Ron Pauls Feels the war on Cash is an Authoritarian Power Grab

Going cashless is never the answer for consumers and business owners. The only entities benefiting from such a move are the local government and the banks. Cash is a form of financial freedom, something most of us will never see again. Ron Paul feels a cashless society is equal to an authoritarian power grab. An interesting take on things, that much is evident.

People with more than two peas for a brain know the economy is failing. Especially the dollar-based monetary system, as it is under serious threat. Ron Paul feels the same way and doesn’t agree with Janet Yellen’s assurances. Especially the promise of how we will not see another financial crisis in our lifetime is absolutely ridiculous. Ron Paul feels the next crisis could happen in August of this year, for all we know. A very bold statement that won’t sit too well with the economic powers.

Ron Paul Feels the war on Cash is Unjust

Interestingly enough, Ron Paul is trying to drive a point home. More specifically, he feels central bankers are always wrong. While there is some merit to such statements, it is not a popular train of thought. Then again, the ongoing war on cash seems to hint at the trouble which will befall us all. More specifically, if banks weed out cash, consumers and enterprises will be even more reliant on them. That is something everyone should try to avoid.

Then again, there are also reasons to turn cash into something else. Right now, cash isn’t a safe store of value by any means. Ron Paul feels buying gold, stockpiling provisions, and potentially even buying Bitcoin is the right way forward. The longer the next financial crisis stays away, the bigger the hit will be. Now is the time to prepare for the worst, as it will happen eventually. Those unprepared for such a situation will find themselves in a world of trouble.

It is remarkable to see Ron Paul is so outspoken about the looming crisis. In his opinion, authoritarians want to cling to power. This means weeding out cash is the number one priority right now. A cashless society will not work the way authoritarians envision it, though. People will lose confidence and revert to other means of payment in the end. Cash is not the enemy here, that much is evident. The real enemies are the banks and the government, as it always has been. Ron Paul is quite convinced things will turn sour soon. Only time will tell if he’s right.

Header image courtesy of Shutterstock

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For quite some time now, people have been wondering why is pushing up Bitcoin network fees. For some reason, an unknown entity is trying to up the average transaction cost. It now appears Coinbase is the guilty party. In fact, they are overpaying fees by as much as 10,000%. This is not good news for the company, as they are literally bleeding money.

Paying a too high transaction fee for Bitcoin is never a good idea. In some cases, a  higher transaction fee is more than warranted. This is especially true during times of network congestion. However, there is no backlog right now, meaning there is no reason for a higher fee. Interestingly enough, Coinbase is bleeding money by overpaying network fees right now. More specifically, Coinbase users are bearing these costs, as the company no longer pays for withdrawal fees.

Coinbase Users Pay too Much for Withdrawals

Not too long ago, Coinbase changes their terms of service. More specifically, they now let customers pay for the money they withdraw. However, charging these customers exuberant Bitcoin fees is not the end goal here. For some reason, users are paying 100 times the normal network fee right now. That means Coinbase customers are losing money every time they move money off the platform.

It is unclear if this is a move to ensure people keep their funds in the exchange, though. We do know Coinbase users can’t change the transaction fee themselves. This means it is up to Coinbase to address these problems sooner rather than later. Jameson Lopp noticed someone started broadcasting transfers with too high fees. There is absolutely no reason to charge such high fees. All of the money is being paid out to minors for no good reason.

The bigger question is whether or not Coinbase is even aware of the problem. If they aren’t, they are in for a world of complaints from users. Situations like these also highlight the problem with centralized exchanges. Customers feel they are being treated fairly, but that is not always the case. Right now, these higher fees are equal to as much as 15 Bitcoin per hour right now. Not an ideal situation by any means.

Header image courtesy of Shutterstock

The growing Bitcoin adoption and the popular cryptocurrency’s performance this year has got governments rallying to introduce cryptocurrency regulations in their respective jurisdictions. These attempts have received a mixed reaction from the community as a poorly drafted law can spell the doom of Bitcoin and businesses that are using the cryptocurrency to develop innovative solutions. Similar concerns are now being voiced by the Bitcoin Foundation as the Uniform Law Commission sets to meet and decide upon cryptocurrency legislation in the United States.

The Uniform Law Commission is presently in the middle of framing cryptocurrency laws that can be implemented by a majority of US states. As they proceed, the major Bitcoin advocacy organization, Bitcoin Foundation seems to have found few issues with the draft, which if passed might end up stifling innovation and putting the cryptocurrency companies and users into several hardships. In order to prevent such a catastrophe, somewhat along the lines of what happened when BitLicense was introduced in New York State, the executive director of the foundation has appealed to the policy makers.

The appeal, in the form of a letter, addressed to the National Conference of Commissioners on Uniform State Laws, has Llew Claasen and other prominent personalities from the industry asking the members of the commission to refrain from adopting the “Uniform Regulation of Virtual Currency Businesses Act,” in its current form. The letter states,

“We understand that you may be asked, during your meeting in San Diego, to approve a proposed uniform statute “Uniform Regulation of Virtual Currency Businesses Act.” The Bitcoin Foundation urges you not to adopt this proposed model act. Approving the act in its current form will discourage inclusive financial innovation arising out of blockchain technology and cryptocurrencies like Bitcoin.”

Claasen goes on argue about the validity of the draft legislation in his blog post, where he states studies that have found virtual currencies to be more helpful in combating terrorism and crime instead of facilitating it. Also, he points out various inconsistencies with the draft law, particularly when it considers virtual currency businesses as equivalent to money transmission businesses while failing to recognize Bitcoin and other cryptocurrencies as money, and so on.

It is quite evident that the regulators are hurrying to hold cryptocurrency users and businesses accountable to the laws of the land, and also get them to cough up their share of tax money. But, a wrong move, made in a hurry might cost the country its position on the future global economy.

Ref: Crowdfund Insider | Bitcoin Foundation Blog

Bitcoin is dead, a prediction we have heard more than hundred times already. Well, who is keeping count? (Some platforms are actually keeping count of these grim forecasts). But time and time again, the cryptocurrency has received support from unexpected quarters, thanks to its rising importance in the global economic system. Recently, the cryptocurrency received an indirect sign of approval from John Mack, the former CEO of Morgan Stanley after he, along with a group of investors put their money into a cryptocurrency trading “counterparty” platform Omega One.

The investment comes at the time when there is a cloud of uncertainty looming over the future of Bitcoin. The upcoming scalability changes to the cryptocurrency network have got the community worried about whether Bitcoin will continue to be the store of value it used to be or not. However, notwithstanding these apprehensions, members of Venture One — an investment fund have followed John Mack to support Omega One.

Omega One is an agency broker that will act as a counterparty, enabling mainstream financial institutions to offer Bitcoin and other cryptocurrency asset management and trading services to their clients while avoiding the risks that come with it. Whenever HNIs invest a significant amount of funds into the cryptocurrencies, the Omega One platform will ensure that these trades don’t affect any single cryptocurrency exchange by distributing them across multiple platforms.

In a press statement, the CEO of Omega One Alex Gordon-Bradner said,

“We’re the bridge between the traditional capital markets and the crypto markets. We will provide everything from balance sheet intermediation to a trusted counter party.”

In a statement to the media, Mack has mentioned that his interest in cryptocurrencies goes beyond just observation has he is said to have invested in few cryptocurrencies as well. He believes that Omega One signifies an important next step in the development of a new economy.

With more people interested in cryptocurrency investments, the creation of Omega One comes at the right time. It will not only allow people to get their investment portfolios right, but it will also enable banks to facilitate it.

Ref: Business Insider | Image: NewsBTC

Agrello, a blockchain startup developing “smart agreements”, announced a token sale for July 16 to fund its “Self-Aware Contracts”. Based on blockchain technology, Agrello’s mission is to allow those  “without coding or legal skills to form legally-binding agreements on the blockchain”.

The Estonia-based startup developed a graphical interface enabling individuals to assemble their own contracts based on the system’s offered templates. The Agrello system turns these contracts into code and AI agents then manage and execute the contracts for the users.

Agrello’s smart agreement solution entails a smart contract management system wherein both sides of an agreement are represented by autonomous intelligent agents, which execute the party’s obligation and notify them of any tasks that need humans.

Agrello describes in its paper how it used intelligent agents based on belief-desire-intention software models (BDIs), which are used to program intelligent agents by implementing beliefs, desires and intentions in an agent. Agrello’s intelligent agents operate “off-chain”, so they are not hardcoded onto any blockchain. Instead, they run client side. The Ethereum blockchain makes AI agent’s operations immutable, and also facilitate payments and fulfill obligations on the basis of blockchain smart contracts.

The off-chain AI management system, paired with smart contracts, enable the creation of formal and complex agreements that enable users to update contracts terms in the case that contract terms change or are renegotiated. Agrello’s AI system enables the smart contracts that empower users.

“Agrello Smart agreements are assembled on the basis of a declarative high-level contract language, which we have developed for this purpose,” Professor Alex Norta, Agrello’s Chief Scientist stated. “Agrello’s contracting language treats the parties obligations and rights as its basic building blocks, which allows us to digitize contracts and treat them as executable programs.”  

Agrello’s smart agreement solution, designed to be compatible with standard legal procedures so that they are legally binding, will interface with multiple blockchain-coding platforms, including Metaverse, AntShares, Lisk, Qtum, RSK, Ethereum Classic and NEM.

Agrello’s trying to solve the problem of inefficiency in the world of contracts, which the company calls “restrictively slow.”  The startup calls its self-aware contracts legally enforceable, machine readable and supportable by blockchain technology.

“The traditional understanding of a conventional contract (CC) is an exchange of commitments by identied parties that are enforceable by law,” states the white paper. “An important prerequisite for a contract that most commonly exists as a written document as evidence, is that the parties involved voluntarily engage to establish a consensus.In most business cases, CCs are documents that identify the contracting parties uniquely and state explicitly the commitments of the latter. When those commitments are performed, their status changes over time.”

The white paper adds: “Another problem with the traditional form of setting up and managing CCs is that they are often underspecied and the ability to manually track their status is restricted.”

Agrello’s “cross-organizational blockchain-agnostic framework for peer-to-peer collaboration” is made possible due to the “emergence of cyber-physical systems,” such as the Internet of Things.

“Novel blockchain technology enabled smart contracts, combined with intelligent multi-agent systems and internet-of-things devices, yield so-called self-aware contracts that allow for a high degree of automation for such peer-to-peer collaborations,” claims Agrello of its framework for legally binding blockchain-based AI contracts.

The token sale follows on the heels of many startups taking a similar route. Hundreds of millions has been raised by a wide array of technology companies working in the blockchain space. Well-known blockchain investors like Erik Voorhees and South African entrepreneur Vinny Lingham have even launched their own token sales.

The full extent of the potential of cryptocurrencies remains yet to be completely tapped. Even the industry insiders are still to comprehend their full power.

One way to think about cryptocurrencies is to ask what new institutional capacities they create. The reason being that it is the institutions that determine who wins wars, what countries get to be free, and the pace of economic growth.

The best way to do that is to think about feedback loops. Raise .99 to a large number, you get zero. Raise 1.01 to a large number, you approach infinity. If each day an institution’s efforts multiply its last day’s effects by 99%, it fails. If that number becomes 101%, it scales, it becomes a Google or Apple — until something pushes that number back below 1.

The genius of cryptocurrencies is that a liquid asset can be designed along with a new institution to create a currency value — institutional size feedback loop.

This can be called as the Feedback Loop theory of cryptocurrencies. The most exciting consequence of the theory can be said to be value creation for investors from non-profit-seeking behavior.

The cryptocurrency brings the power of markets, and investors’ self-interest to the table; the non-profit brings the moral relevance.

RootProject, whose pre-ICO is currently under way, demonstrates this Currency-Nonprofit Feedback Loop.

The platform lets people and institutions raise money for projects that help the neighborhood or local businesses. Instead of a typical crowdfunding fee, 10% of funds raised get put into purchasing their currency, ROOTS, on the open market, driving price up. RootProject calls this the currency-as-fee model.

The platform is aware that non-profit is based on a new set of programs in American cities. It can be deduced from the recent data about the day-work programs being very effective at lifting people out of extreme poverty.

Importantly, it also lets most donations be tax deductible, which in the United States is effectively a 30–40% government subsidy.

On the completion of the project, the workers and a manager get paid out of the other 90% of funds. Workers get paid in USD, but then on top of that get 50% of that deposited in a medium-term pension fund that holds (only) their cryptocurrency. Like the 10% fee, the currency for the pension fund is purchased on the open market — further driving up the prices.

As the price of ROOTS token goes up, the nonprofit can expand, driving up the demand for the cryptocurrency.

Organic demand helps people in the need of jobs and exposure to things like shelters and medical care to get them. Though the most exciting aspect is that the demand doesn’t just go away in a one-off event. It enters, by design, a feedback loop where it grows and grows, multiplying off itself.

RootsProject’s Pre-ICO runs this week. The platform has already raised $50.6k, which means it is already at 50% of its $100k soft cap. The hard cap of the pre-ICO has been decided at $300k. Main ICO will start on 7th of August, and current ROOTS are sold with a 50% bonus.