Humanitarian aid groups turning to blockchain

PolloPollo: The crypto project putting chicken back on the table in Venezuela - Decrypt - Adriana Hamacher:

November 9, 2019 - "In a TV broadcast last month, Venezuelan President Maduro suggested installing hen coops in classrooms to feed the country’s starving children. It’s a measure of the enduring humanitarian crisis that he’s persistently insisted does not exist. And this stance, say aid workers, makes it impossible for international agencies, like UNICEF and the World Food Programme, to airlift and distribute the supplies that Venezuelans so desperately need....

"But a new initiative, PolloPollo, is hoping to put poultry, and other groceries back on the table once again. PolloPollo is using blockchain to deliver on its promise, but also to address questions of transparency and accountability that have been levied against other donation programs....

"It’s not the only one. Further afield, the World Food Programme has also been using DLT [distributed ledger technology] to distribute aid to those who need it most since early last year, and is now both expanding the ground it covers and improving on the technology....

"Casper Niebe, PolloPollo’s founder, told Decrypt [that aid] recipients don’t even need a smartphone. They simply have to register on the platform’s website, and post a request.... When a third party responds to the request and makes a donation on the platform, the person requesting food gets a text message or an email. They then pick up and digitally sign for their supplies from a food retailer or producer nearby. The shop or farm then receives payment for the produce in 'bytes,' the cryptocurrency of the Obyte platform PolloPollo is built on. The final step is when an Obyte representative visits the supplier and converts the cryptocurrency into Venezuelan Bolivars, or another crypto.

"Niebe said that the project was born out of his frustration at the lack of transparency in current aid distribution platforms. Transaction fees and costs eat up around 3.5 percent of the average donation, according to estimates, and former UN Secretary-General Ban Ki-moon has warned that up to 30 percent of development funds are lost to corruption.... Niebe believes PolloPollo is a better solution, one that offers more accountability. With their digital signature, the aid recipients activate the smart contract that ensures suppliers are paid. And donors are notified via the PolloPollo platform.....

"Since early in 2018, the World Food Programme has been using blockchain to address the food shortages that dog the 106,000 refugees who have fled Syria, and set up temporary homes in Jordan’s camps. 'Currently, we’re exploring the foundational blockchain layer, rather than cryptocurrency,' Houman Haddad, the UN executive behind the project, told Decrypt.

"His initiative, Building Blocks, provides food vouchers for the refugees to redeem in local stores. It uses a 'permissioned' or private version of the Ethereum blockchain, together with iris scanning technology, to manage the data underpinning the delivery of the vouchers. To buy food, a recipient need only go to a participating supermarket, where their iris is scanned and the price of the food they need is deducted from the family’s account....

"Instead of furnishing refugees with crypto, Haddad’s dream is to roll out a more decentralized version of Building Blocks; one that all 40 of the organizations assisting people in the camps can use.... Meanwhile, Building Blocks is expanding to Bangladesh and rolling out a blockchain that Haddad hopes will — eventually — service more than 800,000 Rohinga refugees."

Read more: https://decrypt.co/10972/pollopollo-the-crypto-project-putting-chicken-back-on-the-table-in-venezuela
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How the Bitcoin Protocol 'changes everything'

How To Understand Bitcoin If You're Over 40 - Matt Hougan, Forbes:

August 15, 2019 - "Those of us who are over 40 can remember a time when the internet stunk: When you had to look up websites in a (printed) book; when email didn’t exist; when you couldn’t do much with the internet except send files ... using something called 'FTP' [or] 'file transfer protocol.'  'Protocol' is a fancy word that means a set of insructions for how to transfer information across the internet....

"In 1982, researchers developed ... the Simple Mail Transmission Protocol, or SMTP. SMTP allowed us to send email over the internet.... In 1989, we took another big step forward with the creation of Hypertext Transfer Protocol, or HTTP. HTTP lets us send webpages with linked text (or 'hyperlinks'). It gave rise to the World Wide Web.

"In 1994, the Secure Sockets Layer protocol was created, better known as SSL. SSL allows us to securely enter sensitive information into the internet, like personal or credit card information. Not coincidentally, Amazon was founded later that year.... Voice Over Internet Protocol, or VOIP, created 1995, changed telecom forever; Real-Time Streaming Protocol, or RTSP, created in 1996, helped enable streaming video. And so on. From a distance, each of these advances seemed unprecedented. But in reality, they were just the next logical thing: a new protocol that expanded the way the internet can be used.

"The right way to think of bitcoin, crypto, and public blockchains is as the next step in this evolution. Just instead of sending files or email or voice or credit card data, bitcoin and crypto let us send money. Of course, there have been online banks and payment services for decades. But they’ve always been hybrids or bridges: A bank like Wells Fargo or a service provider like PayPal might put up a digital veneer, but it would actually extract each transaction and process it in the traditional, physical world....

"The Bitcoin Protocol’s breakthrough – the reason 'it changes everything' – is that it lets you send money over the internet natively, without a bank or a service provider in the middle.... If you want to wire $10 million to someone in another country today, for instance, it takes three-to-five days, they can deny your wire for any reason or create limits, and the fees are significant. With bitcoin, it takes about 10 minutes, it’s open 24/7, and is essentially free.... Instead of using lawyers and investment bankers, you can create any contract or trust or entity or set of financial instructions … for free.... That means disrupting services like escrow, debt issuance, derivatives, trust creation, fundraising, and more....

"[T]o move money around the world instantly on the Bitcoin blockchain, or to replace your investment bankers with the Ethereum blockchain – you have to own and use bitcoin or ether.... A lot of smart investors are buying up bitcoin and ether today, before everyone else figures out how valuable these new technologies can be....

"[E]very major new internet protocol has disrupted a major industry:

• SMTP created email and disrupted the Post Office;
• HTTP created the web and disrupted media and advertising;
• SSL created internet commerce and disrupted retail;
• RTSP created streaming and disrupted the entertainment industry.

"By allowing money to travel over the internet, Bitcoin and crypto will disrupt the financial industry just as surely as Amazon disrupted Sears."

Read more: https://www.forbes.com/sites/matthougan/2019/08/15/how-to-understand-bitcoin-if-youre-over-40/#3eafc04b47a5

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Ohio accepting tax payments in Bitcoin

Why Ohio bitcoin tax gimmick is like paying with Beanie Babies - Susan Tompor, MSN News:

December 24, 2018 - "Car dealer Bernie Moreno took a small step outside of the tax payment comfort zone.... Moreno, 51, converted U.S. dollars into bitcoin in late November and paid off some taxes relating to car leases to the state of Ohio — gaining the Facebook bragging rights that he was the first ever to use bitcoin to pay some type of state taxes in the country.

"'Digital currency and blockchain are really the next tech revolution,' said Moreno, president of The Bernie Moreno Cos auto dealership in Olmstead, Ohio.

"Ohio is the first state in the United States to accept cryptocurrency. The state allows payment of 23 different business taxes via the portal, including the state sales tax, cigarette taxes, the public utilities tax, withholding tax and assorted other taxes.

"'From mom and pop coffee shops to Fortune 100 companies, businesses now have the ability to pay their taxes with OhioCrypto.com,' the Ohio Treasurer's website says.

"For security purposes, a business must have a profile on file with the state Treasurer’s office... There's an initial three-month window where no fees will be charged. After the introductory period, the transaction fee will be 1 percent. The added cost would be lower than charges for using a credit card, the state said....

"Ohio's state treasurer Josh Mandel told CNBC that the Buckeye State is looking to attract blockchain start-ups with its new acceptance of bitcoin for taxes. Blockchain has the potential to revolutionize the financial services industry by making payments faster, more secure, and less expensive on a global scale, according to industry backers....

"In May, General Motors and Ford joined BMW and Renault and other firms to create the Mobility Open Blockchain Initiative to explore how manufacturers could tap into this new technology."

Read more: https://www.msn.com/en-us/news/other/why-ohio-bitcoin-tax-gimmick-is-like-paying-with-beanie-babies/ar-BBRnE2z
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Why libertarians like Bitcoin

The Libertarian Case for Bitcoin | Hacked: Hacking Finance - William Bartlett:

August 23, 2018 - "From the outside looking in, Bitcoin seems to have a cult-like following.... However, as you get to understand crypto a little better, it becomes clear that there are many different factions.... There are the technologists who think technology is king, [the] contrarians who believe that the US dollar and all fiat currencies are overvalued, and then there are the libertarians who want to have as much freedom from the government as possible.

 "At its core, libertarianism is a political philosophy that gives individuals rights to acquire, keep, and exchange their holdings. It is a very 'American' point-of-view, and has gained a lot of support in recent times, due to the rising fiscal deficit, among other things.... To libertarians, the ideal is to have minimum intervention from the state.

"This also involves locking middlemen and intermediaries out of the equation. Oligopolies such as the one the big banks currently hold end up giving them a 'government-level' of control over the funds of customers. Bitcoin disintermediates these banks and creates a natural market for all who wish to do commerce online.

"An auxiliary point would be the somewhat excessive intervention in the money markets by the Fed. Denationalization of currency is a position most libertarians take as another way of protecting their money from purposeful inflation.

"What is especially beautiful about Bitcoin is the fact that it is censorship resistant. Not only is there economic freedom, but also the ability to fund whatever you would like, but without worrying about being stopped. This is true 'freedom of expression' (another libertarian ideal). Obviously there are cases where this goes too far (e.g. terrorism) and this is where the debate about Bitcoin’s place in society heats up.

"Bitcoin also goes in direct conflict with the government’s desire to track the flow of money for taxation and regulatory purposes. It is very difficult for governments to track the flow of Bitcoin funds, and even though it’s possible to match up public addresses, anonymity is generally ensured. And for those looking for a more robust solution, other privacy coins like zCash and Monero have popped up.

"Aside from Bitcoin, you have numerous new 'markets' popping up where there used to be inefficient markets with minimal innovation. Utility coins are putting a value on what used to be deadweight loss in the markets. This connects to Bitcoin with the idea of 'economic liberty', where they have property rights and fully privatized free markets."

Read more: https://hacked.com/the-libertarian-case-for-bitcoin/
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Bitcoin catching on at retail in Keene NH

Keene Dentist, Vape Shop, Indian Restaurant, & Hair Salon Now Accepting Bitcoin & DASH! | Free Keene - Ian Freeman:

July 27, 2018 - "Keene and Portsmouth New Hampshire are two hotspots in the world of cryptocurrency. The Western and Easternmost cities in New Hampshire are living proof that cryptocurrency like Bitcoin or DASH can be used successfully at retail, with multiple downtown local mom-n-pop businesses accepting crypto at point-of-sale.

"Keene’s newest vape shop, Lineage Vapors recently opened in the Center at Keene on Gilbo Ave and is accepting both Bitcoin (BTC) and DASH.... That makes Lineage Vapors the third business in the Center at Keene that accepts crypto. Little Zoe’s Pizza was first and was recently joined by Curry Indian Restaurant who serves excellent Indian and Pakistani cuisine seven-days-a-week for both Bitcoin (BTC) and DASH. Not only is the food great, it’s also nice to know that cryptocurrency ... can also easily be sent internationally if needed, for next to no cost. This can surely help families like the Alis who run Curry Indian [to] send money to relatives worldwide, bypassing the expensive, slow, old money methods of remittances like Western Union and the big banks....

"[A]dd dentistry to the list with Dr. Drower Dentistry receiving coverage in the Keene Sentinel for accepting cryptocurrency. In his press release announcing the welcoming of cryptocurrency-paying patients, Dr. Sean P. Drower said, 'For digital coin to become useful in everyday life people need to be able to use it as currency, for something besides speculative investing'.... Dr. Drower Dentistry, Curry Indian, and Lineage Vapors are all part of the DASH-Back program active now in Keene, where customers get an instant rebate in DASH whenever they spend DASH in Keene and at other New Hampshire merchants. DASH-Back is really cool and only happening in New Hampshire, thanks to Portsmouth-founded Anypay.global, the merchant point-of-sale crypto processor.

"Also joining DASH-Back in Keene is longtime crypto-friendly Main St. hair salon, Moda Suo. Proprietor Nicholas Sansone was one of the original Bitcoin-accepting downtown businesses, however ... this week Moda Suo upgraded to the Anypay Point-of-Sale system, enabling DASH-Back for any customers who pay with DASH....

"[T]here’s a business-to-business crypto economy already developing. Business owners who are accepting crypto are finding ways to spend it with other crypto-accepting Monadnock businesses.... Multiple local businesses have purchased advertising in the Monadnock Portal Map with cryptocurrency. Even radio ads are now available for crypto in Keene thanks to the sales manager at classic rocker 101.9 The Peak and sports radio 93.5 WEEY."

"According to Coinmap.org, Keene already handily beats major cities like San Francisco and New York when ranked per capita for crypto-accepting merchants. It’s only going to get better as more liberty-friendly cryptocurrency advocates move to New Hampshire as part of the NH freedom migration and add their economic strength to the area!"

Read more: https://freekeene.com/2018/07/27/keene-dentist-vape-shop-indian-restaurant-hair-salon-now-accepting-bitcoin-dash/
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Austin Petersen loses Missouri Senate primary

Bitcoin-Friendly U.S. Senate Candidate Austin Petersen Loses Republican Primary -
CCN:

August 8, 2018 - "Pro-bitcoin U.S. Senate candidate Austin Petersen has lost his Republican primary bid to challenge incumbent Missouri Sen. Claire McCaskill in the upcoming mid-term election.

"Petersen, who accepted the largest single bitcoin donation in federal election history and was also forced to return several six-figure cryptocurrency contributions due to campaign finance regulations, was soundly defeated by Attorney General Josh Hawley, who received 58.6 percent of the 663,553 votes...

"Despite garnering endorsements from several state-level Missouri politicians, Petersen finished a distant third, receiving 8.2 percent of the vote and coming in just behind Tony Monetti, who had been endorsed by former Alaska Gov. Sarah Palin.

"Petersen’s candidacy was always a longshot, and the Republican National Committee (RNC) had already begun campaigning for Hawley long before last night’s primary. Hawley had also won endorsements from major local newspapers, including the Kansas City Star, who said that many of Peterson’s ideas are “best left to theoretical discussions in academia, or ignored altogether'....

"For cryptocurrency supporters, Petersen’s candidacy marked an opportunity to add another pro-bitcoin voice to Congress.... As CCN reported, some legislators — such as Congressional Blockchain Caucus members Rep. Jared Polis (D-CO) and Rep. Bob Goodlatte (R-VA) — have embraced the burgeoning field, while others, perhaps most notably Rep. Brad Sherman (D-CA), have called for the government to pursue an outright ban on cryptocurrency.

"Previously, Petersen ran for president as a Libertarian Party candidate during the 2016 presidential election, finishing second ... to former New Mexico Gov. Gary Johnson, who ultimately received 3.28 percent of the popular vote."

Read more: https://www.ccn.com/bitcoin-friendly-u-s-senate-candidate-austin-petersen-loses-republican-primary/
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WI Libertarian told not to accept Bitcoin donations

Libertarian candidate accepts Bitcoin donations that could be illegal - Max Bayer, Milwaukee Journal Sentinel:

July 23, 2018 - "The Libertarian candidate for governor says he will accept campaign donations in Bitcoin, despite a state Ethics Commission finding that such donations appear to be illegal.

 "'We will not allow the lack of appropriate interpretation of the current statute (to) affect the First Amendment rights of those who want to show support and contribute,' said a statement from Phil Anderson, who is running for governor and is the chairman of the state Libertarian Party. 'I have no faith in the Assembly to handle this fairly nor expeditiously.'

"Anderson asked the Ethics Commission to allow candidates to accept Bitcoin and other forms of cryptocurrency. In May, the commission referred the matter to the Legislature because it found a contribution in cryptocurrency 'does not appear to fit' the acceptable categories spelled out in statutes ... [and] suggested the Legislature address two facets of cryptocurrency: its constantly changing value and the anonymity of donations....

"Cryptocurrencies, such as Bitcoin and Etherium, are internet-based currencies that can be used to buy goods or services. They were founded on the principle that currencies should be decentralized.

"Anderson emphasized that he believes he and his party are complying with the law.... If a complaint is filed against him and the Ethics Commission intervenes, Anderson said he and the party are 'going to push back all the way'....

"Anderson said there shouldn't be any concern regarding donations to his campaign. His portal uses Bitpay and requests donors' names, addresses and phone numbers."

Read more: https://www.jsonline.com/story/news/politics/2018/07/23/libertarian-candidate-accept-bitcoin-donations-despite-warning-ethics-commission/807234002/
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Bitcoin and climate change (I)

Devourer of Worlds: Bitcoin’s energy use got studied, and you libertarian nerds look even worse than usual | Grist - Eric Holthaus:

May 17, 2018 - "Bitcoin’s energy footprint has more than doubled since ... six months ago. It’s expected to double again by the end of the year, according to a new peer-reviewed study out Wednesday. And if that happens, bitcoin would be gobbling up 0.5 percent of the world’s electricity, about as much as the Netherlands.

"That’s a troubling trajectory, especially for a world that should be working overtime to root out energy waste and fight climate change. By late next year, bitcoin could be consuming more electricity than all the world’s solar panels currently produce — about 1.8 percent of global electricity, according to a simple extrapolation of the study’s predictions. That would effectively erase decades of progress on renewable energy....

"Beyond its tentative success ... bitcoin has an increasingly real-world cost. The process of 'mining' for coins requires a globally distributed computer network racing to solve math problems — and also helps keep any individual transaction confidential and tamper-proof. That, in turn, requires an ever-escalating arms race of computing power — and electricity use — which, at the moment, has no end in sight. A single bitcoin transaction is so energy intensive that it could power the average U.S. household for a month.

"A fluctuating bitcoin price, along with increases in computer efficiency, has slowed the cryptocurrency’s energy footprint growth rate to 'just' 20 percent per month so far in this year. If that keeps up, bitcoin would consume all the world’s electricity by January 2021.

"That simply won’t happen — government regulators would surely come to their senses by then — but it is a sign of bitcoin’s disastrous growth rate....

"It’s a telling social phenomenon of late capitalism that we are willing to construct elaborate computer networks to conduct secure transactions with each other — and in the process torpedoing our hopes at a clean energy future."

Read more: https://grist.org/article/bitcoins-energy-use-got-studied-and-you-libertarian-nerds-look-even-worse-than-usual/
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Also read: Bitcoin and climate change (II)

Bitcoin and climate change (II)

No, Bitcoin Won't Boil the Oceans - Bloomberg - Elaine Ou:
Concerns about the cryptocurrency's energy use are overblown.

December 7, 2017 - "While much of the world marvels at bitcoin’s meteoric rise, another part is focused on an environmental byproduct: The sheer amount of electricity that crypto-currencies use. By some estimates, bitcoin’s consumption alone exceeds -- or will exceed -- that of Ireland, Denmark, Japan or even the entire world....

"Digital currency is wasteful by design. Bitcoin 'miners,' who process transactions in return for new currency, must race to solve extremely difficult cryptographic puzzles. This computational burden helps keep the transaction record secure -- by raising the bar for anyone who would want to tamper with it –- but also requires miners to build giant farms of servers that consume vast amounts of energy. The more valuable bitcoin becomes, the more miners are willing to spend on equipment and electricity.

"Still, it’s important to put things in perspective. A recent report suggests that at current prices, Bitcoin miners will consume an estimated 8.27 terawatt-hours per year. That might sound like a lot, but it’s actually less than an eighth of what U.S. data centers use.... It also compares favorably to the currencies and commodities that bitcoin could help replace: Global production of cash and coins consumes an estimated 11 terawatt-hours per year, while gold mining burns the equivalent of 132 terawatt-hours. And that doesn’t include armored trucks, bank vaults, security systems and such....

"What’s more, bitcoin’s consumption won’t necessarily keep rising as it has. Data centers, for example, have gotten a lot better. Not long ago, the Department of Energy was predicting that their electricity use would double every five years.... In recent years, though, the centers’ total electricity use has flattened even as their number has kept growing ... better cooling and power management technology improved efficiency. Bitcoin miners are no less motivated by profit, so it stands to reason that they will seek to become more efficient....

"It’s easy to criticize bitcoin for being wasteful. But so are many things in life, including airplanes, commuting to work and Sunday Night Football. A return to subsistence farming could drastically reduce our carbon footprint, but sometimes using energy to improve our quality of life is worthwhile....

"How much is sound money worth? How about the ability to send money freely across borders?... Or to own an asset that can’t be seized? People in the U.S. and other developed countries might take these things for granted, but people in places like Zimbabwe and Venezuela are turning to bitcoin for survival. So perhaps all those computations aren’t wasteful: Maybe the miners are simply transforming the energy into something more valuable."

Read more: https://www.bloomberg.com/view/articles/2017-12-07/bitcoin-is-greener-than-its-critics-think
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Also read: Bitcoin and climate change (I)

McAfee no fan of regulating cryptocurrencies

A libertarian - John McAfee is not sure of the need for regulations - AMBCrypto - Stuthie Murthy

May 15, 2018 - "John McAfee, the world’s leading security expert and a great online influencer sat down for an interview with Ovenized Oscillator from Crypto world news where he spoke about the current state of cryptocurrencies in terms of regulations and other things.

Is a regulation necessary or beneficial?
'Keep in mind politically I am libertarian so, I do not hold any regulations - as individuals we are required to be self-regulated,' began McAfee.... 'Life is not a safe affair, it has never been. There are risks, it’s far more life-supporting to accept those risks than to delegate your safety to some outside agency which really cannot protect you.'

Can regulations help in some ways at least a little bit?
"I am not sure, said John, as he explained ... according to him, the SEC continues to insist that coins are securities, they are not. 'By definition, ... if I own 1% of a company, I own 1% of everything in the company. If I buy Bitcoin, does Satoshi owe me something or is there a company behind that you owe to? No, I would say it is a look-alike. Do these things need to be regulated? It’s one-way and I am not sure which type of regulation makes any sense.'

What can people possibly do to jump a group of horrible ICO scam projects?
"According to ... John, the Internet is the greatest tool that was ever created ... with the blogs, chat rooms, etc. If one is interested in an ICO, he suggests they go and read about them. 'There are a lot of channels and groups available where anybody can see what people are [saying] about it, analyze it regarding the founders, creators, open-source project, experience in the past, and it is all basically huge common sense. The best way is to join the community and talk with others before jumping into any conclusion.'

"D-Tech Analytics, a YouTuber commented:
'Great interview. I totally agree with Mr. McAfee’s view on regulations. Regulations didn’t stop those scammed by Madoff, Bernard Ebbers or Kenneth Lay all multi-billion-dollar scams. If the same regulations that are applied to stocks get applied to crypto, the majority of the US crypto traders couldn’t continue to day trade due to the Pattern Trader Regulations. Be careful what you wish for.'"

Read more: https://ambcrypto.com/libertarian-john-mcafee-not-sure-need-regulations/
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Bitcoin embraced by libertarians, investors

Bitcoin buyers with a libertarian bent drive prices to records - Jon Swartz, USA Today:

"September 21, 2017 - "Aaron Hanson, a software engineer from Chicago ... uses bitcoin wherever he can — to buy food at an empanada restaurant, airline tickets, his honeymoon in Africa this year — listing it alongside technology and individual freedom as his three beliefs in life.

"Austin Craig, a practicing Mormon who attended Brigham Young University, went a step further: He lived entirely on bitcoin during the first three months of his marriage and chronicled it in a documentary, Life On Bitcoin....

"For many, it is a lifestyle, something to be valued more than gold for financial investments and shielding personal information from the prying eyes of a distrusted government.

"Most Americans (78.5%) are familiar with the cryptocurrency, according to a survey of 1,000 Americans by LendEDU, a personal finance comparison site. But 48% aren't sure it's legal and 11% consider bitcoin ownership illegal in the U.S. Still, 40% were open to using bitcoin in the future, says Michael Brown, research analyst at LendEDU....

"The digital currency, whose finite quantities are created by computer programs, trades outside the traditional financial system, an attraction for people who have doubts — or at least seek an alternative — to mainstream institutions.

"'There’s certainly a libertarian feel' to the beliefs of bitcoin users, says Melanie Shapiro, CEO of Token, an identity-ring maker in New York. 'But we’re technologists, and technology provides freedom' from centralized government systems....

"The currency, which surfaced in early 2009 from someone using the name of Satoshi Nakamoto, has slowly evolved from cult curiosity to widespread lifestyle choice, with elements of political and religious fervor.

"What began as a currency championed by libertarians advocating decentralized currency or  criminals trying to avoid law enforcement has been embraced by venture capitalists and investors. It's not mainstream yet — too many people are wary of its high risk and complicated tools — but it's getting there.

"'It is the first global, highly liquid form of currency,' says Mike Jones, CEO of Science, a business incubator that owns and trades cryptocurrency. 'Much more so than than gold. It is about opening financial markets globally.'

"'It is digital gold,' says Overstock CEO Patrick Byrne, whose online retailer was one of the first to accept bitcoin payment."

Read more: https://www.usatoday.com/story/tech/news/2017/09/21/bitcoin-buyers-libertarian-bent-drive-prices-records/594971001/
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Venezuelans turn to bitcoin as currency collapses

Why Venezuelans Are Turning to Bitcoin Mining - The Atlantic - Rene Chun:

September 2017 issue - "In Venezuela, home to some of the worst hyperinflation since the Weimar Republic, a Big Mac costs about half a month’s wages. Or rather, it did, until a bread shortage forced the burger off the menu. The annual inflation rate is expected to hit 1,600 percent. Life resembles an old newsreel: long lines, empty shelves, cashiers weighing stacks of bills.

"To survive, thousands of Venezuelans have taken to minería bitcoin — mining bitcoin, the cryptocurrency. Lend computer processing power to the blockchain (the bitcoin network’s immense, decentralized ledger) and you will be rewarded with bitcoin. To contribute more data-crunching power, and earn more bitcoin, people operate racks of specialized computers known as 'miners.' Whether a mining operation is profitable hinges on two main factors: bitcoin’s market value — which has hit record highs this year — and the price of electricity, needed to run the powerful hardware.

"Electricity, it so happens, is one thing most Venezuelans can afford: Under the socialist regime of President Nicolás Maduro, power is so heavily subsidized that it is practically free. A person running several bitcoin miners can clear $500 a month. That’s a small fortune in Venezuela today, enough to feed a family of four and purchase vital goods — baby diapers, say, or insulin — online....

"But recently, Maduro has begun cracking down on mining operations, apparently finding in them a convenient political scapegoat — much as he calls those who seek to profit off inflation “capitalist parasites.” Yet trading bitcoin is still condoned. It’s as if Maduro realizes that cryptocurrency is one of the few things holding the country together.

"Because Venezuela has no cryptocurrency laws, police have arrested mine operators on spurious charges. Their first target, Joel Padrón, who owns a courier service and started mining to supplement his income, was charged with energy theft and possession of contraband and detained for 14 weeks. Since then, other bitcoin rigs have been seized — and, in many cases, rebooted by corrupt police for personal profit....

"Venezuela’s most resourceful miners ... are moving on to a new inflation-buster: the cryptocurrency ether (ETH). The profit margins are higher and, more important, the risk factor is much lower. 'Mining ETH or bitcoin is pretty much the same principle: using free electricity to generate cash,' one Venezuelan miner told me. 'But ETH mining is more affordable — all you need is free software and a PC with a video card. Any police officer is easily fooled into thinking your ETH miner is just a regular computer.'"

Read more: https://www.theatlantic.com/magazine/archive/2017/09/big-in-venezuela/534177/
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Bitcoin recognized as legal tender in Japan

Japan Officially Recognises Bitcoin as Currency Starting April 2017 - NEWSBTC - Gautham:

April 2, 2017 - "Bitcoin has finally gained the recognition of a mainstream currency along the lines of other fiat currencies. The privilege follows the implementation of a new law in Japan which categorizes Bitcoin as a legal payment option within the country. The much-awaited law went into effect on April 1, 2017 (beginning of a new fiscal year in many countries).

"With the new law’s implementation, Bitcoin exchanges will also come under additional regulatory scrutiny. The recognition of cryptocurrency as a legal tender also means the applicability of regulations governing banks and financial institutions to cryptocurrency exchange platforms. They will be required to comply with strict anti-money laundering (AML) and Know Your Customer (KYC) requirements, along with annual audits. Other requirements include meeting the stated capital and cyber security requirements to ensure consumer protection.....

"However, reports indicate that the cryptocurrency platforms are still trying to figure out ways to achieve compliance with the new regulations. Recognizing the exchanges’ needs, the Accounting Standards Board of Japan has announced that it has started working on creating an accounting framework for both user and businesses dealing with cryptocurrencies.

"It might take a while before companies and individuals get acquainted with the accounting practices, which has raised concerns about legal implications of inaccurate reporting’s/filings due to lack of understanding. Also, few publications have raised concerns about the volatility of Bitcoin and other cryptocurrencies and how it might impact those making cryptocurrency transactions.

"The new developments are expected to drive the cryptocurrency usage in Japan to over $9 billion in the next three years (2020), which is more than five times the 2015’s $1.7 billion worth of cryptocurrencies in circulation."

Read more: http://www.newsbtc.com/2017/04/02/japan-officially-recognises-bitcoin-currency-starting-april-2017/
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Technology Trumps Politics

The Blockchain Matters More than the President | Foundation for Economic Education - Jeffrey A. Tucker:

January 19, 2017 - "After a wildly contentious election season, you might get the impression that the future of the country, if not the world, hinges on the quality and ideology of top-down leadership. That’s actually wrong. Very little was said during the entire election about digital technology; nothing ever came up concerning distributed ledgers and the remarkable invention of a fully private currency that lives on the Internet and works without third-party intermediaries....

"It’s a paradigmatic case of how the structure of technology in our time has flipped the traditional model of what makes societies tick and what drives history forward. As we are learning, presidents and parties come and go; what persists and what keeps advancing regardless of political trends are the tools we use to improve our lives....

"Bitcoin has matured beautifully since its release in 2009. It has long since moved past the incredulity stage, though apparently skeptics will always be with us. What we see now is the drive toward mass adoption and industry application in every area, from payment processing to enterprise-building to security titling and contracting....

"Bitcoin is a market-based money and payment system that operates on its own, without the need for regulators, central banks, or even financial intermediaries. It is not only a money and payment system, however; it is also a system for bundling, documenting, and trading immutable packets of any kind of information that can include contracts, property titles, or any other form of human agreement, regardless of geographic proximity. This means that the resulting currency and/or information system operates completely outside borders and outside the domain of the nation-state....

"And why does it matter? Everyone has his or her own opinion on this. My angle is monetary. If there can be a parallel currency to nationalized monies, developing in tandem, the world economy is granted a future beyond the current miasma. So many modern problems and horrors trace to government money: economic depressions, declining incomes, wars, government growth and debt, cultural destabilization, and so much more. Finding a solution to this problem, and a path for reform, is a priority for anyone who loves liberty....

"The Bitcoin system is being developed in the context of consensus from actual stakeholders and tested by market results. This is the right path forward. Whatever the results, they stand a much stronger chance of putting the world economy on a forward path than any legislation or executive order coming from any government or political party."

Read more: https://fee.org/articles/the-blockchain-matters-more-than-the-president/
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Ethereum, a censorship resistant 'world computer'

Ethereum Project Offers Censorship Resistant 'World Computer' for Developers - Breitbart - Tom Ciccotta :

January 3, 2017 - "The Ethereum Project, an open source platform developed by 22-year old programmer Vitalik Buterin, is seeking to build upon the blockchain technology established by Bitcoin by allowing developers to use the blockchain to build decentralized applications.

"The blockchain is a decentralized database where records and entries are virtually unchangeable. While Bitcoin utilizes blockchain technology to manage a currency, the Ethereum Project provides an open source environment where programmers can create applications on the blockchain.

"Tristan Winters, a reporter at ETHNews, the leading online Ethereum news site, explained to me the Ethereum project in layman’s terms: 'Ethereum is a "world computer." Instead of hosting apps on a server, you host them on the Ethereum blockchain and p2p network.... So the apps are censorship resistant and no one can shut them down'....

"Ethereum is driven by Ether, a cryptocurrency that acts as 'fuel' for the system. According to the project’s website, Ether is a necessary element that ensures that developers are writing quality applications ... (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources).

"Because of the open source nature of Ethereum, it has almost limitless functions. Developers have proposed and began work on decentralized file storage systems, financial systems, and business management systems.

"Ethereum allows actors to create smart contracts, which are programs that run on the blockchain that can handle currency in a way that is unchangeable. Smart contracts can be used for a variety of business functions, such as the representation of shares, organizational voting, and fundraising.

"The decentralized nature of the Ethereum blockchain would allow for social networks that are truly resistant to censorship. Unlike Facebook or Twitter, a social network operating on Ethereum wouldn’t be accessed via centralized servers. Such a network would exist as a peer-to-peer network that lives on computers throughout the world. Because such a network would have no centralized body, censorship would be extremely difficult."

Read more: http://www.breitbart.com/tech/2017/01/03/ethereum-project-offers-censorship-resistant-world-computer-for-developers/
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Bitcoin goes retail in Portsmouth, New Hamphire

Making Bitcoin Real: Portsmouth, NH, Businesses Begin Accepting BTC - Joel Valenzuela, Cointelegraph:

August 26, 2016 - "Another establishment has begun accepting Bitcoin as payment in what is fast becoming one of the most Bitcoin-centric towns in the United States.

"Street, a posh restaurant featuring food inspired from around the globe, began accepting Bitcoin earlier this month. The integration came as a result of outreach by Steven Zeiler, a local software developer and Bitcoin evangelist, who has also succeeded in getting a local yoga studio he frequents to take Bitcoin.

"Matt Carano, owner of The Music Class (which also takes Bitcoin) and former owner of the Pão Cafe,  one of the first restaurants in New Hampshire to take Bitcoin ... appreciates the ability to use Bitcoin locally, not just through online transactions....

"According to Mike Vine, technology evangelist for the Blockchain-based content-sharing platform LBRY, New Hampshire’s vibrant Bitcoin scene can be traced back to the Free State Project involvement....

"The Free State Project hosts the Porcupine Freedom Festival, or PorcFest, a weeklong festival in a mountain campground with a heavy emphasis on Bitcoin and decentralized technology. Largely thanks to the efforts of the Free State Project movers, New Hampshire ranks as one of the world’s most Bitcoin-friendly places.

"A touristy, seaside town of only 20,000 residents in a mostly rural state with a low population, Portsmouth is an unlikely destination for a vibrant Bitcoin community. Yet, in addition to the above mentioned businesses, it is also home to several Blockchain startups.

"Vine also founded the Praxeum, a Portsmouth-based co-working and community space, with Carano. He sees New Hampshire as a future renowned hub of Blockchain and decentralized tech innovation....

"Arcade City, the Blockchain-based ride-sharing service with a new app slated for release on September 1st, was founded in Portsmouth, and owes its origin to the Free Uber campaign, which protested against the city’s ride-sharing regulations by Bitcoin-funded swarm activism."

Read more: https://cointelegraph.com/news/making-bitcoin-real-portsmouth-n-h-businesses-begin-accepting-btc
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Four freedom-empowering technologies

Technology That Enables Liberties - The Libertarian Republic:

April 15, 2016 - "The FBI would have you believe otherwise, but technology empowers freedom for both Americans and people all over the world. The government agency recently clashed with Apple for access to a locked iPhone that belonged to one of the shooters in the San Bernardino massacre that killed 14 people in December 2015.... Driven by the fear of terrorism, the FBI assumed it would have the public’s support against Apple. But the FBI was wrong — America rallied behind Apple and the FBI quickly dropped its legal push to force Apple to unlock the iPhone.

"Technology, privacy and freedom are big topics in 2016, and the case of the FBI vs. Apple is only the most recent point in the long debate. The following pieces of technology, both present and in the future, give you freedom and privacy, despite what the government thinks about them.

"Smartphones & Encryption: The default text message technology used in iPhone-to-iPhone communication, iMessage, is encrypted to the point that even Apple doesn’t know what you’re sending.... WhatsApp, one of the most popular messaging services in the world, recently turned on encrypted messaging for more than a billion users.... So now ... you can enjoy the same level of privacy.

"Tor & The Dark Net: While many people associate the dark net with the Silk Road, the online drug trafficking site that was shut down several years ago, it’s really nothing more than an encrypted version of the Internet. Tor uses several public IP addresses, so your activity can’t be tracked online, and you can build websites only accessible by Tor. So, yes, that sort of privacy did lead to the Silk Road, but it could also help someone organize a peaceful protest without a government prying in.

Bitcoin: Bitcoin is another technology that some people associate with illegal activity... However, it’s growing in popularity and available for more regular purchases. So how does Bitcoin empower your freedom? Imagine using it to support a non-establishment political candidate or to buy a controversial book.... The truth is, people can see what you buy with credit cards and bank accounts, but Bitcoin is a way to circumvent that.

3-D Printing: Also known as additive manufacturing, 3-D printing could be the most liberating technology next to encryption. While governments both in the United States and around the world regulate what you can and can’t buy or own, a 3-D printer puts the power back in your hands.... Now that small 3-D printers are more affordable, it’s realistic for Americans to own one."

Read more: http://thelibertarianrepublic.com/technology-that-enables-liberties/
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First Canadian university bookstore takes Bitcoin

Digital currency on campus: buy Bitcoin and books at SFU - SFU News, Simon Fraser University - Justin Wong:

May 26, 2015 - "Simon Fraser University (SFU) is the first Canadian post-secondary institution to accept Bitcoin for the purchase of textbooks, and to install automated Bitcoin vending machines (AVMs) campus-wide.

"The bookstores at each of the three campuses in Vancouver, Burnaby and Surrey have already installed the AVMS and [are] accept[ing] the virtual currency for retail transactions beginning May 26.

"'It is our mission to challenge and engage students and provide them with learning opportunities not only inside the classroom but also outside,' says Mark McLaughlin, executive director of ancillary services.

"'SFU has one of North America’s most prominent Bitcoin student clubs and they have asked us to help introduce Bitcoin to the SFU community. As a university focused on innovation, we want to provide our students the opportunity to try digital currencies like Bitcoin through AVMs and within the bookstore and other retail locations on campus'....

"All of this is about more than just using Bitcoin to buy textbooks or support academia. McLaughlin says it will foster a dialogue about the future of currency and disruptive technologies. Vancouver is developing into the Canadian hub for digital finance and SFU wants to play an enabling role in its development, he says.

"'What we’re trying to do is get students to talk about innovation and try Bitcoin,' says McLaughlin. 'The only way to have an opinion about digital currencies is to learn about it, and we are providing a first-hand experience.'"

Read more: http://www.sfu.ca/sfunews/stories/2015/digital-currency-on-campus-buy-bitcoin-and-books-at-sfu.html
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'Libertarian utopia' at Porcupine Freedom Festival

Inside the libertarian version of Burning Man: Guns, booze and bitcoin - The Washington Post - Ben Terris:

July 2, 2014 - "Like any good bonfire, the evening ritual at the Porcupine Festival deep in the White Mountains of New Hampshire, includes a drum circle, plumes of marijuana smoke, shared bottles of whiskey and spirited debate.

"There are also guns. Lots of guns....

"Once a year for the past 11 years, this campground in the northern part of the Granite State turns into a libertarian utopia. And this year, roughly 2,000 people — mostly white men — have paid between $45 and $100 to experience for one week what life would be like without the onerous mechanisms of laws, if the market ruled to the exclusion of all else. Want to wear a loincloth and sell moonshine, shop at an unregulated market that accepts Bitcoin and silver, or listen to a seminar called “How the Collapse of the State is Inevitable”? Then this is the place for you....

"Porcfest — as it’s known here — is put on by the Free State Project, a group dedicated to recruiting at least 20,000 libertarians to move to New Hampshire. The idea — that a group of this size can make a difference in a state with a low population — came from an essay in 2001 by then-Yale doctoral student and current Dartmouth lecturer Jason Sorens. Thirteen years later, the FSP has had nearly 16,000 people sign a 'statement of intent' to move. The plan is that when 20,000 people sign the list, it will 'trigger' a large migration. Somewhere in the neighborhood of 1,500 people have moved already."

Read more: http://www.washingtonpost.com/lifestyle/style/inside-the-libertarian-version-of-burning-man-guns-booze-and-bitcoin/2014/07/01/74d9d996-ffcf-11e3-b8ff-89afd3fad6bd_story.html
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Free State Project testing ground for freedom-enhancing technology

The Free State Project: A Libertarian Testing Ground For Bitcoin, 3D Printers, and Drones - Kashmir Hill, Forbes:

June 12, 2014 - "Long before billionaire venture capitalist Peter Thiel dreamed up the idea of a floating libertarian island nation, a 24-year-old Yale grad student named Jason Sorens proposed a far more down-to-earth experiment for those who wanted to live the limited government lifestyle: that a critical mass of 'freedom-loving people… establish residence in a small state and take over the state government.'

"The 'Free State Project' call to action was in 2001. By 2003, five thousand people agreed to take part and they held a vote to decide which low-population state would be the staging ground for the libertarianvasion, which would be triggered when 20,000 people signed on. New Hampshire (population: 1.3 million) won ... and early movers began trickling in to help the state fully realize its 'Live Free or Die' motto....

"Thirteen years later, there are over 2,000 Free Staters scattered around New Hampshire and the petition is now 4,000 signatures short of triggering the full move....

"I was invited to snowy New Hampshire this February ... because Free Staters were interested in two things I write about: Bitcoin and corporate privacy practices. I discovered that this isolated group has fully adopted Bitcoin, and that it’s extremely enthusiastic about other 'freedom-enhancing' technologies such as 3D-printers and encryption. Everyone I met in the Project owned Bitcoin and was willing to accept it for goods and services. Of the couple thousand people living there, at least seven own 3D-printers. Though the idea originally was to get a critical mass to influence the political process, many in the movement now feel that the freedoms they want may be better realized through technology that routes around the government rather than engaging it directly."

Read more: http://www.forbes.com/sites/kashmirhill/2014/06/12/the-free-state-project-a-libertarian-testing-ground-for-bitcoin-3d-printers-and-drones/
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