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Daily Crypto Nooooooz

Started by indiamikezulu, February 28, 2017, 12:47:57 AM

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indiamikezulu

Reasons for Crypto Adoption -- came up in conversation. I've started writing some notes. Here's a snippet:

Hyper-inflation: the statistics seem a bit haphazard. However, Venezuela has 800% inflation; South Sudan's rate is apparently over 400%; and Syria, Suriname, and Argentina are all over 40% -- which is definitely 'on ramp.' [http://www.tradingeconomics.com/country-list/inflation-rate ]. South Sudan's hyperinflation may not shake the world, but Argentina's economy is around the sixtieth-largest in the world, and Argentina's population is 43 million.
Hyper-inflation is considered by CrazyPants.com journalists to be the ultimate economic problem, so this reason for adoption isn't going away anytime soon.

indiamikezulu

'A disorderly restructuring would significantly increase the likelihood of an Italian exit from the Eurozone. In his interview with Bloomberg, Papadia was nonchalantly dismissive of such an eventuality. "When Italy will be confronted with the consequences (of Italexit), something will be done to avoid it," he said. "And maybe that will be the Troika coming to Italy." All said, of course, with a beaming smile.'

http://wolfstreet.com/2017/05/18/ecb-tapering-trigger-disorderly-restructuring-italian-debt-return-to-national-currency/

' . . . the Troika coming to Italy' [beaming smile]?? Yeh, well, it worked okay for Greece -- no wait . . .

indiamikezulu

' . . . new legislation that would allow the government to have control over any material posted, shared, and published online.'

https://www.rt.com/uk/388987-theresa-may-surveillance-internet/

My position has long seemed naive to many: automated exchanges are convenient, okay; but I will happily settle for 100% grass-roots use and price discovery.

indiamikezulu

Okay, here is 'The Report' sparked by our conversation:

Cryptos are gonna attract immense amounts of capital, and one consequence will be that the number of cryptos that prosper will be much greater than we thought even just weeks ago.

But what might the specific reasons for adoption be? Well, that subject came up in discussion among us IndiaMikeZulu guys; and I found myself clumsily categorizing those reasons:

Hyperinflation (which I'll class as 'political')
Demonetization (political)
Capital controls (political)
War on Cash (political)
Anti-Government sentiment (political)
Remittance (economic)
Crypto-as-payment-method (economic)
Partnership-with-legacy-banking-system (economic)
Special Bonus Category One: Eurozone disintegration (political)
Special Bonus Category Two: increase in smartphone use (technological)


Hyper-inflation: the statistics seem a bit haphazard. However, Venezuela has 800% inflation; South Sudan's rate is apparently over 400%; and Syria, Suriname, and Argentina are all over 40% -- which is definitely 'on ramp' to hyper-inflation.
[http://www.tradingeconomics.com/country-list/inflation-rate ]. South Sudan's hyperinflation may not shake the world, but Argentina's economy is around the sixtieth-largest in the world, and Argentina's population is 43 million.
Hyper-inflation is considered by CrazyPants.com journalists to be the ultimate economic problem, so this reason for adoption isn't going away anytime soon.

Demonetisation:
http://www.visualcapitalist.com/global-war-cash/
Norway, Sweden, Denmark, Belgium, France, the U.S., Kenya, South Korea – the list is long and heavy duty. And India? One might almost think that the Indian government is secretly on our side!

Capital Controls/bail-ins (yes, the categories overlap): consider China, Cyprus, the Ukraine, and India. All have imposed capital controls, and in each case it boosted crypto adoption.
Note: very few folks know just how many nations have already legislated for bail-ins. That is, the powers that be obviously intend to increase the use of capital controls.

War on Cash: governments are gonna herd people to a fork in the road. People will then either acquiesce, and go down the path of all-electronic-fiat; or they'll refuse/resist. Some resisters will go to bullion – but there are limitations there. Others will go to cryptos.
One thing is worth noting: many of those who do resist are libertarians; and if they do decide to adopt cryptos, they'll do a good job of it.

Anti-Government Sentiment (yes, the categories overlap):
The first 'political cryptos' – Freicoin, Maza Coin, even the 'country coins' – fared poorly because the citizens of Planet Krypto forget to connect them to the outside world; but that was then, this is now: http://www.coindesk.com/palestinian-government-bitcoin-currency/
The Eurozone isn't the only entity set to disintegrate. The era of Ever-Larger-Bureaucracies is over, and it's easy to see how dissident groups of many types might find cryptocurrencies attractive; and I was amazed at the number of these movements that exist: https://en.wikipedia.org/wiki/Lists_of_active_separatist_movements
Note again that such adopters will be highly motivated to use cryptos as currencies.

Remittance:
' . . . bitcoin powered remittances now account for 20% of the Asian remittance corridor between South Korea and the Philippines.'
https://bravenewcoin.com/news/bitcoin-remittances-20-percent-of-south-korea-philippines-corridor/

Wikipedia lists 15 major remittance nations. The Philippines (with its 20%) is at Nos. 3. These guys -- https://www.javelinstrategy.com/coverage-area/bitcoin-and-global-remittance-market -- claim that the industry involves a half a Trillion bucks a year.*
And what IMHO should equally interest us is the potential here for creating 'trading loops' in the countries that the cryptos are being sent back to. Thus, an Indonesian maid in Saudi could send crypto to her mum's smartphone, and her mum can use that crypto to buy stuff right there in their village!

Crypto-as-just-another-payment-method
(economic): this angle has been well considered. One thought, though: we all recognize the crazy range of nations' regulations concerning crypto currencies. We all know that the recalcitrant nations will end up with egg on their faces – imagine that some nation had banned emails in 1980, and stuck with the ban! So, the more crypto-positive nations will soon be siphoning wealth out of the less crypto-positive nations, and us GRS guys wanna make sure that, somewhere somehow, some adoption project is based on GRS.

Partnership-with-legacy-banking-system (economic): if cryptos are in any way popularised by being adopted by the legacy banking-system – a la Ripple in Japan -- so be it.
Ditto with Government e-fiats.
Ditto: https://www.cryptoninjas.net/2017/05/08/ira-financial-group-introduces-cryptocurrency-ira-tax-deferred-gains/
Ditto: http://www.marketwatch.com/story/heres-one-easy-way-to-get-exposure-to-bitcoin-ahead-of-the-winklevoss-etf-2016-08-29

Special Bonus Category One: Eurozone disintegration: it will be The New Fall of The Roman Empire, characterized by all manner of events that will reveal the worthlessness of banks and governments, and thereby the value of cryptographic currencies.

Special Bonus Category Two: ' . . . smartphone ownership rates in emerging and developing nations are rising at an extraordinary rate, climbing from a median of 21% in 2013 to 37% in 2015.'

http://www.pewglobal.org/2016/02/22/smartphone-ownership-and-internet-usage-continues-to-climb-in-emerging-economies/

Practically all cryptos now have android wallets. They are better wallets than they were. More people have smartphones that can run those crypto wallets. More people know of and are prepared to use crypto currencies. More people are available to help others adopt via cryptos. Niiiiiice!

indiamikezulu

'Santander Consumer USA Holdings Inc., one of the biggest subprime auto finance companies, verified income on just 8 percent of borrowers whose loans it recently bundled into $1 billion of bonds, according to Moody's Investors Service.

The low level of due diligence on applicants compares with 64 percent for loans in a recent securitization sold by General Motors Financial Co.'s AmeriCredit unit. The lack of checks may be one factor in explaining higher loan losses experienced by Santander Consumer in bond deals that it has sold in recent years . . . '

https://www.bloomberg.com/news/articles/2017-05-22/subprime-auto-giant-checked-income-on-just-8-of-loans-in-abs

This is a giant Government-approved scam, readers: Biggie Corp gives No-Hoper Guy a car. Biggie Corp gets the money. No-Hoper Guy defaults. The debt goes into an enormous sludge tank -- the bursting of which sparked the 2008 GFC -- and that's 21st-Century 'economics.'

And fiat currencies are bound up in it.

indiamikezulu

First this morning: one doesn't like to spread FUD; but there is just so much chatter about trouble on exchanges. [Me: Bittrex and Cryptopia: no trouble.] If you have any quality info, please do post it.

And meanwhile . . . Bam!!

http://www.cnbc.com/2017/05/23/moodys-downgrades-china-rating-to-a1-from-aa3-with-stable-outlook.html

jackielove4u

Quote from: indiamikezulu on May 24, 2017, 03:49:41 AM
First this morning: one doesn't like to spread FUD; but there is just so much chatter about trouble on exchanges. [Me: Bittrex and Cryptopia: no trouble.] If you have any quality info, please do post it.

No trouble for me on Bittrex. I don't use Cryptopia and Poloniex

indiamikezulu

'Coinbase informed users on its status page that their website was suffering from a degraded performance.'

https://cointelegraph.com/news/as-bitcoin-altcoins-fall-coinbase-bows-out-due-to-technical-problems

indiamikezulu

#113
http://www.zerohedge.com/news/2017-05-25/cryptocurency-chaos-bitcoin-bounces-back-after-crashing-asian-fever-re-emerges

Guys, because I follow the GFC avidly, I surf CrazyPantsJournalism sites like Zero Hedge and Market Oracle. These two started running articles on cryptos before the MSM sites. Now, they aren't necessarily accurate -- why can't these journalists reach out to crypto geeks? -- but without a doubt it's an established trend.

In a perfect world, we'd have a journalist based in our community writing articles for 'the outside.' Whatever: we have limited resources. Meanwhile, we can celebrate two things: One: the 'bridge' between us and the outside has grown from an Adventure-Movie rope-and-plank structure to at least a bitumen country highway; and Two: increasingly crazy events on the outside (notwithstanding the importance of legacy-bank adoption . . . ) will continue to drive crypto prices.



indiamikezulu

So much going on!!

One: the drop in prices doesn't concern me. It's a healthy stabilisation. And check the BTC-GRS pair on Bittrex: solid solid buy-support!

Two: having first noting that the following is information not criticism: this morning I had a pleasant exchange with a Redditor who chipped me for my enthusiasm for GRS. He posted an analysis, and I could only thank him for it . . . as I agree:

'Technologically speaking groestl has its shit together. But the website is old and outdated feeling... And, I hate to say this, but the name is just too "complicated" for western audiences. I know the story behind it, but if I didn't I'd probably be another American pleeb who wrote it off because "how do you pronounce that and wtf does it mean?!". Fundamentals : top notch. Sexiness : :( :('

I have fallen into the habit of using 'GRS.'

Three: various Reddit altcoin-discussion threads still have rather a lot of posts about Poloniex and other exchanges.

jackielove4u

Quote from: indiamikezulu on May 27, 2017, 03:39:14 AM
So much going on!!

One: the drop in prices doesn't concern me. It's a healthy stabilisation. And check the BTC-GRS pair on Bittrex: solid solid buy-support!

Two: having first noting that the following is information not criticism: this morning I had a pleasant exchange with a Redditor who chipped me for my enthusiasm for GRS. He posted an analysis, and I could only thank him for it . . . as I agree:

'Technologically speaking groestl has its shit together. But the website is old and outdated feeling... And, I hate to say this, but the name is just too "complicated" for western audiences. I know the story behind it, but if I didn't I'd probably be another American pleeb who wrote it off because "how do you pronounce that and wtf does it mean?!". Fundamentals : top notch. Sexiness : :( :('

I have fallen into the habit of using 'GRS.'

Three: various Reddit altcoin-discussion threads still have rather a lot of posts about Poloniex and other exchanges.

I saw that some messages of you on reddit were shadow banned (not sure why) hence i sent u an invite to become a moderator on /r/groestlcoin.
Kindly accept.

I agree with that redditor. We strongly believe that our fundamentals are not strong enough and we believe it will be ready end of this year. Kindly give us more time to finish that then we can work on our sexiness. For what its worth, our website will get a new redesign within 1 month to make it more modern.

indiamikezulu

Quote from: jackielove4u on May 27, 2017, 12:56:46 PM
Quote from: indiamikezulu on May 27, 2017, 03:39:14 AM
So much going on!!

One: the drop in prices doesn't concern me. It's a healthy stabilisation. And check the BTC-GRS pair on Bittrex: solid solid buy-support!

Two: having first noting that the following is information not criticism: this morning I had a pleasant exchange with a Redditor who chipped me for my enthusiasm for GRS. He posted an analysis, and I could only thank him for it . . . as I agree:

'Technologically speaking groestl has its shit together. But the website is old and outdated feeling... And, I hate to say this, but the name is just too "complicated" for western audiences. I know the story behind it, but if I didn't I'd probably be another American pleeb who wrote it off because "how do you pronounce that and wtf does it mean?!". Fundamentals : top notch. Sexiness : :( :('

I have fallen into the habit of using 'GRS.'

Three: various Reddit altcoin-discussion threads still have rather a lot of posts about Poloniex and other exchanges.

I saw that some messages of you on reddit were shadow banned (not sure why) hence i sent u an invite to become a moderator on /r/groestlcoin.
Kindly accept.

I agree with that redditor. We strongly believe that our fundamentals are not strong enough and we believe it will be ready end of this year. Kindly give us more time to finish that then we can work on our sexiness. For what its worth, our website will get a new redesign within 1 month to make it more modern.

For the record (I've already PM-ed Jackie):

whatever else is going on, as tens of billions of new capital continue to flow into the crypto sphere, three things will make a cryptographic currency attractive: One, having a good hard-capped algorithm -- check. Two: being established -- check. Three: having a talented dev team -- check.

indiamikezulu

#117
Crypto Political Guy (me) recently said: 'When an empire really starts going bad, it cranks out bulk regulations that it can't enforce.'

So, fast forward to this morning's Cointelegraph:

to 'manage . . . cryptocurrency concerns [like wannacry]'

' . . . compiling the application includes extensive paperwork, which may require legal and other outside services as well as many hours of work (which reportedly may result in a total expense between $50,000 to $100,000), making it challenging for smaller companies and startups to apply for the license.

The Bitlicense includes several obligations including hiring a compliance officer, consumer protection, anti-money laundering (AML), cyber security, business continuity, disaster recovery and capital requirements.'

https://cointelegraph.com/news/in-wake-of-global-cyberattacks-calls-for-bitlicensing-grow

How will this stop Wannacry Guy?

Well, Mr. Bureaucracy will get a late-Friday-evening phone call from the cyber-security officer of WeAren'tCyberTerrorists Inc. In a frantic whisper, Ms. Cybersec will convey that her boss, in the corner office at the end of hall, is Wannacry Guy!! Mr. Bureaucracy will then rifle through the files on his desk, find the forms that list W.A.C.T.'s street address, and within minutes, the black helicopters will be on their way.

indiamikezulu

I'm proud of my call on this one:

https://news.bitcoin.com/use-bitcoin-ecuador-grow-government-ban/

That is, that governments would try to use 'e-fiats' -- pseudo cryptos -- to beat real cryptos; but that folks would work out that these e-fiats will end up as useless as other guvvy money. Interestingly for us crypto geeks though, these attempts to thwart cryptos will ultimately aid us by familiarising citizens with e-currencies.