Money and State
Money and State
"Give me control of a nation's money, and I care not who makes its laws."


18 posts

The Wall Street Journal has once again published an inaccurate and misleading article against me and against the crypto industry. Sadly, this is not a surprise. When the WSJ published a story in September about me and my company, ShapeShift, I responded publicly, disclosing and showing that they had based their story on inaccurate methodology and reached false and misleading conclusions. Despite this, the WSJ refused to submit its methodology...

0 15
The Parable of Alpha – A Lesson in Network-Effect Game Theory

This is a followup to my recent post on the True Cost of Bitcoin Transactions. A legion of Twitter trolls has been yelling at me, proclaiming that “since people are willing to pay higher prices, that proves Bitcoin’s value is growing.” This is actually a common sentiment among those who believe that blocks filling up is “no big deal.” As space gets tight, the argument goes, the transaction fees rise...

0 35
The True Cost of Bitcoin Transactions

It seems the Bitcoin community is not correctly tallying the true cost of Bitcoin transactions. The belief is that Cost = Miner Fee. We’ll show why this is wrong, but the fee is of course part of the cost, so let’s examine it first… Fees are currently averaging in the range of $0.30 to $1.00 per transaction. Here’s an anecdotal sample as I’m writing this: Block #451871   $1,287 in fees...

0 76
No, non-Bitcoin blockchains are not “disrespectful” to Satoshi

In a recent interview with Tuur Demeester, Paul Sztorc made the interesting claim that “non-Bitcoin blockchains are disrespectful to Satoshi.” He has elsewhere and for a long time criticized non-Bitcoin digital assets of all forms. He generally refers to anyone not building exclusively with Bitcoin as a scammer, including me. Sztorc, while clearly a brilliant technical thinker and a man who has made great contributions to Bitcoin and blockchain theory,...

0 51
The Cryptobond and AutoPublic Companies

The Bitfinex hack and subsequent release of BFX Coin is a seminal moment in cryptofinance. BFX Coin is a promise of Bitfinex to pay $1 in the future. If their exchange recovers from the hack, and grows, then it's feasible they pay this. The value of the coin will rise toward its $1 par value. If their exchange stagnates or fails, then it's not feasible. The value of the coin...

0 22
Thoughts on the Bitfinex Strategy

On August 2nd, Bitfinex, by some metrics the largest Bitcoin exchange in the world, was hacked and 199,756 bitcoins (~$72m) were stolen. The Bitcoin price plummeted, and the industry gasped in horror, if not surprise, that yet another huge theft had occurred. With fiery (and justified) condemnation, many fingers can be pointed. Bitfinex clearly screwed up epicly in its wallet management and oversight, and perhaps some blame lies with BitGo...

0 21
The Importance of Bitcoin Not Being Money

For years, many in the Bitcoin industry have eagerly defined and advocated “Bitcoin as money” to a skeptical world. I share the blame: with certainty I argued that Bitcoin was not only money, but was the best money mankind had ever seen. But in our haste, we misled ourselves and others. Bitcoin isn't money after all. Our mistake, as Bitcoin advocates, was that in our excitement over an early, popular...

0 36
Mea Culpa

"It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." -Mark Twain So today a friend of mine posted a link on /r/bitcoin to a Liberty Entrepreneurs podcast with me and Roger Ver. The link never appeared for anyone but the friend who published it. It appeared to have been actively censored from /r/bitcoin. I decided action needed to...

0 16
Jeremy’s Challenge and Free Market Charity

Jeremy Gardner (@Disruptepreneur), a friend and pioneer in Bitcoinland, posed a wonderfully-written “Libertarian Challenge” several days ago. The objective was to convince someone to match his $1,000 donation to Unsung, an innovative new philanthropic platform for more effectively feeding the homeless, launched by non other than Bitcoin's own boy, Jason King. If the donation was matched, Jeremy promised to change his voter registration from Democrat to Libertarian, and vote for Gary Johnson in the...

0 17
Looting of the Fox

Looting of the Fox The Story of Sabotage at ShapeShift Bitcoin, as any system of man, exhibits together both the highest ideals of utopia, and the lowest residual trash of society. This is the story of how ShapeShift, a leading blockchain asset exchange platform, was betrayed. Not once, not twice, but three times in less than a month. In total, nearly two-hundred thousand dollars in cryptocurrency was stolen by thieves...

0 46