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Ryan Zinke’s new gig could be a disaster for the environment too

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Trump’s former secretary of the Interior, Ryan Zinke, departed Washington in January amid a barrage of ethics investigations. It didn’t take long, but Zinke has managed to find a new gig that sees him going from one controversial enterprise (the Trump administration) to another: He’s now a cryptocurrency guy (yes, really).

In an interview with Vice News, Zinke, sporting MAGA socks, made his post-government business debut as the managing director of Artillery One, a little-known blockchain and cryptocurrency investment company based out of North Carolina. He said he’s hoping to make the private crypto company “great again.”

But making something great again implies it was great at some point in the past.

It’s no secret that cryptocurrencies, of which Bitcoin is the first and most valuable, have a huge environmental toll. Most are maintained by a network of specialized computers that crunch mathematical puzzles, or “mine” to log transactions and make new coins. All those computations take a massive amount of energy: At its peak, Bitcoin was consuming the same amount of energy every year as nearly 7 million U.S. homes.

But the libertarian fantasy currency had a wild year in 2018, with more than $480 billion of value wiped off the entire market. With a lower financial worth, Bitcoin only demands the same amount of energy as powering 4 million US households. (Which, you know, is still not ideal.)

Somehow evaluating power-sucking cryptocurrencies in a swanky hotel in Switzerland, as he’s doing in the Vice News clip, seems all too appropriate for Zinke. After all, his legacy at the Interior Department is putting 13 million acres of public lands in private hands for dirty fuel development, rescinding environmental protections, shrinking national monuments, and … an extensive hat collection.

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Ryan Zinke’s new gig could be a disaster for the environment too

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Why Libertarians Are (Still) Plotting to Take Over New Hampshire

Mother Jones

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On February 18, hundreds of libertarians will flock to the Radisson Hotel in Manchester, New Hampshire, for the ninth annual Liberty Forum, a four-day conference featuring presentations on topics such as religious freedom, school choice, and “Anarchy: Dressing for Success.” A big draw will be Edward Snowden’s keynote speech, delivered over a live video stream. As the exiled NSA whistleblower speaks, conference goers may mull their own flight from government oppression—not to Russia, but to the haven of New Hampshire.

The Free State Project, which runs the Liberty Forum, has spent 15 years trying to recruit 20,000 libertarian-minded activists to take up residence in the Granite State. By accruing a critical mass of small-government advocates in a state with just 1.3 million people, the project seeks to exert substantial influence on state politics to create a utopia of social liberties and deregulated markets. Those who sign the Free State pledge promise to make the move to New Hampshire once 20,000 participants have signed up. Now, with 19,858 signers, the project’s organizers say they are finally recruiting the last of those volunteers.

However, the organizers readily admit they don’t know how many of the would-be Free Staters will actually come to New Hampshire. “That is the million-dollar question,” says Free State Project president Carla Gericke. “It’s all speculative at this stage.” The most fervent believers are likely already in the state. Free State Project founder Jason Sorens says he expects around a third of the remaining signers to move. The group plans to track down those who may have forgotten and nudge them with direct mail, phone calls, and email reminders about their commitment.

Sorens first published his idea for the Free State Project in 2001, when he was a PhD student in Yale’s political science department. In an article in the Libertarian Enterprise webzine, Soren fantasized about a place where state and local budgets would be slashed and federal highway funds would be rejected. By 2003, a community of several thousand Free State Project pledgers had coalesced online and were debating the relative merits of colonizing Idaho, Wyoming, or Alaska. Then a delegation met with then-New Hampshire Gov. Craig Benson, a Republican, who told them, “Come on up. We’d love to have you.”

Since then, 1,909 early movers have settled in New Hampshire, according to organizers. They have started a church, installed Bitcoin ATMs, and protested against an Uber ban. One Free Stater became a school board chairwoman, then used tax money to pay private school tuition for kids in her district. Free Staters in Grafton tried to declare their no-stoplight town a United Nations-free zone. In Keene, libertarian transplants upset old-timers by videotaping and challenging parking officers enforcing “the king’s tariff.”

Influencing state policy remains a major goal for many participants. According to the project, it’s gotten more than 40 “pro-liberty” legislators elected. At least 18 early movers currently hold seats in the State House. The New Hampshire Liberty Alliance, a tea party-aligned nonprofit Soren says was “founded by native libertarians in expectation that the Free State Project would be coming,” has become a force in state politics.

Still, it only became obvious recently that the project would hit its 20,000-pledge trigger. Last fall, after years of standing around conferences with clipboards and taking out advertisements in Reason magazine, the project’s organizers turned to Facebook. More than 2,500 new participants signed on during a four-month ad campaign targeting users who “liked” pages for Bitcoin, “voluntarism,” and George Carlin. In recent weeks, the group has ramped up its Facebook ad spending to $500 a day. Nearly 20 early movers have been arriving in New Hampshire each month—even in winter. “I really hope we can build something that’s historic,” Gericke says. “People are coming.”

That’s good news for Mark Warden, owner and lead agent at Porcupine Real Estate in Manchester, which does around 90 percent of its business with early movers. (Libertarians have adopted the porcupine, a peaceful creature that defends itself when attacked, as their mascot.) “A lot of my clients want to be self-sufficient—whether that’s living off the grid and growing their own food, wanting to shoot and hunt on their own property, or being able tor raise pigs and chickens without zoning laws interfering,” says Warden, who shows his properties with a gun on his hip. “We speak the same language.”

Warden also offers advice to aspiring politicians, setting them up in towns where they would have a chance of winning over voters. Warden is a former state legislator whose old campaign website touts an A+ rating from the Koch-backed Americans for Prosperity. He once argued for decriminalizing simple assault during a committee hearing, later apologizing for claiming that some people may “like being in abusive relationships”.

Some future Free Staters say they’re drawn by the free-market business opportunities. Nelson Aquino, a Boston-based sales executive, plans to move in a matter of weeks. Aquino says he’s looking for a community that understands his opposition to police violence and torture, and he also plans to invest: “The people who are willing to make that type of pledge are people who believe in personal responsibility, people who believe in contracts, people who follow through on their word,” he says. “Those are the people I want to do business with.”

John Bush, who tried to start a Texas version of the project called Lone Star Libertopia, intends to open a New Hampshire branch of his Austin-based bookstore, which sells volumes on homesteading and crypto-anarchism alongside nutritional supplements and water filtration systems. “We intend to build some wealth—properties and wealth,” Bush says. “The early movers are what making it all so sexy and attractive.”

Nineteen-year-old Bradley Hunt, who signed the pledge about a year ago, says he was was bummed out when he heard the project was reaching its target—he’d wanted to be an early mover. He’s unhappy living in Michigan but doesn’t have enough savings to pick up and go. In the meantime, he volunteers for the local Libertarian Party, joins jury nullification protests, and tries to boycott the US dollar. He envisions himself and his girlfriend buying a little property in the northern end of New Hampshire in two or three years.

“The only thing I can see stopping me from moving is if I go to jail for my activism or if I get in a car accident or die or something,” he says. In the Free State, “I would have to start over again—but I’m okay with that.”

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Why Libertarians Are (Still) Plotting to Take Over New Hampshire

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Watch John Oliver Explain Why the NCAA Should Stop Exploiting Student Athletes and Pay Up

Mother Jones

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The National Collegiate Athletic Association reaps in nearly $1 billion a year in revenue, thanks to an annual onslaught of glitzy advertising campaigns and television deals. Coaches and top executives are paid in the millions, but student athletes return to their dorm rooms with nothing but an education for compensation, “the only currency more difficult to spent than Bitcoin,” John Oliver noted last night.

With the start of March Madness on Tuesday, “Last Week Tonight” takes on this very issue, slamming the “illegal sweatshop” nature of the NCAA’s non-pay scale. “There is nothing inherently wrong with a sporting tournament making huge amounts of money,” Oliver said. “But there is something slightly troubling about a billion-dollar sports enterprise where the athletes are not paid a penny, because they aren’t.”

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Watch John Oliver Explain Why the NCAA Should Stop Exploiting Student Athletes and Pay Up

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The Great Paradox of Bitcoin: If It Ever Succeeds, It’s Doomed

Mother Jones

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Will Bitcoin ever become a major competitor to the world’s more conventional currencies? It certainly has some advantages over existing payment networks, thanks partly to its technical structure and partly to the fact that it’s largely free of regulation. But Henry Farrell argues that its freedom from regulation is a chimera:

Up to this point, regulators have largely tolerated Bitcoin as a curiosity and experiment….But if Bitcoin were ever to threaten to become a truly decentralized payments network, owned by no one, and with no one e.g. capable of implementing Know Your Customer rules, regulators would know very well what to do with it. They’d introduce regulatory guidances and pass laws to freeze it off from the regular financial system. Very possibly, Bitcoin could still survive at the margins (as the Hawala system has survived). However, it would be isolated, and in no position to threaten Visa or Mastercard, let alone the underlying payment and messaging services that really underpin the world financial system.

If Tim Lee and other Bitcoin fans want to make the case that Bitcoin can become a major payment network, they need to do one of two things. First, they could show that the U.S. and other major states would not feel threatened by a well-established payment system that they couldn’t control. Second, they could show that a Bitcoin financial network would survive the opposition of hostile states that have enormous control over the actually-existing financial systems that Bitcoin needs to connect to, as well as regulators, police, etc. I don’t see any very plausible arguments that would support either claim. It’s perfectly possible that the underlying technologies of Bitcoin (which help solve some interesting problems of trust and exchange) can be deployed to other valuable uses. But Bitcoin is doomed as a payments network — the very point at which it looks as though it is likely to be widely deployed is the point at which governments, like that of the United States, will crack down on it.

This is almost certainly correct, and the interesting question, I think, is whether Bitcoin and its ilk can figure out ways to operate on a large scale without being effectively shut down by real-world governments. At the moment, I don’t see any way they can do that, but it’s not impossible that this will change in the future.

The evolution of the internet itself provides conflicting guidance as an analogy. Generally speaking, national governments have had considerable difficulty regulating internet content. It’s just too distributed and fast moving. So perhaps digital payment networks similar to Bitcoin will eventually thrive because they pose similar problems to would-be regulators. Like kudzu, they’ll simply be impossible to contain.

On the other hand, countries like China have shown that internet content can be regulated. It merely requires sufficient motivation. And even less authoritarian governments have managed to throw a lot of sand in the gears when they rouse themselves to action. Given that regulating commerce and money is easier than regulating content, this bodes ill for the future of Bitcoin. There’s not much question that it can harried into uselessness if national governments decide to do it.

Still, there are lots of currencies in the world, and it’s possible that a medium-scale version of Bitcoin could stay alive by remaining fairly modest in its connection to any one currency, but fairly large when all of its connections to all the world’s currencies are added up. This might cause problems of coordinated action that would end up defeating national regulators, especially if there were dozens or hundreds of different digital currencies to deal with. Maybe. Possibly. I’m not sure if the arithmetic here would ever add up to anything significant, but I’m also not sure it’s impossible.

But if I had to put money on it? I’d say Bitcoin is doomed in the medium-term future. Farrell is right: it can be a bit of a curiosity, but if it ever enjoys wider success, that very success will kill it.

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The Great Paradox of Bitcoin: If It Ever Succeeds, It’s Doomed

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Dorian Nakamoto Hires Lawyer, Denies Any Bitcoin Connection

Mother Jones

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Just a quick update on Dorian Satoshi Nakamoto of Temple City, the man Newsweek says is the inventor of Bitcoin. He has hired a lawyer and released a statement:

In the statement, Nakamoto says: “I did not create, invent or otherwise work on Bitcoin. I unconditionally deny the Newsweek report….My background is in engineering. I also have the ability to program. My most recent job was as an electrical engineer troubleshooting air traffic control equipment for the FAA. I have no knowledge of nor have I ever worked on cryptography, peer to peer systems, or alternative currencies.”

The Newsweek story also notes what appears to be a strange gap in his resume over the last decade, the time during which the bitcoin code was written and released. Nakamoto explains:

“I have not been able to find steady work as an engineer or programmer for ten years. I have worked as a laborer, polltaker, and substitute teacher. I discontinued my internet service in 2013 due to severe financial distress. I am trying to recover from prostate surgery in October 2012 and a stroke I suffered in October of 2013. My prospects for gainful employment has been harmed because of Newsweek’s article.”

I’ll confess that I’m surprised by how this story has progressed. The fact that the “Satoshi Nakamoto” who invented Bitcoin managed to stay anonymous for several years isn’t too remarkable. Trying to identify a single person out of 7 billion is hard. But once a particular person was identified, I expected that the online community would turn its talents on the guy like a laser beam, fairly quickly establishing without doubt whether he is or isn’t the right guy. But that hasn’t really happened. We still don’t know for sure.

Along with his unconditional statement, though, the fact that Dorian Satoshi Nakamoto hasn’t been conclusively identified as the Bitcoin founder is bad news for Newsweek. If he were really the guy, there would probably be a whole lot more evidence today than there was two weeks ago.

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Dorian Nakamoto Hires Lawyer, Denies Any Bitcoin Connection

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Did Newsweek Dox the Wrong Satoshi Nakamoto?

Mother Jones

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Is Dorian Satoshi Nakamoto of Temple City, California, the same “Satoshi Nakamoto” who invented Bitcoin? Newsweek’s Leah McGrath Goodman says he is in a cover story here, and Felix Salmon does a good job of running through the evidence here. Matt Yglesias is skeptical:

Here’s the question of Newsweek’s Bitcoin “scoop,” as I understand it—is the fact that a person is named “Satoshi Nakamoto” good evidence that the person in question is the originator of Bitcoin? If it is, then all of the other evidence regarding this particular Satoshi Nakamoto is telling….But absent the name, there is very little here.

I don’t agree. The key evidence is this conversation that Goodman had with Nakamoto in front of his home:

Tacitly acknowledging his role in the Bitcoin project, he looks down, staring at the pavement and categorically refuses to answer questions.

“I am no longer involved in that and I cannot discuss it,” he says, dismissing all further queries with a swat of his left hand. “It’s been turned over to other people. They are in charge of it now. I no longer have any connection.”

Nakamoto says he was misunderstood. His English isn’t great, and he was just referring to no longer being an engineer. Goodman, however, says this is nonsense. “I stand completely by my exchange with Mr. Nakamoto. There was no confusion whatsoever about the context of our conversation — and his acknowledgment of his involvement in bitcoin.”

In any case, this is the key piece of evidence. If Goodman is right, then Nakamoto is now covering up after making a momentary slip. But if Goodman stretched the quote a bit to make it sound cleaner than it was in real life, then Nakamoto is very likely in the clear.

Last night there was some chatter on Twitter about whether Goodman’s story sounded right. She made a mistake identifying LA County sheriff’s deputies as “police officers from the Temple City, Calif., sheriff’s department,” for example, and some of her quotes seem a little too good to be true. Personally, I wasn’t persuaded. The former is a minor error, and I didn’t find the quotes all that hard to believe. What’s more, Goodman was very transparent about how she tracked down this story and what her sources were. There’s nothing obscure about any of it. It’s a very, very public story and, thanks to Goodman’s transparency, one that’s pretty easy to check. If Goodman made any of it up, she sure chose a very spectacular way to commit career suicide.

All that said, Karl Smith has a piece at FT Alphaville that compares some of Dorian Nakamoto’s writing to that of the Nakamoto who wrote the original Bitcoin proposal. He’s pretty persuasive that they don’t seem to match. This isn’t a smoking gun or anything, but it definitely gives us fresh reason to be skeptical.

In any case, tracking down the real identity of “Satoshi Nakamoto” is hard, but I suspect that verifying whether Dorian Satoshi Nakamoto of Temple City is the same guy isn’t. One way or another, I have a feeling that someone is going to clear this up definitively within a week or two. Maybe sooner.

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Did Newsweek Dox the Wrong Satoshi Nakamoto?

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