I’ve
had a number of interesting meetings with random people over the last
couple of weeks. They were all related to different business aspects,
but the one thing that came across quite clearly was the growing
realisation that blockchain – and by extension, cryptocurrency –
was going to be THE future.
At
least two of the people I was talking to had had virtually no
knowledge of blockchain until very recently, and one of them only
started to look at it when I arranged to meet him a couple of days
ago. If anything he was the most evangelical about it.
One
of the most important aspects is how people are perceiving digital
currency. I have already argued that it is now another asset class
alongside stocks and shares, art, fine wine, bonds, gold, commodities
and so on, and this idea is already taking hold. I had a very
interesting conversation with a Polish lady who had never even heard
of blockchain, but knew of Bitcoin. As soon as I explained about the
asset class ( ok maybe you should only have 1% of your wealth in it)
she rushed off to talk to her business manager, and splurged on a
basket of cryptos. I’m not sure she has all the right ones, but
hey, that’s her business. As an aside she’s already made money on
them.
It
remains true that if you had that 1% just in Bitcoin 5 years ago,
your total portfolio would have out-performed nearly all others. Far
be it from me to say it but if you had included Scotcoin in that same
portfolio, you would
have outperformed ALL others.
The
countries, ecosystems and companies that embrace the possibilities of
blockchain and crypto now are those that will inherit the future.
“Twenty
years from now you will be more disappointed by the things that you
didn’t do than by the ones you did do. So throw off the bowlines.
Sail away from the safe harbour. Catch the trade winds in your sails.
Explore. Dream. Discover.”
It
is a misconception that Mark Twain said that (along with lots of
other things he said)
Mark
Twain did NOT say that.
The quote belongs to H. Jackson Brown’s mother. See page 13 in Brown’s 1991 book: P.S. I Love You: When Mom Wrote, She Always Saved the Best for Last.
But
Twain DID say “Denial
is not just a river in Egypt”
Have
a great future.
https://scotcoinproject.com/wp-content/uploads/2020/02/Twenty-years-from-now.jpg423640adminhttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngadmin2020-02-05 17:37:332020-02-05 17:37:34Twenty years from now you will be more disappointed by the things that you didn't do
One of the biggest myths regarding Bitcoin is that many consider it as a fraudulent, Ponzi scheme. But very few actually understand what a Ponzi scheme is.
It is not wise for people to draw conclusions without a proper understanding of any topic whatsoever. And that is what people are doing when it comes to Bitcoins. They just term Bitcoins and other cryptos as scams.
Therefore, being a reputed blog in this space, we at CoinSutra think it is very important for us to clarify this point and spread more awareness, which is also our motivation to write today. I will explain in detail why Bitcoin is not a Ponzi scheme, but before that let’s understood and examine what a Ponzi scheme actually means.
What Is A Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading.
Operators of Ponzi schemes can be either individuals or corporations and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.
Companies/schemes that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart. [Source Wiki]
Ponzi schemes are sometimes also referred as pyramid schemes and the characteristics of both the schemes are higher returns than the average market by recruiting new members under the scheme and taking money from them in some form or other.
Characteristics of Ponzi or Pyramid Schemes:-
They promise high
and unusual returns.
They promise
regular or monthly returns usually.
They require you to
add new investors/members into the scheme to increase your return
rate.
Founders usually
run away with a big chunk of money.
These are the main characteristics of a typical fraudulent scheme whether it is in the crypto space or otherwise.
Now that you know these characteristics you can easily do away with such schemes by doing a quick litmus test.
What You Can Do To Not Fall For Such Schemes: Litmus Test
You can quickly do a litmus test to avoid such schemes or projects by following two simple bits of advice given by Andreas M. Antonopoulos, a renowned Bitcoin speaker, and proponent.
This litmus test is so powerful and apt that you can apply it within the crypto space. You can also use it to judge other schemes outside of this market.
Bitcoin Is Not A Ponzi Scheme
In the light of the above explanations, I can say that people who say Bitcoin is a Ponzi scheme don’t really understand what a Ponzi scheme is.
If you call Bitcoin a ponzi scheme, you know nothing about Bitcoin, and you know nothing about ponzi schemes. $BTC#Bitcoin
Bitcoin never
asked anyone to put money
Bitcoin whitepaper, if you have read it, doesn’t speak a thing about buying/selling bitcoins and neither lure investors to put their money. It is an 8-page document explaining a solution for making a censorship-resistant digital money.
Bitcoin founder
never ran away with a big chunk of money
Bitcoin founder, Satoshi Nakamoto never ran away with a chunk of Bitcoins. One might now argue that he held millions of bitcoins but that he never stole from anybody or just created out of thin air despite being Bitcoin’s founder.
Instead, he also had to run a full node and mine Bitcoin blocks to receive the block rewards to get new bitcoins, which is a legal way that anyone can follow even today.
Also, note that the Bitcoins he mined at that time and kept to himself were worthless then. It was his sheer will to believe in the potential of the project that motivated him to keep those funds with him.
Bitcoin never
asked you to recruit new people/investors under it
Neither Satoshi or his whitepaper or even early Bitcoin holders went to recruit new people/investors for Bitcoin.
In initial days, mostly geeks used to mine and play with Bitcoin and most of them used to spend it on gambling or pizzas or just used to giveaway in meetups. I have not seen such Ponzi scheme yet that give away their products in such a manner.
Bitcoin doesn’t
promise or gives monthly/regular returns
Bitcoin whitepaper or it’s working model till date doesn’t promise any returns or regular returns either. Yeah, of course, that’s another thing that people have made money due to insane rise in the price of Bitcoin over the years but that’s simply the law of demand and supply acting in a free market.
On the flip side, Bitcoin prices also fall rapidly and many people get burned due to their such speculative investment!
Bitcoin has no
head/person controlling it
Bitcoin is based on the decentralized and censorship-resistant tech of blockchain and proof of work which makes sure that no one, in particular, is ‘in-charge’.
Clearly, with no one at the helm of Bitcoin, no one can run away or take over other people’s money or Bitcoin.
Conclusion: Crypto-Scams
Everything said and done, I understand that there are a lot of cryptocurrency Ponzi schemes and pyramid schemes going on but that doesn’t mean Bitcoin or the other currencies are fraudulent.
On the flip side, cryptocurrency market has been, is, and will be prone to such schemes because it is based on the decentralized technology of blockchain. Something which is based on decentralized tech and is hard to stop or regulate will give birth to Ponzi schemes but that doesn’t mean that Bitcoin is a Ponzi scheme.
Instead, use the parameters that I have discussed at the start of this article to educate and examine yourself whenever you encounter such Ponzi schemes and simply opt out of it.
Lastly, I would say, I am yet to see a Ponzi scheme like Bitcoin which does this:
Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.
https://scotcoinproject.com/wp-content/uploads/2019/12/What-Is-A-Ponzi-Scheme-Why-Bitcoin-Is-Not-One.jpg429800adminhttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngadmin2019-12-16 08:54:222019-12-16 09:12:39What Is A Ponzi Scheme & Why Bitcoin Is Not One
When we transition to digital currencies and blockchain applications we will need to collectively grow up.
In western culture, we are accustomed to
depending on external organizations to take care of our assets. Banks take care
of our money, trusts take care of our properties, stock brokers take care of
our investments. If we have an issue with any of these areas, there is a backup
system in place. These external organizations are responsible for backing up
our information because essentially we don’t own the data, they do.
The irony is that there is a sense of freedom
that comes when your information is captured (much like there is a sense of
freedom for children who don’t have to worry about paying for rent or food
because their parents take care of it). As a society, we’re like children.
We’re free of the worry of being 100% responsible for our information because
centralized organizations take care of it, problem is, they also own it. With
blockchain, all of that will change.
A
SHIFT OF RESPONSIBILITY
With the move to digital currencies and
blockchain applications, the safety of our assets and our sensitive information
will become our individual responsibility. Currently, this is not the case. If
we lose a valuable document, we can recover it from the organization that is
responsible for keeping a record of it. There is often a record of what we own
somewhere in the bureaucratic universe.
Because of this backup system, our minds tend to
think of digital assets as “copies” of something that exists in the cloud
somewhere. With decentralized blockchains, however, the original data exists on
individual nodes only. In other words, the original data will often exist only
in our phones. That’s what makes blockchain so different from other
technologies. It allows for the digital asset to be the “original,” just like
cash. But also like cash, if you lose it, you lose it.
TIME
TO GROW UP
This may be a difficult transition for some. We
all have that friend who seems to misplace their keys every other week or the
family member who can’t find their eyeglasses even when the glasses are sitting
on top of their head. These are the individuals who may have the hardest time
with this new responsibility.
A number of people have lost millions of dollars
worth of Bitcoin from being careless with their personal passwords to their
Bitcoin accounts. Since the password doesn’t exist on a central database, if
the person loses their password, there’s no way to recover it and the Bitcoin
sits on the blockchain with no way to access it. As of July, 2018, a total of
$44 billion worth of Bitcoin (6M Bitcoin) are left inaccessible and permanently
lost on the Bitcoin blockchain. If you don’t want to lose access to your
cryptocurrency, do whatever you can to keep your passwords safe.
Andreas Antonopoulos, one of the foremost Bitcoin
experts, prints out his passwords and key phrases and puts the paper copies in
bank safety deposit boxes. This is ironic given that Antonopoulos thinks banks
will go by the wayside when cryptocurrency enters mainstream. I tend to agree
with him. I have always said that banks should consider transitioning from
monetary banks to information banks. That way they will continue to remain
relevant.
DO
YOUR HOMEWORK, KNOW WHO/WHAT TO TRUST
With the transition to blockchain, we will need
to shift our trust from the banking system and government organizations to
trusting the blockchain protocol. Blockchain is a unique technology because
it’s able to hold records of people’s assets in a decentralized framework.
Blockchain is often referred to as a trust-less system which means, with
blockchain, we don’t need to trust people or institutions. The trust resides in
the technology itself.
For some, trusting blockchain protocols may be
difficult at first. This is often due to their misunderstanding of where to
appropriately place their trust. The trust-less aspect of blockchain comes into
play when the technology is used as it was intended…as a decentralized
consensus platform. Trust should not be placed in centralized databases, even
if they say they are using a blockchain. If they are using a centralized
blockchain, then they are not using blockchain as it was intended. The user
should be mature in their pursuit of knowledge and in their decision making and
they should know who to trust.
For example, those that have done their homework
know that the Bitcoin protocol has proven its trustworthiness. In the nine
years that Bitcoin has been around, there has not been a successful theft from
the protocol yet. This does not mean that people don’t try. Hackers are
constantly trying to hack into Bitcoin. The reason they’re unsuccessful is
because of the decentralized nature of the protocol. To successfully compromise
the system, a hacker would need to gain consensus from the community to
implement their changes but hackers are never able to gain that consensus. This
is why a decentralized blockchain is safer than a centralized one. Regulations
and laws do not prevent hackers from hacking into Bitcoin, the decentralized
community does.
When data is kept in a centralized exchange, it’s
more susceptible to theft and corruption. This is why it’s important to 1) know
the difference between a centralized blockchain and a decentralized blockchain
and 2) put our trust in the appropriate decentralized blockchains.
For proof of the safety of decentralized
frameworks, all you have to do is look at the evidence.
Amount of Bitcoin stolen from the decentralized Bitcoin protocol — $0
Amount of Bitcoin stolen from centralized exchanges — $15 Billion
When there is a shift in trust from centralized organizations to decentralized blockchains and we gain an aptitude to know the difference, we will take on a new responsibility for the safety of our assets. That’s when we will collectively grow from blockchain infants to blockchain adolescents and have our big boy / big girl pants on.
“Blockchain Will Force Us To Put Our Big Boy / Big Girl Pants On”
https://scotcoinproject.com/wp-content/uploads/2019/11/Blockchain-Will-Force-Us-To-Put-Our-Big-Boy-Big-Girl-Pants-On.png334600adminhttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngadmin2019-11-01 18:45:502019-11-01 18:47:21Blockchain Will Force Us To Put Our Big Boy / Big Girl Pants On
Article by Scotcoin’s own Temple Melville published in City AM on 28/8/19
Cryptocurrencies are almost as old as money itself. Indeed, crypto simply means concealed or secret. So the first man (or woman) who tried to exchange some rocks for a sheep could be said to have been using a crypto currency. Up to that point a sheep had been worth 15 chickens. It’s simple, really. You attribute a symbolic sense to something you do not see.
Finance
Houses and liquidity
Move
on to the 1600s when after the Thirty Years War belief in what then
passed for “money” was at a low. Something else had to be found,
and it was, in the shape of strong finance houses with robust links
to other similar houses. They issued their own currencies when the
State currencies could no longer be trusted. Move on again to the
American experience of the mid 1800s. There were over 8000
“currencies” – usually paper – being traded around the
country with a big business in accepting and exchanging them. There
had to be some form of currency to enable trade to take place as
America expanded. These of course were seriously open to abuse and
eventually the individuals and banks that had issued them had to bow
to the Federal Government creating its own, reliable currency.
Liquidity
created – WIR
In
the 1930s there was to all intents and purposes no liquidity in any
markets. Things were so bad that some of the good citizens of Zurich
created their own currency to enable them to trade. This was called
WIR and was, indeed, like those currencies before it, a crypto
currency. Over the years it has prospered (perhaps one would expect a
Swiss monetary instrument to do this) until today it is used by more
than half a million people, over 70,000 businesses and transacts
some CHF2.5billion annually – that’s around half a percent of
Swiss GDP. By doing so, it illustrates exactly what “Money” is –
a trusted medium of exchange that others will accept, and a stable
store of value.
Crypto
today
The
present crop of crypto currencies rely on digital technology to give
them credibility. You can’t have a run on the “Bank” for
example – there isn’t one. Despite being relatively small in
terms of value (only some 0.1% of total world assets) they already
show what digital and crypto currencies can do to enhance people’s
lives. As an example, if you want to send £1million to anywhere in
the world, that will cost you between £20-30,000. Using a digital
currency, it can be done for 50p. In fact, the Philippines is looking
to create a Bitcoin transfer system for its overseas citizens. Using
this system would save their economy over USD1.5 Billion a year – a
significant sum in a poor country.
The
three cryptos no one talks about
There
are three interbank tools that are in effect digital currencies and
have been for years. These are:
1.
Target2 – the ECB system, the old Bundesbank system which is
currently so politically in focus in respect of Italy
2. IMF
SDRs – Special Drawing rights
3. The
highly secret interbank settlement system at the BIS in Basle.
These
three were absolutely crucial in getting the world through the 2007
crisis.
Hyun
Song Shin of the BIS argued last year that cryptos (and he was
specifically talking about Bitcoin) had issues with scalability and
finality. At that time he was right as you would expect, but he was
talking about first generation blockchain. We have since had second
generation in Hyperledger, and now third generation called
Permissioned
Decentralised Blockchain. Facebook’s Libra will largely use this
system and there can be no doubt this will revolutionise the use of
digital and crypto currencies world-wide. We’ve gone from around 35
million wallets to a potential 2.7 BILLION. But Shin’s central
thesis holds good – you need people to USE these new currencies to
make them both trusted and useful, and having exchanged goods for the
currency, the person TAKING the currency needs to find someone else
to take it as well.
Cash
declining
The
use of cash has been declining for years in most western countries,
and the Central Banks have realised that it will have to be replaced
with something. To this end both Sweden and Uruguay have run full
scale crypto trials which have largely been successful, though not
set for full implementation anytime soon.
The
use of crypto currencies can and should mean social inclusion. Whilst
Central Banks’ attitude remains “Bitcoin is not a good idea,”
the idea behind
it continues to fire imaginations all around the world.
The
Brixton Pound
This
remains a very positive initiative which is making a real difference
within Brixton. Arguably it’s as old as Bitcoin. People are
prepared to use it and pass it on – and the money stays in Brixton.
That is different from the likes of Bitcoin which is world-wide, but
it doesn’t detract from the social inclusiveness of it. We
look to history for lessons on the nature of money and the role of
central banks in building trust in the use of money in society. The
issue of trust has again come to the fore in debates on the
durability of cryptocurrencies such as Bitcoin, and how far private
money can supplant central bank money as a medium of exchange.
Future
payment needs
In
the future, physical cash or even bank transfers as we currently know
them are unlikely to be the main answer. Central banks are already
working on systems and digital currencies that will be trusted and
used. Existing crypto-assets
have exhibited a high degree of volatility and are considered an
immature asset class given the lack of standardisation and constant
evolution. They present a number of risks for banks, including
liquidity risk; credit risk; market risk; operational risk (including
fraud and cyber risks); money laundering and terrorist financing
risk; and legal and reputation risks. But new know your customer and
anti-money laundering rules will mitigate much of this.
In
many ways,
the African sub-Saharan region has become a leader in mobile money
resulting in a radical change in the delivery of financial services
and significant gains in financial inclusion. Where there is a lack
of payment infrastructure, the use of crypto currencies immediately
enhances trade and social inclusion. You only have to think of
Eastern Europe which hardly had a fixed line telephone system before
1989, and suddenly every man and his dog had a mobile phone,
leapfrogging to a new world.
Christine
Lagarde in an excellent speech to the November 2018 Singapore Fintech
Conference, has posed the question – should
central banks issue a new digital form of money?
Arguably
they already have.
As such, it can only be seen as a force for good.
https://scotcoinproject.com/wp-content/uploads/2019/08/bank-bitcoin-blockchain-315785.jpg439640C Wyliehttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngC Wylie2019-08-29 16:03:272019-08-29 16:03:28How Cryptocurrencies Already Help Sovereign Nations
For the past 2 years, Scotcoin has performed KYC checks on all purchasers via the official exchange. We wholeheartedly welcome better regulation – and are leading the way!
Bitcoin and other digital currencies are a “Wild West industry” and need to be regulated to protect investors, a committee of MPs has urged. | BBC News
– A speech by Temple Melville to Scottish Fintech on Wednesday 19th September 2018
“Good afternoon! I represent Scotcoin, Scotland’s own digital currency, a World Coin with a Scottish Ethos.
I have just three things to tell you about today, all of them important. One is potentially profitable for you, one will benefit all the people of Scotland and one will target individuals and groups in need.
But before I do that, does everyone here know what blockchain is? And do you know that blockchain is an enabling technology, that it can exist without Bitcoin or any other coin, but that Bitcoin could not exist without the blockchain? Scotcoin is on a blockchain – more a little later.
So number one, how will what I have said be profitable be for you?
A little history. Scotcoin began in 2013 and is now one of the longest-lived country crypto currencies. We presently sit on the Counterparty Protocol which makes use of the Bitcoin blockchain. The problem is this particular blockchain has several drawbacks. Not the least is that in the world of regulation that is coming to cryptos, there is no method for ensuring who is sending what to who. So we at Scotcoin decided a couple of years ago we had to do something different.
As you can see, Bitcoin can only do seven transactions per second. It takes 12 minutes to confirm a transaction, the cost per transaction when volumes are high is extremely volatile, and it uses more electricity than Denmark. None of that is very good.
Scotcoin, on the other hand, intends to move to its own permissioned blockchain shortly which will encompass KYC (know your customer) and AML (Anti-money laundering) to comply with all present and potential future regulations. We at Scotcoin are well ahead on this track – a committee of MPs has just published a paper daying that crypto currencies and Bitcoin in particular should be regulated.
You can see from the graphic which shows results from our testing that we should be able to do more than 50 transactions per second. We should also be able to confirm transactions in mere seconds, and the power usage should be infinitesimal in comparison to Bitcoin. If we can deploy our new blockchain with these parameters, Scotland will have another world beating industry.
We have several thousand holders of Scotcoin and have holders in more than 50 countries worldwide. On migration to our new blockchain, present holders of Scotcoin will be rewarded for their support by receiving a 4-for-1 bonus, an effective increase in value of up to 5 times.
Yes, you heard that right. I’ll repeat that. An effective increase in value of 5 times. That means if you have £10 of Scotcoin in its present form, in its NEW form you will have £50. So point one, that is how it will be profitable for you in the first instance, as long as you already have Scotcoin, or buy some very shortly.
In respect of point 2, we intend to occupy the social good works ecosystem and our plans are well advanced to do this. Scotcoin has been offered to the Scottish Government and discussions are ongoing. But in essence, the idea is that there will be established a commonweal fund that will be able to be used throughout Scotland to assist where the powers that be may not be able to step up to the mark. The point is that everyone in Scotland should benefit from this fund, and quite frankly this will be helping the Scottish economy to progress in the future.
And finally, point 3. I’m sure you’ve all heard of Social Bite and The Big issue. These organisations help people that have problems to get on their feet again. This is both our goal and our desire. I can think of no better future monument to Scotcoin than if people are able to say, Scotcoin eradicated homelessness in Scotland. And we are in good company here – Jeff Bezos has just announced a $2 billion fund to do exactly that.
So from all our perspectives, let’s pull together to make Scotcoin a World Coin, But with a Scottish Ethos.
And to be clear, what do we mean by a Scottish Ethos? Scotland has a long history of financial innovation and strong security for its money. We aim to keep to these traditions for Scotcoin. But the Scots also have a long and noble tradition of good works, charitable giving, of invention and forward looking. We aim to bring all these to bear by using Scotcoin in a way to enhance people’s lives right here in Scotland.”
https://scotcoinproject.com/wp-content/uploads/2017/11/VS1.png800800C Wyliehttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngC Wylie2018-09-19 19:00:442018-09-19 11:18:02Scotcoin - Scotland’s Own Digital Currency, a World Coin With a Scottish Ethos
If you are a chocoholic like me, you just might know that Belgium has been involved with the manufacture and sale of chocolate for nearly 400 years. Yes, 400 years. It has more than 2000 chocolate shops selling just – chocolate. They manufacture over 170,000 tons a year. It’s a big business. And it’s been growing for 400 years.
And that is actually the point here. It’s been growing for 400 years. What was it like after say…. 10 years? Around 1645……
Well, I’m not pretending I know exactly how much they produced, but I do know (from historical records) there were less than ten chocolate shops. So let’s just think what that means. In the last 373 years, the number of shops has grown from 10 to 2000. It represents an increase of just over 5 chocolate shops per year, every year, from then until now. That may not sound like much but look where it has ended up.
Now go back just say… 10 years from today. And hey, there’s this new thing called blockchain. And it does something called Bitcoin. And hey, usage, knowledge, and acceptance is growing.
My point is this blockchain business is absolutely in its infancy. It’s probably less accepted than chocolate was in Belgium after 10 years. From my point of view there is no contest between chocolate and the blockchain, but suppose blockchain grows as we all think it will.
All our present institutions and technology has had years to mature. Banks, as we know them, are 300 plus years old. The UK Parliament has been growing and evolving for more than 700 years.
So as regulators and central banks try to frame responses to where we are with blockchain and crypto currencies, let’s just reflect on how young this all is.
Let it grow. Let it evolve. Let it mature. And let it enrich – exactly has chocolate has done.
Despite our new blockchain not needing Bitcoin, we will all need some Bitcoin in order to effect the migration from our present Counterparty Protocol.
It’s not very much per wallet but in order to send the existing coin to its new wallet, Bitcoin will be needed.
We are in the process of identifying those wallets where there is currently no Bitcoin. It is our intention that those that do not have any bitcoin in them will be sent enough to effect the migration.
To this end, we are making a special offer to people who HAVE some Bitcoin. If you buy Scotcoin for Bitcoin, we will give you a 15% discount to the present price on the exchange. The Bitcoin price will be at the GBP price as shown on Preev.com
If you would like to take advantage of this offer, please contact [email protected]
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.
FULL ARTICLE:
https://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.png00C Wyliehttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngC Wylie2018-04-23 10:10:532018-04-23 10:10:53Better Blockchain regulation needed - says former White House Regulator
In case you are a hermit (and even hermits have mobile phones a la Sue Perkins) and haven’t heard, Bitcoin is closing in on $20,000 or around £14,600.
If you’ve been actually following what’s going on, you may have come across a strange phenomenon. If you put in a very low transaction fee to send Bitcoin or crypto currency, after a while you discover a) it hasn’t gone and b) there is no trace of it ever having existed. It’s been mysteriously disappeared.
This is clearly because the transaction numbers keep going up – at last count over $27 BILLION a day – but also because the mem pool where transactions awaiting confirmation are stored keeps growing as well. The miners have decided, it would appear, that they don’t intend to work for pennies (as the ethos and basis of micro transactions at the outset would have you believe). They will now only work for pounds and quite a few at that. From empirical evidence you need to put a fee in of around $8 to get a transaction even INTO the mem pool. After all .0005BTC is now worth at least $9.50, and that will only get you to the back of the queue. Want it down in the next 10 minutes? You can pay as much as $30. And yes, I have actually seen a transaction where the required fee was more than $30 – that’s £23 plus.
The same applies to other crypto transactions. That is why we at Scotcoin are going to our own permissioned blockchain. Quicker, faster, cheaper.
It’s also why we are going to be putting up our exchange price very shortly. Not only is the transaction fee burgeoning but so is the Bitcoin price, making us cheaper and cheaper relatively speaking as each day goes by.
Don’t forget, existing holders of Scotcoin will be well treated when we move to our own permissioned blockchain.
https://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.png00C Wyliehttps://scotcoinproject.com/wp-content/uploads/2017/12/Scotcoin_340x156.pngC Wylie2017-12-18 09:58:452017-12-18 10:00:16Pennies to Pounds
We’ll buy your bitcoin for Scotcoin