☑ Blockchain: The good, the bad and the ugly🔗

 

I get asked a lot to explain what blockchain and cryptocurrency are.

What are its benefits and risks? How will it affect us? Although it would

take a book to really explain in great detail all of this, I've put together

this short post in hopes that this helps somewhat. There is a lot more to

this tech, but it requires a lot of background understanding, but, at the

core is what is listed below.

Simply put, blockchain is basically a distributed database that cannot be

tampered with, and tokens (Bitcoin) are generated by this blockchain. It

is hacking and counterfeiting proof.

That's the super short description. Now, assuming we are talking about

Bitcoin and its blockchain, here are some of its properties.

 

Pros:                 

Bitcoin is decentralized, meaning it is not housed in one location.

Bitcoin does not have a central authority. No government or company

owns or runs it.

There is no central server; the bitcoin network is peer-to-peer, meaning

everyone can participate in the network.

There is no central storage; the bitcoin ledger is distributed.

The ledger is public; anybody can store it on their computer.

There is no single administrator, the ledger is maintained by a network

of equally privileged miners, that validate transactions.

Anybody can become a miner.

Any additional transaction blocks to the ledger are maintained through

competition. Until a new block is added to the ledger, it is not known

which miner will create the block.

The issuance of bitcoins is decentralized. They are issued as a reward

for the creation of a new block.

Anybody can create a new bitcoin address (a counterpart of a bank

account) without needing any approval.

Anybody can send a transaction to the network without needing any

approval; the network merely confirms that the transaction is legitimate.

Anonymity (or pseudo-anonymity) of a person is maintained on a

blockchain.

 

Definitions:            

Blockchain  

Public record-keeping book, database or ledger that

records transactions.

 

Block-blockchains  

Are broken up into blocks. Each block containing a

list of transaction made duringa time period and each block containg a

cryptographic key or hash of the previous block up to the genesis block

of the chain.

 

Nodes 

 Network of communicating nodes, or servers, running bitcoin

software maintains the blockchain.

 

Network nodes  

Can validate transactions and then add them to their

copy of the blockchain, and then broadcast these ledger additions to

other nodes every 10 mins.

 

Mining 

In order to determine randomly who gets to write a block to the

blockchain nodes or miners, do proof-of-work. This PoW requires miners

to find a number (or lottery) called a nonce.

 

Wallets 

Contains both private and public addresses for transactions,

which are like an email address and password.

 

Tokens

          Entries on blockchain that represent transactions and can be

traded.

 

Cryptocurrency  

Tokens traded as money.

 

Smart-Contracts 

Entries on blockchain that are programmable code

and that represent and behave as contracts.

 

Cons (Criticism):                

Forking debasement, meaning anyone can copy the blockchain code

and create their own blockchain and money.

Fraud at Exchanges, with crypto keys and funds easily stolen or

manipulated.

Mining pools controlled and manipulated by big tech and people with

money.

Energy consumption. The amount of energy needed to mine crypto is staggering!

Open-source developers need approval by programmers in order to

make changes by the people in charge of the project. Those that

approve can be corrupted and can add their own code.

Over 50% node attack can change ledger contents. This can happen if all

miners collude with each other.

Blockchains can be modified via forking with additional layers, much

like what happened to bitcoin in 2017 and when the Lightning Network

2nd layer protocol was added, that allowed the bypass of blockchain

consensus.

There are more... just to name a few.

 

There are institutional blockchains and variants I call hybrids. Here are

some of the features:

Hybrid systems blockchains are centralized.

Hybrid systems have central authorities.

Hybrid systems are not P2P and have central servers.

Hybrid systems storage is distributed only on centralized servers.

Hybrid systems storage is possible if you are a node, and nodes/servers

are housed in central locations and expensive.

Miners are servers/nodes and they can all be pooled, managed and

centralized.

There is no mining in Hybrid systems and if the node belongs to a bank

or any other central system.

In a hybrid system the centralized system is not obliged to use proof of

work for competition.

In Hybrid systems, they can mint as many coins as they wish anytime

they choose.

In Hybrid systems, you only get public address key (bank account) but

not the private key.

In hybrid systems, there may be a need to be approved or some contract

fulfillment before a transaction can take place and recorded.

In hybrid systems, there is no anonymity.

And then there is the big issue l have, is what happens to your

cryptocurrency if it is delisted from all exchanges, blocked at vending

machines and blocked by online merchants? Especially when the central

banks create their own version of crypto in a cashless society? 

Whata happens if the entire supply chain becomes digitally inaccessible to your

crypto?

Applications - such as human capital bonds.

Commoditization and tokenization of nature.

Tokenizing behavior such as workforce and educational space.

Buying and selling crypto as "gas" for smart-contract networks, such as

Al-as-a-Service (AaaS) that requires crypto ETH for fulfillment of Al used

in surveillance state operations and systems.

Again, these are just some of the pros, cons and concerns of

blockchains. There are many more, but it requires more discussion.

....end

Globalist Coin? Would the Globalists use a cryptocurrency for their One-World-Currency?

Issuing digital Fiat Currency was always going to be the candidate for the famed "Öne-World-Currency" planned by the internationalist central banking "NWO" because typing ones and zeros onto your digital balance sheet by legal mandate was always going to be easier than printing physical money. But digital Fiat Currency is not a Cryptocurrency.  The only thing they have in common is being digital.  The globalist angle here is actually a cashless society to completely control the grid (meaning credit card transactions, payments, foreign exchange and bank accounts)  This way they shut out what used to be known free-market capitalism in the good old days, now known as the informal sector.  Such entrepreneurial enterprises outside of the centralised framework of banking, SWIFT, PAYPAL, and the bankster frameworks of foreign exchange and Visa/Mastercard accepted by all the retail monopolies, usually globalist retail companies by policy rather than ideology even if they are not multinationals because they are still corporate.  Crypro may shut out beggars for now but even though it's digital its decentralised and controlled by the people on a distributed network of peers via a blockchain rather than some standardised SAP system under centralised bankster administration.  This clip will demonstrate how Bitcoin is boosting the informal sector, particularly the dark web and the surprising conclusions.we can now come to.

The other important factor is that real crypto cannot be printed by some shadowy central cabal, by government or by corporations, it has to be mined.  This would collapse the economy where the banksters rely on QE money printing for their means of control, so digital currency and cryptocurrency have even less in common than most people think.

Here are my requirements for real crypto if you are interested.

The establishment oligarchs have taken gold and silver, peoples money, and issued our currency for us.  Their oligarchy establishment will only accept their currency and can turn you off from their grid under centralised control at any moment.  Without cash, you would be utterly lost in that situation.  With crypto, you could at least transact anonymously if you know the means and nobody can "switch you off".

This is the main reason why I will not go full socialist under corporate/govt administration as long as we are on a monetary system, although it does seem likely that some or other form of socialism may be needed for a long time yet for medical, pension, military, prisons and social services to keep the multinational globalist vultures away from the benefits that they are entitled to since it's their tax that funds it. Those that take a simple "pro" or änti" stance on capitalism lack imagination or don't understand that socialism can be used by malicious forces just as capitalist forces do on Wall Street today.  Capitalism is evolving away from the oligarchs to the people by the following means, slowly reintegrating into society":

Capitalism can be for the people or entrepreneurial even today, even though it's moving outside the formal sector, which the globalists would consider "The Establishment."

Examples:

• Cryptocurrency
• Street Vendors
• Some taxi drivers outside of globalist schemes like Uber
• The black market
• Smuggling 
• The Dark Web
• Stokvels
• Spazza Shops
• etc... basically anywhere where they don't take credit cards.

So why would the globalists want Crypto? I doubt it, but there are rumours that if Hashgraph is used instead of blockchain, which solves the Byzantine Generals problem of consensus, is not open source software, the crypto may not be decentralised, especially if they use pre-mined tokens, and all sorts of back-doors could exist for the globalists to move into, copyright or monopolise rather than destroy cryptocurrency.  They are already buying and gaming crypto, but this will never give them the control they need, they just influence the investment value.  Ultimately crypto is increasing in value due to scarcity whereas fiat is inflationary due to expanding the currency supply faster than goods and services, and deficit spending growing faster than GDP.

The fiat currency "One World Currency" would likely be digital, and follow a similar path that the Euro did with the globalist EU single currency zone, it would not be a cryptocurrency.  The IMF already has the prototype, the Special Drawing Right, known as the SDR, currently being made into a currency basket with the USD, Euro, Yuan, Ruble in preparation for phase-in after the IMF forecloses on the Fed, whenever that may be.

That being said, the following developments are interesting:

The above clip gives a thorough synopsis, but here are some contrasting takes from differently aligned sources:

https://www.cnbc.com/2019/06/05/facebook-cryptocurrency-coming-in-june-report.html

https://thenextweb.com/hardfork/2019/06/06/facebook-globalcoin-cryptocurrency/

https://www.forbes.com/sites/billybambrough/2019/06/06/facebooks-radical-bitcoin-beating-cryptocurrency-plans-revealed/#45bce3053564

Keep watching that space!

Having a free market of various cryptocurrencies has its benefits,  such as not having central bank monopoly of the money creation process and having them LOAN BACK our money to us as if it were theirs and afford bondholders investment opportunity with the nation's taxation as surety just to enable deficit spending, but there is a caveat.  One of the fundamental points of having a non-inflationary cryptocurrency is precisely because having only a fixed number of Bitcoins or whatever able to be mined, scarcity is ensured, but removing limits on the number of crypto's themselves defeats this purpose because even if the banksters are not creating the actual currency, the system can be gamed, so it will interesting to see how the community deals with this challenge.

The Best Cryptocurrencies

Time to get real. If your blockchain:
* Has a CEO
* Contains pre-mined tokens
* Distributed tokens via an ICO
* Can execute a forced hardfork
* Doesn't use a consensus algorithm
* Can be changed in a short time.

...then it's most likely centralized.

It is more of the coins than you think. Take for example Ethereum:
* Executed a forced hardfork
* Has a central point, Vitalik
* 20℅ of the coins were pre-mined

It follows logically that Ethereum is centralized.

Here are the proper decentralized crypto blockchains:

* BITCOIN
* LITECOIN
* MONERO

I'm a hardcore ideologist more than an investor, but the upside of having a blockchain that leaves central banks utterly incapable of taking control of your blockchain is that they are probably the most fundamentally economically viable too. That being said I still think Ethereum, Dash, Ripple and Cardano plus a handful of others are great coins, but for different and interesting reasons.

When it comes to distributed ledger solutions remember that Blockchain is Open Source so any back-doors can be identified and nobody can own the source code.

Be very mindful of the fact that Hashgraph is patented, meaning it represents an opening for central banker takeovers.

You have been warned!

7 Crypto-Friendly Countries

Regardless of the underlying specifics of cryptocurrency technology, whether it's Bitcoin, Ethereum, Ripple, Cardano or EOSfor example, all digital currencies are essentially borderless. They can be mined just about anywhere and generally, traded globally.

Still, not every location is as friendly to the burgeoning asset class as others. Some countries offer tax friendly considerations for crypto businesses while others have relatively easy regulations. Some are encouraging digital cash as an alternative to fiat money and some are even contemplating launching their own alt-currencies. Some countries have a variety of initiatives in play to foster cryptocurrency business and blockchain innovation.

Below are seven locations setting up systems that are cryptocurrency friendly.

https://m.investing.com/analysis/most-cryptocurrency-friendly-countries-200313460

Cryptocurrency And Blockchain News In South Africa. May 2018

Earlier this year, the South African Reserve Bank (SARB) revealed its plans to launch an initiative called Project Khokha, to experiment with distributed ledger technologies.

The project’s goal is to replicate interbank clearing which currently runs on the South African Multiple Option Settlement system.

Click here. for the rest of the article on My Broadband.

Or here for a Steemit article regarding the SARB trialing Bankymoon.

SARS’S STANCE ON THE TAX TREATMENT OF CRYPTOCURRENCIES

PRETORIA, 06 April 2018 - The South African Revenue Service (SARS) will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.

Click Here. (Link to SARS website info)

Or

Click Here. (Find out how Luno helps you pay your taxes earned from Crypto gains)

And for general interest this article written by Kent Barton who believes the enemy of the Crypto community is not just the financial establishment:

"Let’s start with a simple and powerful premise: distributed computing has the potential to make the world a better and freer place.

Can this fast-evolving technology actually fulfill that grand promise? While early indicators are good, we also face a mortal enemy: ourselves.

Click here.

Seeing Bitcoin as an investment only is missing the point entirely

If you pay attention to the average investors advice, and you have any sort of vague grasp of the ideology behind Cryptocurrency, you will straightaway notice that many are fimly locked into a paradigm that they seem unable to begin to appreciate may be causing their myopia.  They cannot fundamentally let go of the outdated notion that Crypto is a stock or investment, and that alone is what makes them unable to understand what is happening as anything but a bubble. The real bubbles are the DOW, S&P, NASDAQ, the Bond market etc all puffed up by QE and cheap money printed after the 2008 crises by the Fed.
Steve Keen explains the first Central Bank created market bubble beautifully here:
https://www.rt.com/op-edge/418057-us-stock-crash-banks/

But regarding bubbles and viewing Bitcoin through this prism, This is entirely missing the point. There is no precedent here. We are dealing with the first credible currency alternative to the fiat currency controlled by the banker cabal behind the worlds central banks (the Fed, The ECB, The BOJ, the SARB etc)

As soon as this is understood you realize that there is no fundamental valuation on this "stock". Suddenly all the worlds fiat becomes potential market-share and value from nothing is absolutely possible. Values of over a thousand dollars don't seem unreasonable, market demand places the realistic price for Bitcoin between 100 000 and one million dollars per Bitcoin, depending on the demand vs fiat, the proven money of gold/silver other crypto in the emerging basket, most of which will go to zero when the winners succeed. These values are not just possible, but probable with the blockchain distributor ledger backed currency, aided by the real money criteria "store of value" (like gold) potential. Fiat by comparison is not created with scarcity but can be printed out of thin air, making it not scarce and backed by value but infinitely printable and inflationary by design of fractional reserve and QE. Fiat is backed by INTEREST BEARING DEBT.

One is based in value, the other in debt.

This amazing tool will put you in the picture:

http://fiatleak.com/

This understanding is not unlike looking at a three dimensional illusion on a 2D page, letting your eyes blur and BOOM, suddenly you see the image emerge in three dimensions out of nothing.  At the risk of coming across as poetic I assure you I am not stretching. We are dealing with the most important revolution in money in living memory,

The banks drove the Dotcom and Subprime bubbles, this is not like them, banks are AFRAID of crypto, it could make them irrelevant at a time when bank bailouts from the last bankster caused bubble cost us 30 TRILLION dollars, nearly thirty years of the entire annual budget of the USA!

You don't believe me?

https://www.cnbc.com/amp/id/45674390

Crypto is peer to peer decentralized currency.  If we want to escape bankster tyranny we need vision, we need to stop being defeatist and embrace peoples money.

Handy Globalist English Into Plain English Translator

With the vast fortunes spent by large multinationals on PR "think tanks", benevolent sounding "foundations" and advertising spin doctors (with the express purpose of sanitizing their projects/products) it's little wonder we find ourselves out in the wilderness regarding who can be trusted.  At the level of lobbied multinational interests public sentiment is critical for political potency.  Too much outrage can sabotage the slickest corporate outfit.  Consent must be manufactured at all costs.

Don't fall for 'sustainability' 

With this in mind I would like to suggest a method that may be useful.  Use this (admittedly) cynical translator, which aims to translate corporate lingo and catchphrases into plain English but assuming the worst. This provides a scale of two extremes.  Look at the stated goal VS my worst case translated scenario, then look at the organisation in question and decide for yourself where their interests lie, and somewhere in between you will likely get a sense of where they are truly pitched.

•  End poverty in all its forms everywhere
• Translation: Centralized banks, IMF, World Bank, Fed to control all finances, digital one world currency that is BANK controlled rather than Cryptocurrency,  in a cashless society, using Hashgraph instead of Blockchain. 

• Feed the world
• Translation: Control the worlds food supply.

• Efficient agriculture, achieve food security and improved nutrition and promote sustainable farming.
• Translation: GMO

• Secure Society
• Translation: Prison Planet

• Ensure healthy lives and promote well-being for all at all ages
• Translation: Mass vaccination of proven or unproven products, big pharma lobby and pvt medi care, Codex Alimentarius

• Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
• Translation: UN propaganda, brainwashing through compulsory education from cradle to grave.

• Ensure availability and sustainable management of water and sanitation for all
• Translation: Privatize all water sources, don’t forget to add fluoride

• Ensure access to affordable, reliable, sustainable and modern energy for all
• Translation: Smart grid with smart meters on everything, peak pricing

• Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Translation: TPP, NAFTA, free trade zones that favor mega-corporate interests and franchise operations over entrpreneurs, McJobs over careers.

• Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
• Translation: Toll roads, push public transit, remove free travel, environmental restrictions

• Reduce inequality within and among countries
• Translation: Even more regional government bureaucracy like a mutant octopus

• Make cities and human settlements inclusive, safe, resilient and sustainable
• Translation: Big brother big data surveillance state

• Ensure sustainable consumption and production patterns
• Translation: Forced austerity

• Take urgent action to combat climate change and its impacts*
• Translation: Cap and Trade, carbon taxes/credits, footprint taxes (aka Al Gore’s wet dream)

I did a detailed post where I rip apart the climate change lie here: 

http://dwahts.blogspot.co.za/2018/03/scientific-consensus-is-that-consensus.html?m=1

• Conserve and sustainably use the oceans, seas and marine resources for sustainable development
• Translation: Environmental restrictions, control all oceans including mineral rights from ocean floors

• Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
• Translation: More environmental restrictions, more controlling resources and mineral rights

• Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Translation: UN “peacekeeping” missions, the International Court of (blind) Justice, force people together via fake refugee crises and then mediate with more “UN peacekeeping” when tension breaks out to gain more control over a region, remove 2nd Amendment in USA

• Strengthen the means of implementation and revitalize the global partnership for sustainable development
• Translation: Remove national sovereignty worldwide, promote globalism under the “authority” and bloated, Orwellian bureaucracy of the UN

23) Cryptocurrency

The fascinating concept of decentralized cryptocurrency  http://en.wikipedia.org/wiki/Cryptocurrency  the jury is still out on their future and ability to upend banks monetary role. Or is it? Here is the defining article for me, suggesting persuasively that it is the future:  

http://knowmadiclife.com/kl-cryptos/