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Parallels between two disruptive technologies: Internet & Blockchain – Part II

Parallels between two disruptive technologies: Internet & Blockchain – Part II
In part two of this blog, we will explore the parallels between the technologies in capitals and start-ups, in the decentralization of the blockchain as the main aspect that will revolutionize the Internet and in education. To read up on the first blog post, please follow this link.
Initial Start-Ups and Capitals
For more than 20 years the Internet was narrowed down to the usage of a few tech-savvy that knew how to navigate it. It’s only in 1993-94 that it became mainstream when Marc Andreessen created the Mosaic) browser while studying at the National Center for Supercomputing Applications (NCSA) and brought the Internet to the general public allowing them to navigate the web comfortably with a positive user-friendly experience.
For the first time, users could establish an active presence over the internet by loading their own documents, photos, sounds, video clips, and hypertext “links” to other documents. Navigation of the internet started to have meaning. Later on, Marc Andreessen was on the team that created Netscape, the Internet browser that reached 38 million users in eighteen months and IPO’d in record time, breaking records as far as company growth while becoming the first dot-com company. Silicon Valley and Wall Street jumped on the rapid success of Netscape and started the “Internet Big bang” with a new wave of tech startups trying to follow a similar path.
In the blockchain world, Bitcoin (2008) was the first application of the technology, the most disruptive, and its first wave of users, just like in the first internet era, was also more on the technical savvy side. Despite the significant injection of capital into the blockchain space, we have not had yet a killer app or project that could compare to Mosaic or Netscape.
If blockchain is a synonym of decentralization, so far the unicorns in the space are centralized companies with traditional business models like Coinbase, Binance which are centralized exchanges, and Bitmain, a privately owned company headquartered in Beijing, China that specializes in the design of application-specific integrated circuit chips for bitcoin mining. This is why we still believe to be in the early stages of blockchain technological cycle similar to 1994 during the Internet Revolution, expecting more market cycles to happen in the upcoming years.
A look at the market capitalization of the two technologies highlights a notable difference: according to CBInsights, in the 1990s venture capitals injected in Internet startups were around $35.6 billion while so far we’ve seen no more than $6 billion flowing into the blockchain space. The good news is that the trend is moving up and the potential is to reach $10 trillion between Bitcoin and other cryptocurrencies combined.
https://preview.redd.it/3oonw2fopka41.jpg?width=5472&format=pjpg&auto=webp&s=167f366b4ee2eaf47fdf89e418ee498eb8e8a958
Some Venture Capitals, like Node Capital, smelled early the potential of the tech and made their first investments in the industry in 2011. In 2018, there were more than 200 venture investments in blockchain and cryptocurrency companies, more than in all of 2011-2015 combined.
Digital Currency Group is one of the major investors in the space and has been extremely influential in blockchain since 2013. They started off with an investment of less than a million US dollars, in crypto payment processor BitPay. Since then they have invested close to $100 million in dozens of blockchain and cryptocurrency startups including Coinbase and Ripple.
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List of Scott's most influential twitter followers

It seems like Scott/SSC has gotten much more mainstream recognition over the past year, so I was curious to know who the most influential SSC readers are now. Using twitter follower data for this isn't perfect (follower count is not a perfect proxy for influence, not all SSC readers follow the twitter account, etc.), but it's the best I could think of and I figured it would be a fun exercise regardless.
As an aside, a few interesting stats I learned about Scott's twitter followers (scraped on 12/30/17):
  1. Scott is followed by exactly two members of Congress: Justin Amash (Republican) and Jim Himes (Democrat)
  2. Scott has 351 bluecheck followers
  3. Of the top 100 most-followed followers, the gender breakdown (by my count) is 82 men vs 8 women (along with 10 organization or anonymous accounts). Among the top 50, it's 43 men and 1 woman (Liv Boeree)
  4. 385 followers (2% of the total) have bios including either "bitcoin", "ethereum", "crypto" or "blockchain"
  5. There are 67 followers whose bios include either "@Google", "@ Google", "at Google", or "Googler"
Note: When constructing the top 100 below, I excluded accounts that had extremely large Following counts, since I wanted the list to just consist of (likely) actual SSC readers. My exact rule was to exclude any account that follows >20K, include any that follows <10K, and include accounts in the 10K-20K range iff their following/follower ratio was less than 10% (this last condition was mostly just because I wanted to keep @pmarca on the list).
Anyway, below is the top 100. I also constructed lists for Eliezer, Robin Hanson, and gwern, and I can post those in the comments if anyone's interested.
Ranking Twitter Name Full Name Bio Bluecheck Follower Count Following Count
1 @NateSilver538 Nate Silver Editor-in-Chief, @FiveThirtyEight. Author, The Signal and the Noise (http://amzn.to/QdyFYV). Sports/politics/food geek. 1 2860782 1051
2 @ezraklein Ezra Klein Founder and editor-at-large, http://Vox.com. Come work with us! http://bit.ly/1ToAmQ8 1 2277052 1112
3 @timoreilly Tim O'Reilly Founder and CEO, O'Reilly Media. Watching the alpha geeks, sharing their stories, helping the future unfold. 1 1988716 1829
4 @paulg Paul Graham 1 1066366 322
5 @SamHarrisOrg Sam Harris Author of The End of Faith, The Moral Landscape, Waking Up, and other bestselling books published in over 20 languages. Host of the Waking Up… 1 974855 229
6 @techreview MIT Tech Review MIT Technology Review equips its audiences with the intelligence to understand a world shaped by technology. 1 794095 3367
7 @pmarca Marc Andreessen 1 672740 16319
8 @cdixon Chris Dixon programming, philosophy, history, internet, startups, investing 1 572260 3320
9 @RealTimeWWII WW2 Tweets from 1939 I livetweet the 2nd World War, as it happened on this day in 1939 & for 6 years to come (2nd time around). Created by Alwyn Collinson,… 0 516803 459
10 @VitalikButerin Vitalik Buterin See https://about.me/vitalik_buterin 1 458582 154
11 @Tribeca Tribeca Great stories from the greatest storytellers. 1 409581 18678
12 @bhorowitz Ben Horowitz Author of Ben's Blog (http://www.bhorowitz.com) and HarperBusiness book, THE HARD THING ABOUT HARD THINGS http://www.amazon.com/Hard-Thing-About-Things-Building-ebook/dp/B00DQ845EA/ref=sr_1_1… 1 405820 255
13 @mattyglesias Matthew Yglesias Fake news. Bad takes. Dad jokes. We’re actually on the Bad Place. 1 372341 754
14 @naval Naval Present. 0 339469 478
15 @SwiftOnSecurity SwiftOnSecurity I make stupid jokes, talk systems security, https://DecentSecurity.com + http://GotPhish.com, write Scifi, sysadmin, & use Oxford commas. Sprezzatura. 0 211672 7530
16 @alexismadrigal Alexis C. Madrigal staff writer @TheAtlantic in the real world, these just people with ideas Mexican, Oakland, Earthseed 1 203540 5682
17 @ScottAdamsSays Scott Adams Win Bigly: http://amzn.to/2myAGon 1 202042 788
18 @Khanoisseur Adam Khan Majordomo; Stuff at @Google @Twitter @SpaceX @Apple Exposing Trump https://www.gofundme.com/VolunteerJournalism… *Turn notifications on for breaking Trump… 0 183964 9359
19 @felixsalmon Felix Salmon Host and editor, Cause & Effect 1 180414 1832
20 @fmanjoo Farhad Manjoo (feat. Drake) NYT. DMs are open. signal: 4156836738. [email protected]. Instagram/Snapchat: fmanjoo 1 167592 4095
21 @VsauceTwo Vsauce2 Being Human. personal twitter: @kevleeb 0 151795 279
22 @russian_market Russian Market Swiss Financial Blogger. In Bitcoin we trust. 1 148866 939
23 @AaronDayAtlas Aaron Day CEO @Salucorp, Chairman @stark_360. #entrepreneur #btc #blockchain #healthcare #paleo #tech #dad Former candidate for #USSenate #ENTJ 0 133389 2075
24 @justinamash Justin Amash I defend #liberty and explain every vote at http://facebook.com/justinamash • 'Laws must be general, equal, and certain.' —F.A. Hayek 1 131997 5376
25 @Liv_Boeree Liv Boeree Poker player & Team Pokerstars Pro. Physics creature. Aspiring rationalist. Mountain goat. [email protected] 1 125366 451
26 @MaxCRoser Max Roser Researcher @UniOfOxford – Follow me for data visualizations of long-term trends of living standards – mostly from my web publication: http://www.OurWorldinData.org 1 114045 583
27 @Jonathan_Blow Jonathan Blow Game designer of Braid and The Witness. Partner in IndieFund. 0 112827 68
28 @andrewchen Andrew Chen Growth: @uber. Writer: http://andrewchen.co. Plus one: @briannekimmel 0 111077 6288
29 @charlescwcooke Charles C. W. Cooke Editor of National Review Online. Classical liberal. Immigrant. Jack’s Dad. Wino. ‘The American is the Englishman left to himself.’ 1 110071 872
30 @AlanEyre1 Alan Eyre Diplomat, U.S. State Dept, Energy Resources Bureau. Middle East/Asia Energy; ایران. RT doesn't =endorsement; 'likes' don't necessarily=likes, often… 1 106947 3514
31 @karpathy Andrej Karpathy Director of AI at Tesla. Previously a Research Scientist at OpenAI, and CS PhD student at Stanford. I like to train Deep Neural Nets on large datasets. 1 106643 445
32 @JamesADamore James Damore Nerd centrist interested in open discussions and improving the world by fixing perverse incentive structures. Author of the pro-diversity … 1 94580 210
33 @SherwoodStrauss Ethan Strauss Podcasting 1 88258 1204
34 @james_clear James Clear Author, weightlifter and travel photographer in 25+ countries. Over 400,000 people subscribe to my weekly newsletter on how to build better habits. 1 87968 218
35 @nk from the future Wealth and personal achievement expert 0 81712 591
36 @benthompson Ben Thompson AuthoFounder of @stratechery. Host of @exponentfm. @notechben for sports. @monkbent on other networks. Home on the Internet. 1 78746 1267
37 @matthewherper Matthew Herper Forbes reporter covering science and medicine 1 78698 2111
38 @JeremyCMorgan Jeremy Morgan Tech Blogger, Hacker, Pluralsight Author, and Volunteer Firefighter. Once held the world record for being the youngest person alive 0 78601 7365
39 @balajis Balaji S. Srinivasan CEO (http://Earn.com) and Board Partner (@a16z). I hear this Bitcoin thing might be kind of a big deal. You can reach me at http://earn.com/balajis. 1 70707 2936
40 @patrickc Patrick Collison Fallibilist, optimist. Stripe CEO. 1 68709 1875
41 @matthew_d_green Matthew Green I teach cryptography at Johns Hopkins. 0 68434 594
42 @delong Brad DeLong 🖖🏻 I'm trying to be smart, knowledgable, funny, and well-wishing. You try too--at least 2 of 4. Low volume: 1+ per day... 0 67968 1578
43 @flantz Frank Lantz game designer 0 66090 278
44 @MYSTIQUEWEST MYSTIQUE NYC The Mystique Gentlemen’s Strip Club offers the best in adult entertainment in New York City. With unique stage design, full bars and the most beautiful dancers. 0 64881 332
45 @AceofSpadesHQ TheOne&OnlyExpert I'm not #TheExpert, or the expert parodying #TheExpert. I'm the real expert. 0 64872 1464
46 @btaylor Bret Taylor President, Chief Product Officer of @Salesforce. Previously CEO Quip, CTO Facebook, CEO FriendFeed, co-creator Google Maps. Stanford fan, @Twitter… 1 64829 687
47 @wycats Yehuda Katz Tilde Co-Founder, OSS enthusiast and world traveler. 1 63933 849
48 @jahimes Jim Himes Connecticut Congressman. Reader. Runner. Swimmer. And I make maple syrup. 1 62820 411
49 @abnormalreturns Tadas Viskanta Financial Educator, Author and Editor of Abnormal Returns. 0 61693 413
50 @BrendanNyhan Brendan Nyhan @Dartmouth political science professor, @UpshotNYT contributor, and @BrightLineWatch co-organizer. Before: @CJR / Spinsanity / All the President'… 1 61508 6149
51 @matt_levine Matt Levine da, wo Menschen arbeiten, wird es immer Fehler geben 1 61314 990
52 @BretWeinstein Bret Weinstein Professor in Exile If we don't harness evolution, it will harness us. 1 61049 536
53 @gaberivera Gabe Rivera Blame me for @Techmeme and @mediagazer. Nicer than my tweets. Often sarcastic. DMs are open. 2+2â‰5. Retweets are endorphins. 1 59927 5599
54 @SarahTheHaider Sarah Haider Promotes free-speech, human rights, liberalism, atheism. Director of Outreach,Ex-Muslims of North America. Pakistani by birth, American by… 0 59574 292
55 @TheInfinite_T ✨Infinite_T✨ NSFW Send GoogleWallet to [email protected] pls send all your tokens to http://mfc.im/infinite_t/t Wishlist: http://a.co/8taURYD 0 59061 645
56 @cblatts Chris Blattman Political economist studying conflict, crime, and poverty, and @UChicago Professor @HarrisPolicy and @PearsonInst. I blog at … 0 57670 2445
57 @jamestaranto James Taranto Editorial Features Editor, in charge of @WSJ op-ed pages. Best of the Web columnist 2000-17. 1 56733 174
58 @nitashatiku Nitasha Tiku Senior writer @Wired covering Silicon Valley [email protected], DM for Signal 1 56133 4327
59 @DKThomp Derek Thompson Writer at @TheAtlantic. Author of HIT MAKERS. Talker on NPR's @hereandnow. Economics of work and play. derek[at]theatlantic[dot]com 1 53387 1116
60 @aliamjadrizvi Ali A. Rizvi Pakistani-Canadian author of The Atheist Muslim (SMP/Macmillan). Amazon order link below. Co-host of @SecularJihadist podcast. Contact:… 1 52806 784
61 @RameshPonnuru Ramesh Ponnuru @NRO, @BV, @AEI, @CBS. Husband of @aprilponnuru. 1 51721 613
62 @JYuter Rabbi Josh Yuter "For my thoughts are not your thoughts, neither are your ways my ways" Is. 55:8. Jewish stuff + bad jokes. All opinions subject to change. 1 50731 2599
63 @meganphelps Megan Phelps-Roper “You're just a human being, my dear, sweet child.” Speaking requests: [email protected] Contact: [email protected] 1 49678 792
64 @albertwenger Albert Wenger VC at http://usv.com 1 49107 1794
65 @paulbloomatyale Paul Bloom Psychologist who studies and writes about human nature—including morality, pleasure, and religion 1 48579 391
66 @conor64 Conor Friedersdorf Staff writer at The Atlantic, founding editor of The Best of Journalism–subscribe here: https://www.ponyexpress.io/subscribe/thebestofjournalism… 1 46977 1405
67 @EricRWeinstein Eric Weinstein Managing director @ Thiel Capital. Some assembly required. Spelling not included. May contain math. Tweets are my own. 1 46263 850
68 @adamdangelo Adam D'Angelo CEO of Quora 1 45545 526
69 @robbystarbuck Robby Starbuck Director + Producer + Founder at RSM Creative - Husband to @imatriarch - Dad to 3 Kids + 2 Dogs - Futurist - Cuban American - Fan of Civilized Debate 1 45308 1842
70 @clairlemon Claire Lehmann Principle before affiliation. Founder, editor http://quillette.com. Contact me at http://earn.com/clairelehmann 1 45305 2000
71 @tombennett71 Tom Bennett Director of researchED- https://researched.org.uk Chair of @educationgovuk Behaviour group. Free training available here http://www.tombennetttraining.co.uk 1 43859 3698
72 @m2jr Mike Maples The woods are lovely, dark and deep, But I have promises to keep,And miles to go before I sleep,And miles to go before I sleep.-Robert Frost 0 43629 3915
73 @DavidDidau David Didau Education writer and speaker. Ginger. #PsychBook OUT NOW! https://goo.gl/xyDIjO; #WrongBook still available: http://amzn.to/1Opyach 0 43531 1092
74 @ByronTau Byron Tau congress et al. for @wsj. interested in law, lobbying, nat'l security, investigations, gov't ethics and . contact me securely: http://bit.ly/2s2HTfG 1 43026 2699
75 @MichaelKitces MichaelKitces One nerd’s perspective on the financial planning world… CFP, #LifelongLearner, Entrepreneur-In-Denial, Advisor #FinTech, & publisher of the Nerd’s Eye View blog 1 42304 459
76 @rahulkapil Rahul Kapil Come to observe. Stay to play. 0 41987 975
77 @michaelbatnick Irrelevant Investor Long-distance reader 0 41620 1076
78 @yegg Gabriel Weinberg CEO & Founder, @DuckDuckGo. Co-author, Traction. I want to publish zines and rage against machines. DM for Signal. 1 39470 151
79 @Jesse_Livermore Jesse Livermore Trader, Speculator, Bucketeer 0 39190 4459
80 @iconominet ICONOMI Digital Assets Management Platform for the Decentralised Economy 0 39030 1942
81 @IKucukparlak İlker Küçükparlak Psikiyatrist http://ihtisastramvayi.com 0 38018 757
82 @vdare Virginia Dare The Twitter account for the editors of VDARE. Featured at the 2016 Republican National Convention 0 37723 4429
83 @juliagalef Julia Galef SF-based writer & speaker focused on reasoning, judgment, and the future of humanity. Host of the Rationally Speaking podcast (@rspodcast) 1 37530 340
84 @nicknotned Nick Denton Internet publisher 1 36708 2524
85 @JeremyMcLellan Jeremy McLellan Standup Comedian, Papist-in-training, biryani extremist, alleged member of the Muslim Cousinhood, US ambassador to the Pindi Boyz, spy pigeon trainer 1 36253 1538
86 @collision John Collison Co-founder of @stripe. 0 35995 1290
87 @narcissawright ♕ Narcissa fledgling seer 1 35375 1266
88 @panzer Matthew Panzarino Editor-in-Chief, TechCrunch. Telecom stories killed: 0. PGP Key https://keybase.io/panzer 1 35162 2902
89 @EconTalker Russell Roberts How Adam Smith Can Change Your Life (http://amzn.to/1o72lYh), EconTalk host, econ novelist, co-creator of Keynes/Hayek rap videos, http://www.wonderfulloaf.org/ 0 34611 669
90 @nktpnd Ankit Panda Senior Editor @Diplomat_APAC in NYC. Thinking/writing/speaking on global security, politics, and economics. Via @WilsonSchool. Views mine & RTâ‰â€¦ 1 34041 995
91 @Official_Quame Kwame A. A Opoku Futurist• Global Business Speaker, Founder @fobaglobal, @wefestafrica, @ideafactorylive • CEO Mary&Mary LLC • Entrepreneur • Tedx Speaker •Influencer 0 33924 3526
92 @dylanmatt Dylan Matthews I know, I know, I don't like me either. Retweets are proposals of marriage. 1 33262 5579
93 @Jonnymagic00 Jon Finkel I'm a magic player who also manages a hedge fund. http://en.wikipedia.org/wiki/Jon_Finkel 0 33234 284
94 @Heminator Mark Hemingway "After all these years of professional experience, why can’t I write good?" Senior Writer @WeeklyStandard. Husband of @MZHemingway. 1 33034 4877
95 @sweenzor Onson Sweemey 0 32044 5288
96 @PhilosophersEye Philosopher's Eye Philosophy updates, pop culture, fun stuff, and links to resources from the Wiley Blackwell Philosophy Team. 0 31931 6503
97 @VladZamfir Vlad Zamfir Absurdist, troll. 0 31764 418
98 @m_clem Michael Clemens Fellow @[email protected]_bonn. My views only. Assoc. Editor @JPopEcon & @WorldDevJournal. Author of @WallsofNations, coming in 2018.… 1 31746 3650
99 @RudyHavenstein Rudolf E. Havenstein ReichsBank®President 1908-1923; Central Bank consultant. 'My way of joking is to tell the truth' - GB Shaw. Tweets solely for my own amusemen… 0 31115 1293
100 @tikhon Tikhon Bernstam CEO & Founder of Parse (YC S'11, acquired by Facebook for $85M in 2013). Founder @Scribd (YC S'06). @ycombinator alum. 0 31030 5184
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"Libertarians and Governments will swap what they think about bitcoin, in future!"

This is the thread on bitcointalk.org about a comment from Marc Andreessen,
"Anybody who thinks Bitcoin makes it easier to do transactions that aren't tracked by the government is 100 percent wrong. The transactions all happen in public view. Anybody can look at the entire ledger and verify who owns what. So if you're a law enforcement agency or an intelligence agency, this is a much easier way to track the flow of money than cash. So I think actually law enforcement and intelligence agencies are going to wind up being pro-Bitcoin, and libertarians are going to wind up being anti-Bitcoin."
On Twitter I asked him, "If anonymity blacklist-proof features are built into the protocol or most wallets, will #libertarians go back to liking #Bitcoin?"
His response, "Maybe, but a lot of the same data mining techniques that work on email and IP addresses also work on the blockchain.
submitted by Ragnarly to Bitcoin [link] [comments]

How Come VCs are Missing the Blockchain Epoch?

But there are other possible reasons for the lack of Blockchain support by VCs. A major force behind VC objection to blockchain technology is called ICO, or Initial Coin Offering. ICOs are a blockchain, token-based fundraising alternative that is quickly becoming popular, making VCs and their traditional, slow, and sometimes heavily taxing process completely redundant. ICOs not only simplify the investment process, but also provide ways for startups to share equity and other benefits with their investors, their users, suppliers, and the entire community around them. In that light, ICOs are filling the financing gap that VCs and other investors are leaving behind.
So far, 2017 is the breakthrough year for ICOs as $1.73 billion has been raised by startups using token sales, and ICO fundraising is forecasted to reach $1.8 billion by October. Notable ICOs include those of Tezos ($208M), EOS.IO ($200M), Bancor ($153M), and Status ($95M), as well as about 60 token sales in total. Have the investors made a profit? It depends, but the total market cap for all Altcoins (Cryptocurrency excluding Bitcoin) has risen from $2.2B on January 1st to roughly $71B yesterday. This is an increase of over 3200%, so yes, some investors are definitely happy.
For unbiased ICO reviews go to Coin.best. For unbiased research reports on startup companies go to Zirra
But Blockchain technology extends way beyond ICOs and even digital coins. Leaving currency aside, blockchain turned out to be a viable system of value sharing with no need for a trusted third party, such as a bank, or any centralized system. Blockchain can be used as a trusted digital ledger for an infinite selection of applications: it can be used as the infrastructure of a digital wallet, a voting system, or a platform that authenticates identity, ownership or certification, or certifies the traces of a supply chain. Microsoft and Intel have developed their blockchain frameworks for enterprises and financial institutions such as Citigroup and Bank of America has been investing in blockchain startups.
Yet VCs are not buying. Is it moral bias? Fear from the impact of ICOs? Seeing something the others don’t or simply “staying behind the curve”? It’s difficult to tell. Fact is, VCs are not aligning behind blockchain, leaving a vacuum that quickly fills up while posting possibly the biggest gamble for the future of their own ventures.
How alienated are VCs from the blockchain industry? According to a recent study by CB Insights, traditional equity-based investment (non-ICO) in blockchain companies hit in the second quarter of 2017 their lowest point since 2013, to 16 financing rounds. However, these 16 rounds totaled in $232 million, which was actually as high as the entire VC investment in self driving cars in the entire first half of the year.
But VCs were just a small part of that picture. Almost half ($107 million) of the VC-based quarterly funding for blockchain companies went to the banking consortium R3, which was actually funded by the largest financial institutions such as Bank of America, Citigroup, Barclays, Credit Suisse, HSBC and tech giants such as Intel. Another $40 million went to the Bitcoin-based digital wallet Blockchain, from cryptocurrency-oriented investors such as Digital Currency Group, and mainstream VCs such as Lightspeed and Mosaic.
As the graph below shows, top VCs are hardly in the blockchain game, hesitant to invest in more than one or two companies per quarter altogether around blockchain technology. Only a portion invested in more than one company in the space in total. Notable VCs Lightspeed, Union Square, and Andreessen Horowitz each hold an average of five portfolio companies in the blockchain and bitcoin space.
So, who are the most dedicated investors in bitcoin and blockchain technology? The leaders are cryptocurrency-dedicated funds and hedge funds such as Digital Currency Group, Blockchain Capital, Pantera, Fenbushi Capital and Future Perfect. They are joined by a small group of innovative VCs ,managed by partners who are keen to cryptocurrencies such as Marc Andreessen (Andreessen Horowitz), Fred Wilson (Union Square), and Tim Draper (Draper Associates).
Blockchain is not waiting for VCs to enter the game. It is exploding. Here are 3 major signals for this:
1.ICOs are exploding: In the meantime, it seems like everyone but VCs have joined the blockchain party. The ICOs were the ones who took the bigger bulk of business press attention in the second quarter, raising about $750 million for 60 companies. However, VCs and other institutional investors were not among the investors, as long as ICOs are not regulated and are outside the charter of investment given to general partners by their limited partners.
2.Cryptocurrency, not just Bitcoin, is experiencing great momentum. The graph below tells the story. Bitcoin is barely the whole picture. Other blockchain-based cryptocurrencies such as Ethereum and Ripple are on the rise. This graph shows the total market capitalization for the top seven cryptocurrencies excluding Bitcoin:
Here, Ethereum and Ripple can be seen gaining more and more market share of the entire cryptocurrency market:
3.Enterprises are pouring in: Technology corporations and financial institutions didn’t wait for the VCs to come and adopted their solutions for blockchain-based decentralized networks. Among tech giants, leaders Microsoft and Intel have been pushing blockchain agendas for internal use among their customers, which are mainly big companies. Earlier this week, Intel and Microsoft joined forces to launch Coco, a blockchain framework for business that processes about 1,600 transactions per second, 1000X more than comparable blockchain frameworks, such as Ethereum consortium. The new platform uses Ethereum-based smart contracts and enables confidentiality and security over the network with the aid of other distributed ledger systems. With Coco, fashion retailers, for example, might form a blockchain consortium to verify authentic designer merchandise, and track delivery, payments, and stock inventory.
Earlier in 2015, Microsoft announced a cloud-based blockchain developer environment for Azure, its cloud platform. Since then, the company has partnered with numerous blockchain technologies such as HyperLedger Fabric, R3 Corda, Quorum, Chain Core, and BlockApps. Competitor Amazon made a similar move, partnering with blockchain investment firm Digital Currency Group to offer an experimentation environment for startups and developers and partnering with a few blockchain companies on its AWS cloud platform. Google too is in the game, although not directly, investing through its VC in Ripple, the third largest cryptocurrency after Bitcoin and Ethereum, and in Blockchain, a bitcoin wallet startup.
At least two large-scale blockchain projects are permissioned by global enterprises: Open-source project Hyperledger, established by the Linux Foundation, is partnered with Intel, J.P Morgan, SAP, Fujitsu, Accenture, Daimler, and R3. Many of these organizations are also a part of the Ethereum Alliance, with the addition of enterprises such as Microsoft, BBVA, Credit Suisse and more.
So, to sum up, why are VCs so afraid of blockchain? There are quite a few reasons for this:
Fear of the impact ICOs have on traditional VC business: VCs have sustained many threats, from family offices taking up innovation, crowdfunding, and private equity firms digging into investing in startups directly. But never has the danger been so clear and imminent as with ICOs. In the long term, ICOs as a funding vehicle for start-ups could rival the traditional VC model. Blockchain tokens issued by start-ups during an ICO are a more liquid asset than any stock in a private company held by VCs. In the current situation, venture capital funds are an illiquid asset class, and they have to wait 7-10 years to realize their results and measure the IRR. But blockchain tokens are immediate and can disclose a company’s momentum in real time. Naturally, VCs would feel suspicious regarding a real-time investment model that challenges them. Also, ICO might bring to the table another new kind of investor, making deals less exclusive than what they used to be, on a scale that crowdfunding hasn’t done yet. On the other hand, this will demand disclosure by startups of performance indicators in the public domain. In that way, GPs and LPs will have a clearer idea of the performance of their portfolio. Inability to separate blockchain as an infrastructure for businesses from Bitcoin and ICOs: Blockchain is a technology concept that can turn over industries. It is a secured and distributed electronic ledger, which allows all transactions – such as payments, loans, and contracts- to be tracked in real time. Bitcoin is a coin that can be used for digital transactions, and ICOs are a method for raising money using the offering of digital coin based tokens. Most VCs will not even go so far as understanding these nuances, not to mention acting rationally upon each of these sectors. Inconvenient Regulation: Last month the SEC declared blockchain tokens to be considered securities, rather than assets. This decision puts the U.S in an inferior position relative to countries such as Switzerland and Singapore that treat blockchain tokens as assets. In order to attract investors and make the ICO process easier, U.S blockchain companies might list in those countries, or else use regulation S and D exemptions with the SEC in order to raise funds. That limits American funding to a mere 99 accredited investors, but does not limit global investments. Few exits and high rate of failure: As an immature discipline, Bitcoin and blockchain companies not only have a poor history of exits, but also a high rate of failure. According to research focused on cryptocurrency investments listed on the Coindesk database, 14% of a total number of VC-backed blockchain and Bitcoin companies went bankrupt or were sold in a fire sale. 85% of them were focused on Bitcoin. The numerous M&As in the business mainly concentrated around Bitcoin exchanges, and do not seem to be related to VCs. Blockchain was unscalable and not business oriented until recently: Putting aside cryptocurrency mining, which consumes a lot of energy, blockchain frameworks are not efficient enough for business applications. Ethereum, for example, processes around 16 transactions per second. However, Microsoft has recently showcased a blockchain framework that processes 1,600 transactions per second. Inability to create a monopoly: Investor Peter Thiel once said that “entrepreneurs starting a company should aim for monopoly and avoid competition.” However, the idea behind blockchain, a decentralized and public network, is intolerant to monopolies. Investing in ICO is still dangerous: In the current situation, direct investment in ICOs entails perils for VCs besides regulation. This includes a complicated process of cashing out (of a digital coin), currency’s high volatility, the high cost of capital in due diligence, and a reduced defensibility in the case of a large investment, according to a paper by Lerer Hippeau investment firm. How Can VCs Get Involved with Blockchain?
It might be a little too late for VCs to join the blockchain revolution. The original early stage cherry-picking model of VCs calls for identifying a revolutionary technology before anyone else, rather than jumping on an already moving wagon.
In addition to traditional equity investment in blockchain-oriented companies, VCs can act prudently, starting with new and creative formations. For instance, they can raise blockchain dedicated funds or hedge funds, re-contracting their LPs regarding the new rules of the game, such as raising a part of the fund through ICO or investing in liquidated securities such as cryptocurrency tokens.
Another option is to invest in the economy created by an ICO, or in its token adoption, rather than buying tokens in the ICO itself. This can be done by providing money, real estate, computing power, guidance or support to developers that are building on top of the blockchain protocol.
We at coin.best provide unbiased ICO reviews through an objective analysis and rating system, allowing blockchain investors to better understand the ICO market
submitted by Unbiased-ICO-Reviews to BitcoinMarkets [link] [comments]

[uncensored-r/Bitcoin] It's in times like these that education is necessary

The following post by jonat3 is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7r1eah
The original post's content was as follows:
Playlist with Andreas Antonopoulos as well as a few other classics. Is meant for people completely new to bitcoin.
Took quite awhile to assemble this playlist. Playlist is in chronological order. Watch in that sequence. Adjust playing speed in youtube to suit your needs.
Consider this page 1 in a series. May be updated from time to time.
Intro
Who is in control
How does it work
Security (and who's backing it)
By the love of God, watch first video entirely (click link in description once you understand). Don't be goxxed!
Some videos about bitcoin being a bubble
Some basic economics
Networks (!!!)
Why Bitcoin
Altcoins vs Bitcoin
Worried about high fees or the slow transactions? See the motivation behind the fee structure (pay special attention to the last video)
Important classics about the theory of money
Early classics (last video is gold :p)
Important backdrop for why bitcoin emerged starring Stefan Molyneux and Mike Maloney
Bitcoin's larger importance with Andreas Antonopoulos
Banking and Blockchain with Andreas Antonopoulos
Consumer protection
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Guest on the Bob Rivers Show in Seattle on Monday. Requesting help to represent Bitcoin well. (x-post to /r/Bitcoin)

Hi /Bitcoin and /BitcoinSeattle! I have been invited to the Bob Rivers show on KJR FM 95.7 in Seattle this coming Monday (the 27th) around 8:40 AM. In the spirit of community and open source I’d like to ask you folks how I can best represent Bitcoin on the show.
I called in during a very short 5 minute segment they did yesterday. You can listen to that here if you want. It starts at about 41 minutes and goes to 46 minutes or so (have to let it load first). I emailed them after that show and they invited me. As mentioned in that segment the main host Bob Rivers read Marc Andreessen’s New York Times piece.
I didn’t get clarification but imagine this’ll be a relatively short 10-20 minute segment and I won’t be doing most of the talking: likely just doing Q&A from the show’s hosts. Nonetheless I’d like to be prepared if I get a moment to expound on anything.
I’m working on a short 1 page topic brief that might be reviewed by the staff there due on Sunday. I’ll share that here, too. So: what should we talk about?
A few things I had in mind:
Other things, too! I have a big list of topics but I want to get the most “conversation-worthy”, gaming-changy, paragidm-shifty stuff out, kinda like what Marc Andreessen did in his article.
By request I’ll be “bringing” some Bitcoin to the show, too. I hope to demonstrate a transaction as well. Perhaps sending money to Sean’s Outpost (easy to demonstrate with a big ol’ QR code on the front page).
Thanks everyone! - Jesse
submitted by FliedenRailway to BitcoinSeattle [link] [comments]

A Non-technical Bitcoin Primer (Part 2)

This is a continuation of Part 1.
PSEUDONYMITY Unlike credit card transactions, in which you give your name, Bitcoin transactions are pseudonymous (a pseudonym being an identifier other than your real name). Instead of having your name on your account, you have a public key, which is just a sequence of letters and numbers, like the one below.
3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy
That's your pseudonym.
People who are concerned with privacy view this as an advantage, since it enables you to make payments without revealing your identity.
Critics worry that this system facilitates crime, and proponents counter that cash is much better for criminals. Why?
Your account may be represented by some random sequence, instead of your name, but all Bitcoin transactions that have ever occurred are available for scrutiny on a public ledger called the blockchain. This data opens up the possibility of investigative methods to which cash is not susceptible.
Also, those who are concerned about criminals may be missing the point. It's sort of like censors in the mid-twentieth century who hadn't conceived of the World Wide Web (preventing kids from being exposed to profanity these days is a bit more difficult, to say the least).
The thing they're missing is that Bitcoin is only one of many cryptocurrencies, and others (such as zerocoin) are being developed that will provide much greater privacy.
File sharing on the internet is another example of how those seeking to overregulate Bitcoin might be missing the point. Early on, we had Napster, which was shut down due to concerns over copyright infringement. The effect of this shutdown appears to have been essentially the opposite of the intended effect. Instead of stopping illegal file sharing, it accelerated the development of file-sharing technologies that were even more difficult to stop. Since demand still existed, Kazaa came to the fore, and now we have BitTorrent.
It's "hard to put the genie back in the bottle," as Ben Lawsky, New York's Superintendent of Financial Services, has pointed out. When it comes to reducing crime, overregulation of Bitcoin could lead to an increased resistance to law-enforcement efforts, as we saw with file-sharing, while at the same time taking away from its many benefits.
THREATS TO BITCOIN'S SUCCESS When evaluating Bitcoin's chances for success or trying to understand price fluctuations, it's important to keep several key issues in mind.
ADOPTION Both merchant and consumer adoption are important, and both have been growing.
On the merchant side, we now have large reputable companies accepting Bitcoin, such as Overstock.com, Expedia, and Dish Network. See, for example, the list of companies working with Coinbase.
On the consumer side, one way to track growth is to look at the number of bitcoin wallets (wallets are to Bitcoin what accounts are to the traditional banking system). This number has also been growing steadily.
The website http://www.bitcoinpulse.com/ is one place to track such things.
Another interesting thing to watch will be the MIT Bitcoin Giveaway, in which $100 in bitcoins will be given to every MIT undergraduate in the fall 2014 semester.
ROBUSTNESS OF THE TECHNOLOGY One possible threat is that some kind of bug or design flaw will cause the system to crash. The technology has been around since 2009, and Bitcoin has been resilient so far. For example, it survived a distributed denial of service attack early this year.
There are a number of design issues to consider, such as scalability, mining centralization, and so forth, but there are a lot of people working on these issues. In fact, Bitcoin is considered by some to be supported by the largest research and development community in the world. Something like 10,000 of the smartest people in the world are working on issues such as scalability and user-friendliness.
COMPETING TECHNOLOGIES There is a chance that another technology that is superior to Bitcoin will emerge to kill it. At present, however, Bitcoin is the clear leader among cryptocurrencies, and it becomes more difficult to overtake as time passes, due to the network effect.
Already, Bitcoin is supported by a massive amount of infrastructure, in the form of mining equipment, exchanges, startup companies backed by venture capitalists like Andreessen Horowitz, software applications, and so forth.
REGULATION There is some chance that governments could slow the growth of the Bitcoin economy, for example by issuing regulations that make it difficult for exchanges to operate.
Regulations in China led to a sharp decrease in the price for a time. Many governments have reacted more favorably. In the U.S., the regulatory outlook has been improving. We've seen increased clarity from the IRS and are expecting favorable regulations to come out of New York sometime this month, which may make it easier for exchanges to get established in New York. This could lead to more liquidity and would reduce the risk of shock from one exchange going down.
Moreover, the U.S. just sold about 18 million dollars' worth of seized bitcoins in an auction, which provides additional legitimacy to the currency.
A FINAL NOTE: SOCIAL AND POLITICAL RAMIFICATIONS For better or worse, one thing large-scale technologies seem to have in common is their unpredictability. Who would have predicted that a social media platform called Twitter with a cute little bird logo would end up facilitating political revolutions throughout the Arab world?
FURTHER RESOURCES This article by Marc Andreessen gives a good overview.
A nice way to get started is also to just check out bitcoin regularly. The users here range from noobs to developers and Bitcoin entrepreneurs. So, you’ll see more technical talk and in depth discussion than you see in typical media stories, and you can ask if you don’t understand.
You can also try the Bitcoin 101 Blackboard Series, which I hear is quite good.
For a quick video on the technical aspects of Bitcoin, you can try the video Bitcoin Under the Hood or the shorter, less technical version of this video.
For another explanation of the technical underpinnings, you might try the Khan Academy videos.
If you're looking to purchase your first bitcoin, then depending on where in the world you live, you might consider getting started with Coinbase. It's reputable and very easy to use. Many people will advise you not to store your coins on a web wallet, but buying a few coins (or a fraction of a coin) on Coinbase is a good way to start as a beginner. Please be aware, though, that this is a new industry and purchasing Bitcoin in any form carries risk, so do your research. I wouldn't want to be the one recommending Coinbase just before someone manages to hack it!
I hope that helps!
Edit: formatting and typos; added quote from Ben Lawsky.
submitted by 11251442132 to Bitcoin [link] [comments]

Guest on the Bob Rivers Show in Seattle on Monday. Requesting help to represent Bitcoin well. (x-post to /r/BitcoinSeattle)

Hi /Bitcoin and /BitcoinSeattle! I have been invited to the Bob Rivers show on KJR FM 95.7 in Seattle this coming Monday (the 27th) around 8:40 AM. In the spirit of community and open source I’d like to ask you folks how I can best represent Bitcoin on the show.
I called in during a very short 5 minute segment they did yesterday. You can listen to that here if you want. It starts at about 41 minutes and goes to 46 minutes or so (have to let it load first). I emailed them after that show and they invited me. As mentioned in that segment the main host Bob Rivers read Marc Andreessen’s New York Times piece.
I didn’t get clarification but imagine this’ll be a relatively short 10-20 minute segment and I won’t be doing most of the talking: likely just doing Q&A from the show’s hosts. Nonetheless I’d like to be prepared if I get a moment to expound on anything.
I’m working on a short 1 page topic brief that might be reviewed by the staff there due on Sunday. I’ll share that here, too. So: what should we talk about?
A few things I had in mind:
Other things, too! I have a big list of topics but I want to get the most “conversation-worthy”, gaming-changy, paragidm-shifty stuff out, kinda like what Marc Andreessen did in his article.
By request I’ll be “bringing” some Bitcoin to the show, too. I hope to demonstrate a transaction as well. Perhaps sending money to Sean’s Outpost (easy to demonstrate with a big ol’ QR code on the front page).
Thanks everyone! - Jesse
submitted by FliedenRailway to Bitcoin [link] [comments]

Peter Diamandis thinks bitcoin is about to enter it's disruptive phase

https://plus.google.com/app/basic/stream/z13xjxboqkybuvciu04cedch1xr5wpmb13g
Bitcoin is moving from its Deceptive phase to a very Disruptive phase. This Blog is going to explain why, and what you may want to do.
I've been tracking Bitcoin since its inception, and my confidence has grown to the point where I'm now trading in a portion of my gold holdings for bitcoin, buying it and accepting bitcoin for the Abundance 360 CEO Summit.
What exactly is bitcoin?
For starters, bitcoin is a digital currency. As of right now, one bitcoin is equivalent to about $600 USD. Bitcoin is divisible down to 8 decimal places, or 0.00000001 BTC. You can buy things with bitcoin, sell things for bitcoin, and exchange bitcoin for other currencies (and vice versa). You can also "mine" it, but we'll get into that later.
At its core, bitcoin is a smart currency, designed by very forward-thinking engineers. It eliminates the need for banks, gets rid of credit card fees, currency exchange fees, money transfer fees, and reduces the need for lawyers in transitions... all good things.
Most importantly, it is an "exponential currency" that will change the way we think about money. Much the same way email changed the way we thought of mail. (Can you remember life before email?)
If you've followed my work, or participated in my Abundance 360 Summit, you understand that I teach and track exponential technologies using my "6 D's" approach, looking for "user interface moments."
Bitcoin is following the 6Ds and is on a path to go from deceptive to disruptive over the next 1 - 3 years. Allow me to explain.
Why Bitcoin is following the 6 D's
  1. DIGITIZED: Bitcoin is digitized money -- it is a global, purely digital currency. Every bitcoin is traded, earned, sold, exchanged and bought in cyberspace. For this reason, it is living on Moore's law and hopping on the exponential curve.
  2. DECEPTIVE: Bitcoin software was released to the public in 2009 and for the first few years has been growing in its deceptive phase. Few heard about it, few used it and accepted it. In addition, the currency has been hard to use; therefore, it hasn't had its "User Interface Moment" (the key transition from deceptive to disruptive). More soon.
  3. DISRUPTIVE: As described below by my friend Barry Silbert (founder of Second Market), Bitcoin is about to enter its disruptive phase where its rate of acceptance and use will explode, as will its value. See below.
  4. DEMATERIALIZING: Bitcoin is eliminating or dematerializing the use of physical money (bills and coins), even credit cards. But more than that, it is also dematerializing (read: eliminating) the need for central banks, lawyers and currency exchanges.
  5. DEMONETIZING: Bitcoin eliminates middlemen (banks, lawyers, exchanges) and demonetizes the cost of transactions. No fees. It makes it cheaper to use, spread and share money.
  6. DEMOCRATIZING: Bitcoin makes access to capital available to everyone, where there are no banks, no ATMs and no credit card suppliers. Ultimately, as we move (over the next 6 years) to a world of 7 billion digitally connected humans, Bitcoin makes currency available to anyone with a connection to the internet.
Bitcoin's Evolution - Why it will be Disruptive Soon
My friend Barry Silbert (founder of Second Market) recently spoke as my guest at Singularity University's Exponential Finance conference about Bitcoin. He provided an excellent overview of its near-term trajectory, summarized below. His input has also put me on the lookout for the "User Interface Moment" - that moment in time when an entrepreneur designs a piece of interface software (think Marc Andreessen and Mosaic) that makes it so easy to use bitcoin.
I'll be reporting on those user interfaces, investing in those startups and helping to promote them.
Okay, now back to Barry Silbert's insights. Barry outlined five phases for this digital currency that help explain where it's been and where it's going.
Phase 1: The period 2009 to 2011 was the early 'experimentation phase' for bitcoin (i.e. deceptive). Here the software is released to public and most technologists and hackers started playing with the code. During this phase, there was no apparent value to currency yet; mining bitcoin was easy and could be done by a single person on a MacBook or PC.
Phase 2: 2011 marked the beginning of the 'early adopter' phase (still deceptive). There was a lot of early hype and press around Silk Road (where you could buy drugs). The value went from less than $1 to over $30, then crashed. This spurs the first generation of bitcoin companies to build basic infrastructure: wallets, merchant processors, mining operations, exchanges, etc. - i.e. the early user interfaces.
Phase 3: 2012 thru mid-2014 marked the beginning of the 'Venture Capital Phase.' Folks like Marc Andreessen, Google Ventures, Benchmark and others have begun investing in Generation 2 Bitcoin companies. We are right in the middle of Phase 3 right now. Thousands of bitcoin companies are getting funding. Many of these are trying to create the "User-Interface Moment."
Phase 4: Fall 2014 thru 2015 will like see the start of the Wall Street Phase. Here we will begin to see institutional money acknowledging digital currencies as an asset class, and they will begin trading it, investing it and creating products around it. This marks the start of the disruptive phase.
Phase 5: Finally will come the 'Mass Global Consumer Adoption' phase -- this is where bitcoin becomes a major player in the global economy. When consumers feel it is easy, safe and secure to use bitcoin. It won't be possible until after the "User Interface Moment" materializes, but I believe, as does Barry, that this is only 1-2 years out.
So now what?
Learn, do, teach... Go experiment! Create a bitcoin wallet and buy some bitcoin. There is no better way to learn than by doing.
First, there are a few bitcoin exchanges where you can "buy" bitcoins with dollars (or other currencies). The most popular exchanges are:
Coinbase (www.coinbase.com) Bitpay (www.bitpay.com) For those of you in my Abundance 360 Community, we will be discussing bitcoin in more detail. We will talk about how they work, how you start investing, how you mine, how you get involved, how to create a wallet, and how to begin acquiring bitcoin.
If you aren't a member yet, join us here: http://www.a360.com
Best of luck, Peter
submitted by rbhmmx to Futurology [link] [comments]

Legal issues with accepting bitcoin legal blog post. Any additions/corrections?

Hey guys, about to post this to the legal blog on lawkick.com. You guys have any additions/corrections? Feedback welcome as well.
The Bitcoin Rundown Bitcoin continues to capture the attention of venture capitalists, retail businesses, government regulators, the media, and politicians over five years after its inception. Despite the recent shutdown of Mt. Gox (formerly the largest Bitcoin exchange), and subsequent drop in the Bitcoin exchange rate, the crypto-currency is still growing in acceptance and use. More and more businesses are starting to accept them in-lieu of traditional currency, and the United States is starting to issue regulations and guidelines concerning their use as a currency. However, many legal issues lurking behind crypto-currencies remain, and untangling them is still a work in progress. This article will cover the basics of Bitcoin, where it is today, and then turn to the legal issues surrounding its use.
Bitcoin Basics So what do we know? Bitcoin is the most popular of a number of virtual crypto-currencies, a form of money with no physical presence. Owners of Bitcoins can sell them for traditional currency to other users, through online exchanges. Bitcoins can also be used in some stores or websites in exchange for goods and services, and some technologists accept them directly in exchange for services like web design and development. Today, Bitcoin is the target of venture capital investment, criticism, praise, and confusion. Marc Andreessen, a software engineer turned venture capitalist in the technology space, has invested over $50 million in Bitcoin start-ups, and he’s not alone. Some estimate the total capital investment in the Bitcoin space will reach $300 million by the end of 2014. Moreover, companies already accepting Bitcoin include Overstock.com, Virgin Galactic, Wordpress, Reddit, Zynga, Tigerdirect, Stripe merchants, and at least one Tesla dealer. Law firms are starting to get in on the action too, as a firm in Houston and Illinois started accepting Bitcoins as payment last year.
Legality of Accepting Bitcoin and Taxes With all this interest brewing, it’s about time the legal issues surrounding Bitcoin’s use are cleared up. Foremost, is accepting Bitcoins as payment legal? It is, provided one follows the new guidelines provided by the IRS for tax purposes. As of March 2014, the IRS classifies Bitcoin and other virtual currencies as property, rather than currency, and transactions over $600 are taxed the same way the agency treats property transactions. This includes payments, gains realized from investing in Bitcoins, and income derived from producing the Bitcoins (known as “mining”). The Bitcoins must be valued at their “fair market value,” according to the IRS, which can be based on the going prices at the online exchanges. This can be problematic, as Bitcoin prices fluctuate daily, and sometimes for significant percentages. Additionally, if used as payments to employees or contractors, it must be listed on their W-2 or 1099 forms. These payments are subject to the same information reporting that any property payment is.
Specific Problem for Lawyers Accepting Bitcoin Bitcoins fluctuation in price can be problematic for any company, but pose a special challenge for lawyers. On one end of the spectrum, a price drop can leave the lawyer working for almost nothing, but the biggest problem is on the other end of the spectrum. A price increase could cause the lawyer’s rate to become “unconscionable,” a violation of their ethical duty as a lawyer to avoid charging excessive fees. Such a rate is unable to be retained if the client sues, and may even expose the lawyer to sanction liability.
The Bitcoin Refund Issue For merchandisers especially, Bitcoin also presents an issue for returns and exchanges. Say someone purchases one Bitcoin worth of stuff when the spot price is $600, but later decides to return it, or the product is defective. If the value of a Bitcoin increased to $700 or decreased to $500, one of the parties is going to lose out. In fact, if the price of a Bitcoin increases, it creates a moral hazard by incentivizing the customer to return the product for the Bitcoin. Overstock.com has chosen to solve this issue by offering in-store credit for returns, and places the risk of currency fluctuation on the customer by limiting that credit to the exchange rate at time of purchase.
Conclusion Today, accepting Bitcoin as payment is still tricky. Before doing so, I suggest finding a lawyer to ensure your business complies with federal, state, and local laws. Lawkick can be your essential tool for finding the right lawyer for your needs.
submitted by SilentGaucho to CryptoCurrency [link] [comments]

21 CEO, Balaji Srinivasan presents How To Get Bitcoin Without Mining or Buying Bitcoin Bitcoin: An Alternative Investment Decentralized Applications - the future of Bitcoin and virtual currencies? The 1 Bitcoin Show- Lightning Network & Cuba, MyEtherWallet scare, Andreessen Horowitz MUST WATCH VIDEO! WANT TO BE WEALTHY IN BITCOIN XRP ...

Marc Andreessen says we're at a point in time in which we can reinvent the whole financial system, and bitcoin could be a part of that equation. “Marc Andreessen has a storied history in Silicon Valley and was an early believer in the potential of crypto,” Coinbase co-founder and chief executive Brian Armstrong wrote on Medium. “As far back as 2014, he penned a seminal op-ed in The New York Times that introduced many to bitcoin for the first time.” Ahead of a possible initial public offering that could come later this year, cryptocurrency startup Coinbase Inc. has welcomed two new Tech And Venture Capital Legend: Bitcoin, Crypto Continues To Work. In early-2014, when Ethereum was a fledgling concept and Bitcoin (BTC) was far under quadruple digits, Marc Andreessen, the mastermind behind a number of the early-stage internet’s foremost startups, came out in full support of crypto via a New York Times op-ed piece. Apple Pay is the next big thing that’s “freaking out” financial services companies right now, but, in the long term, bitcoin will prove to be the real innovation, Marc Andreessen has said.

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21 CEO, Balaji Srinivasan presents How To Get Bitcoin Without Mining or Buying Bitcoin

Mine Bitcoin and other Cryptocurrencies with Genesis Mining. Use code "he76Rc" and get 3% off every purchase ... Bitcoin Fireside Chat with Marc Andreessen and Balaji Srinivasan - Coinsumm.it ... Gold and hold that Bitcoin because it is the new and improved version of gold. MyEtherWallet had a bad day and we were all reminded about the risks surrounding third parties in this space ... We found the best place on earth for Bitcoin mining. Iceland provides a perfect climate that is cool year round and runs entirely off 100% renewable green energy. ... Marc Andreessen's Top 10 ... An Interview with Marc Andreessen & Chris Dixon by Eric Ries, ... Bitcoin Fireside Chat with Marc Andreessen and Balaji Srinivasan - Coinsumm.it - Duration: 43:24. MUST WATCH VIDEO! WANT TO BE WEALTHY IN BITCOIN XRP ALTCOINS? FOLLOW MARC ANDREESSEN! I go over Bitcoin and crypto market. Also Cell working with Federal Res...

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