Geek Excursion: Cryptocurrencies

I’ve been thinking on and off about Bitcoin ever since it was written years ago. Right around the end of last month, in December I thought I would look into it again. Turns out the environment has grown considerably since the last time I looked at it, by leaps and bounds! I figured now would be a great time to dip my big toe into the stream, so I found an online exchange and pursued Bitcoin with them. This exchange was ExpressCoin and the purchase deal was mailing them a US Postal Money order, they’d cash it and then send me the Bitcoin equivalent. Since this was a conversion from Fiat money (in this case United States Dollars) to Bitcoin, the exchange rate was around $330 per Bitcoin. The $10 investment gave me 0.03120712 Bitcoin.

Right after that I started lurking on the Bitcoin subreddit on Reddit and discovered two other currencies, Litecoin and Dogecoin. Then just after that I discovered the Cryptocurrency Faucet websites, places where they hand out free money for proving that you’re human with a captcha, and the off chance that exposing you to advertising will pay for the money flowing out of the faucet.

I still think a great part of all these cryptocurrencies is still quite firmly fixed in the hobbyist framework, the enthusiasts are on the “bright” side of the currency and the speculators are on the “dark” side of the currency. All of these currencies that I’ve engaged with display pretty wild volatility in comparison with any linked Fiat. My buy-in rate was around $330 per Bitcoin, and now weeks later, that’s at $218.87 per Bitcoin. There seems to be two camps developing, the first camp is quite keen on ignoring the Fiat exchange rate and trying to ignite their currencies inside themselves. One of the most positive and tightly knit communities surrounds the Dogecoin. Seeing how the Dogecoin enthusiasts communicate and cope with their currencies volatility is a lesson in lighthearted, altruistic generosity. People who hold Doge appear to be very ready to donate it to other people as encouragement, sympathy, or even on a lark. As you go from Doge to Litecoin to Bitcoin you see a lot less of the pleasantries and a lot more of the cold hard business of currency work and trading.

I think one of the most fascinating parts of these new currencies is how everything is starting from the very beginning – including questions of trust and honor. Because all of these coins are decentralized and unregulated there is no capacity for a “chargeback” mechanism, and when this runs up against mechanisms in other currencies, like the Fiat, where there are “chargeback” mechanisms in place, you run the risk of being seriously defrauded. I completely understand the fear and the very careful progress that these cryptocurrency traders make, but it does speak volumes about just how awful and corrupt some people are. We don’t assume people are trustworthy and honorable, so we need many complicated structures in place to cope with the unknowns. This gap in honor is, I feel, a huge part of what these currencies should work on next. How do you measure honor? How do you establish trustworthiness? I got to thinking about it, and every time I think I have a solution I run into an edge case that blows my concept out of the waters. The only thing that I think might work is arranging honor and trustworthiness in a way similar to the “Web of Trust” that PGP and GPG cryptographic systems rely on to establish trust. PGP/GPG never really took off for mass adoption and that’s always been a very sad thing for me, but I really like the “Web of Trust” idea that they pioneered. That people can trust others when there is reputation on the line, backed by money perhaps, there would need to be some sort of contingency addressing on the line as well. So if Bob wants to establish his trustworthiness and his honor he puts his money on the line for it. But the problem with this is that someone who is not honorable could just come along and lie about Bob and take his money, sending you right back to the start again. It’s fascinating, that Bitcoin decentralized money, but we need to figure out how to decentralize trust as well.

The US Government has done its due diligence in preventing egregious misuse of the Bitcoin currency to be used for illegal purposes by attempting to regulate how centralized exchanges transfer Fiat into the cryptocurrencies. It seems that Bitcoin and all the others are very elegantly designed in so far that despite all these regulations there is a community of individuals willing to operate as nano-exchanges that help bring everything back to its decentralized and unregulated roots. Half of the fun of playing with cryptocurrencies is being at ground zero for all these fascinating developments and arguments and seeing how something so new develops and unfolds.

So far I’ve got some small parts of a Bitcoin, some small parts of a Litecoin, and gobs of Dogecoin. For myself, I am very interested in figuring out ways to secure the relationships between traders, working on terms of honor, trust, and faith. If anyone has ideas that they would like to share, please leave them in the comments below. I would really love a nice conversation about securing honor, trust, and faith between traders.

Timon Throws Mud At Athens

I wrote this on Facebook, but I think I should publicize it to a wider audience. This is my best argument for the election of 2012:


This is an excerpt from an email I wrote to my father after he told me about how awful socialists are. Enjoy.

***

I honestly can’t say that I’m terribly upset by Quantitative Easing or that I harbor any fear of inflation. I find fear to be a worthless emotion. Fear and worry do nothing for anyone. It’s a lot like a rocking chair. Yes you shuffle about a lot but you don’t get anywhere. Plus fear is a kind of fog that sits on your mind and suppresses true joy and real happiness. I’m tired of the media telling me that I should be afraid or fear that or this or whatever. I get loads of it when I fly for work and it’s, to put it nicely, utter malarkey. The end isn’t coming, the politicians aren’t going to ruin the world. The globe will continue to spin day after day and people will continue to make a gamely try at it, doing what they always do. The color of the background may change, but life will go on.

As for Willard Romney, as I refuse to use his cutesy pet name, he’s got a lot of problems. He, and others in the Republican party seem to have fallen off the rightmost edge of existence. Even beyond you and your friends. That’s quite something! The GOP killed a paid-for-and-ready-to-go jobs bill for **VETERANS**. Dad, I know you look in the mirror to shave. I know you were in the Marine Corps and I also know that once you are a marine, you are one for life. So, that on some deep private level in your mind should bother you. That your party nailed a perfectly good bill just because they are racist and can’t stand to see a bunch of old white men subservient to a younger black man. I know you aren’t a racist, and I forgive you for being so incredibly conservative, but you have to admit that deep down, your inner Marine has got to smart at least a little to know that a jobs bill that was supposed to benefit vets got shot down for absolutely no good reason. Well, it bothers me. More than that though, is the entire GOP party being so intransigent. They started congress with the single aim of denying progress to our President beyond rational thought. They have killed and voted down every single effort, efforts that are meant to benefit the middle class. Middle class people like you, Theresa, and uh, THE REST OF US. Including me. I can’t say that I have a problem with taxing the rich, not really. I learned a little bit of history a few weeks ago that I will share with you. Trickle-Down Economics, that economic policy that if you cut the taxes on the very rich that everyone benefits because the rich will donate, they’ll start new businesses, and hire people and all of that. It sounds wonderful, but the rich really haven’t done anything they were supposed to do for the rest of us. They, especially Willard Romney, moved their money to Switzerland or the Cayman Islands. So, back to Trickle-Down, it used to be known by another more colorful name. It used to be called Horse and Sparrow Economics. The mental image was that you force fed a horse (the rich) with oats until it started to run oats in it’s droppings, and the droppings were for the Sparrows (the rest of us). I find that to be more accurate a representation of the economic policy of the GOP. Feed the rich until they start dropping food out of their ass for the rest of us to eat. It’s a delightfully filthy image, but that’s how a lot of us in the middle class feel. That the rich get richer and the rest of us could die for all they care – yet we’re doing ALL OF THE WORK. Then I learned that the rich do not create jobs. It is the Middle Class that creates jobs. The Middle Class makes enough money to buy en-masse, which encourages those who want to make money to cater to us and then they hire people to suit that need. The rich will not just create jobs because somehow they feel put-upon to do so! It’s the Middle Class that does the hard work and it’s the Middle Class that creates the need. So, really, when you get down to it, the rich are parasites. It’s diametrically opposite to how conservatives think – that the poor are the parasites. It hasn’t worked out in 200 years, perhaps you have it wrong.

Another thing that I’ve learned is the hot emotional core of old white man anger. There is a problem in your ranks, with the Republican party and it’s been happening for many many years. The GOP has switched in it’s leadership. It used to be run by Yankee power, by the Andrew Carnegies and Rockefellers . Now it’s run by Southern power. It’s got nothing to do with getting rich and leaving a lasting positive legacy behind. That’s a Yankee extract from the Puritan style of thinking. That if you make a lot of money you owe it to leave something behind that benefits everyone else. Compare that with how the GOP is currently structured – especially the Tea Party people, whom you are directly responsible for as a party member. It’s a Southern way. It’s all about fear, loathing, racism and hierarchy. There is a pecking order and that rules over everything else. Where does this come from? Not from the Puritans, but rather from English aristocracy running slavery plantations in Barbados. They brought their structure into the deep south and for at least 150 years the Yankees had power and the Southerners resented it. Now the tables have turned. All the things you remember and treasure about your dear conservatism have been perverted by Southern wretches who refuse to acknowledge your aspirations about what conservatism can do. You want Trickle-Down, or Horse-and-Sparrow to work, and I know it’s precious and dear to you. But it’s not being driven by the men you thought it was. It’s driven by men who are only concerned with the structure of hierarchy and maintaining the status quo. In many ways, the rank and file of the GOP are field slaves to your new Southern masters. The Southern Republican wants it only his way and no other. No room for anything else. And no room for someone as backwards as Andrew Carnegie or a Rockefeller to leave anything but a smoking husk behind.

So the rest of us, pretty much having to land behind the horse and eat whatever seeds might be dropping out of the rear of that animal see nothing but rigid structure and absolutely no progress. There aren’t jobs being made, the recovery is stultified and the men and women who are supposed to make things easier for us all are so racist that they’ve become nearly crystallized in their intransigence. Things aren’t getting better and then we hear about how the rich have $21 Trillion dollars stored overseas and how none of the rich are helping anyone else. There isn’t anymore bird seed for us Sparrows! The rich are sending their droppings off to Switzerland! So, we’re between a rock and a hard place. Nobody wants to help us, the conservatives don’t give a flying rip and the Republicans think we’re just a batch of worthless moochers, the 47% that Willard Romney spoke of. The 47% like YOUR MOTHER for all the time that I knew her when she was still alive, one of those 47%! So, the Middle Class, with nothing from the conservatives at all have to turn to anything else. So the liberals and democrats say that some socialization may help. You chafe at the word socialism yet you feed off of it. It’s a strange relationship, you know. The silent generation and the baby boomers are both entitled and you are reaping the benefits while castigating anyone else who might even show an interest in what you are taking advantage of. Socialism. Like your auto insurance and your homeowners insurance, which is socialized. Your Fire Departments and the public schools that educated… people you love… again, socialism. Medicare that pays for your trips to see the doctor. Socialism. Social Security, which has SOCIAL in it’s !@#$ name! Regular checks… on the backs of the rest of us. And we smile gamely and nod and wish you happiness, and what do we get in return? Sour grapes and angry yammerings about marxism and socialism. My tin ear aches.

So yes, socialism Dad. Wonderful glorious socialism. The poor and middle class are tired of eating horse shit. We are weary of the rich and their excesses and their rudeness and their stupid capering behaviors! They aren’t respectable. The rich are tapeworms that eat everything and leave nothing for anyone else. They contribute nothing but nasty snide comments and thanks to a disgustingly eroded public education system, they use fear to control the great unwashed masses.

And so, we come back to fear. Fear is what’s at the heart of the problem. The majority of Americans are too stupid and too fearful to engage in any rational thought. If they knew what the rich and the conservatives did to the rest of us, while they waddled off fat and happy there would be hell to pay. Thankfully we are an easily cowed lot. Obedient and silent and hard-working.

So, in a way, screw the rich. And frankly my dear, I don’t want to be rich. I want to be happy. Perhaps capitalism isn’t such a grand to-do after all. Maybe it’s something else. Maybe socialism isn’t oh-so-terrible! Maybe if the Sparrows are given fresh bird seed they might be able to fly again. I think that’s worth looking into.

So as a member of the Middle Class, I have no choice but to be deaf to the Republican party. The members of your party did their level best to hurt the rest of us through glorious inaction. We see the GOP’s intransigence and we’ll throw our chips in when it comes time to vote. The question will be simple for us: Select someone who has hurt us all or someone who offers at least a workable claim to want to move forward. Willard Romney or Barack Obama. At least for me, there is no real choice. The GOP are anti-American racist hypocritical ignorant bigots.

An empty chair would be better. Or maybe, a chair with Barack Obama actually sitting in it, leading. DOING SOMETHING. DOING ANYTHING.

Gasoline in Michigan

I’ve been thinking about how the people in this state behave in relationship to their vehicles. Specifically how people in Michigan have idolized their cars and refuse to part with them no matter how expensive it is to operate them. This line of reasoning got me wondering about the price of automobile gasoline and how it affects behavior. Specifically at what stages do people in Michigan start to adapt their behaviors?

So far gas has reached $3.55 per gallon for regular unleaded gasoline. Here’s a continuum of adaptive behaviors that I think people could use if they really wanted to:

  • Drop maximum speed to 65 in a 70MPH zone
  • Drop maximum speed to 55 in a 70MPH zone
  • Consolidate trips, waiting until there is a reason to go out and chaining opportunities to make it all in one trip.
  • Carpool
  • Use public transportation
  • Bicycle riding
  • Walking

So far I’ve started to drop my maximum speed between 55 and 60 MPH even in 70MPH zones, I consolidate trips and as soon as the weather improves a bit more, I’ll be taking advantage of public transportation again.

I’ve polled some of my coworkers about their sentiments and from what I can gather, gasoline would have to be above $5 a gallon to force the people in this state to adapt their driving behaviors.

Here’s a question for all my readers, so please comment, what have you done in response to the higher price of gasoline to adapt or cope? Let us know, I look forward to a discussion and possibly more adaptations I haven’t thought about in this blog post. 🙂

Great Quote about eBook Piracy

Saw this on Librarian.net:

From a transcript of a talk between Paul Krugman and Charlie Stross, from WorldCon

“As for the intellectual property, I try not to get too worked up about it. There’s a lot of people angsting about piracy and copying of stuff on the Internet, publishers who are very, very worried about the whole idea of ebook piracy. I like to get a little bit of perspective on it by remembering that back before the Internet came along, we had a very special term for the people who buy a single copy of a book and then allow all their friends to read it for free. We called them librarians.” [thanks karl]

Thanks Librarian.net! What a great point! 🙂