Some thoughts on the inequality of Bitcoin ownership

Even if I am a proponent of Bitcoin, this bothers me. When Satoshi Nakamoto envisioned bitcoin as a payment protocol for everyone, one computer one vote, he was definitely unable to see how capitalism and the already accumulated money will also accumulate Bitcoin. I personally don’t identify myself as a capitalist, I actually dislike capitalism on many grounds, but at the same time, I know why and how it works, it’s not that there are many alternatives in the world. I understand Marxist, communist and socialist ideas but I fail to see how it can propel creativity and drive to move forward and change. It’s like a tradeoff and that’s why I probably like social democracy where they envision a balance of both. But with imperfection. Money is power and powerful always concentrate power and money for their own gains. Equal opportunity ought to be established but equal outcome we can never guarantee. The tension is always there. The concentration of Bitcoin in few places or few hands or few organizations go against the spirit of Bitcoin, as by protocol it is decentralized. But the fact is it is centralized in the big hands and this is the only reason I have against Bitcoin. And maybe that’s why I don’t believe completely that Bitcoin will be a currency for the future. I view it as a digital asset like digital gold which will be used as a store of value. But Bitcoin has shown us how money or value system or payment system can be created without a central money-making machine. I do believe that Bitcoin is better than government currency. I am against the spirit of nationalism and I think the national borders won’t make sense after few millennia and we will appreciate a global currency like Bitcoin. So, ultimately I want to say, Bitcoin will be there. But probably there will be a better currency which can surpass Bitcoin and which will probably not centralized. But then again that is Marxist, libertarian or anarchyst part of my brain talking. As I can see how capitalism is reigning in our world by the power, for the power, with the powerful, who knows Bitcoin might be the winner. Anyway, just some thoughts. I am not an astrologer who predicts future. I speculate and I miss.
The ethereum founder Vitalik Buterin also doesn’t believe in proof of work anymore. So, there are smart people who are already thinking about better solution already. That’s always our best bet for survival. Isn’t it? We need an einstein, we need a Nicola Tesla, we need few scientists, we need probably a work and innovation machine like Elon musk as most of us are just fooling around. Well, it’s too much for one little brain sometimes.

2019 is likely to be a slowly uptrending year

So, 2019.. is it uptrending after a year of correction like in the past? Check my analysis.

You can also play with it using my ideas on tradingview:

Sharks on Bitcoin

What the big three sharks are saying. Somewhat dumb, somewhat great! Investor’s hat is definitely crucial, but not always the best. And I always love the entrepreneur’s hat. Who wouldn’t like to have the both hats with all different colors and taste!! 😉

Shark tank is a great platform that filters entrepreneurs, startup, growing business. If you haven’t known or watched shark tanks, you should definitely start. We human being are idea generators, everybody has ideas. Everytime you walk on the street or malls, you come up with ideas, it’s just the few who take the leap to materialize. Shark tank will give you some glimpse of what I just said, when you will see how innocuous, small ideas can go big if it’s under the right arm. Shark tank is one of the things that I like in both the fat, obese, dumb, racist in one hand and multicultural, smart, free, open, entrepreneurial North America on the other. LoL.;)
If you get the joke. Haha. You become what you choose to..
Here’s a great playlist for popular shark tank videos and roastings. Enjoy. 🙂

And subscribe to the Best of Shark Tank Channel to get more of these videos.

Recent Crypto Coin Dynamics of Bitcoin, Ethereum, Ripple, Cardano, Litecoin, Stellar and Monero

Screen Shot 2018-02-24 at 2.19.39 PM

You will realize the significance level of the top 7 cryptocurrency if you look at this chart.
1. Bitcoin: BTC (Yellow dotted curve)
2. Ethereum: ETH (Blue dotted curve)
3. Litecoin: LTC (Aliceblue dotted curve)
4. Ripple: XMR (Orange dotted curve)
5. Cardano: ADA ( Brown dotted curve)
6. Stellar Lumen: XLM (Light green dotted curve)
7. Monero: XMR (Pink dotted curve)

This chart shows you the price of these 7 major crypto coins from September till now. If you look at the pink rectangle, you can realize how Ethereum(dark blue), Monero(pink), Litecoin(alice blue), Stellar(Light green) has higher price than bitcoin (yellow). But, they were not always higher, look during november, everything was less valued than bitcoin (yellow curve is at the top in Nov 2017). As Bitcoin’s price had an upward trend during the end of december, all the coin price also saw upward trend. But as Bitcoin’s price is going down, some coins are holding their value but some are losing their value. You can see, underneath the pink rectangle, falls the two coin Cardano(brown) and Ripple(Orange), these two coins are losing their value. However, Ripple had higher values in early January as you can see if you look at the last peak for all coins near Jan 2018. I never had too much confidence in Ripple as it somehow defeats the idea of crypto currency with its centralized feature (But who knows it may see light again if it can deliver its promises). Ultimately, money will flock to services which have higher utility and can gain trust.
So, these should give you some rough idea about the coin dynamics. A successful coin economy depends on how the market share or daily volume of trade is going on that coin landscape. It’s kind of similar to how Forex (Foreign Exchange market) market where currencies are traded moves, how US dollar influences Euro or Japanese Yen, or Chinese Renminbi, or Bangladeshi Taka. Hope you have an idea of evaluating crypto coins and their potential gains or losses over time and can make educated investment decisions. And I guess you can see how crypto exchange market is going to look like in future.

Bitcoin – how it was perceived in 2013?

A talk from 2013 at TED(Technlogy, Entertainment and Design). Watch the talk, and think what is different in the talk in 2013 from what it is now in 2018 after nearly 5 years. Enjoy!

Around the time, I first heard about bitcoin and got mind blown when I realized it could potentially give birth to a global currency. I’m lucky to find the talk for you all again, while exploring the TED talks. Even though Bitcoin was born with the dream of being a global curerncy, however, now a days, it’s mainly being treated as a digital gold or asset where you invest your money with the hope for making profit. But when I knew about Bitcoin, I didn’t get excited by it’s profit-making ability, rather, I was excited by how a currency can be established without the authority of any government by simply using some mathematics, cryptography and algorithms. The beauty of mathematics and the power of internet mesmerized me in significant way and I started learning more. Since then, it has evolved so much, it has experienced so much, it’s been popularized all around the world, criminalized in countries, stolen, hacked and what not ! So, it may not turn into a currency. Who will buy his coffee today with 0.00036 BTC(~ 3 USD) which may be 360 USD (when 1 BTC ~ 1,000,000 USD) ? It sounds foolish. But trust me I have bought my dinner in an Indian restaurant named Khana Khazana in West Lafayette with bitcoin which will be worth more than that in 2020. I don’t regret it, because I didn’t care, what will be it’s value in future, rather that I and the fellow bitcoiners were more excited to be able to use bitcoin to buy our food. So, may be, not bitcoin, but some other crypto currency will be a global coin. Governments will now create their own crypto coin( But however the future will be, it’s gonna be an interesting one in terms of how we will use our money. When something is exciting, you can always smell it when you play with it, and this video just reminded me of my memories. Hope when I am old, I can say to my grandchildren that I was part of a monetary revolution.

What are those Bitcoin/Cryptocurrencies anyway?

Little Background for specially those who are new to the world of cryptocurrency:

What is Bitcoin? – A digital currency which keeps its registry book on the web in the files called block which creates a chain called blockchain and which is not governed/controlled by any third party. Your money is your money, you own it and you solely control it. If you have ever downloaded or streamed movie online using P2P service, Bitcoin is basically using similar system to generate money/coins and store transaction information worldwide.

Where is the value of Bitcoin? – Well, this is difficult to answer. Because value of something is in the eye of the person who is judging. Where is the value of a flower like rose? What is the value of a painting by Picasso? What is the value of a paper which says 10 dollar or 10 rupi and then the name of the government, which we call cash that we keep in our wallet that we use in restaurants? – Where does a paper get a value? What’s the value of a PhD certificate? What’s the value of any paper that you can torn down in second?
So… there is no value if you or significant portion of the population don’t give it a value. And in a society, we build trust, we maintain relationship (social/financial) to create value. I can ramble on Value day long but I hope you get it through the analogy. Bitcoin and other crypto currency project will thus have value if a lot of people trust in it and use it because it make life/business easier, bring new idea to the world.

Why does it called cryptocurrency? – Because online security depends on cryptography (a field of computer science and security) and cryptographic proofs/protocols.

How many cryptocurrencies are there? – More than 3000. Why? – Coz Bitcoin and most other cryptocurrency’s codes are open source, so anybody, even you just can copy it and create your own coin if you know programming. Therefore, most of the crypto-currencies can not be trusted and we need to have cautious eyes.

Which are some of the reliable currencies? – The top 100 crypto currency from coin market cap can be taken seriously.

What should I look at when I look at these crypto coins? – How long they survived, how is the total market capital, how much is the 24 hour volumes(how much trade is happening every day), who is behind that currency?

Why should I buy in? – Simple answer, if you want to make good investment, there is a lot of opportunities in crypto currency space.
Why do you think so? Lots of crypto currency projects are very innovative legitimate startups backed by big institutions which are trying to solve real world problems like how to lend money in Africa, how to deal with inflation in Argentina, how to send money 24/7 at any point to another point across the world, how to reduce the power of central governments, how to use distributed web to reduce costs?

The bottom line is this space is just like internet back in 90s, only few people knew and had information. So, if you have the correct information and challenging mindset and invest into the right project, you can get rich, a millionaire, billionaire or a trillionaire. But if you are stupid, you can lose your life savings, get hacked and that’s why you need right and valuable information. So, no risk, no gain. Just imagine, if you would have invested in Facebook back in 2000, you would be so happy today, isn’t it? Because if you are reading this, you are on facebook that didn’t exist before 2000.

Okay, I understand Bitcoin but what is the purpose of other cryptocurrencies?

Type 1- Money:

Firstly, What does Bitcoin do? It keeps a registry book of information about who bought or sold what to whom at what time and where? Banks make money by giving you credit/debit card and maintaining these information, but Bitcoin keeps them securely on the web in a system called Blockchain.

Okay, you got the basics then. Now, there’s a lot of clones, like how many languages in this world- english, spanish, bengali… I can’t count. But as you know with all these different languages, everywhere we just express our thoughts and feelings and imaginations. So, every language comes with its own flavor, grammar, scripts but fundamentally they are a medium of exchanging information from one to other..

Therefore, Bitcoin also have variants, thousands of other coins cloned from bitcoin. Just like I love Japanese, but my friend like Chinese, people also like one crypto over other for their own flavor or business association.

Name some coin: Litecoin, Peercoin, Prime coin, Dogecoin etc.

Type 2- Smart Ideas/Business (Wide bracket):

Now, some other people thought, wait.. why only the information of buying or selling goods.. How about I keep legal documents like my home ownership, my car deals, my copyrights, other contracts using similar distributed blockchain Bitcoin use. Right now we use lawyers, government registries- trusted authorities to take care of them. That’s when the idea of smart contract arose. Using cryptography, it’s possible to keep these information (partially or full) on the web securely in a way so that only you or relevant people will be able to open. So, this is how other crypto-currency ideas are born. The second biggest cryptocurrency Ethereum is basically smart contract. Ethereum itself has a programming platform, it’s kind of like Apple App store or Google Play store for android, where developers submit apps based on their cool ideas.

So, in short, Ethereum, the second biggest crypto coin provides a platform where other crypto based innovative coins/ projects can be hosted. What are some cool projects? – Distributed matchmaking, distributed social network like facebook, distributed crowdfunding, you name it.. just like how many apps are there on App store? If there is a legitimate service you can come up with and you know that there’s a market for it, you can create a coin. Business 101.

Name some other cryptos: Qtum, Omisego, Cardano, Neo, Nxt, Nem.

Type 3 (Privacy Coin):

Now this is where it becomes very very mathematical. Bitcoin, ethereum these are not private. What does it mean by private? Meaning, what if I want to hide my information, I don’t want hackers, government to track where I spent money, how much I sent someone in India? Oh.. you didn’t know that you have been tracked? Did you? Well, now you should know then.. that every time you swap your credit card, every time you buy a ticket, every time you make a phone call, your government, authorities have the ability to know where you are, what you are eating, with whom you are hanging out, how much money you have and they can then tax it? Well, if you are an honest good person doing no bad, you probably don’t care? Or do you? I hope you have heard the arguments of Edward Snowden. Well, anyway, if you are not an anarchist or a social reformer or a libertarian or whatever.. you probably don’t care. But those people care about their privacy.
So, how do you hide your ip address, how do you mask your money? That’s where comes the power of mathematics, that’s where comes the use of Privacy coins.
So, what are some privacy coins out there? – Monero, Zcash, Zcoin, Verge.
In fact, you should buy Verge now.

There are also other types of coins which try to improve obscure technical limitations of other coins.

2018 is coming.
Join our Facebook Group to learn more:

Blockchain/Bitcoin SCET (Science, Crypto, Econ & Tech) Thinkers
“This is a group for anyone interested in Science, Research, Finance, IT, Decentralization, Democracy with the use of Blockchain technology. Bitcoin and other prominent crypto-currency provide it all. Bitcoin and crypto-currencies with the revolutionary blockchain technology gifted us decentralized money, smart contract, financial instruments accessible by everybody from everywhere. The success of decentralization in Bitcoin/Crypto space showed us the power of consensus based mechanisms and systems which can solve problems in various arena of our society. This group/meetup will try to provide a platform for enthusiasts to share ideas, brain storm and understand better about the new Crypto world. We are primarily located around three universities in the midwest: Purdue University(PU), University of Illinois Urbana Champaign(UIUC), Indiana University(IU) but we welcome everybody interested. But we want our user to be active participant rather than to be passive observers. Please join, learn and share your views with us. ”

So, the sole purpose of this group is to share information and be smart and probably be rich if you want to. But we don’t like rich, arrogant, assholes, so you need to be polite and intelligent. Good luck.