Digital Asset - Revision history

Tom: /* Context */

2024-10-09T19:51:39Z

‎Context

Tom: /* Implementation */

2024-08-08T18:14:27Z

‎Implementation

Tom: /* Context */

2024-08-03T13:38:21Z

‎Context

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2024-05-30T20:45:57Z

‎Context

Tom: /* Acceptance */

2023-08-23T00:25:29Z

‎Acceptance

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2023-08-23T00:24:27Z

‎Acceptance

Tom: /* Advocates */

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‎Advocates

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‎Problems

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‎Problems

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‎Critiques

← Older revision		Revision as of 19:51, 9 October 2024
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	For some history on digital currency see the wiki page [[Ethlas]].		For some history on digital currency see the wiki page [[Ethlas]].
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		+	The [[Identity]] of the founder of [[Bitcoin]] is still the subject of speculations in 2024 when a special was created with the purpose of unmask that [[Identity]].<ref>https://www.newyorker.com/tech/annals-of-technology/has-bitcoins-elusive-creator-finally-been-unmasked</ref>

	==Problems==		==Problems==

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 A review of Stablecoins from NIST IR 8408<ref>NIST IR 8408 ipd - Understanding Stablecoin - Technology and Related Security Considerations https://csrc.nist.gov/publications/detail/nistir/8408/draft</ref><blockquote> stablecoins use widely varying management, implementation, and reserve models to attempt to hold their peg (i.e., maintain their value). For example, the International Organization of Securities Commissions (IOSCO) evaluates four different types of stablecoins: fiat currency, other real-world assets, other crypto assets, and algorithmic controlled assets. These types are delineated by the form of reserve funds held and the method for maintaining price stability. The IOSCO claims that stablecoins should be considered crypto-assets as opposed to cryptocurrency “since these assets do not in general fulfil the core economic criteria of money – as a unit of account, a stable store of value and efficient means of exchange.” When functioning properly, stablecoins do typically intend to satisfy this definition of money, but there are security, trust, and stability issues that can limit their ability to fulfill this role. </blockquote>
 ==Implementation==
 ===Bitcoin Core===
 Which has had other names like Bitcoin-qt which is still the name of the exe for version 0.20.xx. Here is the way to deal with that version. Caveat Emptor, your version may be different yet.

← Older revision		Revision as of 13:38, 3 August 2024
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	Most of the commentary on this page is about use of [[Blockchain]] to hold [[Cryptocurrency]] which contains more details on the problems with that.		Most of the commentary on this page is about use of [[Blockchain]] to hold [[Cryptocurrency]] which contains more details on the problems with that.
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		+	For some history on digital currency see the wiki page [[Ethlas]].

	==Problems==		==Problems==

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 ==Context==
 [[Bitcoin]] was the first successful demonstration of the value of [[Distributed Ledger Technology]] (DLT) often referenced as [[Blockchain]] which has been around for decades before DLT was added.
 ==Problems==

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 * in 2018-12-27 we saw this response [https://www.nytimes.com/2018/12/27/technology/bitcoin-cryptocurrency-crash.html?searchResultPosition=2 Remember Bitcoin? Some Investors Might Want to Forget]
 * In 2019-04-09 we saw this response [https://www.nytimes.com/2019/04/02/technology/cryptocurrency-bust-wall-street.html?searchResultPosition=1 Amid Bitcoin Uncertainty, ‘the Smart Money Knows That Crypto Is Not Ready’]
-* In 2021-04-25 we saw this response [https://www.nytimes.com/2021/04/25/technology/cryptocurrency-mainstream.html?searchResultPosition=1 We’re All Crypto People Now] but... <blockquote>Bitcoin and other [[Cryptocurrency]Cryptocurrencies]] have gone from curiosity to punchline to viable investment, making them almost impossible to ignore — for better or worse. ... NFT combines crypto to create fully digital artwork. Mark Greenberg, a photographer, had that thought in March when he auctioned off an NFT of a previously unpublished portrait he’d taken of Andy Warhol in 1985. Watching the bids climb to $100,000, he was elated. He hadn’t been able to work much in the pandemic, and this money could help with his daughter’s upcoming wedding and the house he’d just bought. But then he started to worry. His sale’s bounty was stored in a digital account that only he had access to. What would happen to it if he, a 69-year-old with some health issues, suddenly dropped dead? As a precaution, he added his goddaughter’s thumbprint to his phone’s security. That turned out to be “a hideous, painful mistake,” he said, because it triggered security measures and permanently disabled his cryptocurrency accounts. (Mr. Greenberg, a crypto newbie, had not saved the crucial “seed phrase” that could get him back in.)  His joy from the sale quickly turned to horror. “My head started to get vibrate-y,” he said. “I thought, ‘Is this a bad dream?’” Lost cryptocurrency, he learned, is gone for good. Adding insult to injury, Mr. Greenberg’s inaccessible account receives a royalty payment every time his NFT is resold.</blockquote>
+* In 2021-04-25 we saw this response [https://www.nytimes.com/2021/04/25/technology/cryptocurrency-mainstream.html?searchResultPosition=1 We’re All Crypto People Now] but... <blockquote>Bitcoin and other [[Cryptocurrency|Cryptocurrencies]] have gone from curiosity to punchline to viable investment, making them almost impossible to ignore — for better or worse. ... NFT combines crypto to create fully digital artwork. Mark Greenberg, a photographer, had that thought in March when he auctioned off an NFT of a previously unpublished portrait he’d taken of Andy Warhol in 1985. Watching the bids climb to $100,000, he was elated. He hadn’t been able to work much in the pandemic, and this money could help with his daughter’s upcoming wedding and the house he’d just bought. But then he started to worry. His sale’s bounty was stored in a digital account that only he had access to. What would happen to it if he, a 69-year-old with some health issues, suddenly dropped dead? As a precaution, he added his goddaughter’s thumbprint to his phone’s security. That turned out to be “a hideous, painful mistake,” he said, because it triggered security measures and permanently disabled his cryptocurrency accounts. (Mr. Greenberg, a crypto newbie, had not saved the crucial “seed phrase” that could get him back in.)  His joy from the sale quickly turned to horror. “My head started to get vibrate-y,” he said. “I thought, ‘Is this a bad dream?’” Lost cryptocurrency, he learned, is gone for good. Adding insult to injury, Mr. Greenberg’s inaccessible account receives a royalty payment every time his NFT is resold.</blockquote>
 * What's next on this rolly coaster?
 * See the wiki page on [[Technology Acceptance]] for a rational manner to judge a new technology like [[Bitcoin]].

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 The idea of a decentralized monetary system is as old as money itself. Andrew Jackson was violently opposed to the U. S. Federal Bank and allowed its charter to expire while he was president.
-Unlike many people who get more conservative as they age, F.A. Hayek became more radical. Although he had favored central banking for most of his life, in the 1970s he began advocating denationalizing money. Private enterprises that issued distinct currencies, he argued, would have an incentive to maintain their currency’s purchasing power. Customers could choose from among competing currencies. Whether they would revert to a gold standard was a question that Hayek was too much of a believer in spontaneous order to predict. With the collapse of communism in Eastern Europe, some economic consultants have considered Hayek’s currency system as a replacement for fixed-rate currencies.
+Unlike many people who get more conservative as they age, F.A. Hayek became more radical. Although he had favored central banking for most of his life, in the 1970s he began advocating denationalizing money. Private enterprises that issued distinct currencies, he argued, would have an incentive to maintain their currency’s purchasing power. Customers could choose from among competing currencies. Whether they would revert to a gold standard was a question that Hayek was too much of a believer in [[Self-organization|spontaneous order]] to predict. With the collapse of communism in Eastern Europe, some economic consultants have considered Hayek’s currency system as a replacement for fixed-rate currencies.
 ==Acceptance==

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 ==Problems==
-* Welcome to a world where a simple mistake can cost you your entire accumulated wealth.<ref>D.T. Max, ''Coin Toss.'' New Yorker (2021-12-13) pp 22 ff</ref> Everyone has made some mistake with money during their lifetime, but what if all of your wealth was that mistake?<blockquote>If things had gone just a bit differently, James Howells might today be as rich as the Queen of England. The decisive moment, he now thinks occurred one evening in August, 2013... when he was cleaning out his office</blockquote>
+* Welcome to a world where a simple mistake can cost you your entire accumulated wealth.<ref>D.T. Max, ''Coin Toss.'' New Yorker (2021-12-13) pp 22 ff</ref> Everyone has made some mistake with money during their lifetime, but what if all of your wealth was that mistake?<blockquote>If things had gone just a bit differently, James Howells might today be as rich as the Queen of England. The decisive moment, he now thinks occurred one evening in August, 2013... when he was cleaning out his office and threw out a hard drive that he hadn't used in a long time. </blockquote>
-[[File:Wallet App.png]] and threw out a hard drive that he hadn't used in a long time.
+[[File:Wallet App.png]]
 * [https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/16/fact-sheet-white-house-releases-first-ever-comprehensive-framework-for-responsible-development-of-digital-assets/ FACT SHEET:  White House Releases First-Ever Comprehensive Framework for Responsible Development of Digital Assets] released on 20222-090-16.
 * [https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/09/fact-sheet-president-biden-to-sign-executive-order-on-ensuring-responsible-innovation-in-digital-assets/ FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets] released on 2022-03-09

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 ==Critiques==
 Introduction and summary from ''Bitcoin, Currencies, and Fragility'' by Nassim Nicholas Taleb the author of ''Black Swan''<ref>Nassim Nicholas Taleb, ''Bitcoin, Currencies, and Fragility'' arXiv https://arxiv.org/pdf/2106.14204.pdf</ref><blockquote>This discussion applies quantitative finance methods and economic arguments to cryptocurrencies in general
-and bitcoin in particular —as there are about 10, 000 cryptocurrencies, we focus (unless otherwise specified on the most discussed crypto of those that claim to hew to the original protocol [1] and the one with, by far, the largest market capitalization. In its current version, in spite of the hype, bitcoin failed to satisfy the notion of "currency without government" (it proved to not even be a currency at all), can be neither a short nor long term store of value (its expected value is no higher than 0), cannot operate as a reliable inflation hedge, and, worst of all, does not constitute, not even remotely, a safe haven for one’s investments a shield against government tyranny, or a tail protection vehicle for catastrophic episodes. Furthermore, bitcoin promoters appear to conflate the success of a payment mechanism (as a decentralized mode of exchange), which so far has failed, with the
+and bitcoin in particular —as there are about 10, 000 cryptocurrencies, we focus (unless otherwise specified on the most discussed crypto of those that claim to hew to the original protocol [1] and the one with, by far, the largest market capitalization. In its current version, in spite of the hype, bitcoin failed to satisfy the notion of "currency without government" (it proved to not even be a currency at all), can be neither a short nor long term store of value (its expected value is no higher than 0), cannot operate as a reliable inflation hedge, and, worst of all, does not constitute, not even remotely, a safe haven for one’s investments a shield against government tyranny, or a tail protection vehicle for catastrophic episodes. Furthermore, bitcoin promoters appear to conflate the success of a payment mechanism (as a decentralized mode of exchange), which so far has failed, with the speculative variations in the price of a zero-sum maximally fragile asset with massive negative externalities. Going through monetary history, we show how a true numeraire must be one of minimum variance with respect to an arbitrary basket of goods and services, how gold and silver lost their inflation hedge status during the Hunt brothers squeeze in the late 1970s and what would be required from a true inflation hedged store of value.</blockquote>
 A review of Stablecoins from NIST IR 8408<ref>NIST IR 8408 ipd - Understanding Stablecoin - Technology and Related Security Considerations https://csrc.nist.gov/publications/detail/nistir/8408/draft</ref><blockquote> stablecoins use widely varying management, implementation, and reserve models to attempt to hold their peg (i.e., maintain their value). For example, the International Organization of Securities Commissions (IOSCO) evaluates four different types of stablecoins: fiat currency, other real-world assets, other crypto assets, and algorithmic controlled assets. These types are delineated by the form of reserve funds held and the method for maintaining price stability. The IOSCO claims that stablecoins should be considered crypto-assets as opposed to cryptocurrency “since these assets do not in general fulfil the core economic criteria of money – as a unit of account, a stable store of value and efficient means of exchange.” When functioning properly, stablecoins do typically intend to satisfy this definition of money, but there are security, trust, and stability issues that can limit their ability to fulfill this role. </blockquote>