Bitcoin - Infogalactic: the planetary knowledge core

[WTS] LIBERTADS!! LIBERTADS!! QB’s, and some low premium silver & gold, some below spot

PM PLEASE. MUCH PREFERRED OVER CHAT.
LIBERTAD LOT:
LIBERTAD PROOF: https://imgur.com/a/Qqtz1xT
I am new to Libertads. For these, the ones from 1979 appear to be clean with maybe a little dulling. There is some toning on the ones from the 80s, but in general I would say in good shape. The ones from the 90s and 2000s all appear to be in good condition. There are a few from 2014 that read one bar to the right of the brackets on the Sigma precious metal verifier. I know the silver Eagles do the same. I am 99% sure that these are legitimate, but I am attempting to seek others‘ advice who have more experience with these. As these are the first Libertads I have dealt in, they are all OBO. However, I have marked them all below the national dealers. And as we all know, these have been hard to come by. But, if my prices are high for the market, I am willing to entertain offers.
1979 x 17 (Technically, these are Onzas, not Libertads. 0.925, but with 1 troy oz ASW each) — $37/ea (14 remaining)
1982 x 6 — $38/ea (4 remaining)
1984 x 5 — $43/ea. (1 remaining, toned reverse)
1985 x 23 — $45/ea (16 remaining)
1990‘s (‘93 & ‘95) x 40 — $40/ea (26 ‘93 remaining, 4 ‘95 remaining)
2012 x 20 — $40/ea (15 remaining)
2014 x 15 — $38/ea (ALL GONE)

Other Mexican Silver Lot:
MEXICAN PROOF: https://imgur.com/a/W0JH02T
—$17/ea: 1952-53 Mexican 5 Pesos Hidalgo, 72% silver, 0.643 troy oz silvecoin — 20 available (4 ‘52 remaining, 4 ‘53 remaining)
—$17/ea: 1977-78 Mexican 100 Pesos, 72% silver, 0.643 troy oz silvecoin — 20 available (1 ‘77 remaining, 9 ‘78 remaining)
—$14/ea: 1968— Mexican Olympic 25 Pesos, 72% silver, 0.521 troy oz silvecoin —40 available (22 remaining)

Queen’s Beasts Lot:
QUEEN’S BEASTS PROOF: https://imgur.com/a/fhEKqsM
Yales x 6 — $65/ea (STILL AVAILABLE)
Red Dragons x 5 — $70/ea (ALL SOLD)
Falcons x 4 — $70/ea (ALL SOLD)
Unicorns x 5 — $75/ea (ALL SOLD)
Griffin x 6 — $80/ea (ALL SOLD)
Lions x 5 — $70/ea (ALL SOLD)
Bulls x 3 — $70/ea (ALL SOLD)
The above were acquired from somebody who did not think they were in perfect condition. In looking them over, some may have some surface scratches, fingerprints, or faint milk spots on outer rim. I am not a coin grader, but in general they look pretty good to me. These may not be ones you send in for grading. They are priced accordingly to described condition. I am happy to send unedited photos, if desired. Please get photos if uncertain.
ALSO:
—10 oz Queen's Beasts Series Falcons x 3 — $300/ea (The capsules may have some cracks, but the coins are fine) (2 remaining)
—2 oz Queen's Beasts Series (better condition than above):
Falcons x 30 — $75/ea
Yales x 40 — $70/ea

Miscellaneous Silver Lot:
MISC. PROOF: https://imgur.com/a/RoPTUlj
20 oz Scottsdale kit kat bar — $560 (SOLD)
F**k COVID, 0.99oz — $40
Stoner Bob, 1oz — $40 (GONE)
Franklin Mint 1974 Father’s Day, 1000 grains 0.925 silver—- $50
Franklin Mint 1978 Christmas, 500 grains 0.925 silver — $25
Franklin Mint 1973 Christmas, 1000 grains 0.925 silver — $50

Late addition: https://imgur.com/a/XApnAMm
9 — 1976 Montreal Olympic $10 Commemmorative, 0.925 silver, 1.4454 troy oz/ea — $38/ea
1 — 1972 $25 Cayman Island Silver Wedding Anniversary, 0.925 silver, 1.5271 troy oz — $40

BELOW SPOT LOT: https://imgur.com/a/QM9y3O3
Silver war nickels: $0.03 below melt/ea as listed on coinapps.com, 8,500+ available, price to be set while actively messaging with me. A minimum number of these per order may be applicable.
Canadian junk silver. 0.925, 80%, 50%. Price is 98% of melt. Melt to be determined while actively messaging with me. Can get more specific on denominations, if needed. There are a lot of 80% quarters. ( Remaining Canadian junk silver: 50% quarters x70, 80% quarters x 256)

CHEAP 1g GOLD: https://imgur.com/a/NJ3ZdWm
Sterngold, 99.95%, used in making dental alloys, 1gm each x 30. This is a unique item not likely to be found in many collector’s stash. I will risky ship up to 3 of these in an envelope for $1 @ buyer’s risk. It will not be tracked and I do not like doing it. Would prefer $4 bubble mailer, but buyer’s choice— $70/ea

JEWELRY LOT: https://imgur.com/a/ZrKVulj
— 2014 1/10 oz American Gold Eagle in 14K eagle pendant, bezel weighs 3.487g — $400
— CRESCENT sterling silver pocket watch case, twist on bezel. Marked with CRESCENT, Sterling, serial number 4188. Amateur engraving with a marked name and 1919. Weighs over 100 grams!!! Pre-owned, with expected signs of tarnish and wear. A ding on back of case (see photo close up) — $75

COMING SOON, PERTH MINT LOT:
2014 Kookaburras, 2 rolls
2015 Kookaburras, 2 rolls
2017 Kookaburras, 4 rolls
2015 Lunar Goats, 5 rolls
2019 Swans, 2 rolls

TERMS: All eligible items are verified with a sigma precious metal verifier or Kee gold tester. Prices are generally based on the underlying spot price. Large fluctuations in spot prices could affect the price of items listed. Shipping will generally be at cost. USPS first class starts @ $4, SFRB @ $8, signature @ $2.50. Will insure for 1.1% of purchase price. Shipping is at buyer’s risk. All items will be tracked unless otherwise stated. Would recommend delivery to a secure box for precious metals. Accept in order of preference: 1st — Zelle or Venmo; 2nd — Cash app; 3rd —Bitcoin, but am still learning. Be patient, but I will try to work with you if other options do not suffice. NO PAYPAL. Other forms of payment will be considered. Thank you!
I am not a coin grader. The condition of any coin listed is how it was listed when I acquired it. I will be more than happy to provide any detailed, unedited photos for any coin. Unless specifically mentioned, assume coins are in generally good condition. Noticeable defects potentially affecting the value will attempt to be noted. I try to price my items substantially below the lowest price I can find online from a national dealer. If you see a legitimate cheaper price, let me know and I may very well adjust my price. FYI, I am in Eastern time zone if I do not respond, may be sleeping.
submitted by AgAuSeller to Pmsforsale [link] [comments]

A criticism of the article "Six monetarist errors: why emission won't feed inflation"

(be gentle, it's my first RI attempt, :P; I hope I can make justice to the subject, this is my layman understanding of many macro subjects which may be flawed...I hope you can illuminate me if I have fallen short of a good RI)
Introduction
So, today a heterodox leaning Argentinian newspaper, Ambito Financiero, published an article criticizing monetarism called "Six monetarist errors: why emission won't feed inflation". I find it doesn't properly address monetarism, confuses it with other "economic schools" for whatever the term is worth today and it may be misleading, so I was inspired to write a refutation and share it with all of you.
In some ways criticizing monetarism is more of a historical discussion given the mainstream has changed since then. Stuff like New Keynesian models are the bleeding edge, not Milton Friedman style monetarism. It's more of a symptom that Argentinian political culture is kind of stuck in the 70s on economics that this things keep being discussed.
Before getting to the meat of the argument, it's good to have in mind some common definitions about money supply measures (specifically, MB, M1 and M2). These definitions apply to US but one can find analogous stuff for other countries.
Argentina, for the lack of access to credit given its economic mismanagement and a government income decrease because of the recession, is monetizing deficits way more than before (like half of the budget, apparently, it's money financed) yet we have seen some disinflation (worth mentioning there are widespread price freezes since a few months ago). The author reasons that monetary phenomena cannot explain inflation properly and that other explanations are needed and condemns monetarism. Here are the six points he makes:
1.Is it a mechanical rule?
This way, we can ask by symmetry: if a certainty exists that when emission increases, inflation increases, the reverse should happen when emission becomes negative, obtaining negative inflation. Nonetheless, we know this happens: prices have an easier time increasing and a lot of rigidity decreasing. So the identity between emission and inflation is not like that, deflation almost never exists and the price movement rhythm cannot be controlled remotely only with money quantity. There is no mechanical relationship between one thing and the other.
First, the low hanging fruit: deflation is not that uncommon, for those of you that live in US and Europe it should be obvious given the difficulties central banks had to achieve their targets, but even Argentina has seen deflation during its depression 20 years ago.
Second, we have to be careful with what we mean by emission. A statement of quantity theory of money (extracted from "Money Growth and Inflation: How Long is the Long-Run?") would say:
Inflation occurs when the average level of prices increases. Individual price increases in and of themselves do not equal inflation, but an overall pattern of price increases does. The price level observed in the economy is that which leads the quantity of money supplied to equal the quantity of money demanded. The quantity of money supplied is largely controlled by the [central bank]. When the supply of money increases or decreases, the price level must adjust to equate the quantity of money demanded throughout the economy with the quantity of money supplied. The quantity of money demanded depends not only on the price level but also on the level of real income, as measured by real gross domestic product (GDP), and a variety of other factors including the level of interest rates and technological advances such as the invention of automated teller machines. Money demand is widely thought to increase roughly proportionally with the price level and with real income. That is, if prices go up by 10 percent, or if real income increases by 10 percent, empirical evidence suggests people want to hold 10 percent more money. When the money supply grows faster than the money demand associated with rising real incomes and other factors, the price level must rise to equate supply and demand. That is, inflation occurs. This situation is often referred to as too many dollars chasing too few goods. Note that this theory does not predict that any money-supply growth will lead to inflation—only that part of money supply growth that exceeds the increase in money demand associated with rising real GDP (holding the other factors constant).
So it's not mere emission, but money supply growing faster than money demand which we should consider. So negative emission is not necessary condition for deflation in this theory.
It's worth mentioning that the relationship with prices is observed for a broad measure of money (M2) and after a lag. From the same source of this excerpt one can observe in Fig. 3a the correlation between inflation and money growth for US becomes stronger the longer data is averaged. Price rigidities don't have to change this long term relationship per se.
But what about causality and Argentina? This neat paper shows regressions in two historical periods: 1976-1989 and 1991-2001. The same relationship between M2 and inflation is observed, stronger in the first, highly inflationary period and weaker in the second, more stable, period. The regressions a 1-1 relationship in the high inflation period but deviates a bit in the low inflation period (yet the relationship is still there). Granger causality, as interpreted in the paper, shows prices caused money growth in the high inflation period (arguably because spending was monetized) while the reverse was true for the more stable period.
So one can argue that there is a mechanical relationship, albeit one that is more complicated than simple QTOM theory. The relationship is complicated too for low inflation economies, it gets more relevant the higher inflation is.
Another point the author makes is that liquidity trap is often ignored. I'll ignore the fact that you need specific conditions for the liquidity trap to be relevant to Argentina and address the point. Worth noting that while market monetarists (not exactly old fashioned monetarists) prefer alternative explanations for monetary policy with very low interest rates, this phenomena has a good monetary basis, as explained by Krugman in his famous japanese liquidity trap paper and his NYT blog (See this and this for some relevant articles). The simplified version is that while inflation may follow M2 growth with all the qualifiers needed, central banks may find difficulties targeting inflation when interest rates are low and agents are used to credible inflation targets. Central banks can change MB, not M2 and in normal times is good enough, but at those times M2 is out of control and "credibly irresponsible" policies are needed to return to normal (a more detailed explanation can be found in that paper I just linked, go for it if you are still curious).
It's not like monetary policy is not good, it's that central banks have to do very unconventional stuff to achieve in a low interest rate environment. It's still an open problem but given symmetric inflation targeting policies are becoming more popular I'm optimistic.
2 - Has inflation one or many causes?
In Argentina we know that the main determinant of inflation is dollar price increases. On that, economic concentration of key markets, utility price adjustments, fuel prices, distributive struggles, external commodity values, expectatives, productive disequilibrium, world interest rates, the economic cycle, stationality and external sector restrictions act on it too.
Let's see a simple example: during Macri's government since mid 2017 to 2019 emission was practically null, but when in 2018 the dollar value doubled, inflation doubled too (it went from 24% to 48% in 2018) and it went up again a year later. We see here that the empirical validity of monetarist theory was absent.
For the first paragraph, one could try to run econometric tests for all those variables, at least from my layman perspective. But given that it doesn't pass the smell test (has any country used that in its favor ignoring monetary policy? Also, I have shown there is at least some evidence for the money-price relationship before), I'll try to address what happened in Macri's government and if monetarism (or at least some reasonable extension of it) cannot account for it.
For a complete description of macroeconomic policy on that period, Sturzenegger account is a good one (even if a bit unreliable given he was the central banker for that government and he is considered to have been a failure). The short version is that central banks uses bonds to manage monetary policy and absorb money; given the history of defaults for the country, the Argentinian Central Bank (BCRA) uses its own peso denominated bonds instead of using treasury bonds. At that time period, the BCRA still financed the treasury but the amount got reduced. Also, it emitted pesos to buy dollar reserves, then sterilized them, maybe risking credibility further.
Near the end of 2017 it was evident the government had limited appetite for budget cuts, it had kind of abandoned its inflation target regime and the classic problem of fiscal dominance emerged, as it's shown in the classic "Unpleasant monetarist arithmetic" paper by Wallace and Sargent. Monetary policy gets less effective when the real value of bonds falls, and raising interest rates may be counterproductive in that environment. Rational expectations are needed to complement QTOM.
So, given that Argentina promised to go nowhere with reform, it was expected that money financing would increase at some point in the future and BCRA bonds were dumped in 2018 and 2019 as their value was perceived to have decreased, and so peso demand decreased. It's not that the dollar value increased and inflation followed, but instead that peso demand fell suddenly!
The IMF deal asked for MB growth to be null or almost null but that doesn't say a lot about M2 (which it's the relevant variable here). Without credible policies, the peso demand keeps falling because bonds are dumped even more (see 2019 for a hilariously brutal example of that).
It's not emission per se, but rather that it doesn't adjust properly to peso demand (which is falling). That doesn't mean increasing interest rates is enough to achieve it, following Wallace and Sargent model.
This is less a strict proof that a monetary phenomenon is involved and more stating that the author hasn't shown any problem with that, there are reasonable models for this situation. It doesn't look like an clear empirical failure to me yet.
3 - Of what we are talking about when we talk about emission?
The author mentions many money measures (M0, M1, M2) but it doesn't address it meaningfully as I tried to do above. It feels more like a rhetorical device because there is no point here except "this stuff exists".
Also, it's worth pointing that there are actual criticisms to make to Friedman on those grounds. He failed to forecast US inflation at some points when he switched to M1 instead of using M2, although he later reverted that. Monetarism kind of "failed" there (it also "failed" in the sense that modern central banks don't use money, but instead interest rates as their main tool; "failed" because despite being outdated, it was influential to modern central banking). This is often brought to this kind of discussions like if economics hasn't moved beyond that. For an account of Friedman thoughts on monetary policies and his failures, see this.
4 - Why do many countries print and inflation doesn't increase there?
There is a mention about the japanese situation in the 90s (the liquidity trap) which I have addressed.
The author mentions that many countries "printed" like crazy during the pandemic, and he says:
Monetarism apologists answer, when confronted with those grave empirical problems that happen in "serious countries", that the population "trusts" their monetary authorities, even increasing the money demand in those place despite the emission. Curious, though, it's an appeal to "trust" implying that the relationship between emission and inflation is not objective, but subjective and cultural: an appreciation that abandons mechanicism and the basic certainty of monetarism, because evaluations and diagnostics, many times ideologic, contextual or historical intervene..
That's just a restatement of applying rational expectations to central bank operations. I don't see a problem with that. Rational expectations is not magic, it's an assessment of future earnings by economic actors. Humans may not 100% rational but central banking somehow works on many countries. You cannot just say that people are ideologues and let it at that. What's your model?
Worth noting the author shills for bitcoin a bit in this section, for more cringe.
5 - Are we talking of a physical science or a social science?
Again, a vague mention of rational expectations ("populists and pro market politicians could do the same policies with different results because of how agents respond ideologically and expectatives") without handling the subject meaningfully. It criticizes universal macroeconomic rules that apply everywhere (this is often used to dismiss evidence from other countries uncritically more than as a meaningful point).
6 - How limits work?
The last question to monetarism allows to recognize it something: effectively we can think on a type of vinculation between emission and inflation in extreme conditions. That means, with no monetary rule, no government has the need of taxes but instead can emit and spend all it needs without consequence. We know it's not like that: no government can print infinitely without undesirable effects.
Ok, good disclaimer, but given what he wrote before, what's the mechanism which causes money printing to be inflationary at some point? It was rejected before but now it seems that it exists. What was even the point of the article?
Now, the problem is thinking monetarism on its extremes: without emission we have inflation sometimes, on others we have no inflation with emission, we know that if we have negative emission that doesn't guarantees us negative inflation, but that if emission is radically uncontrolled there will economic effects.
As I wrote above, that's not what monetarism (even on it's simpler form) says, nor a consequence of it. You can see some deviations in low inflation environment but it's not really Argentina's current situation.
Let's add other problems: the elastic question between money and prices is not evident. Neither is time lags in which can work or be neutral. So the question is the limit cases for monetarism which has some reason but some difficulty in explaining them: by which and it what moments rules work and in which it doesn't.
I find the time lag thing to be a red herring. You can observe empirically and not having a proper short/middle run model doesn't invalidate QTOM in the long run. While it may be that increasing interest rates or freezing MB is not effective, that's less a problem of the theory and more a problem of policy implementation.
Conclusion:
I find that the article doesn't truly get monetarism to begin with (see the points it makes about emission and money demand), neither how it's implemented in practice, nor seems to be aware of more modern theories that, while put money on the background, don't necessarily invalidate it (rational expectation ideas, and eventually New Keynesian stuff which addresses stuff like liquidity traps properly).
There are proper criticisms to be made to Friedman old ideas but he still was a relevant man in his time and the economic community has moved on to new, better theories that have some debt to it. I feel most economic discussion about monetarism in Argentina is a strawman of mainstream economics or an attack on Austrians more than genuine points ("monetarism" is used as a shorthand for those who think inflation is a monetary phenomenon more than referring to Friedman and his disciples per se).
submitted by Neronoah to badeconomics [link] [comments]

Why Bitcoin Has a Volatile Value?

Price fluctuations in the bitcoin spot rate on cryptocurrency exchanges are driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). More recently, a volatility index for bitcoin has also become available. Known as the Bitcoin Volatility Index, it aims to track the volatility of the world's leading digital currency by market cap over various periods of time.
Bitcoin's value has been historically quite volatile. In a three-month span from October of 2017 to January of 2018, for instance, the volatility of the price of bitcoin reached to nearly 8%. This is more than twice the volatility of bitcoin in the 30-day period ending January 15, 2020. But why is bitcoin so volatile? Here are just a few of the many factors behind bitcoin's volatility.

Bad News Hurts Adoption Rate

News events that scare bitcoin users include geopolitical events and statements by governments that bitcoin is likely to be regulated. Bitcoin's early adopters included several bad actors, producing headline news stories that produced fear in investors.
Headline-making bitcoin news over the decade or so of the cryptocurrency's existence includes the bankruptcy of Mt. Gox in early 2014 and, more recently, that of the South Korean exchange Yapian Youbit. Other news stories which shocked investors include the high-profile use of bitcoin in drug transactions via Silk Road that ended with the FBI shutdown of the marketplace in October 2013.
All these incidents and the public panic that ensued drove the value of bitcoins versus fiat currencies down rapidly. However, bitcoin-friendly investors viewed those events as evidence that the market was maturing, driving the value of bitcoins versus the dollar markedly back up in the short period immediately following the news events.

Bitcoin's Perceived Value Sways

One reason why bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed quantity of 21 million BTC.
Since that differs markedly from fiat currency, which is dynamically managed by governments who want to maintain low inflation, high employment, and satisfactory growth through investment in capital resources, as economies built with fiat currencies show signs of strength or weakness, investors may allocate more or less of their assets into bitcoin.

Uncertainty of Future Bitcoin's Value

Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer. A store of value is the function by which an asset can be useful in the future with some predictability. A store of value can be saved and exchanged for some good or service in the future.
A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another. Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer. As a result, we see that bitcoin's value can swing based on news events much as we observe with fiat currencies.

Large Currency Holder Risks

Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency. For bitcoin investors with current holdings above around $10M, it is not clear how they would liquidate a position that large into a fiat position without severely moving the market. Indeed, it may not be clear how they would liquidate a position of that size in a short period of time at all, as most cryptocurrency exchanges impose 24-hour withdrawal limits far below that threshold.
Bitcoin has not reached the mass market adoption rates that would be necessary to provide option value to large holders of the currency.

Security Breaches Cause Volatility

Bitcoin can also become volatile when the bitcoin community exposes security vulnerabilities in an effort to produce massive open source responses in the form of security fixes. This approach to security is paradoxically one that produces great outcomes, with many valuable open source software initiatives to its credit, including Linux. Bitcoin developers must reveal security concerns to the public in order to produce robust solutions.
It was a hack that drove the Yapian Youbit to bankruptcy, while many other cryptocurrencies have also made headlines for being hacked or having stashes of cryptocurrencies stolen. As an early example, in April 2014, the OpenSSL vulnerabilities attacked by the Heartbleed bug and reported by Google security's, Neel Mehta, drove Bitcoin prices down by 10% in a month.
Bitcoin and open source software development are built upon the same fundamental premise that a copy of the source code is available to users to examine. This concept makes it the responsibility of the community to voice concerns about the software design, just as it is the responsibility of the community to come to consensus about modifications to that underlying source code as well. Because of the open conversation and debate regarding the Bitcoin network, security breaches tend to be highly publicized.

High-Profile Losses Raise Fear

It is worth noting that the aforementioned thefts and the ensuing news about the losses had a double effect on volatility. They reduced the overall float of bitcoin, producing a potential lift on the value of the remaining bitcoin due to increased scarcity. However, overriding this lift was the negative effect of the news cycle that followed.
Notably, other bitcoin gateways looked to the massive failure at Mt. Gox as a positive for the long term prospects of bitcoin, further complicating the already complex story behind the currency’s volatility. As early adopting firms were eliminated from the market due to poor management and dysfunctional processes, later entrants learn from their errors and build stronger processes into their own operations, strengthening the infrastructure of the cryptocurrency overall.

High-Inflation Nations and Bitcoins

Bitcoin’s use case as a currency for developing countries that are currently experiencing high inflation is valuable when considering the volatility of bitcoin in these economies versus the volatility of bitcoin in USD. Bitcoin is much more volatile versus USD than the high-inflation Argentine peso versus the USD.
That being said, the near frictionless transfer of bitcoins across borders makes it a potentially highly attractive borrowing instrument for Argentineans, as the high inflation rate for peso-denominated loans potentially justifies taking on some intermediate currency volatility risk in a bitcoin-denominated loan funded outside Argentina.
Similarly, funders outside Argentina can earn a higher return under this scheme than they can by using other debt instruments, denominated in their home currency, potentially offsetting some of the risks of exposure to the high inflation Argentine market.

Tax Treatment Lifts Volatility

According to the Internal Revenue Service (IRS), bitcoin is actually considered an asset for tax purposes. This has had a mixed impact on bitcoin's volatility. On the upside, any statement recognizing the currency has a positive effect on the market valuation of the currency.
Conversely, the decision by the IRS to call it property had at least two negative effects. The first was the added complexity for users who want to use it as a form of payment. Under the new tax law, users would have to record the market value of the currency at the time of every transaction, no matter how small. This need for record keeping can understandably slow adoption as it seems to be too much trouble for what it is worth for many users.
Secondly, the decision to call the currency a form of property for tax purposes may be a signal to some market participants that the IRS is preparing to enforce stronger regulations later. Very strong regulation of the currency could cause the adoption rate of the currency to slow to the point where it is not able to achieve the mass adoption that is critical for its overall utility in society. Recent moves by the IRS are not clear as to their signaling motives and therefore have mixed signals to the market for bitcoin.
submitted by FormerSuggestion8 to Bitcoin [link] [comments]

Cryptocurrency Terminologies for Beginners

The rise of cryptocurrency is making a huge influence towards different businesses, companies or even simple individuals that supports the use of it in exchange of service, products, investments, etc.
Number of users increases seemingly. However, beginners often get confused with the jargons, known only in the said network. In this article, I will be sharing basic terms that exists in cryptocurrency world:
Cryptocurrency - is an internet-based, digital/virtual form of currency that is secured by cryptography (which makes it almost impossible to counterfeit) and operates independently from central bank. These include Bitcoin, Bitcoin Cash, Etherium, Ripple, Litecoin, etc.
Cryptography - process of securing communication and data in various electronic transactions (such as account name, account number, amount, digital signature, etc.) by converting plain texts to unintelligible texts and vice versa. It is also be utilized for user authentication.
Blockchain - refers to a growing list of record or the digital information (blocks) stored in public database (chain).
Wallet - or software wallet, is where you “store” your cryptocurrency. It is basically a digital program/system/site/app that store public and/or private keys used to track ownership and transactions of your cryptocurrency. Example: Coinbase, Trust Wallet, Exodus Crypto Wallet, Coins.ph, Binance Wallet, etc.
Wallet Address - is a destination associated with the software wallet where a user sends and receives cryptocurrency. Usually include a long series of letters and numbers. Example: qz8wlltmrj83mj2waw6rgaw9wtzqywuc5s3xqm67g7
Fiat Money - a currency that has actual value maintained; established as money; and backed up by the government. Example: US Dollar, British Pound, Philippine Peso, Japanese Yen, Euro, etc.
Altcoin - or "alts"; refers to any cryptocurrency other than Bitcoin.
ATH (All-time High) - it's when a cryptocurrency breaks its previous record price.
FOMO (Fear of Missing Out) - refers to the strong urge or need to purchase a cryptocurrency when the price starts increasing rapidly.
Mining - process of validation of transactions such as computers trying to solve blocks in a blockchain. Thus rewarding new cryptocurrency to successful user (miner). However, mining scams are rampant nowadays. Miners are always reminded not to provide private keys, deposits, etc to avoid these frauds.
FUD (Fear, Uncertainty and Doubt) - this is the greatest risk for investors; A state of mind that often influence when and how crypto-enthusiasts make trades, purchase or hold onto their coins thus affects greatly in the actual prices/convertion rate of cryptocurrency.
DeFi - short term for "decentralized finance" which includes digital assets, protocols, smart contracts, and dApps; is a financial software built on the blockchain that can be pieced together like Money Legos. Etherium is the primary choice for DeFi Application.
Stablecoin - refers to a class of cryptocurrency that attempts to stabilize coin prices, backed by reserve assets.
Reserve Assets - financial assets denominated in foreign currencies, held by central banks; must be readily available for monetization and/or must be an external physical asset. Example: US Dollars, Gold.
That's all for now, I hope this information might help especially beginners who still lack knowledge regarding these terms. Continue supporting #Cryptocurrency
submitted by jBaij to btc [link] [comments]

Unpopular opinion: No need for satoshi symbol. Stick with Bitcoin, BTC, and ₿.

What’s being debated is really a deflation-driven re-denomination, but there is lots of precedence for inflation-driven re-denominations:
In a world where satoshis / sats are a useful pricing denomination, it would be clear from context whether denomination is “sats” (new) or “Bitcoin” (old) since there’s eight orders of magnitude difference.
During times of transition (now) there is confusion, but trying to introduce a new named “currency” (since it has a symbol) will only increase that confusion.
Also, I think it’s unclear whether the future “new Bitcoin” denomination should be sats vs bits/μBTC vs mBTC, and if either of the latter are the case, the sats denomination is all the more confusing.
Another analogy would be stock splits. When a company does a e.g. 7:1 stock split, it doesn’t get a new symbol.
My bias is that Bitcoin should be simple for new users and general public, and a new symbol for “sats” feels like a re-branding that dilutes mindshare and increases confusion.
That’s why I think successful re-denominations and stock-splits are useful analogies. As are the perils of re-branding consumer products, with the opposite implication.
Think the best counter-argument (to this unpopular opinion) is that the general public has lots of experience with fractional denominations, with the Latin-derived “cent” being the most common. But even here I think there is trouble because:
  1. While the general public is aware cents, in many countries there are fractional denominations which are only used by specialists and don’t have a symbol. For example in the US the lowest denomination established by law is the “mill” which is one-tenth of a cent and one-thousandth of a USD. Aren’t sats (especially now) more like these specialist denominations?
  2. In most countries, the general public does not use a symbol for “cent”, which is sometimes ¢, and instead just abbreviates the word (“25c.”) or uses a decimal in written contexts (“0.25”).
For everyone passionate about adoption and use of sats, I think it makes more sense to just use “s.” (as an analogue to cents) when working with sats (adding BTC / ₿ if unclear whether you’re talking about Bitcoin), and as Bitcoin use transitions to a new base denomination (whether it is mBTC, bits, or sats), that can become “new Bitcoin” (consensus-driven re-denomination).
EDIT: typos
submitted by colinhb to Bitcoin [link] [comments]

What does currency mean?

It is easy, it is the most loved money in an area.
You can make this experiment, but you don't really have to, because you know the answer already.
You have some mexican pesos paper cash, some usd paper cash, a dollar denominated visa card, and a bitcoin cash wallet with plenty bitcoin cash.
You have your own preferences for what kind of money you prefer to pay with, in this case it would be 1 bitcoin cash, 2 mexican peso, 3 the card and 4 the usd cash. The reasons are your own, but for instance you have a small amount of paper usd, just in case, always in your wallet, but you don't really want to spend them, because then you will have the hassle of getting new ones. What is currency is defined by the buyer and the seller together.
Now you want to buy a beer, and these things would happen:
You find yourself in Mexico, and you ask the server what payments he prefers. He will say mexican peso paper. He could take the dollar paper, but would complain maybe that his vendor wants pesos, so that would be easier, he could take the card, if he had a card machine. When you ask about bitcoin cash, he would probably not understand what it is.
If you do the same in the united states, the waiter would probably prefer the card, next the dollar cash.
If you do the same in sweden, the waiter would say "we only take cards".
So now you now what is currency in those countries.
This one is interesting: If you ask in Bitcoin Coffe in Praha, Czech Republic, you would get this: No Bitcoin Cash unfortunately, but Bitcoin BTC -- and by the way do you have Litecoin? It has low fees.
So in that place, but limited by the walls of the venue, Bitcoin BTC is the currency.
submitted by ErdoganTalk to btc [link] [comments]

A summary of QASH and why I believe it will serve a pivotal role in the growth of the cryptocurrency market worldwide.

SIDE NOTE: DO NEVER EVER LEAVE YOUR CRYPTOCURRENCIES ON QRYPTOS & QUOINE. WITHDRAWAL TAKES SEVERAL DAYS AND IN SOME CASES LONGER THAN A WEEK LATELY. MANY PEOPLE HAVE BEEN HAVING HUGE TROUBLES
 
DISCLAIMER: I'm not affiliated with this project in any way. Don't take this as actual investment advice at face-value, but rather a comprehensive summary I put together based upon my own findings, research, and personal insight about the project. As always, if you do wish to invest, please DYOR beforehand and make your investments based upon your own assessment of the project.
 
 
The token is called QASH (by QUOINE) and it essentially serves as the financial utility and payment token for QUOINE's upcoming Liquid+ platform and all services which it provides. I haven't actually seen much talk going on about this anywhere, and to me, it's sort of baffling how seemingly under-the-radar this has been flying, given the problem that it's going to be solving in the cryptocurrency space.
 

The Problem

The platform that they've built is super intriguing to me as a cryptocurrency trader due to the fact that it's aiming to fundamentally solve a huge, yet often overlooked problem in this space: illiquidity. This really excites me because in my personal experience (and I'm sure for many others on this sub who are stuck trading with minor currencies), attempting to purchase BTC, ETH, or other tokens with a fiat currency like say, GBP, is just downright painful and usually ends up in an immediate loss since there are significantly fewer buyers and sellers in the relevant GBP markets than say, USD markets - and thus the market price can tend to slip easily in either direction even with relatively small trade amounts (as a result of high spreads).
 

The Solution: Liquid+

Now imagine the case whereupon this problem doesn't exist — where anyone around the world, whether it be individuals, institutional investment, businesses, etc., would always be able to have immediate access to highly liquid cryptocurrency markets, and not be subject to an inherent disadvantage simply by virtue of the specific fiat currency they're using to trade with or one particular exchange that they're trading on.
 
This is a landscape which the Liquid+ platform will be able to render to the cryptocurrency economy, and what I think solving this problem will ultimately mean is that we'll start to see a much more global influx of individuals and institutions coming into the cryptocurrency space because a massive, worldwide liquidity pool will have been created through the Liquid+ platform. Essentially, the platform will enable minor currencies such as the Rupee, Peso, Pound Sterling, Thai Baht, whatever it is you name it — to be traded with on the same level of liquidity that a major currency (e.g. USD) does. This is the function of what they're calling the "World Book".
 

World Book

The World Book essentially is a global aggregation of orders sourced from many different cryptocurrency exchanges (i.e. "liquidity silos"). Orders which are placed from within any of the connected exchanges can be simultaneously published into the Liquid+ platform and be matched with orders from a completely separate exchange. What's even more fascinating about this is that these matched orders aren't even necessarily required to be of the same trading pair.
 
So for instance, a trader who intends to make a btc-yen trade can be automatically matched up with another trader making a totally separate trade say, eth-euro, just by virtue of the world book internally executing a two-step transaction in order to "hop" from the euro trade to the yen trade. It's important to note that this entire process all happens seamlessly and is transparent to the end-user. Each trader would see every other traders' orders denominated in their preferred quote currency (even though the orders may actually be based on a different quote currency on the other side), meaning that the world book is "currency-agnostic" amongst all orders.
 
Performance-wise, the platform is deemed to be capable of handling over a million of these orders / FX-conversions per second, and is built upon a set of already established and tested technologies developed by QUOINE. As a result, much of the platform is actually already in place, and the integration work with many of the world's largest cryptocurrency exchanges are already underway or have been completed.
 
Additionally, here's a great explanation of what the World Book can do as described by Andre Pemmelaar, who is one of the architects of the platform. Further high level explanation by QUOINE CEO Mike Kayamori.
 
Another important point to note on this is that there's generally a big incentive for exchanges to participate in this World Book, as it will be able to funnel in substantially more trading volume from the markets of other exchanges.
 
In my mind, the World Book will no doubt be an absolute game changer to this space when it hits. However, there's another equally, if not more substantial component to the platform:
 

Prime Brokerage

Liquid+ will act as a Prime Brokerage service, and it will be the first of its kind in the cryptocurrency space (by which QUOINE is officially licensed by the JFSA, one of the strictest regulators in the world). One way you can think of it, is that this could effectively make Liquid+ into the Goldman Sachs or Morgan Stanley equivalent of the cryptocurrency space, and it's in fact aiming to become the platform upon which major hedge funds and institutional investors around the world will prefer to leverage in order to mitigate counter-party risk (such as a particular exchange getting hacked and losing funds), manage and move large amounts of fiat capital, as well as take advantage of the globally sourced liquidity pool provided by the world book.
 
To me, it makes perfect sense to have integrated, seeing as many of the major reputable exchanges around the world will have already been interconnected through the Liquid+ platform. Ultimately, it means individuals as well as major institutions coming into this space will no longer be required to deal with the pain of managing numerous individual accounts across multiple exchanges and transferring funds between each. Instead, Liquid+ allows its users to be provided with direct market access to the liquidity and trading pairs yielded by all associated exchanges in a single platform, and on a single account. By now, you can probably start to imagine just how attractive this is going to be for the major institutional players coming into this space, and on an international scale.
 

User-Generated Trading Strategies

Another intriguing feature is that once the QASH blockchain is implemented, the platform will be able to facilitate the authoring of custom-written automated trading strategies and algorithms by any of its users (including individuals as well as institutions), utilizing a variety of mainstream programming languages. These strategies can then be published to the platform and shared amongst other users. The profits yielded by these trading strategies are subject to fees which are then paid back in QASH to the authors of those strategies.
 

QASH Token Value Proposition

The value of the QASH token is proportional to the scale of its utility and velocity of usage. For starters, QASH can be used for payment on the Liquid+ platform for everything including trading fees, fees on profit from automated trading strategies (as described above), fiat / crypto credit lending, and for all other services that it renders. QASH can also be used as payment on QUOINE's other products: Quoinex and Qryptos. Additionally, users who elect to pay using QASH on these platforms do so at a discounted rate on fees.
 
Another important point to note here is that QASH will be used to fuel payment for all services rendered by the Prime Brokerage. So for instance when institutions start to utilize the platform, it means that this money will start to flow through the QASH token as well.
 
But I think perhaps the bigger and longer-term value proposition for QASH is the fact that it's striving to become the "Bitcoin or Ethereum of the financial services industry", meaning widespread adoption of QASH as the preferred cryptocurrency for use in financial institutions. As more and more of these institutions seek to gain a foothold in the blockchain space, they're going to be looking for cryptocurrencies that maintain trustworthy backing and have the appropriate governmental regulation / security frameworks set in place. QASH aims to fulfill this role and is in fact officially approved as a cryptocurrency by the Japanese government. Moreover, QUOINE is the only cryptocurrency exchange company which is audited by a "Big Four" accounting firm.
 
QASH is initially built upon the ERC-20 token standard, but will eventually migrate to its own blockchain by Q2 2019. As opposed to Ethereum, the blockchain will incorporate sophisticated tools and services which are geared specifically toward usage in the financial services industry (read more about these here). Having this inherent support for many financially related functions will be paramount for wider adoption as a token of preference, as QASH seeks to bridge the gap between traditional finance and the cryptocurrency economy.
 
With adoption by the financial services industry, the value of the QASH token can then be expected to continue increasing as a result of its ever expanding utility and usage.
 
Additionally, here's an explanation of the QASH blockchain as described by Andre.
 

Brief Company Background (QUOINE)

QUOINE is a profitable and established FinTech company (over 250 years of combined FinTech experience) who have built Quoinex, one of the top ranking exchanges in the world by volume, as well as Qryptos, a token-to-token asset exchange and ICO platform. Quoinex is one of the largest fiat-to-crypto exchanges in the world with $12 Billion in annual transactions. They are the first global cryptocurrency firm in the world to be officially licensed by the Japan Financial Services Agency (License 0002) and has as a "Big Four" external auditor.
 

Leadership

What gives me confidence that QASH may succeed in becoming widely adopted by financial institutions is that the company is lead by those with strong financial leadership. QUOINE's executives hail from the financial services industry, many of whom have served executive positions at some of the biggest financial institutions in the world.
 
Detailed information about the executives and board directors can be found on the Liquid+ website (or in the whitepaper) so I won't list them all out here for the sake of conciseness, but many of them come from executive positions at major institutions including:
 
 

QASH / Platform Investors

Again, a full detailed list can be found on the Liquid+ website. Investors in the platform and QASH ICO include those who have executive leadership roles at companies such as:
 
 
Additionally, Mike had announced in his video AMA a few other notable investors in the ICO who aren't listed on the website:
 
 

Liquidity Partners

The platform of course needs a lot of liquidity partners from around the world participating in order for the system to function worthwhile. Andre discusses their numerous liquidity partnerships in this video, so I'll simply summarize:
 
 

Other Tidbits & Speculation

 

TL;DR

QASH, in the long-run, ultimately aims to become the standard preferred cryptocurrency used by financial institutions worldwide, the value of which is derived from the scale of its utility and widespread usage. The QASH token is also used to fuel payment for fees and services in QUOINE's trading platforms, one of which is an upcoming platform called Liquid+.
 
Liquid+ is a novel platform which I think will change the landscape of the cryptocurrency space. It builds a single massive global liquidity pool called the World Book which allows minor fiat currencies (e.g. Rupee, Peso, GBP, etc.) to trade crypto with the same liquidity that a major fiat currency (e.g. USD) does, significantly reducing losses due to high spreads, and ultimately provides the liquid on-ramp necessary for many potential untapped markets worldwide.
 
The platform also features a Prime Brokerage service (first of its kind in crypto) which will allow users direct market access to many exchanges throughout the world without the hassle of having to manage accounts on each, which mitigates counter-party risk. The Prime Brokerage service will be an attractive vehicle upon which major institutional investors will want to use for managing funds in the cryptocurrency space because it's safe, regulated, and government approved.
 
QASH is created by QUOINE, one of the largest cryptocurrency exchange companies. QUOINE is headed by executives who previously served high-level positions at the world's largest financial institutions. Investors in QASH include financial executives at major institutions, and also a few well known figures: Taizo Son, Nobuyuki Idei, and Jihan Wu.
 

Further Reading & Resources

submitted by swoopingmax to CryptoCurrency [link] [comments]

If Only Bitcoin Existed In The 80’s When I Was A Kid In Argentina

If Only Bitcoin Existed In The 80’s When I Was A Kid In Argentina

https://preview.redd.it/g08ne5o7m6221.png?width=275&format=png&auto=webp&s=9b0122db78f0ce75953ccaea9978ca80a29e1ece
http://genesisblocknews.com/if-only-bitcoin-existed-in-the-80s-when-i-was-a-kid-in-argentina/
If Bitcoin would have existed in the 80’s when I was a kid in Argentina, my parents could have used it, and it would have saved them lots of arguments, plenty of trips back to home to pick up more money, and lots of headaches due to the inflation that the country was suffering through. My fathers mechanic shop closed down since hyperinflation made auto parts too expensive. I remember walking to the store in the freezing weather to get bread, with the same amount of money my mom gave me to buy bread a couple of days earlier, and coming back home empty handed because the price had just gone up 200%. I remember a time when they sent me to get just under a half a gallon of milk, and the price had gone up over 300%. When I got back to the house my grandmother asked me what happened to the milk and I answered the money you gave me would not buy us a glass of milk, and she stormed out of the house grabbing me by the hand and walking 8 long blocks to the local small market to confront the owner and asked him what was going on with his prices. I remember the gentleman humbly, patiently, and respectfully explaining to my grandmother what was going on with the inflation.
Also the denominations on the bills became so high that it cost tens of thousands of Australes for a piece of candy or chocolate. A kilogram of potatoes cost 50,000 Australes, making it difficult to carry your bills in a wallet. Instead of wallets we used a suitcase to carry the worthless currency. Money printing by the government was the cause of the collapse of the currency. The government was and still is in control of currency printing, making it impossible to survive even to this date. Printing money is an everyday thing for them, causing the same bills to be worth less and less.
The destruction of the fiat currency will be the fastest rout to fix Argentina’s economy and inflation, since that could lead to adopting Bitcoin, which would put an end to this madness and destruction. It seemed like we were moving the right direction by installing Bitcoin ATMs in Argentina, but the government put a stop to the Bitcoin growth by stopping the installation of Bitcoin ATMs. By the end of 2019 over 1,500 Bitcoin ATMs were supposed to be installed to provide easy access. Maybe the G20 meeting that was held in the country has something to do with it, but I’m only speculating.
Argentina’s currency, the Peso, has lost more than 50% of its value against the dollar this year, with expectations of another 40% loss before the year’s end, making the country a perfect location for Bitcoin ATMs, which could help save the country’s collapsing economy by providing access to a relatively stable currency. Bitcoin is the cure to the country’s inflation and a cure to against greed, since Bitcoin has a fixed supply and cannot be printed at will by any government or entity.
Bitcoin could also stop the massive invasion of Argentinians into neighboring countries. In my family’s case migrating to the United States in the early 90’s was not easy. Bitcoin could of saved us lots of tears, sacrifices like losing love ones and not been able to see them, and it would have saved lots of cultures. If Bitcoin would have existed in the 80’s when I was a kid in Argentina, it would have turned my country into the world power that it used to be back in the day.
submitted by turtlecane to Bitcoin [link] [comments]

How to understand the economic effect of a chain split

Something like a chain split does not exist in other money types especially not in the paper fiat rectangle money types. Let me explain.
Good money have some characteristics, explored hundreds of years ago, but well after money came in to common use, because in my opinion the ascent of money is due to the way the human brain works, with regards to observing the society around each individual, looking forward with saving and investment, and the most advanced human ability: To look forward and predict how other people in society will act in the future, the economic meaning of the word speculation.
Of the money characteristics, we choose only one for this purpose, the fungibility, which means that each unit is just like any other of the same unit, they are interchangable.
Now, when it comes to a fiat money type, for instance mexican peso, the 500 pesos rectangle is quite different from a 100 pesos rectangle, so they are not fungible in the first place. What exists is a virtual unit, called the peso. The different denominations are pegged to that virtual unit by Banco de México. You can go to that bank and change a 500 to 5 100's for free. You don't normally need that, because any merchant regard them as equal, give proper change, and also sometimes helpfully splits a large bill into smaller for you. But you can not expect that, not even in any bank, if you come with a truck full of small notes they want to be paid for the service. You can only demand it at the central bank. Since the central bank has the ability to create new and destroy old at will, they are able to defend that peg indefinitely.
So for the purpose of understanding a chain split and create something that could be like it, for the fiats, we need to simplify the situation quite a bit: Say
People happily trade these bills for merchandise, a bit problematic with only one denomination, say 20 pesos, but it is doable (most fiats have a smallest bill or coin, if you need to trade smaller, you can't, but merchandise can be lumped together to alleviate it).
Then comes the split.
On a signal, a message from above or what have you (!), every holder of the note cuts it in two parts, one part has the number, now to be called Number-Scale (there is a scale on that note), the other half called Benito-Face (the name of the guy).
Then, next you go to a merchant, and you see that all the prices have approximately doubled (since all money now are halves). You ask him what he prefers, Scales or Benitos, and he either says it doesn't matter or he prefers the Scales because those also have serial numbers on them, maybe he thinks that they are less counterfeitable or something. You give him Scales.
After some time, some people have mostly Scales, other people have mostly Benitos, therefore the value starts to diverge. Remember, there is nobody to peg the value together.
The two money types have slightly different properties as indicated above. As a consequence, or maybe by random, the liquidity will start to differ, and higher liquidity begets more liquidity, one of those money types will mostly take over trade and holding, the other type will mostly fall into irrelevance.
To understand it requires you to swallow those huge assumptions for the purpose, and some ability to think abstractly. It never happens in the fiat world, but I think it is a model that can explain the economic effect of a chainsplit producing two slightly different types of cryptomoney, like the Bitcoin Cash split in August 2017 and the Bitcoin Satoshi Vision split in November 2018.
And I offer a smiley to everybody who read all of that!
submitted by ErdoganTalk to btc [link] [comments]

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

'''
• The indivisible minimum KRATSCOIN unit is 0.00001 instead of 0.00000001 to denominate realistic currency rates in FOREX. Denomination cannot be determined or dictated by the value of a currency. If KRATSCOIN is valued at USD10,000.00 then the smallest unit of KRATSCOIN at 0.00001 = USD0.10 and nothing smaller than USD0.10 in KRATSCOIN.
Example: If USD1.00 = THB30.00 and the smallest denomination of USD is USD0.10, then a USD0.10 which is THB3.00, is unable to buy a piece of candy at THB1.00. Thus the USD must be converted into a smaller currency of THB in order to buy the THB1.00 candy.
• KRATSCOIN is in-line with standard International Foreign Currency Exchange Practice at indivisible minimum unit 0.00001.
• Each KRATSCOIN is equipped with a 13 digit “SERIAL CODES AND NUMBERS” and there will be a total of 2,100,000,000,000 SERIAL CODES in total.
Example1: 1st KRATSCOIN = AKDJFYRS.00000 Example2: 1st Fraction from 1st KRATSCOIN = AKDJFYRS.00001 Example3: 2nd Fraction from 2nd KRATSCOIN = AKDJFYRS.00002 Example4: Last KRATSCOIN = DLXVZKWR.00000 Example5: 1st Fraction from Last KRATSCOIN = DLXVZKWR.00001 Example6: 2nd Fraction from Last KRATSCOIN = DLXVZKWR.00002
• In Year 2015, Silk Road in DeepWeb utilization of Bitcoin in their transactions amounts to USD1.2billion spanning over 950,000 users. One may argue that Bitcoin is most utilized by the black market, which then maintains its value and worth among other factors. However, the USD1.2bil a year over 950,000 users are far fetch from the Legitimate Users in comparison. Bitcoin transactions runs into USD40.0bil in recent Legitimate Crypto Exchanges. In summary, legitimate transaction of crypto currencies is many times larger use in illegal transactions.
DIFFERENCE BETWEEN FIAT AND CRYPTO:
• Fiat Currency is backed by Governments/Countries itself. What determines the value of a currency is the economic health, demand, growth, political stability to name a few, of the respective country. Before 1930, most fiat currencies were backed by gold and silver.
• Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government - quoted in google.com.
• What backs crypto value is purely supply and demand. The demand creation of a crypto is its sole objective. To create demand, the crypto has to have a purpose. And most purpose commonly promoted is utility. The number of ways you can utilize the said crypto. The more utilization factors the more demand there is for it.
• There are other ways to substantiate value of a crypto and that is to back the crypto with a 1 to 1 ratio in assets or in USD. Then the question is, how 3,000 crypto currencies in circulation be monetary eco sustainable? Can anyone imagine walking into McDonald and view a chart of 3,000 different pricing? Which also means the crypto is a payment gateway pegging against USD instead of bearing any true characteristic of a currency.
• A country’s currency is in its own legit form of legal tender, the only currency acceptable under financial sovereigns of a country. People in the world must be made to understand that. Retailers in Thailand cannot put up products price tags in EUROS/USD, it is illegal. It has to be in Thai Baht.
• It is hardly imaginable for everyone in the world to retail with a Crypto-Currencies at a rate of 7 transactions per second. When mining nodes are reduced due to non-performing mining ratio, mining blocks in the Blockchain will significantly be limited too, rendering delays in transactions while usage increases.
• In time to come, as trends of crypto picks up, Thailand can issue BAHT COIN or UK the STERLING COIN, exactly what China wishes to do. Digital RMB, but would such crypto currencies be fully decentralized? We all have our answers. Absurd to even think of producing Thai Baht, Pound Sterling or Chinese Yuan at the cost of electricity. It is currencies in digital forms.
KRATSCOIN is not meant for that purpose. In some opinion, apart from utilization, a crypto can be for safekeeping, an entity for keeping money while allowing easy liquidation, at a click of a mobile button, not to mention sending or transferring without the trouble of going to banks, which was the original purpose of Bitcoin to begin with. Therefore, KRATSCOIN would be better termed as Crypto Commodity, sharing similarities as Metal Commodities.
An individual cannot use gold to make a purchase, neither can one eat gold. It can only be kept or invest in for appreciative value over time. Gold is being exampled for its scarcity which reasons for its higher value over its cousin, silver or bronze. Who or what determines the value of gold? Just like any other crypto, demand by humanity. As in all other commodities, it must also be placed in checks by governments. To put in checks, serial numbers are introduced to protect a country’s commodities outflows or illegal exports.
Humanity made Bitcoin a reality. Acceptance by the majority members of the public made Bitcoin to what is it today with the trust they entrusted it with, or is the majority public hopping on the band wagon to make a few quick extra bucks? Whatever the reasons are, the characteristics of Crypto Currencies are only matched by the behavior of Commodities.
SERIALIZED COINS - WHAT IT MEANS FOR THE PUBLIC: Every currency has its own remarkable name, design and colors. Dollars, Euros, Pound, Tugrik, Peso, Rupee, Rupiah, Dina, Ringgit, Baht and the list carries on. One thing every currency have in common - Serial Numbers.
In any crime, investigators will firstly establish motives and mode of operation, both of which are very likely related to money. So following the money trial is a natural thing to do for investigators/authorities and it has become a common practice. Crimes require funding ie robbers need money to buy guns to carry out its robbing activities. Cutting off financing will reduce criminal activities. That’s the approach governments of the WORLD have adopted for crime fighting.
Perhaps people do not realize this while most do not feel the pinch. Humanity tends to take life for granted until apocalypse happens. Take a minute to visualize the tallest tower in your homeland collapse into a pile of dust with thousands of casualties effecting everything else that comes to mind. Imagine a family member, just 1 is enough, is among those casualties.
• Imagine if monetary system is not in place and drug dealers, among many, roam the earth freely distributing what can be death threatening substance to your kids. What if you are mugged of your inheritance [items left to you by your father] that is beyond retrieval? As for crypto enthusiast, what if your wallet gets hacked as even the mighty Pentagon gets hacked. All the above can go away if the crypto system leaves a trail for hound dogs to sniff out. Money Trail or Serial Codes Trail to be exact.
• Citizens rely on governments and their countries to do what is best for them to lead their daily lives, flourish, advance, improve and strive but at the same time, citizens want to take away the single most important thing deemed crucial in the hierarchy of humanity from governments with additional boastful remarks such as “I transferred $400 million from one corner of the earth to another corner in a single transaction and no governments can do anything about it”.
• In-short, to boast unregulated financial movement is to arrogantly promote crime without realizing it while challenging the world’s monetary authority. Oldest advice in the book teaches us never to pick a fight we can’t win.
• Serial Coded Coins does not take away the financial movement freedom nor does it take away your privacy. It merely provides Authorities the necessary means needed for crime prevention and fighting. It only re-inforce security and safety. SERIALIZED COINS - WHAT IT MEANS FOR GOVERNMENTS: • Governments are relentlessly trying to find new ways to keep track of crypto transactions. Crypto Currency Exchanges, just like all other Financial Institutions and Banks, are required to practice the most stringent Know Your Customer (widely known as KYC) process. The KYC is designed to provide governing agencies and authorities with information pertaining to crypto ownerships.
• But no governments can have information on Peer-to-Peer (also known as P2P) transactions unless the government in question launch a full scale Federal Investigation on certain suspected individuals seeking Wallet Developers to unveil the ownership of certain wallet addresses. Do not forget, National and Global Security trumps Privacy Act. Refusal to co-operate under the pretext of Global or National Security will only result in an out-right ban, which is exactly what happened to Blackberry.
• Questions to Governments – What if Wallet Developers or Crypto Exchanges shuts down which can happen for various reasons be it foul-play, sinister or forcefully under threat? What if servers are damaged and ruined? An EMP strike or a simple magnet can make it happen. Information/identities of suspected customers of such addresses shall be lost forever and along with it the Money Trial.
• The most probable way of evading Authorities with crypto assets are developing an e-wallet for own illicit purpose. Since the cost of developing an e-wallet is relatively low in considerable cost to hiding, what can governments do to flush out these ants from the vast networks of tunnels?
• With Serialized Coded Crypto Assets, it doesn’t matter if servers of Exchanges or Wallets are destroyed. The Serial Codes of each token/coin enables governments of every participating country to track both origin and destination by identifying records of each token/coin in wallet address. It can disappear into a cold wallet but emerging some place later yet Authorities can still detail which particular token/coin has at one moment of time been into which wallet, on what day and date.
• If the battle of financial crimes can be resolved with a simple Serialize Coded Crypto Asset, the eradication of corruptions, money laundering, unlawful proceeds and terrorism financing will be made possible. Criminals can no longer exploit the genius creation of Sathoshi – Blockchain and Crypto-Currencies.
• Global Security, Anti-Terrorism Financing and Money Laundering could just be excuses granting government agencies the need to have access to financial information in the Monetary System. Nonetheless, it is in the interest of every nation that capital outflow is controlled. Capital Outflow is most frequent when the economy of a country is deteriorating. In the face of an economy meltdown, monetary flow is most needed and yet citizens tend to transfer monies further away illegally from their own country in an act of selfishness. This would not be tolerated by any country. Serial Coded Coin shall prove this attempt futile.
• In most part of Asian Countries, many crypto-currency mining operations are carried out illegally. The legality sits on thin fine line where Authorities can pin only stealing of electricity as a major concern to the respective country. Since most Power Companies belongs to the Country in one way or another, it is financially damaging to Power Producers and Utility Suppliers. Serial Codes can determine if the KRATSCOIN is mined legally or illegally making it difficult for miners or mining farms to mine crypto while avoiding making electricity payments. Will this deterrent disrupt the chain of KRATSCOIN supply? That’s not how Blockchain Tech works. TAXATIONS - WHAT IT MEANS FOR PUBLIC AND GOVERNMENTS: • Taxation cannot be imposed on “Illegal & Unlawful Proceeds” instead confiscation is enforced in many countries. Origins or proceeds of Serialized Coded Crypto Assets can be easily identified by the Serial Codes in-conjunction with the Blockchain. This exercise can evidently proof the legitimacy of the aforesaid token/coin. By “Illegal & Unlawful Proceeds” also refers to crypto coins obtained via illegal mining operations.
• Taxation on Crypto Assets are calculated on profits deriving from the sale/disposal of the crypto Assets. If we are small crypto believers, the amount of taxation rendered by Inland Revenue will be insignificant. Why risk Freedom of Life over Freedom of Small Monies. If we are big crypto believers, taxation on Serialized Coded Coins can be considered added security to your assets protection.
• By adopting Serialized Crypto Assets, declaration is made easily possible via proof of token/coin origin via the Blockchain. If the Authorities can know where our crypto assets come from, the Authorities will know where it will disappear to. It is taxation cum insurance in one tiny sum. This added security with freedom feature will encourage self-declarations of crypto assets to Authorities and Agencies. PRIVACY & ANONIMITY: • Many may be skeptical of their wealth being tracked and monitored. But in this era of technological advance society, everything we touches has our signature. Banks, iPhones, Samsung Mobiles, Google, Facebook, Whatsapp, WeChat, LINE, Viber, Facebook, Properties, Utilities. Almost everything. It is to this fact that there is a need for Privacy Protection Act.
• As explained before, Crypto Currency Exchange KYC procedures is designed to expose the identity of Crypto Assets ownership. The Blockchain is supposed to serve as a transparent information platform. The question of privacy over Serialized Coded Coins does not exist, it does not make Serialized Coded Coins ownership any less private.
• Ownership of wallet addresses shall always remain anonymous while the only way Authorities can get to it is through Wallet Developers by virtue of Global/National Security Threats or by a Court Order as per the Privacy Protection Act. SAFETY & SECURITY (CODED CRYPTO VS FIAT + COMMODITIES): • No human mind can memorize the millions of serial numbers printed on fiat currencies. The records of Serialized Coded Coins will forever be in the Blockchain embedded within each transaction from wallet to wallet.
• Serialized Commodities such as gold can be melted down. Diamonds recrafted. Fiat double printed. But not Serialized Coded Crypto Assets.
• Should an accessory system be added into the KRATSCOIN Blockchain, allowing reports on criminal activity be made within the Blockchain, notifying all ledgers of certain stolen Serial Coded Coins, enabling WARNINGS and forbidding next transaction of that particular Serial Coded Coin, wouldn’t this function enhance protection. A theft deterrent function which can never be achieved with physical gold, diamonds or fiat. KRATSCOIN SUMMARY: • Most crypto currencies have not reach a level of security alert for governments. This could be the only reason why a possible ban has not been discussed. China and India has begun efforts to control or ban crypto currencies in their quest to combat capital outflow, writer’s personal opinion. The EU has stopped Libra from implementation. “A company cannot be allowed Authoring Power for issuance of currencies” quoted the governments. KRATSCOIN is fully decentralized with no ownership nor control by any country, company or individual. Once again, the beauty of Bitcoin decentralization concept prevails.
• “There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar” quoted in google.com.
• Most countries have “Foreign Reserves” as backing to a country’s fiat currency. It is a mean of “back up” attempt should all factors above mentioned leading to the value of their currencies collapse. Then what will happen if the Country of the Foreign Reserves collapse?
• Serial Coded KRATSCOIN belongs to no one, no country, no company and therefore theoretically shall not be effected by politics, war or global economy meltdown yet everyone, every country and every government is able to benefit from KRATSCOIN.
"Quoted by" [[link]6 [[link]7 [[link]8 [[link]9 [[link]10
'''
DIFFERENCE BETWEEN KRATSCOIN AND BITCOIN
Go1dfish undelete link
unreddit undelete link
Author: xia112
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Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

When Transnationalization of Bitcoin?

(Throwaway because I don't want to talk about moving money across international borders on a regular account.)
I'm curious who here on BitcoinDiscussion is from or has ever temporarily lived in a country with a second tier currency. Not countries with the pound, yen, franc, euro, or the various G7 dollars. I'm talking about countries with the liras, pesos, lev, rubles, and rupees. What are the perspectives of your neighbors on bitcoin? How much are people discussing it these days?
In my experience living in two such countries, I discovered Bitcoin was the cheapest and safest ways to transfer >500 USD out of the country. Importantly, buying BTC allows you to keep control of your funds rather than trusting sending it to a relative or friend in another country through services like Western Union.
For example, if you're a Russian oligarch currently in danger of getting your overseas holdings sanctioned out from under you, I expect that right about now, you'd start considering whether cryptocurrencies are the right decision for some percentage of your portfolio. If you think there is a risk Trump can get impeached, then you may also worry there is a risk that America could retaliate pretty massively with economic sanctions on Russia.
And Venezuela's case shows that being in a low-income country is no barrier to affording bitcoin in small amounts. I imagine that BTC is on the rise in all such countries proportionate to their internet access and the general perspective of fear for their own currencies' instability. Unlike the Reserve Bank of India, bitcoin isn't going to outlaw large denominations of your currency, like what happened with the rupee in 2016.
Even though there are lots of cryptocurrencies out there to choose from, bitcoin's price has been the most stable of all of the major coins in 2018 -- which sounds like it's a joke, but it's true.
Not every Turkish or Brazilian grandparent will care what our magical Internet Money is, but I'm willing to bet there's already a higher percentage of BTC hodlers in Caracas, Venezuela than in many American state capitals.
For more and more people living in such countries, Bitcoin is THE transnational currency.
Of course I don't think anyone can predict whether this growing transnationalization of bitcoin will play out rapidly in 12 months or more slowly, perhaps over a decade, but someday soon, there will be more BTC hodlers than USD, GBP, or EUR holders in the low- and medium-income countries.
(I'm an underpaid analyst irl, if you care about my credentials. As always, DYOR.)
submitted by hodlingisusing to BitcoinDiscussion [link] [comments]

Livestock on the Blockchain

Banks are conservative and on the surface, they are portraying they hate cryptocurrency! Just look at the famous comment by Jamie Dimon who first says that he is going to fire any employee who buys Bitcoin but suddenly has an attack of conscience and now "regrets calling Bitcoin a Fraud". Of course, the firm he helms, JP Morgan Chase, was caught with its pants down buying Bitcoin as Mr. Dimon sent it plunging from US$5000 to US$3,000!! Brilliant move.
So it should come as no surprise if we find mainstream banks clandestinely supporting Bitcoin or Cryptocurrencies. But what I do find surprising is that there is one initiative support by our Maybank, the Malaysian Banking Giant! Now that is super cool, but what really makes it surprising is this initiative is for the UNBANKED, the segment of the population (the bottom 40% or B40 as our Government refers to them perhaps) that does not have a bank account or is simply not profitable as customers
And the initiative is with Sentinel Chain which now aims to unlock the value of the "hidden assets" which most farmers have, which is LIVESTOCK. Have you ever been to a kampung in the heartland? These are good working folks but they often lack the capital to expand their business. Now, if we could collateralise their assets (here it's livestock, or to put it in Crypto terms the Tokenisation of Livestock) then it would provide them with sufficient capital for expansion or for times when money is needed (imagine that it's the start of the school year but the livestock they have is still not in a position to be "monetised" - borrowing against your assets. This will ultimately bring various financial services to the unbanked such as banking, credit facilities, insurance and even crowdfunding. In short, it uses the spirit of Blockchain to attack a niche area in Agriculture (livestock) and attempts to liberate the farmers from the yolk of Poverty.
And considering that the rural folks form the backbone of the voter base of Malaysia (do you that FELDA alone can sway 50 Parliament seats?) this could be a strategic project in collaboration with the Government of ASEAN countries which have a high percentage agrarian base. And bringing these facilities together with ASEAN giant Maybank is a stroke of genius IMHO. Hello, CIMB, are you around to hear this?
Among the Services that Sentinel Chain will provide are listed below, which now looks like a menu from a financial services Supermart. Have you ever heard of crowdfunding services offered by a Bank?
Well, this seems to all fine and dandy and brings us to a farmer utopia world but how are we to identify the livestock (which have legs and wings by the way) which belong to a particular farmer? It uses an innovative Identification tag for Livestock.
In short, the core components are of this entire ecosystem which also features a Private Blockchain are:
Livestock RFID Tag - a tamper proof RFID tag attached to the livestock which provides immutability of ownership (asset tracking). Geolocation and timestamp information is affixed.
Cross Pay Mobile App (A mobile walled based on Android-Good move, since I doubt farmers have Apple iPhones!!) - A cryptocurrency token called SENC which is also attached to an LCT (Local Cross Pay Token) denominated in the users local native currency (there will be an LCT Ringgit for Malaysia, Baht for Thailand and Pesos for the Philippines are some examples). This avoids the issue of Forex conversion rates and makes usage and business transactions seamless across borders. Cross pay will operate across many countries.
B2B Marketplace - This puts all the components together as a Private blockchain so users can access financial services from providers all over ASEAN. There will be multiple Cross Pay blockchain in different countries
Ok, so now I understand. Could Maybank be secretly backing up all these ICOs and emerge as the Blockchain champion of ASEAN in the future? Leaving rivals such as CIMB in the dust as it moves aggressively into an untapped market? This is such a great ICO opportunity that I am surprised that the ruling coalition (Barisan Nasional) has figured out an idea like this. Releasing the rural folks and bringing them financial facilities of the 21st Century through Blockchain.
This is definitely an investable project in my opinion as it will break existing glass walls to the problems of the unbanked in many ASEAN countries. So there, now even farmers can go to the MOON with Sentinel Chain!!
NOW EVEN "DEAD CAPITAL" CAN BE FUNGIBLE ASSETS.
This is a classic example that blockchain is capable of addressing real-world issues and I would certainly love to see more projects similar to Sentinel Chain in the near future. Meanwhile, you can Google them up for more information. They have an active Telegram community: t.me/sentinelchain and you can find further details on their announcement channel: t.me/sentinel_ANN

senc #sentinelchain #blockchain #livestock #insurance #maybank#fenbushicapital #crosspay #iglobepartners #infocorp #mediashares#crowdo #vechain #proofofsupport

submitted by CamusAlpha to ico [link] [comments]

[uncensored-r/CryptoCurrency] A summary of QASH and why I believe it will serve a pivotal role in the growth of the cryptocurre...

The following post by swoopingmax is being replicated because some comments within the post(but not the post itself) have been openly removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ CryptoCurrency/comments/7gqj7b
The original post's content was as follows:
SIDE NOTE: DO NEVER EVER LEAVE YOUR CRYPTOCURRENCIES ON QRYPTOS & QUOINE. WITHDRAWAL TAKES SEVERAL DAYS AND IN SOME CASES LONGER THAN A WEEK LATELY. MANY PEOPLE HAVE BEEN HAVING HUGE TROUBLES
 
DISCLAIMER: I'm not affiliated with this project in any way. Don't take this as actual investment advice at face-value, but rather a comprehensive summary I put together based upon my own findings, research, and personal insight about the project. As always, if you do wish to invest, please DYOR beforehand and make your investments based upon your own assessment of the project.
 
 
The token is called QASH (by QUOINE) and it essentially serves as the financial utility and payment token for QUOINE's upcoming Liquid+ platform and all services which it provides. I haven't actually seen much talk going on about this anywhere, and to me, it's sort of baffling how seemingly under-the-radar this has been flying, given the problem that it's going to be solving in the cryptocurrency space.
 

The Problem

The platform that they've built is super intriguing to me as a cryptocurrency trader due to the fact that it's aiming to fundamentally solve a huge, yet often overlooked problem in this space: illiquidity. This really excites me because in my personal experience (and I'm sure for many others on this sub who are stuck trading with minor currencies), attempting to purchase BTC, ETH, or other tokens with a fiat currency like say, GBP, is just downright painful and usually ends up in an immediate loss since there are significantly fewer buyers and sellers in the relevant GBP markets than say, USD markets - and thus the market price can tend to slip easily in either direction even with relatively small trade amounts (as a result of high spreads).
 

The Solution: Liquid+

Now imagine the case whereupon this problem doesn't exist — where anyone around the world, whether it be individuals, institutional investment, businesses, etc., would always be able to have immediate access to highly liquid cryptocurrency markets, and not be subject to an inherent disadvantage simply by virtue of the specific fiat currency they're using to trade with or one particular exchange that they're trading on.
 
This is a landscape which the Liquid+ platform will be able to render to the cryptocurrency economy, and what I think solving this problem will ultimately mean is that we'll start to see a much more global influx of individuals and institutions coming into the cryptocurrency space because a massive, worldwide liquidity pool will have been created through the Liquid+ platform. Essentially, the platform will enable minor currencies such as the Rupee, Peso, Pound Sterling, Thai Baht, whatever it is you name it — to be traded with on the same level of liquidity that a major currency (e.g. USD) does. This is the function of what they're calling the "World Book".
 

World Book

The World Book essentially is a global aggregation of orders sourced from many different cryptocurrency exchanges (i.e. "liquidity silos"). Orders which are placed from within any of the connected exchanges can be simultaneously published into the Liquid+ platform and be matched with orders from a completely separate exchange. What's even more fascinating about this is that these matched orders aren't even necessarily required to be of the same trading pair.
 
So for instance, a trader who intends to make a btc-yen trade can be automatically matched up with another trader making a totally separate trade say, eth-euro, just by virtue of the world book internally executing a two-step transaction in order to "hop" from the euro trade to the yen trade. It's important to note that this entire process all happens seamlessly and is transparent to the end-user. Each trader would see every other traders' orders denominated in their preferred quote currency (even though the orders may actually be based on a different quote currency on the other side), meaning that the world book is "currency-agnostic" amongst all orders.
 
Performance-wise, the platform is deemed to be capable of handling over a million of these orders / FX-conversions per second, and is built upon a set of already established and tested technologies developed by QUOINE. As a result, much of the platform is actually already in place, and the integration work with many of the world's largest cryptocurrency exchanges are already underway or have been completed.
 
Additionally, here's a great explanation of what the World Book can do as described by Andre Pemmelaar, who is one of the architects of the platform. Further high level explanation by QUOINE CEO Mike Kayamori.
 
Another important point to note on this is that there's generally a big incentive for exchanges to participate in this World Book, as it will be able to funnel in substantially more trading volume from the markets of other exchanges.
 
In my mind, the World Book will no doubt be an absolute game changer to this space when it hits. However, there's another equally, if not more substantial component to the platform:
 

Prime Brokerage

Liquid+ will act as a Prime Brokerage service, and it will be the first of its kind in the cryptocurrency space (by which QUOINE is officially licensed by the JFSA, one of the strictest regulators in the world). One way you can think of it, is that this could effectively make Liquid+ into the Goldman Sachs or Morgan Stanley equivalent of the cryptocurrency space, and it's in fact aiming to become the platform upon which major hedge funds and institutional investors around the world will prefer to leverage in order to mitigate counter-party risk (such as a particular exchange getting hacked and losing funds), manage and move large amounts of fiat capital, as well as take advantage of the globally sourced liquidity pool provided by the world book.
 
To me, it makes perfect sense to have integrated, seeing as many of the major reputable exchanges around the world will have already been interconnected through the Liquid+ platform. Ultimately, it means individuals as well as major institutions coming into this space will no longer be required to deal with the pain of managing numerous individual accounts across multiple exchanges and transferring funds between each. Instead, Liquid+ allows its users to be provided with direct market access to the liquidity and trading pairs yielded by all associated exchanges in a single platform, and on a single account. By now, you can probably start to imagine just how attractive this is going to be for the major institutional players coming into this space, and on an international scale.
 

User-Generated Trading Strategies

Another intriguing feature is that once the QASH blockchain is implemented, the platform will be able to facilitate the authoring of custom-written automated trading strategies and algorithms by any of its users (including individuals as well as institutions), utilizing a variety of mainstream programming languages. These strategies can then be published to the platform and shared amongst other users. The profits yielded by these trading strategies are subject to fees which are then paid back in QASH to the authors of those strategies.
 

QASH Token Value Proposition

The value of the QASH token is proportional to the scale of its utility and velocity of usage. For starters, QASH can be used for payment on the Liquid+ platform for everything including trading fees, fees on profit from automated trading strategies (as described above), fiat / crypto credit lending, and for all other services that it renders. QASH can also be used as payment on QUOINE's other products: Quoinex and Qryptos. Additionally, users who elect to pay using QASH on these platforms do so at a discounted rate on fees.
 
Another important point to note here is that QASH will be used to fuel payment for all services rendered by the Prime Brokerage. So for instance when institutions start to utilize the platform, it means that this money will start to flow through the QASH token as well.
 
But I think perhaps the bigger and longer-term value proposition for QASH is the fact that it's striving to become the "Bitcoin or Ethereum of the financial services industry", meaning widespread adoption of QASH as the preferred cryptocurrency for use in financial institutions. As more and more of these institutions seek to gain a foothold in the blockchain space, they're going to be looking for cryptocurrencies that maintain trustworthy backing and have the appropriate governmental regulation / security frameworks set in place. QASH aims to fulfill this role and is in fact officially approved as a cryptocurrency by the Japanese government. Moreover, QUOINE is the only [cryptocurrency exchange company which is...
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

SATOSHI - The New World Standard

Economics 101 until last paragraph:
To say I am beyond bullish on BitCoin is a misnomer. While I fully believe in BitCoin as the leader of Cryptocurrency, it is cryptocurrency itself I am bullish on. I cannot predict the future of cryptocurrency and I won't try. However, I do believe that a cryptocurrency will be used as the world standard for currency in the marketplace. It could be BitCoin, it could be Ethereum, or it could be one of the hundreds that exist or the thousands that do not exist yet. Value is determined by supply and demand. Supply is scarcity. Demand is how much it is desirable by the poplace.
Bitcoin, currently at $600+, is at that price only because of the supply of bitcoins and the demand for bitcoins. Being finite at 21,000,000, bitcoin supply will reach a point where it will not increase and the supply increase that does occur now continually decreases as time goes on. The value of bitcoin must increase if demand remains the same only because the value of most other currency decreases due to inflation.
However, if demand increases, the value of bitcoin skyrockets. Demand can increase only through increasing the amount of people and businesses who accept bitcoin for tender. Now, here comes the big IF. If merchants begin using bitcoin as readily as they do debit cards, then this will encourage more people to spend their bitcoin, rather than just speculate in the currency. And if that happens, more businesses will begin to accept bitcoin without the debit networks. That’s far less expensive than paying the fees associated with credit card transactions. As more businesses catch on, the cycle repeats.
With all that said, and if bitcoin is THE currency, I see bitcoin having unlimited appreciating value. Yes, UNLIMITED.
The largest problem I have with bitcoin is the value of the satoshi. The satoshi is the smallest denomination of bitcoin. If the currency has unlimited appreciating value, then eventually, the satoshi will be equivalent to a yen, a peso, then a dollar, then a hundred dollars, and so on. It will be the satoshi that becomes the world standard, but even then there will be a point where the satoshi is overpayment for a dozen eggs, or a loaf of bread. Unless there is a way to do microtransactions of less than a satoshi, then the value of bitcoin must be capped at $5,000,000, making the satoshi a nickle and destroying any transaction in pennies. If there is a way to do microtransactions smaller than satoshis, then satoshis will become the world standard until the millisatoshi takes its place.
submitted by Yukerb0y to Bitcoin [link] [comments]

How do you price a USD/Bitcoin forward contract?

I have been lurking for a while and am pretty impressed with the caliber of this forum, so here's my challenge: I am having a hard time seeing how any crypto currency ever overcomes exchange rate volatility. Like most of you I am very excited by the potential of a decentralized currency, but I cannot get my head around the practical conundrum.
The conundrum in a nutshell: liquid debt markets are the sine qua non of stable exchange rates, but volatile exchange rates deter borrowers and lenders from originating Bitcoin-denominated debt.
How can an entrepreneur ever build a Bitcoin-based business if no lenders will quote them an interest rate on a Bitcoin-denominated loan? As a potential investor in a Bitcoin-denominated business, what baseline return would you demand on an investment with a 1-year payback period? How about a 5-year payback period?
If you can’t hedge exposure to Bitcoin volatility then how can you even think about Bitcoin-denominated investments?
Quick primer on using debt markets to price forward currency contracts: the forward discount/premium between two currencies is driven by the ratio of interest rates on deposits, because a decoupling of interest rates and currency forwards would represent an arbitrage opportunity (with turnover of >$4 trillion per day the global foreign exchange market is mind-bogglingly liquid; it reacts swiftly to new information and obvious inefficiencies are quickly traded away).
For example, say the 1-year rates on USD and MEX deposits are 2% and 3%, respectively. If the current (spot) exchange rate is 15 MEX/USD, then the 1-year forward contract would be 15.14706 MEX/USD (15 x 1.03/1.02).
The intuition behind this is that you could simultaneously (i) borrow 1,000 USD at 2%, (ii) trade 1,000 USD for 15,000 MEX, (iii) invest the pesos at 3%, and (iv) lock in the 1-year forward rate of 15.14706 MEX/USD. After one year you would receive 15,450 MEX (15,000 x 1.03), which after settling your forward contract would yield 1,020 US (15,450 / 15.14706), which is exactly what you owe on the original loan (1,000 x 1.02). Total wash.
If the forward rate were anything other than 15.14706 you could generate arbitrage. Another example: if the 1-year rate were 15.1000 MEX/USD then by borrowing 1,000 USD at 2% and investing it as 15,000 MEX at 3% you would end up after a year with 1,023.18 USD (15,450 / 15.1000), which after paying your 1,020 USD loan leaves $3.18 of risk-free profit.
Here’s my point: deep, liquid debt markets are the ballasts of currencies. They stabilize long-term exchange rates so that borrowers and lenders are comfortable committing to long term investment vehicles. If long-term exchange rates are not stable (i.e.; tradable at stable rates) then companies are squeamish about doing business in foreign countries and trade is limited to short-term transactions. This is what we see today in the Bitcoin economy, with merchants swapping out Bitcoins for dollars immediately following their transactions.
This strikes me as a classic chicken/egg problem. For want of a ForEx market Bitcoin can’t develop a debt market, and for want of a debt market the ForEx market will never appear.
Disclaimer: I’m not an economist, but like most of you I have a strong amateur interest in economics. My ForEx background is largely academic (I structure commodity derivatives for a living). My understanding could be completely off base, and I am wide open to being shown my errors.
submitted by what_wags_it to Bitcoin [link] [comments]

Bitcoins aren't a bubble and here is why

There is a proverb in the world of economics and it goes as such: "There are gains from trade" The example I'll chose is as follows. Two individuals, on two different islands, rely on eggs and bananas for sustenance. Both individuals need eggs AND bananas to survive. All other nutrients the two individuals need are satisfied by the wildlife and plants on each island. Island A happens to grow plenty of bananas while island B has plenty of chickens that produce eggs. The two individuals are visited by a merchant who happens to trade bananas for eggs 1:1. The individual on island A trades extra bananas for eggs to the merchant. The individual on island B trades extra eggs for bananas. Both people survive this way by trading. lucky enough for these people they trade their extra bananas and eggs for the other and come out ahead. Without trade the two individuals would die from malnourishment. The gain from trade, in this example, is survival. The merchant, too, gained because he was exchanging 1 egg for 10 bananas to island A and 1 banana for 10 eggs to island B. This is actually what many merchants do on a regular basis. This is also what stock exchangers do to survive. Money exchangers do the same.
The example I used involved bananas and eggs. What many people forget, when exchanging anything, is that their "money" is good for many other things than just goods and services and other "money" it is also good for saving. People tend to forget this, especially if they're not used to keeping money in large quantities in places they won't use it.
I believe Bitcoin is going to stay and I'll explain why. Bitcoin is not a stock, and does not have as many barriers to entry as stocks do. When people think of "investing" they think of stocks and bonds. When people think of saving, however, they generally think of currency or cash (a piggy bank with coins in them). I believe the founder exchangers have taken on the idea of currency savings. This idea usually doesn't take hold of a person or people unless they see good reason to.
There is a mentality to new exchangers and a mentality to old exchangers. I'm going to explain why old exchangers behave differently than new ones.
If you own any amount of bitcoin you are an exchanger (unlike a trader). Exchangers undergo arbitrage when they sell or buy. They have to set the price of their currency against another currency and hope other buyers or sellers will agree to that price. They buy for one price, and sell for another (typically higher than they bought for). The initial exchangers to hit the money market probably didn't expect much and probably didn't invest much, but over time saw their new money become more "valuable". The value of the coins didn't change, the value of all goods and services against that coin did. Everything else became less valuable compared to bitcoins. This is different than stocks. Stocks become more valuable, or less valuable (independently) compared to everything else. Why is this the case, you might ask? because you cannot exchange corn for every good or service. In some places of the world, corn is so plentiful you can't give it away, you might have to pay someone to take it from you! Currencies, however, can be exchanged for every good and service (worldwide). You can, however expect money currency to hold across distances but there is a caveat. Money of different types and denominations is worth different amounts than their numbers denote. For example, some places don't accept 100 dollar bills. Does this make the bill less valuable? well somewhat yes, but somewhat no (I'll let you think of the many reasons why). Currencies, just like stocks, can have nominal prices. If, say, I decide to sell my single ear of corn for 10 USD (or 100 pesos MEXICO) I'm likely to wait a very long time before someone buys. If, however, I sell my ear of corn for ten cents (1 peso MEX) I'm very likely to sell within the day. What if, however, I decide to sell just the peso or the dollar and forget about the corn altogether? Say I sell 1 dollar for 11 pesos to people heading south for vacations. I'll probably sell it quickly. Say I sell 9 pesos for 1 dollar to Mexicans heading north for work. I could even do this to the same exact person every year twice a year who happens to have dual citizenship (many families with relatives abroad already do this because guess what? they're still selling for a better asking price than the exchangers at banks and seaports and airports). So the rule that money is good everywhere isn't actually true, it needs to be amended. Money within one region is more valuable than to people in a distant region (provided that money needs to be exchanged in regions further away).
The same holds true for currency. If you have ever exchanged money at an airport (some of you likely have) you likely took a decent hit. People will take your 10 dollars USD for 90 pesos, or even 60, or maybe 50. People who are learning a new currency may make mistakes and lose a lot of it because people set their currency "price" as however they like. "My Deutschmark is worth 40 bags or rice or 300 bananas," is one way someone might market their currency. This doesn't usually work, however, as people find the nearest human being with a Deutschmark and learn what that currency is really worth (or just use their closes google-ready device to check the exchange rate). Deutschmarks have been eliminated since 1999, but traded for about 2.08 DM at the time. The last time the predecessor to DM, Rentenmark (RM), were generally accepted you could probably buy no more than 25 bananas for one RM.
It becomes even more complex the further go dive into how currencies behave. Dying people pay entire grandchild college funds or firstborns retirement packages to save their own lives sometimes. In other lands dying people pay the actual grandchild or firstborn to those they owe debt!
In another example, very young children will do the unthinkable and say "I'm sorry," "thank you," and even go so far as to wipe their own behinds for just 4 USD a month, if you're lucky you can make them empty a trash bin too. Most wealthy elites on this planet would never think of doing those things for 4 USD a month. Different people pay different things in different ways but one thing holds true, a currency that is more liquid than another will always win. Sometimes sex, or commodities become like currencies, but they dwindle or are competed against by better providers with a "better" or more "Refined" version.
Think about currencies as chips in a casino. Every casino has their own chip. Sometimes you will bring a chip home from Los Vegas or Reno. The chip, you may find, have very little value outside the casino. Likewise, carrying Euros in the USA becomes less useful than carrying USD. Most people won't accept your Casino chip or Euro at the grocery store or restaurant in Pico, California. In fact most people in Pico, California may have a hard time knowing what either of these currencies are. To them you become a currency salesperson instead of a buyer of goods and services. To make that chip worth something you need someone willing to exchange for a price that either matches or comes close to what everyone else is exchanging for. There are always costs to maintaining a casino. Making chips isn't cheap for casinos, the chips can't be duplicated easily or the house will be flooded with fakes and bust. Nations have the same problem and spend lots of goods and services to keep their currencies from busting. Provided, however, they keep things going without problems the house will win regardless of who bets on what.
If you are skeptical of this "value" of bitcoin consider the following sociology proverb. An idea, if held by people such that behavior of those people has an actual physical on others or things that idea has effectively become a reality. This is called the "Thomas theorem" in sociology.
In Economic theory you can consider money a "tangible reference." It refers to things that are real. IOUs are kind of like money because if "I owe you one apple" is written down by you, and handed to me, I'll be able to claim a real goddamned apple from you at some point. I could even take you to court if you decide to default on your IOU and get it that way. Money is a more open-ended IOU. It refers not to an apple owed by one person to me, but by everyone willing to sell apples to me. Someone with massive stashes of money knows well that society, in a way, "owes" him or her almost anything imaginable that can be sold. That person, however, knows he will pay different amounts of "IOUs" back to people for a good that is very very difficult to come by. ((I'm going to reference Shawshank Redemption here, please forgive me if you haven't seen/read it.)) Take Red from Shawshank redemption charging all those valuable cigarettes for the small tool that Andy needed. It wasn't cheap, but in that small world of prison, getting a tool to tunnel out of prison costs a life savings. Take Brooks, the old man who only wanted to be with his crow and give books to the other prisoners. I bet brooks would have traded anything he owned to get back INTO prison. Different people have different desires, needs, and taste. This is why Stocks are volatile at times. Corn today, apples tomorrow, and then apple tomorrow (apple computer stock). The same holds true with currencies. Some people will pay a lot of money for a coin struck by ancient rome or egypt. Perhapts that coin was worth only a pint of wine, but today its worth a thousand bottles of fine red from France's best vineyards.
Money doesn't degrade quickly, and online money never degrades. I'm talking about the physical failure of money, when a coin breaks, or becomes so worn down it can't be distinguished from copper or nickel ore stone. Many of ancient coins were lost to degradation. I bet, however, if you check your diablo II account on that old computer you still have all the money you had when you left it.
This is the true value of satoshis. While corn, if left in savings, will rot, satoshis and bitcoins will not. Saving bitcoin isn't a joke or a lofty "gamble" its a huge investment into tomorrow and it has already begun to pay off.
Say, for example, George crafts and delivers a pizza and is paid in 20 USD on dec 2011. George goes home and puts that 20 dollars away. In 2013 George decides to buy a pizza. Fortunately for George, the pizza only costs 20 USD. What happened? something very special. George may have given and received one pizza, but when he put that money he received away he placed it into Savings. His savings account was the bitcoin currency. George could have chosen many many other currencies but he decided on bitcoin. Now George can buy pizzas all year without even touching his income he makes now. The best part about George's new fortune is that he won't have to deal with a bank taking their share every month, he won't even have to spend gas or energy to get to the bank, he only has to use his home pc.
This is precisely what the initial exchangers of bitcoin (provided they didn't sell immediately) experienced and that experience will not likely be forgotten. Their friends, family, and acquaintances will have heard of their own type of "pizza trading" tales. When they consider dumping all their bitcoins they may reconsider, and save a few. This, in spite of any bubbles of crashes is why bitcoin will hold strong. It may even hold strong at 20 or 40 or 100 USD/btc, but it won't die because old school investors will not sell below a prices that surpases what they paid. Bitcoin is the only money to increase in relative value as quickly as it has in history to date! It has done so in one special way, it is accepted worldwide by any merchant abroad willing to trade with you. They are very much like the banans AND eggs on those islands in my first example. Bitcoins are the fish, oil, cars, and donuts found around the world, they need only nominated (as a nominal currency) as such.
Bitcoin is an idea, but also a reality.
submitted by MTAApple to Bitcoin [link] [comments]

[Proposal] Like Internet DNS, we should create a "VNS" (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - for bitcoin subunits, plus (like Twitter @justinbieber or #ferguson) a "cointag-forming prefix" $ to define "cointags" like $beer or $coffee for a fixed number of satoshis.

TL;DR - We should embrace and extend ChangeTip to create a full-fledged "VNS" (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - for subunits (ie, fractions) of a bitcoin - possibly supported by something like NameCoin - and let social networks innovate and popularize different names for various subunits (fractions) of a bitcoin.
Going further, by analogy with "tags" like @katyperry and @justinbieber or #Ferguson or #Failwhale, we should introduce a "cointag-forming prefix" $ so that people could define "cointags" like $beer or $coffee or $donut or $bit or $TripToParis - and then Alice could send Bob two coffees by writing "@Bob $coffee2" (or "@Bob $coffee 2") on various social networks.
Edit: Another possible suggested name: "BCDNS" = "Bitcoin Custom Denomination Name System". Eventually, many laypersons might see the "BC" at the beginning as simply meaning "bitcoin" - so they will understand it as a kind of "BitCoin DNS" - ie the "DNS for bitcoin [custom denominations]".
Creating a universal VNS (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - for subunits (fractions) of a bitcoin could be a way to let a hundred million Bitcoin "custom denominations" (or "vanity names") bloom.
These new names would then naturally and democratically compete for popularity on social networks, spontaneously standardizing various "custom denominations" or "vanity names" for various subunits (or fractions) of bitcoin - and later, ranking sites like Alexa could rank these "custom denominations" or "vanity names" in terms of popularity.
ChangeTip is already doing much of this.
ChangeTip already allows users to define "custom denominations" for various subunits (fractions) of a bitcoin, such as "1 coffee", "1 beer", "1 tulip", "1 donut", etc.
http://www.coindesk.com/changetip-brings-bitcoin-micropayments-youtube-tumbl
http://bitcoinscientist.com/changetip-brings-bitcoin-micropayments-to-youtube-google-and-tumbl#sthash.N2DJT5UK.dpbs
Note (1) : Some of these custom denominations are being defined in terms of the bitcoin "currency" itself, while others are being defined in terms a legacy fiat currency, such as the US Dollar.
Both approaches are of course fine, with different uses in different situations - depending whether you want to isolate yourself from the inflation and volatility of legacy fiat or from the deflation and volatility of bitcoin.
Note (2) : With sidechains implementing a two-way peg between bitcoin and an altcoin, the altcoin name could also be used as a cointag - eg $FooCoin or $BarCoin or $SillyCoin etc.
Note (3) : One nice side-effect of implementing a VNS (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - for bitcoin subunits and making it available on social networks would be that this could sidestep / obviate / broaden / democratize the never-ending debates we've seen raging here on /bitcoin about which "official" name to adopt for various subunits (fractions) of a bitcoin (eg, "bits", "mBTC", "uBTC", "millies" and "mickies", "zibs", etc.)
By standardizing ChangeTip's "custom denominations" in a new VNS (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - and providing a "cointag-forming prefix" such as $ similar to @ and # - possibly also supported in some way by NameCoin - we could push these subunit-naming debates off /bitcoin and out onto the entire Internet as a whole, and let the various social networks decide what their favorite names are, as people on Twitter, YouTube, Tumblr, Google+, Facebook etc. define and use their favorite for various bitcoin subunits.
The key to implementing this is to look at the analogies of the Twitter prefix @ for people and the hashtag-forming prefix # for topics - and go all the way and finish the job and introduce a cointag-forming prefix such as $ or ¢ for currency - ie for "custom denominations" or "vanity names" for subunits (fractions) of a bitcoin.
  • The @ prefix creates a person's address.
  • The # prefix creates topic tag (a "hashtag").
  • The $ prefix creates a cointag (a custom denomination representing x satoshis)
This cointag-forming prefix $ (or possibly ¢) could be viewed simply as a more compact (one-character!) replacement for the lengthier string "ChangeTip" already in use.
So basically we could adopt the symbol $ as a prefix to let people easily create "cointags" like:
$satoshi $btc $bitcoin $bit $donut $coffee $beer $trip-to-paris ... or $TripToParis ?? 
Note (4) : Regarding $ vs ¢ : The symbol ¢ is appealing because (a) it looks like it stands for "coin" and (b) it suggests a departure from the hegemony of the US Dollar symbol $.
And, yes, the symbol ¢ can be already typed on most computer keyboards (if you can figure out how).
But there are two big drawbacks for using ¢ - availability and accessibility.
Availability: The ¢ symbol might not be available at all on older cell phones (maybe later via emoticons via a firmware upgrade - but we don't want our new "cointag-forming prefix" to require, say, people in remote African villages to do a firmware upgrade to their cell phones).
Accessibility: Although ¢ is available on most computers, it can be hard to (figure out how to) type for many users - without doing a Google search for some special, esoteric Unicode or "numeric keypad" sequences.
Finally: The $ symbol is SHIFT-4 on many computer keyboards - so it occurs in a kind of "natural progression" right after SHIFT-2 for @ and SHIFT-3 for # - which are the two major tag-forming prefixes already in use.
So basically we would be generalizing the $ symbol to become not just the symbol of the US dollar, but also a "cointag-forming prefix".
(Yeah I do like ¢ better but let's be realistic: It'll take forever to get ¢ onto most people's devices... so maybe we could just say that using $ as a "cointag-forming prefix" can be seen as subverting or usurping - or, more diplimatically, "embracing and extending" - the hegemony of the US Dollar symbol $ :-)
Note (5) : As many people outside the US know, combining $ with some letters to form new currency names is totally in line with current practice. Several countries have already added some characters before (or after) the $ to indicate their country's currency.
The table on this wikipedia page shows some examples of national currencies composed of a $ plus some letters:
https://en.wikipedia.org/wiki/Currency_symbol#List_of_presently-circulating_currency_symbols
United States (US$), Australian (A$), Bahamian (B$), Barbadian (Bds$), Belizean (BZ$), Bermudian (BD$), Brunei (B$), Canadian (CA$), Cayman Islands (CI$), East Caribbean (EC$), Fiji (FJ$), Guyanese (G$),[5] Hong Kong (HK$/?/?), Jamaican (J$), Kiribati, Liberian (L$ or LD$), Namibian (N$), New Zealand (NZ$), Singaporean (S$), Soloman Islands (SI$), Surinamese (SRD), Taiwanese (NT$/?/?), Trinidad and Tobago (TT$), Tuvaluan, and Zimbabwean (Z$) dollars
Argentine, Chilean (CLP$), Colombian (COL$), Cuban ($MN), Cuban convertible (CUC$), Dominican (RD$), Mexican (Mex$), and Uruguayan ($U) pesos
Nicaraguan córdoba (C$)
Brazilian real (R$)
Note (6) : Existing national currency symbols created using $ usually put the $ at the end.
However, by analogy with the tag-forming prefixes @ and #, the $ should go at the beginning of the tag.
This is how Twitter currently uses its # "tag-forming prefix" to define hashtags for topics such as #Tigerblood, #Moscow, #Egypt, #Failwhale and #FollowFriday, etc:
http://social-media.top5.com/the-5-most-popular-hashtags-of-all-time/
And this is how Twitter currently uses the @ tag-forming prefix to define people's addresses like @katyperry, @justinbieber, @BarackObama, @YouTube, @taylorswift13, etc:
http://twittercounter.com/pages/100
Note (7) : There should be a rule that a "cointag" (starting with $) cannot end in a number!
This is because a cointag juxtaposed with a amount afterwards like $beer100 should mean:
100 beers 
It should not mean a totally new cointag like "beer100".
Note (8) : As with many traditional "currency symbols": we should put the resulting user-defined, multi-character cointag (starting with $...) before the number, not after the number - eg, as of this writing the following are all roughly equal:
 $ 100.00 € 80.04 $bit 304,000.62 
Note (9) : Other examples: The cointag-and-amount combos below would all represent the same number of bitcoins (ie, 1 bitcoin):
$satoshi100,000,000 $satoshi 100,000,000 $satoshi100000000 $satoshi 100000000 $bitcoin1 $bitcoin 1 $btc1 $btc 1 $bit1,000,000 $bit 1,000,000 $bit1000000 $bit 1000000 $bit1,000,000.00 $bit 1,000,000.00 $bit1000000.00 $bit 1000000.00 
Other cointags, for "vanity names", could be invented in a similar way.
So if we now have the "cointag-forming prefix" $ that means "money" or "currency" (like @ means "person" and # means "topic"), then people could invent "cointags" like:
$tulip $donut $Snoop $prince $ferguson $netneutrality $obama $hillary $RandPaul $JebBush $MedecinsSansFrontiers $DoctorsWithoutBorders $StarCitizen $CoolestCooler $UbuntuEdge $PebbleSmartwatch 
http://en.wikipedia.org/wiki/List_of_highest_funded_crowdfunding_projects
Remember, each of the new "currency symbols" or "cointags" above would represent a fixed number of satoshis.
In turn, when actually being used on a social network, the cointag should of course be followed by a number (with or without a space before the number), saying how many of these "cointags" (currency units, or bitcoin subunits) are being "sent".
This might give us a sort of micro-crowd-funding platform "for free" - by combining social sites like Twitter, Facebook, YouTube, Google+ (and later Disqus, etc.) with bots like ChangeTip and this proposed VNS (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - for subunits (fractions) of a bitcoin.
Note (10) : For a given cointag (such as $donut), the following four variants might all be acceptable as a shorter way of writing "changetip 2 donuts":
$donut2 $donuts2 $donut 2 $donuts 2 
The following, however, should not be allowed - they should be rejected as "incorrect syntax":
$ donut2 $ donuts2 $ donut 2 $ donuts 2 
Notice that the above 4 items all have a space between the $ and the word. This is invalid syntax.
As we know from Twitter, the @ or # (and now the $) has to be prefixed directly onto the word (with no spaces), in order to correctly form a "tag" - ie @justinbieber (not @ justinbieber) or #ferguson (not # ferguson).
Note (11) : Some thoughts about unique domain names and the Internet:
It could be argued that one of the major reasons for the success of the Internet has been its domain name system (DNS): a global namespace uniquely mapping domain names (such as example.com) to IP addresses (such as 168.192.1.1).
This is a situation where something apparently small and local (a unique name) helps support something big and universal (the entire Internet).
Of course the trick is that the unique name isn't really "small and local" - as we all know, it's actually backed up by a rather "big and universal" guarantee (or axiom or property): a domain name is "unique" - ie it always maps to the same IP address - ie there are no situations where a given domain name can map to more than one IP address.
This is what DNS provides.
Some people also refer to this as "no walled gardens". In the early days, AOL and Compuserve each had their own "walled garden" where they implemented their own mappings of keywords to IP addresses - but eventually for the most part the universal mapping implemented by DNS won out.
Coming back to Bitcoin, there are actually two dimensions where a similar apparently "small and local" uniqueness property could potentially be implemented to help support (and popularize) something "big and universal" like the Bitcoin network:
  • defining a name (or several names) mapping to a Bitcoin address - although people concerned about privacy might not be interested in doing this (due to the suggestion to avoid reusing the same Bitcoin address);
  • defining a name (or several names) mapping to a bitcoin subunit - ie for an amount between 1 and 100,000,000 satoshis
It is easy to see that (at least) 100,000,000 such subunit names can be created (actually it's more than 100,000,000 names if you allow multiple names to map to the same number of satoshis - which is fine because it doesn't cause any confusion).
So the names for subunits (fractions) of a bitcoin only have to satisfy two (apparently small and local but actually big and universal) conditions:
  • The same name must always be defined as ("map to") the same amount;
  • It's perfectly ok to define multiple names which "map to" the same amount, because this does not cause any confusion.
Then voilà, we have (the beginning of) the specification of the VNS (Vanity Name System) - or "BDNS" ("Bitcoin Denomination Name System") - for subunits of a bitcoin.
Note (12) : Satoshi Nakamoto has suggested the first two names in this system - the biggest and smallest units (1 bitcoin, and 1 satoshi).
If we want to use the newly proposed "cointags", starting with the "cointag-forming prefix" $, then these could be written as:
$bitcoin1 or $bitcoin 1 and $satoshi1 or $satoshi 1 
Note (13) : How can this help Bitcoin adoption?
It seems that "vanity subunit names" for fractions of a Bitcoin (eg: "1 tulip", "1 donut" - which are already starting to be defined by users of by ChangeTip) can be a big help to promoting adoption of Bitcoin.
It would probably only be a matter of time before some celebrity like Snoop Dog defines a cointag like "$snoop" as a certain number of satoshis (or Miley Cyrus defines the cointag $WreckingBall, or some vlogger defines the cointag $HarlemShake, or some activists define cointags like $ClimateChange or $GunControl or $Ferguson, etc.) allowing people to send various amounts of satoshis to friends (and strangers) - or to artists or activists or movements or organizations - on places like Twitter, YouTube, Facebook, etc.
For bigger crowdfunding projects, it might make sense to define a "cointag" representing a relatively large number of satoshis - and for smaller crowdfunding projects, a "cointag" representing a relatively small number of satoshis would be best.
The "social networking" consequences of implenting "cointags" could be amazing - and could prove to be a major driver for Bitcoin adoption.
submitted by translator-throwaway to Bitcoin [link] [comments]

does math hold back bitcoins some? What about bitcoin backed bucks, think that could work?

Face it Americans aren't good at math and when buying things with bitcoins you have to do a lot of fractional and decimal based math.
If something is selling for 1.58 bitcoins, people are going to have to do math to think about it's value. I know every foriegn currency suffers from exchange rate problems but they also tend to have smaller currencies. As in people know a peso is close enough to a dime and they can go back to not thinking again.
we dont really have bitcents, we have one denomination and it is worth about $15 right now. every other currency has more than one denomination, It helps people not have to think.
what do yall think about developing smaller bit denominations that people can more relate to that way people wouldnt have to deal with .067bitcoins as a dollar.
and on that note what if one of the large bitcoin holders developed a stable bitcoin backed buck and treated bitcoin more like the gold it is. He could peg the exchange rate and takes the gains and losses as bitcoins rose and dropped in value, but the community would gain something seen as stable and not beholden to the whims of mass speculation.
just a ramble but I do think bitcoins suffer a slight math issue with the non math people you see it in almost all sales. no one offers anything for 0.067 bitcoins or any kind of fraction like that. At most you might see .6 or a .45 but thats about a complex as you get, when our traditional us dollar market places are far more complex than that.
and damn auctions for some people, could get complex when the price is 09.45873 and you want to up that by a dollar or 0.067bitcoins.. quick without a calc, how much is $4 dollars.. yeah you got it, but it was slower than saying $4.. you got a $34 meal and want to leave a $5 tip, thats a little less than 3.... calc
and if bitcoins go higher it will just complicate things further for the non mathematically inclined.
submitted by powercow to Bitcoin [link] [comments]

A case for the microbitcoin (uBTC) satobitcoin (sBTC).

Everyday, there are dozens of post being made about how we need to stop referring to whole Bitcoins and begin using the millibitcoin (mBTC) or microbitcoin (uBTC) as the new standard denomination. Within all of these discussions, you generally have a handful of people advising that we skip past all of them and go straight into using the Satoshi as the new standard unit.
Right now, we are on the verge of the millibitcoin reaching parity with the US Dollar. While this will be unquestionably convenient for BTC accepting merchants, the fact remains that at this point, barely any of these merchants are pegging their prices to the Bitcoin, but are instead using USD, EUR, etc and letting the payment processor do the conversion based on the current exchange rate. Therefore, by this logic, it makes little difference what the merchants decide, since they are most likely using Bitcoin has a cheap form of payment processing.
The question we should all be asking ourselves is how high do we expect the Bitcoin market cap to climb, before we reach a point of stability, and how long do we anticipate it will take for us to get there. The honest truth is, that none of us can definitively answer this. However, let's assume that Bitcoin has enough growing room to achieve a $100B market cap by sometime in the year 2015. At this point, one Bitcoin will be valued at approximately $6,666.67 USD, which would mean that the millibitcoin will have reached $6.67, whereas the microbit will have yet to reach parity with the US cent. Now, if you are looking at this from an American mindset, you are probably thinking, "Gee! mBTC's are awesome! The market will have to increase another ten fold before we will even need to start considering using anything else." The honest truth is that you are probably right. However, we Americans usually have a hard time accounting the fact that we only make up about 5% of the World's population. Let's see how the uBTC stacks up to a few currencies that are within markets that have potential to deliver serious growth to the Bitcoin economy.
At a $100B USD Marketcap (current exchange rates) 1 uBTC would be the equivalent to
.09 Mexican Pesos
.02 Brazilian Reals
.42 Indian Rupees
.02 Israeli New Shequel
.58 Kenyan Shillings
As you can see, compared to other global currencies, the uBTC does not seem nearly as small as it does for us in the US. Now, let's take this to an extreme hypothetical. Let's assume that one day Bitcoin reaches a total market cap of $1 Trillion USD. At this point, the uBTC will be knocking on nearly a .07 USD valuation, and will have surpassed parity of some of the currencies listed above.
So what is the right answer? Truth is, there isn't one. The preferred choice of BTC denominations should be a regional decision, and not a global one. I do know that while a $1 Trillion market cap is within the realm of possibility, I do not see it happening by 2015, then again, I could be incredibly wrong. What does need to happen I believe is that developers need to design their products and services, such as wallets and exchanges to be as modular as possible for each individual user, and possibly set the defaults based on wherever the service or application is being used.
Furthermore, you'll notice that I referred to the Satoshi as a satobitcoin (sBTC). Why? Well, let's be real. Does anyone honestly think that a "satoshi" is going to be widely accepted around the globe if Bitcoin grows to the level that we are all hoping that it does. My money is on no. It's a nice gesture, but I just cannot see it being widely adopted in the long run. Nanobitcoins have a nice ring to them, but that would require Bitcoins to be broken down to the ninth decimal place, rather than the eighth that Satoshi originally intended. I personally think that the "satobit" has a much better sounding ring to it, is much less jarring and still pays tribute to Bitcoin's originator.
Bitcoin, centibitcoin, millibitcoin, microbitcoin, satobitcoin
submitted by brcreeker to Bitcoin [link] [comments]

Currency / Precious Metals Exchange. Bid and Ask Prices Requested.

Let's kick things off by making stellar useful. I have the following items available to exchange to begin building trust relationships. If enough people are interested in trading and everyone completes their transactions correctly, I'll build a website with live price quotes. I request a 3% spread plus transmission costs: I buy at 1.5% below the media quoted price and sell at 1.5% above the quoted price. Postage is $1.00 to Canada up to 30 grams (1/10 oz gold Maple Leaf coin), $1.40 to US, over 30 grams (silver Maple Leaf ounce coin) $2.00 to Canada and $2.50 to US with a bubble mailer. Gold and silver price quotes are based off of the ask prices from http://www.bullioncoinsandbars.com/products-gold-coins.htm and http://www.bullioncoinsandbars.com/products-silver-coins.htm which is where I get them from. Items available to trade:
Canadian dollars
US dollars (hundred dollar bills with holo stripe only)
Mexican pesos (various denominations)
One ounce silver Maple Leaf coins
1/10 ounce gold Maple Leaf coins
Bitcoins
5,450 Stellar
Future planned items if anyone is interested: standardized 1934 and earlier mint condition postage stamps and precious gemstones that could be mailed easily.
Reply with your proposed trade(s) and your bid or ask price(s).
submitted by babkjl to thestellar [link] [comments]

Fuck it....let's just use Satoshi....hear me out.

I think Bitcoin should be denominated in its smallest unit, the satoshi. Here's why:
*1. Many people think they are too late to the party and Bitcoin is too expensive. Using satoshi, people can buy 1,000,000 for less than 10 bucks. Millionaires! For less than 10 bucks! I think this will be more appealing to people just getting started but can't afford a whole Bitcoin. It allows the price of BTC to reach the stratosphere without intimidating newcomers who just want to buy and use the currency.
*2. Prices are prettier. People don't mind high numbers in currency (look at Yen, Yuan, or Pesos) but nobody wants to look at a decimal place with a bunch of zeros after it. It is not something we can easily get used to IMO.
Which looks better?: .00002341 BTC, or BTC-S (new symbol?) 2,341 or 2,341 satoshi
*3. The deflationary nature of Bitcoin becomes more evident if prices are displayed in satoshi. Last week my coffee cost 350,000 satoshi...this week it's only 100,000! Bitcoin is making everything cheaper by the day...therefore I feel I have more money. (or the inverse, of course, but we won't discuss that :P)
*4. Millibits, Microbits, etc. aren't attractive names. Satoshi is beautiful to my ears!
edit:formatting
submitted by shenanigoat to Bitcoin [link] [comments]

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Bitcoin Denominations: The code used for bitcoin is XBT^[a] and the symbol used for bitcoin is BTC. Satoshi refers to a subunit of 10^-8. Microbitcoin refers to a subunit of 10^-6 and its corresponding symbol is μBTC. Millibitcoin refers to a subunit of 10^-3 and its corresponding symbol is mBTC. Hope this basic introduction will be useful for the beginners to understand basics of the ... Satoshi: The smallest unit of the bitcoin cryptocurrency. Satoshi is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency. Our currency converter calculator will convert your money based on current values from around the world. The bitcoin blockchain is a public ledger that records bitcoin transactions. [90] It is implemented as a chain of blocks, each block containing a hash of the previous block up to the genesis block [lower-alpha 4] of the chain. A network of communicating nodes running bitcoin software maintains the blockchain. [36]: 215–219 Transactions of the form payer X sends Y bitcoins to payee Z are ... Bitcoin (₿) is a cryptocurrency, a form of electronic cash.It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

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