A Decentralized Internet

By Olaf Carlson-Wee. Tech Crunch.

In a world with many blockchains and hundreds of tradable tokens built on top of them, entire industries are automated through software, venture capital and stock markets are circumvented, entrepreneurship is streamlined and networks gain sovereignty through their own digital currency. This is the next phase of the internet.

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World Bank President Warns [we need protection]

Speaking with CNBC, Jim Yong Kim said that the technology is “something everyone is excited about” – a statement that he followed up with a cautionary argument about cryptocurrencies.

“[B]lockchain technology is something that everyone is excited about, but we have to remember that bitcoin is one of the very few instances. And the other times when blockchain was used they were basically Ponzi schemes, so it’s very important that if we go forward with it, we’re sure that it’s not going to be used to exploit,” he told the network.


Blockstream Satellite Kills Dependance on ISP’s

Aug 15, 2017 by Adam Back,

Blockstream Satellite is already available across two thirds of the Earth’s landmass; and will reach global coverage – to everyone on the planet – by end of year.

Blockstream Satellite is the world’s first service that broadcasts real-time Bitcoin transactions and blocks from a group of satellites in space. With the service, everyone will have free access to the Bitcoin network, in any corner of the world, including the estimated four billion people not currently connected to the Internet, due to lack of availability or affordability.

For Bitcoin to be truly transformative, it must be everywhere, available for everyone to use, and that’s what we’re helping to make possible with Blockstream Satellite’s radically lower cost of Bitcoin network access — a necessary building block and level-up for the mass adoption of Bitcoin.

Why Blockchain Technology Will Eat The World.

Why we will win the War

OR – Why Jim Rickards is Wrong!

“Bitcoin is doomed to fail” the neigh sayers …neigh.

Some critics might admit that yes Blockchain technology does look set to completely disrupt the status quo but they just cant get rid of that nagging feeling that current prices are bound to crash. For one major reason:

Governments and Central Banks (the Elites & the Bureaucrats they protect and who grow fat off the public nipple), don’t like competition.

Of course they are correct.

Open source, P2P, decentralised exchange between ourselves, without their ‘help’ is a huge threat to them. In fact it spells the end for their privileged existence.

At first they laughed at Bitcoin, if they knew what it was. However as the market cap grew bigger, and bigger, with no signs of slowing down they have been forced to take notice. It takes a little while to wrap your head around the significance of the Technology. First you notice Bitcoin, then you learn about Blockchain, then you start to gain an insight into the things it could be capable of.

They can now see the ‘threat’ looming larger. And they are not going to take it lying down.

The price, relative to gold say, indicates that Bitcoin is now well into bubble territory and when Governments crack down on this threat to the system, the bubble will pop and the price will …drop!
And crack down they will.

This fear seems to be based on sound reasoning and is one of the factors holding back the mass adoption of crypto currencies. When governments act the price drops as investors panic. Look at the effect of the recent China crack down.

However it doesn’t last. As more people gain an understanding of the technology behind Bitcoin, the internet itself and of emerging technologies which will play a role they will see how these ‘attacks’ will ultimately fail. Investors will return.

Big Brother is Loosing It’s Grip So What Can They Do About It?

So, the Decentralised Blockchain is coming for them. It’s a huge threat. What can they do about it then?

First, they will attack directly. Some Governments are already taking this approach with outright bans. Like the music industries crack down on Napster this will not work. Yes Napster no longer exists but cut the head off the snake and thousands more sharing platforms were spawned. Better and stronger.

Plus anything Governments try to ban doesn’t stop people from doing it anyway. Prohibition usually tends to backfire completely.

Then, they will attempt to hijack it. Like the Roman Empire re-branding itself as the ‘Holy’ Roman Empire. If you can’t beat em join em. It will be for our own safety of course.

The problem will be criminals, tax cheats and terrorists. People just can’t be trusted. The solution will be a Centralised Blockchain. The approved version – which they can monitor and control. Which they can use to fleece us so it’s business as usual.

In fact the publics fervour for this new tech will play right into their hands and allow the speedier introduction of many 1984 type controls over the population. Humans will be the asset on the Blockchain.

In the case of digital currency, the supply will not be finite like Bitcoin. They will need a way to inflate the supply in order to continue their ponzi scheme.

So how can they achieve the Takeover?

“Blockchain depends on critical infrastructure. I.S.P’s, servers, telco networks, the banking system and the power grid, all subject to government control”. – Jim Rickards

If criminalising it wont work, and ‘The People’ refuse to adopt their approved versions I think that attacking that “critical infrastructure” in various ways is the only real weapon they can deploy. I can’t imagine anything else. So let me address it point by point to illustrate why that will not work either.

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IMF Head Foresees The End Of Banking.

By Tyler Durdan – Zero Hedge

[They are Shakin in their Boots…]

In a remarkably frank talk at a Bank of England conference, the Managing Director of the International Monetary Fund has speculated that Bitcoin and cryptocurrency have as much of a future as the Internet itself.

It could displace central banks, conventional banking, and challenge the monopoly of national monies. Christine Lagarde –a Paris native who has held her position at the IMF since 2011–says the only substantial problems with existing cryptocurrency are fixable over time.

In the long run, the technology itself can replace national monies, conventional financial intermediation, and even puts a question mark on the fractional banking model we know today.”

In a lecture that chastised her colleagues for failing to embrace the future, she warned that “Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays. So I think it may not be wise to dismiss virtual currencies.”

Here are the relevant parts of her paper:

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Fintech Picking Banks’ Pockets

By Ryan Dinse – Money Morning.

I got some good feedback from Wednesday’s article on how fintech is a big threat to the banks.

Good feedback in that it was interesting, even if some of it wasn’t positive! There were some very good points, which I think need to be addressed.

David wrote:

This article misses the point.

The banks do not make most of their money from providing a platform for exchange of funds between governments, businesses and natural people. Blockchain technologies may well replace this role of banks as financial intermediaries but this is a peripheral business.

The banks make their real money from their monopoly right to create credit out of thin air, literally nothing, and charge interest on the money thus created that had prior existence whatsoever.

Very few people grasp this fact although it is fully explained on the Bank of England’s website in their series “Money in the modern economy”.

Until this magical power of money creation is removed from Banks or given to rival organisations who in effect would play the role of banks in money creation, they will always be profitable as long as they remain prudent in their leading practices.’

Let me start by saying that I agree with David’s comments.

To an extent…

To quickly summarise the original article…

I started by saying that Open Data policies, as seen in the UK, could drive an increase in bank switching.

Australia’s big four banks are the most profitable in the world. Their customers are generally not happy. But they stay due to the difficulty in moving banks. Part of this difficulty is rooted in psychology.

Because the original decision to choose a bank requires a lot of effort to research the right information and set up accounts, this ‘sunk cost’ has a value to us. A value that makes us less likely to move banks. Mandated ‘Open Data’ policies and new financial technology reduce the effort required to compare and switch. Thus making customer more likely to switch. This will mean banks have to be more competitive in their pricing. Thus reducing profits.

That was point one and is more to do with fintech putting pressure on the very high — by world standards — profit margins enjoyed by Australia’s big four. But the broader point David makes is that the license to create credit underpins banks’ profitability. And fintech wouldn’t make a dent in this fact. It’s a valid point. And it will not change in a hurry. But it could eventually. How?

Let me explain.

The power of fractional reserve banking

David’s right to point out that the fractional reserve banking system is the key driver of bank profits.

This is the system whereby a bank can lend out a multiple of what it takes in from savers.

A blockchain future that is simply a better ‘piping’ mechanism for making transfers doesn’t dent this advantage.

I’ll get back to this shortly…but first, fractional reserve banking.

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Have the Banks Had Their Kodak Moment?


By Ryan Dinse – Money Morning.

Fintech is coming…

And the banks are in big trouble. Especially Australia’s big four.

I’m going to put some facts on the table. Then I’ll explain why the big four Aussie banks might have already lost the fintech war to come.
But first, let me briefly recount Kodak’s tale of woe, and explain why it’s so relevant today.

You see, it all stemmed from one moment. The invention of the digital camera. And what’s worse, they invented it!
Founded in 1878, Eastman Kodak [NASDAQ:KODK] was once a global technology powerhouse. Big, dominant, unassailable. The Apple Corp. [NASDAQ:AAPL] of its day.

It had retail film developing locations all over the world, and employed over 145,000 people.
Like me, you might remember the old days of taking photos on holiday, then taking the film to get developed when you got home.
The results were often surprising. My Nana always managed to cut the head off my Dad, her son-in-law.  No one was ever sure if it was deliberate or not…

Anyway, with the benefits of digital clear, the Japanese companies took over the camera revolution. This spelled the end for Kodak as we knew it.
It still exists today, but is a shadow of its former self, and was even in Chapter 11 bankruptcy in 2012.

Why didn’t Kodak just switch to selling the very product they invented, digital cameras?

It seems easy in hindsight, but you have to remember this: they made fat profits from the old way of doing things.
They had thousands of branches around the world making regular profits from the development of film. They owned 90% of the film market.
What CEO in their right mind would be brave enough to turn off that lucrative tap?

By the time Kodak realised the digital camera revolution was happening with or without them (and they were losing film sales rapidly), it was too late to change course.

Decline of Film 13-09-17 Source: HBS.org

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With Scumbags like this, it’s easy to understand why Bitcoin is at $4600…

By Simon Black – Soverign Man.

File this one away under ‘utterly repulsive.’
As you probably heard, yesterday the US-based credit reporting agency Equifax announced a massive cyberattack that affects as many as 143 million consumers.
Names. Birth dates. Addresses. Social Security Numbers. Even some credit card numbers were stolen.
Literally over one third of the entire US population is at risk of identity theft now thanks to Equifax’s bungling.

Bear in mind this is the THIRD TIME in 16 months that Equifax has been hacked– there was another breach earlier this year, and another in May 2016.
Even worse– this wasn’t an overnight attack. Hackers spent MONTHS probing the Equifax network, burrowing deeper into the system and gaining access to more and more data with each attempt.
Yet Equifax’s defenses failed to detect anything.

Finally on July 29, a whopping TEN WEEKS after the attacks started, Equifax realized that something was wrong.
Senior executive responded to the data breach by… selling their stock.
Yes, in the days following their discovery of the hack, three of the company’s executives sold nearly $2 million worth of stock.

Remember, these “insider sales” have to be reported to the Securities and Exchange Commission, so there is a public record every time a company executive sells stock.
These executives would have known this, and that the public would find out they sold their stock right after the data breach was discovered.
This suggests to me that these guys are either complete idiots… or they simply don’t care… both of which seem par for the course at Equifax.

Moreover, given that the company is responsible for making the SEC filings, it’s obvious that Equifax knew about these executives selling their stock. Clearly they don’t care either.
In another weak, spineless, immoral decision, Equifax waited six weeks between discovering the hack and informing the public.
I find this appalling.

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