Here's an interesting news article: Are Bitcoin Startups Bound to Crush the Banks?Bitcoin Startups are getting into every sector of the financial business, and the banks know it. Online businesses have been threatening the banks, and now a massive wave of Bitcoin startups are innovating the financial sector up to the point that banks needed to act. Personal-finance startups are helping consumers balance their checkbooks online. Refinancing startups are taking advantage of cheap debt to offer students better rates on loans; on the other hand, all these new startups are introducing an innovative and more simplistic approach for the financial business industry. All of it is taking a lot of the business away from banks. The biggest firms on Wall Street have been employing all sorts of tactics to defend their top line from invasions coming from new technologies such as Bitcoin. But now we are seeing a new turning point. Many big banks are now investing in startups. Increasingly, seed-stage ventures and accelerators have been formed as Wall Street firms snap up a piece of hundreds of pre-IPO companies. Wells Fargo has backed a handful of startups through its accelerator. One has the potential to help big banks get slimmer on staffing. Kasisto is a platform for financial institutions providing clients virtual personal assistants. And Bank of America has sponsored tech accelerators in New York, London, and Charlotte. Sometimes banks wind up jointly investing in the same startup, like Motif Investing, an online broker. Both JP Morgan and Goldman Sachs backed that platform. JP Morgan also backed Square, along with numerous big banks’ investment arms. And even Morgan Stanley, which has had a relatively muted presence in the investing scene, has struck deals to back companies like messaging platform Perzo and Eris Exchange. Goldman Sachs also backed Square, along with other big startups. Other deals for the bank have included Kensho, a market data analytics firm. Goldman is even backing Bitcoin startups. It seems that Banks are now looking towards earlier stage investments and opportunities; they cannot risk being left behind. Technologies such as Bitcoin are seen has innovations that can bring up a lot of potential to the financial industry and this time, the Bitcoin Industry and the Blockchain technology has finally caught their interest.http://www.newsbtc.com/2015/06/12/are-bitcoin-startups-bound-to-crush-the-banks/Chase, this is a great article. I have been getting a few requests a week from major bank representatives to connect with me on my LinkedIn professional network. As always I have been gracious and treated them all with respect. This is a rapidly changing environment. There are many challenges and many opportunities. I am confident that DNotes is very well positioned to lead the digital currency arena one day. |
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Jeff is one of my new connections on LinkedIn professional network. He is an amazing writer, Ghostwriter, Speaker, and Inc. Magazine Contributing Editor. Among other things, it reminds that we all get "lucky breaks" from time to time. Most people don't recognize, appreciate, or take advantage of them and simply let them pass by. I wish DNotes fell on my lap ten years earlier but instead of wishing what I cannot chance I consider it as my luckiest break of a life time. If it is being reflected that way, it is because I believe that it is. As Henry Ford said, “Whether you think you can, or you think you can't--you're right.” Enjoy. Quote from: Jeff HadenInfluencer Ghostwriter, Speaker, Inc. Magazine Contributing Editor Ten Choices You Will Always Regret Making Hindsight is a funny thing. Look forward and the path seems uncertain, the future unpredictable. Look back and all the dots seem to connect... except the dots that mark the choices you didn't make, and the risks you didn't take. Here are choices you will someday regret having made: 1. Choosing not to be brave. Being brave doesn't mean you aren't afraid -- in fact, the opposite is true. Courage without thought or meaning is simply recklessness. Brave people aren't fearless;they've simply found something that matters more to them than fear. Say you're scared to start a business. Find a reason that means more: creating a better future for your family, wanting to make a real difference, or hoping for a more rewarding and fulfilling life. Once you find a greater meaning, you also find courage. See fear not as something to shrink from but as something to overcome -- because that's all it is. Read More: https://www.linkedin.com/pulse/ten-choices-you-always-regret-making-jeff-haden |
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Interesting coindesk survey on who really uses bitcoin. Women are getting more involved according to this survey. New CoinDesk Report Reveals Who Really Uses Bitcoin[...] Despite a growing number of initiatives such as Bitcoin Women's Day, women using bitcoin are still a minority, with over 90% of bitcoin users in our survey identifying as male. Though this figure is a minuscule improvement (5.2%) from the male majority seen in previous surveys. With regards to race, 65.8% of respondents in the survey identified as 'White'. Second came 'Asian'. While these figures reinforce the young, white, male stereotype, other findings – such as average income – are more surprising. The question of average earnings providing a very even split across all earning brackets. Those earning $50,000–$100,000 came top, at 23.9%. One in five said their household income was below $25,000. [...] http://www.coindesk.com/new-coindesk-report-reveals-who-really-uses-bitcoin/Very much as expected. "Those earning $50,000–$100,000 came top, at 23.9%". Would have been nice to know what percentage of Bitcoin this group own collectively; 95%? I would have included an income bracket of $250,000 + . |
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" . . . why would banks even consider looking into the blockchain technology?"
Existential threat.
"Why would they spend time on this?"
Figure out how to stymie or (profitably) integrate it.
"It would seem to me they would not want this to pan out . . . "
Nope, they don't want it to; and the better they know their enemy, the better their chances of it not panning out.
IMZ Mark
Personally I don't see why banks wouldn't eventually try to integrate digital currency, once they understand how to properly secure it. Utilizing it for back end transactions and also offering digital currency services for consumers. Many of us who are interested in digital currency believe in 'being your own bank', however I'm sure there is a large population of people who would like to have it integrated into existing system. If enough people demand using digital currency, the banks will have to evolve, or suffer from losses. Joe, you are absolutely correct. It may take a few years but it is conceivable that with a more favorable regulatory environment the more progressive banks could invest in DNotes like the rest of us and use it to their benefits; immediately gaining significant cost savings and competitive edge. Fiat currency, ACH (automatic clearing house) credit/debit card payment network systems, traditional cross-border currency transfer can all benefit by participating in adopting a stable digital currency like DNotes one day. In consideration of such possibilities we are firmly committed to building DNotes as the global digital currency for everyone. That has been our strategic plan from day one and we have been positioning DNotes accordingly. |
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The following was published by Blackhawk Engagement Solutions - "A Leading Global Provider of Customized Incentive and Engagement Solutions." It is a great source of information on employee incentive benefits. Some of the interesting facts within it include: - More than half of America's companies use incentive programs. - U.S. organizations spend over $100 billion annually on them. - Incentives (other than cash) are a $46 billion industry. The industry has more than doubled in the last 10 years. Organizations with higher than average employee engagement have: - 27% Higher Profits - 50% Higher Sales - 50% Higher Customer Loyalty - 38% Above Average Productivity - 155% Higher Stock Returns Exploring Employee Incentives - http://www.bhengagement.com/employee-rewards-recognition/Nice find. Here is a little tidbit we can use for our employee incentive benefits program: What makes incentives do well? To be successful they must: Promote or encourage specific actions By a specific audience To produce measurable outcomes Through integrated motivational strategies During a defined time period. I did a good amount of research on Employee Incentive Benefits. It is huge. When we start targeting small business owners (start-up to $50 million in revenue) it will be launched as a twin pack with CRISP for Retirement. Targeted PR campaign will be starting in a few months. We expect this program to be very well received. |
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The complete answer is lengthy and could even be a little sensitive. The brief answer is that even the bankers are finally accepting that the Blockchain technologies are so immensely innovative and disruptive that they can no longer ignore it. They don't seem to be too concerned about Bitcoin as a serious threat to their credit/debit card payment systems because of Bitcoin's volatility.
So then what would happen if a block chain based currency which wasn't so volatile came along? Would that one be a threat? Frankly, if we make that argument too early the bank will laugh at us. I am quite convinced that outside of DNotes not too many people believe that volatility in digital currency can be avoided. To a large extent. they are correct. That is the most complex part of DNotes business plan and how it is executed. It is near impossible for a competitor to replicate DNotes business model. Everything is linked and must work well as a whole system. It is grounded on trust and integrity and unquestionable commitment of the leadership to create long term fundamental value for its stakeholders. It will be a while before the banks consider DNotes a threat. Next year could be interesting. We will see. |
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This is interesting, both of these banks are active in New Zealand, and one of my friends is quite senior at ANZ. It appears to be the case that banks are taking the first baby steps to adopting blockchain technology, but without fully embracing an actual currency.
Australian Banks Westpac and ANZ Experiment With Ripple
Two of Australia's 'big four' banks, Westpac Banking Corporation and the Australia and New Zealand Banking Group, are experimenting with peer-to-peer transfers on the Ripple protocol.
The news, revealed by The Australian Financial Review, follows last month's announcement that the Commonwealth Bank of Australia (CBA) – another 'big four' rival – is trialling the tech for transfers between its subsidiaries. At the time, CBA's chief information officer David Whiteing described distributed protocols as "the way of the future".
While ANZ is still in early discussions with the company, Westpac, the larger of the two by market cap, told TAFR it has begun a proof-of-concept with Ripple Labs, whereby its employees are sending funds to two countries overseas.
Rachel Slade, Westpac's general manager of global transactional services, said:
"The solution we've developed is faster than other alternatives in the market today, providing same or next-day payment. This technology could be very beneficial to all Australians, providing a low-cost and fast method of sending low-value payments overseas."
Both Slade and an ANZ spokesperson were more guarded on the possibility of trialling cryptocurrencies like bitcoin in future, citing regulatory uncertainty. "The banking of cryptocurrency is technically feasible, though we don't have that capability today," the ANZ spokesperson said.
Reading this raises one very large question, why would banks even consider looking into the blockchain technology? Why would they spend time on this? It would seem to me they would not want this to pan out as a reliable way to transfer money being they will not make money off of it like they do now. Any thoughts as to why they would be looking into this and spending time on this? The complete answer is lengthy and could even be a little sensitive. The brief answer is that even the bankers are finally accepting that the Blockchain technologies are so immensely innovative and disruptive that they can no longer ignore it. They don't seem to be too concerned about Bitcoin as a serious threat to their credit/debit card payment systems because of Bitcoin's volatility. |
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I just wanted to give a shout out to what a great job you all are doing on the community dynamics aspect. I've seen how the various DNotes founders and established team members have patiently answered questions posed by people new to the thread (or even people who have been out of the loop for a while), even when those same questions have been answered more than once in the past. Answers to those questions always come with a warm welcome. It's like you're just happy to have people on board in whatever way they are comfortable with, whether it be inquiring, participating, or even challenging. This graciousness really sets DNotes apart. Great job, DNotes team! And thank you. I really enjoy hanging out here. It's also been a joy to contribute where I've been able.
Thanks for your kind words, wiser. We sincerely believe that DNotes can indeed be positioned as the digital currency of the future for everyone. The large majority of the world's population struggle financially everyday with no end in sight. DNotes can offer a ray of hope to those who discovered us early. It is always our preference to be respectful of everyone, including those who may not always with our view point. |
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This is interesting, both of these banks are active in New Zealand, and one of my friends is quite senior at ANZ. It appears to be the case that banks are taking the first baby steps to adopting blockchain technology, but without fully embracing an actual currency.
Australian Banks Westpac and ANZ Experiment With Ripple
Two of Australia's 'big four' banks, Westpac Banking Corporation and the Australia and New Zealand Banking Group, are experimenting with peer-to-peer transfers on the Ripple protocol.
The news, revealed by The Australian Financial Review, follows last month's announcement that the Commonwealth Bank of Australia (CBA) – another 'big four' rival – is trialling the tech for transfers between its subsidiaries. At the time, CBA's chief information officer David Whiteing described distributed protocols as "the way of the future".
While ANZ is still in early discussions with the company, Westpac, the larger of the two by market cap, told TAFR it has begun a proof-of-concept with Ripple Labs, whereby its employees are sending funds to two countries overseas.
Rachel Slade, Westpac's general manager of global transactional services, said:
"The solution we've developed is faster than other alternatives in the market today, providing same or next-day payment. This technology could be very beneficial to all Australians, providing a low-cost and fast method of sending low-value payments overseas."
Both Slade and an ANZ spokesperson were more guarded on the possibility of trialling cryptocurrencies like bitcoin in future, citing regulatory uncertainty. "The banking of cryptocurrency is technically feasible, though we don't have that capability today," the ANZ spokesperson said.
Interesting and good insight. Ripple has been working with quite a few banks worldwide. Stella is based on the same concept. They both use their own token or native currency. It's a viable solution and they will have certain market shares. We believe that there should be a global digital currency for everyone worldwide. It may even take a generation or more for mass acceptance. That is our very long term vision and it is reflected in how we map out our strategic plans and position DNotes accordingly. This is our master plan to position both DNotes and its ecosystem to enjoy a health growth rate for generations. We believe that we are already at the point where thought leaders must begin to address global problems with global solutions. DNotes is a global currency and payment processing solution, among others. We are still taking our time to build a solid foundation. 2016 will be the year when we start expanding globally. |
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"Obviously, MasterCard has been trying to exploit this tendency, taking advantage of the uninformed and misinformed public at large, including political leaders and regulators world wide."
It certainly seems that way.
There is too much to cover in that article that is inaccurate or misleading.
"speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified" - So in an hour on average the transaction is completely verified, instead of 24-48 'business' hours like my mastercard? Either way you get instant notification, but verification of transaction, bitcoin wins by a long shot.
"digital currencies are far more susceptible to hacking attacks" - I wonder how one could substantiate that claim? Several times in my life my account (mastercard) had someone withdrawing money from across seas. This also means they hacked have my personal information as well. Yet my bitcoins are still safe and sound since I started.
"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud." - It is a competitive industry just like any other. I don't know what possible evidence you could have to substantiate this. Hundreds of thousands of miners are just going to give up?
"The "current blockchain process" doesn’t provide sufficient transparency" - From where I am sitting it is a lot more transparent than the credit card networks. If you ever plan to purchase anything with your bitcoin, it is basically 100% transparent.
"Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges." - Government consumer protections are fine, providing they are logical and don't inhibit progress. I like the use of the word reversal, like they can reverse CC transactions... lol. All they do is add a new transaction for the exact same amount back to the sender.
And all the time the credit card companies are still smiling because they have earned their fees along the way. Someone returns something guess what... the credit card company does not return your fees, shoot even paypal charges you to reverse a transaction, ok well they don't "CHARGE" you they just simply do not return all the fees to you. So not only did they "charge" me for the initial transaction they also "charge" for the return by not giving all your money back. I would say that is a little bit of double dipping there!! Just like Ebay, you charge for shipping and they charge you a fee on that now where it used to be only the item amount that you only were charged for. Gee thanks, I do not gouge for shipping but for some reason they believe now that I need to pay them for covering my shipping cost. Oh now you have gotten me started.... LOL I had the opportunity of working with a fair number of small business owners from start-up to $20 million in revenue for a number of years, both in the US and Canada. Depending on which companies, credit card expenses + (charge-back + credit card interest payment) was always one of the top 5 problems that needed to be brought under control. Majority of small business owners work very hard for very little pay. With a more favorable regulatory environment and a little more time to get established DNotes is committed to make a difference. |
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The following article is worth reading and here are my comments: I am a supporter of Bitcoin and a strong believer that what is good for Bitcoin is good for our industry. Unfortunately, being the pioneer, Bitcoin has certain challenges it may never be able to overcome. Mass acceptance of Bitcoin as a currency is extremely remote but the innovative Blockchain technology will lead to massive new business formation and the new engine of huge job growth and wealth creation. Without strong leadership and an entity or individual with sufficient self-interest to promote and protect Bitcoin as a currency, it will remain as a speculative trading vehicle and not likely to gain much traction as a medium of exchange to exploit the low transaction cost. The growing excitement today is not on Bitcoin as the currency to replace or supplement fiat currency but the power and potential of the Blockchain technology. ************************************* Bitcoin: In Search Of Purpose http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/Jason Bloomberg Contributor The article itself... One line from that article that really resonated with me was the part where they talked about how merchants are happy to accept Bitcoin because it cuts down on their costs but that customers are not too excited about paying in Bitcoin. Here's the direct quote that expresses a huge reason why I don't pay for much with Bitcoin: Furthermore, the commission for purchasing Bitcoin (or the spread, in the context of speculation) ranges from five to ten percent – even more than what merchants pay for their credit card support. Why would consumers ever agree to take on this expense if merchants are only too happy to bear such transaction costs today?Paying for something in Bitcoin makes sense if you happen to have Bitcoin sitting around. But it doesn't make sense to trade fiat for Bitcoin just to pay for something with Bitcoin that you could just as easily pay for with fiat--and he's absolutely right about the credit card costs not being the customer's problem, at least not in a way the customer can easily see. The only reason someone might trade fiat into Bitcoin to pay for something with Bitcoin is if that "something" cannot be bought with fiat. When you think about "somethings" that can't be bought with fiat, the first thing that comes to mind are illegal "somethings." Perhaps that is why such a disproportionate amount of Bitcoin commerce is of the illegal variety. But that would change if it actually saved the customers money to pay with Bitcoin (without it being a complicated process). Since DNotes is a much more stable currency than Bitcoin, it's more realistic to expect that at some point down the road customers may even prefer to pay in DNotes. As a merchant accepting credit cards I get really tired of paying the credit card companies anywhere from $800 up to $3500 a month!! When I see that automatically deducted from my account each month it simply drives me more to educate others about digital currency. And yes merchants get it because they see those fees having to be paid for each month and I am one of those thousands and thousands of small businesses out there that pay these credit card institutions each and every month. They are raking in millions at the expense of small business. Millions of small business owners struggle to meet payroll, which comes before making any contribution to their retirement accounts. There is another real cost burden. Most small business owners pay a very high price in credit card interest of 27% to 29%. It may sound shocking but many small business owners max out every credit card they have available with six figures or higher unpaid balance. |
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MasterCard's assessments on digital currencies.... MasterCard: Digital Currency’s Risks Outweigh the Benefits [...] "We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks."[...] Consumer protection MasterCard's submission suggests any new regulation the UK government creates should address the current lack of consumer protections in the digital currency space. One of the risks it flags is that consumers currently have no form of official redress if they use digital currency to make a purchase and the merchant fails to deliver their goods. To further highlight the safety of the existing financial system in comparison, the document references the UK’s Financial Services Compensation Scheme, which guarantees customers of registered companies up to £85,000 per person in compensation if the firm goes out of business. The response makes numerous references to the high-profile failure of bitcoin exchange Mt Gox, highlighting how customers can suffer due to the lack of protections in the digital currency space. MasterCard also believes bitcoin users are in danger as the cost of mining bitcoins will rise when usage of the currency increases, until the cost becomes unsustainable. It continues: "To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud."[...] Final recommendations MasterCard suggests the government should create regulation that addresses the risks associated with cryptocurrency while still enabling lawful digital currency businesses to "flourish". The "current blockchain process" doesn’t provide sufficient transparency, it says, and regulation should require all transactions to go through regulated and transparent administrators, which would be supervised by relevant domestic, European or global authorities. Digital currency companies should also be licensed and supervised in the same way non-bank money transmitters are. They should be required to "perform Know Your Customer checks, maintain an AML program, file suspicious activity reports and address cybersecurity vulnerabilities". Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges.http://www.coindesk.com/mastercard-digital-currencys-risks-outweigh-the-benefits/This is petty and malicious from MasterCard. They are doing the whole 'entrenching' thing I talked about only a few posts previously. MasterCard know that Bitcoin doesn't really have any 'leaders' or people providing direction for it in the way that DNotes does. This is why they are trying to make it expensive to get into the business. MasterCards biggest fear, is a team like DNotes that is led by accomplished business entrepreneurs coming in to actually challenge their model for global payments. So MasterCard moves to make it insanely expensive to run an exchange or online wallet, by lobbying the Government to add barriers of entry to new competitors. Recognizing that "only the government could ensure the stability and continuity essential to their welfare," men of commerce and industry did not focus upon a "neutralization of the government." On the contrary, "They wanted a powerful government, but one whose authority stood at their disposal; a strong, responsive government through which they could manage their own affairs in their own way." - Robert Wiebe There is an inherent tendency for promising emerging technologies to be deceptive at the formative stage, especially when perceived to be highly disruptive. Incumbents, who are the most direct targets of the disruption, often discount Bitcoin as a threat because of its explosive volatility and poor track record as a store of value. Bitcoin as a medium of exchange has not gained meaningful traction either. In such an environment, the immensely promising Bitcoin with the potential to be the greatest technology revolution of our generation can be quite deceptive; causing many to look back a few years from now wondering how they could have missed the early promising signs. Obviously, MasterCard has been trying to exploit this tendency, taking advantage of the uninformed and misinformed public at large, including political leaders and regulators world wide. As TeeGee pointed out correctly, it does not help when Bitcoin is not only leaderless but divided, in terms of industry support. First they discounted that Bitcoin is a threat to their outdated and expensive global payment network systems. That alone would be fine, allowing time to be the judge. Clearly they are feeling threatened now; leading them to aggressively lobby for a drastic increase to the cost barrier of entry. This will stifle innovation and eliminate small business operators. I wish our industry can come together and be united to protect and promote the best interest of everyone. |
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"This is such a refreshing community! I remember going through page after page of DarkCoin / XCurrency threads just over a year ago, and it was just flame, flame, flame over 'which is better' or 'who is first'. You come to DNotes forum, and it's all peaceful, on topic, respectful and educated; the thread attracts a certain type of participant."
IndiaMikeZulu has been discussing Dnotes intensively for three months now. (It came to our attention at the beginning of the only 'anomaly' its charts have ever had.) To our surprise -- as a compliment -- we have found ourselves discussing it as a 'corporate coin,' that is, one in which the community has figured out that marketing (to as broad an audience as possible) is The Next Big Innovation.
'Flame flame flame' is wealth goin' up in smoke.
Mark (IndiaMikeZulu), Australia
Mark, you are absolutely correct. DNotes has clearly differentiated itself in many ways. Among them, is the creation of a culture of mutual respect and teamwork, for the mutual benefit of everyone. For DNotes to be truly successful as the digital currency for global commerce it must not be limited to our own benefits but also to others worldwide. This is a huge statement of commitment, scope/scale and reach, but one that is productive and purposeful. It takes a very strong commitment of leadership and other resources (including funding which we have little) to lead a small group of followers to become a vibrant community that believe and appreciate a respectful and productive environment or culture. Through very clear and consistent messaging; delivering as promised, DNotes is slowly gaining the trust and respect of many, including those who might have been indoctrinated with countless negative headlines. |
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In 2007 I started helping a struggling small business owner to diversify his seasonal heating business to include a second seasonal business to even out cash flow. That gave birth to Smokeys Daylily Gardens, one of the largest Daylily growers in the world today. Our web developer and internet guru, whom I have been working with closely for many years introduced me to Bitcoin in November 2013. When I finally decided to do some serious research, I could not stop thinking that we finally have all the needed parts to help alleviate some significant global problems that had not been possible before.
So... you first heard about Bitcoin in November 2013, and launched DNotes in February 2014. Of course you went into it with plenty of computer and entrepreneurial experience, but even so, that was some serious cramming. Welcome to DNotes forum. JBGardner. Hope to see you here often. This is a very friendly and helpful community. Feel free to ask any questions and let us know if there is anything we can be of help. I have heard of Bitcoin before November 2013 but did not know enough to even form an opinion. So you are correct, that was some serious cramming for a few months. I visited every single forum, invested and studied a few very closely. I still spend a lot of time these days to ensure that I stay deeply informed. This is a very complex and challenging industry with a lot of moving parts. We are fortunate to have a very knowledgeable team. |
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The following article is worth reading and here are my comments: I am a supporter of Bitcoin and a strong believer that what is good for Bitcoin is good for our industry. Unfortunately, being the pioneer, Bitcoin has certain challenges it may never be able to overcome. Mass acceptance of Bitcoin as a currency is extremely remote but the innovative Blockchain technology will lead to massive new business formation and the new engine of huge job growth and wealth creation. Without strong leadership and an entity or individual with sufficient self-interest to promote and protect Bitcoin as a currency, it will remain as a speculative trading vehicle and not likely to gain much traction as a medium of exchange to exploit the low transaction cost. The growing excitement today is not on Bitcoin as the currency to replace or supplement fiat currency but the power and potential of the Blockchain technology. ************************************* Bitcoin: In Search Of Purpose http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/Jason Bloomberg Contributor Silk Road kingpin Ross Ulbricht’s recent conviction and life sentence was more than simply a crackdown on a massive online black market for illegal drugs. It was a nail in the coffin of the radical new “cryptocurrency” Bitcoin, as Bitcoin was the glue that held Silk Road together. Or was it? How significant the rise and fall of Silk Road was for Bitcoin is a matter of some debate, as is the purpose of Bitcoin itself. Controversy, however, is nothing new for Bitcoin. In fact, it seems the story of this digital currency consists of nothing but controversy. In fact, perhaps the greatest challenge for Bitcoin is divining the technology’s true purpose. Early innovators often espoused radical Libertarian goals for revolutionizing the banking system and with it, the world economy. By disintermediating third parties, Bitcoin promised to usher in a new world order of free market commerce. Only the Bitcoin story didn’t work out that way. Bitcoin soon became a haven for criminals – not just Silk Road, but any number of money launderers and other shady types who gravitated toward an anonymous, relatively safe method for conducting financial transactions, in particular across national borders. “Because of its openness, Bitcoin will continue to be used by shady actors,”explains Nathaniel Popper, New York Times reporter and author of Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money. “In some ways, the good comparison is cash. Bitcoiners love saying the main medium for illicit transactions is still probably $100 bills because it can be an anonymous form of transacting that’s untraceable, and Bitcoin still has that quality as well.” The Forbes eBook On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or more traditional currencies. In fact, just this week news came to light that an Australian company paid hackers a ransom in Bitcoin. Clearly, Bitcoin is the extortionist’s currency of choice, as it combines the anonymity of cash with the global convenience of traditional wire transfers. If Bitcoin’s true purpose is to facilitate criminal activity, then perhaps Bitcoin itself is – or should be – illegal. However, the US Government for its part pointed out that Bitcoin in and of itself wasn’t illegal, but clearly required regulation. “There’s no way the good attributes of Bitcoin will succeed without a strict regulatory regime,” points out Clay Nelson, until recently the Director of Business Development for Bitcoin startup BitPay. As a result, “Early adopters with Libertarian or anarchist leanings are the least happy with the direction Bitcoin is going in,” Nelson continues. If facilitating a new Libertarian world order isn’t in the cards for Bitcoin, and as regulations squelch the criminal angle, what then is Bitcoin’s true purpose? Many people see Bitcoin as a speculative investment vehicle, as the technology places an upper limit in the number of Bitcoins that can exist, thus creating a permanently scarce commodity. And when each Bitcoin’s value quickly ramped up from a fraction of a penny to well over a thousand dollars, the speculators went crazy – only to cool off as the inevitable downturn more than quartered each Bitcoin’s value. Furthermore, unless some other purpose promises to drive up demand for Bitcoin in the future, there’s little hope for a substantial price rebound. Speculative demand is a poor substitute for the real thing, after all. Perhaps Bitcoin’s true purpose is a medium for routine commerce. Pay for your lattes in Bitcoin maybe, or transfer money overseas. Yes, Bitcoin offers some security and anonymity advantages over credit cards and wire transfers, but are those advantages enough? Nelson is doubtful. “On the consumer side: We have price volatility, first generation wallet technology, entrenched behavior with card loyalty, access to credit, and a belief that customers aren’t responsible for fraud” with credit cards, Nelsonsays.“In other words, the consumer doesn’t feel they have a problem to solve.” Furthermore, the commission for purchasing Bitcoin (or the spread, in the context of speculation) ranges from five to ten percent – even more than what merchants pay for their credit card support. Why would consumers ever agree to take on this expense if merchants are only too happy to bear such transaction costs today? Bitcoin’s True Purpose: the Power of the BlockchainIf Libertarians, criminals, speculators, and consumers each find little value in Bitcoin over time, then what’s left? The answer is the blockchain, a critical element of the technology underlying Bitcoin. The blockchain is a tamperproof, decentralized, globally verifiable record of all Bitcoin transactions since the creation of the technology. You can think of the blockchain as a massive accounting ledger – only unlike traditional ledgers, it exists in the form of widely distributed identical copies that everyone can agree contain accurate and up-to-date records of all Bitcoin transactions around the globe. In fact, the blockchain has potential uses even beyond Bitcoin transactions themselves, for example, to record any kind of business transaction where the parties involved want to publish the details for everyone to see and to be able to verify. Innovation in blockchain-based business models are therefore not surprisingly a current area of innovation and investment. Nelson agrees. “Investors are most interested in the Blockchain itself,” he admits. From real estate deals to complex counterparty transactions, blockchain technology promises to lower transactional risk while increasing transparency – solid, above board business benefits that promise to drive both continued innovation as well as acceptance and adoption over time. Admittedly, blockchain technology is still new, and there are indubitably both business and security risks that people have yet to uncover. At this point in time, however, there’s no question the smart money is betting on blockchain technology. This article is the first in a series on Bitcoin and blockchain technology. The author welcomes briefing requests from innovators in this space. Email him directly at bitcoin@intellyx.com. Intellyx advises companies on their digital transformation initiatives and helps vendors communicate their agility stories. As of the time of writing, none of the organizations mentioned in this article are Intellyx customers. Image credit:Antana. Follow Jason Bloomberg on Twitter orLinkedIn. |
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More details have been released concerning the Silicone Dragon NY 2015. I will be speaking on a panel at this event. Please check out the following link: http://www.silicondragonventures.com/events/events-2015/silicon-dragon-ny-2015/INNOVATION SPOTLIGHT: DIGITAL CURRENCIES Francesco Rulli, Founder, BitLanders & BitCharities Sarah Martin, VP, Digital Currency Council Alan Yong, Founder, DNotes Moderator: Porter Bibb, Managing Partner, MediaTech Capital This is likely to be their biggest event and DNotes is the digital currency being highlighted. Wall Street is hot on Bitcoin but also have doubts about Bitcoin gaining mass acceptance. Even though our budget is getting tight, we may decide to have a press release the week of June 15, 2915. Coming up with the right headline and developing the most appropriate content is a little challenging based on what I like to see, especially when I no longer have a long stretch of time when I can just focus in writing a persuasive and compelling article. Furthermore, we simply have too much to cover in one article. It’s amazing how much DNotes and its community have accomplished in just over a year. We can certainly use your help comment and add to the PR based on my suggested out line below. For some prospective and reference, please Check out "Bitcoin In Search Of Purpose”: http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/A great press release will need to have an attention grabbing headline covering the following points: 1. Is the industry giving up on the "trustless" Bitcoin to ever gain mass acceptance? Everyone rushing to Blockchain. 2. Bitcoin may never fully recover from countless negative headlines and settled with limited purpose; as a speculative trading vehicle, failing to ever meet the full function of money and gain mass acceptance. It is too costly to acquire, too volatile as a store of value and medium of exchange and stakeholders limited to certain groups. In contrast; DNotes 3. DNotes is the second generation Bitcoin alternative digital currency taking full advantage of the pioneer's innovation while avoiding their pitfalls, while creating a culture of mutual respect and co-operation for mutual benefits. 4. Branding: stability, trust, reliable long-term appreciation, currency value in line with fundamental value - no pump and dump. 5. Mass inclusion for mass acceptance: Must include women - CryptoMoms; For everyone - unborn and most senior, rich or poor. Family of CRISPs. 6. Currency with a purpose - global initiatives to help solve global problems; the unbanked and cross border currency remittance. Long term initiatives to grow next generation of leaders to solve global problems. 7. Own ecosystem with highly scaleable buildings block to expand rapidly on a global scale at the most opportune time. 8. Ease of use, secure and guarantee; DNotesVault 9. Conclusion: There should be little doubt that Bitcoin will be the greatest technology revolution in the history of mankind. Bitcoin as a currency is an integral part of the technology pack; powered by the Blockchain as the most innovative protocol of decentralized distributed consensus ledger. DNotes, designed from ground up with a purpose, as the stable trustworthy digital currency for everyone is destined to be the Digital Currency of The Future with Lasting Value. That is the currency with the highest potential for mass global acceptance. Pretty amazing. Did some research and Silicon Dragon appears to be popular in the tech, innovation, venture capital worlds. This could be the tipping point mentioned in TeeGee's post. Can't wait to see if it televised or published. With the amount of growing interest from Wall Street these days there should be some media coverage. It will be recorded and made available on Youtube. Could be a lot of fun. |
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And, if anyone is interested in helping to stop the State of North Carolina from regulating digital currencies, or at the very least, show them they need to consider opinions other than those of the big money financial institutions, please go to http://bitcoinregs.org/ and sign the two letters going to the state legislature there. Please understand, I have no problem with regulation when it is actually fair and reasonable not one sided and crushing. The only voice we have in these debates, the only way to sway opinions without the financial bat of Wells Fargo, MasterCard, etc, is to speak up load and clear and make OUR opinion known. Remember, even if your not into Bitcoin itself, these regulations affect ALL coins and digital, crypto based offerings. What affects Bitcoin, affects us all. Fight the fair and honest battle, don't let big money run your life, tell 'em to give crypto a chance. All of this crypto-regulation leaves me feeling a little unsettled. It makes it very difficult for new challengers, and further entrenches exchanges and companies that are already established (Circle, Coinbase... ya know... places that have taken money from: the New York Stock Exchange, USAA Bank, BBVA and Goldman Sachs). As always, the founders of this team have solid plans, and they know the challenges these regulations may bring, and how they can be worked to DNotes advantage. TeeGee, you are correct the unintended (perhaps intended) consequences are to make things so expensive and difficult that only the big boys are left to play. We are watching this very closely and adjusting as we see appropriate. DNotes is well positioned, broad base, nimble and agile with highly scaleable building blocks. I am already spending a lot of time in the "front line" . I love to be in the position to help shape the industry one day. We just have to work really hard to earn it first. |
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More details have been released concerning the Silicon Dragon NY 2015. I will be speaking on a panel at this event. Please check out the following link: http://www.silicondragonventures.com/events/events-2015/silicon-dragon-ny-2015/INNOVATION SPOTLIGHT: DIGITAL CURRENCIES Francesco Rulli, Founder, BitLanders & BitCharities Sarah Martin, VP, Digital Currency Council Alan Yong, Founder, DNotes Moderator: Porter Bibb, Managing Partner, MediaTech Capital This is likely to be their biggest event and DNotes is the digital currency being highlighted. Wall Street is hot on Bitcoin but also have doubts about Bitcoin gaining mass acceptance. Even though our budget is getting tight, we may decide to have a press release the week of June 15, 2915. Coming up with the right headline and developing the most appropriate content is a little challenging based on what I like to see, especially when I no longer have a long stretch of time when I can just focus in writing a persuasive and compelling article. Furthermore, we simply have too much to cover in one article. It’s amazing how much DNotes and its community have accomplished in just over a year. We can certainly use your help. Please comment and add to the PR based on my suggested out line below. For some prospective and reference, please Check out "Bitcoin In Search Of Purpose”: http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/A great press release will need to have an attention grabbing headline covering the following points: 1. Is the industry giving up on the "trustless" Bitcoin to ever gain mass acceptance? Everyone rushing to Blockchain. 2. Bitcoin may never fully recover from countless negative headlines and settled with limited purpose; as a speculative trading vehicle, failing to ever meet the full functions of money and gain mass acceptance. It is too costly to acquire, too volatile as a store of value and medium of exchange and stakeholders limited to certain groups. In contrast; DNotes 3. DNotes is the second generation Bitcoin alternative digital currency taking full advantage of the pioneer's innovation while avoiding their pitfalls, while creating a culture of mutual respect and co-operation for mutual benefits. 4. Branding: stability, trust, reliable long-term appreciation, currency value in line with fundamental value - no pump and dump. 5. Mass inclusion for mass acceptance: Must include women - CryptoMoms; For everyone - unborn and most senior, rich or poor. Family of CRISPs. 6. Currency with a purpose - global initiatives to help solve global problems; the unbanked and cross border currency remittance. Long term initiatives to grow next generation of leaders to solve global problems - CRISP For Students. 7. Own ecosystem with highly scaleable buildings block to expand rapidly on a global scale at the most opportune time. 8. Ease of use, secure and guarantee; DNotesVault 9. Conclusion: There should be little doubt that Bitcoin will be the greatest technology revolution in the history of mankind. Bitcoin as a currency is an integral part of the technology pack; powered by the Blockchain as the most innovative protocol of decentralized distributed consensus ledger. DNotes, designed from ground up with a purpose, as the stable trustworthy digital currency for everyone is destined to be the Digital Currency of The Future with Lasting Value. That is the currency with the highest potential for mass global acceptance. |
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I have closed my Asiacoin account at a loss a long time ago. Wish them the best, though. For now I am exclusively invested in DNotes, Bitcoin and Ripple. I am ahead in one out of three, not counting on seven others I have written off. |
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Mining for profit is a very risky game, it could take months or years to get back your investment, and a lot can change in that time. On top of that, you need to be careful about your purchases, as we have seen with some of the cloud mining services as well as some of the companies selling hardware for pre-order. Possible $500,000 Bitcoin Cloud Mining Ponzi Scheme UncoveredRoughly nine months ago, Bitcoin Foundation Chief Scientist Gavin Andresen made a rather interesting comment on Reddit in which he claimed, “I suspect many [cloud mining companies] will turn out to be Ponzi schemes.” [...] https://bitcoinmagazine.com/20702/exclusive-possible-500000-bitcoin-cloud-mining-ponzi-scheme-uncovered/As an IT professional, I'm going to offer some advise most people don't want to hear: STAY OUT OF THE "CLOUD"! There is no such thing, it's a marketing buzz word. Would you use "cloud" services for storing your data, pics, documents, etc if you knew the "cloud" you were connecting to was a basement in Cambodia with a drug lab upstairs and brothel next door? That's a "worst case" scenario but, you get my point right? You have no way to verify who runs it, who maintains it, where it is located and, most importantly, who has assess to the computers and storage drives that make up the infrastructure of any particular "cloud" operation. It boils down to this: No matter what kind of marketing comes with the offer, stay out of the "cloud"... Fair warning. |
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