Friday, August 30, 2019

1,000 Fake Gold Bars Discovered, Bitcoin's 10-yr Alpha is 338,433,233%, and Hong Kong Loves Crypto

What's happening in bitcoin news?

  • Bitcoin's utility over gold has returned as fake gold bars have entered the market.
  • Data shows bitcoin’s performance has outstripped mainstream investments in internet firms since 2010 by 338,433,233%.
  • In Hong Kong, bitcoin is selling at a premium due to mass protests.   

Bitcoin's utility over gold has returned as fake gold bars have entered the market. 

One day back in 2017, someone noticed that two gold bars had the same ID number. Ooops. A Reuters report on Aug. 28 said that nearly 1,000 fake bars were found in the vaults of JPMorgan Chase & Co., one of the major banks at the heart of the market in bullion. 

"The forgeries are sophisticated," said the head of Switzerland’s biggest refinery, according to the article, "so thousands more may have gone undetected".

“The latest fake bars ... are highly professionally done,” said Michael Mesaric, the chief executive of refinery Valcambi. 

(Click here for a report on how to avoid gold scams)

As fake gold bars are being discovered all over the world, the price of gold has actually spiked due to asset quality concerns. Everything is overpriced and central banks are charging investors to deposit funds (negative rates). This is actually fueling more aggressive/risky investing and smart investors are looking for safe alternative investment opportunities like gold, real estate and bitcoin. The same reasons that are driving people to bitcoin are driving them to gold, but gold is flawed for two reasons: 1) it is heavy and 2) it can be faked.

Would you accept gold from someone you don't trust without verifying its authenticity? I like gold, but bitcoin requires no trust. The trust is built into the underlying technology.


Bitcoin’s performance has outstripped mainstream investments


It's not surprising that according to the CEO of blockchain-focused magazine Block Journal, bitcoin’s performance has outstripped mainstream investments in internet firms since 2010 by 338,433,233% based on the following data:


That's a lot of alpha. The price went from just a few cents to thousands of dollars over a 10-year period.

In some places like Hong Kong, bitcoin is even selling at a premium (several hundred dollars).

Why is bitcoin selling for a premium in Hong Kong?


The pro-democracy, anti-government protest movement in Hong-Kong is spurring wider adoption of cryptocurrencies like bitcoin. 

  • Yahoo! Finance reported that the political upheaval in the city "has made local businesses and individuals switch to using non-sovereign and decentralized currency." 
  • Hong Kong department store Pricerite announced that it would begin accepting bitcoin, litecoin and ether.
  • Genesis Block has been operating 14 crypto ATMs across the city. 

That's not all. Earlier this month, protestors initiated an action to withdraw as much money as possible from their bank accounts. The goal: protect personal assets and send a warning to Chinese authorities. It has also been reported that a number of wealthy individuals ($100 million +) have begun moving wealth offshore.

This is happening all over the world and there's a common theme here. Bitcoin and democracy are linked because bitcoin is a democratized form of money, whereas fiat (like the dollar) is a centralized or authoritarian form of money. I talk about this link in the post: Bitcoin & America Have Common Goals: They Are Linked By The Ideal of Democracy.

The Revolution is Digital...

Tuesday, August 27, 2019

Yang Endorses Blockchain, Houston Rockets GM Buys More Bitcoin, and Binance Enters The Lending Game

Three big stories in the bitcoin space I'd like to share with you today: 

  • Bitcoin, crypto, and blockchain have become a 2020 U.S. presidential issue.
  • Daryl Morey, the general manager of the Houston Rockets basketball team, buys more bitcoin.
  • Binance enters the lending game; holders of Binance Coin, Ethereum Classic and Tether will be able to lend assets and earn interest.

Bitcoin, crypto, and blockchain have become a 2020 U.S. presidential issue. Democratic presidential hopeful Andrew Yang endorsed blockchain (the technology that bitcoin sits on) and wants to implement a blockchain based mobile voting system.

"It’s ridiculous that in 2020 we are still standing in line for hours to vote in antiquated voting booths,"
"It is 100% technically possible to have fraud-proof voting on our mobile phones today using the blockchain. This would revolutionize true democracy and increase participation to include all Americans—those without smartphones could use the legacy system and lines would be very short."
-Yang Campaign Website
I couldn't agree more. This isn't surprising coming from Yang -- he's the only presidential hopeful talking about the real challenges facing the economy today, like automation. My personal dream-team is Yang/Tulsi, but I'll save that for another post. 

I became even more interested in Yang after president Trump tweeted that he thought bitcoin and other crypto were "unregulated crypto assets" that can "facilitate unlawful behavior, including drug trade and other illegal activity." The truth is, most drug trades prefer the U.S. dollar.

I doubled down and donated to Yang after U.S. Treasury secretary Steven Mnuchin labelled bitcoin as a national security issue. I started making phone calls for Yang in May, when congressman Brad Sherman made a plea to abolish Bitcoin because he views it as a direct threat to the U.S. dollar. He wants to make the purchase of bitcoin illegal.

Thankfully, we have folks like Yang and Ron Paul coming out in favor of bitcoin because if the US bans bitcoin, it will mean that our fate is tied to the American dollar. You can read more about my prediction for the U.S. if it bans bitcoin in the post: An Argument Against The Ban of Bitcoin: Bitcoin Represents a Threat to The Permanent State, Not America. Namely, it will tie our demise to the U.S. dollar.


In other bitcoin news, Daryl Morey, the general manager of the Houston Rockets basketball team, recently tweeted “I just bought more” in response to a pro-Bitcoin tweet. Morey is not alone. I've seen dozens of tweets like this. There's a long list of celebrities, athletes and musicians that are pro-Bitcoin. Billionaire tech investor Mark Cuban hinted at adding crypto payments last year. Why? Not only does bitcoin represent a safe haven from the coming financial crisis, but it comes with additional technological features that fiat does not, AND, as Obama said, it's like carrying a Swiss bank account in your wallet.

Last but not least in bitcoin news is one of my favorite places to buy crypto: Binance. In terms of new offerings for coins (ICOs), Binance is THE BEST. So imagine my surprise when I heard Binance was getting into the lending game. I'm going to write another post explaining why this is such a powerful move on Binance's part, but the most important takeaway here is that holders of Binance Coin, Ethereum Classic and Tether will be able to lend assets and earn interest through a new service called Binance Lending. Interest is paid out after the loan matures. So, at a time when the world's central banks are pushing negative interest rates, one of the strongest players in the crypto community wants to pay you interest. The irony.

The Revolution Is Digital....

Friday, August 23, 2019

Bitcoin & America Have Common Goals: They Are Linked By The Ideal of Democracy

When in the course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

                         -The Unanimous Declaration of the Thirteen United States of America, JULY 4, 1776


In my last post: An Argument Against The Ban of Bitcoin: Bitcoin Represents a Threat to The Permanent State, Not America, I talked about my prediction for the U.S. if it bans bitcoin. Namely, it will tie our demise to the U.S. dollar. 

Ultimately, the post was a declaration of sorts. Like the Declaration of Independence quoted above, it was an attempt to declare the causes which should impel America to separate itself from the dollar and the U.S. central banking authority. And, the tool to bring about the separation is bitcoin.

This isn't some pie in the sky notion. We don't need a think tank or a GoFundMe campaign. Bitcoin's been vetted. It's been tested. It's been around for over 10 years now, and nobody can shut it down.

I am not only an investor in bitcoin for all the reasons outlined here, but I am an investor in the ideal of America, which is embodied in bitcoin. In other words, I invest in bitcoin because I believe in the ideal of America. They are inextricably linked.

Bitcoin Vs. America


Bitcoin is not an ideal, it is a tool created by someone named Satoshi (you can read the white paper here). It is a real form of currency created with technology that has a decentralized system of governance. When you invest in bitcoin, you are investing in the foundation of the technology that is creating the world's first decentralized reserve currency.

There is no central bank of bitcoin, it has no state. Decision authority is decentralized and therefore in the hands of the people that use it, rather than the government. In other words, bitcoin is the living embodiment of democracy, which is why it is the perfect tool to separate the American ideal from the U.S. dollar and those that use the dollar to establish a tyranny over the American people.

America is an ideal. At its core, it is a declaration of freedom. The forefathers of this country were running from a sovereign state that they felt did not represent the people. And, they were willing to fight for the creation of a new state. It had its problems, namely that it was built on the condition of genocide and slavery (my people were brought here as slaves in the 1600s), but its ideal corrected those sins. 

Let's be clear on what the American Ideal is. It is to create a place where all men are created equal. Specifically, the Declaration of Independence says that:
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.
The Declaration of Independence goes on to say that these "unalienable" rights should be secured by the government and this government should be governed by the people.

So, what does the Declaration of Independence say about a government that does not act in this way? It says we have the right to create a new one if these rights are not provided for.
That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
The Declaration of Independence goes on to say that when a "long train of abuses and usurpations", attempt to take away these rights from the people, 

"it is their [the people] right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
The new guard is a system of money that can't be manipulated or controlled. The new guard is bitcoin. 

I am not advocating for an overthrow of the government, but I am suggesting that we take back our name. I'm also suggesting that if the forefathers of this country had bitcoin in 1776, they would have used it.


The Revolution Is Digital


America, the ideal of America, is the country of bitcoin because she is a symbol of freedom and democracy. If we believe in democracy for everything, then we also need a democratized currency. 

Instead, we worship authoritative paper. The dollar is like an old dictator; it is corrupted, it is delusional, but it is in control. It is in control because it thinks it has no equal. Even worse, it is in control because we give it the power to do so, but it will be easier as the dollar falls in value. And, bitcoin will be there with open arms, like it is for the rest of the world. It's ready to soak up all the value the world can give it.  (If you're curious about what the potential flow of value from the dollar to bitcoin looks like, please go here)

We don't need a physical revolution, we need a digital one. It requires no blood shed or violence, no guns or name-calling, no debate, poll, protest or uber-farcical congressional hearing for the media to feed upon. The only bold action a person need take is to buy bitcoin. And, this is what's happening all over the world, especially in those states in economic or political turmoil.

 

America Is Not A Place


What's important to remember is that America is not a place. It is not a currency. It is not a religion, race or creed. Unlike Rome, it is not even an empire. It is an ideal of freedom, liberty and democracy that has been lost. The sad truth is, we may live in the United States, but few of us live in America.


The adoption of bitcoin can help to truly make America great, by separating it from the U.S. dollar as well as the permanent state. And, it can do so without war or terror of any kind.