I talked to my local paper about accepting Bitcoin (Delaware)
Howdy folks, my name is Gentle Jones and I am an underground Hip-Hop artist from Delaware. I recently started accepting Bitcoin for records and our local Gannet newspaper (The News Journal) included me in an interesting article about the currency. Thought you all might enjoy seeing how Bitcoin is taking hold in Delaware. You may have already read our Senators supporting it in the news lately. http://www.delawareonline.com/article/20140113/BUSINESS08/301130020 Speed and lower costs give Bitcoin appeal with users Written by Wade Malcolm The News Journal Jan. 13, 2014 delawareonline.com A local underground hip-hop artist. A Libertarian business owner who predicts the collapse of the dollar and a worldwide economic meltdown. A United States senator from Delaware. What do these three people have in common? They’re all interested in Bitcoin. For the uninitiated, Bitcoin is the so-called virtual or crypto currency that has gained in popularity and value since it was created in 2009, particularly in the past year. It’s used widely as a faster, cheaper way to conduct digital transactions for smaller online retailers. And it has gained in mainstream acceptance, with recent announcements that home furnishing products seller Overstock.com and gaming company Zynga will start accepting Bitcoin. But it’s also been linked to money laundering and other illegal activity, including the online black market known as Silk Road. Throughout 2013, U.S. Sen. Tom Carper, D-Del., held a series of hearings on virtual currency in his position as chairman of the Committee on Homeland Security and Governmental Affairs. His overall impression after listening to the testimony: Government might need to take an active role to prevent the ways Bitcoin can be abused, like any currency, but it has great potential to benefit society. And it would be wrong to have a government clampdown squash it, he said. “It lowers the cost of transactions in some cases, and in some cases, it allows people that live in different countries to be able to trade with one another more easily,” he said. “One aspect of facilitating trade is financing trade, and it will be interesting to see what role virtual currency can play in facilitating trade between nations. We never would have thought we could use these tiny cellphones to do so many things.” Like Carper, many have come to see Bitcoin as the next evolution of technology –a tool to eliminate an inefficiency in the marketplace. Some economists say the currency innovation also could threaten the dominance in online transaction of a key Delaware industry: credit cards. Card companies might charge 2 percent or 3 percent to process a larger online transaction, and an even higher flat fee for smaller transactions. Bitcoin fees are miniscule by comparison, around 0.02 percent. Using a checking account is cheaper, but also slower, since the payment must go through a clearinghouse that serves as an intermediary between financial institutions. “In 2014, should it take two or three days to send money from me to you when I’m a Bank of America customer and you’re a Chase customer? I would say no. Maybe if this was 1998 that would be OK,” said Susan Athey, a professor of economics at Stanford’s Graduate School of Business. Bitcoin “will force the banks to learn how to move money more efficiently between accounts. But there’s lots of ways this could play out that are very disruptive to banks and credit cards.” Local financial institutions have been hard at work developing their own systems for mobile payments. The Delaware card business of JPMorgan Chase and Wilmington-based savings bank Capital One 360 have platforms for transferring money between bank account, but they still take more than a day if the money is going to an outside institution. Wilmington-based Barclaycard US has piloted a mobile payment app called bPay that being tested in business through Wilmington and Newark. Skeptics of Bitcoin point out that the currency’s whole infrastructure –essentially crowd-sourced and unsupported by any government –could collapse some day and become worthless. Bitcoin supporters counter that such risks exist with any monetary system and in fact many currencies have collapsed throughout history. If you ask Doug Campbell, Bitcoin is more likely to outlive the dollar due to the escalating nation debt. A staunch Libertarian who ran for Delaware attorney general in 2010, Campbell holds about 20 different crypto currencies and has used Bitcoin to invest in silver. “I know the dollar is going to be dead, so the only question for me is what’s going to replace it,” Campbell said. “It is the free market, man. And Bitcoin is the free market at work.” Campbell is a believer in Bitcoin because it’s protected against inflation, he said. About 21 million Bitcoin exist, and no more will ever be made. Others are less philosophical in their use of the currency. Local underground rapper and singer Bill “Gentle Jones” Ferrell started accepting Bitcoin for sales of music and merchandise on his website. ( www.coingig.com/gentlejones ) The decision lowered his costs, and there’s something appealing about taking a new-wave payment system to sell vinyl records. “Maybe it is funny that I’m selling an analog technology with a digital currency. But it all comes down to what do people value,” he said. “For any currency, whether it’s beads or clam shells or coins or paper, all you need is two people that agree it has value and do business with it. It’s all an abstraction.” WHAT IS BITCOIN? Bitcoin is considered a “virtual” or “crypto” currency that no government or monetary authority has approved, regulated or guaranteed. It was created by an anonymous computer programmer –or programmers –known only as Satoshi Nakamoto. Essentially, a Bitcoin is an open-source string of computer code that is unique to every unit of Bitcoin. This ensures no one can counterfeit or steal Bitcoin. The currency allows users to conduct online transactions faster and with lower fees compared with using a checking account or credit card. Once someone receives a Bitcoin, he or she easily can exchange it for U.S. dollars or other currency.
The Past, Present and Future of Bitcoin THE PANEL: Susan Athey The Economics of Technology Professor at Stanford Graduate School of Business Avish Bhama CEO Vaurum Adam Draper CEO Boost Christian Martin CEO Tera Exchange Dan Morehead CEO Pantera Capital Chairman Bitstamp Charlie Songhurst FoundePartner Katana Capital Moderator: Anthony Effinger Bloomberg, Markets Magazine Host: Chris Whiting Bloomberg, Core Terminal Sales [email protected] WHEN: Wednesday, November 12, 2014 Pacific Standard Times 8:30am to 9:30am: Buffet Breakfast 9:30am to 11:00am: Panel: The Past, Present and Future of Bitcoin 11:00am to 12:00pm: Networking WHERE: The Bloomberg office in San Francisco located at Pier 3 BROADCAST: Those who are unable to attend but are subscribers of the Bloomberg Professional Service will be able to view the panel discussion on LIVE starting at 9:30am PST. RSVP is not required for LIVE .
Summary of the DATA annual meeting, April 10, 2014
I was at the Digital Asset Transfer Authority (DATA) annual meeting today. Can't give you all the details of conversations, but I'll give an overview of the speakers, panels, and general sentiment. Keynote David Andolfatto, Federal Reserve Bank of St. Louis academic, gave the opening talk. It was a high level, but interesting, talk about what money is (a ledger) and how digital currencies are a natural evolution. However, he didn't think Bitcoin was good money, because it had an inflexible supply, and someone needed to manage the money supply (like the Fed). He was generally positive about Bitcoin (he specifically said it was "a stroke of genius") but didn't think it could really compete with centrally planned money. First Panel The first panel was about the evolution of money and had Susan Athey, econ prof from Stanford. She had some good insights about data mining the blockchain. John Clippinger from MIT Media Lab had some great thoughts about managing identities and maintaining privacy while still giving regulators what they need. David Schwartz, cryptographer from Ripple labs, didn't add much but had good thoughts. The panel was rounded out by Erik Voorhees, who was excellent as always and presented the liberty position well. Second Panel The next panel was about remittances as a use case. Jerry Brito from Mercatus and Michael Faye from GiveDirect talked about how digital currency could disrupt, particularly in Africa. A good nuanced point that came out was the idea that even though Bitcoin clearly has benefits over speed and cost of existing systems, for remittances having local agents is incredibly important and building those networks is very difficult. Third Panel The third panel was about merchants, and was one of the better panels. Jonathon Johnson, Chairman of Overstock.com, talked extensively about Overstock's decision and the results so far. He mentioned something I didn't know: Overstock doesn't convert 100% of bitcoin to fiat, they keep 10%. They do this because some employees have requested payment in bitcoin, and they want to pay eventually. He also mentioned that they were going to work with vendors to try and pay them in bitcoin. Also on the panel were Tony Gallipi from Bitpay and Martine Niejadlik from Coinbase, who explained what their companies do. Tony gave a good response to a Dogecoiner who basically asked why they don't accept anything but Bitcoin, walking him through their decision framework for accepting currencies. Fourth Panel The fourth panel was a bunch of regulators. As Erik Voorhees said, they were basically all just talking about why their jobs are so important. I won't list all the people, but it was the SEC, IRS, staffer for a Senator, Terrorist Financing something or another, and a State Banking Supervisor. The only thing interesting here was that the IRS lady got some pretty pointed questions, and had fluffy answers in response. Compared to merchants and developers, the regulators spoke in generalities and were pretty boring. Speech on Law Enforcement Considerations Stuart Tryon from the US Secret Service gave an incredibly boring and uninformative presentation about...what the Secret Service does, I guess. It wasn't really related to digital currencies at all and everyone was just waiting for lunch to start by that point. Lunch It was pretty good. Fifth Panel This panel was about the global view of bitcoin. David Johnston from BitAngels had good comments about the benefits of bitcoin to other countries. Last Panel The last panel was about consumer protection and privacy, and was another good panel. Joshua Fairfield, professor of law was very knowledgeable about bitcoin (and surprisingly, sidechains), and had good thoughts. Berin Szoka, from TechFreedom, was very direct in saying that bitcoin could deliver on the promise of revolutionizing government that the original internet advocates promised in the early 90's. We then finished with workshops about various areas, I was in the privacy workshop. Academic types wanted to know how we could work with regulators to comply only when necessary, the tech types were basically saying that the cat is out of the bag and any attempts to tie identity to addresses would be rejected by the community and wouldn't be technologically feasible. Conclusion In general, regulation was a major theme, whether or not the self-regulation model of DATA was sufficient or if more regulation was needed from government. Most seemed to recognize that technology specific regulation is a bad idea, but other than a few tech types everyone bought the premise that complete anonymity isn't a good thing, so the talk was how to apply existing regulation like anti-money laundering and know your customer laws in the least restrictive way. Overall, it was good for networking and for the community to show the regulators that we aren't all radical, and hope they leave us alone...at least until the network effects are too strong to take down. Then we can be radical.
Susan Athey is an economics professor at the Stanford Graduate School of Business who researches Internet economics. Venture capitalist Balaji Srinivasan founded the Stanford Bitcoin Group. He has ... Professor Susan Athey: ‘If People Use It, Bitcoin Has Intrinsic Value’ Susan Athey is a senior fellow at the Stanford Institute for Economics Policy Research, specializing in auction-based ... Susan Athey Ivo Parashkevov Vishnu Sarukkai Jing Xia August, 2017 Working Paper No. 17-033 Bitcoin Pricing, Adoption, and Usage: Theory and Evidence Susan Athey explains how Bitcoin works, and why virtual digital currency might change the way consumers and financial institutions do business. Athey is the … source YouTube Related Posts:Form S-1/A Marathon Patent Group,Robert Shiller’s Narrative Economics Is A Cautionary…The Advent Of Narrative EconomicsStanford Student Calls Out Crypto Professor for…Bitcoin Scams and Cryptocurrency ... Susan Athey explains how Bitcoin works, and why virtual digital currency might change the way consumers and financial institutions do business. Athey is the Economics of Technology professor at Stanford Graduate School of Business. Why Managers Must Embrace Big Data or Be Left Behind. The Fast Track, June 1, 2015. Nasdaq Signals Confidence in Bitcoin, Not Just the Blockchain. American Banker ...
Susan Athey discusses the technological innovation behind Bitcoin and its broader applications, as well as crypto-currency’s potential impact on financial systems, industries—even world economies. Professor Susan Athey discusses Bitcoin and Virtual Currencies at the April SIEPR Associates meeting Money & Tech's Jered Kenna sat down with Susan Athey, Professor of Economics at the Stanford Graduate School of Business, to discuss the economics behind Bitcoin and the impact of using a ... Susan Athey explains how Bitcoin works, and why virtual digital currency might change the way consumers and financial institutions do business. Athey is the ... Susan Athey on How Bitcoin Is Competition For The Current Financial System Watch the full interview with Susan Athey at Moneyandtech.com/susan-athey-coinsummit/