Episode 170 – Bitcoin Core Update, 5th Quill Studios, What’s Monero?

Neocash Radio switches from Sunday to Wednesday nights and officially welcomes an additional co-host for future episodes: Randy Clemens! Here are the TL;DR headlines from today’s show:

California lawmakers shut down again by EFF. Golem releases code, advertised as the AirBnB for computing power. Poloniex de-listing 27 altcoins. The state of Florida appeals the decision of a Miami judge that ruled Bitcoin was not money. $25 Million in DAO funds still unclaimed. Bitwala adds Dash and Steem to their Bitcoin wallet, Ethereum is on the way. A closer look at Bitcoin 0.13.0 and what it means. 5th Quill Studios launches with a great Bitcoin explainer video. Germany warns it’s citizens to stock up on food and water for an impending emergency. And we take a first look at Monero!

All this and more here on Neocash Radio episode 170! Recorded August 24th, 2016.

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Episode 169 — A massive dump of US debt & Bitcoin issues a warning

JJ, Darren, and Randy discuss Hardware wallets, the massive US Debt, ride-sharing apps getting taxed to support the taxi industry, a discrepancy in the Dash blockchain, hacking the NSA, and more here on Neocash Radio Episode 169, recorded August 21st, 2016.

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Traditional Markets
Gold $1342
Silver $19.25
Oil $48.57
DOW Jones $18,552
30Y UST 2.2869%

Crypto Markets
BTC $580
LTC $3.60
Dash $13,19
Ether $11.15
1 Doge = 1 doge

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Why I Won’t Encourage Businesses to Accept Bitcoin

There are several reasons taken together that lead me to conclude that I should not promote bitcoin to businesses.  Here in New Hampshire there are several businesses that accept bitcoin and I have taken advantage of this fact.  The environment that I want to live in would have even more businesses accepting bitcoin.  However, I won’t promote that businesses accept bitcoin.

Businesses exist for one reason

Businesses exist for only one reason, that is to make money.  As with any voluntary exchange, all parties should benefit.  If you sincerely believe that any extra business that accepting bitcoin would bring in would cover the costs associated with accepting bitcoin, have at it.  Large businesses with many employees might incur a significant training cost however.  Efficiency is difficult to obtain for any business, and introducing outside factors could disturb that efficiency.  It’s hardly ever clear that an extra $100 or even $1000 of sells would make the transition worth it.  This is even more dramatic for low margin businesses such as food service.

Bitcoin cannot support more use

Even with only small 300 byte transaction, bitcoin can only support 175 million transactions in a year.  This means that about half the U.S. population (or 2.5% of the world population) can use bitcoin at most once a year.  This is a hard cap, there is no more capacity without changes to bitcoin that are slow to be rolled out, in my view years late.  As bitcoin gets more use, this problem only gets more severe.  Without being a business that appeals to bitcoin users, this is a small number of possible transactions to promote a business try to capture.

Network congestion makes fraud more likely

During peak use bitcoin blocks can be full.  This results in transactions with lower fees not being confirmed.  In the worst case a transaction will never be confirmed.  This creates an environment where double spends are possible.  What’s worse is that accidental double spends are possible.  What used to be the result of a malicious individual can now happen without trying.  “No double spends” used to be a selling point of bitcoin.  Now it can no longer be assumed.  It does not seem that a solution to this problem will be forthcoming.

Technical knowledge is daunting and helpful

When promoting bitcoin to a business owner, there should be a desire to provide full disclosure.  Two years ago, it could be said that there are reasons payments could not go through, but that’s unlikely.  Today this statement cannot be honestly made.  Given enough time, it’s certain that a business will run into business will run into problems.  Having the technical knowledge can help.  Rebroadcasting a transaction paying the business could help mitigate this problem.  However, this puts the onus on the business owner.  Because the bitcoin network is unstable, explaining the technical facts becomes more important and more difficult.

Bitcoin may be right for some businesses

Of course this argument does not apply to every business.  Businesses based around bitcoin probably will still need to accept bitcoin.  Also online businesses may want to accept bitcoin because of the ease of payment it offers customers.  Online businesses without instant shipping can avoid pitfalls of the bitcoin network congestion quite easily.  The internet remains the natural habitat for bitcoin.  I also feel that a business owner that likes bitcoin for ideological reasons may want a customers bitcoin expertise.  Most hurtles are removed if a business owner finds value in bitcoin independent from their business.

Consider the merchant expierence

If a merchant integrates bitcoin now, and has a bad experience.  It is less likely that the merchant will be open to adopting bitcoin or bitcoin-like payments in the future.  Perhaps it would be best for sustainable scalable solutions to be introduced before promoting integration into the crypto economy.  Bitcoin has given us a glimpse of what is possible, and it’s likely that more streamline technology will be available in the future.

Episode 167 – A First Look at Steemit and Silbert Announces ETC Pump and Dump

Randy joins us in studio. Bitfinex suffers a massive loss in bitcoins due to a hack and is talking about socialized losses. Barry Silbert announces a pump dump for ETC. Japan is the first to Quantitative Ease for stimulus. Kim dotcom announces Mega 2.0 and bitcache. Be on the look out fr fake bitcoin wallet applications on the Apple Store. The Brave browser may eliminate ads as we know them. Jaxx integrates Dash. We talk with Randy about a first look at Steemit.

 

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Episode 166 – My Coin is Better Than Yours

The Central Bank of Zimbabwe doesn’t want people to use Bitcoin. A circuit court in Florida finds that Bitcoin is not money. Arcade City may have big issues. An update about Ethereum, Ethereum Classic, and the almost religious zealotry found on reddit and the forums. Central banks are bracing for a crash or recession. EU may create a list of crypto-users.

 

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Episode 165 – Peter Todd Unsettled by Ethereum Independence

Bitcluster creates a database of bitcoin transactions. Scotcoin looks to be the next player on the altcoin craze. Ethereum Hardfork Review and the dregs of Ethereum Classic. Mycelium to add Dash by October. Coinbase adds Ethereum to their front end retail site. The shift from bitcoin dominance is happening. Caribbean banks feeling the sting of money laundering concerns.

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Episode 164 – LBRY Trading, Ethereum Hardfork Update

4th Amendment Caucus formed in US House. Britain’s 10Y treasuries still offering negative interest rates. North Carolina add bitcoin to Money Transmitters Act. LBRY is live and trading on exchanges. Ethereum will hardfork in 3 days. Coinbase will add Ethereum to the Retail side.

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Episode 163 – The Hubris of “The DAO”

Bitcoin block reward halves, again. Uber switches to Bitcoin in Argentina, Arcade City meets Austin, Texas. Dash spokesman criticizes bitcoin. Ethereum votes hardfork and the slock.it team displays arrogance and hubris. Treasuries and the Chinese market moves.

 

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