Bitcoin Podcast

Episode 2

Bitcoin and other Cryptocurrency

Most simple explanation.

https://www.youtube.com/watch?v=s4g1XFU8Gto

 

    1. What is blockchain?
      1. http://www.coindesk.com/information/
    2. What is bitcoin?  http://www.coindesk.com/information/what-is-bitcoin/
      1. Decentralized and independent form of currency
        1. It’s not controlled by any government. It’s harder to manipulate through inflation.
        2. It’s limited in the amount that could ever exist. Only 21 million ever.  Deflationary, not inflationary.
        3. It’s good for investors, not borrowers.
        4. A digital currency that solves double spending.
      2. Inventor of Bitcoin? Satoshi Nakamoto
      3. Digital:  
        1. It’s a natural fit in the internet age.  
          1. It’s easily transferred through the internet from person to person or organization.
          2. There are few, if any, fees for using it.  
          3. It cuts banks out of its transactions.
      4. Security:
        1. Bitcoin can be purchased anonymously.
          1. Pros:  
            1. No one knows you have it.
            2. People can engage in transactions only between themselves.
            3. Increased control over your money.
            4. Your money is your money.  No one can take it from you if they don’t know you have it.
            5. Removes the ability to launder currency.
            6. Unstable nations can use the currency without having to mint their own currency. (http://www.coindesk.com/ben-parker-bitcoin-has-potential-in-fragile-states/)
          2. Con:  
            1. Makes it easier for illicit transactions to occur
            2. The current inability to tax cryptocurrency could lead an adversarial stance by governments.
  1. Government responses to its use:
    1. Japan recently made bitcoin a legal method of payment http://www.coindesk.com/japan-bitcoin-law-effect-tomorrow/
    2. USA
      1. USAA has engaged in trials using Bitcoin.  They went well.  http://www.coindesk.com/usaa-yes-bitcoin-trial-coinbase/
      2. Nevada has banned blockchain taxes:  http://www.coindesk.com/nevada-first-us-state-ban-blockchain-taxes/   https://www.leg.state.nv.us/Session/79th2017/Bills/SB/SB398.pdf
      3. IRS is trying to figure out how to tax it:  http://www.coindesk.com/the-irs-will-present-its-digital-currency-strategy-to-congress-next-week/ https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance
  2. Conclusion:  
    1. Bitcoin and other blockchain currencies are likely here to stay.
      1. Laws are being created around it.
      2. Value is increasing, but there is risk of losing money.  

Extra Reading:

  1. Bitcoin boom explained. https://www.weforum.org/agenda/2017/05/what-s-driving-the-bitcoin-boom-here-s-what-you-need-to-know/?utm_content=buffera19ac&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
  2. U.S. attempt to integrate cryptocurrency into the fold? https://www.theguardian.com/technology/2016/nov/27/coinbase-bitcoin-irs-government-summons-data-cryptocurrency
  3. Short article about the treatment of a crypto currency by the IRS. http://www.pymnts.com/news/bitcoin-tracker/2017/did-the-irs-overstep-with-coinbase-summons/
  4. IRS guidance for cryptocurrency. https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance
  5. A basic history of Bitcoin’s origins; and experts weighing in on ramifications. Skip ahead to 1:00.  https://www.youtube.com/watch?v=k0HmrSfJwhU

 

  1. Very Technical Information: Warning, It gets into the weeds. https://www.youtube.com/watch?v=l9jOJk30eQs
  2. Most simple explanation. https://www.youtube.com/watch?v=s4g1XFU8Gto

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