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Archive for the ‘finance’ category: Page 154

Aug 27, 2013

On the ‘Evil’ of Hoarding

Posted by in categories: bitcoin, economics, ethics, finance, policy

Originally posted as Part III of a four-part introductory series on Bitcoin on May 21, 2013 in the American Daily Herald. See the Bitcoin blog for all four articles.

With gold prices back in the $1,300-$1,400/oz range it is sometimes difficult explaining to non-gold bugs why owning physical gold is still a good long term strategy. Some define buying gold as ‘an investment’, and others as ‘a hedge against inflation’. I tend to look at it as an insurance policy against hyper-inflation or just simply as sound honest money. However, when describing a strategy of accumulating money (in gold form) in some far-away vault, only to be used in some end-of-the-world scenario, it goes without saying that an image of a miserly old man replaces my likeness in the eyes of my conversation partner. Few people stuff dollar bills in their mattress any more, but hoarding of gold and silver when these were de-facto money was not unusual. Commodity money, which tends to increase in purchasing power over time, is predisposed to this ‘problem’. When you ‘love money’ so much that you hold on to too much of it or for too long a time, then you are hoarding.

Can ‘hoarding’ be defined?

Robert LeFevre once joked that while he was courting his soon-to-be-wife, he was impressed when she told him how much she loved money. Yet after they were married, it turned out that she really didn’t love money. In fact, she would try to find any excuse to get rid of it… in her shopping sprees, of course! Apparently money is no different than other goods and services; you trade one for the other. You trade the lesser valued good for the more valued good. When you make a purchase, you make a choice. You value your money less than the good you are buying. Similarly, when you refrain from purchasing an item, the indication is that your money is of more value than the foregone good. This is the basic premise in anticipation of a transaction, that both sides benefit – otherwise the transaction would not take place.

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Aug 27, 2013

The Benefit of Specialization – Bitcoin as an Invented Currency

Posted by in categories: bitcoin, economics, engineering, finance

Originally posted as Part II of a four-part introductory series on Bitcoin on May 7, 2013 in the American Daily Herald. See the Bitcoin blog for all four articles.

The emergence of money and its importance in enabling trade between people has been well researched and documented in the literature of the Austrian School of economics – Theory of Money and Credit by Ludwig von Mises and Man, Economy and State by Murray N. Rothbard being prime examples. The contribution of the Austrian greats to the understanding of money and its origin made clear exactly what money is (e.g. the most marketable commodity), the different types of media that are employed in exchange between people (e.g. commodity money, credit money, fiat money and money substitutes) and a theoretical explanation for their origin (the Regression Theorem). The Austrian School has also given arguably the most convincing analysis of the relationship between the money type in use, the manner by which it is controlled and the business cycle – emphasizing the importance of sound money. But except for a few sparse outliers, what the Austrian School has yet to do is fully recognize Bitcoin as a valid scholarly and academic topic. With this article, I hope to contribute to its recognition.

Money’s characteristics

Money enabled people in early stages of civilization to go from direct exchange, with difficulties such as the double-coincidence of wants, to indirect exchange. This improved mechanism paved the way for facilitating man’s specialization in his tasks, thereby enabling division of labor within society since each specialized laborer was able to trade his goods for others indirectly with the use of a medium of exchange. Money has taken many forms but there are certain characteristics all forms should have. Aristotle, for instance provided the following four:

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Aug 27, 2013

Bitcoin and its Value

Posted by in categories: bitcoin, business, economics, finance

Originally posted as Part I of a four-part introductory series on Bitcoin on May 1, 2013 in the American Daily Herald. See the Bitcoin blog for all four articles.

The last couple of months proved a very exciting time for Bitcoin and its new owners, with values increasing from $30 to $260 within a month only to come crashing down in days. It went from virtual anonymity to virtual ubiquity and back again — the only constant being that it’s virtual. The dust has now settled and the talking heads have changed topic, and Bitcoin is slowly regaining strength. But does this mean we can finally, in a quiet and rational way, contemplate what this Bitcoin really is and where it has room to fit into our lives? The answer to that is no, because the concept of Bitcoin is so strange, unintuitive and foreign, no matter when you discuss it and with whom, it will lead to very divisive arguments. So I say now is as good a time as any to dive in and discuss it.

So what is Bitcoin, anyway?

Bitcoin is a virtual currency. It is a string of 1s and 0s, much like a lot of what we interact with in this day and age. It’s something new. It’s unique. It’s controversial. The detractors say it’s only useful for terrorists or drug lords who want to move money around undetected, which no doubt they do. But much like the Internet is so much more than pornography, so is Bitcoin so much more than drug money. E-mail liberated the letter from the postage stamp, Skype liberated telephone calls from crippling AT&T long-distance rates, Facebook liberated photos from the dusty photo album sitting on your shelf unopened. You can think of Bitcoin as what will liberate financial transactions from the grip of the financial institutions and the state.

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Jun 17, 2013

Help Conquer Death with Grants & Research Funding from LongeCity!

Posted by in categories: biological, finance, homo sapiens, life extension

LongeCity has been doing advocacy and research for indefinite life extension since 2002. With the Methuselah Foundation and the M-Prize’s rise in prominence and public popularity over the past few years, it is sometimes easy to forget the smaller-scale research initiatives implemented by other organizations.

LongeCity seeks to conquer the involuntary blight of death through advocacy and research. They award small grants to promising small-scale research initiatives focused on longevity. The time to be doing this is now, with the increasing popularity and public awareness of Citizen Science growing. The 2020 H+ Conference’s theme was The Rise of the Citizen Scientist. Open –Source and Bottom-Up organization have been hallmarks of the H+ and TechProg communities for a while now, and the rise of citizen science parallels this trend.

Anyone can have a great idea, and there are many low-hanging fruits that can provide immense value and reward to the field of life extension without necessitating large-scale research initiatives, expensive and highly-trained staff or costly laboratory equipment. These low-hanging fruit can provide just as much benefit as large scale ones – and, indeed, even have the potential to provide more benefit per unit of funding than large-scale ones. They don’t call them low-hanging fruit for nothing – they are, after all, potentially quite fruitful.


In the past LongeCity has raised funding by matching donations made by the community to fund a research project that used lasers to ablate (i.e. remove) cellular lipofuscin. LongeCity raised $8,000 dollars by the community which was then matched by up to $16,000 by SENS Founation. A video describing the process can be found here. In the end they raised over $18,000 towards this research! Recall that one of Aubrey’s strategies of SENS is to remove cellular lipofuscin via genetically engineered bacteria. Another small-scale research project funded by LongeCity involved mitochondrial uncoupling in nematodes. To see more about this research success, see here.

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Jun 3, 2013

Stephen L. Coles is DYING and NEEDS your Help!

Posted by in categories: biotech/medical, finance, life extension

*** PLEASE alert your friends—Our own continued health and longevity may depend on Steve continuing his work.***

This call for support was also posted by Ilia Stambler on the Longevity Alliance Website, and organized on YouCaring.com by John M. Adams. Eric Schulke has also helped tremendously in spreading the word about the Fundraiser.

Since founding the Los Angeles Gerontology Research Group in 1990, Dr. L. Stephen Coles M.D., Ph.D., has worked tirelessly to develop new ways to slow and ultimately reverse human aging.

Everyone active in the LA-GRG or the Worldwide GRG Discussion Group have benefited from his expertise. His continual reporting of news about the latest developments to the List and his work in areas such as gathering blood samples for a complete genome analysis of the oldest people in the world (supercentenarians, aged 110+) is ground breaking and far ahead of anything that has ever been accomplished before. Publication of this work is expected in collaboration with Stanford University before the end of the year. Other accomplishments are equally notable

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Apr 19, 2013

Bitcoin’s Dystopian Future

Posted by in categories: bitcoin, cybercrime/malcode, economics, ethics, finance, futurism, information science, lifeboat, open source, policy

I have seen the future of Bitcoin, and it is bleak.


The Promise of Bitcoin

If you were to peek into my bedroom at night (please don’t), there’s a good chance you would see my wife sleeping soundly while I stare at the ceiling, running thought experiments about where Bitcoin is going. Like many other people, I have come to the conclusion that distributed currencies like Bitcoin are going to eventually be recognized as the most important technological innovation of the decade, if not the century. It seems clear to me that the rise of distributed currencies presents the biggest (and riskiest) investment opportunity I am likely to see in my lifetime; perhaps in a thousand lifetimes. It is critically important to understand where Bitcoin is going, and I am determined to do so.

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Jan 3, 2013

Explaining Space Travel

Posted by in categories: asteroid/comet impacts, biological, defense, engineering, ethics, existential risks, finance, geopolitics, habitats, military, nuclear energy, nuclear weapons, space, transparency

I recently posted this on the only two other sites that will allow me to express my opinions;

I see the problem as one of self similarity; trying to go cheap being the downfall of all these schemes to work around human physiology.

When I first became interested in space travel several years ago I would comment on a couple blogs and find myself constantly arguing with private space proponents- and saying over and over again, “there is no cheap.” I was finally excommunicated from that bunch and banned from posting. They would start calling me an idiot and other insults and when I tried to return the favor the moderator would block my replies. The person who runs those two sites works for a firm promoting space tourism- go figure.

The problem is that while the aerospace industry made some money off the space program as an outgrowth of the military industrial complex, it soon became clear that spaceships are hard money- they have to work. The example of this is the outrage over the Apollo 1 fire and subsequent oversight of contractors- a practice which disappeared after Apollo and resulted in the Space Shuttle being such a poor design. A portion of the shuttle development money reportedly went under the table into the B-1 bomber program; how much we will never know. Swing wings are not easy to build which is why you do not see it anymore; cuts into profits.

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Dec 15, 2012

The Fabulous Spaceport Colorado (Part 1)

Posted by in categories: business, defense, engineering, finance, geopolitics, space

Last month a colleague of mine and I visited with Dennis Heap, Executive Director of the National Front Range Airport, at Watkins, CO, the location of the future Spaceport Colorado, and Colorado’s contribution to getting into space.

On April 19, 2012, Gov. John Hickenlooper signed a bill that limited a spaceflight entity’s liability for spaceflight participants and paved the way for Spaceport Colorado’s development. The Front Range Airport Authority situated on 3,900 acres will allocate 900 acres towards the development and construction of Spaceport Colorado and ancillary facilities. The next steps are the completion of an environmental assessment, and feasibility and marketing study. This is expected to be completed by end of 2013.

In the 1995–96 I was Head of Corporate Planning at Westport, a $1 billion seaport infrastructure project in Malaysia, where I created and deployed the 7-hour port strategy, streamlined financial controls, container handling and container tariffs, reducing incoming (wharf to gate) dwell time to zero hours compared to the then world’s largest container port, Port Authority of Singapore’s (PSA) 18-hours. Westport was able to grow substantially, to the point where, in 2011, Westport handled 6.4 million TEUs compared to PSA’s 29.9 million TEUs. (TEU = Twenty-foot Equivalent Units or half a container)

So it caught my attention when Dennis Heap said Spaceport Colorado will be 33 miles (53 km) east of the city of Denver and about 6 miles (10 km) south of Denver International Airport (DIA).

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Nov 13, 2012

Smithsonian National Air and Space Museum: No Lifeboats Please

Posted by in categories: defense, education, engineering, existential risks, finance, military, space

It was on a long-haul flight many months ago that I recalled a visit to the National Air and Space Museum [1] to a fellow passenger whom I struck up conversation with. Asking if I could recommend somewhere to visit in Washington DC, I recounted how I had spent an entire day amazing at the collection of historic aircraft and spacecraft on my only visit to that city fifteen years or so previous as a young adult — and as always a kid at heart.

Seeing the sheer scale of the F-1 engine for the Saturn 5 rocket first hand, stepping inside an Apollo command module identical to those used during the Apollo program, not to mention seeing full life-size replicas of the Lunar Roving Vehicle, an Apollo Lunar Module and for some reason what seemed most surreal to me… the Viking 1 Lander. This was enchantment.

However, for all the amazement that such a museum can provide, it is also a saddening reminder that what once was the forefront of human ambition and endeavor has now been largely resigned to history. NASA budgets are cut annually [2] whilst military expenditure takes ever more precedence. A planned six percent budget decrease in 2013 is the equivalent savings to three hours of the Iraq and Afghanistan Wars. Instead of reaching to explore outer-space we are encouraged to get excited about the equivalent billions [3] invested on science exploring the subatomic inner-space world. Meanwhile, we tend to forget that the ambitions of space exploration are not just to satisfy some wide-eyed childhood yearning to explore, but the serious and sobering prospect of needing to ensure that we as a species can eventually colonize to other worlds and ensure we are not counting down the days to our extinction on an ever-more-precarious planetary solitude.

In the face of such indifference, such concepts of lifeboats have become marginalized to what is perceived to be a realm solely for loons and dreamers, or ‘space cadets’ as we used to call them back in the days of school. The trillion dollar question really is what it takes to redirect all that military investment into science & exploration instead. It is down to credibility. Governments shy away from investing public funds when there is a lack of credibility.

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Oct 17, 2012

The Kline Directive: Theoretical-Empirical Relationship (Part 1)

Posted by in categories: business, cosmology, defense, economics, education, engineering, events, finance, human trajectories, particle physics, philosophy, physics, policy

To achieve interstellar travel, the Kline Directive instructs us to be bold, to explore what others have not, to seek what others will not, to change what others dare not. To extend the boundaries of our knowledge, to advocate new methods, techniques and research, to sponsor change not status quo, on 5 fronts:

1. Legal Standing. 2. Safety Awareness. 3. Economic Viability. 4. Theoretical-Empirical Relationship. 5. Technological Feasibility.

In Part 1 of this post I will explore Theoretical-Empirical Relationship. Not theoretical relationships, not empirical relationships but theoretical-empirical relationships. To do this let us remind ourselves what the late Prof. Morris Kline was getting at in his book Mathematics: The Loss of Certainty, that mathematics has become so sophisticated and so very successful that it can now be used to prove anything and everything, and therefore, the loss of certainty that mathematics will provide reasonability in guidance and correctness in answers to our questions in the sciences.

History of science shows that all three giants of science of their times, Robert Boyle, Isaac Newton & Christiaan Huygens believed that light traveled in aether medium, but by the end of the 19th century there was enough experimental evidence to show aether could not be a valid concept. The primary experiment that changed our understanding of aether was the Michelson–Morley experiment of 1887, which once and for all proved that aether did not have the correct properties as the medium in which light travels.

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