Disclosure: I’ve just compiled a list of all addresses that have used MtGox’s proprietary variant of the sign-message feature. When wizkid057 returns home in an hour, the plan is to suspend payouts for these addresses until further resolution. This will only work if you signed at least one settings message using MtGox’s sign-message feature. Any suggestions on how to reliably identify other MtGox addresses, or prove owners, is welcome.
Who be da playa?
Last week, the long-festering bitcoin exchange Mt.Gox failed. It is too early to tell exactly what happened and what will happen next, but I have some predictions:
No, those are all things that happen in the “real” economy where de-risking is the toxic fad of the decade and too-big-to-fail is too-big-to-jail.
- Gox will not be bailed out.
- Gox’s competitors will not be forced to tax their customers to support Gox’s investors or customers.
- The bitcoin currency will not be inflated to provide quantitative-easing to keep Gox alive.
- Gox will not receive 0% loans for half a decade, perverting the incentives of the entire market.
- Other bitcoin exchanges will not find it more profitable to seek these 0% loans instead of innovating.
- Gox will not be allowed to acquire smaller companies to fatten their balance sheet to hide losses, nor will Gox be acquired by a larger exchange with loan guarantees from bitcoin miners to hide Gox’s insolvency.
- Gox executives will not be rewarded with bonuses paid by bitcoin inflation and taxation.
- Gox will not receive a deferred prosecution because they are too big to jail.
- Gox will not be even bigger and even less solvent in a few years.
- Most likely, some people involved in the Gox failure will end up in prison.
- Gox’s executives will not be invited to Davos to pal-around with the leaders of government.
Every reddit thread that has hit the front page recently in the wake of Mt Gox erupting has opened the doors for people to ridicule not just bitcoin itself, but bitcoin users. We’re all neckbeards who gamble our money away. We all live in basements and mine coins for free with our parents’ electricity. Bitcoin has no inherent value. Bitcoin is tulip mania. Bitcoin will never be a currency because Maynard Keynes proved that deflationary currencies don’t work the way Einstein proved relativity, duh! We’re all money launderers and drug dealers.
None of that matters. Not because we’re a cult, not because we’re delusional, but because any new and disruptive change has to go through a phase of opposition and disdain.
Taxi companies HATE Uber because it disrupts the current established model for paying strangers to drive you somewhere. Every municipality with an entrenched taxi industry is fighting to kick Uber out.
Hotel companies HATE AirBnB because it disrupts the current model for paying a stranger to give you a room to sleep in for a few nights. Hotels have been trying to get AirBnB banned in certain cities.
Car dealerships HATE Tesla, and they have lobbied against Tesla being allowed to sell cars directly to consumers.
Internet providers are successfully fighting to force Netflix to hand over profits after failing to build adequate infrastructure with Taxpayer money. Internet providers are also fighting against getting Google fibre in their cities.
Research suggests that after a basic standard of quality is met, what becomes a success and what doesn’t is essentially a matter of chance.
Plenty of people will charge to tell you otherwise.
For VAT purposes Bitcoin and similar cryptocurrencies will be treated as follows below, this in no way reflects on how they are treated for regulatory or other purposes:
- 1.Income received from Bitcoin mining activities will generally be outside the scope of VAT on the basis that the activity does not constitute an economic activity for VAT purposes because there is an insufficient link between any services provided and any consideration received.
- 2.Income received by miners for other activities, such as for the provision of services in connection with the verification of specific transactions for which specific charges are made, will be exempt from VAT under Article 135(1)(d) of the EU VAT Directive as falling within the definition of ‘transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments.’
- 3. When Bitcoin is exchanged for Sterling or for foreign currencies, such as Euros or Dollars, no VAT will be due on the value of the Bitcoins themselves.
- 4. Charges (in whatever form) made over and above the value of the Bitcoin for arranging or carrying out any transactions in Bitcoin will be exempt from VAT under Article 135(1)(d) as outlined at 2 above.
However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for Bitcoin or other similar cryptocurrency. The value of the supply of goods or services on which VAT is due will be the sterling value of the cryptocurrency at the point the transaction takes place
Ditto income tax. Same old, same old. Glad that’s settled.
MONROVIA, Calif. /eNewsChannels/ — NEWS: Five young women from Monrovia High School and their rhinestone-encrusted robot won the top Inspire Award at the Los Angeles FTC (FIRST Tech Challenge) Regional Championship Tournament held at Monrovia this past Saturday, the Monrovia High School Robotics Program announced today.
It is no longer a hypothetical theory that bitcoin can be used to help the downtrodden; it is a reality that takes place every day. Sean’s Outpost Homeless Outreach has served over 50,000 meals to homeless residents in Pensacola alone and has bought a nine acre property that will be used as a safe camping space for the homeless, Bitcoin Not Bombs clothed and fed hundreds in their Hoodie the Homeless project, Fr33 Aid sent medical supplies and aid to hundreds afflicted by the typhoon in the Philippines, and Shire Sharing fed over 1,000 people Thanksgiving dinner in New Hampshire. The ability of bitcoin to be sent internationally in a matter of seconds directly to individuals in need for nearly free is ushering a new era of mutual aid and global cooperation. Strasser supplied zero evidence that bitcoin harms the poor, and it is abundantly clear that bitcoin is being used for the very things she claims it isn’t used for.
Strasser makes the extremely ignorant assumption that due to this male dominance, Bitcoin users are hostile to the unbanked and other oppressed groups. You would have to be living under a rock feasting solely on anti-Bitcoin propaganda to think that Bitcoin is only about making money and oppressing the lesser privileged. In fact, Bitcoin can help the unbanked more than government agencies. You do not need a driver’s license, bank, or even a place of residence to start using bitcoin. There are homeless people in Pensacola, FL who have literally used bitcoin to pull themselves out of poverty—good thing they have their home now so they can check their privilege.
After speaking with Jesse, one of the men featured in the Wired story, their biggest hurdle to getting into a home was going through the costly regulations imposed by the state. When you speak with other homeless people in Pensacola, you learn that coding regulations prevent them from living in abandoned buildings and anti-homeless camping bans prevent them from camping on secluded public property.
The state is standing in the way of one of the largest unbanked groups gaining financial and physical independence. The anti-homeless camping bans are not unique to Pensacola, and there’s even an actual state representative that physically destroys the property of homeless people in Hawaii. The homeless population is being physically oppressed by the very state Strasser argues is necessary for women of color to rise out of their situations.
When bigotry collides with reality.
What’s gone wrong with democracy: Democracy was the most successful political idea of the 20th century. Why has it run into trouble, and what can be done to revive it?
Being able to install alternative leaders offering alternative policies makes democracies better than autocracies at finding creative solutions to problems and rising to existential challenges, though they often take a while to zigzag to the right policies.
A bit like packet switch vs circuit switch. Routes can take a while to converge, but they route around damage and reach consensus.