Lifeboat Foundation

How many individuals own at least 1 BTC?

I was asked this question today at Quora, a popular Q&A blog covering a variety of technical and economic disciplines. Under my alias “Ellery”, I am the most viewed author on Bitcoin and the blockchain.

While this question may sound like a good factoid for a trivia game, it is directly related to something with with far reaching impact on your pocketbook and your future. It goes to the heart of a debate between warring factions: In the 2nd half of this answer, I address the eternal question:

Is Bitcoin a pyramid scheme? Or are we still early on the adoption curve?

Continue reading “What can we learn from small fraction of people who own 1 BTC” »

IMF head Christine Lagarde said “it may not be wise to dismiss virtual currencies” like bitcoin and ethereum at bank of england conference.”=”

The state of Illinois is testing a new way for people to prove their identities, albeit without the need to request their birth certificates and wait weeks for it to arrive in the mail. The state aims to give citizens more control of their data, as well as provide solace in knowing it’s more secure than ever.

To accomplish this task, the state is turning to the same blockchain technology that companies like Bitcoin and Ethereum utilize for their own networks. In August, the Illinois Blockchain Initiative — a collaboration launched by the state to explore blockchain and distributed ledger technology — announced it’s partnering with self-sovereign identity solutions firm Evernym to create an online ledger that’s only accessible to the owner of the ID and any other individuals they’re granted access. It’s very similar to how the technology could be used to track and share information between hospitals.

Continue reading “Illinois Is Experimenting with Blockchains to Replace Physical Birth Certificates” »

Bitcoin was hit by a double whammy this week. On Tuesday, Jamie Dimon of JP Morgan declared that Bitcoin is a fraud that will “blow up”. Then, just this morning, a Bitcoin exchange in China announced that it would shut its doors in response to verbal pressure from regulators and an uncertain regulatory environment.

Don’t ya just love it when bad news breaks on Bitcoin? I sure do! It creates a buying opportunity. After all, just look at what happened after the last five bouts of bad news: _{[updated Oct 2017—Click to reverse colors & enlarge]}

Continue reading “Bad News is Good News for Bitcoin Investors” »

For the unwary, ICOs represent an even bigger risk, as uncertainty about how they should be regulated means most lack even basic protection of securities laws that governed the dotcom IPOs. As pure digital events, the online fundraisings are also exposed to familiar internet frauds, from phishing scams used to rip off the unwary to the hacking of the underlying software underpinning the new ventures — the fate that befell the first prominent ICO last year, for a company called the DAO.

Flood of initial coin offerings is aimed at bypassing Google and Amazon, but sceptics fear a bubble.

On August 1 2017, the value of a Bitcoin was at $2,750 US dollars. Today, just over one month later, it is poised to leap past $5,000 per unit. With this gain, many people are asking if Bitcoin has any genuine, inherent value. Is it a pyramid scheme? —Or is it simply a house of cards ready to collapse when the wind picks up?

In a past article, I explained that Bitcoin fundamentals ought to place its value in the vicinity of $10,000.* (At the time, it was less than $450, and had even fallen to $220 in the following year).

For many consumers viewing the rising interest in Bitcoin from the stands, there is great mystery surrounding the underlying value. What, if anything, stands behind it? This is a question with a clear and concise answer. In fact, it has a very definitive and believable answer—but it is easiest to understand with just a little bit of historical perspective.

At one time, G7 fiat currencies were backed by a reserve of physical Gold or the pooling or cross-ownership of other currencies that are backed by gold. That ended in 1971 when the Bretton Woods agreement was dissolved by president Richard Nixon in Ithaca NY.

Continue reading “Spell it Out: What, exactly, backs Bitcoin?” »

The BRICS Finance Committee is discussing a joint virtual currency for the five nation bloc of developing economies, according to the Russian Direct Investment Fund (RDIF) chief Kirill Dmitriev.

With Russia looking to cure its economy of a hydrocarbon addiction, a consortium of the country’s biggest banks is proposing that it explores a different kind of gas for the answer.

The lenders, including Sberbank PJSC and VTB Group, aren’t developing gas of the natural variety. It’s also the name of a virtual unit based on the blockchain of ethereum, the world’s biggest cryptocurrency after bitcoin. The banks are hoping that by adopting the technology they will make payments safer and faster, while thrusting Russia to the forefront of a trend that’s transforming the financial industry.

Yesterday was D-Day in the Bitcoin world: On Tuesday, Aug 1st 2017, Bitcoin Cash (BCH) forked off of Bitcoin (BTC). For anyone with control over their wallet and private keys, they now have an equal amount of BTC and BCH.

I have a Bitcoin wallet. Yet, I don’t have any new Bitcoin Cash—and I have no one to blame but myself. Will I ever get the BCH associated with my pre-fork coins? I think that it is likely, though certainly not assured. If not, it will still be my fault. After all, I had fair warning from the company that I trust as custodian of my assets.

A Cryptocurrency Mantra:
“Woe be the person who trusts decentralized cash to a custodian”

I trust Coinbase for good reason. I left my BTC in my Coinbase wallet and vault throughout the fork. Let me tell you how I view the risks of failing to remove my coins before August 1…

Continue reading “BCH: Did I throw away $$$$? Perhaps…” »