UPDATE: McAfee was hacked. See this video. It appears the hacker purchased the cryptos s/he tweeted while hacked into McAfee's account and made millions. The account has since been recovered. Still, be careful. If activity looks suspicious it probably is. McAfee said he was only going to make one recommendation a week. Why would he then do 5, back-to-back, in the middle of the week? Also be sure to watch this video and secure your crypto in your cold storage not on an exchange. ****
I must admit to being caught up in the cryptocurrency craze. I started trading cryptos about 6 months ago. In that short amount of time I've found a few trusted resources. John McAfee is among the most influential in the investment space; he is the Jim Cramer of the Bitcoin world. His tweets have become crypto buy signals.
John McAfee, the founder of McAfee security software, is a big believer in Bitcoin. In fact, he's committed to eating his own "manhood" if the cryptocurrency fails to reach $1 million by 2020. Personally, I think Bitcoin has the potential to go to $4 million (as I explain here) so this shouldn't be an issue.
The McAfee Strategy
Before going any further I want to say that this strategy only pertains to 25% of my crypto-portfolio, which is small. I made some quick money, withdrew the principal, and the rest is what I trade with.
My crypto portfolio (which is only a small portion of the overall) is composed of the following:
50% in Bitcoin - HODL
25% invested in other platform cryptos: Ethereum, Litecoin, Bitcoin Cash - HODL
25% in other cryptos and ICOs - TRADE
This post is regarding a strategy I've found to be useful with the third category. The third category is the only category I actively trade.
This strategy is based on social media more than anything else. I noticed that John McAfee has quite a following in the crypto-world. Unlike some of the other well known crypto all-stars, McAfee has no problem endorsing a new coin. And, when he talks, people listen. So far, he has 487K followers and the entire cryptocurrency world hangs on his next tweet.
Before getting into other coins, I want to take a moment to highlight what McAfee thinks about Bitcoin compared to other cryptos. Here's a tweet he sent out yesterday:
This was largely in response to the dip.
So that's how McAfee feels about Bitcoin, but he's still a big fan of the entire asset class. His recommendations have the power to move a coin up over 100% in 24 hours.
For example, on December 24 at 5:56 am, McAfee made the following tweet for Reddcoin (RDD):
At that time, Reddcoin was trading at $.010163.
24 hrs later, at 5:39am, the price spiked to $.022079. That's over 100% in 24 hrs. Clearly, traders had take profit orders on at 100%.
There are many more examples. Take a moment to toggle back and fourth between McAfee's Twitter Feed and CoinMarketCap.com. Look up a few coins and see how they performed within the next 24hrs of McAfee's Tweet. You will find similar opportunities.
What can you do to take advantage of this information? Every Monday McAfee is going to announce a new coin "coin of the day" via Twitter. He used to do this every day, but now he's going to drop to once per week per the tweet below:
That said, it doesn't hurt to monitor his account other days as well, but Monday will be the big day. As soon as he makes the announcement, buy and take profit at 100%. The price has been known to go up more than 100%, but this way you lock in profits.
If you're confused about how to find the best market to trade in, stay tuned for my next article. Hint: it depends on the coin.
“The future is already here. It’s just not very evenly distributed.” - William Gibson
I often hear about all the alleged
"criminal behavior" bitcoin supports. I think it's important to discuss bitcoin's potential to reduce criminal behavior as well.
In 2009, 53 police officers in Afghanistan were paid by a new mobile service
called M-Paisa. This was a pilot program to see if public sector jobs
could be paid with M-Paisa. When the officers received payment they
also noticed a 30% pay raise. Perhaps this was compensation for
participating in the pilot? No. This was the amount the officers should
have been getting all along, but superior officers had been skimming
off of salaries. M-Paisa payments made the police officers very happy,
but the mayors, not so much. This is a micro example
of what digital payment services can do to eliminate the middle-man and
reduce corruption. Digital currencies have the same impact at the
macro level. Here's a quote from an article in Forbes describing the
impact of M-Pesa on Kenya's economy:
In Kenya,
M-Pesa has been so successful that traditional banks have come to see
it as a serious competitor. At first, these banks sought to limit
M-Pesa by seeking regulations from the Kenyan government, but
increasingly they have begun to offer mobile banking services that
attempt to disrupt M-Pesa’s monopoly of the mobile money market.
In other words, M-Pesa has gained so much traction that the government
is worried because they are losing both power and money, but the end
result is a more balanced economy.
To further support the
theory, one study recently found that "increased access to mobile money
has increased long-term consumption in Kenya and reduced the number of
households in extreme poverty." The study estimates that it lifted 2%
of Kenyan households out of poverty, with the impact being more
pronounced in female-headed households. Women using M-Pesa tended to
move out of agriculture and into business (Science, p. 1288). Mobile Money, the study concludes:
...a service that allows monetary value to be stored on a mobile phone
and sent to other Mobile money has therefore increased the efficiency
of the allocation of consumption over time while allowing a more
efficient allocation of labor, resulting in a meaningful reduction of
poverty in Kenya.
Like toll-booths,
intermediaries (banks, government, corporations) are there to collect
some sort of tax or fee from us, but what happens when we can go from A
to B without intermediaries?
Paradigm Shift: M-Pesa, M-Paisa, MCash, bKash and EasyPaisa
Today almost every household in Kenya uses M-Pesa. It allows anyone
with a mobile phone to transfer money. It also has a financing and
micro-financing service. Started in 2007 by the largest mobile network
operators in Kenya and Tanzania, the operation later expanded to
Afghanistan, South Africa, India, Romania and Albania.
The
growth of the M-Pesa market mirrors bitcoin. The mobile phone market
overall has over 900 million subscribers in Africa and over 3.7 billion
in Asia. M-Pesa isn't the only mobile payment service. There's also
M-Paisa in Afghanistan, Smart in the Philippines, MCash and bKash in
Bangladesh, and EasyPaisa in Pakistan (2009). According to the Global Mobile Systems Association (GMSA) there are now 277 live services across 92 markets (two-thirds of which are low- and middle-income countries). The report goes on to say that:
Registered accounts grew nearly six-fold in the last five years to
more than half a billion in 2016, helped by a growing network of mobile
money agents. In 2016, there were more than 4.3 million registered
agent outlets, of which 2.3 million were active on a monthly basis;
thirty countries now have ten times more active agents than bank
branches, bringing mobile money within reach of millions of unbanked
households.
So what can these experiments tell us
about what we can expect will happen in the United States with more
widespread use of bitcoin?
Poverty & Digital Currency
Bitcoin is much more than just a digital currency (for more on what bitcoin is, please click here).
Likewise, M-Pesa is more than a cell phone service. The two have much
in common, most importantly they cut out the middle-man which is
impacting global economics at the micro- and macro-level.
Scientists are attributing M-Pesa with lifting people out of poverty,
which is something the U.N. is shining a spotlight on. In fact, the U.N.
Special Rapporteur on extreme poverty and human rights has written a
report about extreme poverty in America.
It's hard to imagine
that anyone in the United States, the richest country in the world,
could be living in extreme poverty, but in Alabama 19 of 55 individuals
tested positive for hookworm, a disease which was thought to have been
eradicated in the U.S. by the 1980s.
Hookworm tends to thrive in regions of extreme poverty with poor
sanitation and it is thriving in certain parts of America as well.
The only way for the richest country in the world to be home to
conditions of extreme poverty is for rampant corruption to exist. The
best place to put our collective energy (literally) is not in the hands
of a new set of men and women to be corrupted by the 1% every four
years, but in bitcoin and other related digital currencies in use
around the world (for an example of what blockchain and bitcoin can do,
take a look at what Estonia is doing here).
Final Thoughts: Transfer of Wealth
We are witnessing the largest transfer of wealth in modern history. The
police officer example above is only a glimpse at the potential we
stand to recoup. The current system is a zero-sum game, so what the
uber-wealthy lose will not be lost, but transferred to
its rightful owners through bitcoin and other digital currencies. All
the money that used to go to bribes, government corruption and banks is
now working its way back into the hands of "the people" which is
reducing poverty worldwide.
Kenya's government couldn't shut
M-Pesa down. Likewise, if the US government could forbid the use of
bitcoin, it would have done so already. Bitcoin is more than voting
with your dollars, it's investing in a new world order that brings all
these payment systems together. You can even buy bitcoin with M-Pesa
using LocalBitcoins, a peer-to-peer bitcoin exchange network.
Bitcoin has no nationality. It has no history of debt or corruption. It
has no spoken language. It has no borders. It has no tribe. It is
incapable of war. It is intangible in nature. And, best of all, it
requires no assistance from corruptible minds. It is in the process of
accumulating wealth from national currencies (G5). This is why the price
of bitcoin will continue to rise with the fall of the dollar, pound,
yen and euro.
Bitcoin is a type of digital currency. It is also a payment system and fast approaching unit of account status. Bitcoin was created in 2009 by someone named Satoshi Nakamoto. To this date, no one knows who Satoshi
is. There are many theories (Elon Musk, a supercomputer in China,
etc.), but no one has officially stepped forward to claim the honor.As part of the creation, s/he also created the first blockchain database. Here's a link to the white paper (Bitcoin: A Peer-to-Peer Electronic Cash System) which explains how bitcoin works.
What problem did Satoshi solve in the white paper? S/He made it possible for a technology to be the intermediary by coming up with a logic to obtain consensus by all parties. In this way, no "trust" broker like a bank or lawyer is needed.
The
number of Bitcoin available in the market is limited to approximately 21 million. There are approximately 16.7 million bitcoin on the market today (you can see
how many bitcoin are currently on the market by clicking here). As of 11/26/2017, bitcoin is worth a little over $9,000. You can check on the latest bitcoin price here.
Due to its popularity, you can use Bitcoin at numerous stores. Some of these stores include: WordPress.com, Overstock.com, Subway, Microsoft, Reddit,Virgin Galactic, OkCupid, Namecheap, CheapAir.com, Expedia.com, Gyft, Newegg.com, and Whole Foods.
In
addition to being able to send an unlimited amount of money to anyone with a cell phone, Bitcoin transactions are also
anonymous. As President Obama stated, if the govt. can’t crack encryption,
then people are walking around "with a Swiss bank account in their
pocket."
The implications of this last point are
very compelling. Bitcoin
can't be manipulated, controlled or shut down because it's completely
decentralized. If government could shut it down they would have done so
already.
I recommend two main ways to buy bitcoin: Coinbase and LocalBitcoin.
Coinbase offers the cheapest methods, but you don't have as many payment methods to choose from as you do with LocalBitcoins. Coinbase is a business, so you're buying coins from a business. It is also centralized. LocalBitcoins, on the other hand, is peer-to-peer, like Craigslist and decentralized.
In a previous post I reviewed how to buy bitcoin using LocalBitcoins. This post will concentrate on buying bitcoin using Coinbase.
Coinbase supports bank transfers, credit cards, debit cards and bank wires. If you want to buy Bitcoin with anything else you should go with LocalBitcoins.
Each method of deposit on Coinbase is relatively easy and straightforward.
If you want to deposit through your bank account, first you need to select the bank:
Then you will be prompted with a login screen to verify your bank account.
You will need to provide:
1) Your online banking username
2) your password
This is a one-time verification step. Once your bank account
has been verified, Coinbase claims the logs are deleted. If you're uncomfortable sharing this information you can use the deposit verification process that generally takes about 2-3 days.
If you use a credit or debit card you can add these as payment methods to your account by visiting the payment methods page.You can also add funds in a similar way with a wire transfer.
While you can't use Paypal to buy or deposit funds, you can use it to sell Bitcoin or withdraw funds. Go to https://www.coinbase.com/trade, select 'Sell', then select 'PayPal account' as the Payout Method.
My two favorite ways to buy bitcoin are through Coinbase and LocalBitcoins. They both have advantages and disadvantages.
In general, Coinbase offers the cheapest methods, but you don't have as many payment options to choose from as you do with LocalBitcoins. Coinbase
is a business, so you're buying coins from a business in a centralized location. LocalBitcoins is peer-to-peer (like Craigslist) and decentralized.
This post will concentrate on buying bitcoin using LocalBitcoins. In the next post I'll review the process of buying Bitcoin with Coinbase.
Buying Bitcoin With LocalBitcoins
LocalBitcoins is a decentralized, peer-to-peer service to buy bitcoin. It's really a listing
service like Craigslist. This service allows you to find a seller of bitcoin without having to go through an institution, which explains why I like it.
How much you pay depends on who you buy from, but LocalBitcoins doesn't charge you any fees for buying bitcoin. The seller pays a 1% fee to LocalBitcoins. Also keep in mind that only the sender (not the buyer) pays mining fees, which are currently .0008 bitcoin. These fees may rise, but I think technology is being put in place to reduce the current scaling problems bitcoin is experiencing.
These are a few other things to keep in mind before making your first purchase on LocalBitcoins:
Each seller has a different ranking and sells at a different price so find a vendor with a good reputation at the right price. Look for VERIFIED Seller with this seal.
READ the TERMS of the offer BEFORE you start the
order, always! For example, if you use a gift card, you may need to provide a receipt to verify that the gift card was purchased with cash. Make sure you read what you are agreeing to.
Check the PRICE. The price depends on the payment method. For a better price try cash or
bank deposits. For the best price, go with Coinbase.
Read the instructions.
Click I have read the instructions and Paidbutton ONLY when you have actually paid.
NEVER ask the vendor to release the bitcoins first.
This is grounds for an instant ban.
If you aren't interested, cancel the order - if you are no longer
interested and have not yet paid the vendor. It will free up their
escrow and let them continue to trade with others.
The process:
1) First you want to decide how you plan on paying. You have over 300+ options as listed below.
2) Look for a deal with a verified seller at the price you want.
3) Once you find a good deal with a verified seller you will be in a live chat with them. They will tell you how to pay.
3) Once you pay, they release the bitcoins (the bitcoins are held in escrow until the transaction goes through).
4) The bitcoins are held in your LocalBitcoins wallet and can be spent anywhere that bitcoin is accepted.
Ready to get started? Click here to buy bitcoin with over 300+ different payment methods as listed below:
CO-OP Shared
Capitol One
53rd Bank Cash Deposit
AC Moore Gift Card
AMC Theaters Gift Card
ANY Credit/Debit Card
ANY Gift Card Code
ANY VISA MasterCard AmEx Gift Card
AT&T Gift Card
Abra
AccountNow Card2Card Transfer
Adidas Gift Card
AdvCash
Akimbo
Alipay
Allied Bank
Amazon Gift Card
Amazon Wishlist
American Express
American Express Gift Card
Apple Gift Card
ApplePay
Applesbee's Restaurant Gift Card
AstroPay Direct
BB&T Cash Deposit
BBVA Compass Cash Deposit
BMO Cash Deposit
BMO Harris Cash Deposit
BNZ Same Bank Transfer
BOA❁TD❁WF INSTANT RELEASE!! Cash Deposit
BOA❁TD❁WF❁PNC❁BBT Cash Deposit
BPI & Cebuana Lhuiller
BPI Bank Philippines
Babies R Us Gift Card
Banana Republic Gift Card
Bancolombia Cash Deposit
Bank Mandiri
Bank Transfer from/to any Thai Bank
Bank Wire (Fedwire)
Bank deposit electronicTransfer
Bank of America Cash Deposit
Bank of America Online Transfer
Bank of the West Cash Deposit
Bank transfer from ANY Bank
Bank transfer to ANY US bank
Bank transfer: ANZ & Westpac online transfer ONLY IN AUSTRALIA
Bank transfer: ANZ, ASB, BNZ, KIWI, WESTPAC, INSTANT RELEASE!
Bankwest Cash Deposit
Barclays Pingit
Barnes & Noble Gift Card
Bath and Body Works Gift Card
Bed Bath & Beyond Gift Card
Belk Gift Card
Best Buy Gift Card
Betcoin.ag Player to Player transfer
Bill payment
Bitcoin ATM
Bitcoin Cash (altcoin)
Bitgold
Bkash Banking (Bangladesh)
Bluebird American Express
Boost Mobile
Boston Market Gift Card
Brazilian National Bank Transfer
Brookstone Gift Card
Burger King Gift Card
CASH DEPOSIT: BB&T AND CREDIT UNIONS
CBA or Westpac, INSTANT RELEASE!
CBA to CBA Netbank Transfer
CBA/WestPac/NAB/ANZ - same bank transfer
CIBC Cash Deposit
CO-OP Credit Unions Cash Deposit
CVS Gift Card
CVS Pharmacy Gift Card
Calvin Klein Gift Card
Capital One 360 P2P Payment - Online Bank Transfer
Capital One Cash Deposit
Cardless Cash
Cash By Mail
Cash Deposit Capitol One
Cash Deposit Navy Federal Credit Union
Cash Deposit: ANZ
Cash Deposit: ANZ
Cash Deposit: All Aus Banks
Cash Deposit: BB&T , Wells Fargo, Bank of America
Cash Deposit: BB&T, CITI Bank ,TD Bank
Cash Deposit: CBA Westpac INSTANT RELEASE!
Cash Deposit: CSOB ATMs
Cash Deposit: CSOB Branches & ATMs
Cash Deposit: Commonwealth Bank
Cash Deposit: Fifth Third Bank
Cash Deposit: Key/Us Bank
Cash Deposit: Royal Bank of Canada
Cash Deposit: US Bank
Cash Deposits Bank of America, Capitol One
Cash Deposits Bank of America, Capitol Onee, CO/OP Shared
This women (update: her picture and the video this post refers to has been taken down) is slightly insane, which means that I like her. That said, she also thinks technology (primarily in the form of cell phones) has turned us all into children. I understand -- the image of a teenager and an iPhone does not connote human progress, but this is the illusion.
"I'm used to privacy and cash", she proclaims proudly. "Using bitcoin is
akin to being microchipped." This is ironic because privacy, autonomy,
decentralization and low transaction fees are the main reasons why
people like bitcoin.
At the heart of all her fears is an argument against "de-materialization" -- this is an agenda by the government to move everyone away from using money. The easier it is for you to spend your labor, the less you think about it. This is a valid concern, but the argument is specious. If bitcoin exits the room, the issue of "de-materialization" does not follow. Credit cards, debit cards and electronic wallets like Paypal are still present.
About mid-way into her interview it becomes clear that she doesn't really know what bitcoin is. Her argument is old, stale. It sounds ignorant. What a brutal word, but it fits here -- I promise. Why Am I Highlighting This Video?
I wanted to highlight this to show how someone with logic and sense can have no clue about bitcoin. Even the die-hard libertarian with disdain for the federal reserve still sees bitcoin as the devil. Final Thoughts: Bitcoin Has Arrived
It's always good to understand how others perceive an asset. In this case, I see the misperceptions as opportunity.
If this woman knew the truth about bitcoin, she would be investing everything in it. She would see that the market, the free-market she so ardently believes in, has created a tool that the government cannot manipulate.
Bitcoin is an automation tool that gives back privacy. A tool that provides an alternative to the dollar and gold. A tool that connects all of us together, with no intermediary, no clearinghouse. We now have the ability to send an unlimited amount of money instantaneously across the globe for free.
There's no going back.
Bitcoin is the Internet of money.
Why haven't the world's central banks gone after bitcoin? They can't. They've tried, but a sovereign nation can't dictate to bitcoin --
bitcoin is a post-nation state asset and comes with its own monetary system. That said, central banks can try to work with
bitcoin.
"Central banks could simply step in and offer their own digital currency,
to pre-empt a Bitcoin takeover," said a writer at the Financial Times. She goes on to say:
There is such a thing already, of
course. It’s what happens whenever central banks buy assets by creating
bank reserves. It’s all just digital entries on a spreadsheet. Creating
central bank “digital currency” simply means offering existing digital
account services to a wider group of entities.
There is one big difference, reserves retain value based on the value of paper and monetary/fiscal policy; bitcoin retains value based on energy prices and demand. The more bitcoin are made, the harder they are to make and mining operations are popping up everywhere.
So, if central banks can't beat bitcoin, can it work with it? This is the Fed's only real option. Here's a quote from a recent speech by Fed Chairman Governor Jerome H. Powell in which he lays out three objectives of the Federal Reserve regarding bitcoin:
Today, I will lay out those objectives as we see them at the Federal
Reserve, and focus in particular on their application in three specific
areas where technological innovation is driving change: creating a
real-time retail payments system, using distributed ledger technology to
develop new clearing and settlement services, and the issuance of
digital currencies by central banks.
Note that distributed ledger technology (DLT) refers to cyrptocurrencies like bitcoin. Powell goes on to describe bitcoin in the following way:
Using blockchain technology--which employs a form of DLT--and
an open architecture, Bitcoin allows for the transfer of value
(bitcoins) between participants connected to its ecosystem without
reliance on banks or other trusted intermediaries. This feature has led
some to predict that DLT will in the long run render parts of the
banking and payments system obsolete, as the intermediation of funds
through the banking system will become unnecessary.
Two points: 1) the fed is aware of the potential threat, but 2) only to the extent that it may provide an alternative payment system. In truth, bitcoin is more than a system of payments, it is a system of value storage. Until we reach 21 million bitcoin, it is also a source of value creation. In this way, it will render more than parts of the banking system obsolete. We may see a complete collapse.
Bitcoin & The Law
The Fed also seems to understand that the most challenging aspect of bitcoin is that it can't be controlled or tracked. Users have complete anonymity for all transactions. Indeed, similar blockchain technologies are being used to develop digital content platforms that offer the same kind of anonymity as bitcoin. How do you develop laws around something that was developed to be anonymous? Chairman Powell contemplates this question below:
Which bodies of law apply to the
particular firms, assets, and activities will determine the associated
rights and responsibilities when transfers are made, cleared, and
settled. For example, whether and how banking, payments, securities, or
commodities laws apply in a given context are likely to be important in
designing systems and services and understanding their properties.
We will need a thorough
analysis of how DLT fits into current legal frameworks and what gaps
need to be filled by contractual agreements or new laws and regulations.
A robust legal basis that provides certainty across relevant
jurisdictions is essential for building strong governance, risk
management, and operations.
Good luck with that.
He goes on to say that,
A digital currency would also be a prime target as a potential
vehicle for global criminal activities, including money laundering.
Central banks could face difficult trade-offs between strengthening
security and enabling illegal activity. Advanced cryptography could
reduce vulnerability to cyber attacks but make it easier to hide illegal
activity. To the extent we relax strong cryptography to make it easier
for authorities to monitor illegal activity, we could simultaneously
weaken security.
Still, this is the Fed's security. This is the Fed's privacy. The Fed's needs aren't always aligned with the needs of the people. Perhaps the reason bitcoin is so popular is because it is naturally aligned with the people.
Final Thoughts On The Digital Currency Revolution
This is the world's first real artificial intelligence challenge.
Bitcoin can take over the nation state without battle or loss of life.
It offers itself to humanity as a system of payments and storage with no
central authority. It has only two demands (for now) -- more computer
hardware and energy. Bitcoin allows users to access the gods of money
without going through the dollar's Vatican, also known as the Federal
Reserve.
Over the next 10 years we will bear witness to a remarkable digital revolution; it will be a war between the nation-state and technology. They are fighting for control over humanity. It's hard to say what the Fed's next move against bitcoin will be, but one thing is certain, if the Fed could do anything about the rise of bitcoin, it would have done so already.
Funny how this album almost looks like a coin. The name of the album is "The Revolution Will Not Be Televised", which is a poem and song by Gil Scott-Heron.
In some ways, this is exactly what's going on in Venezuela. Bitcoin is enabling countries like Venezuela, which is in the midst of currency collapse, to sidestep the devastating effects of inflation with an alternative. Adding fuel to the fire, that alternative can be created with the right hardware and energy.
The creation of bitcoin with computer hardware and energy is referred to as mining. Countries with the lowest
prices in energy production are the most profitable in making bitcoin.
This is why China dominated in the bitcoin mining sector for so long (a
point Bobby Lee made recently at the 2020Money Conference in Las Vegas). Chinese
bitcoin miners were stealing energy. Now
that the government is cracking down on that, mining has become more
expensive.
Mining is gaining in popularity in Venezuela due to a combination of hyperinflation and subsidized energy prices. In other words, Venezuela is one of the most profitable places to mine bitcoin in the world. In some ways, what's going on in Venezuela is a digital currency revolution.
What does that mean -- a digital currency revolution?
In monetary terms, it means Venezuela is dying as a sovereign state. The new king is Bitcoin and its offspring. It appears the revolution may not be televised, but it will certainly be backed with digital currency.
At the heart of the issue is whether or not bitcoin is a system of storage or payments. It is a constant debate, but it deflects from the truth which is both. In addition, bitcoin provides transparency into the central bank and guards against government intervention or manipulation. For example, the global inter-bank payment system known as SWIFT threatened Russia, China and North Korea with removal. Is it any wonder that these nations are looking for alternatives?
Enter the Crypto-Ruble
From a practical perspective, the Crypto-Ruble is a national bitcoin. Russia wants to subsidize energy for those wanting to mine these "crypto-rubles" (even though energy is already much cheaper in Russia). The country plans on doing this through a kind of regulatory sand-box/incubator to see if it works before scaling. Unlike petro-dollars, "crypto-rubles" connect currency to ANY form of energy, even stolen energy. With this connection, Russia is trying to set up something akin to an energy payout for all residents -- much like the dividend that Alaska pays its people for oil.
Final Thoughts: Bitcoin Can't Be Domesticated
Ultimately, these national crypto-experiments are just that, experiments, but Bitcoin has arrived -- it is its own asset class/unit of account and there's nothing the central banks/nation states can do about it because it is decentralized by nature. Any country, including Russia, trying to create a national Bitcoin will fail. After all, bitcoins that can only be mined by Russians are not bitcoin.
Drew Faust, Harvard’s 28th president, will step down on June 30, 2018. Faust is
an acclaimed author and historian of the Civil War and the American
South, and the first woman to lead the University. I was at Harvard when
she became President amidst the backdrop of the turmoil created by her
predecessor Larry Summers. Her quiet and steadfast leadership style
settled an administration in turmoil and focused all resources on the
success of Harvard’s legacy — the students.
I recently came across this incredible video. In it, Thomas Linzey and Mari Margil make an argument for democracy over the corporate state with regard to local agricultural rights.
There are those that believe this to be frivolous debate, however,
I
believe we have entered a state of crisis. Consumers are starting to make the connection between political
action and purchase decisions. Investors are too. The corporate state does not know
what to do. All it knows is that candy is scarce and margins are
not what they used to be.
The Mentality of the Corporate State
The corporate state has the mentality of a powerful, fat, two year-old with a mind that could match any modern day legal genius. The legal genius loves candy and is near death, but is too young to listen to reason. Death would be a sad end for such an impressive creature and yet we must do something about its lack of morality if it is to survive. We must give it an education; teach it right from wrong. As investors and consumers, we need to figure out a way to push the corporate state into the next phase of development before it sacrifices our democracy for another piece of candy.
Thomas Lizeny and Mari Margil, along with the Community Environmental Legal Defense Fund (CELD) are attempting to use the law as a way to implement a development program on the corporate state at the local level. While I love what they are doing, I believe it will be ineffective from a legal perspective. No law is going to stop the two year old legal genius from getting to the candy.
It seems logical that the only way to stop a legal structure is with
the law, but the corporation is actually very strong legally --
emboldened, as Linzey and Margil state above, by the constitution that
appears to be working perfectly. In this vein, and in the vein of
Achilles heel finding, the law may not
be the best way to change the corporate state. Indeed, it is unlikely that the Achilles heel
of a legal structure is the language of the legal structure.
The bad news is that as much as Linzey and Margil try to affect change via the Community Environmental Legal Defense Fund (CELD), it is doubtful that they will ever be able to outmaneuver the law. The good news is that the consumer holds all rights to the only thing the corporate state craves, profitability.
What does this mean from a sustainability perspective? It means if the corporation is concerned about the investor, and the investor is concerned with profit, then the consumer is all powerful. If the consumer is only interested in companies that respect local nature rights, then that's what the corporate state must produce. It is up to the consumer to provide the incentive structure for the corporation.
Best Strategy Moving Forward
The main issue for those of us trying to put some reigns on the corporate state (for its own good I might add) is coming up with the best strategy. We need to create a new incentive structure for the corporate state, one that is incentivized by the health and well being of a democracy. I believe the best strategy is not legal, but consumer driven. In particular, it is based in knowledge and community education.
Ironically, the CELD may be able to affect more change through its ability to educate than in its ability to beat the corporate state with the law. It will be, as Margil alludes to in the retelling of an Ethiopian saying, the corporation that does not see how the water it swims in is changing -- waters that are not swayed by law, but consumer demand. The more the CELD spreads the word, the more educated and knowledgeable the consumer will be and the more the waters will change. Each battle lost by the CELD will lead to the winning of the war.
Next Post: Can the Corporate Citizen Be Charged Like An Ordinary Citizen
What's hard to understand is that corporations, while legally considered a person, are not. The corporation is driven by profit and profit alone. In my next post I will explore a few ways to change the incentive structure including the comparison of corporate and citizen rights. If corporations are people, they should receive all the advantages and disadvantages of citizenship.
Perhaps the best way to get the corporation to argue against citizenship is to start treating it like one.