Ep. 34 The Changing of the Narrative

In this episode of The Unhashed Podcast: Joseph Stiglitz says we should shut all the cryptocurrencies down. Is Tron proving just how possible that may be in some cases? US Congressmen are now actually urging their colleagues to take the threat that Bitcoin poses to their power seriously. One has to wonder: if they can’t beat us, how long until they join us? And...Blockstream has announced that Liquid Securities is ready to go live. Is this just a ruse to take market the shitcoin market share away from Ethereum or is there something more to the platform?

Weekly News Wrap Up:

  1. Bryan and Colin’s Consensus 2019 Overview

  2. Fidelity Investments, one of the largest investment brokers in the US, began a custody service to store Bitcoin earlier this year.  Within a few weeks they will buy and sell the Bitcoin for institutional customers according to a person familiar with the matter.

  3. Nobel-Prize winning economist Joseph Stiglitz says “I actually think we should shut down the cryptocurrencies.” He worries that they enable illicit activity by making money transactions less transparent. Still, he sees the value in digital payments systems and supports electronic use of government-backed currencies like the dollar.

    “I’ve been a great advocate of moving to an electronic payments mechanism. There are a lot of efficiencies. I think we can actually have a better regulated economy if we had all the data in real time, knowing what people are spending,”

  4. U.S. Democrat Congressman Brad Sherman has urged his colleagues to consider banning bitcoin and cryptocurrencies due to the threat they pose to U.S. international financial power, saying bitcoin needs to be "[nipped] in the bud."  He went on to say "An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions. Clearing through the New York Fed is critical for major oil and other transactions. It is the announced purpose of the supporters of cryptocurrency to take that power away from us, to put us in a position where the most significant sanctions we have against Iran, for example, would become irrelevant."

  5. On the final day of consensus 2019, Blockstream announced that Liquid Securities, a platform for issuing and managing security tokens on its Liquid sidechain, is ready to go live. This platform will provide Liquid and its users with its first product to issue digital assets, a foundational milestone for bringing tokenization to the Bitcoin network. Allen Piscitello, director of product management at Blockstream, told Bitcoin Magazine, ““This is big for Liquid, to move from something that is used by exchanges toward a more advanced financial network.” Piscitello went on to say that one of the benefits of Liquid Securities includes having an asset that is both verifiable and auditable but also private. When issuing a token on Liquid, a company can keep specific details (like supply, allocation, etc.) private while allowing a trusted third party to audit operations. This means that enterprises don’t have to trade off privacy for transparency to stay compliant with regulations, all while leveraging “one of the most secure blockchain networks in the world,”  

  6. Minnesota Congressional Representative Tom Emmer has announced plans to reintroduce a bill meant to “provide temporary safe harbor for the tax treatment of hard forks of convertible virtual currency in the absence of administrative guidance.” In most cases, taxing agencies see the forked asset as a form of undeclared income. Emmer wants to provide better guidance on how to handle these assets and his first attempt at doing so came in September of 2018 with his first bill, which was immediately transferred over to the jurisdiction of the House Committee on Ways and Means. Having effectively died in committee with no significant updates since, Emmer has now declared that the updated version of the bill will differ in several ways from the text of the original, possibly including protections for other means of crypto asset holding such as airdrops.

  7. The founder of decentralized crypto exchange Bisq has stepped away from all roles and activities, allowing the exchange’s DAO (decentralized autonomous organization) to oversee its operations.

    Manfred Karrer released the departure announcement on Bisq’s official site on May 16, 2019, claiming that the exchange is “entering a new phase” and that the DAO “is now the infrastructure which enables that Bisq is managed by its stakeholders and contributors.” Noting that Satoshi’s departure from involvement in Bitcoin was critical to that project’s success, Karrer stated that Bisq will now be entirely autonomous.

Shout Outs:

Colin: 60 Minutes aired a 13 minute segment called Bitcoins Wild Ride.

Bryan: Dropbit wallet

Ruben: Breaking Bitcoin

One Final Note:

Make sure you are storing your crypto on something secure like a Ledger and backing it up on something sturdy like a Billfodl. If you buy these items through the links above, we do take a cut of the profits but it also helps support the show - a win/win for all involved.

Colin aulds