U.S. Congressman Supports Bitcoin, Calls For Ban of Dangerous Dollar

U.S. Congressman Supports Bitcoin, Calls For Ban of Dangerous Dollar

Today, U.S. Congressman Jared Polis (D-CO) sent a letter to federal regulators seeking a ban on United States dollar bills, a currency that is unregulated and unstable, and has been used in illicit activity, including drug trafficking and money laundering. The letter was sent in response to a letter from Senator Joe Manchin (D-WV) calling for the banning of BitCoins. Congressman Polis expressed similar concerns about the negative effect dollars have on America’s economy. The letter was sent to Treasury Secretary Jack Lew, Federal Reserve Chairwoman Janet Yellen, Comptroller of Currency Thomas Curry, Acting CFTC Chairman Mark Wetjen, FDIC Chairman Martin Gruenberg, and SEC Chairwoman Mary Jo White. The full text of Congressman Polis’ letter is at:

http://polis.house.gov/news/documentsingle.aspx?DocumentID=371808

MIT student group announces a huge development research project with Bitcoin

Yelp's New Bitcoin Designation

Yelp’s New Bitcoin Designation

There’s ben several really major announcements this week showing further tremendous adoption of Bitcoin.  MIT student group announces a huge development research project with Bitcoin.  The largest Wall Street computer system, Bloomberg Terminal begins to track Bitcoin.    Seattle, Washington gets its first Bitcoin ATM machine. World’s largest review site Yelp added a designation showing which businesses accept Bitcoin.

Those who think that it is safer to own dollars than Bitcoin should keep their money in dollars and they can enjoy the safety of losing 5% per year. In the past 12 months, Bitcoin increased in value more than 400% while the dollar decreased in value 5%. The year before that, Bitcoin increased in value 600% while the dollar decreased in value by 5%. The year before that, Bitcoin went up in value 600% while the dollar decreased in value by 4%. How many years will it take for the average person to catch on? Most will wait to buy Bitcoin and wait and wait until the timing is all wrong. Most will think Bitcoin is safe after several more years. Most will buy Bitcoin at its peak, and then they will experience the greatest crash in history.

Corey Chambers – The Bitcoin Blogs

Nick Szabo Not the Creator of Bitcoin

Nick Szabo Not the Creator of Bitcoin

 A quick glance is enough to see that Erik Sherman and Jack Grieve are off on their thesis about Satoshi Nakamoto being Nick Szabo.   Nakamoto does not share the quirky traits of Szabo.  Nakamoto does not make lists with commas followed by “, and”.  And Nakamoto does not use ” – – “.  Furthermore, a full-time blogger on many topics would obviously not be the focused developer of Bitcoin.

Not only is the linguistic study wrong, there is no other corroborating evidence that Szabo could be the creator of Bitcoin.  The Newsweek article, on the other hand, is more likely to be correct as it succinctly nails the background of Satoshi Nakamoto as the full-time computer programmer with not only the skills to create Bitcoin, but also the personal belief system and motivation.

Everything will eventually to to $0.00 given enough time

Everything will eventually to to $0.00 given enough time. Bitcoin will go toward zero after the world starts adopting something better to replace it. So far, Bitcoin is growing in popularity every day. Increasing usage forces the price to rise in conjunction with the capitalization.

This week, the IRS announced that it will require Americans to use what could be a very complex method to track Bitcoin gains. That caused the price to drop more this week. Ultimately, however, a simple method will work just fine to calculate Bitcoin gains or losses for most American Bitcoin users.

The smart investors bought as many Bitcoins as could be afforded this week to take advantage of the price drop.

 

Corey Chambers, The Bitcoin Blogs

Bitcoin Supporters Clash Over Idealogical, Practical Issues

Bitcoin Supporters Clash Over Idealogical, Practical Issues

Kristen Brown and SFGate report on a widening schism between Bitcoin enthusiasts calling for more regulation and those who want to protect the independent, libertarian spirit of the cryptocurrency.

Like U.S. dollars, Bitcoin works both inside and outside of a regulatory environment. Bitcoin enthusiasts need not choose one of the other, but they do have that option if desired. Bitcoin purchased with localbitcoins.com is private and out of the reach of governments. Bitcoin purchased with coinbase.com is regulated and presumably tracked by the U.S. government.

Bitcoin is inherently under less regulation than the U.S. dollar, and Bitcoin will always have that advantage. The U.S. government creates and destroys dollars at will. The U.S. government cannot do that with Bitcoin because, like the Internet, Bitcoin is decentralized, created by internet-based individuals across the globe. Currently, nobody has the technology to crack the cryptography of Bitcoin.

Corey Chambers, The Bitcoin Blogs

Bitcoin: Both Buffett and Andreessen are Right

Bitcoin: Both Buffett and Andreessen are right

Christopher Matthews of CNN Money has written that Warren Buffet and Marc Andreessen are both right although they seem diametrically opposed.  Matthew and CNN have got it right as well.

Matthews explains that Buffett and Andreessen are both very wealthy and successful investors (Buffet much wealthier than Andreessen) yet they have very different investment plans.  With higher risk and higher reward, Bitcoin fits Andreessen’s plan.  Andreessen is also the technology venture capital guru.  Warren is truly old-fashioned in most ways, and does not invest in risky ventures.  Buffett also is admittedly not into technology.

It fits that Bitcoin is ideal for high-risk, high-return technology investors.  Buffet is correct that Bitcoin is not a match for low-risk traditional investors.

As a computer programmer, economist and payment processing professional who loves new technology, my heart is firmly with Andreessen in this matter.  In fact, my calculations says that it is risky to not buy a small amount of Bitcoin, even for old-fashioned investors.  Losing out on a financial opportunity is a real type of loss.  Bitcoin is certainly worth researching for most investors.  The safe and smart thing for most is so buy as much Bitcoin as one can afford to lose.

Corey Chambers, The  Bitcoin Blogs

Fast Company: THE MOST DANGEROUS MAN IN BITCOIN ISN’T A CRIMINAL

Fast Company: THE MOST DANGEROUS MAN IN BITCOIN ISN’T A CRIMINAL
http://www.fastcompany.com/3027123/bitcoin-sheriff-of-the-web-preet-bharara

Writer Mark Chafkin thinks that federal prosecutor Preet Bharara can clean up Bitcoin.

While Chafkin’s Fast Company article gets big points for quality and content, it fails to provide substantial criticism of Bharara. Chafkin does a disservice by worshipping the lawman. Bharara suffers from his own very obvious vice: political corruption that is evident in his lack of prosecution of the biggest criminals who are politically connected. Bharara will not chase the biggest fish, those who are part of big government, law enforcement or individual criminals who are connected to government through big business. Bharara has only been most aggressive with small fish. Bharara will not be fully respectable until he stops being a politico and when he begins to aggressively go after the real big guys, the politically connected Bernie Madoff-types and government officials who are still operating with impunity as Bharara is too afraid and too corrupt himself to tackle.

Corey Chambers, The Bitcoin Blogs

Dorian Satoshi Nakamoto – private individuals deserve to have their privacy respected

Dorian Satoshi Nakamoto of Temple City, California has lived in the U.S. for more than 50 years. He speaks and write English better than you and I. His entire career is about secretive technologies, and even if Newsweek is only half-right about his personal life, Dorian Satoshi matches precisely the expected persona of the inventor of Bitcoin. Regardless, Nakamoto wants privacy, and the law is clear that private individuals deserve to have their privacy respected.

Corey Chambers, The Bitcoin Blogs

Satoshi Nakamoto Identity

Satoshi Nakamoto Idenity

The creator of Bitcoin has been identified, found and interviewed.

Satoshi Nakamoto Identity

Satoshi Nakamoto Identity

Newsweek’s Leah McGrath Goodman has written the most important Bitcoin article to date.  It is unfortunate that Newsweek decided to show a photograph of Nakamoto’s house, an disrespectful slap in the face to Nakamoto.  Why was the residence photo necessary for this article?  The only reason someone should be outed in this manner is if it is an openly public figure who is accused of some kind of

Newsweek and Goodman do appear to be right on the money regarding Prentice S. Nakamoto’s identity as the Bitcoin creator.  Everything that Nakamoto says seems to be a match to what Bitcoin creator Satoshi Nakamoto has communicated in his previous communications.  Also Dorian S.  Nakamoto’s entire persona seems to match exactly that of the Libertarian computer scientist who would create Bitcoin.  If he really said “I’m no longer involved.” then that would also be an exact match, and an admission that he is Bitcoin’s creator.

Corey Chambers, The Bitcoin Blogs

WARREN BUFFET REBUFFS BITCOIN

WARREN BUFFET REBUFFS BITCOIN
by Corey Chambers

Ben Eisen of MarketWatch recently wrote about how Buffett likes Pepsico, but he does not like Bitcoin.  Is that a shock to anyone?  Buffett said that Bitcoin is “not a currency”.   He said that it will not be around for a long time.

MarketWatch Buffet Bitcoin Report

MarketWatch Buffet Bitcoin Report

When it comes to Bitcoin, Buffet does not know what he is talking about.  Buffet is most credible when he sticks to what he knows. Buffet knows large cap companies.  He knows to buy quality at a low price and sell high over large market cycles.  While Buffet is correct about Bitcoin being more short term.  Buffet is correct that Bitcoin is probably not a super long term investment.  Bitcoin  has already proven itself for 4 years however, and Bitcoin is just getting started.  Bitcoin is opposite of what old-school Buffet all about.  Buffet does not invest in bleeding edge innovation technologies like Bitcoin, so his smartest move is to sell against Bitcoin.  Buffet played his smartest move like Billionaires can be counted on to do.

Bitcoin does likely have a shorter life span that Pepsico or Coca-Cola.   Bitcoin is more predictable than many are aware of.  There is one word that speculative investors need to keep an eye on in order to know when to stop buying and when to start selling off Bitcoin.  The Bitcoin Books will provide that secret word.

@Corey Chambers, The Bitcoin Books
http://www.thebitcoinbooks.com