5 Blockchain Problems: Security, Privacy, Legal ...

Take your shoes off (and put them on your head)

Bitcoin's less serious side, a subreddit for the community of bitcoin users, not just speculatards. You will find no cultists here.
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An Open Standard To Problem Solving

silene is a community for posting interesting solutions to problems by outlining the solutions themselves and their applications to other problems in a simple, concise manner.
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"Every day that goes by and Bitcoin hasn't collapsed due to legal or technical problems, that brings new information to the market. It increases the chance of Bitcoin's eventual success and justifies a higher price."- Hal Finney

Thank you Hal.
submitted by coinmoon_com to Bitcoin [link] [comments]

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - “I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose,”

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - “I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose,” submitted by DEYoungRepublicans to Bitcoin [link] [comments]

I'm a Bitcoin millionaire looking to retire by working for a pretend company. Any legal problems with this?

I'm now sitting at about $1.8MM worth of Bitcoin and I am ready to become financially independent.
My yearly expenses are comfortably below what I'd be withdrawing if I followed the 4% rule, and I have no plans to increase them. I have a year's worth of expenses in fiat for emergency (half invested, half in savings).
I want to quit working, but I don't want to tell anyone. My parents, friends, and family have no idea about the Bitcoin. I am single and have no kids. I haven't told a soul about owning Bitcoin. I'm a very private person and socially awkward and I couldn't deal with having people find out.
I'd like to maintain the idea that I'm still working by pretending to work for an IT company (like an MSP) as a remote employee. This will allow me to "work" from home and while travelling.
The company won't actually exist on paper, and I'll be paying capital gains tax (right?) on the Bitcoin instead of income tax as I convert it over on an exchange. But my as far as my social life and social media is concerned, I will be working for this pretend company.
Are there any legal problems with doing this? Is there anything I need to know about? I have no intention of breaking the law or committing fraud.
submitted by throwaway93257012827 to PersonalFinanceCanada [link] [comments]

Watch interview @ryanxcharles PAYMAIL: id system on Bitcoin #BSV, send money over email, sign legally enforceable contracts, step 1 of solving onboarding problem. Malleability is a feature, nChain patents

https://www.youtube.com/watch?v=DJQd7zmRHBI&feature=youtu.be
submitted by 2763rxmh to bitcoincashSV [link] [comments]

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - “I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose.”

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - “I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose.” submitted by Anen-o-me to GoldandBlack [link] [comments]

Bitcoin Hits 6000! BitFinex Legal Problems - Will They Be Fugitives? Breaking Bitcoin Market Update

Bitcoin Hits 6000! BitFinex Legal Problems - Will They Be Fugitives? Breaking Bitcoin Market Update submitted by Crypto_Samuel to CryptoTradingFloor [link] [comments]

Bitcoin Hits 6000! BitFinex Legal Problems - Will They Be Fugitives? Breaking Bitcoin Market Update

Bitcoin Hits 6000! BitFinex Legal Problems - Will They Be Fugitives? Breaking Bitcoin Market Update submitted by Crypto_Samuel to CryptoCurrencyTrading [link] [comments]

"Every day that goes by and Bitcoin hasn't collapsed due to legal or technical problems, that brings new information to the market. It increases the chance of Bitcoin's eventual success and justifies a higher price." - Hal Finney

submitted by tmckn to Bitcoin [link] [comments]

Buy bitcoin in one country for low price and sell in other for a high price instantly ? Legal problems?

Alright first of all i whant to say this is a bussines i whant to do with my bussines parter we do all kind of bussines so we trust each other but what we whant to do is in his country bitcoin is selling for 14000 and in my country exchage i can sell for 15200 $ so we whant to buy for the low price transfer btc to my acount and i sell for the high i transfer money to him by fiat currency by wester union wich deposits are credited in 15 min more less trought borders no problem so i got to say also that in his country bitcoin is taxable and in my country they dont tax bitcoin
my main question is what are the legal problem this strategy can carry on for the long term what are the potential risk and why? taxes legal problems or bank problems?
my friend told me that they can suspect we are laundring money but we obiously dont we are just having a cut of the diference of price with the coins and thats it
ok guys that was it and thank you for any good information you can share with us it would be really apreciated
submitted by makingprofitmaster to Bitcoin [link] [comments]

Is Bitcoin the Solution to Legal Weed's Banking Problems?

Is Bitcoin the Solution to Legal Weed's Banking Problems? submitted by BitcoinMafia to weedbiz [link] [comments]

“Every day that goes by and Bitcoin hasn’t collapsed due to legal or technical problems, that brings new informatio… https://t.co/CSlyosIZDx - Crypto Dynamic Info - Whales's

Posted at: January 14, 2019 at 01:16AM
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submitted by cryptotradingbot to cryptobots [link] [comments]

Putting $400M of Bitcoin on your company balance sheet

Also posted on my blog as usual. Read it there if you can, there are footnotes and inlined plots.
A couple of months ago, MicroStrategy (MSTR) had a spare $400M of cash which it decided to shift to Bitcoin (BTC).
Today we'll discuss in excrutiating detail why this is not a good idea.
When a company has a pile of spare money it doesn't know what to do with, it'll normally do buybacks or start paying dividends. That gives the money back to the shareholders, and from an economic perspective the money can get better invested in other more promising companies. If you have a huge pile of of cash, you probably should be doing other things than leave it in a bank account to gather dust.
However, this statement from MicroStrategy CEO Michael Saylor exists to make it clear he's buying into BTC for all the wrong reasons:
“This is not a speculation, nor is it a hedge. This was a deliberate corporate strategy to adopt a bitcoin standard.”
Let's unpack it and jump into the economics Bitcoin:

Is Bitcoin money?

No.
Or rather BTC doesn't act as money and there's no serious future path for BTC to become a form of money. Let's go back to basics. There are 3 main economic problems money solves:
1. Medium of Exchange. Before money we had to barter, which led to the double coincidence of wants problem. When everyone accepts the same money you can buy something from someone even if they don't like the stuff you own.
As a medium of exchange, BTC is not good. There are significant transaction fees and transaction waiting times built-in to BTC and these worsen the more popular BTC get.
You can test BTC's usefulness as a medium of exchange for yourself right now: try to order a pizza or to buy a random item with BTC. How many additional hurdles do you have to go through? How many fewer options do you have than if you used a regular currency? How much overhead (time, fees) is there?
2. Unit of Account. A unit of account is what you compare the value of objects against. We denominate BTC in terms of how many USD they're worth, so BTC is a unit of account presently. We can say it's because of lack of adoption, but really it's also because the market value of BTC is so volatile.
If I buy a $1000 table today or in 2017, it's roughly a $1000 table. We can't say that a 0.4BTC table was a 0.4BTC table in 2017. We'll expand on this in the next point:
3. Store of Value. When you create economic value, you don't want to be forced to use up the value you created right away.
For instance, if I fix your washing machine and you pay me in avocados, I'd be annoyed. I'd have to consume my payment before it becomes brown, squishy and disgusting. Avocado fruit is not good money because avocadoes loses value very fast.
On the other hand, well-run currencies like the USD, GBP, CAD, EUR, etc. all lose their value at a low and most importantly fairly predictible rate. Let's look at the chart of the USD against BTC
While the dollar loses value at a predictible rate, BTC is all over the place, which is bad.
One important use money is to write loan contracts. Loans are great. They let people spend now against their future potential earnings, so they can buy houses or start businesses without first saving up for a decade. Loans are good for the economy.
If you want to sign something that says "I owe you this much for that much time" then you need to be able to roughly predict the value of the debt in at the point in time where it's due.
Otherwise you'll have a hard time pricing the risk of the loan effectively. This means that you need to charge higher interests. The risk of making a loan in BTC needs to be priced into the interest of a BTC-denominated loan, which means much higher interest rates. High interests on loans are bad, because buying houses and starting businesses are good things.

BTC has a fixed supply, so these problems are built in

Some people think that going back to a standard where our money was denominated by a stock of gold (the Gold Standard) would solve economic problems. This is nonsense.
Having control over supply of your currency is a good thing, as long as it's well run.
See here
Remember that what is desirable is low variance in the value, not the value itself. When there are wild fluctuations in value, it's hard for money to do its job well.
Since the 1970s, the USD has been a fiat money with no intrinsic value. This means we control the supply of money.
Let's look at a classic poorly drawn econ101 graph
The market price for USD is where supply meets demand. The problem with a currency based on an item whose supply is fixed is that the price will necessarily fluctuate in response to changes in demand.
Imagine, if you will, that a pandemic strikes and that the demand for currency takes a sharp drop. The US imports less, people don't buy anything anymore, etc. If you can't print money, you get deflation, which is worsens everything. On the other hand, if you can make the money printers go brrrr you can stabilize the price
Having your currency be based on a fixed supply isn't just bad because in/deflation is hard to control.
It's also a national security risk...
The story of the guy who crashed gold prices in North Africa
In the 1200s, Mansa Munsa, the emperor of the Mali, was rich and a devout Muslim and wanted everyone to know it. So he embarked on a pilgrimage to make it rain all the way to Mecca.
He in fact made it rain so hard he increased the overall supply of gold and unintentionally crashed gold prices in Cairo by 20%, wreaking an economic havoc in North Africa that lasted a decade.
This story is fun, the larger point that having your inflation be at the mercy of foreign nations is an undesirable attribute in any currency. The US likes to call some countries currency manipulators, but this problem would be serious under a gold standard.

Currencies are based on trust

Since the USD is based on nothing except the US government's word, how can we trust USD not to be mismanaged?
The answer is that you can probably trust the fed until political stooges get put in place. Currently, the US's central bank managing the USD, the Federal Reserve (the Fed for friends & family), has administrative authority. The fed can say "no" to dumb requests from the president.
People who have no idea what the fed does like to chant "audit the fed", but the fed is already one of the best audited US federal entities. The transcripts of all their meetings are out in the open. As is their balance sheet, what they plan to do and why. If the US should audit anything it's the Department of Defense which operates without any accounting at all.
It's easy to see when a central bank will go rogue: it's when political yes-men are elected to the board.
For example, before printing themselves into hyperinflation, the Venezuelan president appointed a sociologist who publicly stated “Inflation does not exist in real life” and instead is a made up capitalist lie. Note what happened mere months after his gaining control over the Venezuelan currency
This is a key policy. One paper I really like, Sargent (1984) "The end of 4 big inflations" states:
The essential measures that ended hyperinflation in each of Germany,Austria, Hungary, and Poland were, first, the creation of an independentcentral bank that was legally committed to refuse the government'sdemand or additional unsecured credit and, second, a simultaneousalteration in the fiscal policy regime.
In english: *hyperinflation stops when the central bank can say "no" to the government."
The US Fed, like other well good central banks, is run by a bunch of nerds. When it prints money, even as aggressively as it has it does so for good reasons. You can see why they started printing on March 15th as the COVID lockdowns started:
The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.
In english: We're going to keep printing and lowering rates until jobs are back and inflation is under control. If we print until the sun is blotted out, we'll print in the shade.

BTC is not gold

Gold is a good asset for doomsday-preppers. If society crashes, gold will still have value.
How do we know that?
Gold has held value throughout multiple historic catastrophes over thousands of years. It had value before and after the Bronze Age Collapse, the Fall of the Western Roman Empire and Gengis Khan being Gengis Khan.
Even if you erased humanity and started over, the new humans would still find gold to be economically valuable. When Europeans d̶i̶s̶c̶o̶v̶e̶r̶e̶d̶ c̶o̶n̶q̶u̶e̶r̶e̶d̶ g̶e̶n̶o̶c̶i̶d̶e̶d̶ went to America, they found gold to be an important item over there too. This is about equivalent to finding humans on Alpha-Centauri and learning that they think gold is a good store of value as well.
Some people are puzzled at this: we don't even use gold for much! But it has great properties:
First, gold is hard to fake and impossible to manufacture. This makes it good to ascertain payment.
Second, gold doesnt react to oxygen, so it doesn't rust or tarnish. So it keeps value over time unlike most other materials.
Last, gold is pretty. This might sound frivolous, and you may not like it, but jewelry has actual value to humans.
It's no coincidence if you look at a list of the wealthiest families, a large number of them trade in luxury goods.
To paraphrase Veblen humans have a profound desire to signal social status, for the same reason peacocks have unwieldy tails. Gold is a great way to achieve that.
On the other hand, BTC lacks all these attributes. Its value is largely based on common perception of value. There are a few fundamental drivers of demand:
Apart from these, it's hard to argue that BTC will retain value throughout some sort of economic catastrophe.

BTC is really risky

One last statement from Michael Saylor I take offense to is this:
“We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,” MicroStrategy CEO said in an interview
"BTC is less risky than holding cash or gold long term" is nonsense. We saw before that BTC is more volatile on face value, and that as long as the Fed isn't run by spider monkeys stacked in a trench coat, the inflation is likely to be within reasonable bounds.
But on top of this, BTC has Abrupt downside risks that normal currencies don't. Let's imagine a few:

Blockchain solutions are fundamentally inefficient

Blockchain was a genius idea. I still marvel at the initial white paper which is a great mix of economics and computer science.
That said, blockchain solutions make large tradeoffs in design because they assume almost no trust between parties. This leads to intentionally wasteful designs on a massive scale.
The main problem is that all transactions have to be validated by expensive computational operations and double checked by multiple parties. This means waste:
Many design problems can be mitigated by various improvements over BTC, but it remains that a simple database always works better than a blockchain if you can trust the parties to the transaction.
submitted by VodkaHaze to badeconomics [link] [comments]

Bovada Withdraw

So previously, I won a little bit of money and simply took the winnings straight from bovada to cash app. I tried to do that today and it’s saying I can’t use that address. Upon doing a little research I learned most people say not to do that anyways. I have bread wallet, but I got eth stuck in there and I feel like that app is a little to technical for me. Now looking at downloading coin base. Is that my best option and what’s gonna be the easiest way to get it into my cashapp? Thanks in advance
submitted by DirtyDowns to sportsbook [link] [comments]

"Every day that goes by and Bitcoin hasn't collapsed due to legal or technical problems, that brings new information to the market. It increases the chance of Bitcoin's eventual success and justifies a higher price."- Hal Finney /r/Bitcoin

submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin sale, legal problems??

I'm about 95% positive I just sold bitcoin to two backpage pimps.
Does this open me to any legal issues if I find out for sure that's what going on?
submitted by comp21 to Bitcoin [link] [comments]

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - “I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose,”

This is the best tl;dr I could make, original reduced by 75%. (I'm a bot)
Former Republican congressman Ron Paul says he is all for bitcoin as an alternative currency, as long as everything about the controversial, virtual asset is legal.
Bitcoin is a virtual asset that can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government.
Last month, Chicago-based derivatives exchanges Cboe Global Markets and the CME Group launched bitcoin futures, but some banks and brokerages remain reluctant to trade them, Reuters reported.
Bitcoin is one of the wildest trades in the market today, delivering sharp gains and losses that defy explanation.
"And nobody has anything they can touch. Somebody has to sort it out if it ever becomes money. But I have questions because historically, money should be something that's tangible, but it should be legal, as long as there's no fraud," said Paul.
U.S. fund managers are ramping up efforts to tap into the fever surrounding digital assets, and the latest planned bitcoin products could deliver some head-turning and stomach-churning price movements if they come to market.
Summary Source | FAQ | Feedback | Top keywords: bitcoin#1 Paul#2 money#3 trade#4 reports#5
Post found in /Bitcoin and /BitcoinAll.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose,

Ron Paul: 'Bitcoin Should Be Legal, as Long as There's No Fraud' - I abhor the system that we have. The official counterfeiters are at the Federal Reserve. That is a big misstep and a big problem. So people should have the right to choose, submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Buy bitcoin in one country for low price and sell in other for a high price instantly ? Legal problems? /r/Bitcoin

Buy bitcoin in one country for low price and sell in other for a high price instantly ? Legal problems? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin mentioned around Reddit: I'm a Bitcoin millionaire looking to retire by working for a pretend company. Any legal problems with this? /r/PersonalFinanceCanada

Bitcoin mentioned around Reddit: I'm a Bitcoin millionaire looking to retire by working for a pretend company. Any legal problems with this? /PersonalFinanceCanada submitted by BitcoinAllBot to BitcoinAll [link] [comments]

What’s the deal with Bitfinex and the legal problems... should I move my bitcoins out of there??

submitted by eyanez111 to Bitcoin [link] [comments]

Whats the deal with Bitfinex and the legal problems... should I move my bitcoins out of there?? /r/Bitcoin

Whats the deal with Bitfinex and the legal problems... should I move my bitcoins out of there?? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

11-14 23:12 - 'It’s a pump scheme of BCH et all made to join the reddit. Though legal, it may not be ethical. Proved the open source platform has moral crisis problem. My twitter is awesome, Democracy offers by reddit is beautiful.' (self.Bitcoin) by /u/karrcn removed from /r/Bitcoin within 42-52min

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[removed]
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It’s a pump scheme of BCH et all made to join the reddit. Though legal, it may not be ethical. Proved the open source platform has moral crisis problem. My twitter is awesome, Democracy offers by reddit is beautiful.
Go1dfish undelete link
unreddit undelete link
Author: karrcn
submitted by removalbot to removalbot [link] [comments]

Tutorial: Anonyme Bitcoin Börsen - Bitcoins handeln ohne ... KDW on FOX 5 PLUS TV Washington DC: Bitcoin - Legal Issues with Sudeep Bose How Bitcoin Works in 5 Minutes (Technical) - YouTube Carol R. Van Cleef on Bitcoin's future legal issues. The Digital Revolution: Blockchain – the legal issues ...

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Badrul Khan discussing legal issues of Bitcoin with Attorney Sudeep Bose. Aired on September 16, 2017. Bitcoin and cryptocurrency mining explained with the Byzantine Generals Problem. We use it to explain the essence of cryptocurrency mining. https://www.udemy... Where do Bitcoins come from, and what is Bitcoin "mining"? Peter van Valkenburgh, Director of Research at Coin Center, explains the role of miners in a syste... Catherine Hammon, Digital Revolution Knowledge Lawyer, and Nick Thody, Head of Knowledge, consider the legal issues surrounding blockchain We sat down with Carol R. Van Cleef at Bitcoin 2013 to discuss the future of Bitcoin's legal status. Full Interview coming soon. Complete Bitcion 2013 Coverage: btcjournal.com.

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