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[DNotes]

Bitcoin Weekly Recap 4-1-2016

Cornell Institute Study on Block Size Scaling Yields Interesting Results
Excel 2016 to Support Bitcoin Format
Putin Advisor Calls Bitcoin a Virus
First Arab Bitcoin Community Launched: AskBitcoiner
Needham & Company Report: Bitcoin Considerably Undervalued
Coinkite Reveals Plans for Disposable Bitcoin Wallet

http://dcebrief.com/

[DNotes]

Something going on with the word b i t coin  on the forum. April fools joke?

[DNotes]

Lol, CoinDesk Struck By Blockchain Meltdown As Hard Fork Hits Website - almost forgot today was April fools day. The text randomly changing is fun to read.

[Chase]

Something going on with the word b i t coin  on the forum. April fools joke?

I was wondering what was up and forgot it was April 1st. I am usually the target of April Fools jokes starting at 3 or 4 in the morning (ha ha not funny), but managed to escape this year's joke. There is also a story out about Donald Trump building a big wall around all the banks to protect them from bitcoin - that's the best joke yet! 

[kanus1113]

uᴉoɔʇᴉq Weekly Recap 4-1-2016

Cornell Institute Study on Block Size Scaling Yields Interesting Results
Excel 2016 to Support uᴉoɔʇᴉq Format
Putin Advisor Calls uᴉoɔʇᴉq a Virus
First Arab uᴉoɔʇᴉq Community Launched: AskBitcoiner
Needham & Company Report: uᴉoɔʇᴉq Considerably Undervalued
Coinkite Reveals Plans for Disposable uᴉoɔʇᴉq Wallet

http://dcebrief.com/

Wow... It doesn't address all the issues raised, but still significant.

Cornell Institute Study on Block Size Scaling Yields Interesting Results

In a recent paper detailing a study from the Jacobs Technion-Cornell Institute’s Initiative for CryptoCurrencies and Contracts (IC3), researchers discovered that Bitcoin’s block size can be scaled to 4MB with no appreciable impact on its decentralization. Moreover, their tests concluded that this scaling would result in more than a tenfold increase in the number of transactions performed each second.

The study, On Scaling Decentralized Blockchains, documents a test of 4,000 nodes, and included monitoring of bandwidth performance measurements for each. The results found that fully 90% of those nodes remained operational with a 4MB block size, and that scaling increased the number of transactions performed each second from its current 2.5 transactions to roughly 27 each second.

The study also concluded that roughly half of those nodes were unfazed when the block size was increased to just short of 40MB, and about 10% remained operational at block sizes of 200MB.

[Dyna]

That is an interesting headline and certainly caught my attention. In my opinion, what the author proposed is far from being a viable solution even if the bank is interested in Bitcoin. A full-reserve banking scenario for a single bank is hard enough to pull off; for the entire banking system is but a dream. It is always easier to write about a concept than to actually make it happened.


“Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin.”


The Viability of Bitcoin In A Full-Reserve Banking Scenario

Posted on7:00 pm March 27, 2016 AuthorJP BuntinxCategoriesBitcoin, News, Opinion


Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Bitcoin is often referred to as being many things, ranging from a commodity to currency, and even a solution to solving all of the financial trouble in unbanked and underbanked regions. But very few people believe Bitcoin has the potential to change reserve banking altogether, allowing consumers to be no longer enslaved to the banking ecosystem. While there is serious doubt central bank-issued currency will ever disappear completely, Bitcoin could end up becoming a full-reserve banking solution.

Bitcoin is Financial Freedom
At its core, the Bitcoin protocol is designed to give consumers and business owners complete control over their finances at any given time. Although there is a lot of focus on the financial side of using Bitcoin technology, this point needs to be hammered until people understand Bitcoin is not just the technology, but it is a viable currency as well.

When getting involved in Bitcoin, the sole user is responsible for keeping their funds safe. There are no banks or governments involved, and this thought scares a lot of people. Up until this point, there has been a fair amount of handholding by these established financial players. However, everyone needs to remember banks and governments are the root cause of the financial trouble the entire world is in right now.

That being said, it is unlikely to see government-issued currencies going away anytime soon. Replacing the legacy systemand financial infrastructure all at once will be quite the challenge, even though a good amount of Bitcoin community members would like nothing more than for that to become a reality. However, there is a chance for both fiat currency and Bitcoin to complement each other, in a rather straightforward way.
Reforming Full-Reserve Banking
Reserve banking is an integral part of the fiat currency ecosystem and comes in two different forms. The version one Reddit user was interested in, is full-reserve banking. The way this principle works is by forcing banks to keep a portion of each depositor’s funds in cash, which can be withdrawn on demand. Some people may have noticed that depending on the amount of money they want to withdraw from an account, there is a waiting period involved.

Moreover, the funds deposited in these on-demand accounts would not be loaned by the bank to anyone else, as doing otherwise would be a violation of the legal requirements. It comes as no surprise to find out no country in the world requires full-reserve banking at this stage, despite monetary reforms advocating this change since back in 1935.

Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin. While they are exploring the boundaries of issuing their digital currencies in the future, they will not be suitable candidates for full-reserve banking. Bitcoin has many advantages, but it will take quite some time – if ever – until banks embrace this concept as part of the financial ecosystem.

Source:  http://www.newsbtc.com/2016/03/27/viability-bitcoin-full-reserve-banking-scenario/

[Bergman]

The new membership site is almost ready. Feel free to take a look and comment.

https://fourpillarsofbusinesssuccess.com/

The new site looks fantastic!!

The membership fee for the entire first year is only $1 - awesome!

All that hard work is about to pay off. 

Thanks Chase.

Yep, the first year we will be building content and creating value.

It's getting really close now! This will help launch DNotes into the next phase of it's progression.

Nice work Joe, REALLY nice work!

Thank you RJF!

By the way, in the book preview, there is a chapter by chapter summary on the site. It needs a touch of tweaking yet, but it should give anyone a good breakdown.

Affiliate Program
You can even earn money on referrals, simply by convincing others to purchase the book or membership plan. Since you are going to share the news with people you know anyway, we figure you might as well get paid for it too!

This is a great idea to spread the word and increase sales!

Getting close to launch date... 

Absolutely, there are plenty of affiliate marketers out there that I'm sure would love to promote the book as well.

Catching up on my favorite crypto.. Busy this week. The site looks very good. Keep up the great work.

[Bergman]

That is an interesting headline and certainly caught my attention. In my opinion, what the author proposed is far from being a viable solution even if the bank is interested in uᴉoɔʇᴉq. A full-reserve banking scenario for a single bank is hard enough to pull off; for the entire banking system is but a dream. It is always easier to write about a concept than to actually make it happened.


“uᴉoɔʇᴉq could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using uᴉoɔʇᴉq as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in uᴉoɔʇᴉq.”


The Viability of uᴉoɔʇᴉq In A Full-Reserve Banking Scenario

Posted on7:00 pm March 27, 2016 AuthorJP BuntinxCategoriesBitcoin, News, Opinion


uᴉoɔʇᴉq could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using uᴉoɔʇᴉq as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

uᴉoɔʇᴉq is often referred to as being many things, ranging from a commodity to currency, and even a solution to solving all of the financial trouble in unbanked and underbanked regions. But very few people believe uᴉoɔʇᴉq has the potential to change reserve banking altogether, allowing consumers to be no longer enslaved to the banking ecosystem. While there is serious doubt central bank-issued currency will ever disappear completely, uᴉoɔʇᴉq could end up becoming a full-reserve banking solution.

uᴉoɔʇᴉq is Financial Freedom
At its core, the uᴉoɔʇᴉq protocol is designed to give consumers and business owners complete control over their finances at any given time. Although there is a lot of focus on the financial side of using uᴉoɔʇᴉq technology, this point needs to be hammered until people understand uᴉoɔʇᴉq is not just the technology, but it is a viable currency as well.

When getting involved in uᴉoɔʇᴉq, the sole user is responsible for keeping their funds safe. There are no banks or governments involved, and this thought scares a lot of people. Up until this point, there has been a fair amount of handholding by these established financial players. However, everyone needs to remember banks and governments are the root cause of the financial trouble the entire world is in right now.

That being said, it is unlikely to see government-issued currencies going away anytime soon. Replacing the legacy systemand financial infrastructure all at once will be quite the challenge, even though a good amount of uᴉoɔʇᴉq community members would like nothing more than for that to become a reality. However, there is a chance for both fiat currency and uᴉoɔʇᴉq to complement each other, in a rather straightforward way.
Reforming Full-Reserve Banking
Reserve banking is an integral part of the fiat currency ecosystem and comes in two different forms. The version one Reddit user was interested in, is full-reserve banking. The way this principle works is by forcing banks to keep a portion of each depositor’s funds in cash, which can be withdrawn on demand. Some people may have noticed that depending on the amount of money they want to withdraw from an account, there is a waiting period involved.

Moreover, the funds deposited in these on-demand accounts would not be loaned by the bank to anyone else, as doing otherwise would be a violation of the legal requirements. It comes as no surprise to find out no country in the world requires full-reserve banking at this stage, despite monetary reforms advocating this change since back in 1935.

uᴉoɔʇᴉq could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using uᴉoɔʇᴉq as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in uᴉoɔʇᴉq. While they are exploring the boundaries of issuing their digital currencies in the future, they will not be suitable candidates for full-reserve banking. uᴉoɔʇᴉq has many advantages, but it will take quite some time – if ever – until banks embrace this concept as part of the financial ecosystem.

Source:  http://www.newsbtc.com/2016/03/27/viability-uᴉoɔʇᴉq-full-reserve-banking-scenario/

Agreed... Very unlikely scenario that the banks would be interested at this point.

[DNotes]

The new membership site is almost ready. Feel free to take a look and comment.

https://fourpillarsofbusinesssuccess.com/

The new site looks fantastic!!

The membership fee for the entire first year is only $1 - awesome!

All that hard work is about to pay off. 

Thanks Chase.

Yep, the first year we will be building content and creating value.

It's getting really close now! This will help launch DNotes into the next phase of it's progression.

Nice work Joe, REALLY nice work!

Thank you RJF!

By the way, in the book preview, there is a chapter by chapter summary on the site. It needs a touch of tweaking yet, but it should give anyone a good breakdown.

Affiliate Program
You can even earn money on referrals, simply by convincing others to purchase the book or membership plan. Since you are going to share the news with people you know anyway, we figure you might as well get paid for it too!

This is a great idea to spread the word and increase sales!

Getting close to launch date... 

Absolutely, there are plenty of affiliate marketers out there that I'm sure would love to promote the book as well.

Catching up on my favorite crypto.. Busy this week. The site looks very good. Keep up the great work.

Thanks Bergman! We are very anxious to get rolling.

[IMZ]

Something going on with the word b i t coin  on the forum. April fools joke?

I was wondering what was up and forgot it was April 1st. I am usually the target of April Fools jokes starting at 3 or 4 in the morning (ha ha not funny), but managed to escape this year's joke. There is also a story out about Donald Trump building a big wall around all the banks to protect them from uᴉoɔʇᴉq - that's the best joke yet! 

I've always delighted in the number of crypto sites whose spell-checks show 'Bitcoin' as an error.

[When I was a kid -- Smallville, Australia, 1967 -- the local radio station announced that a crocodile had been sighted in our local river. Dozens of families piled in to their station wagons to go check it out.]

Mark (IndiaMikeZulu), Australia

[DNotes]

Blockchain Weekly Recap 4-2-2016

Smart Contracts Firm Among Eight Startups Chosen for L’Atelier Accelerator
HyperLedger Inches Closer to Codebase Merge
Deloitte to Serve as Title Sponsor for Consensus 2016
French National Assembly Blockchain Conference Examines Blockchain Impact
SEC Currently Exploring Blockchain Regulation

http://dcebrief.com/blockchain-weekly-recap-4-2-2016/

[kanus1113]

Blockchain Weekly Recap 4-2-2016

Smart Contracts Firm Among Eight Startups Chosen for L’Atelier Accelerator
HyperLedger Inches Closer to Codebase Merge
Deloitte to Serve as Title Sponsor for Consensus 2016
French National Assembly Blockchain Conference Examines Blockchain Impact
SEC Currently Exploring Blockchain Regulation

http://dcebrief.com/blockchain-weekly-recap-4-2-2016/

The document on the SEC website, from what I can tell, is essentially saying they want to ensure investors aren't getting baited into investing in blockchain technologies over simply hype. Sounds like a good thing if we can reduce fraud in the blockchain industry, just hope that doesn't burden new technology innovation in the field.

[DNotes]

Intriguing article on Coindesk,  Forget How Blockchain Works, Talk About What It Does

The author basically made word clouds based on articles on Coindesk. I have noticed the shift in their content to blockchain over bitcoin, but this was a great visual to exactly how much. So here is what the author had to say.

A look at the numbers

To underscore this point, here's a word cloud generated by analyzing CoinDesk's articles published over the past month.

As an experiment, I decided to drill down and analyzed all the articles where blockchain was part of the title this March and repeated this process for March 2015.

Then, I found my first setback. No single article published on CoinDesk in March 2015 had blockchain in the title. The hottest FinTech technology of 2016 wasn't mentioned in a single headline a year ago.

To move forward, I analyzed the articles where blockchain was mentioned in the text.

Here are my results:

2015



2016

[Dyna]

Intriguing article on Coindesk,  Forget How Blockchain Works, Talk About What It Does

The author basically made word clouds based on articles on Coindesk. I have noticed the shift in their content to blockchain over bitcoin, but this was a great visual to exactly how much. So here is what the author had to say.

A look at the numbers

To underscore this point, here's a word cloud generated by analyzing CoinDesk's articles published over the past month.

As an experiment, I decided to drill down and analyzed all the articles where blockchain was part of the title this March and repeated this process for March 2015.

Then, I found my first setback. No single article published on CoinDesk in March 2015 had blockchain in the title. The hottest FinTech technology of 2016 wasn't mentioned in a single headline a year ago.

To move forward, I analyzed the articles where blockchain was mentioned in the text.

Here are my results:

2015



2016

Quite stunning.

[RJF19]

That is an interesting headline and certainly caught my attention. In my opinion, what the author proposed is far from being a viable solution even if the bank is interested in Bitcoin. A full-reserve banking scenario for a single bank is hard enough to pull off; for the entire banking system is but a dream. It is always easier to write about a concept than to actually make it happened.


“Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin.”


The Viability of Bitcoin In A Full-Reserve Banking Scenario

Posted on7:00 pm March 27, 2016 AuthorJP BuntinxCategoriesBitcoin, News, Opinion


Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Bitcoin is often referred to as being many things, ranging from a commodity to currency, and even a solution to solving all of the financial trouble in unbanked and underbanked regions. But very few people believe Bitcoin has the potential to change reserve banking altogether, allowing consumers to be no longer enslaved to the banking ecosystem. While there is serious doubt central bank-issued currency will ever disappear completely, Bitcoin could end up becoming a full-reserve banking solution.

Bitcoin is Financial Freedom
At its core, the Bitcoin protocol is designed to give consumers and business owners complete control over their finances at any given time. Although there is a lot of focus on the financial side of using Bitcoin technology, this point needs to be hammered until people understand Bitcoin is not just the technology, but it is a viable currency as well.

When getting involved in Bitcoin, the sole user is responsible for keeping their funds safe. There are no banks or governments involved, and this thought scares a lot of people. Up until this point, there has been a fair amount of handholding by these established financial players. However, everyone needs to remember banks and governments are the root cause of the financial trouble the entire world is in right now.

That being said, it is unlikely to see government-issued currencies going away anytime soon. Replacing the legacy systemand financial infrastructure all at once will be quite the challenge, even though a good amount of Bitcoin community members would like nothing more than for that to become a reality. However, there is a chance for both fiat currency and Bitcoin to complement each other, in a rather straightforward way.
Reforming Full-Reserve Banking
Reserve banking is an integral part of the fiat currency ecosystem and comes in two different forms. The version one Reddit user was interested in, is full-reserve banking. The way this principle works is by forcing banks to keep a portion of each depositor’s funds in cash, which can be withdrawn on demand. Some people may have noticed that depending on the amount of money they want to withdraw from an account, there is a waiting period involved.

Moreover, the funds deposited in these on-demand accounts would not be loaned by the bank to anyone else, as doing otherwise would be a violation of the legal requirements. It comes as no surprise to find out no country in the world requires full-reserve banking at this stage, despite monetary reforms advocating this change since back in 1935.

Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin. While they are exploring the boundaries of issuing their digital currencies in the future, they will not be suitable candidates for full-reserve banking. Bitcoin has many advantages, but it will take quite some time – if ever – until banks embrace this concept as part of the financial ecosystem.

Source:  http://www.newsbtc.com/2016/03/27/viability-bitcoin-full-reserve-banking-scenario/

The author is putting the cart before the horse like so many others are doing these days. If something like that ever happens, it will be way in the future. Some folks forget Bitcoin is not the fix all, do all, "manna from heaven" invention. Lets keep working on getting people to use it or, even know what it is before we expect it to solve all the world's problems....
 

[RJF19]

Intriguing article on Coindesk,  Forget How Blockchain Works, Talk About What It Does

The author basically made word clouds based on articles on Coindesk. I have noticed the shift in their content to blockchain over bitcoin, but this was a great visual to exactly how much. So here is what the author had to say.

A look at the numbers

To underscore this point, here's a word cloud generated by analyzing CoinDesk's articles published over the past month.

As an experiment, I decided to drill down and analyzed all the articles where blockchain was part of the title this March and repeated this process for March 2015.

Then, I found my first setback. No single article published on CoinDesk in March 2015 had blockchain in the title. The hottest FinTech technology of 2016 wasn't mentioned in a single headline a year ago.

To move forward, I analyzed the articles where blockchain was mentioned in the text.

Here are my results:

2015



2016

Quite stunning.

Evolution or, metamorphosis?  Or just the media showing their need to put the cart before the horse? We really need to complete the first task before we change the landscape and start on the next one...

[DNotes]

That is an interesting headline and certainly caught my attention. In my opinion, what the author proposed is far from being a viable solution even if the bank is interested in Bitcoin. A full-reserve banking scenario for a single bank is hard enough to pull off; for the entire banking system is but a dream. It is always easier to write about a concept than to actually make it happened.


“Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin.”


The Viability of Bitcoin In A Full-Reserve Banking Scenario

Posted on7:00 pm March 27, 2016 AuthorJP BuntinxCategoriesBitcoin, News, Opinion


Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Bitcoin is often referred to as being many things, ranging from a commodity to currency, and even a solution to solving all of the financial trouble in unbanked and underbanked regions. But very few people believe Bitcoin has the potential to change reserve banking altogether, allowing consumers to be no longer enslaved to the banking ecosystem. While there is serious doubt central bank-issued currency will ever disappear completely, Bitcoin could end up becoming a full-reserve banking solution.

Bitcoin is Financial Freedom
At its core, the Bitcoin protocol is designed to give consumers and business owners complete control over their finances at any given time. Although there is a lot of focus on the financial side of using Bitcoin technology, this point needs to be hammered until people understand Bitcoin is not just the technology, but it is a viable currency as well.

When getting involved in Bitcoin, the sole user is responsible for keeping their funds safe. There are no banks or governments involved, and this thought scares a lot of people. Up until this point, there has been a fair amount of handholding by these established financial players. However, everyone needs to remember banks and governments are the root cause of the financial trouble the entire world is in right now.

That being said, it is unlikely to see government-issued currencies going away anytime soon. Replacing the legacy systemand financial infrastructure all at once will be quite the challenge, even though a good amount of Bitcoin community members would like nothing more than for that to become a reality. However, there is a chance for both fiat currency and Bitcoin to complement each other, in a rather straightforward way.
Reforming Full-Reserve Banking
Reserve banking is an integral part of the fiat currency ecosystem and comes in two different forms. The version one Reddit user was interested in, is full-reserve banking. The way this principle works is by forcing banks to keep a portion of each depositor’s funds in cash, which can be withdrawn on demand. Some people may have noticed that depending on the amount of money they want to withdraw from an account, there is a waiting period involved.

Moreover, the funds deposited in these on-demand accounts would not be loaned by the bank to anyone else, as doing otherwise would be a violation of the legal requirements. It comes as no surprise to find out no country in the world requires full-reserve banking at this stage, despite monetary reforms advocating this change since back in 1935.

Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin. While they are exploring the boundaries of issuing their digital currencies in the future, they will not be suitable candidates for full-reserve banking. Bitcoin has many advantages, but it will take quite some time – if ever – until banks embrace this concept as part of the financial ecosystem.

Source:  http://www.newsbtc.com/2016/03/27/viability-bitcoin-full-reserve-banking-scenario/

The author is putting the cart before the horse like so many others are doing these days. If something like that ever happens, it will be way in the future. Some folks forget Bitcoin is not the fix all, do all, "manna from heaven" invention. Lets keep working on getting people to use it or, even know what it is before we expect it to solve all the world's problems....
 

You are right on RJF, there is a lot of work left to do to make digital currency mainstream.

[RJF19]

That is an interesting headline and certainly caught my attention. In my opinion, what the author proposed is far from being a viable solution even if the bank is interested in Bitcoin. A full-reserve banking scenario for a single bank is hard enough to pull off; for the entire banking system is but a dream. It is always easier to write about a concept than to actually make it happened.


“Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin.”


The Viability of Bitcoin In A Full-Reserve Banking Scenario

Posted on7:00 pm March 27, 2016 AuthorJP BuntinxCategoriesBitcoin, News, Opinion


Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Bitcoin is often referred to as being many things, ranging from a commodity to currency, and even a solution to solving all of the financial trouble in unbanked and underbanked regions. But very few people believe Bitcoin has the potential to change reserve banking altogether, allowing consumers to be no longer enslaved to the banking ecosystem. While there is serious doubt central bank-issued currency will ever disappear completely, Bitcoin could end up becoming a full-reserve banking solution.

Bitcoin is Financial Freedom
At its core, the Bitcoin protocol is designed to give consumers and business owners complete control over their finances at any given time. Although there is a lot of focus on the financial side of using Bitcoin technology, this point needs to be hammered until people understand Bitcoin is not just the technology, but it is a viable currency as well.

When getting involved in Bitcoin, the sole user is responsible for keeping their funds safe. There are no banks or governments involved, and this thought scares a lot of people. Up until this point, there has been a fair amount of handholding by these established financial players. However, everyone needs to remember banks and governments are the root cause of the financial trouble the entire world is in right now.

That being said, it is unlikely to see government-issued currencies going away anytime soon. Replacing the legacy systemand financial infrastructure all at once will be quite the challenge, even though a good amount of Bitcoin community members would like nothing more than for that to become a reality. However, there is a chance for both fiat currency and Bitcoin to complement each other, in a rather straightforward way.
Reforming Full-Reserve Banking
Reserve banking is an integral part of the fiat currency ecosystem and comes in two different forms. The version one Reddit user was interested in, is full-reserve banking. The way this principle works is by forcing banks to keep a portion of each depositor’s funds in cash, which can be withdrawn on demand. Some people may have noticed that depending on the amount of money they want to withdraw from an account, there is a waiting period involved.

Moreover, the funds deposited in these on-demand accounts would not be loaned by the bank to anyone else, as doing otherwise would be a violation of the legal requirements. It comes as no surprise to find out no country in the world requires full-reserve banking at this stage, despite monetary reforms advocating this change since back in 1935.

Bitcoin could be an interesting option to tackle full-reserve banking in the financial industry. The way this could work is by using Bitcoin as a hedge against banks, and assets could be accounted for on the blockchain. Transparency in full-reserve banking is of the essence, yet it is also one trait most banks are lacking right now.

Achieving this goal will be difficult, though, as banks have no apparent interest in Bitcoin. While they are exploring the boundaries of issuing their digital currencies in the future, they will not be suitable candidates for full-reserve banking. Bitcoin has many advantages, but it will take quite some time – if ever – until banks embrace this concept as part of the financial ecosystem.

Source:  http://www.newsbtc.com/2016/03/27/viability-bitcoin-full-reserve-banking-scenario/

The author is putting the cart before the horse like so many others are doing these days. If something like that ever happens, it will be way in the future. Some folks forget Bitcoin is not the fix all, do all, "manna from heaven" invention. Lets keep working on getting people to use it or, even know what it is before we expect it to solve all the world's problems....
 

You are right on RJF, there is a lot of work left to do to make digital currency mainstream.

Perhaps we should work on getting spell checkers to recognize "bitcoin" before we declare it's ready for the world banking system...  

[IMZ]

Admirable bit of research, Dnotes!

'No single article published on CoinDesk in March 2015 had blockchain in the title. The hottest FinTech technology of 2016 wasn't mentioned in a single headline a year ago.'

I recall that no altcoins received any mention on CoinDesk until long long after they should have.

Mark (IndiaMikeZulu), Australia

[Dyna]

The following article sheds some light on why the mainstream media has been mentioning Bitcoin far less frequently but almost exclusively on blockchain these days. 

At least for the time being, “For currency and as a financial rail, bitcoin is the only game in town," said Barry Silbert, founder and CEO of Digital Currency Group.”

And … “The Ethereum Foundation emphasizes on its website that ether is not meant to be competition to bitcoin, nor is it "intended to be used as or considered a currency, asset, share or anything else,"

If both statements are true, then the banks have nothing to fear. They can use blockchain technology to cut out the middle, cut employee counts, and continue with high banks fees on credit card charges and high interest credit card charges.

It will take a while but we would like to prove them wrong. Our core mission is to build DNotes as the trusted global digital currency to supplement fiat currency worldwide. I have no doubt that we will prevail to make DNotes to meet the full functions of money one day and subsequently become superior, in function, to fiat currency.


Wall Street and tech start to move past bitcoin

Everett Rosenfeld | @Ev_Rosenfeld
Friday, 1 Apr 2016 | 1:38 PM ET

Bitcoin, the revolutionary technological innovation, is becoming old hat.

Even while investors and regulators are paying much more attention (and more money) to the technological architecture underpinning the cryptocurrency, a funny thing is happening: Bitcoin, the very reason for that architecture, is often going completely unmentioned.

That's not to say that bitcoin is becoming less popular as a means of exchange or a store of value — it's price in U.S. dollars is hovering near a one-year high — but people are increasingly showing much more interest in other potential applications of secure distributed ledgers (also called blockchains), which have nothing to do with money.

It's that innovation — the blockchain — that allows for the bitcoin network's global functioning. It securely records information publicly, and concurrently hosts those records on separate computers. And while many have argued that a blockchain is fundamentally insecure without bitcoin's diverse network participants incentivized by monetary reward, not everyone agrees.

"For currency and as a financial rail, bitcoin is the only game in town," said Barry Silbert, founder and CEO of Digital Currency Group, which oversees 68 companies in the virtual currency and associated technologies space. "But as a ledger, I think that most of the efforts underway by the banks are using permissioned or federated blockchain solutions."

Read More:  Source: http://www.cnbc.com/2016/04/01/wall-street-and-tech-start-to-move-past-bitcoin.html