Cryptocurrency FAQs

What is block chain and what is cryptocurrency? Is there a difference?

Blockchain is the enabling technology that underpins cryptocurrency. Cryptocurrency is money based on trust in cryptographic, mathematical proofs.

 

Why has block chain and cryptocurrency become so popular?

Crypto currencies are not inflationary. They are cheaper to transact and do not rely on third party involvement – it is straight peer to peer . Negative perceptions of future monetary trends have accelerated acceptance.

 

How many people are currently involved in cryptocurrency and will interest keep rising?

Approximately 16 million Bitcoin wallets and at least the same again in other crypto currencies. These figures are rising exponentially all the time. Interest will continue to rise as adoption and use continues to rise.

 

How safe is block chain?

Blockchain is based on incredibly complex cryptography. Mathematically it is safer than the chances of finding one specific grain of sand not just on earth but in the entire universe.

 

What is the difference between cryptocurrency and the money in my wallet?

The value of a crypto currency does not rely on issuance of money by governments or Central banks – hence no quantitative easing and falling value over time of your wallets content.

 

Will Cryptocurrency overtake money as we know it?

Indications are that it may eventually – growth will be exponential then explosive. Actual cash transactions are already disappearing fast.

 

What is an e-wallet?

A piece of software that allows you to transactyour crypto coins – it does NOT store them. A crypto wallet (e.g. freewallet.io) enables you to store and spend them.

 

Where can I spend my cryptocurrency?

Dell, Microsoft, Overstock, Expedia etc, all accept Bitcoin. Scotcoin will shortly be accepted in over 2000 places in UK. It was recently used to buy a flat.

 

How can I use my cryptocurrency?

With your crypto-wallet (e.g. freewallet.io)

 

Do I need to pay CGT on any gains made?

Yes HMRC treats any gains from any source in exactly the same way. Around 1000 people in the USA paid tax on their Bitcoin earnings last year.

 

Can I leave cryptocurrency in my Will?

Yes, make sure your beneficiaries get your pass phase(s) at the appropriate time. Lose the pass phrase and you lose the wallet and its contents. THERE IS NO RESET.

 

 

bitcoin vs scotcoin

Bitcoin versus Scotcoin

bitcoin vs scotcoinI’ve been busy recently with all the work going on in respect of our new private blockchain. Bitcoin of course has continued to rise (and may I say, I told you so every time it “crashed” it was going back up).

But the rise in Bitcoin has had a profound effect which is now changing the very nature of Bitcoin. The last two transactions I have wanted to do have resulted in a charge equivalent to nearly USD 5. That rules Bitcoin out as a currency, and certainly for any transaction less than around $1000. Your cup of coffee at $4 looks rather different when it becomes $9 by the time you pay for it.

Bitcoin transaction charges

How has this happened? It’s all a result of the continuing rise and success of Bitcoin. Not that long ago Bitcoin was way under $1000 – but let’s just take $1000 as the price. The other issue here is the sheer rise in the number of transactions over time – as Bitcoin has continued to soar in value, the absolute number of transactions has as well. The standard charge for a transaction in Bitcoin was (and is) 0.0005 Bitcoin. That equates to 0.50 cents per transaction at $1000 per Bitcoin. True you could pay a higher fee for a quicker transaction or a lower fee if you were not too bothered about when it was confirmed.

Now, with Bitcoin over $7000, although the standard charge is around $3.50, the problem is when you try to do this, the screen will tell you it will take 99 blocks to confirm. What? 99 blocks? That’s up to 17 hours – at least. Everyone wants it quicker so they pay 0.0006 or $4.20. That’s only 15 blocks. OK what about 0.0007, that’s $4.90, and should get you confirmed in 2 to 5 blocks. Great for Miners but absolute rubbish if you are a trader.

Beating Bitcoin charges – Scotcoin’s answer

Sadly, at the moment, Scotcoin has to suffer the same problem as we are part of the Counterparty protocol, running on the Bitcoin Blockchain. One of the reasons for changing to our own private blockchain is to get beyond this bottleneck. I’m not giving too much away to say we have tested transactions in mere seconds on our new blockchain and at a tiny fraction of the costs associated with Bitcoin. There’s still a long way to go to say that this will pertain at full scale capacity, but our transaction speed is already going to be a huge magnitude better than the 7 transactions per second on Bitcoin.

So please bear with us as we do our best to improve the world’s experience of digital currencies. We will get there and you will love it.

Scotcoin moves to private blockchain

PRESS RELEASE: 23 October 2017 – SCOTCOIN TO MIGRATE TO ITS OWN PRIVATE BLOCKCHAIN

The Scotcoin Project is pleased to announce that it has awarded the contract to manage the migration from the Counterparty blockchain to its own private blockchain to Scotesq, a fintech company based in Edinburgh, Scotland.

The new blockchain will remove intermediate currency risk allowing participants in the ecosystem to move directly between Sterling and Scotcoin.  The new blockchain will also comply with Financial Conduct Authority ‘Know Your Customer/Anti Money Laundering (KYC/AML)’ obligations.

The investors’ objective and desire is for the Scottish Government to approve Scotcoin as the country’s unofficial cryptocurrency.

Willie Fleming of The Scotcoin Project said:

“We are proud to announce this important milestone in the development of the currency.  Regulation is coming to the crypto world, an evolution we both embrace and welcome.  The adoption of KYC/AML responsibilities will assist Scotcoin in gaining the legitimacy and respect necessary for Scotcoin to play its rightful role in Scotland and Europe’s economy.”

David Low of Scotesq said:

“We are delighted to work with The Scotcoin Project on this important development of the Scotcoin ecosystem which will ensure all work associated with the migration will stay in Scotland.”

Notes for media:-

Scotcoin is a crypto currency established in 2014 by Derek Nisbet, a Scottish fintech entrepreneur.  It operates on the Bitcoin blockchain using the Counterparty protocol and has a market value of 10 million USD placing it in the top 200 of global crypto currencies as measured by the USD value.

In 2016 all intellectual property associated with Scotcoin was acquired from Nisbet by Scottish fintech investors, David Low and Temple Melville

The investors’ desire is for the Scottish Government to approve Scotcoin as the country’s unofficial cryptocurrency.  It is acknowledged that currency is not a devolved responsibility whilst Scotland remains part of the UK.  Scotcoin could only become an official currency if Scotland was independent of the UK or current legislation was changed.

Media Contact: Willie Fleming – 07494 540764  [email protected]

BUY SCOTCOIN @ Exchange.ScotcoinProject.com

Promotional graphics

Scotcoin Accepted Here 

The Scotcoin Project team is working on getting Scotcoin accepted by a wide variety of vendors – we want retailers to be able to display our logo so you know you can spend your Scotcoin in their shop. 

Our marketing team was equally split on the different logos though – so in the true spirit of Scotcoin being a coin for the people, we want you to choose your favourite. 

 

  • The first logo has a blue background, with a white Scotcoin icon in the middle, and white text around it. 
  • The second logo has a white and blue background, with a blue Scotcoin icon in the upper half, and white text below it. 
  • The third logo has a white background and blue boarder, with a blue Scotcoin icon in the middle, and blue text around it. 

 

Which graphic do you prefer? Please vote in the poll below to help us decide!

 

Which promotional graphic do you prefer?

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Scotcoin Q and A with Dame Stephanie Shirley

Something a little different for our blog… The Scotcoin team had the great privilege to ask one of the UK’s best loved IT giants some questions.

Scotcoin Q&A With Dame Stephanie Shirley

At Scotcoin, one third of our holders are women whereas ninety-six percent of bitcoin holders are men. What are your views regarding cryptocurrency and block-chain technology being dominated by men? 

Super! Has it not been ever thus in finance?

What advice would you have for the tech world to increase female involvement in the industry?

As with other sexist cultures, the best way to get women to break into the male world of technology remains fighting for what women want: flexible working, free childcare and genuinely equal pay. Will the gender pay gap legislation help? Don’t’ wait for women to leave but organise regular “stay” interviews. Maintain contact and make it easy for women to return after a career break. Since your gender ratio will change as women move into family mode, do a bit of positive recruitment by advertising in places that reach women. And publish data on pay by diversity.

Do you have any views on the new way start-ups are raising funds through ICO’s?  Do you see charities using ICO’s to raise funds to bolster their operations?

Start-ups are risky enough without bypassing the venture capitalists’ regulation by raising funds through ICOs. I don’t believe the Charity Commission likes ICOs… Whereas I definitely do.

What are your thoughts on the future of the Internet and, in particular, how it may impact upon a global society?

I co-founded the Oxford Internet Institute roundabout the Millennium to study precisely this. It was the first multi-disciplinary institute in the world looking at the social effects of the internet – the world of the 21st century. This, of course, includes the Internet of Money. Earlier this year it explored the various paths to our digital future and published its Global Internet Report. If only there were a crystal ball! No-one can predict the internet’s future but it’s too important to ignore and by shaping our societies, cultures and economies the internet will define the world ahead. For many young people, the internet is life and is focused on The Digital Divide, Personal Freedoms and Rights and Media and Society.

How do we ensure the continued development of an internet serving all people? In 2016, the Internet Society began to draw on the expertise of key stakeholders from around the globe. The considered conclusion is that while the technology will permeate all aspects of society in as yet unimagined ways, the founding principles of openness, inclusivity, collaboration and transparency will not change.

Development of new applications has moved on at pace in recent years, where do you see it heading over the next 5 – 10 years?

I hope the head-mounted displays will have been replaced by wearable (by which I mean lightweight) computing glasses. I got involved in my first VR project in 1999. And still find its artistic and medical applications fascinating.

What would you say are the most interesting high points you have had over your career?

Governance issues. The transfer of my company’s control from me to the workforce which took me 11 years to achieve. I also got a tremendous kick out of our first million pound sale.

Scotcoin sits outside the normal banking framework thus disrupting current financial institutions. How do you feel about disruption?

Could the Scotcoin future of money contribute to devolution? Post Brexit, would a Scottish Referendum herald digital cash as an alternative to both the pound and the euro?

Do you think if you were working today you would be described as a ‘disruptor’?

I was shocked when first called a disruptor. Was it an insult? But that’s exactly what I am: changing the culture, the social norms as well as the technology.

My current life is focused on autism, my late son’s disorder. And yes, I continue to make waves (to mix my metaphors) in that field.

Dame Stephanie Shirley CH
18 October 2017

 

Where did half a TRILLION GBP go?

Did you just notice that the ONS says we have half a trillion less foreign exchange than we thought we had?

This is not because they have changed the way they count things. This is because it has leached away and because we have mismanaged both our economy and finances for years. If you think it doesn’t matter think again. The Brexit situation with this scenario will mean the GBP/EUR rate falling dramatically, probably another 15%.

Now in one way that’s good ( lower costs of exports) and possibly good for the FTSE as well ( all those foreign currency earners) but in another sense it’s an utter disaster. Why? Because it means our perceived credit worthiness will plummet, we have nothing to withstand any shocks, and finally, we probably won’t be getting any Euro influx to buy Gilts. If that goes we are back to domestic institutions – and they don’t have enough to cover the Budget deficits. Perforce the cuts that should have been made from 2010 will have to be made to stop HMG going bankrupt.

This is the UK problem but it is actually a worldwide problem. It’s one of the reasons Bitcoin has gained so much traction in the last year or so. It’s why people are regularly taking avoiding action in terms of domestic savings ( which just piles pressure on the problem).

We in Scotland are lucky. We already have our own Digital currency – Scotcoin. When in the 1930s the WIR currency basically saved Switzerland from bankruptcy, the global lack of liquidity was addressed in an innovative and substantial manner. We can do the same now in Scotland with Scotcoin. Avoid the drop in the external value of GBP and buy on https://exchange.scotcoinproject.com

Bitcoin off the ropes

Just in case you thought Bitcoin had had its day, I’m here to tell you that you are very wrong. Not only is the US Dollar price nudging $5000 once again, but Bitcoin has re-asserted its dominance. It presently stands at over 52% by market value of ALL digital currencies. And that’s with something like 1200 crypto currencies now in existence. Bitcoin itself is standing at over $80 billion in value, and the daily trade is as near as makes no difference $3 billion. That doesn’t look like a “has been” to me.

True, other crypto currencies have suffered of late. Partly, that must be because people have been taking profits elsewhere and reinvesting in Bitcoin. More importantly, the shocks from China are taken care of. In fact, it is beginning to look as if the Chinese may have shot themselves in the foot, as everyone who could has taken their crypto currencies and headed for jurisdictions making less opaque statements. Other countries have been massive beneficiaries of the Chinese “clampdown”. I still believe this has more to do with the Chinese authorities worries about their own currency, rather than an anti-Bitcoin stance per se. And now we hear that maybe – just maybe – the Chinese government might have being doing all this for its own ends. What is absolutely clear is that regulation is coming – and fast.

So how is Scotcoin getting on? We have, of course, taken the position that we will be fully KYC and AML compliant. We have had this stance for well over 18 months, and have endured the slings and arrows of people telling us No, Never Going To Happen. Well our ICO Whitepaper is almost ready which will confirm we are right and will enshrine KYC and AML within Scotcoin V3. We are very shortly going to sign the contract to create Scotcoin V3 with all that that entails. We will be signing up new licencees who will have the authority to use Scotcoin’s Intellectual Property. We will be engaging with partners – Gold, Silver and Bronze – to help us in our objectives. Our new professional Marketing team is talking to all sorts of organisations and businesses, from Hotel groups to cab companies, to bring them onboard. Our Meetup Group goes from strength to strength.

You’ve heard of the proverbial swan – serene above the water, but below the waterline, the feet paddling away like mad. Well, we are a bit like that at the moment, but paddling to good effect. Time to buy Scotcoin is now, so get your’s at:

https://exchange.scotcoinproject.com/

Interest on your Scotcoin holdings

What happens when you put money on deposit? Over a period of time, and as long as you leave the money where it is, you will receive some interest. Nowadays of course that interest is what could only be described as piffling.

What happens if you invest in gold? If the price doesn’t change, you are worse off because there are holding costs (vaults, insurance and so on)

Suppose you invest in Bitcoin. Now suppose further that instead of rocketing up as it has done, it remains the same price in USD or GBP terms. You are at least no worse off.

Now suppose, instead of merely being no worse off, Bitcoin paid “interest”. In the same way that putting money on deposit adds to the stock of what you have in cash terms, you would have some extra Bitcoin. And the longer you held, the more you got.

If you’ve been following the Scotcoin Story, you will know we are in the final throes of moving towards a White Paper to transform the Crypto landscape. Part of that revolution will REWARD holders of Scotcoin for holding Scotcoin. Interest by any other name. And early holders will get more than later holders. We are really delighted we have come up with a formula which will reward our longstanding supporters. Have you got yours?

bitcoin legislation

Whither Scotcoin

bitcoin legislation Cryptocurrency a scam?

There have been quite a few gyrations in the Bitcoin market especially since China put the mockers on ICOs. This was then followed by Jamie Dimon – he of JPMorgan fame – saying Bitcoin was a scam. Yet today, one of the doyens of the London Gold market  – Sharps Pixley – has said they will accept Bitcoin for purchases.

Legislation surrounding Bitcoin & Digital Currency

Let’s just look at both of these. The Chinese are quite rightly saying we don’t want people to lose money through fraudulent or overhyped ICO offerings. They are also saying, if you are going to put money into stocks and shares, you have to be identifiable, so if you want to do this with crypto currencies, you will have to be identifiable as well. Personally, I don’t see why people would run away from Bitcoin because of these two eminently sensible announcements. In fact, they should enhance crypto currencies in general and Bitcoin in particular. Rather than an anonymous investment in something you don’t understand, where the principals may disappear with your cash, you can invest with confidence knowing who the other people are beside you. This is precisely why Scotcoin will be entirely AML and KYC compliant. The other thing to bear in mind is that – officially officially – nothing has been set in stone in China. There are “elections” coming up in October, and it is entirely possible that OFFICIALLY officially after these things might change.

Jamie Dimon is in my view being a bit naughty. He says “ It’s a scam”. But he also says, hey it will collapse, but maybe not until it reaches $100,000. So… is that a buy recommendation? Goldman Sachs don’t appear to have doubts – they say serious investors MUST hold some crypto currencies, if only because the growth in value has outpaced everything else by a mile. And he is after all in the business of getting his investors the best deal. Traders and market makers earn money by selling high and buying cheap, and he just may have created the last, best buying opportunity for Bitcoin. The present bounce up back above $4000 is in my view a trigger.

The Sharps Pixley announcement is way up there as far as a tipping point goes. Gold might trade $22 trillion a year but Bitcoin is already around $1 trillion. And that’s from a market not yet fully nine years old.

I have a view which is entirely personal. Bitcoin isn’t going to become the currency of choice for buying coffees and pizza. Apart from anything else the cost even after the recent fall is around £1.50 per transaction. That will only increase as its value rises. What Bitcoin MAY become is something like gold, a store of value and wealth. That leaves the field for “ currency” wide open, and Scotcoin is targeting that use. We may be “Scot” but that is not pejorative or limiting. We have holders in more than 40 countries. In fact, taking into account the diaspora of successful Scots worldwide, we all might just be on to a good thing.

If you want to help us spread the world and fund our on-going activities, go to https://scotcoinproject.com.