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Asset Backed Cryptocurrency Warcoin Seeks to Ease Volatility Woes

A San Francisco startup has announced that it has created a new digital currency that will solve the pesky problem of bitcoin’s volatility. Dubbed warcoin, the digital currency will be backed by the military industrial complex—a stable and even growing industry that its creators argue provides real value to the cryptocurrency.

“We wanted to make a coin that utilized this fledgling blockchain technology but was unburdened by uncertainty in the economy. If there’s one industry that’s going strong, it’s the trade of arms to military insurgencies all around the world and the rebuilding of other countries torn apart by revolutions. I mean, we’re not going to stop aiding brown people any time soon, so why not?” exclaimed founder, investor, and former child star Thad Stab.

Warcoin would operate on the same blockchain technology as bitcoin, but as we’ve seen in the last few years, bitcoin’s volatility has some investors worried. A 10,000% increase in one year is dangerous not only to those concerned with stability, but also to those trying to keep the dollar fueled economy afloat.

With some countries eyeing currencies to use other than the petrodollar, global skepticism could spell bad news for the US, which relies on people using its currency to prop up a failing economy and hide the massive debt accrued from decades of borrowing for humanitarian causes.

Co-founder Sieve Farthings had some insights to add about warcoin’s philosophic potential:

“Warcoin seemed like the logical next step. We can’t have people rushing into new digital currencies that could rob them of what little wealth they have accumulated. There needs to be stability, and right now there are few things more stable than our military’s economic and physical grasp over noncompliant countries. Warcoin, like bitcoin, is about ideology too. Do you want to support a currency that may siphon funds from the greatest world power to have ever existed? One that could result in the deaths of thousands of innocents who were unable to get our assistance? We’re changing lives for people all around the world by bringing them a heaping helping of democracy in an explosive package. I think we all know the name for people who would wish to prevent us from saving these victims of tyranny—terrorists.”

Libertarians and anarchists have hailed cryptocurrencies as a way to hide their wealth and transactions from government agencies, but Farthings and others view these “fringe idealists” as damaging to the ethics and funding of humanitarian military actions.

It is rumored that Raytheon has quietly partnered with Stab and Farthings to provide more tangible assets to back warcoin despite their earlier support of bitcoin. You will also be able to exchange warcoin for US dollars at FinCEN compliant exchanges for a reasonable fee. Stab said he realizes that carrying cash is becoming a thing of the past.

“People want cool codes they can scan on their phones to send money and paper dollars are so 1900’s. Why not be able to turn dollars into digits you can transfer on your phone and have the stability associated with the globalization of altruistic military actions? Peace of mind can come from knowing your digital currency will always retain its value as long as the US is engaged in carrying out these special missions.”

Warcoin’s founders are also building relationships with banks like JP Morgan Chase and Bank of America, who are notorious for their efforts to bring transparency and efficiency to banking. Their charitable efforts to work with homeowners hit hard after the housing crisis are fresh in the minds of Americans and Stab and Farthing think the familiarity of the banks will give consumers comfort. By fusing banks with exchanges, people may feel more safe as reports of mismanaged cryptocurrency exchanges continue to surface.

“The experience and reputations of these banks make them a perfect fit for integrating currency exchange functions that can support warcoin. If we don’t get these major players involved in this exciting new technology, average people are going to be suspicious and it may never catch on. It doesn’t have to be that way.” Farthings reassured reporters.

Digitizing the dollar into a currency backed by the most robust part of the economy could be very lucrative for struggling banks, venture capitalists, and weapons manufacturers who were unjustly harmed after the financial crisis and scaling back of forces in Iraq and Afghanistan. With the recent transfer of 300 US advisors to Iraq, the perfect storm may be brewing for this festive new digital currency.

 
*Thanks to the Wall Street Journal for inspiring this piece.

Original content by Meghan, copyleft, tips welcome




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Thoughts on Altcoins

I want to start this by saying I am not a cryptocurrency genius and neither have ties to any altcoin group who would pay me to write this opinion. I am also open to changing my mind as more evidence comes out, and have a lot of respect for more knowledgeable people like Erik Voorhees who have written on the subject. That being said, I am a huge fan of the idea of altcoins. While I don’t have a specific preference and the subtle differences between them are a bit above my technical understanding at this moment, I think altcoins could provide valuable competition and encourage innovation in the market of cryptocurrencies.

My biggest concern is that a weakness could be exposed in bitcoin as technology improves, and also I have concerns about the security in regards to people being able to protect their wallets. The fact that taking the correct privacy precautions (cold storage for example) are intimidating to your average person is a valid concern. Don’t get me wrong—I love bitcoin and it has changed my life and will change the world—but with the trajectory cryptocurrency in general is on I have to expect that something better will come along that can solve some of the security issues around bitcoin. It is the nature of technology to continue to move forward in large leaps, and while we have an excellent model for a cryptocurrency in bitcoin, like all technology it has the potential to become obsolete when something better comes along. This improvement is great news for inventors and cryptocurrency enthusiasts, especially if you believe that a freed market can rise to the demand of its participants. We are seeing a massive experiment taking place with free markets and cryptocurrencies and if we are correct that free markets can efficiently provide for the needs of the people then we should be welcoming of new cryptocurrencies that offer solutions to the problems of bitcoin.

Diversification is also a necessary feature that altcoins offer. Just like with any investment, you don’t want all your eggs in one basket. Since we are still in an experimental stage with cryptocurrencies, there is always the risk of being ripped off, and as Voorhees astutely noted some current altcoins could be the penny stocks of cryptocurrency. Some have appeared to be pump and dump schemes, and I also agree that we should be skeptical about any new idea or coin that comes up until it can be proven that they offer noticeable advantages to others. But for people who think it’s too late to get into bitcoin because they fear they might lose money (despite its fractional capabilities), altcoins provide an alternative. The success one could have increases if you study them and can identify flaws or features. If we believe that cryptocurrencies are the future, there will be multiple ones just like there are multiple currencies today. I hope bitcoin isn’t the end all be all of cryptocurrencies, plus I’d hate to see it become a monopoly in the cryptocurrency world. The monopolic nature of the blood dollar is one of the many reasons I don’t like it, so I’d like to see many options at work. Of course, it is the most widely accepted coin and is a trailblazer in the industry, but its status as a trailblazer means improved altcoins can come it its wake and offer more diversification.

I’m not a purist when it comes to any currency and while I will support bitcoin in its current rightful place at the top, I can’t wait to see how altcoins can improve the nature of private transactions and even aid in charity efforts. I have yet to see any good arguments against competition and acceptance of multiple cryptocurrencies, and while many make the valid claim that bitcoin is the de facto cryptocurrency for businesses and nonprofits, we are seeing some altcoins being accepted at charities like Sean’s Outpost. I believe this number will grow, and the diversification aspect of being invested in multiple cryptocurrencies means people will have more options for which coins they use to support their favorite charity or business. Maybe you want to hold on to bitcoin or use it for certain transactions, and maybe you don’t feel as attached to say litecoin or feathercoin so you want to use those more frequently. The future is filled with endless possibilities when it comes to cryptocurrencies, so I won’t rule out altcoins as inventions that can have a major impact on how we transact.

Original content by Meghan, copyleft, tips welcome

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Bitcoin and Other Altcoins: A Solution for Millennials

Gold and silver have historically been used as money and as a way to retain the purchasing power of fiat currency. As we as a population face such issues as mounting debt and endless warfare, one oft-reviled generation is really getting a sour deal: the millennials. Those narcissistic, lazy, good-for-nothing louts who played by all the rules only to realize the rules had been changed or were never for their benefit in the first place. Although historical ways of protecting our wealth are still applicable, I want to suggest an alternative for a generation that must already eschew “wisdom” passed onto us by our elders who caused this mess we’re stuck with, if only for survival’s sake.

Millennials are routinely criticized by the older generations who raised them to be who they are. We are told to respect our elders; the ones who ignorantly send Snopes debunked chain emails complaining about how congress needs to do this or that ineffective measure to delay nonexistent problems, the ones who voted into power people who wish to keep everyone enslaved, the ones who support the wars that their social security payments were squandered on all the while expecting to be paid as if those monies are stored in a vault somewhere, the ones who will be dead before the brunt of their actions are fully actualized, the ones millennials are keeping alive on the backs of their labor. Those elders.

Propaganda hasn't aged a bit, however.
Propaganda hasn’t aged a bit, however.

Mainstream financial experts often claim that millennials aren’t saving enough or planning for retirement that we rightly assume will not happen, and so they urge us into getting the same instruments that worked for our parents: savings accounts, Roth IRAs, 401Ks, the stock market, etc. That’s great if you don’t mind inflation eating away at your savings since interest rates are frozen at zero or if you still trust some banking entity to play fair when you need access to your funds before a certain age or if you even have a substantial amount of money to put anywhere in the first place. For people living paycheck to paycheck with the jobs they have or still living with their parents as they search, these options are laughable. After the financial collapse, one lesson surely everyone learned was that no outside entities are going to protect your hard earned money and there needs to be an evolution of how we store our wealth.

While special snowflake syndrome is a problem among millennials (and pretty much humans in general), it’s difficult to claim ignorance on the fact that they and younger generations will suffer the most directly from the reckless actions of older generations. We have learned the lesson that hard work and a college degree don’t ensure success, and that breaking the rules can pay greater dividends than following them. A return to self-sufficiency is in order when it comes to finding jobs now, and shifting our consciousness to adapt to an increasingly unstable world is not only practical but a necessity to merely survive. Survival, at this time with all things considered, is all millennials can hope for—there’s no retirement in our futures, no social security to look forward to, no payoff for participating in politics, no end to crushing debt. While our elders have thrived and relished in their own entitlement we foot the bill and receive nothing but broken systems and empty promises in return. Woe is we, but we are not without some solutions.

If we need a different philosophical approach to dealing with the problems we face, we also need a different approach to storing and retaining what little wealth we can accumulate. That’s where crypto-currencies come in. With the advent of Bitcoin, Litecoin, Feathercoin, and several other alternative currencies making their way into the financial zeitgeist, we have more opportunities than ever to take back control of our money.

You're welcome, baby boomers, et.al.
You’re welcome, baby boomers, et.al.

Crypto-currencies appear to be one of the better choices along with precious metals, mainly silver since gold even at a low today ($1317.00 per troy ounce) is way out of the price range for us poor people. Silver, while much more affordable at around $22.00 an ounce, can sometimes be difficult to store and safes are expensive. While I still recommend buying silver when you can afford it, we live in swiftly changing times and can use the expanding technology to our benefit.

You can buy fractions of Bitcoin, Litecoin, or other altcoins to fit your budget, transactions cannot be taken back, and you control the access to your currency via a virtual wallet on your phone or personal computer that is easy to protect the privacy of through encryption. There are no banks that can hold your money hostage during a crisis, and you can spend them at a variety of places. While some may make the valid argument that your wallet could be hacked and your coins stolen, the same argument is applicable to banks and consider that inflation itself is just slow theft over long periods of time. Again, that’s what privacy protections are for, and luckily these are easy precautions to take.

Since I started writing this article yesterday, the notorious Silk Road has been closed down and its owner imprisoned, and while some view this as a danger to crypto-currencies, at the moment it appears to be an issue of personal mistakes on behalf of Ross Ulbricht aka Dread Pirate Roberts. While the raid made the prices fluctuate, I still believe there is utility for Bitcoin as a way to buy perfectly benign goods and services without government intrusion. The Silk Road raid is a set-back for Silk Road users, but not the greater alternative currency community, and as technology improves and we face greater economic uncertainty, demand for better alternatives to the war dollar can only increase.

We live in the perfect time to take advantage of this opportunity to relinquish the chains imposed on us by government institutions, older generations, and even our own psyches.  While hindsight is 20/20 when assessing how we got to the point we are at, looking ahead to the future is crucial for our own security. The resources for building a knowledge base on the subject of crypto-currencies are plentiful, as well. Weusecoins.com is a great place to start your Bitcoin journey, and others much more knowledgeable than I have written extensively on the topic. More altcoins are coming out and providing competition to Bitcoin, and this is also great news as it broadens the options people have for diversification.

There are many options of altcoins to choose from.
There are many options of altcoins to choose from.

Crypto-currencies aren’t going anywhere, relying on conventional wisdom from our elders and mainstream gurus have gotten us nowhere but more burdened with debt. To quote Assata Shakur, “No one is going to give you the education you need to overthrow them. Nobody is going to teach you your true history, teach you your true heroes, if they know that that knowledge will help set you free.” It’s about time the millennials (and others who are struggling) find more effective ways of getting their freedom from a dreary future orchestrated by former entitled generations.

Original content by Meghan, copyleft, tips welcome