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Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond: The Innovative Investor's Guide to Bitcoin and Beyond by Chris Burniske, Jack Tatar
Airbnb, altcoin, asset allocation, asset-backed security, autonomous vehicles, bitcoin, blockchain, Blythe Masters, business cycle, business process, buy and hold, capital controls, Carmen Reinhart, Clayton Christensen, clean water, cloud computing, collateralized debt obligation, commoditize, correlation coefficient, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, cryptocurrency, disintermediation, distributed ledger, diversification, diversified portfolio, Donald Trump, Elon Musk, en.wikipedia.org, Ethereum, ethereum blockchain, fiat currency, financial innovation, fixed income, George Gilder, Google Hangouts, high net worth, Jeff Bezos, Kenneth Rogoff, Kickstarter, Leonard Kleinrock, litecoin, Marc Andreessen, Mark Zuckerberg, market bubble, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, Network effects, packet switching, passive investing, peer-to-peer, peer-to-peer lending, Peter Thiel, pets.com, Ponzi scheme, prediction markets, quantitative easing, RAND corporation, random walk, Renaissance Technologies, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, Ross Ulbricht, Satoshi Nakamoto, Sharpe ratio, Silicon Valley, Simon Singh, Skype, smart contracts, social web, South Sea Bubble, Steve Jobs, transaction costs, tulip mania, Turing complete, Uber for X, Vanguard fund, WikiLeaks, Y2K
To gain a .bit site, one must have namecoin to do so, thus the need for the native asset. Litecoin While a handful of altcoins were released through 2011, Litecoin was the first that would retain significant value to this day. The cryptocurrency was developed by Charlie Lee, an MIT graduate who was a software engineer at Google. When Lee learned of Bitcoin he quickly understood its power, leading him to mine bitcoin before trying to create his own variants. After the unsuccessful launch of Fairbrix in September 2011, Lee tried again with Litecoin in October.18 Litecoin aimed to improve upon Bitcoin in two ways. For one, Litecoin’s block times were 2.5 minutes, four times faster than Bitcoin’s, which would be important for merchants needing faster confirmation of consumer’s payments. Second, Litecoin used a different hash function in the proof-of-work process—also known as a block hashing algorithm—which tried to make the mining process more accessible to hobbyists.
Figure 4.3 The comparative supply schedules of Litecoin and Bitcoin It’s important to realize that if bitcoin and litecoin are both being used in similar size markets and therefore have the same size network values, a unit of litecoin will be one-fourth as valuable as a unit of bitcoin because there are four times as many units outstanding. This is an important lesson, because all cryptocurrencies differ in their supply schedules, and thus the direct price of each cryptoasset should not be compared if trying to ascertain the appreciation potential of the asset. Litecoin’s network is often used as a testing ground for Bitcoin software updates, given that Litecoin is nimbler than Bitcoin because it stores a fraction of the monetary value. It has also been used as the basis for other cryptoassets. At the start of 2017, litecoin was the fourth largest cryptoasset in terms of network value.20 Ripple Ripple is a cryptocurrency created in 2004 by Ryan Fugger, a web developer from Vancouver, British Columbia.
Lee wanted a coin that retained its peer-to-peer roots and allowed users to be miners without the need for specialized and expensive mining units. Litecoin accomplished this by using a block hashing algorithm called scrypt, which is memory intensive and harder for specialized chips like ASICs to gain a significant edge upon. Other than these two tweaks, much of Litecoin remained similar to Bitcoin. The innovative investor will have realized, however, that if blocks are issued four times as fast as bitcoin, then the total amount of litecoin released will be four times greater than that of bitcoin. This is exactly the case, as litecoin will converge upon a fixed 84 million units, whereas bitcoin will converge upon a quarter of that, at 21 million units.19 Lee tweaked the halving characteristics, too, so that a halving occurs at 840,000 blocks, as opposed to bitcoin’s 210,000. As Figure 4.3 shows, this puts litecoin on a similar yet larger supply trajectory than bitcoin.
The Bitcoin Guidebook: How to Obtain, Invest, and Spend the World's First Decentralized Cryptocurrency by Ian Demartino
3D printing, AltaVista, altcoin, bitcoin, blockchain, buy low sell high, capital controls, cloud computing, corporate governance, crowdsourcing, cryptocurrency, distributed ledger, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, fiat currency, Firefox, forensic accounting, global village, GnuPG, Google Earth, Haight Ashbury, Jacob Appelbaum, Kevin Kelly, Kickstarter, litecoin, M-Pesa, Marc Andreessen, Marshall McLuhan, Oculus Rift, peer-to-peer, peer-to-peer lending, Ponzi scheme, prediction markets, QR code, ransomware, Ross Ulbricht, Satoshi Nakamoto, self-driving car, Skype, smart contracts, Steven Levy, the medium is the message, underbanked, WikiLeaks, Zimmermann PGP
Given the status of Coinbase as a payment processor and a bridge to the fiat world, adoption by Coinbase would be extremely beneficial to Litecoin. Other than the Charlie Lee connection, however, there are currently no indications that Coinbase will ever accept Litecoin. From a technical standpoint, Litecoin is faster than Bitcoin. With the same block size as Bitcoin and a much shorter block time, the network is capable of performing more transactions per second than Bitcoin in its current form. Bitcoin’s block size isn’t set in stone and there is an ongoing debate over changing the size of the blocks, but for now, Litecoin remains faster. Recently, Litecoin started merge mining (i.e., mining two coins with the same algorithm at the same time) with Dogecoin. Both coins use Scrypt, so hashrates can be put toward both coins simultaneously. There was no downside for Litecoin miners and the merge helped secure the Dogecoin network by bringing Litecoin miners onto it.
Dogecoin had gained a large overall market cap and with its hashrate quickly dropping, a 51% attack became a real possibility. The solution came by way of Litecoin. After much discussion in both communities, Litecoin decided to enable merged mining with Dogecoin. Despite the exceedingly small rewards available on the Dogecoin network, Litecoin miners still benefited from this decision. Since they use the same algorithm, both coins can be mined simultaneously without a decrease in mining of either.5 What this did was enable Dogecoin’s network to be secured by Litecoin’s miners, and anyone looking to force a double-spend through a 51% attack would have to match both the Litecoin network’s hashrate and that of Dogecoin. Afterward, merge mining became a popular feature in a lot of smaller cryptocurrencies. Dogecoin isn’t the future of Internet currency, as even its most adamant supporters admit.
The idea was to use a CPU-minded algorithm with the intention of bringing mining back to home computers and away from specifically designed hardware. For a while, it worked. Litecoin was and remains a more viable mining option for those looking to mine at home. It has, however, run into the same problems as Bitcoin, and mining at home is not recommended, though it remains far more feasible than mining Bitcoin. ASICs designed to mine Scrypt were eventually released and as Litecoin became more popular, its difficulty followed a curve similar to that of Bitcoin. Even with its price dropping over the past few years, Litecoin’s difficulty has continued to rise, and mining profitability is razor-thin even with cutting-edge hardware. Mining on a home computer is more likely to damage your hardware than net you any Litecoin. That said, if one has free or extremely cheap electricity, some home mining is possible.
Mastering Blockchain, Second Edition by Imran Bashir
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As is the case with bitcoin PoW, in Scrypt also if the output hash is less than the target hash (already passed as input at the start, stored in memory, and checked with every iteration) then the function terminates; otherwise, the nonce is incremented and the process is repeated again until a hash is found that is lower than the difficulty target. Scrypt ASIC design simplified flowchart Trading litecoin: As with other coins, trading litecoin is easily carried out on various online exchanges. The current market cap of litecoin is $10,448,974,615. The current price (as of March, 2018) of litecoin is $188.04/LTC. Mining: Litecoin mining can be carried out solo or in pools. At the moment, ASICs for Scrypt are available that are commonly used to mine Litecoin. Litecoin mining on a CPU is no longer profitable as is the case with many other digital currencies now. There are online cloud mining providers and ASIC miners available that can be used to mine Litecoin. Litecoin mining started from the CPU, progressed through GPU mining rigs, and eventually now has reached a point where specialized ASIC miners, such as ASIC Scrypt Miner Wolf are available from Ehsminer are now required to be used in the hope of being able to make some coins.
Generally, it is true that even with ASICs it is better to mine in pools instead of solo as solo mining is not as profitable as mining in pools due to the proportional rewards scheme used by mining pools. These miners are capable of producing a hashing rate of 2 Gh/s for Scrypt algorithms. Software source code and wallet: The source code for litecoin is available at https://github.com/litecoin-project/litecoin. The Litecoin wallet can be downloaded from https://litecoin.org/ and can be used just like the Bitcoin core client software. Primecoin Primecoin is the first digital currency on the market that introduced a useful PoW, as opposed to Bitcoin's SHA256-based PoW. Primecoin uses searching prime numbers as a PoW. Not all types of prime number meet the requirements to be selected as PoW. Three types of prime numbers (known as Cunningham chain of the first kind, Cunningham chain of the second kind, and bi-twin chains) meet the requirements of a PoW algorithm to be used in cryptocurrencies.
The name is entered and, after the Submit button is pressed, it will ask for configuration information such as DNS, IP, or identity: Namecoin wallet: domain name configuration As shown in the following screenshot, masteringblockchain will register as masteringblockchain.bit on the Namecoin blockchain: Namecoin wallet: showing registered name Litecoin Litecoin is a fork of the bitcoin source code released in 2011. It uses Scrypt as PoW, originally introduced in the Tenebrix coin. Litecoin allows for faster transactions as compared to bitcoin due to its faster block generation time of 2.5 minutes. Also, difficulty readjustment is achieved every 3.5 days roughly due to faster block generation time. The total coin supply is 84 million. Scrypt is a sequentially memory hard function that is the first alternative to the SHA-256-based PoW algorithm.
Blockchain: Blueprint for a New Economy by Melanie Swan
23andMe, Airbnb, altcoin, Amazon Web Services, asset allocation, banking crisis, basic income, bioinformatics, bitcoin, blockchain, capital controls, cellular automata, central bank independence, clean water, cloud computing, collaborative editing, Conway's Game of Life, crowdsourcing, cryptocurrency, disintermediation, Edward Snowden, en.wikipedia.org, Ethereum, ethereum blockchain, fault tolerance, fiat currency, financial innovation, Firefox, friendly AI, Hernando de Soto, intangible asset, Internet Archive, Internet of things, Khan Academy, Kickstarter, lifelogging, litecoin, Lyft, M-Pesa, microbiome, Network effects, new economy, peer-to-peer, peer-to-peer lending, peer-to-peer model, personalized medicine, post scarcity, prediction markets, QR code, ride hailing / ride sharing, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, SETI@home, sharing economy, Skype, smart cities, smart contracts, smart grid, software as a service, technological singularity, Turing complete, uber lyft, unbanked and underbanked, underbanked, web application, WikiLeaks
There are hundreds of cryptocurrencies, of which Bitcoin is the first and largest. Others include Litecoin, Dogecoin, Ripple, NXT, and Peercoin; the major alt-currencies can be tracked at http://coinmarketcap.com/. Table 1-1. Layers in the technology stack of the Bitcoin blockchain Cryptocurrency: Bitcoin (BTC), Litecoin, Dogecoin Bitcoin protocol and client: Software programs that conduct transactions Bitcoin blockchain: Underlying decentralized ledger The key point is that these three layers are the general structure of any modern cryptocurrency: blockchain, protocol, and currency. Each coin is typically both a currency and a protocol, and it may have its own blockchain or may run on the Bitcoin blockchain. For example, the Litecoin currency runs on the Litecoin protocol, which runs on the Litecoin blockchain. (Litecoin is very slightly adapted from Bitcoin to improve on a few features.)
The concept and operational details are described in a concise and readable white paper, “Bitcoin: A Peer-to-Peer Electronic Cash System.”7 Payments using the decentralized virtual currency are recorded in a public ledger that is stored on many—potentially all—Bitcoin users’ computers, and continuously viewable on the Internet. Bitcoin is the first and largest decentralized cryptocurrency. There are hundreds of other “altcoin” (alternative coin) cryptocurrencies, like Litecoin and Dogecoin, but Bitcoin comprises 90 percent of the market capitalization of all cryptocurrencies and is the de facto standard. Bitcoin is pseudonymous (not anonymous) in the sense that public key addresses (27–32 alphanumeric character strings; similar in function to an email address) are used to send and receive Bitcoins and record transactions, as opposed to personally identifying information.
KeyID, rebranded from Keyhotee, provides an identification and email system on a decentralized blockchain for secure messaging and for secure authentication.81 Freedom of Speech/Anti-Censorship Applications: Alexandria and Ostel Alexandria is one example of a blockchain-based freedom-of-speech-promoting project. It aims to create an unalterable historical record by encoding Twitter feeds to a blockchain. Any tweets mentioning certain prespecified keywords (like Ukraine or ebola) are encoded into the Alexandria blockchain using Florincoin, a cryptocurrency based on Bitcoin and Litecoin with quick transaction processing (40 seconds) and a longer memo annotation field (conceptually: Memocoin). This method captures tweets that might be censored out later by takedown requests.82 Florincoin’s key enabling feature for this is transaction comments, a 528-character field for the recording of both metadata and tweet content.83 The expanded commenting functionality could be used more broadly for many kinds of blockchain applications, such as providing metadata and secure pointers to genomic sequences or X-ray files.
The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order by Paul Vigna, Michael J. Casey
Airbnb, altcoin, bank run, banking crisis, bitcoin, blockchain, Bretton Woods, buy and hold, California gold rush, capital controls, carbon footprint, clean water, collaborative economy, collapse of Lehman Brothers, Columbine, Credit Default Swap, cryptocurrency, David Graeber, disintermediation, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, fiat currency, financial innovation, Firefox, Flash crash, Fractional reserve banking, hacker house, Hernando de Soto, high net worth, informal economy, intangible asset, Internet of things, inventory management, Joi Ito, Julian Assange, Kickstarter, Kuwabatake Sanjuro: assassination market, litecoin, Long Term Capital Management, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, money: store of value / unit of account / medium of exchange, Nelson Mandela, Network effects, new economy, new new economy, Nixon shock, offshore financial centre, payday loans, Pearl River Delta, peer-to-peer, peer-to-peer lending, pets.com, Ponzi scheme, prediction markets, price stability, profit motive, QR code, RAND corporation, regulatory arbitrage, rent-seeking, reserve currency, Robert Shiller, Robert Shiller, Ross Ulbricht, Satoshi Nakamoto, seigniorage, shareholder value, sharing economy, short selling, Silicon Valley, Silicon Valley startup, Skype, smart contracts, special drawing rights, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, supply-chain management, Ted Nelson, The Great Moderation, the market place, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, Turing complete, Tyler Cowen: Great Stagnation, Uber and Lyft, uber lyft, underbanked, WikiLeaks, Y Combinator, Y2K, zero-sum game, Zimmermann PGP
Nevertheless, the best altcoins are bringing an edgy and potentially constructive force of competition to bear in the whole cryptocurrency arena. Of these altcoins, litecoin, invented by Charlie Lee, is to date the most successful. Litecoin’s secret sauce is its use of a different algorithm in the hashing process that miners use to package transactions into the blockchain. Lee’s system still involves a competition among miners, but its hashing algorithm, known as scrypt, makes it easier for a miner to arrive at the sought-after block hash goal than does bitcoin’s SHA-256. Without delving into the complicated details of how it works, scrypt essentially tweaks the targets so that miners don’t simply gain an advantage by constantly building up brute computational power. The result is that mining power remains somewhat more evenly spread and more democratic with litecoin. Miners still have an incentive to chase coin rewards, but the arms race and the electricity usage aren’t as intense.
It also makes for faster turnarounds, with blocks completed within two and a half minutes, rather than bitcoin’s ten minutes, which in turn means the system’s wait for the final confirmation of transactions by customers and merchants isn’t as long. Litecoin’s main weakness is the corollary of its strength: because it’s cheaper to mine litecoins and because scrypt-based rigs can be used to mine other scrypt-based altcoins such as dogecoin, miners are less heavily invested in permanently working its blockchain. In theory, that could raise the risk of a 51 percent attack if enough of them aren’t online at any one time. Some also worry that scrypt-based mining is more insecure, with a less rigorous proof of work, in theory allowing false transactions to get through with incorrect confirmations. Thus far, however, litecoin has avoided major breakdowns. In time it could prove to be a more environmentally friendly, democratic contender to bitcoin.
Core bitcoin developer Jeff Garzik: See Daniel Cawrey, “Jeff Garzik Announces Partnership to Launch Bitcoin Satellites into Space,” CoinDesk, April 23, 2014, http://www.coindesk.com/jeff-garzik-announces-partnership-launch-bitcoin-satellites-space/; also see Catherine Bleish, “An Interview with Jeff Garzik, Bitcoin in Space,” Bitcoin Magazine, June 17, 2014, http://bitcoinmagazine.com/14069/interview-jeff-garzik-bitcoin-space/. Of these altcoins, litecoin: Litecoin explanations taken from various sources, including https://litecoin.org/. In the case of nextcoin: Nextcoin explanations taken from various sources, including http://nxt.org. “financial weapons of mass destruction,” as Warren Buffett called them: From 2002 Annual Report of Berkshire Hathaway Inc., edited excerpts, http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf. 7. Satoshi’s Mill Stanford would later donate land he owned: Stanford University, History of Stanford, http://www.stanford.edu/about/history/.
The Industries of the Future by Alec Ross
23andMe, 3D printing, Airbnb, algorithmic trading, AltaVista, Anne Wojcicki, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, bioinformatics, bitcoin, blockchain, Brian Krebs, British Empire, business intelligence, call centre, carbon footprint, cloud computing, collaborative consumption, connected car, corporate governance, Credit Default Swap, cryptocurrency, David Brooks, disintermediation, Dissolution of the Soviet Union, distributed ledger, Edward Glaeser, Edward Snowden, en.wikipedia.org, Erik Brynjolfsson, fiat currency, future of work, global supply chain, Google X / Alphabet X, industrial robot, Internet of things, invention of the printing press, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Joi Ito, Kickstarter, knowledge economy, knowledge worker, lifelogging, litecoin, M-Pesa, Marc Andreessen, Mark Zuckerberg, Mikhail Gorbachev, mobile money, money: store of value / unit of account / medium of exchange, Nelson Mandela, new economy, offshore financial centre, open economy, Parag Khanna, paypal mafia, peer-to-peer, peer-to-peer lending, personalized medicine, Peter Thiel, precision agriculture, pre–internet, RAND corporation, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Rubik’s Cube, Satoshi Nakamoto, selective serotonin reuptake inhibitor (SSRI), self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, social graph, software as a service, special economic zone, supply-chain management, supply-chain management software, technoutopianism, The Future of Employment, Travis Kalanick, underbanked, Vernor Vinge, Watson beat the top human players on Jeopardy!, women in the workforce, Y Combinator, young professional
One solution to electric costs and overheated computers is to mine in cold weather if there is a cheap power source for electricity. A British programmer decided to build his mine in Reykjanesbaer, Iceland, so his computers can run on geothermal and hydroelectric energy while being cooled by the arctic air. Litecoin markets itself as being more abundant and faster to mine than bitcoins. Charlie Lee, a former Google software engineer, designed Litecoin in his spare time and launched it in 2011 to complement Bitcoin. Lee said, “People like choices. You want to diversify your cryptocurrency investments.” He has described Litecoin as “silver to Bitcoin’s gold,” and he designed the Litecoin software to produce 84 million litecoins in comparison to Satoshi Nakamoto’s design for 21 million bitcoins. Lee also decided to use scrypt cryptography to reduce mining rates per unit down to 2.5 minutes in comparison to Bitcoin’s 10 minutes.
Charlie Lee, a former Google: Danny Bradbury, “Litecoin Founder Charles Lee on the Origins and Potential of the World’s Second Largest Cryptocurrency,” CoinDesk, July 23, 2013, http://www.coindesk.com/litecoin-founder-charles-lee-on-the-origins-and-potential-of-the-worlds-second-largest-cryptocurrency/. “People like choices”: Nathaniel Popper, “In Bitcoin’s Orbit: Rival Virtual Currencies Vie for Acceptance,” New York Times, November 24, 2013, http://dealbook.nytimes.com/2013/11/24/in-bitcoins-orbit-rival-virtual-currencies-vie-for-acceptance/. he designed the Litecoin: Robert McMillan, “Ex-Googler Gives the World a Better Bitcoin,” Wired, August 30, 2013, http://www.wired.com/2013/08/litecoin/. Lee also chose this: “What Is the Difference between Litecoin and Bitcoin?” CoinDesk, April 2, 2014, http://www.coindesk.com/information/comparing-litecoin-bitcoin/.
THE FUTURE OF CODED TRUST The lines of the debate extend beyond Bitcoin into the larger universe of digital currencies. There are now hundreds of other cryptocurrencies, including those with names as priceless as Darkcoin, CryptoMETH, BattleCoin, and PiggyCoin. Even with all these rivals, Bitcoin’s market capitalization remains well above the competition. In June 2015, it had a total valuation of $3.2 billion. Its two nearest competitors were Ripple (total value $256 million) and Litecoin ($71 million). Many of Bitcoin’s competitors seek to correct perceived shortcomings in Bitcoin itself, including its limited (and thus potentially deflationary) supply; its “irreversibility,” which does not allow for errors to be corrected; and even its negative environmental impact. Mining requires significant computing power, which in turn requires significant energy. Serious bitcoin miners can spend upward of $150,000 a day on electricity nearby.
Attack of the 50 Foot Blockchain: Bitcoin, Blockchain, Ethereum & Smart Contracts by David Gerard
altcoin, Amazon Web Services, augmented reality, Bernie Madoff, bitcoin, blockchain, Blythe Masters, Bretton Woods, clean water, cloud computing, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, cryptocurrency, distributed ledger, Ethereum, ethereum blockchain, Extropian, fiat currency, financial innovation, Firefox, Flash crash, Fractional reserve banking, index fund, Internet Archive, Internet of things, Kickstarter, litecoin, M-Pesa, margin call, Network effects, peer-to-peer, Peter Thiel, pets.com, Ponzi scheme, Potemkin village, prediction markets, quantitative easing, RAND corporation, ransomware, Ray Kurzweil, Ross Ulbricht, Ruby on Rails, Satoshi Nakamoto, short selling, Silicon Valley, Silicon Valley ideology, Singularitarianism, slashdot, smart contracts, South Sea Bubble, tulip mania, Turing complete, Turing machine, WikiLeaks
Trading is so thin in any crypto, even Bitcoin, that you could never realise a fraction of the number. If you want to compare interest and activity in crypto assets, you need to compare trading volumes, if you can find good numbers for those. Litecoin Litecoin is the “me too” coin. It hasn’t many interesting stories, but it was the most prominent altcoin before the first Bitcoin bubble burst; for a few years, sites like the Pirate Bay that accepted Bitcoin donations often also accepted Litecoin donations. It was marketed as “the silver to Bitcoin’s gold.” The main difference from Bitcoin is a different hash designed to be resistant to GPU mining (though ASICs eventually came out) and a shorter block time. Litecoin’s price went up with Bitcoin’s until 2013, the price crashed with Bitcoin’s, and during 2014 it declined from its peak of $42 (spot prices of $68 on some exchanges) to $1.50.
Chapter 7: Spending bitcoins in 2017 Bitcoin is full: the transaction clog Bitcoin for drugs: welcome to the darknet Ransomware Non-illegal goods and services Case study: Individual Pubs Chapter 8: Trading bitcoins in 2017: the second crypto bubble How to get bitcoins From the first bubble to the second Bitfinex: the hack, the bank block and the second bubble Chapter 9: Altcoins Litecoin Dogecoin Ethereum Buterin’s quantum quest ICOs: magic beans and bubble machines Chapter 10: Smart contracts, stupid humans Dr. Strangelove, but on the blockchain So who wants smart contracts, anyway? Legal code is not computer code The oracle problem: garbage in, garbage out Immutability: make your mistakes unfixable Immutability: the enemy of good software engineering Ethereum smart contracts in practice The DAO: the steadfast iron will of unstoppable code Chapter 11: Business bafflegab, but on the Blockchain What can Blockchain do for me?
When the economy collapses, Bitcoin will save you! No, really: there are Bitcoin advocates who seriously look forward to economic collapse as an opportunity for Bitcoin – continued availability of high powered computing machinery, mining chip foundries, fast Internet and electricity presumably being absolutely assured in the grim meathook Mad Max petrolpunk future. (And we can use colloidal Litecoin for antibiotics.48) Even lesser crises get them all excited. Nick Szabo wrote up how to fix the Greek financial crisis of 2015 with Bitcoin.49 Someone responded to the Cyprus financial crisis of 2013 (which did include the much-feared government haircut of bank account deposits over the insured €100,000) with a house music anthem about “the blockchain.”50 You can use Bitcoin to buy drugs on the Internet!
Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money by Nathaniel Popper
4chan, Airbnb, Apple's 1984 Super Bowl advert, banking crisis, Ben Horowitz, bitcoin, blockchain, Burning Man, buy and hold, capital controls, Colonization of Mars, crowdsourcing, cryptocurrency, David Graeber, Edward Snowden, Elon Musk, Extropian, fiat currency, Fractional reserve banking, Jeff Bezos, Julian Assange, Kickstarter, life extension, litecoin, lone genius, M-Pesa, Marc Andreessen, Mark Zuckerberg, Occupy movement, peer-to-peer, peer-to-peer lending, Peter Thiel, Ponzi scheme, price stability, QR code, Ross Ulbricht, Satoshi Nakamoto, Silicon Valley, Simon Singh, Skype, slashdot, smart contracts, Startup school, stealth mode startup, the payments system, transaction costs, tulip mania, WikiLeaks
Bobby showed up at the company’s makeshift offices in a converted three-bedroom apartment a day after the company announced the $25 million investment from Andreessen Horowitz. Charlie Lee didn’t need to work another day of his life. Litecoin, his alternative cryptocurrency, which was a slightly faster, lightweight version of Bitcoin, had now become the second-most-popular cryptocurrency in what was becoming an increasingly crowded field of Bitcoin knockoffs. In part because of Charlie’s transparency in launching Litecoin, people trusted it and were betting that it would be, as Charlie had intended, the silver to Bitcoin’s gold. In November the value of all the outstanding Litecoins had briefly surpassed $1 billion. The particular computer chips that were good for mining Litecoins were sold out at nearly every online electronics retailer. Charlie had been mining Litecoins since the beginning, so he owned a sizable number of the coins, along with his significant Bitcoin holdings.
Bobby Lee, who generally wore the same khaki pants and blue dress shirt day in and day out, alternated between flawless English and imperfect Shanghainese as he explained his vision for Bitcoin’s potential in the world’s most populous nation. WHEN BOBBY LEE had first reached out to the founders of BTC China in February 2013, he was much less well known in the Bitcoin world than his younger brother, Charlie Lee, the California-based Google engineer who had been involved in Bitcoin since 2011 and who was perhaps best known as the creator of Litecoin, one of the most successful alternative virtual currencies. It was Charlie who had pushed Bobby, and the rest of his family, to first look at Bitcoin back in 2011. Bobby had a natural interest for the same reasons as his brother. The two men, who grew up sharing a bedroom, had both studied computer science, Charlie at MIT, Bobby at Stanford. Perhaps more important, both grew up in the Ivory Coast as the children of Chinese immigrants who had escaped the communist revolution with only the wealth they had stored in gold.
Krugman focused largely on Bitcoin’s claim to be a currency, given the difficulty it seemed to have fulfilling one of the basic roles of money: serving as a reliable store of value. Why would people store their wealth in Bitcoin if they knew the value was going to fluctuate so violently? Krugman asked. Cowen, meanwhile, argued that Bitcoin was going to have difficulty sustaining its value as new and better-designed cryptocurrencies came along and drew users away from it. Some people were, indeed, already choosing to hold Litecoin, Charlie Lee’s creation, and a hip, younger cryptocurrency, Dogecoin. But a deeper strain lurking beneath these critiques was an awareness that one of the fundamental premises that had driven Bitcoin’s popularity seemed, increasingly, to have been disproved. Many early Bitcoiners, particularly in the libertarian camp, had believed that the Federal Reserve’s efforts to stimulate the economy in the wake of the financial crisis, by pumping lots of new money into banks, would devalue the dollar and lead to high inflation, similar to what had happened in Argentina.
Sabotage: The Financial System's Nasty Business by Anastasia Nesvetailova, Ronen Palan
algorithmic trading, bank run, banking crisis, barriers to entry, Basel III, Bernie Sanders, big-box store, bitcoin, Black-Scholes formula, blockchain, Blythe Masters, bonus culture, Bretton Woods, business process, collateralized debt obligation, corporate raider, Credit Default Swap, credit default swaps / collateralized debt obligations, cryptocurrency, distributed ledger, diversification, Double Irish / Dutch Sandwich, en.wikipedia.org, Eugene Fama: efficient market hypothesis, financial innovation, financial intermediation, financial repression, fixed income, gig economy, Gordon Gekko, high net worth, Hyman Minsky, information asymmetry, interest rate derivative, interest rate swap, Joseph Schumpeter, Kenneth Arrow, litecoin, London Interbank Offered Rate, London Whale, Long Term Capital Management, margin call, market fundamentalism, mortgage debt, new economy, Northern Rock, offshore financial centre, Paul Samuelson, peer-to-peer lending, plutocrats, Plutocrats, Ponzi scheme, price mechanism, regulatory arbitrage, rent-seeking, reserve currency, Ross Ulbricht, shareholder value, short selling, smart contracts, sovereign wealth fund, Thorstein Veblen, too big to fail
., ‘Fintech’s security/access paradox problem’, Financial Times, 3 October 2016, https://ftalphaville.ft.com/2016/10/03/2176471/fintechs-securityaccess-paradox-problem. Kaminska, I., ‘Fintech as a gateway for criminal enterprise’, Financial Times, ‘Alphaville’, 12 January 2018, https://ftalphaville.ft.com/2018/01/12/2197610/fintech-as-a-gateway-for-criminal-enterprise. Katz, L., ‘Criminals may ditch Bitcoin for Litecoin, Dash, study says’, Bloomberg, 8 February 2018, https://www.bloomberg.com/news/articles/2018-02-08/criminals-are-ditching-bitcoin-for-litecoin-and-dash-study-says. Kay, J., Other People’s Money: Masters of the Universe or Servants of the People?, Profile Books, 2015. Kelly, K., ‘EC will scour Bear trading data’, Wall Street Journal, 28 May 2008, www.wsj.com/articles/SB121193543321324769. Kelly, K, Street Fighters: The Last 72 Hours of Bear Stearns, the Toughest Firm on Wall Street, Penguin Books, 2009.
Until 2013 the so-called Silk Road (DEF) was the primary e-commerce platform on the dark web. After its founder, Dread Pirate Roberts, or Ross Ulbricht, went down, it was succeeded by AlphaBay and many other dark marketplaces. Dread Pirate Roberts is now in prison serving a life sentence. The authorities still can’t get their hands on most of his bitcoins. 17. L. Katz, ‘Criminals may ditch bitcoin for Litecoin, Dash, study says’, Bloomberg, 8 February 2018, www.bloomberg.com/news/articles/2018-02-08/criminals-are-ditching-bitcoin-for-litecoin-and-dash-study-says. 18. Bateman, ‘Bitcoin might make tax havens obsolete’. 19. Ibid. 20. Conducted in January 2018. (Source: J. Wieczner, ‘Bitcoin investors aren’t paying their cryptocurrency taxes’, Fortune, 13 February 2018, http://fortune.com/2018/02/13/bitcoin-cryptocurrency-tax-taxes/). 21. Ibid. 22. Ibid. 23. Ibid. 24.
Serious crime, such as child pornography, and drugs and arms trading, are attracted to cryptocurrencies because of its efficiency, secrecy and speed. Petty crime, like selling medicine online or ghost-writing essays for inept students, also uses crypto for secrecy.16 Blockchain-based innovations have become the favourite method of payment in the criminal underworld. An Australian study estimated that about 47 per cent of transactions involving bitcoin are conducted on the darknet. Litecoin, the second-most-popular cryptocurrency preferred by Russians, is now accepted by nearly one-third of all dark-web vendors.17 The industry, of course, rejects any such claims. It gets worse. In a world where anyone can create money, crime groups have an interest in launching their own money transmission services and popularizing them as legitimate ‘fintech’ alternatives. As more and more jobs and services go off the official economic radar into the underground of the ‘gig’ economy, exchanging their skills for money, the more bitcoin and other cryptocurrencies offer a convenient way around the traditional income reporting demanded of employees and independent contractors.18 The authorities have taken steps to try and regulate the crypto world.
The Truth Machine: The Blockchain and the Future of Everything by Paul Vigna, Michael J. Casey
3D printing, additive manufacturing, Airbnb, altcoin, Amazon Web Services, barriers to entry, basic income, Berlin Wall, Bernie Madoff, bitcoin, blockchain, blood diamonds, Blythe Masters, business process, buy and hold, carbon footprint, cashless society, cloud computing, computer age, computerized trading, conceptual framework, Credit Default Swap, crowdsourcing, cryptocurrency, cyber-physical system, dematerialisation, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, failed state, fault tolerance, fiat currency, financial innovation, financial intermediation, global supply chain, Hernando de Soto, hive mind, informal economy, intangible asset, Internet of things, Joi Ito, Kickstarter, linked data, litecoin, longitudinal study, Lyft, M-Pesa, Marc Andreessen, market clearing, mobile money, money: store of value / unit of account / medium of exchange, Network effects, off grid, pets.com, prediction markets, pre–internet, price mechanism, profit maximization, profit motive, ransomware, rent-seeking, RFID, ride hailing / ride sharing, Ross Ulbricht, Satoshi Nakamoto, self-driving car, sharing economy, Silicon Valley, smart contracts, smart meter, Snapchat, social web, software is eating the world, supply-chain management, Ted Nelson, the market place, too big to fail, trade route, transaction costs, Travis Kalanick, Turing complete, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, universal basic income, web of trust, zero-sum game
Still, Tezos’s contribution to the development of more robust governance systems has been an important one. Every new idea will have shortcomings, yet, if developed by serious engineering teams, each idea can move the ball forward toward decentralization, functional governance, scalability, and privacy. This has been so with altcoins such as Litecoin, whose alternative approach to the proof-of-work algorithm showed that it was possible to stall the entrance of high-powered, industrial players into the mining network. Others—notably Vertcoin, discussed in chapter four—have improved on Litecoin’s model. Vertcoin has avoided Bitcoin’s unwelcome experience, in which the unrestrained competition for block rewards fostered a concentration of computation-heavy, electricity hungry mining operations. There are also various iterations of the so-called proof-of-stake algorithm, which sets a user’s right to validate transactions according to how many coins they hold.
The idea is to give no special advantage to those who own these expensive, single-purpose raw computation machines. This means that people running computers with relatively inexpensive graphic processing units, or GPUs, can successfully compete for a decent supply of coins and that a wider distribution of those tokens is possible. Eventually, chip designers tend to figure out how to make ASICs that overcome this resistance, as was the case with ASIC mining equipment that was specially designed to handle Litecoin’s s-crypt algorithm. But developers of Vertcoin have shown that it’s also possible to create a permanent commitment to ASIC-resistance by introducing something from the real, non-digital world of social organizations: a pact. If the platform’s governing principles include a pre-existing commitment from all users of the coin to accept a fork—a change to the code—that would add new, ASIC-resistant elements as soon as someone develops such a chip, the coin’s community can protect the distributed, democratic structure of a GPU-led mining network.
Bitcoin: The Future of Money? by Dominic Frisby
3D printing, altcoin, bank run, banking crisis, banks create money, barriers to entry, bitcoin, blockchain, capital controls, Chelsea Manning, cloud computing, computer age, cryptocurrency, disintermediation, Ethereum, ethereum blockchain, fiat currency, fixed income, friendly fire, game design, Isaac Newton, Julian Assange, land value tax, litecoin, M-Pesa, mobile money, money: store of value / unit of account / medium of exchange, Occupy movement, Peter Thiel, Ponzi scheme, prediction markets, price stability, QR code, quantitative easing, railway mania, Ronald Reagan, Ross Ulbricht, Satoshi Nakamoto, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, Stephen Hawking, Steve Jobs, Ted Nelson, too big to fail, transaction costs, Turing complete, War on Poverty, web application, WikiLeaks
He made himself enough money to buy a pukka New York pad, and an even more pukka bar, will only employ people if they drink or smoke weed with him, founded a $40 million company and now finds himself under house arrest on money-laundering charges related to the Silk Road. He’s still only 24. Shrem has never even met his business partner, Gareth Nelson. Nelson is an Asperger’s sufferer from Wrexham, who’s now worth millions. Olivier Janssens now flies from London to his new home in Monaco by private jet – paid for in bitcoins. On my hunt for amusing Bitcoin stories, one chap emailed me, saying: ‘I bought $8,000 worth of Litecoin at $2.30 back in June, and when Bitcoin skyrocketed to $1,240, Litecoin went to $52.00. I made $140,000, cashed out $70,000 and bought a new Range Rover. I now drive a Range Rover because of what people laugh at and call fake money.’ But with the failure of companies such as MtGox, you can bet there are many stories that are as disheartening as the above are amusing. The world of crypto-currencies (there are now over 300 altcoins) has attracted all sorts of crooks and fraudsters, as well as those who religiously think they are changing the world.
At $500 a coin, the market cap of Bitcoin stands at around $6.5 billion. All the other altcoins combined amount to about $350,000. Bitcoin has attracted all the publicity. Bitcoin has all the infrastructure and investment. For now Bitcoin dominates the space. But the altcoins may one day come to rival Bitcoin. Litecoin is said to be silver to Bitcoin’s gold. It has faster transaction time confirmation than Bitcoin, making it a better system of payment. It also claims its storage efficiency is better. Like Litecoin, Dogecoin also has faster transaction time confirmation. It is a more inflationary system – there is no limit to supply and it has a faster coin production schedule. Its primary use has been for online tipping and fundraising – you see something you like, you give them some dogecoins. Some coins have been developed which are more private and anonymous.
Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott
Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Blythe Masters, Bretton Woods, business process, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, commoditize, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, disruptive innovation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, Ethereum, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, information asymmetry, intangible asset, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, money market fund, Network effects, new economy, Oculus Rift, off grid, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, QR code, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social intelligence, social software, standardized shipping container, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, unorthodox policies, wealth creators, X Prize, Y2K, Zipcar
See First era of the Internet Internet Engineering Task Force (IETF), 271, 281, 299, 305 Internet Governance Forum (IGF), 300 Internet of Things (IoT), 3, 38, 146, 147–48, 152–55 economic payoffs, 161–64 future developments, 164–67 hacking your future, 168–69 public sector use of, 206–7 twelve disruptions, 156–61 Internet Society, 281, 300 Intrade, 84 Investing, in financial services, 62–63, 64 IPOs (initial public offerings), 82–84, 127, 180, 181 Iran, 13 Ito, Joichi, 246–49, 286, 289, 301 Jaques, Elliot, 106 Jennings, Eric, 147–48, 157, 162–63, 260 Jensen, Michael, 100, 108 Jive, 139 Jobanputra, Jalak, 287 Job killer, 270–71 JPMorgan Chase, 8, 43, 63 Jumpstart Our Business Startups Act, 82–83 Jurisdiction issues, 264 Justice system, 220–21, 223 Kahn, Bob, 281 Kahneman, Daniel, 279 Kaminska, Izabella, 78, 257–58, 266 Karpeles, Mark, 247 Kaye, David, 244 Kaye, Max, 216 Keating, Zoë, 21, 235–36, 237 Kessler, Sarah, 135 Keyless signature infrastructure (KSI), 199 Kidder, Tracy, 150 Kim, Joyce, 170–72, 177, 287 Kirby, Peter, 194 Knowledge networks, 300–301 Kulin, Haluk, 43, 46, 48, 178 Kurzweil, Ray, 336n Labor markets, 270–71 Land title registration, 8, 19–20, 51, 188–89, 193–95, 198 Larsen, Chris, 59, 67 Law enforcement, 286–87 Law profession, 102–3 Lawsky, Benjamin, 8, 287, 289–92 Leadership, 24, 281–309 framework for governance, 298–307 new agenda for next digital age, 307–9 the players, 283–89 regulation and, 289–93, 296–97 Lederman, Leon, 4–5 Ledger of Everything, 152 Ledger of Things, 145–69 economic payoffs, 161–64 evolution of computing, 150–52 future developments, 164–67 hacking your future, 168–69 Internet of Things, 152–55 power to the people, 146–50 twelve disruptions, 156–61 Legal disputes, 100, 105, 193, 219, 221 Legal frameworks, 264 Legal recourse, lack of, 258 Lending value, in financial services, 62, 64 Libertarianism, 199–200, 201, 327n Library of Congress, 133 Licensed exchanges, 291 Lightfoot, Gordon, 29 Lighthouse, 94 Lih, Andrew, 131 Lincoln, Abraham, 199 LinkedIn, 99 Linux, 12, 88, 129–30, 141, 282 Linux Foundation, 69, 285 Lipset, Seymour Martin, 201 Liquid democracy, 218–19 Liquidity, 256, 295 Litecoin, 257 Litecoin Association, 267 Literacy, 172, 195, 249 Live Nation, 229 Living standards, 172 Locally generated power, 148, 149–50 London School of Economics, 74 LO3 Energy, 148, 149 Lubin, Joseph, 15–16, 88–91, 112–13, 141, 177–78 Ludwin, Adam, 68 Lundkvist, Christian, 76 Lyft, 134, 164 MaidSafe, 95 Mainframes, 150 Malaysia Airlines Flight MH370, 213 Managers (management) ConsenSys, 89–91 public sector, 206–7 smart devices and IoT, 157, 159–60, 161 Manifesto for the Digital Age, 308–9 Manila, remittances, 182–83, 186 Manufacturing, 160, 174 Marketing, search costs, 97 Massive open online courses (MOOCs), 248–49 Masters, Blythe, 8, 63, 65, 66, 68, 73, 287, 289 McAdam, Cindy, 287 McKinsey, 156, 163–64, 169, 194 McLuhan, Marshall, 14 McWaters, Jesse, 66, 306 Meckling, William, 100 Medical records, 158 Medici, 83 Member ownership, 89–91 Members of a social network, 262 Mesh networks, 123, 146–47 Metaverse, 38 Metering economy, 135–36, 180, 233 MHITs, 50–51 Microblogging, 246 Microfinance, 56, 170–72, 191–92 current issues with, 191–92 inclusion design principle, 49–51 Nicaragua example, 170–72, 176 prosperity passport, 177, 178 Microgrids, 148–50 Micromonetizing, 180–81, 233 Microsoft, 4, 150, 270, 310 Microsoft Yammer, 139–40 Millennials, 174 Mi.Mu, 228 Miners, 30–32, 240–41, 260, 267, 268–69 Mining, 240–41, 259–60, 268–69 Mining rate, 38 MintPal, 266 MIT Bitcoin Project, 247 MIT Digital Currency Initiative, 247, 282, 284, 286, 301, 303, 305 MIT Media Lab, 27, 246–47, 286, 305 M-of-N signature, 104 Monegraph, 133 Monetary policy, 37–38, 56, 294–95, 309 Money laundering, 176, 275–76 Monks, Robert, 78 Monopolies, 57, 93–95 Moore’s law, 4, 51, 307–8 Moreira, Carlos, 11, 14, 15, 154, 204 Morgan, Pamela, 219, 287 Mornini, Tom, 73–74, 77 Morris, Gilbert, 173 Motion detectors, 254 Moving value, in financial services, 61, 64 M-Pesa, 176 Mt.
Clippinger, CEO, ID3, Research Scientist, MIT Media Lab Bram Cohen, Creator, BitTorrent Amy Cortese, Journalist, Founder, Locavest J-F Courville, Chief Operating Officer, RBC Wealth Management Patrick Deegan, CTO, Personal BlackBox Primavera De Filippi, Permanent Researcher, CNRS and Faculty Associate at the Berkman Center for Internet and Society at Harvard Law School Hernando de Soto, President, Institute for Liberty and Democracy Peronet Despeignes, Special Ops, Augur Jacob Dienelt, Blockchain Architect and CFO, itBit and Factom Joel Dietz, Swarm Corp Helen Disney, (formerly) Bitcoin Foundation Adam Draper, CEO and Founder, Boost VC Timothy Cook Draper, Venture Capitalist; Founder, Draper Fisher Jurvetson Andrew Dudley, Founder and CEO, Earth Observation Joshua Fairfield, Professor of Law, Washington and Lee University Grant Fondo, Partner, Securities Litigation and White Collar Defense Group, Privacy and Data Security Practice, Goodwin Procter LLP Brian Forde, Former Senior Adviser, The White House; Director, Digital Currency, MIT Media Lab Mike Gault, CEO, Guardtime George Gilder, Founder and Partner, Gilder Technology Fund Geoff Gordon, CEO, Vogogo Vinay Gupta, Release Coordinator, Ethereum James Hazard, Founder, Common Accord Imogen Heap, Grammy-Winning Musician and Songwriter Mike Hearn, Former Google Engineer, Vinumeris/Lighthouse Austin Hill, Cofounder and Chief Instigator, Blockstream Toomas Hendrik Ilves, President of Estonia Joichi Ito, Director, MIT Media Lab Eric Jennings, Cofounder and CEO, Filament Izabella Kaminska, Financial Reporter, Financial Times Paul Kemp-Robertson, Cofounder and Editorial Director, Contagious Communications Andrew Keys, Consensus Systems Joyce Kim, Executive Director, Stellar Development Foundation Peter Kirby, CEO and Cofounder, Factom Joey Krug, Core Developer, Augur Haluk Kulin, CEO, Personal BlackBox Chris Larsen, CEO, Ripple Labs Benjamin Lawsky, Former Superintendent of Financial Services for the State of New York; CEO, The Lawsky Group Charlie Lee, Creator, CTO; Former Engineering Manager, Litecoin Matthew Leibowitz, Partner, Plaza Ventures Vinny Lingham, CEO, Gyft Juan Llanos, EVP of Strategic Partnerships and Chief Transparency Officer, Bitreserve.org Joseph Lubin, CEO, Consensus Systems Adam Ludwin, Founder, Chain.com Christian Lundkvist, Balanc3 David McKay, President and Chief Executive Officer, RBC Janna McManus, Global PR Director, BitFury Mickey McManus, Maya Institute Jesse McWaters, Financial Innovation Specialist, World Economic Forum Blythe Masters, CEO, Digital Asset Holdings Alistair Mitchell, Managing Partner, Generation Ventures Carlos Moreira, Founder, Chairman, and CEO, WISeKey Tom Mornini, Founder and Customer Advocate, Subledger Ethan Nadelmann, Executive Director, Drug Policy Alliance Adam Nanjee, Head of Fintech Cluster, MaRS Daniel Neis, CEO and Cofounder, KOINA Kelly Olson, New Business Initiative, Intel Steve Omohundro, President, Self-Aware Systems Jim Orlando, Managing Director, OMERS Ventures Lawrence Orsini, Cofounder and Principal, LO3 Energy Paul Pacifico, CEO, Featured Artists Coalition Jose Pagliery, Staff Reporter, CNNMoney Stephen Pair, Cofounder and CEO, BitPay Inc.
Ten minutes is also too long for financial transactions where timing matters to get an asset at a particular price, and where latency exposes traders to time-based arbitrage weaknesses such as market timing attacks.6 The immediate solution for entrepreneurs has been to fork the bitcoin code base, that is, to modify the source code by tweaking a few parameters, and to launch a new blockchain with an altcoin in place of bitcoin as incentive to participate. Litecoin is a popular altcoin with a block time of 2.5 minutes, and Ripple and Ethereum are entirely reengineered blockchain platforms that have latency of seconds, not minutes. A sixth dimension is behavioral change in a deeper sense than Netiquette. Today, many people count on their bank or credit card company, even talking with a real person, when they make an accounting error, forget their passwords, or lose their wallets or checkbooks.
Silk Road by Eileen Ormsby
4chan, bitcoin, blockchain, Brian Krebs, corporate governance, cryptocurrency, Edward Snowden, fiat currency, Firefox, Julian Assange, litecoin, Mark Zuckerberg, Network effects, peer-to-peer, Ponzi scheme, profit motive, Right to Buy, Ross Ulbricht, Satoshi Nakamoto, stealth mode startup, Ted Nelson, trade route, Turing test, web application, WikiLeaks
I think in a year’s time the road will either adapt, or die.’ Instead of bitcoin, Atlantis initially accepted only litecoin, a new form of cryptocurrency. It was odd that the site didn’t accept bitcoin, which by now had become widely used not only on the black markets but increasingly for legitimate purposes. Small retailers, online stores, activist groups and charities were all hopping on board to accept bitcoin for payment for their goods and services and for donations. The decision to accept only litecoin led to some speculation that Atlantis had a vested interest in the alternative cryptocurrency. One of the founders fuelled that suspicion when they said, ‘Litecoin has a much smaller market share than bitcoin, so we needed to do something drastic to bring attention to the currency and to Atlantis as a way of jump starting the community.’
Bit by Bit: How P2P Is Freeing the World by Jeffrey Tucker
Affordable Care Act / Obamacare, Airbnb, airport security, altcoin, bank run, bitcoin, blockchain, business cycle, crowdsourcing, cryptocurrency, disintermediation, distributed ledger, Fractional reserve banking, George Gilder, Google Hangouts, informal economy, invisible hand, Kickstarter, litecoin, Lyft, obamacare, Occupy movement, peer-to-peer, peer-to-peer lending, QR code, ride hailing / ride sharing, Ross Ulbricht, Satoshi Nakamoto, sharing economy, Silicon Valley, Skype, TaskRabbit, the payments system, uber lyft
Or it could have been outright fraud. Or denial. Regardless, lawsuits are pending. What we can do now is be careful not to trust any institution fully. Security for your property is at a premium until the market shakes itself out. Question: What is Dogecoin? Tell me about it. Answer: It’s very cool, or maybe it is a silly fad. The market has to decide. Dogecoin is one of many currencies built on a Litecoin protocol, which in turn was built on bitcoin. There are tens of thousands of so-called altcoins in circulation today. This is market competition at work. They all live in their own ecosphere. May the best coin win! Question: How does the U.S. government classify BTC? Answer: The Treasury Department says bitcoin is property subject to taxation. FinCEN, a bureau of the U.S. Department of Treasury whose mission it is to safeguard the U.S. financial system, says it is a foreign currency subject to regulation.
Answer: As in any sector, there are scams, among which is “pump and dump,” meaning that developers release a coin, fuel the hype, and then sell it. Which ones are real and which ones are not is impossible to say. There are serious risks to such altcoins and it will be some time before the altcoin market becomes stable and reasonably disciplined by market forces. This is part of what happens in any startup technology. Question: Can you tell me about one or two popular altcoins? How are they different? Will they replace bitcoin? Answer: Litecoin is the second most popular cryptocurrency. It is based on a different algorithm from bitcoin, and it has an infinite inflation rate. Others include Namecoin, Dogecoin, Worldcoin, Peercoin, Primecoin, and Feathercoin. All have unique properties and some appeal to people for specific reasons. The Indian nation of Lakota, for example, uses its own coin called Mazacoin. 41 The cryptocurrency market is still in its infancy.
The Internet of Money by Andreas M. Antonopoulos
AltaVista, altcoin, bitcoin, blockchain, clean water, cognitive dissonance, cryptocurrency, disruptive innovation, Ethereum, ethereum blockchain, financial exclusion, global reserve currency, litecoin, London Interbank Offered Rate, Marc Andreessen, Oculus Rift, packet switching, peer-to-peer lending, Ponzi scheme, QR code, ransomware, reserve currency, Satoshi Nakamoto, self-driving car, Skype, smart contracts, the medium is the message, trade route, underbanked, WikiLeaks, zero-sum game
We’re probably going to see meta-currencies whose only purpose is to aggregate the value in all of our wallets for all of our currencies, and allow us to understand value as an abstraction that exists independently of the currencies in which it’s expressed. 7.6. Choosing Currencies and Communities So, that’s a slightly philosophical perspective. That’s why I think it doesn’t matter: Ether is not competing with bitcoin; bitcoin is not competing with Litecoin. They are all means to express the transactional modality we want to use at any point in time to achieve our goals. With this comes a very important and powerful tool. In the choices we make with these currencies, we are also choosing to align ourselves with a community. "Adoption is not simply the act of using the currency; it’s also attaching oneself to a community that has also chosen to adopt that currency."
Dumb Networks E economic activities, Primates and Money economic inclusion, Communications Expanding While Access to Banking Is Declining economics, Tragedy of the Commons electricity, Infrastructure for Natural Gas, From Natural Gas to Electricity elements, Bitcoin’s Atomic Structure email, Multiple Currencies Coexist, Alt Groups Will Destroy the Internet email attachments, Email and Email Attachments Will Destroy the Internet Ether, Choosing Currencies and Communities ethereum, Currency as a Language evolution, Currencies Evolve expression, Currency as a Means of Expression F fees, Bitcoin, the Invention, There Are No Spam Transactions in Bitcoin, Open Innovation and Opt-In Systems, Fee Optimization and Scaling, Spam Transactions, Legitimate Transactions, Illegitimate Transactions festival, Festival of the Commons festival of the commons, Dumb Networks, Innovation, and the Festival of the Commons financial exclusion, Dreaming of Totalitarian Control over All Financial Transactions financial inclusion, Predicting the Future for consumers, Open Innovation and Opt-In Systems freedom, Communications Expanding While Access to Banking Is Declining, Censorship of Financial Transactions, Bitcoin, the Zombie of Currencies, Banking Privilege and Surveillance G game theory, Open Innovation and Opt-In Systems geopolitics, Communications Expanding While Access to Banking Is Declining global, Money of the People, Solving Payment Problems global culture, Communications Expanding While Access to Banking Is Declining grand arc, Grand Arc of Technology H HD wallets, Festival of the Commons 2012-2014 hierarchy, Banking: Liberator to Limiter honeypot, Attacks Build Resistance I identity, Dreaming of Totalitarian Control over All Financial Transactions, Banking Privilege and Surveillance incentives, Open Innovation and Opt-In Systems inclusion, Money of the People, Banks for Everyone, Including 6.5 Billion People in a Global Economy, Banking Privilege and Surveillance incremental tech, Designing for Innovation index, Index Currency infrastructure inversion, Infrastructure Inversion, From Horses to Vehicles banking, From Banking to Bitcoin data, From Voice to Data electricity, From Natural Gas to Electricity paved roads, From Horses to Vehicles innovation, Recognizing Innovation, Open Innovation and Opt-In Systemsadoption, Infrastructure for Natural Gas asking permission, New Architecture, New Access automobiles, The Dangers of Automobiles, Electricity, and Bitcoin, New Technologies, Riding on Old Infrastructure banking, New Architecture, New Access, Open Innovation and Opt-In Systems, Festival of the Commons, Banking Privilege and Surveillance byob (be your own bank), Including 6.5 Billion People in a Global Economy cameras, Incumbent Reactions to Innovation competition, Infrastructure for Human Voices creativity, Building Blocks of Lego credit cards, Paper to Plastic crime, The Dangers of Automobiles, Electricity, and Bitcoin criticism, The Dangers of Automobiles, Electricity, and Bitcoin criticisms, Infrastructure for Horses, Infrastructure for Natural Gas disruptive tech, Designing for Innovation economic activities, Primates and Money electricity, Infrastructure for Natural Gas for consumers, Open Innovation and Opt-In Systems HD wallets, Festival of the Commons 2012-2014 incremental tech, Designing for Innovation infrastructure inversion, From Horses to Vehicles internet, UX and Society interstitial, Interstitial Innovation investment, Festival of the Commons 2012-2014 Linux, Incumbent Reactions to Innovation makers, Recognizing Innovation mash-up, Interstitial Innovation media, Infrastructure for Natural Gas modem, Infrastructure for Human Voices MP3, Incumbent Reactions to Innovation multisignature, Festival of the Commons 2012-2014 new medium, Separating the Medium and the Message open, Incumbent Reactions to Innovation paper money, Precious Metals to Paper permission, The Smart Network - Phones permissionless, Neutrality, Criminals, and Bitcoin, New Architecture, New Access, Bitcoin’s Dumb Network regulation, Predicting the Future tools for, Building Blocks of Creativity wallet, Fee Optimization and Scaling international finance, Money of the Peopleinternet, Bitcoin, the Invention, Neutrality, Criminals, and Bitcoin, New Architecture, New Access, The Dumb Network - Internet, UX and Society, Usenet Will Destroy the Internetprinting press, Authority by Production interstitial, Interstitial Innovationinvestment, Festival of the Commons 2012-2014 K keys, Master-Slave Architecture, Wallets aren’t wallets permission, Wallets aren’t wallets L language, How Old Is Money? lightning network, Building Blocks of Bitcoin Linux, Incumbent Reactions to Innovation Litecoin, Choosing Currencies and Communities M makers, Recognizing Innovation mash-up, Interstitial Innovation master-slave architecture, Master-Slave Architecture media, Infrastructure for Natural Gas medium message, Separating the Medium and the Message message, Separating the Medium and the Messagemeta-currencies, Index Currencymeta-instrument, Index Currencymeta-politics, Choosing Currencies and Communitiesmetaphors, Bitcoin and Designmicropayments, Solving Payment Problemsmicrotransactions, Solving Payment Problemsmodem, Infrastructure for Human Voicesmoney, Born into Currency, Valuing Currencies by Useabstract value, Barter to Precious Metals age of, How Old Is Money?
The Social Life of Money by Nigel Dodd
accounting loophole / creative accounting, bank run, banking crisis, banks create money, Bernie Madoff, bitcoin, blockchain, borderless world, Bretton Woods, BRICs, business cycle, capital controls, cashless society, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, commoditize, computer age, conceptual framework, credit crunch, cross-subsidies, David Graeber, debt deflation, dematerialisation, disintermediation, eurozone crisis, fiat currency, financial exclusion, financial innovation, Financial Instability Hypothesis, financial repression, floating exchange rates, Fractional reserve banking, German hyperinflation, Goldman Sachs: Vampire Squid, Hyman Minsky, illegal immigration, informal economy, interest rate swap, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, Kickstarter, Kula ring, laissez-faire capitalism, land reform, late capitalism, liberal capitalism, liquidity trap, litecoin, London Interbank Offered Rate, M-Pesa, Marshall McLuhan, means of production, mental accounting, microcredit, mobile money, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, negative equity, new economy, Nixon shock, Occupy movement, offshore financial centre, paradox of thrift, payday loans, Peace of Westphalia, peer-to-peer, peer-to-peer lending, Ponzi scheme, post scarcity, postnationalism / post nation state, predatory finance, price mechanism, price stability, quantitative easing, quantitative trading / quantitative ﬁnance, remote working, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Satoshi Nakamoto, Scientific racism, seigniorage, Skype, Slavoj Žižek, South Sea Bubble, sovereign wealth fund, special drawing rights, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, Veblen good, Wave and Pay, Westphalian system, WikiLeaks, Wolfgang Streeck, yield curve, zero-coupon bond
Some 36.7 percent of users do not drink, smoke, gamble, or take drugs, and more people have used Bitcoin for donations than for illegal transactions (see http://simulacrum.cc/2013/04/13/overview-of-bitcoin-community-survey-feb-mar-2013/). 39 Quoted in “The Bitcoin Boom,” The New Yorker, April 2, 2013, see http://www.newyorker.com/online/blogs/elements/2013/04/the-future-of-bitcoin.html. 40 There are several other alternatives to Bitcoin, such as Litecoin, Namecoin, PPCoin, and Dogecoin. As of January 2013, there were more than seventy digital currencies listed on http://coinmarketcap.com/. Each offers its own distinct variation on (and reputed advantage over) the Bitcoin theme. For example, Litecoin can be mined using consumer-grade hardware (see https://litecoin.org/), while PPCoin is designed to be more secure (see https://en.bitcoin.it/wiki/PPCoin). Dogecoin, using the Shiba Inu dog as its mascot, is based on Litecoin. In 2014, a new digital currency called Coinye West—the name is inspired by the rapper, Kanye West, although he has no direct links with the project—was due to be launched, reputedly for use in the music industry. 41 See http://freico.in/faq/. 42 For example, “For the 99% who live paycheck-to-paycheck, the loss from demurrage is minimal and would be compensated for in wages and pricing.
See also time banks; time dollars labor movement, 75 labor theory of value, 344 Lacan, Jacques, 40–41, 172n LaGuerre, Michel, 303 Landsberg, Paul-Louis, 172n language, economy of, 36; in Fromm, 332; and god, 35; as metaphor; 35–36; and money, 35–36, 37–38, 40, 47, 180, 185, 190; and referentiality, 77; and the social bond, 39 Lapavitsas, Costas, 78n Latour, Bruno, 292 Laum, Bernhard, 20n8, 25, 45, 112 law, 4, 17 Lazzarato, Maurizio, 160n8, 231n25 Lee, Benjamin, 62 Lehman Brothers, 1, 49, 50, 114, 116, 220 Leiris, Michel, 168, 172n leisure, 155 leisure class, 151 Lenin, Vladimir, 11, 51, 60, 66, 68; on Hilferding, 61; on money versus finance, 61 Leontief, Wassily, 117 leverage, 114, 116, 119–20 Lévi-Strauss, Claude, 172n Lewitzky, Anatole, 172n libertarianism, 21, 26, 72n, 105, 199, 293, 315n, 331, 360, 369n, 381, 382 LIBOR affair, 120 Lichtenberg, Georg Christoph, 145 Linden dollars, 292 Linton, Michael, 85 Linux Foundation, 369 LiPuma, Edward, 62, 296 liquidity, 4, 52n8, 116, 131n57, 264n, 287 liquidity crisis, 52n8 liquidity guarantee program, 127–28 liquidity premium, 125, 347, 348, 349 liquidity risk, 124 Lisbon Treaty, 265 Litecoin, 370n40 living currency, 203–4, 233, 342 local currency, 14, 105, 214, 286, 292, 293, 294, 315, 325, 360, 373; limited purpose nature of, 373 local exchange trading scheme (LETS), 84–87, 293, 316, 344, 345, 350, 360, 376, 381; and barter, 85, 86; defined, 84–85; origins of, 84 local trade, 325 Locke, John, 151, 219 logical positivism, 36n “Lord Keynes,” 368 Lotringer, Sylvère, 227 Louis XIV, 321 Lukács, György, 275n Luxemburg, Rosa, 11, 51, 64–65, 66, 67; on accumulation, 65, 68 luxury, 13 Lyotard, Jean-François, 39 Maastricht Treaty, 206n37, 253, 255, 263; convergence criteria, 253–54, 263–64 Mabile, Pierre, 172n Machiavelli, Niccolò, 246 MacKenzie, Donald, 200 Madoff, Bernard, 198 Magee, Bryan, 36n Malinowski, Bronislaw, 31, 32, 33 Malthus, Thomas, 65 mana, 31, 195; relationship to currency, 33 Mandeville, Bernard, Fable of the Bees, 347 Mann, Thomas, 247 Marazzi, Christian, 11, 72–78, 240–41, 246, 249; on bare life, 249–50, 266–67; on cognitive capitalism, 76; on finance, 249–50; on monetary terrorism, 75 Marcuse, Herbert, 149 marginal utility, 29 markets, 16; authority of, 220; as an axiomatic, 232; in Baudrillard, 196; and colonialism, 60; in food, 3; in Hardt and Negri, 241, 243–34; internal versus external, 65; and monetary governance, 21; and the origins of money, 18–19, 23, 24, 44, 95; in Polanyi, 279–81; and scarcity, 196; versus states, 247, 306–7; and symbolic exchange, 196 Marlowe, Christopher, 92 Marshall, Alfred, 276 Marshall, George, 206 Marshall Plan, 166, 206–7 Marx, Karl, 13, 66, 211, 213, 232, 238, 240, 271, 275, 276, 291, 295, 311, 332, 334, 351; on alienation, 273–74, 341; on banks, 50, 55, 56; on banknotes, 55; on barter, 53;Capital, 39, 49, 51, 56, 62, 63, 67, 80, 83, 147n, 236, 295, 361, 391; on capitalism, 59–60; on cash, 52, 54, 57, 58–59, 62, 66; The Communist Manifesto, 181; on compound interest, 147n; on the contradictions of capitalism, 72, 83; on the contradictions of money, 50, 51–55, 57, 61, 63, 71, 75, 80, 87, 273, 344, 347–48, 390; and credit crisis, 88, 133; on credit inflation, 56–57, 58, 61; on credit money versus the monetary base, 78–79; “The Critique of the Gotha Programme,” 84; on dead labor, 337; definition of money, 8, 11–12, 51n; on the destruction of capitalism, 146; The Economic and Philosophic Manuscripts of 1844, 56n, 181n8, 295, 334; on fictitious capital, 57n16; and the financial crisis, 49–51; on the functions of money, 51–52; on gold, 53, 58–59, 62–63, 79, 151; Grundrisse, 39n36, 51, 64, 80, 250, 273, 274, 344, 351; on hoarding, 52, 53–54, 58, 61, 67, 181, 274, 348; on labor money, 344–45; on the law of value, 61; and LETS, 85, 87; on money of account, 51n, 54; on money as fetish, 62; on the money form, 39, 51n, 52; on money and language, 34, 39n36; “On James Mill,” 273; On the Jewish Question, 274; on the origins of money, 52–53; The Poverty of Philosophy, 51, 53; on primitive accumulation, 63–66, 67, 98, 148, 222; on Proudhon, 53, 72, 84; on public debt, 147–48, 154; on religion, 340; on Ricardo, 59; and Simmel, 137; on Smith, 63 Masson, André, 169 MasterCard, 377, 380n mature money economy, 27, 137, 322, 330 Maurer, Bill, 8, 35, 296, 297, 378n50 Mauss, Marcel, 164, 198, 200, 267; and Bataille, 165; and Derrida, 165; The Gift, 31, 32, 167, 168, 195; on gift exchange, 31–34, 183, 188; on money, 32, 170; on the origins of money, 32–33; on religion, 167; on sacrifice, 167; Sacrifice: Its Nature and Function (with Hubert), 167; on sociology, 168 May, Timothy, 363 Mayer, Hans, 172n McCloskey, Deirdre, 38n34 McCulley, Paul, 119n39 McLuhan, Marshall, 194, 195 Mead, George Herbert, 319 measurement, 18, 24, 25, 28–29, 37, 39, 103n14, 112, 174, 194, 259, 274, 297, 302–3, 325, 343, 344, 345, 390; of culture, 138; of honor, 97; of humans, 97; of labor, 70; of money and time, 145; of moral worth, 91; of the quantity of money, 122n, 213; of value, 51, 52n8, 70, 71; of wealth, 71 Meltzer, Françoise, 184 memory bank, 308–9 Mencken, Henry Louis, 343n13 Menger, Carl, 17–23, 25, 26, 45, 47, 105n17, 236, 359, 362; definition of money, 18n5; and Simmel, 137 mental accounting, 290–91 Mephistopheles, 92 mercantilism, 66 Merrill Lynch, 114, 221 Mesopotamia, 95 Messianic time, 335, 338 metallism, 102, 383 Methodenstreit, 285 metropolis, 250 microcredit, 357–58 Midas, 153 migrant workers, 293 migration, 226, 240, 263, 293, 305 mimesis, 43–45; and financial panic, 77 minimum wage, 325, 382 Minsky, Hyman, 50, 58, 66, 108, 117–21, 124; on securitization, 120–21.
5 Day Weekend: Freedom to Make Your Life and Work Rich With Purpose by Nik Halik, Garrett B. Gunderson
Airbnb, bitcoin, Buckminster Fuller, business process, clean water, collaborative consumption, cryptocurrency, delayed gratification, diversified portfolio, en.wikipedia.org, estate planning, Ethereum, fear of failure, fiat currency, financial independence, glass ceiling, Grace Hopper, Home mortgage interest deduction, Isaac Newton, litecoin, Lyft, market fundamentalism, microcredit, minimum viable product, mortgage debt, mortgage tax deduction, Nelson Mandela, passive income, peer-to-peer, peer-to-peer rental, Ponzi scheme, quantitative easing, Ralph Waldo Emerson, ride hailing / ride sharing, sharing economy, side project, Skype, TaskRabbit, traveling salesman, uber lyft
They regulate themselves and are governed by the laws of mathematics. Cryptocurrencies make it easier to transfer funds between two parties in a transaction, and with minimal processing fees compared to the steep fees charged by most financial institutions. The adoption rate of cryptocurrencies is increasing daily with banks, corporations, and governments recognizing its mainstream popularity. The current leading cryptocurrencies are Bitcoin, Ethereum, Litecoin, Monero, Dash, and Ripple. A popular way to buy and sell cryptocurrencies and create your own digital currency “wallet” is to use a platform like Coinbase.com or Bittrex.com. Speculative investors should be aware there are risks involved in the investment and use of cryptocurrencies, such as fraud and security of the platforms. Cryptocurrencies can be electronically stolen, and there is no recourse for the individual.
Keohohou, Nicki Kets de Vries, Manfred keystone habits Kiyosaki, Robert Komisar, Randy Kroc, Ray L labor markets, technology’s transformation of Lavie, Peretz Lemony Snicket Lending Club leverage, and Cash Flow Insurance and content and creating greater returns and credit scores and current assets and entrepreneurship and real estate investments liabilities, and insurance vs. debt liberated entrepreneurs life boards, creating life insurance, combining with long-term care insurance as protective expense whole life insurance lifestyle, and cash flow cutting expenses of and freedom and Growth investment strategies and loan debt Linchpin (Godin) LinkedIn liquidity, and Cash Flow Insurance of checking and savings accounts and economic cycles and failure of conventional investments of Growth investments and real estate investments and reducing debt and tax lien certificates Litecoin “Live Like You Were Dying” (song) Living Wealthy Accounts LLCs loads, on mutual funds loans, and Cash Flow Index and credit scores and economic cycles for real estate investments restructuring from retirement plans against whole life insurance policies See also debt location, and real estate investments and storage unit construction Loehr, Jim long-term care insurance Loopnet Lyft, as entrepreneurial opportunity Lynch, Peter M Mackay, Harvey “mailbox money” myth maintenance, and storage units Mandela, Nelson Marcus Aurelius market conditions, and business startup investments and real estate investments market cycles See also economic cycles market demand, and entrepreneurial opportunities Mastermind Principle materialism, and the American dream and simplicity Maxwell, John McCain, John McCoy, Dan meals, as tax deduction meaning, and generosity medical insurance, as protective expense Melish, Stephanie mental capital mental energy mentors, and building your inner circle microcredit Mill, John Stuart mindfulness mindset, of abundance changing components of a strong and control and debt and hiring employees and limitations and Living Wealthy Accounts and quitting your job and real estate investments and resourcefulness strengthening mineral rights mobile apps, as entrepreneurial opportunity Moffat, Kyle Momentum investments, and active vs. passive income streams business startups cryptocurrencies description of gold and silver speculation and Growth investment strategies investing in people and Passive Income Ratio private equity investments purchasing distressed businesses understanding financial reports Monero monetary policies, and economic cycles moneylenders money managers fees money mastery Moody, D.
The Politics of Bitcoin: Software as Right-Wing Extremism by David Golumbia
3D printing, A Declaration of the Independence of Cyberspace, Affordable Care Act / Obamacare, bitcoin, blockchain, Burning Man, crony capitalism, cryptocurrency, currency peg, distributed ledger, Elon Musk, en.wikipedia.org, Ethereum, ethereum blockchain, Extropian, fiat currency, Fractional reserve banking, George Gilder, jimmy wales, litecoin, Marc Andreessen, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, new economy, obamacare, Peter Thiel, Philip Mirowski, risk tolerance, Ronald Reagan, Satoshi Nakamoto, seigniorage, Silicon Valley, Singularitarianism, smart contracts, Stewart Brand, technoutopianism, The Chicago School, Travis Kalanick, WikiLeaks
In this sense, it becomes a tool for existing power to concentrate itself, rather than a challenge to the existing order: as some better economically informed commentators consistently point out, Bitcoin functions much more like a speculative investment than a currency (Worstall 2013; Yermack 2014), although what one is investing in, beyond Bitcoin itself, is not at all clear. 6. The Future of Bitcoin and the Blockchain BITCOIN IS NOT SO MUCH a single software program as it is software written using a model called the blockchain that is can be used to build other very similar programs (related cryptocurrencies like Litecoin, Dogecoin, and so on), but also less similar ones. The cryptographically enabled distributed ledger, and the blockchain used to implement it, advocates insist, have wide application outside of their current uses. We hear (not infrequently) that the blockchain is as revolutionary today as were “personal computers in 1975, the internet in 1993” (Andreessen 2014). Networks built on such technologies are formally decentralized, we are told, in a way that the current internet is not, and thus allow a new range of services and opacity to oversight (and therefore legal as well as unlawful surveillance).
How to DeFi by Coingecko, Darren Lau, Sze Jin Teh, Kristian Kho, Erina Azmi, Tm Lee, Bobby Ong
algorithmic trading, asset allocation, Bernie Madoff, bitcoin, blockchain, buy and hold, capital controls, collapse of Lehman Brothers, cryptocurrency, distributed ledger, diversification, Ethereum, ethereum blockchain, fiat currency, Firefox, information retrieval, litecoin, margin call, new economy, passive income, payday loans, peer-to-peer, prediction markets, QR code, reserve currency, smart contracts, tulip mania, two-sided market
If you want to trade Synths but don’t want to take on Debt or mint your own Synths, you can actually buy it on the sETH Uniswap Pool. The sETH pool on Uniswap is currently the largest Pool on Uniswap with over 35,000 ETH (~$80mm @ $200 ETH) in liquidity). ~ What Assets do Synths Support? At the point of writing, Synths support the following 4 major asset classes (full list): (i) Cryptocurrencies: Ethereum (ETH), Bitcoin (BTC), Binance Coin (BNB), Tezos (XTZ), Maker (MKR), Tron (TRX), Litecoin (LTC), and Chainlink (LINK) (ii) Commodities: Gold (XAU) and Silver (XAG) (iii) Fiat Currencies: USD, AUD, CHF, JPY, EUR, and GBP (iv) Indexes: CEX and DEFI ~ Index Synths One of the interesting Synths available on Synthetix is the Index Synths. At the time of writing, there are 2 different Index Synths, namely sCEX and sDEFI. Index Synths provide traders with exposure to a basket of tokens without the need to purchase all the tokens.
Four Futures: Life After Capitalism by Peter Frase
Airbnb, basic income, bitcoin, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cryptocurrency, deindustrialization, Edward Snowden, Erik Brynjolfsson, Ferguson, Missouri, fixed income, full employment, future of work, high net worth, income inequality, industrial robot, informal economy, Intergovernmental Panel on Climate Change (IPCC), iterative process, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, litecoin, mass incarceration, means of production, Occupy movement, pattern recognition, peak oil, plutocrats, Plutocrats, post-work, postindustrial economy, price mechanism, private military company, Ray Kurzweil, Robert Gordon, Second Machine Age, self-driving car, sharing economy, Silicon Valley, smart meter, TaskRabbit, technoutopianism, The Future of Employment, Thomas Malthus, Tyler Cowen: Great Stagnation, universal basic income, Wall-E, Watson beat the top human players on Jeopardy!, We are the 99%, Wolfgang Streeck
The rediscovery of the need for central banking and government regulation is good for a laugh at the expense of a gaggle of libertarian young men, but it tells us little about the future. Bitcoin is not the only cryptocurrency, however, even though it has the most exchange value in traditional currencies, and has certainly been the most widely promoted. Innumerable rivals exist, based on slight variations of the Bitcoin code, going by names like Litecoin and Quarkcoin. Many of these are opportunistic rivals driven by speculators. They are little better than traditional stock market pump-and-dump scams, in which a few promoters talk up the value of a company so that others will bid up its price, and then sell off their own holdings before the suckers realize what’s happening. For the purposes of this chapter, however, the most interesting cryptocurrency is the one that is generally regarded as a silly joke: Dogecoin.
Mastering Ethereum: Building Smart Contracts and DApps by Andreas M. Antonopoulos, Gavin Wood Ph. D.
Amazon Web Services, bitcoin, blockchain, continuous integration, cryptocurrency, Debian, domain-specific language, don't repeat yourself, Edward Snowden, en.wikipedia.org, Ethereum, ethereum blockchain, fault tolerance, fiat currency, Firefox, Google Chrome, intangible asset, Internet of things, litecoin, move fast and break things, move fast and break things, node package manager, peer-to-peer, Ponzi scheme, prediction markets, pull request, QR code, Ruby on Rails, Satoshi Nakamoto, sealed-bid auction, sharing economy, side project, smart contracts, transaction costs, Turing complete, Turing machine, Vickrey auction, web application, WebSocket
Light clients are in development and not in general use for Ethereum. In the case of Parity, the light client is marked “experimental” and can be used by running parity with the --light option. Popular mobile wallets include the following (we list these merely as examples; this is not an endorsement or an indication of the security or functionality of these wallets): Jaxx A multicurrency mobile wallet based on BIP-39 mnemonic seeds, with support for Bitcoin, Litecoin, Ethereum, Ethereum Classic, ZCash, a variety of ERC20 tokens, and many other currencies. Jaxx is available on Android and iOS, as a browser plug-in wallet, and as a desktop wallet for a variety of operating systems. Status A mobile wallet and DApp browser, with support for a variety of tokens and popular DApps. Available for iOS and Android. Trust Wallet A mobile Ethereum and Ethereum Classic wallet that supports ERC20 and ERC223 tokens.
For example, the third receiving address for Ethereum payments in the primary account would be M/44'/60'/0'/0/2. Table 5-6 shows a few more examples. Table 5-6. BIP-44 HD wallet structure examples HD path Key described M/44'/60'/0'/0/2 The third receiving public key for the primary Ethereum account M/44'/0'/3'/1/14 The 15th change-address public key for the 4th Bitcoin account m/44'/2'/0'/0/1 The second private key in the Litecoin main account, for signing transactions Conclusions Wallets are the foundation of any user-facing blockchain application. They allow users to manage collections of keys and addresses. Wallets also allow users to demonstrate their ownership of ether, and authorize transactions, by applying digital signatures, as we will see in Chapter 6. Chapter 6. Transactions Transactions are signed messages originated by an externally owned account, transmitted by the Ethereum network, and recorded on the Ethereum blockchain.
Confessions of a Crypto Millionaire: My Unlikely Escape From Corporate America by Dan Conway
Affordable Care Act / Obamacare, Airbnb, bank run, basic income, bitcoin, blockchain, buy and hold, cloud computing, cognitive dissonance, corporate governance, crowdsourcing, cryptocurrency, disruptive innovation, distributed ledger, double entry bookkeeping, Ethereum, ethereum blockchain, fault tolerance, financial independence, gig economy, Gordon Gekko, Haight Ashbury, high net worth, job satisfaction, litecoin, Marc Andreessen, Mitch Kapor, obamacare, offshore financial centre, Ponzi scheme, prediction markets, rent control, reserve currency, Ronald Coase, Satoshi Nakamoto, Silicon Valley, smart contracts, Steve Jobs, supercomputer in your pocket, Turing complete, Uber for X, universal basic income, upwardly mobile
Then, during small talk while we were filling out forms, he mentioned that he’d been breached in the recent Equifax hack. That allowed me to say, “Don’t worry, blockchain is going to solve all of that.” He looked up from his papers, grabbed his phone and said, “Well, I have my crypto right here.” That was a damn near perfect assist, a textbook bridge, allowing me to say, “That crypto is how we’re buying this car.” And then, to Eileen’s dismay, we talked crypto. He owned ETH, Litecoin and TRON. I knew that TRON was widely considered a scam. I told him he should look into it. He said, “Yeah, I just bought some because it was only a few cents.” He’s like a lot of noobs who flooded into crypto in 2017, people who don’t understand market cap in relation to the number of coins in circulation, and instead simply hope there is some chance a random coin can rise to twenty thousand dollars, “just like Bitcoin.”
The Dark Net by Jamie Bartlett
3D printing, 4chan, bitcoin, blockchain, brain emulation, carbon footprint, creative destruction, crowdsourcing, cryptocurrency, deindustrialization, Edward Snowden, Filter Bubble, Francis Fukuyama: the end of history, global village, Google Chrome, Howard Rheingold, Internet of things, invention of writing, Johann Wolfgang von Goethe, Julian Assange, Kuwabatake Sanjuro: assassination market, life extension, litecoin, longitudinal study, Mark Zuckerberg, Marshall McLuhan, moral hazard, moral panic, Occupy movement, pre–internet, Ray Kurzweil, Ross Ulbricht, Satoshi Nakamoto, Skype, slashdot, technological singularity, technoutopianism, Ted Kaczynski, The Coming Technological Singularity, Turing test, Vernor Vinge, WikiLeaks, Zimmermann PGP
One hacker posts all the site’s internal information and user information. 2 February: CannabisRoad is hacked. 3 February: Black Goblin Market launches, and a day later is taken down due to amateurish security. First week of February: Utopia marketplace is launched. It has a strong connection to Black Market Reloaded. Early February: The White Rabbit marketplace is set up. It accepts Bitcoins and Litecoins, and runs on I2P, not Tor. 12 February: Dutch police seize Utopia, forcing it offline. They decline to discuss the details. Early February: Silk Road 2.0 is hacked, $2.7 million in Bitcoins lost. 16 February: Agora Market becomes the most popular marketplace on the deep web. Late February/early March: Agora is closed down, reopened and closed numerous times as a result of intensive distributed denial of service attacks.
Narrative Economics: How Stories Go Viral and Drive Major Economic Events by Robert J. Shiller
agricultural Revolution, Albert Einstein, algorithmic trading, Andrei Shleifer, autonomous vehicles, bank run, banking crisis, basic income, bitcoin, blockchain, business cycle, butterfly effect, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, central bank independence, collective bargaining, computerized trading, corporate raider, correlation does not imply causation, cryptocurrency, Daniel Kahneman / Amos Tversky, debt deflation, disintermediation, Donald Trump, Edmond Halley, Elon Musk, en.wikipedia.org, Ethereum, ethereum blockchain, full employment, George Akerlof, germ theory of disease, German hyperinflation, Gunnar Myrdal, Gödel, Escher, Bach, Hacker Ethic, implied volatility, income inequality, inflation targeting, invention of radio, invention of the telegraph, Jean Tirole, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, litecoin, market bubble, money market fund, moral hazard, Northern Rock, nudge unit, Own Your Own Home, Paul Samuelson, Philip Mirowski, plutocrats, Plutocrats, Ponzi scheme, publish or perish, random walk, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, Rubik’s Cube, Satoshi Nakamoto, secular stagnation, shareholder value, Silicon Valley, speech recognition, Steve Jobs, Steven Pinker, stochastic process, stocks for the long run, superstar cities, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, theory of mind, Thorstein Veblen, traveling salesman, trickle-down economics, tulip mania, universal basic income, Watson beat the top human players on Jeopardy!, We are the 99%, yellow journalism, yield curve, Yom Kippur War
Narrative economics, the study of the viral spread of popular narratives that affect economic behavior, can improve our ability to anticipate and prepare for economic events. It can also help us structure economic institutions and policy. To get a feel for where we are going, let’s begin by considering one such popular narrative, recently in full swing. Bitcoin, the first of thousands of privately issued cryptocurrencies—including Litecoin, Ripple, Ethereum, and Libra—has generated enormous levels of talk, enthusiasm, and entrepreneurial activity. These narratives surrounding Bitcoin, the most remarkable cryptocurrency in history as judged by the speculative enthusiasm for it and its market price rather than its actual use in commerce, provide an intuitive basis for discussing the basic epidemiology of narrative economics (which we explore in detail in chapter 3).
Engineering Security by Peter Gutmann
active measures, algorithmic trading, Amazon Web Services, Asperger Syndrome, bank run, barriers to entry, bitcoin, Brian Krebs, business process, call centre, card file, cloud computing, cognitive bias, cognitive dissonance, combinatorial explosion, Credit Default Swap, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Debian, domain-specific language, Donald Davies, Donald Knuth, double helix, en.wikipedia.org, endowment effect, fault tolerance, Firefox, fundamental attribution error, George Akerlof, glass ceiling, GnuPG, Google Chrome, iterative process, Jacob Appelbaum, Jane Jacobs, Jeff Bezos, John Conway, John Markoff, John von Neumann, Kickstarter, lake wobegon effect, Laplace demon, linear programming, litecoin, load shedding, MITM: man-in-the-middle, Network effects, Parkinson's law, pattern recognition, peer-to-peer, Pierre-Simon Laplace, place-making, post-materialism, QR code, race to the bottom, random walk, recommendation engine, RFID, risk tolerance, Robert Metcalfe, Ruby on Rails, Sapir-Whorf hypothesis, Satoshi Nakamoto, security theater, semantic web, Skype, slashdot, smart meter, social intelligence, speech recognition, statistical model, Steve Jobs, Steven Pinker, Stuxnet, telemarketer, text mining, the built environment, The Death and Life of Great American Cities, The Market for Lemons, the payments system, Therac-25, too big to fail, Turing complete, Turing machine, Turing test, web application, web of trust, x509 certificate, Y2K, zero day, Zimmermann PGP
By repurposing the hardware that was originally designed for Bitcoin mining it would be possible to attack hashed passwords with an efficiency that wasn’t feasible before Bitcoin appeared. Having said that though, the Bitcoin ASICs for which details have been published are specifically designed for high-speed mining rather than passwordcracking, so that they would require significant changes to their control circuitry in order to make them suitable for password cracking — it’s not for nothing that they’re called application-specific ICs)71. Two variations of Bitcoin called Litecoin and Novacoin turn another cryptographic mechanism into collateral damage. In this case it’s scrypt, which was specifically designed to be expensive to implement in custom hardware by accessing data spread across a large amount of memory in a pseudorandom manner, a so-called memoryhard algorithm . Unfortunately while this makes scrypt relatively expensive to implement in FPGAs and ASICs, it’s well suited to GPUs, so mining isn’t nearly as hard as it should be.
A side-effect of this Lite/Novacoin mining is that, again, a mechanism designed to protect one type of resource, passwords, is weakened when it’s also used to protect another type of resource, coin scarcity. What’s interesting in these situations is that there’s always been an implicit assumption that, spook conspiracies aside, no-one would bother rolling custom hardware just to crack passwords because there’s always an easier way in than going to that sort of extreme. However if the Bitcoin, Litecoin, Novacoin, and whatever71 In any case your passwords are pretty safe for now since anyone who has an ASIC-based rig is more interested in mining coins than cracking passwords. 312 Design else-coin fans are resorting to custom hardware in order to break schemes that are used to keep passwords safe then it’s now necessary to design password-hashing functions to resist custom-hardware attacks, not because of theoretical devices fielded by secret government agencies but because of actual devices developed for whatevercoin mining.
     “Re: delegating SSL certificates”, Dirk-Willem van Gulik, posting to the firstname.lastname@example.org mailing list, message-ID 02120D26-545E4C38-B8CA-AA01D34E471D@webweaving.org, 16 March 2008. “AWS urges developers to scrub GitHub of secret keys”, Munir Kotadia, 24 March 2014, http://www.itnews.com.au/News/375785,aws-urgesdevelopers-to-scrub-github-of-secret-keys.aspx. “My run in with Unauthorised Litecoin mining on AWS”, Luke Chadwick, 16 December 2013, http://vertis.io/2013/12/16/unauthorised-litecoinmining.html. “My $500 Cloud Security Screwup”, Rich Mogull, 7 January 2014, https://securosis.com/blog/my-500-cloud-security-screwup. “Glitch imperils swath of encrypted records”, Shaun Waterman, The Washington Times, 25 December 2012, http://www.washingtontimes.com/news/2012/dec/25/glitch-imperilsswath-of-encrypted-records
Future Crimes: Everything Is Connected, Everyone Is Vulnerable and What We Can Do About It by Marc Goodman
23andMe, 3D printing, active measures, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, algorithmic trading, artificial general intelligence, Asilomar, Asilomar Conference on Recombinant DNA, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, Bill Joy: nanobots, bitcoin, Black Swan, blockchain, borderless world, Brian Krebs, business process, butterfly effect, call centre, Charles Lindbergh, Chelsea Manning, cloud computing, cognitive dissonance, computer vision, connected car, corporate governance, crowdsourcing, cryptocurrency, data acquisition, data is the new oil, Dean Kamen, disintermediation, don't be evil, double helix, Downton Abbey, drone strike, Edward Snowden, Elon Musk, Erik Brynjolfsson, Filter Bubble, Firefox, Flash crash, future of work, game design, global pandemic, Google Chrome, Google Earth, Google Glasses, Gordon Gekko, high net worth, High speed trading, hive mind, Howard Rheingold, hypertext link, illegal immigration, impulse control, industrial robot, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jaron Lanier, Jeff Bezos, job automation, John Harrison: Longitude, John Markoff, Joi Ito, Jony Ive, Julian Assange, Kevin Kelly, Khan Academy, Kickstarter, knowledge worker, Kuwabatake Sanjuro: assassination market, Law of Accelerating Returns, Lean Startup, license plate recognition, lifelogging, litecoin, low earth orbit, M-Pesa, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Metcalfe’s law, MITM: man-in-the-middle, mobile money, more computing power than Apollo, move fast and break things, move fast and break things, Nate Silver, national security letter, natural language processing, obamacare, Occupy movement, Oculus Rift, off grid, offshore financial centre, optical character recognition, Parag Khanna, pattern recognition, peer-to-peer, personalized medicine, Peter H. Diamandis: Planetary Resources, Peter Thiel, pre–internet, RAND corporation, ransomware, Ray Kurzweil, refrigerator car, RFID, ride hailing / ride sharing, Rodney Brooks, Ross Ulbricht, Satoshi Nakamoto, Second Machine Age, security theater, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, smart meter, Snapchat, social graph, software as a service, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, Stuxnet, supply-chain management, technological singularity, telepresence, telepresence robot, Tesla Model S, The Future of Employment, The Wisdom of Crowds, Tim Cook: Apple, trade route, uranium enrichment, Wall-E, Watson beat the top human players on Jeopardy!, Wave and Pay, We are Anonymous. We are Legion, web application, Westphalian system, WikiLeaks, Y Combinator, zero day
In the days of Al Capone’s Prohibition-era racketeering, the Feds’ mantra became “Follow the money,” and it was ultimately tax evasion charges, not murder convictions, that brought down the world’s biggest crime boss of the 1930s. Though “follow the money” has been the core credo in law enforcement ever since, cops may soon have to find a new motto. There are now more than seventy virtual crypto-currency competitors to Bitcoin, such as Ripple, Litecoin, and Dogecoin, and it is estimated nearly $10 billion in virtual currencies were transacted in 2013 alone. Given the vast sums at play, it should come as no surprise that criminals are not only transacting Bitcoin but also targeting the crypto currency for theft. Hackers have been able to steal millions and millions of dollars in virtual money from one another, with the largest attack to date directed against Mt.