Poloniex Closing to U.S. Customers

On October 18, 2019, Poloniex announced spinning off from Circle into a new company, Polo Digital Assets, Ltd. Poloniex would be backed by a “major” Asian investment group. While the announcement said that this investment group would focus on global crypto traders, those traders do not include U.S. based traders.

Beginning October 18, 2019, U.S. based users will no longer be able to create and setup an account on Poloniex. Then, as of November 1, 2019, trades will no longer be possible, the message advised U.S. users to not deposit funds to Poloniex accounts. Funds will be available for withdrawl through Circle until mid-December, according to the announcement.

Some have speculated Justin Sun, Tron Foundation founder and CEO of BitTorrent was looking to buy Poloniex. This was soon put to rest when in a tweet Justin Sun responded:

I’m not buying anything. Just invest some and help out my friends. Actually I have a huge bag of $BNB, $HT, $OKB etc and bet on all exchanges that support $TRX & $BTT.

8:27 PM · Oct 18, 2019·Twitter for iPhone

Poloniex, founded in 2014, was purchased by Circle in 2018 for $400 million USD.
The Poloniex announcement also includes as Q&A section which you can read here

Advertisements

Data in 2019, more valuable than oil

In a previous article, In Defense of Privacy, I wrote that we should not fetishize privacy, we should demand privacy. While I stand by that, we run into the issue that most of our privacy is degraded and put at risk because we willingly and nonchalantly provide our data.

I’m as guilty of this as anyone else so what can we do? Is it possible to get our data back? The short answer…no. In an interview with Bloomberg in September 2018, Brittany Kaiser formerly of Cambridge Analytica put it simply, no.

“If you were on Facebook before April 2015, you’re never getting your privacy back. That data has been copied and proliferated around the world so many times without any due deligience, any tracking or traceability on a technology level that there is no way that there is no way you will be able to erase all of that data, you’re not going to get it back”.

So what do we do? Similarly to debt, the best way to start to get out of debt is to limit and if possible stop spending. With data, we can limit the amount of data we provide moving forward and in terms of social media, limit the number of people we “friend.”

There is also the issue of our data being hacked/stolen from organizations that we should be able to trust with that data, i.e., government, banks, and hospitals. Where what happened with Facebook and Cambridge Analytica could be seen as a case of TOS (Terms of Service) manipulation. There is an expectation that the data shared with banks, hospitals, credit card companies, and the like are protected at the highest level possible.

Unfortunately, this is not always the case.

Almost daily, we see reports of data breaches that target companies storing user data instead of individual users and instances of companies leaving the data unprotected or unencrypted or selling that data for profit.

“The Biggest Security Breaches of 2019, so Far.” 2019. The Kim Komando Show. 2019.

Missing: FDNY Hard Drive With the Medical Records of More Than 10,000 People

DMVs Are Selling Your Data to Private Investigators

Round-Up of Crypto Exchange Hacks So Far in 2019 — How Can They Be Stopped?

And yes, the issue of data protection and privacy are a major concern in the Cryptocurrency space, especially with increasing government demand for KYC (Know Your Customer) policies.

But what can be done? We must demand our elected officials step up and do more to protect user data. It is also essential that companies be held accountable for data breaches and data theft by internal employees.

For our part, some actions we can take:

  1. Use companies, apps, and programs that use clear terms of service with opt-out options for data sharing and that provide confirmation in writing our data destroyed when requested.
  2. Unless required for the situation at hand, do not provide private information such as social security number, address, birthday, or family information.
  3. Utilize programs like Google Voice to get a phone number that you can give out that is not your actual phone number.

These are only a small sample of the tools we can use to protect our data moving forward. It will require some forethought on our part, and unfortunately, that is what we have to do.
We are raised to be honest, and when someone asks a question, we should give an honest answer. But that honesty and openness are used against us by corporations who have no such sense of openness or transparency, so why should we give them the same consideration?

In 2019, Data is more valuable than oil, and we need to guard our claim.

“The Biggest Security Breaches of 2019, so Far.” 2019. The Kim Komando Show. 2019. https://www.komando.com/tips/584393/what-to-do-after-a-security-breach-2019-round-up.

2019. Gizmodo.Com. 2019. https://gizmodo.com/missing-fdny-hard-drive-with-the-medical-records-of-mo-1837109038.

Cox, Joseph. 2019. “DMVs Are Selling Your Data to Private Investigators.” Vice. vice. September 6, 2019.

https://www.vice.com/en_us/article/43kxzq/dmvs-selling-data-private-investigators-making-millions-of-dollars.

Young, Joseph. 2019. “Round-Up of Crypto Exchange Hacks So Far in 2019 — How Can They Be Stopped?” Cointelegraph. Cointelegraph. June 18, 2019. https://cointelegraph.com/news/round-up-of-crypto-exchanges-hack-so-far-in-2019-how-can-it-be-stopped.

President Trump Unites Crypto…Against Him

On Thursday, July 11th, 2019, a miracle happened.

Donald Trump, the 45th President of the United States, managed to unite (however briefly) the various factions in Cryptocurrency…against him.  In a series of tweets, President Trump declared his views on Bitcoin:

Tweet 1: “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….”

Tweet 2: “…Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…”

Tweet 3: “…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”

So as you can imagine, that went over like a ton of bricks on Bitcoin/Crypto Twitter, some even questioning if these tweets were by Donald Trump, maybe one of his staff being behind them. Several prominent members of the Crypto community responded with brilliant retorts.

From Erik Voorhees, CEO of Shapeshift:
Unlike children, Mr. President, you can’t put Bitcoin in a cage. 

From Brian Armstrong, CEO of Coinbase:
Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago. “First they ignore you, then they laugh at you, then they fight you, then you win”. We just made it to step 3 y’all.

From Anthony Pompliano of Morgan Creek Digital:
Dear @realDonaldTrump,

You can’t change Bitcoin’s monetary policy, supply schedule, interest rate, or transaction history. There is no CEO or employees. No one will answer customer service complaints. But you can always count on Bitcoin. 
It never goes down.
Love,

Pomp

But it was the response from Caitlin Long, a Wall Street veteran and a supporter of Cryptocurrency from Wyoming who is a member of the Wyoming Blockchain Task Force, that had the best response, one that may even help to change President Trump’s mind: 

From Caitlin Long, Wyoming Blockchain Task Force: 
1/ Mr President—#Wyoming, the state that gave you the highest margin of victory in 2016 (even bigger than Reagan), welcomes law-abiding #crypto companies & created a new type of bank charter to allow them to comply w/ the law. You are just wrong on this—ur staff is misleading you

2/ Your staff isn’t giving you good advice (I don’t see anyone on your staff who has experience in this new asset class). The US payment system hasn’t really innovated in 50 yrs—it’s unstable & inefficient. I’ve been surprised that your administration has coddled it instead of…
3/ …opening it up to healthy competition. The #crypto genie can’t be put back in the bottle & if the US fights this we will simply be bypassed by other countries that are welcoming it. Banks tried to shut down #crypto by shunning the industry & look what happened—it didn’t die.
4/ Why? Because this is the first serious payment innovation in decades. Yes, #crypto is used for illegal activities, but much less frequently than the dollar is—& crypto is easier to track (check w/ the FBI! Mr President, you don’t need to choose between #crypto & the dollar!
5/ To close, pls invite #crypto experts to advise you—you need to hear the other side. And you need to understand how #Wyoming has created a regulatory-compliant framework to let this innovation thrive Cryptosin a lawful manner & ensure the US keeps our lead in financial services! 🤠🇺🇸

Now, let’s go back over what the President said:

Tweet 1: “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….” 

Bitcoin is, in fact, money. The Merriam-Webster Dictionary defines money* as: “something generally accepted as a medium of exchange, a measure of value, or a means of payment” and which fits the character of Bitcoin just right. President Trump says that Bitcoin is based on thin air. Code is not thin air Mr. President, Code is the Internet, Code is the automation that is changing the world, Code is how Visa, Mastercard, and American Express can provide credit cards and their transactions. Code is how Wall Street can function and move trillions of dollars around the world. 

So now we have to look at what gives the United States Dollar its value, we have not been on the gold standard* for almost fifty years, so what is backing the dollar? The word of the government of the United States and if I’m not mistaken, words are not only thin air but hot air as well.

 Next, we have to talk about the unlawful behavior and activity part of this tweet. Sure, people have used Bitcoin for nefarious reasons, but not nearly as much as the United States Dollar (USD) has. So if the measure of a currencies validity is its use for criminal activity, the United States may need a new form of currency. 

Tweet 2: “…Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…”

We need to understand that most politicians are not going to come out and support Bitcoin and Cryptocurrency. They will use the threat Bitcoin poses to US monetary dominance and how the USD will be affected by Bitcoin or that Bitcoin will allow countries to ignore US Sanctions (which is all true btw), but that was the point from the beginning. And we can never forget that the banking industry has powerful lobbyist and lawyers to fill politicians heads with all sort of nonsense related to Cryptocurrency.

Tweet 3: “…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!” 

This last tweet is purely political fist pumping and quite frankly was not unexpected from any sitting President. Why would they say anything other than the United States Dollar is the best currency, especially if their platform is basically “America! F— Yeah!”

In the end, the Crypto community is going to have to understand that it is us vs. them. Even those Cryptocurrencies like XRP and BSV who claim they are bank-friendly or government-friendly, they have to realize that if they pose a threat to USD dominance, they will be attacked by the fiat banking system and their cronies in Government. The only reason why we are having more and more politicians talking Crypto is that Facebook’s Libra scared them. More likely, scared the people funding them, so why should we be surprised that Trump went on a Twitter rant about Bitcoin?

During his interview at Bitcoin Conference 2019, in San Francisco, Edward Snowden said that Bitcoin needs a lobbyist. People to fight for Bitcoin and Crypto in Government and while many would argue against that, it’s true. If Bitcoin and Crypto, in general, want to be used as a global currency, it will need support in Governments around the world. If nothing else to keep anti-crypto laws from being passed or harmful regulation. 

Unpopular Opinion I know but that’s the world we live in.

Thank you

Jason Nelson

Twitter: @dragonwolftech

Dragonwolftech.com

“Definition of MONEY.” 2019. Merriam-Webster.Com. 2019. https://www.merriam-webster.com/dictionary/money.

Wikipedia Contributors. 2019. “Gold Standard.” Wikipedia. Wikimedia Foundation. July 9, 2019. https://en.wikipedia.org/wiki/Gold_standard.

 

 

Personal Security & Cryptocurrency

Earlier this year, I attended Blockchain Week in Los Angeles, CA, at Crypto Invest Summit (CIS) 2019. Walking around, I met many of my favorite Crypto YouTubers for the first time and sat in on several excellent talks on the space and future of Cryptocurrency.

While I had a great time something was bothering me, it was a brief interaction between a presenter at one of the booths and an older person who was interested in setting up a wallet. I won’t name the wallet/project because it doesn’t matter; these are issues that affect us all.

I watched the entire interaction, which is why I remember it so vividly. The presenter was talking to the person about Cryptocurrency, Bitcoin, and all the things that their wallet could do (send/receive, exchange, etc.). The person was interested and wanted to download the wallet.

After showing them how to download the wallet, the presenter showed them how to set up their account. Abruptly, the presenter began to walk away. The person asked, “is that it?” and the presenter said yes and walked away.

Sitting alone, the person began looking at their screen with a confused look on their face. I asked them, “are you okay, can I help?” Sitting down next to them, they showed me their phone and on their screen was the list of words that would restore their wallet.

“What do I do now?” they asked. I took out a piece of paper and a pen and gave it to the person. “Okay, so what you need to do is write down these words, they are the only way to restore your wallet in case your phone is lost or stolen.” I held the phone as they wrote down the words. “Now, keep this paper is a safe place, it’s very important that no one else sees this”.

The reason I bring this story up is that not only do we need to show new users how to use Crypto and their wallets, but we also need to make sure we are telling them about how to secure their investment. Not only that but have a careless attitude can quickly turn people off to Cryptocurrency as there is a learning process that needs to go into getting started. If a new user comes to believe it’s too complicated, they may say never mind, and that is not what we need to grow the space.

So, let’s go back to the interaction between the presenter and the new user. After downloading the wallet, the items that should be covered next (at the bare minimum) should have been:

  1. Create a secure password for your wallet
  2. Write down recovery words/phrases
  3. Enable 2FA if available

Creating a secure password, one completely different from any other that you would have used is key to personal cybersecurity. I use a password manager to generate random passwords.

Writing down the recovery words/phrases is Crypto 101 for most of us but people being people, this step is overlooked as users want to get to the good stuff about Crypto and start sending/receiving and exchanging. But, it is crucial to understand that the recovery seed is the only way to get their funds back if something happens to their phone, also if they want to use an associated desktop wallet, they are going to need that seed to sync the two wallets generally.

Enabling 2FA (Two Factor Authentication) is a great way to add additional security to a wallet and accounts in general. Facial recognition, a 4 to 10 digit passcode, a third party password generator, a text message authorization code can help keep your funds safe with an added layer of protection.

The one thing that the Crypto space should avoid is the hubris that comes with knowing something that others do not and being unwilling to take the time to teach new users. One of my favorite movies is the 1995 film Hackers. It was long of fun but short on accuracy but still a great time. One character named Joey wanted desperately to be a part of the group, wanted to be a hacker but all he got back from the group was “that’s stupid, you need to do a righteous hack, you don’t hack a bank across state lines!” All the while, not once, did anyone provide any tips or pointers, they just expected him to know.

We need to avoid this type of behavior in Crypto. It does not help anyone to have a persistent ignorance in the space. We need fewer people talking about Lambos and more people explaining how to use Bitcoin and Cryptocurrency.

If we are going to be our own banks, we need to start acting like it.

Bitcoin: Who Uses It?

More and more, we hear of content creators across the spectrum of politics, both left, right, and center being deplatformed or having their work censored or banned because of views that go against those of the platform they are hosted on.

Two prominent voices, Abby Martin and Tim Pool, have begun accepting Bitcoin via their websites and channels as monetization becomes harder and harder for content creators on YouTube. Bitcoin has become a refuge for content creators who want to get around the new wall of censorship slowing going up across the Internet.

It’s here that we find actual use cases for Bitcoin and other Cryptocurrencies. It’s well and good to hope that the corner store will accept Bitcoin or that you will be able to buy your favorite Latte with Bitcoin, but Bitcoin is already being used around the world, in it’s intended purpose of sending money peer-to-peer without a trusted third party.

Recently, I attended Bitcoin 2019 in San Francisco, CA. One of the keynote speakers was Edward Snowden, and it was in his speech that he revealed that the equipment he used to send the information to the press was purchased with Bitcoin.

Who else uses Bitcoin?

For the dissident working under a brutal regime, who needs to receive funds or send funds and the banks are controlled by the government. Bitcoin is the answer. Is Bitcoin the answer to all their or our problems? Of course not but what Bitcoin does is create a means for people to move funds across borders only needing a computer or smartphone and the Internet.

For Example,

The Free Joseon movement in North Korea raised over 64 million Won (Roughly USD 54,912.00) over the last year in Bitcoin, selling virtual visas’ to the country that they hope will arise after defeating the North Korean Regime.

Julian Assange, Founder of Wikileaks, has been a proponent of Bitcoin since the early days of Wikileaks. When VISA and PayPal stopped supporters from sending funds to Wikileaks, those supports turned to Bitcoin. Even after his arrest, Wikileaks has received over 22 million in Bitcoin donations. In total, the Bitcoin address posted on the Wikileaks website current sits at USD 71,808.95 according to Blockchain.com’s Block Explorer.

And of course, there is The Silk Road. A dark web marketplace where a person could buy almost anything (and yes some things were not allowed) and purchases were made in Bitcoin. The U.S. Justice Department sold over 144,000 Bitcoin which it seized, which at the time netted around 48 million dollars.

So there is proof that Bitcoin can be used for commerce as well as for activism and to support whistleblowers and journalist who are not able to use traditional means to fund their activities. As development expands, we are going to see other methods of sending Bitcoin that would allow people to do so without needing a traditional internet service.

Projects like Cointext, CashApp, Dash Text, and others allow users to send Cryptocurrency via SMS messages. So when we consider around 91% of the U.S. population alone have access to a cellphone, this may be the path to everyday usage and adoption.

But it’s not just a journalist, revolutionary or dark web shopper who can use Bitcoin. Everyone, all of us, should use Bitcoin if nothing else because it allows us to buy products or send money to family in other countries without a “Big Brother” watching and saying if we can or can not send money to who we wish. Not because we have any “bad intentions” but because we want to and we don’t want a third party looking over our shoulders.

In the end, the issue with Bitcoin adoption may have more to do with the willingness to take a chance and less to do with the volatility and lousy press put out by the media regarding Bitcoin and Cryptocurrency.

We will have to see

Jeff John Roberts. 2017. “The Feds Just Collected $48 Million from Seized Bitcoins.” Fortune. Fortune. October 2, 2017. https://fortune.com/2017/10/02/bitcoin-sale-silk-road/.

‌Sawers, Paul. 2017. “5 Billion People Now Have a Mobile Phone Connection, According to GSMA Data.” VentureBeat. VentureBeat. June 13, 2017. https://venturebeat.com/2017/06/13/5-billion-people-now-have-a-mobile-phone-connection-according-to-gsma-data/.

‌“CoinText – Send Cryptocurrency to Phone Numbers or Wallets Using SMS.” 2019. Cointext.Io. 2019. https://cointext.io/en/.

‌Mix. 2019. “Wikileaks’ Bitcoin Donations Spike Following Julian Assange’s Arrest.” Hard Fork | The Next Web. The Next Web. April 11, 2019. https://thenextweb.com/hardfork/2019/04/11/julian-assange-bitcoin-wikileaks/.

‌“North Korean Dissidents Sell Ethereum-Based Post-Liberation Visas.” 2019. Yahoo.Com. March 20, 2019. https://finance.yahoo.com/news/north-korean-dissidents-sell-ethereum-230000266.html.

In Defense of Privacy

More and more, our privacy is being eroded, Big Tech is utilizing the tools we use to communicate, shop, and live our lives to spy on us and sell ads and our personal information; they will do the bidding of governments around the world to expand their reach. Those who would stand up to this invasion have embraced technology such as VPNs, browsers with built-in privacy features, encryption, and cryptocurrency to maintain a semblance of anonymity and privacy online.

Recently, an opinion piece in The New York Times, “Why We Should Stop Fetishizing Privacy”, caught my attention. The author, Heidi Messer, made the case that wanting privacy and anonymity was old-fashioned and that by demanding it, innovation and job creation may be stifled. 

The first statement in the piece I have an issue with:Media coverage of the threat to personal privacy from technology tends to follow a narrative in which privacy is a virtue, Big Tech its evil predator and government the good knight capable of protecting it.”

This statement ignores the people advocating for limited governments, the people who see government intrusion into our lives as a threat just as dangerous as that of Big Tech, and the people of who advocate for privacy and individual rights. It’s not about running to the government to keep Big Tech out of our lives, it’s about wanting Big Tech and governments out of our lives.

The author says that “Regulating tech companies could create problems worse than the ones we seek to solve. If we constrict their fuel — data — we may hurt not only the quality, cost and speed of their services but also the drivers of growth for the world’s economy”.

While data is important to market research and machine learning, there is no stipulation in developing market research and machine learning that requires our phones to have hidden microphones listening to us even when we think they are not. Edward Snowden, in an interview with Vice News, took apart a smartphone and showed the interviewer the secondary microphone – why was it there? This feature, one that cannot be disabled under normal circumstances, is there for one reason only, to spy on us and facilitate the sales of our data.

What the piece also misses is the fact that government and tech have been in bed with each other for decades. When some praised former President Barack Obama for his use of social media to drive voters to his campaign and eventual win, where was the conversation about the dangerous reach of technology and social media? Fast forward eight years, and now that President Trump has done the same thing, Big Tech and social media are evil and need to be regulated?

Finally,

“If safety is the actual goal of protecting privacy, consider this: Large tech companies may be our best line of defense against hackers, state surveillance and terrorists. These companies have the talent and resources to match well-funded and sophisticated adversaries. As the threat of cyber warfare grows, shouldn’t we consider whether it would be prudent to break up companies that are our best allies against foreign and criminal intrusion?”

This statement is in line with the age-old “if you aren’t doing anything wrong, it shouldn’t matter if they look” mentality. The problem with this thinking is that it assumes wrongdoing or “we can’t trust these people so we need to keep an eye on them”. In the call to break up Facebook, Google had to do with the fact they undermined the public trust and were caught doing so. How could Facebook protect us from state surveillance when their platform is being used by governments around the world to spread propaganda and misinformation?

Apple’s unwillingness to unlock the iPhone used by the San Bernardino terrorist had more to do with protecting market shares and sales, and less with protecting privacy; our thinking that tech companies are looking out for our best interest or want to protect us from threats for any other reason than sales is absurd.

Google (YouTube), Facebook, and Twitter are de-platforming those they dislike, which in the age of the Internet is like saying that a person does not exist and is politically motivated. Tech companies have no business setting standards for speech, that is not their job or their responsibility.

We’ll be told that if we want to fight terrorism and criminals, we need to give up some aspects of our privacy, and that if you have nothing to hide, it shouldn’t matter. That is a terrible case of 1984 logic.

We should advocate for our privacy because it’s our privacy, and no one may invade it. Not the government, not corporations. Every day, we hear that this is a human right, and it is – privacy is the greatest human right, and the one most under threat.

True, we should not fetishize privacy, we should demand it.



Jason Nelson

@dragonwolftech

The New York Times. 2019. “Opinion | Why We Should Stop Fetishizing Privacy,” May 24, 2019. https://nyti.ms/2ECcWax

If you like my work, please consider donating through one of the following:

  • Litecoin (LTC)  
    LYmx6pC1hp2U6XeUm3uiq2ufn5XtBZZSP5
  • Bitcoin (BTC)  
    1F9fRZoHAJmAEbnxrkezGfmM8ZSi9XTZrQ
  • SmartCash (SMART)  
    SP4c6Qv9hxvYysjbhumnYKstJdT725Ghi8
  • Bitcoin Cash (BCH)  
  • qrhegky5w550reuwgntjasmkvk36hua3qvyvxklmy3

USDT/Tether Comes Under Further Scrutiny

As stated in a recent post. There is a bill in California that would allow Cannabis businesses to pay their state taxes in stable coins. A move that would go a long way towards mass adoption. The issue as this adoption approaches, attention will turn to the cryptocurrency space.

NY Attorney General Letitia James said in a statement:

“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds”.

So what does this have to do with the Cannabis Industry?

On the surface, very little. That is unless you take into account that the goal is to use cryptocurrency for the Cannabis Industry. Which is currently a cash only industry due to federal regulation.

USDT has been a mainstay in the crypto space for some time, a digital asset pegged to the US Dollar. This claim has come under more scrutiny in the space lately due to USDT falling below $1.00 USD on multiple occasions. The whole point of Stable Coins are they should keep their value aka stay stable.

Tether (USDT) is a cryptocurrency with a value meant to mirror the value of the U.S. dollar. The idea was to create a stable cryptocurrency that can be used like digital dollars.

Coins that serve this purpose of being a stable dollar substitute are called “stable coins.”

Tether converts cash into digital currency. To anchor or “tether” the value of the coin to the price of national currencies.

When news that USDT is being used to mask financial dealings, it becomes less likely government will okay it’s use. Especially for Cannabis which itself is still controversial.

We still have the issue of stable coins and the counter-party risk involved. Where companies that issues stable coins may or may not have the amount of USD or assets they claim to.

Click here for more on stable coins and Counter-Party Risk

This is where advocacy and activism come into play. The crypto/cannabis community have to do our part to show that issues like Bitfinex/Tether are not the norm. That crypto is a viable option for the future of the Cannabis Industry.

Stay Tuned…

Jason Nelson

@dragonwolftech

References

Attorney General James Announces Court Order Against “Crypto” Currency Company Under Investigation For Fraud. (n.d.). Retrieved from https://ag.ny.gov/press-release/attorney-general-james-announces-court-order-against-crypto-currency-company-under

DE/Coindesk, N. (2019, April 26). Bitfinex Covered $850 Million Loss Using Tether Funds, NY Prosecutors Allege. Retrieved from https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege

If you enjoy my work, please consider donating through one of the following:

  • Litecoin (LTC) LYmx6pC1hp2U6XeUm3uiq2ufn5XtBZZSP5
  • Bitcoin (BTC) 1F9fRZoHAJmAEbnxrkezGfmM8ZSi9XTZrQ
  • SmartCash (SMART) SP4c6Qv9hxvYysjbhumnYKstJdT725Ghi8
  • Bitcoin Cash (BCH)
  • qrhegky5w550reuwgntjasmkvk36hua3qvyvxklmy3

E*Trade May Soon Allow Investing in Cryptocurrencies.

As the crypto space tries to recover from the dip caused by the Bitfinex/Tether vs The New York Attorney General’s office debacle, the news that E*Trade is stepping into Crypto may help in releaving the stress in the market.

Stay Tuned…

Jason Nelson

@dragonwolftech

References

Verhage/Bloomberg, J. (2019, April 26). E*Trade Is Close to Launching Cryptocurrency Trading. Retrieved from https://www.bloomberg.com/news/articles/2019-04-26/e-trade-is-said-to-be-close-to-launching-cryptocurrency-trading?srnd=cryptocurrencies

De/Coindesk, N. (2019, April 26). Bitfinex Covered $850 Million Loss Using Tether Funds, NY Prosecutors Allege. Retrieved from https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege

Cannabis, Taxes & Stablecoins

 

Today is 4/20/19 when people around the world celebrated Cannabis, Hemp and Marijuana.

For a long time, the question of mass adoption has made the rounds in the Cryptocurrency community. Hopes that corporations and investment institutions would see the value of getting involved with crypto has yet to pan out. But other avenues have emerged that just might drive that adoption.

The Cannabis Industry.

Several states across the United States have legalized recreational marijuana use, those states include Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon & Vermont. But while states have begun to legalize recreational marijuana use, it still remains federally illegal which puts both the states and the Cannabis Industry in a precarious position.

If the federal government should enforce its laws against marijuana use, what could that mean for the states who have legalized it and more importantly what would that mean for the industry and those who have come to enjoy its product.

Because of its current legal status, the Cannabis Industry is a cash only industry, which not only is dangerous for business owners who would have to have large sums of cash on hand at all time but has potential to allow money laundering from illegal producers.

California is proposing allowing Cannabis businesses to use Stablecoins to pay taxes instead of transacting in cash. There are two aspects to this that the crypto community should find of interest:

1. Government accepting Stablecoins will help legitimize Cryptocurrency for financial uses as well as make Cryptocurrency more mainstream.

2. It will put Cryptocurrency front and center in the minds of the general populace as a means of doing business. Not only would companies be able to pay taxes in Stablecoins, but the customer could also buy their products with Stablecoins, removing the need to cash.

A quick note on Stablecoins: A Stablecoin is not a coin in and of itself. A Stablecoin is a term used to describe Cryptocurrencies pegged to real-world asserts, usually the local currency. For example, True USD (TUSD) is pegged to the US dollar meaning one TUSD would equal one USD and be more stable than cryptos like Bitcoin and Ethereum, hence the term Stablecoin.

So in accepting Stablescoins, the state would need to identify which Stablecoin it would accept, TUSD, USDT, etc. and more importantly plainly state that these Stablecoins are currency and not securities, they are funds to be used for commerce and not investment products. Despite these hurdles, it does appear to be a step in the right direction.

Some on Crypto Twitter (the name given to the various Cryptocurrency supports, investors and advocates that call Twitter their home) appears to be in favor of using cryptocurrency for the Cannabis Industry. Kenn Bosak @KennETHbosak of the Kenn Bosak Podcast said via Twitter when asked:

Jason Nelson @dragonwolftech “There is a proposed law in CA that would allow a cannabis biz to pay their taxes in Stablecoins, they haven’t said which coin but do you think this will help with adoption of crypto and do you think dispensaries will accept crypto as payment?”

Kenn Bosak @KennETHbosak “Dispensaries don’t like being cash Honeypots. Plus paying taxes in cash has added fees. They would use visa if they let them, they would use banks if they let them, and if they let them, they will use crypto”.

We will have to see if the law, dubbed AB-953, passes and if the Cannabis Industry turns to crypto for their tax needs.

Stay Tuned…
Jason Nelson
@dragonwolftech
AB-953 Text. (n.d.). Retrieved February 21, 2019, from https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB953

“Guide to Stablecoin: Types of Stablecoins & Its Importance.” Master The Crypto, 29 Dec. 2018, masterthecrypto.com/guide-to-stablecoin-types-of-stablecoins/

Alexandre, A. (2019, March 02). California Bill Would Legalize Crypto for Tax Payments From Cannabis-Related Businesses. Retrieved from https://cointelegraph.com/news/california-bill-would-legalize-crypto-for-tax-payments-from-cannabis-related-businesses

 

 

 

If you enjoy my work, please consider donating through one of the following:

  • Litecoin (LTC)  
    LYmx6pC1hp2U6XeUm3uiq2ufn5XtBZZSP5
  • Bitcoin (BTC)  
    1F9fRZoHAJmAEbnxrkezGfmM8ZSi9XTZrQ
  • SmartCash (SMART)  
    SP4c6Qv9hxvYysjbhumnYKstJdT725Ghi8
  • Bitcoin Cash (BCH)  
  • qrhegky5w550reuwgntjasmkvk36hua3qvyvxklmy3