Rigging the crypto currency markets

Rigging The Crypto Currency Markets

The news that US regulators are investigating crypto currency exchanges for illegal rigging activities should come as no surprise to anyone.

When you are in the Wild West, anything goes, and can go on for as long as no one pulls the plug on it.

But this particular move is all part of the worldwide efforts by regulators and central banks to bring some oversight and order to the crypto world. Think of the Wild West and how law and order came to it over a period once the abuses became so much that Washington got involved. The same is now happening with blockchain and crypto currencies – not a surprise to us at Scotcoin. We have been preaching about how regulation was coming and how this was a good thing for over two years now. Our new permissioned blockchain will handle all these requirements as a prerequisite.

What this also emphasises is how right we were to be happy to remove from Bittrex. The total speculation and pump and dump culture had no part in what we have been building.

There are still people who view cryptos as get rich quick schemes. Indeed I was looking at some exchanges on our Twitter (which please follow!) where someone was looking to buy something he could rapidly sell at a profit. That is actually counterproductive in terms of the evolution of digital currencies. If people are to have trust in them, they have to be sure of the value at any given point. Arguably, the worst offender is Bitcoin – A year ago $1000, Christmas $20,000, now $6500. How on earth can any business plan its forward sales and cash flows dealing with that?

Ideally you want a very slow and steady increase in price over time. Most people will by now have forgotten the German “Wirtschaftswunder” (Economic Miracle) of the 1950s ,60s and 70s. It is a given nowadays that Germany is one of the pre-eminent economies in the world. Not so after WW2 and into the early 60’s. Ludwig Erhard – the then German Economics Minister, equivalent to our Chancellor of the Exchequer – believed there was a way to guarantee economic growth. It wasn’t quantitative easing on a grand scale (as people seem to believe erroneously nowadays). He believed that what gave business the confidence to invest and grow was certainty. So he said categorically that the money supply would grow at 2% pa for the foreseeable future – no more and no less. And he stuck to that religiously for 20 odd years. He was so successful he ended up as German Chancellor.

We at Scotcoin have the same philosophy. We don’t want ups and downs destroying trade. We want trade to grow and grow with confidence, in the way that the German economy grew mightily from the 1950’s onward. If we could replicate that in Scotland we would, as the saying goes, be quids in.

Webinar – June 2018

Project Update: May 2018

Beta testers required

Beta testers required to test our brand new blockchain – we’re looking for regular internet users, no special skills required.  The idea is to get as many people as possible testing the system for glitches, snafus and anything which is confusing…  Then report back!

Whilst the testing will be done in a virtual sandbox with no real money being exchanged, we’re happy to pay you in Scotcoin for your time and input.

Beta testers

Potentially those residing further from the test servers may experience longer transaction times, so we would like to measure this.

Please wait...


Happy World Bitcoin Pizza Day!

Back on May 22nd, 2010,  an extremely fortunate pizza vendor sold two pizzas, for 10,000 Bitcoins. Nowadays, those 10,000 Bitcoins are worth $34,500,000! 

Ten thousand coins were then worth about $40 (£30). A British user agreed to buy the pizza for this pizza-munching developer, and even at the time the buyer got a good deal out of it: The Brit paid only $25 (£19) for the two pizzas to be delivered to the developer.

From then on, Bitcoin users worldwide have celebrated on this day – so we have a little challenge for you… Your challenge is to swap your Scotcoin for something unusual today and tell us all about it – a beer? a bike? chocolate?

We want to know – leave your comments below… And you too, could go down in internet history!

florida cryptocurrency

Bitcoin starts to become mainstream – we’ve won!

florida cryptocurrencyThe news is that Seminole County tax collector Joel Greenberg will use Bitpay to accept tax payments in cryptocurrencies.

This represents a tipping point in the financial world unlike anything that has ever been seen. Greenberg says he wants to make his customer ‘s experience “faster, smarter and more efficient” and to bring government services “ out of the 18th Century into the 21st.”

He also said it would reduce identity fraud and increase the transparency and accuracy of payments.

Seminole is the first government agency to accept crypto, although Arizona and Georgia have both proposed laws to enable acceptance.

If what Greenberg says is true (and it is) then using Cryptos rather than fiat for these sort of payment makes absolute sense. It makes one wonder why it has taken so long for someone to break ranks and take the plunge.

It looks as though bitpay will do the necessary KYC checks and effectively sanitize the payments. This was always going to have to happen and all those who said otherwise were living in cloud cuckoo land.  We at Scotcoin – as we continually say – embraced the certainty of KYC and AML requirements long ago.

In case you haven’t heard it, William Gladstone, on seeing Michael Farraday’s electricity experiment, asked, “ But after all what use is it?”

Farraday smiled grimly: “ Why, sir, there is every probability that you will soon be able to tax it!”

And so it will prove….

“Designed to be not transparent” Really?

William Suberg , in CoinTelegraph, has reported an interview on CNBC.

In it, he quotes Bank of America (BoA) as reiterating its decision to stop customers buying Bitcoin with its credit cards. The bank’s official called cryptocurrency “troubling,” according to CNBC.

BoA’s CTO Kathy Bessant described cryptocurrencies as “troubling” and as being  “designed to be not transparent” and thus hinder banks’ attempts to catch “bad guys.”

“As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort, in fact [it’s] designed to be not transparent,” she told the program.

For Bessant, cryptocurrencies still represent the opposite of financial transparency.

“The way we sort of quote-unquote “catch bad guys” is by being transparent in the financial moment of money. Cryptos is the antithesis of that,” she added.

So there you have it. The Banks don’t like cryptocurrency because (as above in bold) there isn’t the transparency between sender and receiver. And guess what, if you know that, you can tax them.

We at Scotcoin have long said that Crypto and digital currencies would become regulated. That is what we have been working on for over two years and despite everyone telling us they “couldn’t” be and “wouldn’t” be, we now find ourselves at the very cutting edge of where this world is.

You can see in our other posts how much better we are going to be than Bitcoin. We look forward with confidence to this Brave New World.

Better Blockchain regulation needed – says former White House Regulator

Former White House financial regulator and Goldman Sachs partner, Gary Gensler, today called for better blockchain regulation.  He suggests that both Ether and Ripple may well have issues surrounding American securities regulations because of the way they have been traded.  Bitcoin remains unaffected but it opens up the debate on more regulation within the cryptocurrency world.

Mr Gensler joins the world famous M.I.T. lab as a lecturer and has no virtual currency investments himself, said he was not tied to any coin’s winning the race. But he does think changes are necessary before blockchains can go mainstream.


Scotcoin Offered To Scottish Government – Herald, 8 April

The cryptocurrency Scotcoin has been offered, free of charge, to the Scottish Government to make it the country’s official digital currency.

“I’d prefer to call it a donation to the Scottish people,” said David Low, co-owner of Scotcoin.

If the offer is accepted, Low wants the equivalent of £10,000 in Scotcoin to be given to every under-25 year old in the country. If it is rejected he will set up a Community Interest Company – one which uses profits and assets for the public good – and go ahead with the distribution of funds to help alleviate poverty and sustain community and charitable projects.

Lawyers for Low, and the Scotcoin Project – the educational, marketing and promotional face of the currency – last week wrote to Cabinet Secretary Keith Brown, responsible for jobs and the economy, outlining the proposal. The offer includes the intellectual property, trademarks, domain name and a portfolio of others domains. The letter was also sent to leaders of all the other parties at Holyrood.

Low said that Scotcoin was now in the process of constructing its own blockchain – the un-hackable software and public register of online transactions – as the present one is “cranky and rickety. We are setting up a state of the art new one”.

He continued, “The current one is fraught with hurdles, volatility, transaction costs, slowness and we will move more into the mainstream and all of the barriers will be removed. It will also meet all known UK regulations, so there will be protection against money laundering and it will have a Scottish domicile with an ethos of probity and substance.” It will, says Low, have “Scottish DNA will be all over it.”

If the offer isn’t taken up the community interest company, with a new CEO and a professional board, including international advisers, will administer the relaunched currency. It will have what is called a “pre-mined” money supply of which a proportion will be held by existing holders – including Sunday Herald readers who took advantage of the exclusive Scotcoin offer in August 2016 – strategic partners and others.

The uninissued money, with a current market value of £50 million, will be administered by the board with what the Low’s lawyers describe as “bottom-up quantitative easing for the principal benefit of the disadvantaged and deserving.” Young people will be encouraged to work with the homeless and in community ventures – “to do good deeds” – and will be paid in Scotcoin.

“They can keep the money or they can spend it,” Low said, “but obviously if they’re going to be paid in Scotcoin then they need to be able to spend it. We’re in the process of signing up strategic partners as both employers and businesses where the cash can be spent.”

Low, who was the architect of the Fergus McCann takeover of Celtic in 1994, said that the relaunched Scotcoin would be fully transferable to and from all major currencies, including dollars and sterling. “You’ll use a pre-paid card to shop, a bit like the present system where you can flash one and spend up to thirty pounds and its deducted from your bank account”.

Low’s proposal is not an entirely philanthropic gesture. He will continue to hold his own Scotcoins, which he believes will increase substantially in value, whatever the outcome of his offer to the Scottish Government.

“We believe in the future of digital coinage and the Scotcoin,” Low said. “It’s up to the Government to decide if they do or not.”

A Scottish Government spokesperson said: “We will respond to the letter in due course.”