Genesis Block

Bitcoin Genesis Block

A little about Bitcoin’s creator:
Satoshi Nakamoto is the pseudonym used by the unknown person or group who created the cryptocurrency Bitcoin and authored its original white paper in 2008. Satoshi Nakamoto communicated with the Bitcoin community primarily through online forums and email.
From his forum posts, we know that Satoshi was fluent in English and had a deep understanding of cryptography, computer science, and economics. He was also passionate about creating a decentralized digital currency that could operate without the need for intermediaries like banks or governments.
Satoshi Nakamoto’s forum posts also revealed his meticulous attention to detail and his commitment to security. He frequently engaged in technical discussions with other members of the Bitcoin community, and his contributions were often praised for their thoughtfulness and precision.
Despite the many forum posts attributed to Satoshi Nakamoto, his true identity remains a mystery to this day. He disappeared from the public eye in 2011, and his identity has never been confirmed.

The Genesis Block:
The first Bitcoin block is known as the “Genesis Block” and was mined by the creator of Bitcoin, Satoshi Nakamoto, on January 3rd, 2009. The block contained a message in the coinbase parameter that read:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
This message is believed to be a reference to a headline from The Times newspaper on the same day, which reported on the UK government’s plans to bail out failing banks. The inclusion of this message has been interpreted as a commentary on the shortcomings of traditional financial institutions and the need for an alternative system.
In addition to the message, the Genesis Block also included 50 bitcoins that were awarded to the miner (Satoshi Nakamoto) as a reward for mining the block. These 50 bitcoins cannot be spent, as they are part of the first block in the blockchain and are considered a historical artifact.

Block explorers:

BCH

BTC

Be Your Own Bank

Roll of Bitcoin Physical Coins

How can Bitcoin can save people from failing banks?
Bitcoin, as a decentralized digital currency, operates independently of traditional banking systems and is not subject to the same risks as traditional financial institutions. Bitcoin transactions are processed on a peer-to-peer network of computers, and the ledger of all Bitcoin transactions (the blockchain) is maintained by a decentralized network of nodes.
This means that individuals who hold Bitcoin are not dependent on a centralized institution, such as a bank, to store and manage their funds. Instead, they have direct control over their Bitcoin and can store it in a digital wallet that is accessible only by them.
Bitcoin can also be used to make peer-to-peer transactions without the need for an intermediary, such as a bank or payment processor. This can be especially beneficial for people who do not have access to traditional banking services or who are subject to high fees or restrictions when using those services.
Additionally, Bitcoin is designed to have a limited supply, with a total of 21 million bitcoins to be mined. This limited supply and the fact that Bitcoin is not subject to inflationary pressures from government policies or economic events, makes it a potentially valuable alternative to traditional currencies and a store of value for individuals seeking to protect their wealth from the risks of traditional financial institutions.
While Bitcoin is not a perfect solution and comes with its own set of risks and challenges, it has the potential to offer an alternative to traditional banking systems and provide greater financial autonomy to individuals.

How did Bitcoin help the people in Cypress?
In 2013, Cyprus experienced a financial crisis that resulted in a bank bailout and a “bail-in” of depositors’ funds. As part of the bailout, the government imposed capital controls that restricted the amount of money that individuals could withdraw from their bank accounts.
During this time, Bitcoin was still a relatively new and niche technology, but it offered an alternative means of storing and transferring value that was not subject to the same restrictions as traditional banking systems. Some individuals in Cyprus turned to Bitcoin as a way to move their money out of the country and avoid the capital controls.
With Bitcoin, individuals could transfer their funds to a digital wallet and then send the Bitcoin to another individual or exchange located outside of Cyprus. Because Bitcoin transactions are not subject to the same restrictions as traditional banking transactions, individuals could move their funds out of the country without being subject to the capital controls.
While the use of Bitcoin during the Cyprus crisis was not widespread and did not significantly impact the overall outcome of the crisis, it did highlight the potential benefits of decentralized digital currencies in times of financial uncertainty and instability. It also demonstrated the value of having an alternative means of storing and transferring value that is not subject to the same risks as traditional financial institutions.

How does Bitcoin help the people of Venezuela?
Bitcoin has become a popular alternative means of storing and transferring value in Venezuela, where the country has experienced significant economic instability and hyperinflation. The Venezuelan bolivar has lost much of its value in recent years, and the government has imposed strict capital controls and restrictions on foreign currency transactions.
In this environment, Bitcoin has provided a means for individuals to store and transfer value that is not subject to the same restrictions as traditional financial systems. Bitcoin can be used to purchase goods and services, exchange for other currencies, or be held as a store of value to protect against inflation.
Some businesses in Venezuela have also begun to accept Bitcoin as a form of payment, providing an alternative to the bolivar that is more stable and reliable. This has allowed businesses to continue to operate and provide goods and services to customers, even as the traditional banking system and currency have become increasingly unstable.
Additionally, Bitcoin has provided a means for individuals to receive remittances from family members living outside of Venezuela. With traditional banking systems restricted, expensive, or unreliable, Bitcoin has become a popular means of sending and receiving money across borders without the need for intermediaries.
While Bitcoin is not a perfect solution and comes with its own set of risks and challenges, it has provided a means for individuals in Venezuela to store and transfer value in a way that is not subject to the same risks as traditional financial institutions.

What led to Venezuelan’s needing help from Bitcoin?
There are several government policies that have contributed to economic instability in Venezuela. Some of the key policies include:

  1. Price Controls: The Venezuelan government has implemented price controls on basic goods and services, such as food and medicine. While these policies were intended to make these items more affordable for consumers, they have also led to shortages and black market activity as suppliers are unable to cover their costs.
  2. Currency Controls: The government has implemented strict currency controls, limiting the amount of foreign currency that individuals and businesses can access. This has led to a shortage of dollars and other foreign currencies, making it difficult for businesses to import goods and services and for individuals to access foreign goods or travel abroad.
  3. Nationalization: The Venezuelan government has nationalized many industries, including oil production and distribution, telecommunications, and banking. While this policy was intended to promote economic growth and provide greater control over key industries, it has also led to inefficiencies, corruption, and mismanagement.
  4. Inflationary Policies: The government has pursued expansionary fiscal policies, including printing money and running large budget deficits, which has contributed to high inflation and a devaluation of the currency.
  5. Political Instability: Political instability, including corruption, repression, and protests, has also contributed to economic instability in Venezuela. The country has experienced significant social and political unrest in recent years, which has impacted business confidence and investment.

These policies, among others, have contributed to economic instability in Venezuela, including high inflation, shortages of basic goods, and a declining standard of living for many Venezuelans. Bitcoin is there to help.

Counterparty Risk

pile of bitcoins

Counterparty risk is the risk that one of the parties involved in a financial transaction will default on its obligations. In the context of currency, counterparty risk refers to the risk that one of the parties involved in a foreign exchange transaction will not be able to fulfill its obligations, leading to financial losses for the other party.
For example, if a company based in the United States enters into a foreign exchange transaction with a company based in Japan, there is a risk that the Japanese company may default on its obligation to deliver the Japanese yen in exchange for the U.S. dollars. This would leave the U.S. company with a loss, as it would have already delivered the U.S. dollars to the Japanese company.
Counterparty risk is an important consideration in international trade and finance, as it can have significant financial implications. In addition to the risk of default, counterparty risk can also lead to delays in payments or settlements, which can create additional costs and logistical challenges for businesses.
To manage counterparty risk, businesses may use a variety of strategies, including performing due diligence on potential counterparties, using hedging instruments such as forward contracts or options, and utilizing the services of third-party intermediaries such as banks or clearinghouses.
In addition, some financial instruments, such as derivatives, may themselves create counterparty risk. In these cases, the counterparty risk is not related to the underlying asset or currency being traded, but rather to the risk that the counterparty to the derivative contract may default on its obligations.
Overall, counterparty risk is an important consideration in finance and currency trading, as it can have significant financial implications. Businesses and individuals must carefully manage counterparty risk to ensure that they are protected from potential losses and disruptions to their operations.

Bitcoin reduces counterparty risk in several ways:

  1. Decentralization: Bitcoin is a decentralized digital currency that operates on a peer-to-peer network. Transactions on the Bitcoin network are verified by a network of users, rather than by a central authority. This reduces counterparty risk by eliminating the need for a trusted intermediary, such as a bank, to facilitate transactions. Because there is no central authority that can fail or be compromised, the risk of default or fraud is reduced.
  2. Immutability: Once a Bitcoin transaction is confirmed and recorded on the blockchain, it cannot be altered or reversed. This makes it difficult for fraudsters or bad actors to manipulate transactions or falsify records. It also ensures that the integrity of the transaction data is maintained, reducing the risk of errors or mistakes.
  3. Transparency: All Bitcoin transactions are recorded on a public blockchain, which is visible to anyone. This makes it easy to verify the authenticity of transactions and reduces the risk of fraud or manipulation. Because the blockchain is decentralized, no single party can control or manipulate the transaction data, further reducing the risk of counterparty risk.
  4. Programmability: Bitcoin’s blockchain technology allows for the creation of smart contracts, which are self-executing contracts with the terms of the agreement written directly into the code. Smart contracts can be used to automate and enforce the terms of an agreement, reducing the risk of default or breach of contract.

Overall, Bitcoin’s decentralized, transparent, and immutable nature, combined with the ability to create and enforce smart contracts, helps to reduce counterparty risk and increase the security and reliability of financial transactions.

Is inflation a form of counterparty risk? Inflation is not typically considered a form of counterparty risk. While both inflation and counterparty risk can lead to financial losses, they arise from different sources and have different implications.
Inflation is a general increase in the price level of goods and services in an economy over time. It occurs when the supply of money or credit increases faster than the supply of goods and services. Inflation can erode the purchasing power of money, making it more expensive to buy goods and services.
Counterparty risk, on the other hand, arises when one of the parties involved in a financial transaction fails to fulfill its obligations. This can result in financial losses for the other party, as they may not receive the expected payment or may incur additional costs to rectify the situation.
While inflation can have a negative impact on the value of money and the purchasing power of assets, it does not necessarily involve a counterparty failing to fulfill its obligations. Inflation is typically driven by macroeconomic factors such as changes in money supply, government policy, and supply and demand dynamics, rather than by the actions of specific counterparties.
In summary, while both inflation and counterparty risk can lead to financial losses, they are distinct concepts with different causes and implications.

Is inflation a form of default? Some economists argue that inflation can be considered a form of default because it can have a similar effect to a debtor failing to repay a loan. Inflation reduces the value of money over time, which means that the purchasing power of a given amount of money decreases.
In a situation where an individual or institution has lent money to another party, inflation can mean that the amount repaid is worth less than the amount borrowed. This can be seen as a form of default, as the borrower is effectively repaying less than what was originally owed in real terms.
Similarly, if a government or other entity with the ability to print money experiences high inflation, it can reduce the real value of its debts. This can be seen as a form of default because it means that the government is effectively repaying less than what it borrowed in real terms.
While inflation and default are not the same thing, some economists argue that they can have similar effects on creditors, in that both can result in a loss of purchasing power. This is why they consider inflation to be a form of default.
However, this view is not universally accepted, and other economists argue that inflation is a distinct phenomenon that should not be conflated with default. They point out that inflation can have a variety of causes, including changes in supply and demand, changes in production costs, and changes in monetary policy, and that it does not necessarily involve a debtor failing to repay a loan.
In summary, while some economists argue that inflation can be considered a form of default, this view is not universally accepted. The relationship between inflation and default is a topic of ongoing debate in the field of economics.

Naming names:
Economists who argue that inflation is a form of default include:

  1. Carmen Reinhart: Reinhart is a professor of economics at Harvard University and a leading expert on financial crises. She has argued that high inflation can be a form of “stealth” default, in that it reduces the real value of debt without formally defaulting.
  2. Kenneth Rogoff: Rogoff is a professor of economics at Harvard University and a former chief economist at the International Monetary Fund. He has argued that high inflation can be a form of “gradual default,” in that it erodes the real value of debt over time.
  3. John Cochrane: Cochrane is a professor of finance at the University of Chicago Booth School of Business. He has argued that inflation can be seen as a form of default because it reduces the real value of debt without requiring the borrower to formally default.

On the other hand, some economists argue that inflation is not a form of default, including:

  1. Milton Friedman: Friedman was a Nobel laureate in economics and a leading figure in the Chicago School of Economics. He argued that inflation is a monetary phenomenon caused by an excessive increase in the money supply, and that it should not be confused with default.
  2. Paul Krugman: Krugman is a Nobel laureate in economics and a professor at the City University of New York. He has argued that inflation is not a form of default, because it does not involve a failure to make payments or repay debts.
  3. Lawrence Summers: Summers is a former U.S. Treasury Secretary and a professor at Harvard University. He has argued that inflation is not a form of default, because it does not involve a failure to repay debts or fulfill financial obligations.

Coinbase Earn Update

Coinbase has added more tokens that you can earn by watching videos.

The full list of tokens at this point is:

  • Zcash
  • Basic Attention Token
  • DAI
  • EOS
  • Stellar Lumens
  • 0x
Screen shot from Coinbase Earn Product video on BAT

It is easy to watch these series of videos and they do a good job of explaining the basics of the different blockchains.

See more here: My Original Article on Coinbase Earn

SLP Token – Minting baton, Badger wallet, Bitcoin Cash

SLP Token

This article is meant to be a simple walk through for people interested creating a hobby SLP (Simple Ledger Protocol) token on the Bitcoin Cash blockchain.

Tokens were all the rage last year using the Ethereum blockchain. Individuals and Companies heavily used standard Ethereum tokens to fund their projects (and scam investors out of money). Perhaps the most famous Ethereum token sale was TheDAO. DAO is an acronym for Decentralized Atonymous Organization. As you may know, theDAO ended disastrously. However, many Ethereum tokens still show promise. Some of these are the MakerDAO and the BAT tokens.

There have been many interesting proposals for the use of tokens (some of them, frankly, I don’t understand). But people have proposed tokenizing precious metals, real estate, digital collectibles (including video game goods), and more.

Developers have worked to make it easier to create tokens for Ethereum and have developed protocols that tokens can conform to so that they can be held in various wallets, for instance.

It does not include the shuffle privacy feature.

The basic steps to create an SLP token with Electron Cash:

  1. Download the Electron Cash SLP wallet.
  2. Add some BCH to the wallet.
  3. Press the ‘Tokens’ button
  4. Press ‘Create New Token’ button
  5. Fill in the token parameters
  6. Optionally preview your new token
  7. Press the ‘Create New Token’ button

That is it! You will be able to see your new token information and look at it on the blockchain.

I do have some additional helpful hints and explanations for creating these SLP tokens that will hopefully make it even easier. I have also included pix and links from my first token creation: FST (farawaystars test coin). You may be able to see some of my mistakes in the screen shots that were made as I fumbled around with the tools 😀.

Starting at step #3:

After selecting the ‘Token’ tab, select the ‘Create New Token’ button at the bottom.
Enter in the parameters for your new token.
Here is my new token (notice the error in the URL).
Successful token creation.
This is the history tab in the Electron Cash SLP app.
This is the SLP history tab in the Electron Cash SLP app.
This is the ‘Tokens’ tab that displays my token balance.
On the Bitcoin.com website, I can see my token on the top of the list as the most recently created!

Now let us discuss the parameters that are available.

  1. Token name: self explanatory
  2. Ticker symbol: usually two or three capital letters
  3. Document URL: you can include a url that links to a document related to your token
  4. Document Hash: you can include an MD5 hash of a document (on a Mac, in the terminal application type: md5 [file name])
  5. Decimal places: for reference, BCH is 8 decimal places and ETH is 18 decimal places)
  6. Token quantity: Initial or full token supply
  7. Fixed supply: true or false
  8. Address for baton: if this is not a fixed supply, this text field appears. You can enter any valid SLP address here. Whoever owns that address can issue more coins. I have not attempted to transfer the baton for this article.

Minting Baton

My duckduckgo.com skills may lack, but I could not find any walk throughs on this parameter. Here is how I successfully minted more FST coins:

First, notice above that I unchecked ‘Fixed Supply’ and entered a ‘Mint Baton Address’. The ‘Mint Baton Address’ must be an SLP token address. I used an address containing a small amount of BCH that was in my wallet.

Select the ‘Tokens’ tab, then Control-Click on the token that you want to mint. The above pop-up will appear.
Tokens have been created!
We have a printing press here, look out for inflation! (Check out the new balance)

Distribute your coin!

Click on the ‘Send’ tab and enter the amount of tokens you want to send
Note the ‘Fee’. In the previous screen shot, I could not edit the fee or sign the transaction because the fee was too high. If you click on the ‘Settings’ button on the bottom of the app, you can select ‘Edit fee manually’ to fix this.
Preview the transaction
Transaction sent!
The transaction can be viewed in your history. (or a blockchain explorer)

Mobile app

I sent the FST token to an address in my Badger Wallet for iOS. Pretty sweet!

I referenced this article on Bitcoin.com and this article on Simpleledger.cash to get started with SLP tokens.

If you would like to read more about cool tools for BCH, read my article on CashShuffle.

Use Cashshuffle With BCH

What is Cashshuffle and why is it important? How does Cashshuffle work?

Privacy

One hears it often regarding privacy. A popular app introduces a clever or convenient feature that requires the use of personal information. A new revelation becomes public on the abuses of government surveillance or violations of privacy. These are the circumstances lead people to say, “I ain’t got nothin’ to hide“.

Pseudo-Anonymous

Satoshi Nakamoto called Bitcoin pseudo-anonymous. This is because transactions occur and create records with addresses that don’t include names. By looking at the public blockchain ledger, one can see the balance and activity for any given address, but not the name of the owner associated with the address (BCH Rich List). The combination of blockchain analysis tools and KYC and AML compliant companies have made the blockchain nearly completely public.

But BCH in particular is concerned about being a currency. This is important because, currency must be fungible. A currency is not fungible if the history of transactions makes one element of the currency more or less valuable than another element. For example, if some BCH was used in a crime, then a person may not desire that particular BCH as much as some BCH that had a clean history, because possessing the ‘tainted’ coins may bring unwanted attention to the current owner.

Enter Cashshuffle

Bitcoin community awareness on the privacy issue existed before I even discovered Bitcoin. Therefore, developers suggested and implemented various solutions to this privacy problem. A solution for BCH that I recently heard about is the CashShuffle tool. CashShuffle mixes coins from various participating wallets automatically.

CashShuffle is available on Electron Cash and is coming soon to the Bitcoin.Com wallet and hopefully more wallets soon.

For this article, I downloaded Electron Cash for the Mac. After downloading and opening the Electron Cash wallet, all of the expected and usual prompts occur. The wallet prompts you to name your wallet, write down your backup phrase and create a password for the wallet.

Screen Shots

Cashshuffle wallet being initialized
Create your new wallet.
Cashshuffle wallet in action
Electron Cash starts shuffling coins.
Coins have been shuffled (dark theme).

iOS App

I usually use BCH to make purchases on line. Therefore, the app for my desktop will probably be my primary wallet. However, there is an iOS client available in the App Store. This is dope – it means that I can easily access my private coins for spending when I am out and about. It increases the utility of BCH to have tools like this available. I am liking this wallet a lot, yo!

If you got value from the article or have questions regarding CashShuffle, email me or let me know in the comments below. Thanks!

Be a Fool For Christ, Fool’s Gold

Fool’s for Christ’s Sake, 1 Corinthians 4:6-13

I read this passage the NKJV Study Bible this morning. The language is striking so I checked out the footnotes (I don’t always do that). The footnotes really really did shed light no what Paul says it means to be a fool for Christ.

Starting with 1 Corinthians 4:6-7, the footnotes added value. In these verses, Paul is asking the church to remain humble. Apparently, this was not seen as a virtue in Greek culture at the time. Paul is asking the church to stand apart from the culture to be Godly. I was raised to understand that humility was a virtue, but I am not sure that is true of the broader American culture. I look at the winner of a recent popularity contest (2016 U.S. presidential election) who is anything but humble.

The Language in 1 Corinthians 4:8-10, if I gather rightly, contrasts the inflated egos of the church with how they are perceived from the outside. Paul observes the Corinthian believers are full, rich, and reigning as kings. Meanwhile in Rome, followers of Christ have become a ‘spectacle‘.

1 Corinthians 4:11-13 notes the contrasts of how the world viewed the Corinthians (former) and how they viewed themselves (latter):

  • fool’s vs. wise
  • weak vs. strong
  • dishonored vs. distinguished

Paul lists the suffering he has endured in his ministry: hunger and thirst, poorly clothed, beaten and homeless, reviled, persecuted, defamed, and made filth.

Yet, the apostles labor, bless, endure, and entreat.

If our own dignity smudged for the sake of Christ, we may count it as honor. So let me be a fool for Christ!

See my other humble ponderings: Guy Humble

Crypto Keys App

You may have noticed some neat symbols for various cryptocurrencies on Reddit.com and other social media pages. Perhaps you want to use some of these such as: ₿, Ξ, Ɖ, Ł.

Crypto Keys is a simple keyboard app. Crypto Keys makes it easy to insert popular cryptocurrency symbols, fiat currency symbols, numbers and punctuation. Crypto Keys allows you to insert symbols into web pages, text messages, emails, apps, etc. Share and make aware!

Crypto Keys now features a news feed. It offers interesting news and tutorials on different cryptocurrency related topics.

Check it out: Crypto Keys

Earn Tokens, Pay No $

I have been a Coinbase user for a couple of years now and just learned of a cool program Coinbase offers: Coinbase Earn. Coinbase Earn says you can: “Earn Crypto While Learning About Crypto”. Since launching in December 2018 and has taken me so long to discover this program, I want to share the knowledge by posting about it to spread the word the best I can!

The Coinbase Earn product allows users to learn about select cryptocurrencies and the needs they address. As of this writing, there are earn and learn courses for are 3 cryptocurrencies: BAT, ZEX, and ZRX. Also, as of this writing, a waiting list exists for enrolling in the program for each cryptocurrency. I put myself on the waiting list for all 3. I will update this post after I have finished each of the courses. Also, this post will update if any new courses become available.

On the waiting list to earn cryptocurrency

To find this product, go to Coinbase and scroll to the bottom of the page. Press on the link for ‘Earn’ and you will be taken to the Coinbase Earn product. You are then presented with a choice of cryptocurrencies to learn about. Even though this author was unable to immediately take any of the courses all is not lost. The cool thing is that short videos are available to preview on each of the cryptocurrencies.

The preview videos highlight the need that each particular cryptocurrency addresses. For instance: one of the videos notes that the Brave browser id faster, more secure, more private. One of the videos notes that 70% of the revenue generated by ads goes the user that views the ad! I am a huge fan of Brave. You can read more about Brave here. I highly recommend downloading the Brave browser.

One more note: the videos are short and entertaining.

Screen shot from Coinbase Earn Product video on BAT

The Seventy-Two

Jesus Sends Out the Seventy-Two
Luk 10:1  After these things the Lord appointed other seventy also, and sent them two and two before his face into every city and place, whither he himself would come.
Luk 10:2  Therefore said he unto them, The harvest truly isgreat, but the labourers are few: pray ye therefore the Lord of the harvest, that he would send forth labourers into his harvest.
Luk 10:3  Go your ways: behold, I send you forth as lambs among wolves.
Luk 10:4  Carry neither purse, nor scrip, nor shoes: and salute no man by the way.

KJV

Interesting to see that this was referenced here:

Numbers 11: 24-25
24  And Moses went out, and told the people the words of the LORD, and gathered the seventy men of the elders of the people, and set them round about the tabernacle.
25  And the LORD came down in a cloud, and spake unto him, and took of the spirit that was upon him, and gave it unto the seventy elders: and it came to pass, that, when the spirit rested upon them, they prophesied, and did not cease.

KJV

God uses groups of seventy (or seventy-two) that he gives incredible power to perform miracles. I like to just sit back and think about existing as a part of one of those groups. Or even seeing one of those groups in action.

Great and Mighty God make my faith great. Make it as if I had been one of the seventy-two that Jesus sent ‘as lambs among the wolves’.