected with banks that are also regulated. Next point: The bitcoin economy is too small to enable anything useful. You might be able to buy coffee with bitcoin but you stick out like a sore thumb. There simply aren't that many people using bitcoin. As another article stated that I read earlier today... the controversial "isis" wallet that has 3 million in it that is a rumor and unproven... is still less than a single piece of military equipment that ISIS routinely steals/plunders from the US government. The entire market cap of bitcoin is only about 5 billion. That means that any large amounts of money moving through it would be easily noticeable, easily traceable . It would also mean they would lose a lot of money trying to convert it back and forth from currencies to bitcoin and back again because bitcoin can't handle that kind of volume without large spreads (difference between bid and ask prices) Next point: Bitcoin is pseudononymous. If terrorists actually used bitcoin they would be much more traceable than if they used cash. There is no money trail with cash. There is with bitcoin. Bitcoin is an open public ledger that records every single transaction ever made from the beginning, viewable to anyone willing to inspect it. To say that this gives terrorists anonymity is like saying that IP addresses give anonymity. The government can find out who is behind an IP address by talking with ISPS. In the same way governments can find out who are behind transactions in bitcoin by asking exchanges and payment processors. Most government officials who have bitcoin explained to them still don't understand it. But they should still be able to understand a logical principle: Technology that benefits society should not be halted or stopped because it might also benefit a criminal. Typically technology benefits both. A car makes it easier to escape from a bank robbery. Cars shouldn't be banned because of this. A cell phone makes it easier for criminals to communicate with one another. Cell phones shouldn't be banned because of this. The internet makes it easier for criminals to rob peoples identities. The internet should not be banned because of this. It might be possible that authorities will try to ban bitcoin before people even understand how it benefits them and society. By providing a currency that is immune to quantitative easing... which is a form of thievery because it steals value from the holder of every single dollar. Lastly there is that issue about identity. Terrorists steal identities. Third parties like Target, Home Depot, The US post office can't be trusted to hold peoples identity information because they are unable to secure it and it could be stolen. If it is somehow mandated that every transaction must have an identity attached what you are essentially doing is mandating that insecurity is built into the system because our identities will need to be stored by companies that will inevitably get hacked and inevitably have identities stolen. The way it should be is this: Bitcoin technology should be looked at as an asset in fighting crime. You can follow money around. You don't need to construct blacklists because all that does is punish the currency itself and not the criminals. Focus on punishing the criminals instead.
“And behold, He deigned to appear for a moment to the people, to the tortured, suffering people, sunk in iniquity, but loving Him like children.” “Man is tormented by no greater anxiety than to find someone quickly to whom he can hand over that gift of freedom.” THE SECOND COMING, SATOSHI AND THE GRAND INQUISITOR A parable, 99% lifted verbatim from… THE BROTHERS KARAMAZOV By Fyodor Dostoevsky, as translated by Constance Garnett […and 1% from Bitcoin’s reality.] He comes on the scene in my poem, but He says nothing, only appears and passes on. Fifteen centuries have passed since He promised to come in His glory, fifteen centuries since His prophet wrote, 'Behold, I come quickly'; 'Of that day and that hour knoweth no man, neither the Son, but the Father,' as He Himself predicted on earth. But humanity awaits him with the same faith and with the same love. Oh, with greater faith, for it is [five years] since man has ceased to see signs from [Satoshi]. No signs from heaven come to-day to add to what the heart doth say. There was nothing left but faith in what the heart doth say. It is true there were many miracles in those days. There were saints who performed miraculous cures; some holy people, according to their biographies, were visited by the Queen of Heaven herself. But the[block size increase haters] did not slumber, and doubts were already arising among men of the truth of these miracles. And just then there appeared…a terrible new heresy. 'A huge star like to a torch' that is, to a church 'fell on the sources of the waters and they became bitter.' These heretics began blasphemously denying miracles [and Distributing Denial of Service attacks]. But those who remained faithful were all the more ardent in their faith. The tears of humanity rose up to Him as before, awaited His coming, loved Him, hoped for Him, yearned to suffer and die for Him as before. And so many ages mankind had prayed with faith and fervour, 'O [Satoshi] our God, hasten Thy coming'; so many ages called upon Him, that in His infinite mercy He deigned to come down to His servants. Before that day He had come down, He had visited some holy men, martyrs, and hermits, as is written in their lives. Among us, [Gavin Andresen], with absolute faith in the truth of his words, bore witness. "And behold, He deigned to appear for a moment to the people, to the tortured, suffering people, sunk in iniquity, but loving Him like children. My story is laid in[Australia and thence London], in the most terrible time of the[Block Size] Inquisition, when fires were lighted every day to the glory of [the 1MB block size given unto us by Scripture], and 'in the splendid auto da fé the wicked heretics [Gavin Andresen and Mike Hearn] were burnt.' Oh, of course, this was not the coming in which He will appear, according to His promise, at the end of time in all His heavenly glory, and which will be sudden 'as lightning flashing from east to west.' No, He visited His children only for a moment, and there where the flames were crackling round the heretics. In His infinite mercy He came once more among men in that human shape in which He walked among men for three years [five years] ago. He came down to the 'hot pavements' of the southern town in which on the day before almost a hundred heretics had, [1MB], been burnt by the Grand [Block Size] Inquisitors, in a magnificent [DDoS], in the presence of the king, the court, the knights, the cardinals, [the Core Devs,] the most charming ladies of the court, [miners,] and the whole population. He stops at the steps of the Seville cathedral at the moment when the weeping mourners are bringing in a little open white coffin. In it lies a child of seven [months – Bitcoin XT – in it], the only daughter of[two] prominent citizens [Gavin Andresen and Mike Hearn]. The dead child lies hidden in flowers. 'He will raise your child,' the crowd shouts to the weeping mother[s]. The priest, coming to meet the coffin, looks perplexed, and frowns, but the mother[s] of the dead [code] throws herself at His feet with a wail. 'If it is Thou, raise my child!' she cries, holding out her hands to Him. The procession halts, the [code] is laid on the steps at His feet. He looks with compassion, and His lips once more softly pronounce, 'Maiden, arise! [Arise to 340 gigabytes!]’ [The Block Size Inquisitor] holds out his finger and bids the guards take Him. And such is his power, so completely are the people cowed into submission and trembling obedience to him, that the crowd immediately makes way for the guards, and in the midst of deathlike silence they lay hands on Him and lead him away. "'Is it Thou? Thou?' but receiving no answer [– no new keys, no Genesis block signature, and for damn sure, no 1-million BTC movements –] he adds at once. 'Don't answer, be silent […and definitely no more 20-screenshot blogposts!] What canst Thou say, indeed? I know too well what Thou wouldst say. And Thou hast no right to add anything to what Thou hadst said of old [in “Bitcoin: A Peer-to-Peer Electronic Cash System”]. Why, then, art Thou come to hinder us? For Thou hast come to hinder us, and Thou knowest that. But dost thou know what will be to-morrow? I know not who Thou art and care not to know whether it is Thou or only a semblance of Him, but to-morrow I shall condemn Thee and burn Thee at the stake as the worst of heretics. And the very people who have to-day kissed Thy feet, to-morrow at the faintest sign from me will rush to heap up the embers of Thy fire." "And the Prisoner too is silent? Does He look at him and not say a word?" "That's inevitable in any case," Ivan laughed again. "The old man has told Him He hasn't the right to add anything to what He has said[in the immutable White Paper]. One may say it is the most fundamental feature of [Bitcoin], in my opinion at least. 'All has been given by Thee to [Gavin],' they say, 'and all, therefore, is still in [Gavin]'s hands, and there is no need for Thee to come now at all. Thou must not meddle for the time, at least.' That's how they speak and write too – the [block size haters], at any rate. I have read it myself in the works of their theologians. 'Hast Thou the right to reveal to us one of the mysteries of that world from which Thou hast come [like the completely arbitrary selection of 1MB]?' my old man asks Him, and answers the question for Him. 'No, Thou hast not; that Thou mayest not add to what has been said of old, and mayest not take from men the freedom which Thou didst exalt when Thou wast on earth. Whatsoever Thou revealest anew will encroach on men's freedom of faith; for it will be manifest as a miracle, and the freedom of their faith was dearer to Thee than anything in those days fifteen hundred years ago. Didst Thou not often say then, "I will make you free"? But now Thou hast seen these "free" men,' the old man adds suddenly, with a pensive smile. 'Yes, we've paid dearly for it,' he goes on, looking sternly at Him, 'but at last we have completed that work in Thy name. For fifteen [months] we have been wrestling with Thy freedom, but now it is ended and over for good.[XT is dead. Classic is dead. Unlimited stillborn.] Dost Thou not believe that it's over for good? Thou lookest meekly at me and deignest not even to be wroth with me. But let me tell Thee that now, to-day, people are more persuaded than ever that they have perfect freedom, yet they have brought their freedom to us and laid it humbly at our feet. But that has been our doing. Was this what Thou didst? Was this Thy freedom?'" "'The wise and dread spirit, the spirit of self-destruction and non-existence,' the old man goes on, great spirit talked with Thee in the wilderness. And yet if there has ever been on earth a real stupendous miracle, it took place on that day, [October 31, 2008]. The statement [“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”] was itself the miracle. If it were possible to imagine simply for the sake of argument that those questions of the dread spirit[Jamie Dimon] had perished utterly from the books, and that we had to restore them and to invent them anew, and to do so had gathered together all the wise men of the earth – rulers, chief priests, learned men, philosophers, poets, [cypherpunks] – and had set them the task to invent[distributed ledgers again], such as would not only fit the occasion, but express in words, human phrases, the whole future history of the world and of humanity –dost Thou believe that all the wisdom of the earth united could have invented anything in depth and force equal to [“Double-spending is prevented with a peer-to-peer network; no mint or other trusted parties; participants can be anonymous; new coins are made from proof-of-work. Any needed rules and incentives can be enforced with this consensus mechanism.”] From those alone, from the miracle of their statement, we can see that we have here to do not with the fleeting human intelligence, but with the absolute and eternal. For in those the whole subsequent history of [payments, ownership registry, storage of wealth, identity, IoT] is, as it were, brought together into one whole, and foretold, and in them are united all the unsolved historical contradictions of [the legacy financial system]. At the time it could not be so clear, since the future was unknown; but now that fifteen hundred years have passed, we see that everything in those questions was so justly divined and foretold, and has been so truly fulfilled, that nothing can be added to [the arbitrary block size picked in 2010]. They will raise against Thee, and with which they will destroy Thy temple [Bitcoin]. Where Thy temple stood will rise new buildings [Ripple, Ethereum, Chain]; the terrible tower of Babel will be built again, and though, like the one of old, it will not be finished, yet Thou mightest have prevented that new tower…for they will come back to us after a thousand years of agony with their tower. They will seek us again, hidden underground in the catacombs, for we shall be again persecuted and tortured. They will find us and cry to us, "Feed us[megabytes], for those who have promised us fire from heaven haven't given it!" And then we shall finish building their tower, for he finishes the building who feeds them [real-time transaction confirmations]. And we alone shall feed them in Thy name, declaring falsely that it is in Thy name. Oh, never, never can they feed themselves without [more than 1MB]! No, science will give them [other blockchains] so long as they remain free. In the end they will lay their freedom at our feet, and say to us, "Make us your slaves, but feed us [block space]." But man seeks to worship what is established beyond dispute [– like signing the freakin’ Genesis block!!!], so that all men would agree at once to worship it. For these pitiful creatures are concerned not only to find what one or the other can worship, but to find community of worship is the chief misery of every man individually and of all humanity from the beginning of time. For the sake of common worship they've slain each other with [personal, vindictive campaigns and DDoS attacks]. They have set up gods and challenged one another, "Put away your gods [XT, Classic, Unlimited] and come and worship ours, or we will kill you and your gods!" And so it will be to the end of the world, even when gods disappear from the earth. When the Inquisitor ceased speaking he waited some time for his [Satoshi] to answer him. His silence weighed down upon him. The old man longed for him to say something, however bitter and terrible. But He suddenly approached the old man in silence and softly [blogged “I’m Sorry…And goodbye.”] That was all his answer. The old man shuddered. His lips moved. He went to the door, opened it, and said to Him: 'Go, and come no more... come not at all, never, never!' And he let Him out into the dark alleys of the town. [Craig Wright] went away." "And the old man?" "The [Block Size] Inquisitors adhere to their idea [– artificially limiting the block size – even if it] destroys Thy temple [Bitcoin]. Where Thy temple stood will rise new buildings [Ripple, Etherium, Chain, DAH, et al]; the terrible tower of Babel will be built again…." Dan Morehead San Francisco May 26, 2016
“Bitcoin enables certain uses that are very unique. I think it offers possibilities that no other currency allows. For example the ability to spend a coin that only occurs when two separate parties agree to spend the coin; with a third party that couldn’t run away with the coin itself.” – Pieter Wui (66 points, 14 comments)
Jamie Dimon, managing director of the major US bank JPMorgan Chase, was one of the first and for a long time most prominent voices who loudly doubted Bitcoin. In September, he had predicted Bitcoin would end with a speedy crash. This week he says he regrets having accused Bitcoin of being a “fraud”. Dimons rethink reflects a steady trend: As more and more political forces raise their ... Jamie Dimon is finding it difficult to ignore Bitcoin. A day after stating that he would not talk about Bitcoin, he breaks his silence to emphasize that stupid bitcoin investors will pay the price. The Greater Fool Theory. The central theme of Jamie Dimon’s renewed attack on Bitcoin is that it is a bubble, where the underlying asset has no ... Der Chef der US-Großbank JPMorgan Chase, Jamie Dimon, hat die Kryptowährung Bitcoin als Betrug bezeichnet. Bei einer Rede auf einer Investoren-Konferenz in New York sagte Dimon, dass die ... Home Bitcoin Jamie Dimon: I ‘Don’t Give a Sh*t’ about Bitcoin. Bitcoin; Jamie Dimon: I ‘Don’t Give a Sh*t’ about Bitcoin. By. bitcoinminer - October 31, 2018. 262. 0. Facebook. Twitter . Google+. Pinterest. WhatsApp. Much like an old house that comes to be inhabited by the spirit, who, though no longer living, nevertheless has unfinished business on earth, JPMorgan CEO Jamie Dimon ... Dimon still maintains that the emphasis in the financial sector should remain on the blockchain, rather than Bitcoin which he maintains, he has unintentionally become the spokesperson against, arguing, “I didn’t want to be the spokesperson against Bitcoin. I just don’t give a ….., that’s the point…Blockchain is real, it’s a technology, but Bitcoin isn’t the same as a fiat ...
Bitcoin Is Free Speech: Why Jamie Dimon Was Wrong and ...
Today in Bitcoin (2017-09-14) - Jamie Dimon is Terrified about Bitcoin - NK Mining - BTC Mainstream World Crypto Network. Loading... Unsubscribe from World Crypto Network? Cancel Unsubscribe ... Use the code R8avSs and get 3% every time you purchase hashpower to mine Bitcoin and Ethereum and a ton of other Cryptocurrencies at https://www.genesis-mining.com 3% discount code: R8avSs My BTC ... You can't make this stuff up. Just days after Jamie Dimon proclaimed that "Bitcoin is a Fraud!" and he would "Fire any trader that worked for him that bought... Willkommen zur Bitcoin-Informant Show Nr. 276 Heute geht's um folgende Themen: JPMorgan-Chef Dimon distanziert sich von scharfer Bitcoin-Kritik, Zentralbank von Israel stuft Kryptowährungen als ... JPMorgan CEO Jamie Dimon breaks down his view on bitcoin while speaking Friday at the Institute of International Finance. » Subscribe to CNBC: http://cnb.cx/...