Topic: [SKY] Skycoin Launch Announcement - page 114. (Read 381579 times)

What is that, could you push a link about that? I can't find any references to that Peter Thiel related operating system.

For proof of work, you will like Skycoin. You can swap out consensus algorithm. The consensus wraps the blockchain!

There are two currencies, there is "coins" and "hours". You receive a coin hour for every hour you hold the coin. So for PoS, you can choose the chain that has the largest coinhour burn since the beginning. Whenever there is a transaction, you have to spend half of the input coin hours across the outputs, but you can choose which outputs the coinhours go to.

If you have a checkpoint system to prevent forks older than a few blocks and you use coinhour burn for PoS, then Skycoin is 100% secure without doing any consensus network! The consensus network goes on top that that potentially. So network control is split between the consensus network and the owners of the coins.

So there is a balance of power and the consensus network people cannot do socialism. However, the consensus network itself is very important. It can be used to secure multiple ledgers, not just Skycoin!

The consensus network is like PGP signing party. It says "I exist" and that other people believe you exist. It is just a pubkey and you may have different identities in different communities. You may have four identities. So it is not anonymous, but pseudo-antonymous. Groups of people may even share a common identity, two different people may have the same identity, or each person may have multiple identities.  This is important for credit. Reputation and history has value. By stealing or defaulting or acting poorly, you consume or destroy reputational equity.

Reputation is very important for systems where there is only voluntary enforcement and courts cannot compel people to pay bills or settle debts. When you borrow money or write an option or contract that can only be voluntarily enforced, then the credit is extended against your reputation as collateral.

Eventually, this will allow people to take idle fiat and make loans. People have credit cards and are paying 20% APR to bank. Instead, you will take your idle fiat and do a peer to peer loan and the 10% or 15% interest will go to your pocket and users pockets instead of the bank. The interest rate you earn will be much higher than money sitting in bank idly, with a central bank setting interest rates at 0%.

If you need cash immediately, you can sell your loan portfolio or fractions of it (it is better to keep it concentrated and make loans to friends or friends of a friend, to make collection and settlement easier). So the loans are liquid. If you collatorized the loan with a third part against Bitcoin or Skycoin, then you can get interest free or 2% interest loans (secured loans). You get your full bitcoin back if you pay and the person is not taking any risk and still makes more money than having it sit in the bank.

You can do repo transactions. You sell Bitcoin to someone, get $500 and agree to buy back the Bitcoin at 2% interest at fixed price in future. You borrow against the asset and can be held by the person or by a mutually trusted third party. This gives people an incentive to save and to create fungible things that have value in commerce (services or claims for future goods), so that they can use these assets to secure risk free loans, for larger amounts than they can get peer-to-peer from local contacts.

That is why the consensus/trust network is important. It gives each person an identity and a web of trust. It gives them a transaction history and allows tracking of reputation. It lays the foundation for credit markets. This is more powerful and devastating than either Skycoin or Bitcoin as a token system. This is the death blow to the existing financial system, credit cards and taxes. This is what will drive four billion people who have cell phones but do not have access to bank accounts, into the crypto ecosystem.

The Skycoin Project is building that (it is actually almost completely implemented for over a year now), but we have no intention or ability or monetize it or try to centralize it in a way that we can control it. It would not make any sense to try to shove everything onto a single blockchain so that we can monetize it, instead of allowing a naturally decentralized, federated system.

This is also why you will not see venture capital investment here. There is no revenue or fees unless you can put yourself in a middle of the system, unless you can create gatekeepers like Bitpay and Coinbase. Bitpay and Coinbase have done a great service to Bitcoin and have helped it grow, but are only transitional. They are gatekeepers that will be eliminated

Bank Ledgers:

A bank may want to run a ledger and put their accounts on the ledger, so you can trade USD the bank issues or holds on the ledger. However, you do not want the bank to be allowed to control its own ledger. The bank does not want to control the ledger either because of regulatory issues. The bank enforces KYC on entry/exit (like Ripple gateways) but the community would control the ledger, or a network of other banks or 3rd parties that can be trusted.

This is Ripple, but with the bank controlling their own chain and able to offer any product it wants on the chain. There is no coin and no way for Skycoin to monetize this. We are giving banks a turnkey personal ledger for free and API standard. They can run this and then shutdown their SQL backups and move all their assets to a public facing chain.  They can cutout SWIFT and 3rd parties and go straight to interbank settlement with Skycoin (1 second settlement times) or Bitcoin or any other asset.

Foreign banks will no longer be hostage to being cut off from SWIFT. This is inevitable, but in geopolitical terms this is the kind of thing that will gets developers killed with something even more exotic than Polonium isotopes (which is why we are not working on it directly or becoming involved, in addition to our inability to monetize that capacity directly). It is five years out. There are already VC backed companies working on it. They already have working code. This is fucking happening. There are five teams on it, two VC teams and three secret darknet groups and it cannot be stopped.

The historical significance of this moment, will be equivalent to the detonation of the atomic bombs at Hiroshima and Nagasaki. The global balance of power will have shifted in an instant. Everyone will need to adapt to the new reality.

The Skycoin Project is based upon a common networking infrastructure, common libraries, common crypto. This means we "reinvent the wheel" but we end up with a common platform of very powerful, general, reusable libraries that can be used in multiple applications. You can also just pull in IPFS, ETH scripting language, Conformal's node implementation and cobble together a decentralized SWIFT and Ripple replacement in less than a month. Skycoin's infrastructure when it is done, will let you cobble together a bank offering four type of products to customers on a public facing blockchain , with peer-to-peer settlement without SWIFT in a weekend or in a four hour hackathon if you are good.

Currently, banks are a series of SQL tables. The settlement accounts between two parties are in one table in double entry format. Settlement accounts between banks for different currencies, are held by a trusted third bank. This means that three banks together, can collude and perform accounting fraud. They can sell Ruples they dont own or dont exist. They can fix exchange rates. They can maintain currency pegs through accounting fraud. This makes all the books public, eliminates the hierarchy, eliminates the third party ledger for interbank settlement between forex pairs. Eliminates SWIFT.

It actually makes banks obsolete and replaces them with a program like Bitorrent. Instead of trading EU or USD, you create an asset that is backed by Bitcoin and convertible to an amount in USD of USD at the current exchange rate and the remaining collateral is returned to person the asset. This is a synthetic USD or synthetic Euro that will track the price of fiat as long as the Bitcoin collateral is sufficient and the party holding the contract is trustworthy. This is what will kill fiat.

Ethereum is the only currency, that can do that without using a trusted third party. Ethereum has a token and can do enforcement on the blockchain without a third party. If Ethereum does this and gets away with it, it will exceed Bitcoin in capitalization rapidly. If it does this however, it will be attacked by the nation state, destroyed, shutdown, eliminated, discredited and there is a real risk the rest of the cryptocoin developers will be hunted to the ends of the earth and cremated. This is not an exaggeration, for reasons that follow.

Skycoin chose not to do this and chose to remove the scripting language for various reasons, including the above.

Ethereum does not control the blockchain or ledger so the above situation is likely to happen rapidly. When Satoshi released Bitcoin, the threat alerts were set off by libertarian, anti-statist hype mongering. Then they examined the Bitcoin technology and the policy response has mild and Bitcoin is allowed to exist.

Why Ethereum and other technological developments will get Bitcoin banned

Imagine there are two type of EUR dollars.
- One EUR is a 100 EUR bill issued by the government and is paper
- One EUR is backed by gold and is privately issued. It is a contract backed by a fixed amount of gold as collateral and that converts to 100 EUR in gold at the current gold to EUR price. A synthetic EUR bill. It may have a floor for convertibility.

The synthetic Euro substitutes for the real euro. It expands the monetary base in the EUR but was not created by and is not controlled by the government. It is superior to the real Euro and may have a price floor for convertibility.

If the backing asset is sound, the inflation rate of the synthetic Euro will be higher than backing asset. The peg only fails if the Euro appreciates against the peg asset significantly. For an inflating asset, it will always be replaced by a synthetic asset, backed by a sound asset.

We show
- how money can be created out of thin air using synthetic finance
- that money creation is no longer in control of the central bank
- how legal definitions and voluntary agreements affect what money "is"
- the government fiat Euro will be destroyed, both as a store of value and as a unit of account if this system is permitted, in the context of Bitcoin
- "money" or prices are just a system of relationships between capital flows between assets. There is a network of capital flows, not a hierarchy of assets. The ideology of money, the idea that "government fiat" is money, that government defines or creates money, is false or that government fiat is more special than any other commodity, is false. The idea that gold is special is also false. The idea that Bitcoin is different than fiat is religious belief, and mathematical false. Only the capital flows matter, not the properties of the asset, who issues it or anything else. If gold receives capital flows before or after a crisis, it is a matter of human psychology, not economics.

If gold is at 200 EUR/oz. If you issue 100 Synthetic EU against 1 oz of gold, then
- as long a gold price remains about 100 EUR/oz the SYN EUR will be worth approximately 100 EUR
- as gold price declines below 100 EUR/oz the contract will trade at below face value but never goes to zero
- there may be a price floor on convertibility (1/4th an oz of gold), limiting loss from EU quantitative easing and devaluation

The gold SYN EUR is mathematically equivalent to holding 100 EUR and the sale of a put option on 1 oz of gold with a strike price of 100 EUR. The put option sale, means you agree to buy 1 oz of gold at 100 EUR/oz, so your maximum loss is 100 EUR.

The SYN EUR plus the purchase of a gold put option for 1oz at 100 EUR/oz is mathematically equivalent to holding 100 EUR!

The assets are however not equivalent
- holding 100 EUR bill
- holding 100 SYN EUR and selling a put option for 1 oz at 100 EUR/oz

The price of the two asset portfolios are mathematically equivalent. However, the first asset has no counter party risk. The second asset assumes
- the gold collatoralizing the 100 SYN EUR exists, is not stolen, the party is not illiquid and has not rehypothecated the assets
- creates counterparty risk for the person buying the put option you sold. If you are insolvent you cannot meet the obligation if the contract is

If we could eliminate counterparty risk, we could take a stock or gold or anything else and produce one of these synthetic assets that was perfect.

What banks have done, is that they are trading 700 trillion in derivatives between each other. Global assets are 200 Trillion, including all real estate, every factory, every power plant, every publicly traded company, all gold, all Bitcoin, all commercial and residential property, every oil well, all ore mines. Every real asset that exists or can be owned.

Each bank in the cartel has a voluntary agreement and an international enforced agreement, that if one bank is insolvent or bankrupt (and therefore unable to meet its obligations as a counterparty in the derivative contracts it issued), that all the banks will treat the derivatives at face value, as if the counter-party were liquid and not bankrupt. For accounting purposes and legally. Even if the other bank has net value of negative three trillion dollars, if you looked at the debts it owns and the income and assets it has to pay those debts.

So the banks have created a perfect counterparty, with no risk of default by fiat. By fiat, the banks all have perfectly covered positions with no counterparty risk.



If one bank goes, every bank holding their debt  is now exposed to uncovered positions because they are effectively unable to exercise the options issued by the counterparty in default.

Using this strategy, the banks have been able to show balance sheet profits. No one understands how, or what they are doing. I do not pretend to know, or have any insight.

This becomes complicated, because each bank belongs to a particular government and the governments have different interests and internal politics. If a large player can get a large collation of these banks together and dump the German bank's options and use backing of gov or better players, they can rearrange the game, force particular countries into default. Force Germany to come up with 70 trillion in Euros to bail out the bank while keeping remaining collation standing.

All of the bank's positions are secret. It becomes a very complicated game of posturing, geopolitical alliances and threats.

Financial Posturing:
- threatening to cut countries off from SWIFT
- currency wars, devaluations
- hitting government oil revenues

Military Posturing:
- Nuclear subs invading territorial waters
- anti-satellite missile tests, "we can knock out the satellite you need to control your predator drones"
- joint military exercises "Germany may ally with Russia and China and form a super-bloc"
- hyper sonic intercontinental ballistic missile tests
- overthrowing governments and threatening to cut off oil pipelines
- invading territory to threaten to cut off access to ocean and naval power
- threatening to put a missile shield next door
- anti-aircraft carrier missiles
- submarines playing "peak-a-boo" with carrier fleets to say "We can sink you if we need to".

So you have
- a financial conflict
- a political conflict
- a national conflict
- a military conflict

Currencies and credit relations are social fictions. They are agreements on paper. Military force determines and renegotiates the structure of credit relationships. Without military force, claims that can be enforced only voluntarily are meaningless and cannot be enforced on a counterparty.

This is a transnational conflict. The conflict is not between states. People think in terms of Russia or China or countries, but outside of Russia/China nation states do not really exist. This is some kind of transnational conflict and does not have a good explanation in terms of national borders or regional elites. There is not a dominant interest group. There are international interest groups.

If the teams cannot decide it peacefully, then the last resort is physical force. Traditionally, the debt of the winning bloc gets wiped out and the citizens of the loser will suffer high taxes and austerity. This is what would happen in a world where power is controlled by a national elite representing each country and the interests of industry in that country. All economic production, finance, power is now transnational so picture is more complicated.

At the end of WWII, the US led Germany off the hook and built Germany back up industrially, instead of extracting capital from Germany like a colony, because US needed Germany to maintain the balance of power against Stalin. Similarly, the US conquered Japan, nuked two cities, interned the Japanese on the homeland and then after the war built Japan up as an industrial power, into one of the richest countries on earth.

Colonialism was a direct, hierarchical, system for the national interest of a particular nation. Today it is more complicated because the interest and power groups are now transnational and transcend borders or nation states. They do not care about the people within the borders of the nation they were born in. You see a trend towards open immigration, between borders being dissolved. Nationalism is no longer relevant as a concept.

Similarly, war is no longer relevant as a concept. War is just the use of force. Most of the wars are against groups or against economic interests, not other nation states. The line between nation states, private security forces and terrorist/insurgency groups is gone. There is no clean line. War no longer has enemies, is no longer against countries, no longer has military objectives and is no longer confined to borders.

The national interests of citizens in any particular territory, do not matter, even through "voting" is still along national boundaries, it has increasingly become vestigial and irreverent.  The EU rulings override the national congress the constitution of the member states and the body is not elected by the citizens of the EU member states. The EU has the ability to remove the democratically elected president in member states and replace them by an EU appointee. So even the rituals maintaining the illusion of "democracy" is being dropped.

 There are power blocs and they are transnational. There are new emerging power blocks and "the empire" is trying to bring them under control. The empire is not the US, but was centered on US or began there. All of history is a rationalization. It is a narrative, but the reality is in the network and mathematics and diffuse groups with competing interests.

With the emergence of super-national elites, you now have super-national state building. State building is the process of creating a hierarchy of subjugation. A socialist collective, that is powerful enough to dominate any individual or group in the society. You tax farm people and resources (extraction), you use the extracted resources give rewards to those that reinforce the hierarchy (carrot) and you create punitive measures to beat those who resist (stick).
- ability to imprison
- ability to harass
- ability to seize assets (bank accounts, property)
- ability to tax
- dependence on the hierarchy for protection
- dependence on the hierarchy for enforcing property rights
- dependence on the hierarchy in any form

In a federal system, if Texas rebels and tries to extract itself from the hierarchy, then federal troops come in and reimpose themselves. If a bloc of the southern states breaks off because it is between off economically outside of the hierarchy, the hierarchy comes in, masses and reasserts dominance.

A transnational elite, means that if a country rebels from the hierarchy, Yugoslavia or something, then a transnational force comes in. The UN comes in. A hundred years from now, if the western United States breaks off, then it is occupied by Russian and German troops.

Basels is a transnational elite and they are trying to broker a new deal. A world currency or a super bank or transnational agreements that bind and lock up the banks. Banks are no longer part of countries, but are now part of a transnational super entity. Banks cannot survive anymore independent of the super entity. Part of the struggle, is that Brazil, China and Russia do not want to be assimilated into the super entity, because assimilation is against their national interests. They may need to be assimilated by war if negotiations fail.

Communism, lost to capitalism because capitalism was more effective at looting and acquiring resources to reinforce the hierarchy. Capitalism let people keep their property, but extracted the income generated by the property. A larger share of wealth and labor was siphoned off to fund hierarchical subjugation and achieve buy in to the system, under capitalism than communism. More people were invested in the system and had an incentive to keep it going, even if everyone was collectively worse off.

In the beginning, typically, there are groups of elites and they have their own armies, their own militia. They enforce their own property rights and the property rights in their domain. They have gold and you cant take it because they have an army. They have land and you cannot take it, because they have an army. They collected their own taxes. First a dominant elite disarms the other elites. Then everyone else becomes dependent on the dominant elite for protection (they might disarm everyone and then pay some bandits to loot or invite some violent immigrants or terrorists into the country to reinforce people's demand for government and protection). The dominant elite, then centralizes tax collection and it collects from each individual. It levels the aristocracy and nobility to the same level of slavery as the serfs. All are equal before the socialist collective of massed centralized power.

Ideologies and jingles are created that rationalize the legitimacy of the centralization of power. People are told that the government represents them and they they elect the government, but citizens are not allowed to participate in government and do not have any control over government
- people "vote" but dont choose who the candidates are
- people are not involved in choosing the laws. The bills are not even posted to public for days after they are passed or signed.
- the political parties choose the voters in each election through gerrymandering. Districts are dynamically rearranged to fix elections regardless of what politicians do.
- the vast majority of voters are public unions and people who benefit and depend on the state
- citizens dont participate in budgeting and have no control over what government spends money on
- in the EU a committee of people no one elected, override the constitutions of the member countries
- the "elected" "representatives" of the voters, are not allowed to read the bills they are voting on (Patriot Act, Obamacare, Bailout)
- the government lies to the public, controls the media narrative and has 9000 pages surveillance files on even non-political reporters at vice. The media is owned by four corporations and journalist who do not represent the views of power are removed. Every dead journalist is a "suicide" and the numbers do not match up to countries we have accurate data for.
- The media alliance with government against the public can turn "CIA anal rehydration" and murdering prisoners into a debate about waterboarding. Torture is "waterboarding" and media does not even mention "anal rehydration", torturing prisoners by making them roll around in feces until they develop sepsis, rape or boiling prisoners alive and mailing the body to their family.
- you do not have a right to bring charges against the government for violating the law
- members of the government are above the law and have qualified immunity and cannot be prosecuted. Even a lowly police officer can taser someone to the ground, flip them over face down, stand up, pull out a gun and execute them. Imagine what politicians, banks or the CIA/FBI can do. The law only applies to citizens. It does not exist to restrain power. It cannot restrain power.

There is no center, no edge anymore. It is just a blob of groups fighting for power and creating new means to extract, centralize, punish, rewards. New technologies of control.

The police used to protect citizens and were under control of a sheriff. If the police shot someone, the sheriff had to respond and was accountable to the community. The police existed to protect the community. Now police exist to tax farm citizens with $500 traffic tickets and go into minority neighborhoods with arrest quotas to fill prisons, to create supply of prison labor for defense contractors and the Fortune 500.

The public is the enemy.
- the media emphasizes that police are murdering people. That the police are the enemy of the people.
- the media emphasizes that people are the enemy of the police. That every citizen is a potential cop killer and its us or them.
- in rural communities, where the police and people communicate they have a common interest in opposition to tyranny. That interest must be broken and replaced with antagonism
- if the alliance of two groups and their common interest can stand against power, the two groups must be driven into a false conscientious of antagonism. All opposing power centers against increasing centralized power must be destroyed.
- when a TSA agent is killed, the public cheer
- the police are dressed up as an occupying force, act like an occupying force and people treat them as an occupying force
- the power over the police is shifted from the local community to the federal level.

We are transitioning from a nation power hierarchy to a transnational order. The nation state must be destroyed
- the common language, common culture, ethnic homogeneity that created the nation state must be destroyed through immigration
- the borders must fall
- national pride, symbols of the nation state, religion, history must be eliminated
- citizens must be disarmed. They must not be able to protect themselves against threats. They must be dependent upon the state for protection. They must not be able to form community groups to provision protection of life or property. Crime should publicized to drive demand for a larger, more powerful central hierarchy to "protect", even as police become even more corrupt and are indoctrinated to perceive the public as enemies.
- the family must be destroyed

I have no idea what the objective of some of these things are. Media agenda is very clear. Not clear if it is an organic process or driven by an agenda. We are seeing increasing backlash as control of media is lost, suggesting this is top down.

Groups must be divided in antagonism and false consciousnesses to divide and segment. Each group must perceive their own interests as being in conflict and antagonism with every group they share common interests with
- the wife must be pitted against the huspand
- the police must be pitted against the public
- the public must be pitted against the government (who they supposedly control, in ideology but not in reality)
- the benefactors of economic production must be pitted against the productive class of society

The largest threats to the power structure are the institutions that enforce the rule of law. Police or military control the use of force in a territory and can shutdown the power structure and sever its ability for extraction.

The military must be weakened, demoralized. They must be given absurd hats against their will, they must accept transsexuals, drunk men should be severely punished for "sexual harassment" while homosexuals may rape without consequence. Everyone but the most ineffective and corrupt must be weeded out. There will be a constantly shifting series of absurd and contradictory ideologies, whose only purpose is to weed out sane people and test for ability to obey and conform to irrational ideologies. There will be an increasing series of absurdities designed to drive sane people out "If you see an insurgent about to fire an RPG at your helicopter, you may not fire at them, until they have launched the RPG at the helicopter". Corruption will be glorified, torture will be accepted and justice will be punished. Truth and morality stand in opposition to power.

Foreign troops and mercenaries are effective for a domestic occupation. At some level of corruption, an effective domestic military and police force become the largest threat to the growing abuse of power.

The most important institution keeping the power structure in place,
- the banking system, especially the regional FED banks, which are required for interbank clearance
- ability to print money
- the taxes collected from the automatic income tax withholding on the Fortune 500 employees.

The system cannot be dismantled without the consent of a transnational and highly redundant group of financial institutions who are also the primarily beneficiaries of money printing.

I think that people will flee and that any hope of reform or a successful confrontation, does not exist.

Repo Markets

Companies are no longer using dollars. That is why the money velocity has dropped. Interest rates are zero but banks are no longer making loans. Dollars are the unit of account but are no longer the store of value.

To obtain funds, a corporation
- holds stocks or bonds
- gives someone $100 in stock, for $100 with an agreement to buy back the stock at a fixed interest rate later

Corporations are using the dollar as a unit of account, but no longer use the dollar as a store of value. This has already happened. That is one reason money velocity is dropping.

If you have two asset pairs, you can create a synthetic asset. Gold, Microsoft Stock, Pogs, Bitcoin, USD. Its the same.

I can take USD and create paper gold. The asset is
- SYN(GOLD, USD, $400, 200 USD/oz)

The synthetic asset is a 4-tuple of
- the asset unit being created
- the asset it is being backed or collateralized with
- the total amount in the collateral at originating exchange rate (or current exchange rate)
- the conversion rate or strike price for the contract (current rate)

This means that is I have dollars, then I can print synthetic paper gold. This substitutes for gold and allows gold supply to expand with fiat. Therefore gold price will not reflect "real gold" but real gold, plus synthetic gold.

However, if Gold goes up in price too much, then the synthetic gold caps out. There is a spread between the synthetic gold and the real gold. In this case, I put up a fixed collateral, so it is difficult to keep SYN(GOLD,USD) tracking GOLD if GOLD increases too much. In the actual market, the backing is by an institution, not a fixed pool of assets. This mean that loses are unlimited to institution, but it also means that manipulation is easier and government can be used to keep spreads closed. Paper gold would be expected to expand with monetary inflation in fiat and substitute 1 for 1 for physical gold.

You can do
- SYN(GOLD, USD, $400, 200 USD/oz)
- buy a call option on 1 oz of gold at $200

If the backing (the dollar) gets wiped out, then the monetary base of gold will contract to physical gold. Suggesting price could increase.

Synthetic Finance: Fiat Currency Death Spiral

So if I am a bank, I can
- take collateral such as gold or other collateral grade assets
- mark the assets to market
- create synthetic stocks, synthetic gold (paper gold), synthetic Euroes

The death of fiat is Synthetic Fiat

The government Euro
- is controllable. It goes through banks that meet KYC requirements
- it can be taxed and tracked
- can be controlled at borders
- takes days for transfers
- government controls the monetary base

The synthetic Bitcoin/Skycoin/Ethereum backed EUR
- does not go through banks
- cannot be taxed
- cannot be controlled at borders
- takes seconds or minutes for transfers
- drives up demand for Bitcoin/Skycoin/Ethererum as collateral while reducing the demand for fiat (which is being dumped)
- this is a death spiral for fiat currencies

This is exactly what companies are doing in the repo market right now, but with stocks instead of Bitcoin. This is why countries keep falling back to a gold standard throughout history for hard money. It is only through force of law and empire that fiat keeps being re-established.

This is also what bank are doing right now with their 700 trillion in options.

"Good money" does not "Drive out bad money", good money collateralizes and creates synthetic bad money (through options, synthetic assets and repo transactions). The Fortune 500 has already done this. The governments are creating regulations on the "shadow banking" system to drive companies back to holding cash. The government has had to come in and undercut the interest rates in the repo market, by offering repo transactions through the central bank directly.

People who have excess capital, pile that capital into better assets. Then they use those assets as collateral for the shittier, inflating, government currency. They do repo transactions, where they borrow the asset to someone for cash, with an agreement to buy it back at interest later.

Technology and the great powers: DARPA Coin

Bitcoin, Skycoin, meshnets, twitters. These are just pieces on the chessboard in a larger struggle for power. Technology, resources, public opinion, territories, non-state actors, NGOs. Everything that exists is a pawn in the game between the great powers.

When Satoshi created Bitcoin, as soon as it came on the radar he nominated Gavin Andresen and had him go to the CIA and explain it. They are always interested in new technologies and whether they are useful for their operations and whether they pose a threat.

Instead of being on the defensive and having to explain, how they can stop Bitcoin from being used to fund insurgency, they should be pushing Bitcoin and explaining how Bitcoin can be used to fund the correct insurgencies.

Skycoin has to work with the CIA, State Department, Department of Defense and other stakeholders, to avoid polonium poisoning.
- The government funded Tor. The lead developer on Tor hates the government, would run NSA agents over in parking lot if he saw them, is on a terror watch list and his salary is paid for the by Navy.
-- Tor lets US diplomats overseas securely check their emails without interception by hostile governments. However, there are so many highjacking, man in middle attacks, injecting trojans into PDF files on the wire that a new second generation tor is needed, now that the security problems are coming to light.  This is basically Skywire.
- The State Department funded the commotion wireless meshnet project and tested it in the Occupy Protests.  They want to use meshnets over seas to "spread freedom and democracy".
-- By creating protester groups, they can collect intelligence on the ground and can put pressure on foreign governments
--  They need to be able to communicate with people in countries that are firewalled, have balkanized networks and where government may shutdown Facebook/Twitter and text messaging during a protest.
-- Facebook/Twitter are not just blocked, are are covertly monitored and used by governments to identify and intern the protest leaders. Dictatorship can more easily control dissent, not by blocking social media but by using it to identify and neutralize leadership of opposition. A second generation social media infrastructure needs to be developed, that protect protesters against government, while enabling operational capacities of social media to organize and inflame dissent.
-- They want to do open source information gathering and get intel on the ground in countries whose networks are firewalled.
-- They want to develop "swarming" capacity and be able to feed information to protesters, crowd source information gathering and direct protesters on the ground like an RTS game to evade or distract police.
-- Swarming allows crowds of hundreds of highly organized people to materialize from a crowd in seconds, achieve an objective and then disperse before any reaction or response is possible. In a crowd of 5000 people, 250 random people may be carrying Molotovs, may all be positioned to targets and synchronized by cell phone to throw them at the same time over four block area, torching 250 police cars in five seconds for a photo event and then disappear into the crowd. There is no way to identify the protesters and it is impossible to respond or even close off area to contain flight. The State Department is developing netwar capacity on ground.
-- They want plug and play mesh networks with satellite uplinks in a suitcase, they can quickly drop in the country to coordinate assets on ground, in hostile territory.
-- They funded Lantern, to allow communication in firewalled countries. Without a free internet, it is impossible to get the ground intelligence and organize opposition groups. Lantern is the first piece of software that breaches the Great Firewall that cannot be blocked. It operates peer-to-peer and in response, the Chinese government has ordered ISPs to put all users behind a NAT firewall so they cannot communicate peer-to-peer and are forced to go through government registered servers. See: https://en.wikipedia.org/wiki/Lantern_(software)
- The Department of Defence spent eight billion dollars for the SDR technology Skywire hardware is based on.
-- They are very interested in multihoming , multipath routing and radios that can change frequencies based upon conditions because networking conditions on the battlefield are very choppy and unreliable, even without active jamming. If a satellite is shot down or jammed, then they lose control of drone. Without a human pilot, a drone with a communication link cutoff and cannot make decisions or respond to changing battlefield conditions. They need multiple network paths, redundancy and ability to rapidly configure connectivity in the "battlespace" on a second by second level that is not possible with existing networking protocols.
-- For redundancy a drone may have a satellite uplink, a line of sight communication link to another drone, communication links to vehicles on the ground and may have a hardware package to hack wifi routers to gain internet access. Existing networking protocols cannot effectively utilize drone mesh connectivity.
- DARPA wants a duel use emergency/civilian/military network. For their flying space cars.
-- DARPA developed project ARA, originally as a modular hardware system for military, allowing soldiers to swap out sensor packages, radios, equipment on the fly. Now it was taken over by Google and is a mass market civilian cell phone.
- CIA is upset at Bitcoin because it does not meet any of their operational needs. If they actually intended to use this in the field, the bitcoind API would have been changed and not be in its current form, which is horrible. Bitcoin was not designed to be used.
-- SDRs do not have the tracking and location identifiers of wifi and cellular devices, which otherwise allow identification and movement tracking. They offer encrypted, deniable communication in a civilian device. Software can be hidden in firmware so that it cannot be detected by imaging phone.
-- Google glass and augmented reality, allows you to set way points and move insurgents around on a satellite map like an RTS game.
-- peer-to-peer market places and augmented reality allow you to rent protesters by the minute for Bitcoin and move them using GPS way points like an RTS game where you smuggle cocaine for Bitcoin to buy crowds of protesters to topple communist governments.

Technology is "neutral" and part of the field. If Bitcoin is not in news liberating world from axis of evil, then no one is using it. I have been waiting for Bitcoin to leave the "toy" and proof of concept stage for years and I have not seen it move any closer.

>Projects:

NXT had less than 10 people in the IPO. There was a huge and "unfair" concentration of wealth. This is both "unfair" but it is also why NXT is so successful. It allowed the NXT project to fund a large number of high risk, speculative and R&D projects and make significant advances. NXT took a painting, split the ownership share of the painting into a million pieces and began trading it on the blockchain. It was the first publicly traded painting.

We need to make sure that massive amount of Skycoin money goes into these types of projects and open source infrastructure. We need to maximize the rate of capital good investment and knowledge investment. Bitcoin failed to go singularity because all the money in Bitcoin's increase was extracted by the miners, speculators, mining pools and thieves. Every dollar from Bitcoin went to consumption, instead of investment.

If Bitcoin had taken even 300 million dollars of its 8 billion dollar peak market cap and dumped it into crypto projects and infrastructure, the positive feedback on the valuation of the whole crypto space would easily offset the money spent by ten or a hundred times invested capital. None of the money from Bitcoin's rise, ended up going back to prime positive feedback loops for crypto adaption.

Projects such as darkwallet and SX, which had fiscal multipliers (dollar increase in market cap per dollar invested) is at least 200 and yet the team was unable to raise even $20,000. Bitcoin is a failure as a social experiment. It created the wrong incentives and became an example of the free rider problem. Everyone has hundreds of millions of dollars in Bitcoin and people are buying whole housing development projects, but projects that could increase Bitcoin market cap by billions of dollars, cannot even raise $10,000.

The more I think about this, the more upsetting it is.

We have personal blockchains and you can run ETH scripting language inside of it. So it lets everyone have their own Ethereum blockchain. We also have a prototype for a new scripting language that was inspired by Peter Thiel's fully functional operating system project he funded. There are a large number of projects we want to fund, for pure R&D.

>And now I am leaving. Not because Skycoin didn't say "how hi" when I said "jump" but because he is already invested in his current design. And I would be doing something different if I did an altcoin.

I want to talk to you more, but IPO was supposed to be three weeks ago. I have to get this out of way. I want to start on the fun stuff and hiring people.

I want your feedback, especially on technological issues, economic issues and design. You are one of the only people in the world who knows what is going on or has a valid opinion.

Instead of being "right or wrong" you have to understand why people believe things. There are multiple systems of belief and they are correct in their own way. So the truth is not "Hyper inflation or no hyperinflation" but there are multiple systems of belief. You have a consistent system of belief and are able to reason using different systems at the same time. You are able to articulate the system explicitly, so that I cannot disagree or agree, but it is true internally. It is a facet of reality.

People who are about to do that and use meta-systematic reasoning are rare and very valuable.
- The majority of humans are animals, ruled by impulse, violence.
- Some humans can follow rules and copy others and use tools. They can be taught to perform and action over and over again, like operate a cash register. They are controlled by impulses, myth and indoctrination.  They are unable to even have a model and reason through it and hold consistent beliefs
- The top 10% of humans can hold a belief system and reason within that belief system. They can construct rules, apply the rules to scenarios and predict what will happen. They can set goals, reason about actions and predict how actions will work in the world. This is level of an economist with a particular ideology (even if it is wrong)
- the top 1% or 0.1% can hold multiple systems of thought with different rules, can reason using different systems, can examine the properties of systems of thought, can contrast and compare the systems, can discover and reason about the properties of sets of rules as a whole (metasystematic reasoning) and evaluate and choose between systems of thought based upon data.  Everything you write is at this level at-least.  You can see straight through propaganda as just another system of thought, that benefits one power group over another. That is why you are so cynical. You can see that systems of thought are being created and imposed. That there is not a single correct system. Your writing is over head of vast majority of humanity.
- There may be a higher level, where new systems, new systems of thought are synthesized. This comes from experience with thought systems and combining different systems of thought from different domains. Your synthesis of the "knowledge-production" and "interest rate-debt" system is novel. This level is the level where all new systems of thought are produced, which then become adapted through social processes and get pushed down to lower levels on the masses. This is top 0.0001% and at level that changes course of history.

So
- Level 0: Sensorimotor stage /  Preoperational stage
- Level 1: Concrete operational stage
- Level 2: Formal operational stage
- Level 3: Meta-systematic stage
- Level 4: System Synthesis, Transcendence, Genius

Your writing is at level 2,3,4. You are reifying systems of thought and turning them into objects, with properties and operations that can act upon the system of beliefs itself. You are synthesizing new systems by combining existing systems ("knowledge-production" and
"interest-debt").

New York times is at level 0,1 and sometimes 2 but rarely. Politicians do not even reach level 3. Socialist and rallying a group to fight against an enemy or warning a group about a threat that requires collective action is an appeal to level 1 and level 2. Leaders do not need to use higher levels and leadership at the higher level in effective, because it goes right over the herd's 6th grade reading level.

That capitals flows will get cut off is a possibility and worth discussing. If that happens, even partially, it will surely have effects, Dark Age or not. You cannot just ignore it or declare it not so.

I messaged him. My hard disc on my bitmessage computer is full from that spam attack. I had to reformat and get old private keys ported over to the new computer.

>this post will get ignored...as with 90% of the posts here in attempt to reach skycoin.

I am not ignoring anyone. I am locking computers down for the IPO.

I just got through twenty hour of AnonyMint posts and I should get some work done today

---

This Article on Ethereum is very exciting.  http://motherboard.vice.com/read/smart-contracts-sound-boring-but-theyre-more-disruptive-than-bitcoin

I dont believe ETH has everything worked out or that it will be final form of the technology. I do not believe ETH will be able to capture most of the value being created either. However, this is a definitely a major step forward and it is very exciting.

this post will get ignored...as with 90% of the posts here in attempt to reach skycoin.

dont bother man. the dev is the genius but also the downfall

skycoin, can you give any details about yourself ? i.e. which firms have you worked for, what did you study, where?

You've got that backasswards. I didn't need to come here. I was asked to.

And now I am leaving. Not because Skycoin didn't say "how hi" when I said "jump" but because he is already invested in his current design. And I would be doing something different if I did an altcoin.

I think we would waste each other's time talking. I am don't want people pressuring Skycoin. That is not how working relationships are formed.

Again my best wishes to everyone. You have every right to proceed and I wish you well in your endeavors.

Skycoin you are doing exactly that...


That is a lot of self-flatulating bullshit.

Please.

It took him over a year to even acknowledge that he was aware of skycoin, let alone have in-depth conversations and possibly working together all of a sudden now.

I'd have brushed him off too.

we are doomed, iamback got ignored

via freequant

Ship first ship first
one killer Feature first , please listen skycoin

You misinterpreted my criticisms of other altcoins as being a perfectionist on shipping code. I ship first, perfect later. I don't mean ship buggy code, I mean perfect the feature set later. I am very perfectionist about shipping quality code, but I prefer to focus on a narrow set of initial goals. My comments about other altcoins were critical about trajectory and priorities.

I prefer to focus on one killer feature that drives adoption, than to deliver a complete product that does every feature imagined to be important yet really aren't essential.

P.S. I am not trying to pressure Skycoin. I was asked to comment here, so I did. I offered that there might be a potential for us to work together, but we would need to cover a smorgasbord of issues in private discussion to determine if we have that synergy or not.

Note it is quite typical for programmers to want to have control and protect their baby and objectives. And sometimes there is justification for it. Any way, this is an example what we can cover in private discussion if ever.

My dream team would be mr. Skycoin + AnonyMint no doubt.

I just fear both are too perfectionists to get a project actually completed unless it's just perfect, and nothing ever will be.

Wtf skycoin. Just private message him And discuss ideas. It's better than being the solo developer with no help

How you gonna hire anyone or attract any developers by being so stubborn

So far it just appears to be just you, no one else

So now that is enough posting here. I hope everyone can see why valuable time can be lost trying to convince others to adopt a certain perspective. People instead tend to surround themselves with "yes men" who support their existing perspective and thus often do not maximize their success.

If Skycoin is interested to discuss specifics, we can talk in BitMessage. Otherwise, I need to move on. My best wishes to all.

Let's not lose too much time to somewhat off-topic tangents, but I just want to interject that Armstrong's model gives daily, weekly, and monthly trading information for numerous asset classes and even political economic issues. And the model has correlated repeating cycles (of human and nature) throughout recorded history. So he is able to make very time specific predictions, such as predicted the top of the Japanese stock market to the day and predicted the closing price of oil for Dec 31 2014.


I wrote similarly recently:


Here is Armstrong's post about that scandal:

http://armstrongeconomics.com/2014/05/21/21188/

That is a very long and detailed article.

My pleasure to become acquainted with you.

I've been away from analyzing crypto-currency issues for the past few months, so I will need to reload the technicals in my mind, so that my posts will be more focused and astute. I began that process last night by running the various design options and issues through my mind while eating my dinner.

P.S. It is unlikely that any of us would remain anonymous to the NSA if we were developing a serious altcoin. I think we need to be realistic about that.

Agreed. Focus is essential.