Dogecoin: DBeS2gHm79fHsxkYWTatbCYonxxc8fQn4M
Bitcoin: bc1qga4p8wxjvc8vx2l9p5y35ac7t0q0jqf8lmsf9y

Tuesday, November 28, 2017

What is Bitcoin?

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:,, Subway, Microsoft, Reddit,Virgin Galactic, OkCupid, Namecheap,,, Gyft,, 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.

How To Buy Bitcoin Using CoinBase (Coinbase Vs. LocalBitcoins)

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, select 'Sell', then select 'PayPal account' as the Payout Method.

How To Buy Bitcoin With Over 300+ Different Payment Methods (Coinbase Vs. LocalBitcoins)

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:

  1. 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.
  2. 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.
  3. 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.
  4. Read the instructions.
  5. Click I have read the instructions and Paid button ONLY when you have actually paid.
  6. NEVER ask the vendor to release the bitcoins first. This is grounds for an instant ban.
  7. 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:

  1. CO-OP Shared
  2. Capitol One
  3. 53rd Bank Cash Deposit
  4. AC Moore Gift Card
  5. AMC Theaters Gift Card
  6. ANY Credit/Debit Card
  7. ANY Gift Card Code
  8. ANY VISA MasterCard AmEx Gift Card
  9. AT&T Gift Card
  10. Abra
  11. AccountNow Card2Card Transfer
  12. Adidas Gift Card
  13. AdvCash
  14. Akimbo
  15. Alipay
  16. Allied Bank
  17. Amazon Gift Card
  18. Amazon Wishlist
  19. American Express
  20. American Express Gift Card
  21. Apple Gift Card
  22. ApplePay
  23. Applesbee's Restaurant Gift Card
  24. AstroPay Direct
  25. BB&T Cash Deposit
  26. BBVA Compass Cash Deposit
  27. BMO Cash Deposit
  28. BMO Harris Cash Deposit
  29. BNZ Same Bank Transfer
  30. BOA❁TD❁WF INSTANT RELEASE!! Cash Deposit
  31. BOA❁TD❁WF❁PNC❁BBT Cash Deposit
  32. BPI & Cebuana Lhuiller
  33. BPI Bank Philippines
  34. Babies R Us Gift Card
  35. Banana Republic Gift Card
  36. Bancolombia Cash Deposit
  37. Bank Mandiri
  38. Bank Transfer from/to any Thai Bank
  39. Bank Wire (Fedwire)
  40. Bank deposit electronicTransfer
  41. Bank of America Cash Deposit
  42. Bank of America Online Transfer
  43. Bank of the West Cash Deposit
  44. Bank transfer from ANY Bank
  45. Bank transfer to ANY US bank
  46. Bank transfer: ANZ & Westpac online transfer ONLY IN AUSTRALIA
  48. Bankwest Cash Deposit
  49. Barclays Pingit
  50. Barnes & Noble Gift Card
  51. Bath and Body Works Gift Card
  52. Bed Bath & Beyond Gift Card
  53. Belk Gift Card
  54. Best Buy Gift Card
  55. Player to Player transfer
  56. Bill payment
  57. Bitcoin ATM
  58. Bitcoin Cash (altcoin)
  59. Bitgold
  60. Bkash Banking (Bangladesh)
  61. Bluebird American Express
  62. Boost Mobile
  63. Boston Market Gift Card
  64. Brazilian National Bank Transfer
  65. Brookstone Gift Card
  66. Burger King Gift Card
  68. CBA or Westpac, INSTANT RELEASE!
  69. CBA to CBA Netbank Transfer
  70. CBA/WestPac/NAB/ANZ - same bank transfer
  71. CIBC Cash Deposit
  72. CO-OP Credit Unions Cash Deposit
  73. CVS Gift Card
  74. CVS Pharmacy Gift Card
  75. Calvin Klein Gift Card
  76. Capital One 360 P2P Payment - Online Bank Transfer
  77. Capital One Cash Deposit
  78. Cardless Cash
  79. Cash By Mail
  80. Cash Deposit Capitol One
  81. Cash Deposit Navy Federal Credit Union
  82. Cash Deposit: ANZ
  83. Cash Deposit: ANZ
  84. Cash Deposit: All Aus Banks
  85. Cash Deposit: BB&T , Wells Fargo, Bank of America
  86. Cash Deposit: BB&T, CITI Bank ,TD Bank
  87. Cash Deposit: CBA Westpac INSTANT RELEASE!
  88. Cash Deposit: CSOB ATMs
  89. Cash Deposit: CSOB Branches & ATMs
  90. Cash Deposit: Commonwealth Bank
  91. Cash Deposit: Fifth Third Bank
  92. Cash Deposit: Key/Us Bank
  93. Cash Deposit: Royal Bank of Canada
  94. Cash Deposit: US Bank
  95. Cash Deposits Bank of America, Capitol One
  96. Cash Deposits Bank of America, Capitol Onee, CO/OP Shared
  97. Cash Depost: BPI
  98. Cash at CVS Pharmacy
  99. Cash deposit (Coinstar Kiosk)
  100. Cash deposit to Bank
  101. Cash deposit to CBA or Westpac, INSTANT RELEASE!
  102. Cash deposit to all major New Zealand banks
  104. Cash deposit: CBA/WestPac/NAB/ANZ
  105. Cash deposit: StGeorge/BankSA/Bank of Melb/NAV/Bankwest/Suncorp
  106. Cash in Mail
  107. Cash in Person
  108. CashU
  109. Cashier's check
  110. Cebuana Lhuiller Pawn Shops
  111. Chase Cash Deposit
  112. Chase Quickpay
  113. Check
  114. Cheesecake Factory Gift Card
  115. Chili's Restaurant Gift Card
  116. Chimp Change Mobile App Transfer
  117. Chipotle Gift Card
  118. Cirque Du Soleil Gift Card
  119. Citibank Cash Deposit
  120. Citibank Online Transfer
  121. Citizens Bank Cash Deposit
  122. Claim Jumper Gift Card
  123. Cold Stone Creamery Gift Card
  124. Coles Gift Card
  125. Comerica Bank Cash Depostit
  126. Commonwealth Bank - Cash Deposit @ Branch |or| 24/7 ATM
  127. Commonwealth Bank of Australia
  128. Commonwealth NetBank Transfer
  129. Community First Credit Union Cash Deposit
  130. Compass Cash DEposit
  131. Costco Cash Card
  132. Cracker Barrel Gift Card
  133. Dash
  134. Dean & DeLuca Gift Card
  135. Del Taco Gift Card
  136. Dell Gift Card
  137. Delta Airlines Gift Card
  138. Desjardins Bank Cash Deposit
  139. Dogecoin
  140. Domino's Pizza Gift Card
  141. Dunkin' Donuts Card
  142. E-check
  143. EB Games Gift Card
  144. EastWest Bank Cash Deposit
  145. Eco Cash
  146. Electronic Funds Transfer (Bank Deposit)
  147. Email wire transfer
  148. Equitel Mobile Money
  149. Ethereum (ETH)
  150. Ez Remit
  152. Facebook Messenger Payment
  153. Fandango Gift Card
  154. FasaPay
  155. Finish Line Gift Card
  156. First Republic Bank Cash Deposit
  157. First Tennessee Bank Cash Deposit
  158. Flashpay
  159. Flexepin Gift Card
  160. Flipkart e-Gift Voucher
  161. Foot Locker Gift Card
  162. Forever 21 Gift Card
  163. Frost Bank Deposit
  164. GObank Card Account Transfer
  165. GTBank (Guaranty Trust Bank) Nigeria
  166. Game Packs
  167. GameStop Gift Card
  168. Gift Card Nintendo eShop Digital Card Email delivery
  169. Gift Cards
  171. Google Play Gift Card
  172. Google Wallet
  173. Great Wolf Lodge e-Gift Certificate
  174. GreenDot Card2Card Transfer
  175. GreenDot Prepaid Debit Card
  176. Groupon Gift Card
  177. Guitar Center Gift Card
  178. code
  179. H&M Gift Card
  180. HSBC Cash Deposit
  181. HULU Gift Card
  182. Hilton HHonors Points
  183. Holiday
  184. Home Depot Gift Card
  185. Home Shopping Network e Gift Card
  186. Hooters Gift Card
  187. Gift Card
  188. Huntington Bank Cash Deposit
  189. Hyatt EGifts
  190. IHOP Gift Card
  191. IMPS Transfer
  192. ING Direct
  193. INTERAC Online
  194. Interac e-transfer
  195. International Remittance
  196. International Wire Transfer (SWIFT)
  197. Jcpenny Gift Card
  198. Jomashop Gift Card
  199. Kaiku Card-to-Card Transfer
  200. Key Bank Cash Deposit
  201. Kroger Recharge
  202. Kroger to Kroger prepaid
  203. La Banque Postale Cash Deposit
  204. Leupay
  205. LibertyX Pins
  206. LiqPay
  207. Litecoin (LTC)
  208. Lloyds Bank
  209. Local Bank Transfer
  210. Lowe's Gift Card
  211. M&T Cash Deposit
  212. M-Pesa
  213. MINT E-Gift Card
  214. MTN Mobile Money
  215. Macaroni Restaurant Gift Card
  216. Macy's Gift Card
  217. Mandat Cash Urgent
  218. Mango Card2Card
  219. Marriott Gift Card
  220. MasterCard Gift Card
  221. Maybank
  222. Maybank Cash Deposit
  223. McDonald's Gift Card
  224. Mexican Banks Cash Deposit
  225. Michael Kors Gift Card
  226. Microsoft Gift card
  227. Mobile Recharge
  228. MobilePay
  229. Monero
  230. Monese
  231. MoneyGram
  232. MoneyPak
  233. MoneyPolo
  234. MyVanilla Card2Card Transfer
  235. MyVanilla Prepaid Debit Card
  236. Myer Gift Card
  237. NAB - Branch |or| 24/7 ATM Cash Deposit
  238. NXT coin
  239. Voucher
  240. Namecoin
  241. National Bank Transfer
  242. National Bank of Canada Cash Deposit
  243. Natwest/RBS/Ulster Mobile Banking ONLY
  244. Neiman Marcus Gift Card
  245. Neosurf Gift Card
  246. Neteller
  247. Netflix Gift Card
  248. Netspend Prepaid Debit Card
  249. Netspend Reload Pack
  250. Netspend Web Transfer FlashPay
  251. Newegg Gift Card
  252. Nigeria Banks Transfers
  253. Nike Gift Card
  254. Nordstrom Gift Card
  255. Novacoin
  256. Gift Card
  257. Office Depot Gift Card
  258. Office Max Gift Card
  259. OkPay
  260. Olive Garden Restaurant Gift Card
  261. OneVanilla VISA/MasterCard Gift Card
  262. OneWest Bank Cash Deposit
  263. Outback Restaurant Gift Card
  264. Gift Card
  265. PNC Cash Deposit
  266. Paxum
  267. PayM
  268. PayPal
  269. PayPal My Cash Gift Card
  270. PaySon
  271. Payeer
  272. Payless Shoes Gift Card Code
  273. Payoneer
  274. Paypower
  275. Paysafecard
  276. Paysera
  277. Paytm Online Wallet
  278. Payza
  279. Peercoin
  280. Perfect Money
  281. Pizza Hut Gift Card
  282. Playstation Network Gift Card
  283. PlusGiro
  284. Pokerstars
  285. Polo ralph lauren gift card
  286. Popmoney
  287. Postal Money Order
  288. Postal Order
  289. PostePay
  290. Pottery Barn Gift Card
  291. Prepaid Debit Card
  292. Quiksilver Gift Card
  293. RBC Bank Cash Deposit
  294. RIA Money Transfers
  295. Rbs/Natwest/Ulster BANK ONLY-GET CASH ONLY
  296. Ready Debit
  297. Ready-Debit® Prepaid Transfer
  298. Reebok Gift Card
  299. Regions Bank Transfer
  300. Regions Cash Deposit
  301. Reloadable Vanilla Card
  302. Reloadit
  303. Gift Card
  304. Riot Points
  305. Rocket Banking (Banglaldesh)
  306. Rue21 Gift Card
  307. Runescape Gold
  308. RushCard
  309. SEPA
  310. SQUARE UP
  311. SUBWAY Gift Card
  312. SWISH
  313. Safe.Cash
  315. Same Bank Transfer: CBA, Westpac, INSTANT RELEASE!
  316. Same bank transfer
  317. Santander Bank
  318. Santander Bank Cash Deposit
  319. Scotia Bank Cash Deposit
  320. Sears Gift Card
  321. Sephora Gift Card
  322. Serve to Serve Account Transfer
  323. Shell Gift Card
  324. Shutterfly Gift Card
  325. Simple
  326. Simple Bank instant transfer
  327. Simple Card peer2peer transfer
  328. Skrill
  329. Skype Credits
  330. Skype Voucher Code
  331. Solid Trust Pay STP
  332. Southwest Airlines Gift Card
  333. Spotify Gift Card
  334. Square Cash
  335. St George Cash Deposit
  336. Staples Gift Card
  337. Starbucks Card
  338. Steak and Shake Restaurant Gift Card
  339. Steam Wallet Gift Card
  340. Straight Talk Reload
  341. Stream Gift Card Code
  342. Stripe
  343. StubHub Gift Card
  344. Suntrust Cash Deposit
  345. Suntrust account transfer
  346. Swipp (DKK)
  347. TD Bank Cash Deposit
  348. TD/Wells/Citi/US/Capital/PNC/BB&T/SunTrust
  349. Taco Bell Gift Card
  350. Target Gift Card
  351. Target VISA Gift Card
  352. Target/GameStop/BestBuy Offline
  353. Ticket Premium
  354. TicketMaster Gift Card
  355. Tim Horton Gift Card
  356. Time Stamp Selfie
  357. Invite Code
  358. TransferWise
  359. U.S. Bank Cash Deposit
  360. UGO Pay
  361. UK Fidor Bank Transfer
  362. UPI Payments
  363. US Bank
  364. Uber Gift Card
  365. Ulta Gift Card
  366. Under Armor Gift Card
  367. Union Bank Cash Deposit
  368. United Airlines Gift Card
  369. VISA Credit/Debit Card
  370. VISA Gift Card
  371. Vanilla Reload Card
  372. Vanilla VISA Gift Card
  373. Venmo
  374. Viber Out Gift Card
  375. Victoria's Secret Gift Card
  376. Virtual visa mc gift card
  377. Vodafone Cash Egypt
  378. Walmart Gift Card
  379. Walmart Money Card
  380. Walmart Visa Gift Card
  381. Walmart to walmart
  382. Walmart/CVS/7-Eleven Cash Deposit
  383. Walmart2Walmart
  384. WeChat Pay
  385. WebMoney
  386. Wells Fargo Account Transfer
  387. Wells Fargo Cash Deposit
  388. Wells Fargo SurePay
  389. Wells Fargo cardless ATM
  390. Wendy's Gift Card
  391. West Elm Gift Card
  392. Western Union
  393. Westpac - Cash Deposit
  394. Westpac - Cash Deposit @ Branch or 24/7 Deposit ATM
  395. Westpac - Cash Deposit CBD ATM 24/7
  396. Westpac Same Bank Transfer
  397. Whole Foods Market Gift Card
  398. Woodforest National Bank Cash Deposit
  399. WorldRemit
  401. Xbox Gift Card
  402. Xoom Bank Transfer Worldwide
  403. Yandex.Money
  404. Zappos Gift Card
  405. Zelle
  406. Zumiez Gift Card
  407. eBay Gift Card
  408. code
  409. gift cards of us based retailers
  410. iDEAL
  411. iTunes Gift Card
  412. mCash - mobile payment Norway
  413. usbank cash deposit 

Wednesday, November 22, 2017

This Woman Thinks Bitcoin Is The Devil

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.

Friday, November 10, 2017

Why Haven't Central Banks Gone After Bitcion?

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.

Bitcoin Can't Be Domesticated

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.