Authentic Medicine

As you hear all the time, there are many ways that blockchain technology can be used.  Here's how I think a system for insuring authenticity could work. It requires a lot less administration than current systems and integrates a low maintenance international loyalty system. In places life Africa where medicine is often stolen and or tampered with it could make a big difference.

It might be possible to even integrate a gps log into the qr code. This could offer further useful information and help fight crime. Private keys could even be inside the package, kind of like a cereal token in your pills. There are heaps of possibilities there. By empowering the customer to use their qr scanning phones we can make it do the verification for us and everyone wins. Coin prism gives you your own crypto token. We just need to do a little programming and make some stickers.

Bitcoin Fly

AI Trading Starts - Bitcoin Can Save us from the Terminator

In December Stephen Hawkins said that "the development of full artificial intelligence could spell the end of the human race" What a crack pot! you might say. But hang on a second. This is the same guy who we have collectively made the authority on the structure of the universe! In this day it is disturbing how many people don't know about the concept of the AI singularity. Its sad to say I find jokes on the subject tend to"flop" quite "tera'bly.

So last week when a company like Bridgewater announced that it will be switching on its new AI algorithm Trading system you feel like you need to publish something. http://www.bloomberg.com/news/articles/2015-02-27/bridgewater-is-said-to-start-artificial-intelligence-team

The statement about 'Learning' is the key to it and what the compute learns who knows, but we better start taking notes. Already computers trading programmed algorithms perform hugely better than our professional traders on the stock market and it was a long time ago that Watson beat our best player at a game of chess. These systems however didn't actually learn much if anything, they were pre-programmed with a lot of information to apply to the situations. 

Recently a study was performed on an AI computer teaching itself how to play a range of Atari video games. the computer proved its self to better than a human on the majority of games. For some reason humans are better at Pacman, but that's about it. the thing that's different in this case is that the computer was only given three basic parameters. Pixle recognition, learning ability and the concept that achieving a high score was the objective.  At first the computer flunked out, as you do, but after around 2 hours of play it was performing better than a well practiced human.

So you better get out of trading Whats scary is what can happen when the learning computers get self aware and go into survival mode. Its a bit of a jump, and we will skip any discussion on how that might happen in detail. I don't know I'm not an expert on this, but for the purpose of this blog lets just say its like Skynet in the Terminator. I'm sure in reality it would be much more subtle.

Computer processing power in the world is increasing at an exponential rate. This is driven by science and for government and security (including bitcoin cryptography). The chips are actually being engineered by computers and this intensifies the AI singularity thing. To list some of the fastest computer systems in the world we have Taine-2, a super computer in China (33 petaflops), IBM Sequoia in the USA (17 petaflops) and BOINC, an open international science network (20 petaflops). What the hell is petaflop? basic rull is divide by 4 and it gives you your equivalent GHz, like your computer has at home. So Taine the 2nd is at 8,250,000 Ghz. Thats pretty fast! I'm only rocking 3.5 but what about the Bitcoin network? as of today is is clocking 350Peta hashes which is the equivalent of a ridiculous number 17,780,000,000Ghz Seventeen Billion Gigahertz. Thats more than a thousand times faster than the fastest super computer.

So what does this mean? Bitcoin has achieved something that has not been possible before. All the scientist in the world and BOINC'ing around trying to create the most powerful computer network for years. Including Stephen Hawkins and NASA and the rest. Then this happens. I just want to be able to play clash of the clans and play with bitcoins! Has it gone to far?

The reality is that Bitcoin network is designed for encryption, decryption and verifying transactions. There's no chance that it will become self aware itself, it doesn't really have the right processors for that and it doesn't learn. There is also little possibility humans diverting the power because it would involve mass coordination would involve forfeiting financial gains. Surely however this giant network has a place in the phenomenon.

I'm sure AI trading computers are going to love Bitcoin. So that one thing, but I don't want to write about that. Lets get back to the Skynet situation. Its seems like Bitcoin could be a force of potential evil here. Skynet might be able to hack all computers and get hold of the Bitcoin network. They could then probably use the decryption power to hack into the Pentagon. It just so happens that Bitcoin miners are some of the most secure computers around for the simple reason that they physically have money on them. So this type of thing would be quite hard even for a hyper intelligent Skynet. The problem would be though that bit coin miners would quickly notice could literally pull the plug on the mining machines.

If you have seen the movie "The Imitation Game" recently you might have discovered that cryptography is very important during war. The movie is about Alan Turing, the inventor of the computer, and how he cracked the enigma code. His computer saved us from a lot of evil in that situation.

It didn't even have one Ghz of power but it was the fastest computer in the world at the time. The Bitcoin network is the same and it is fundamentally controlled by humans. Miners are not going to stop what they are doing as long as they are making money, unless of course it was an AI apocalypses and terminator is walking down the street! It's a pretty good incentive to divert your computer power.

Its a knife edge but I think that humans value life more than money and power. That's why Bitcoin and its decentralized and heavily monitored super computer can save us from the Terminator. But don't listen to me listen to Stephen Hawkins!

Bitcoin dontations are appreciated. I'm not rich. 13ticQ1HhPDq2XECHEyxjYgy3wsehRjhwd

Imitation Banks (Loan Sharks)

Arriving in the UK on the latest adventure I was shocked at how inefficiently the banking system seems. Me and my partner had been told it was a nightmare trying to set up a bank account. We got a recommendation from some experienced strugglers to go to Loyds. Turns out this recommendation a bit rough and the experience is worth documenting. I wish I had had a tape recorder.

On entering the bank there is a line on the carpet and a sign that says please wait to be served. So we stand there and look on in dismay with some others at two empty work stations in front of us. A staffer on the trot lets us know;

"There's nobody at that counter you'll have to get in line for the tellers and get served there."

I'm thinking seriously, I can see that! At the front of the next cue we are greeted by helpful experienced teller with a laminated account card. She asks;

"How long have you been in the country?"

“Just a couple of weeks we are moving here for at least two years”

"Do you have proof of address?"

“We have these letters from the national health service”

"Have you got ID on you?" 

“Yes we do”

"We can give you an account now but it won't be a very good one, I suggest you go online and set the account up that way."

"What do you mean by not a very good account?"

"Well an account with credit facilities and a better fee structure"

"We don't really need credit at this stage

"It’s still better if you apply online"

She was nice and somehow we walked out of the building reasonably happy and without an account. A FAIL! My partner and I decided to try another branch and I insist on being a bit more forward the next round.

We walk into a bank and I say plainly in very much the Queens English

"We would like to open bank accounts"

to which the front desk man's response is

"Pardon"

Maybe It’s like he's a coke dealer and he thinks I'm a cop? His superior was standing next to him and there was nobody else in the foyer. Six or seven other bankers had been standing quite some meters away on the carpet to the left of the front counter and had since, maybe at the sight of me and my partner, peeled of to their respective offices. I repeated my statement without rolling my eyes.

"Do you have an appointment"

"No sorry we don't"

"Well you need an appointment to do that"

"We are happy to wait for a time that you are free, do you have anything today"

they looked

"There is no one available today"

“Can we book another day then?”

"You need to do that online"

"What if i'm a little old lady who doesn't use the internet"

"Then you could book a time through the phone"

"But you have a computer here, can we find an open slot together now, it's a lot better for us as we don’t have easy access to these things"

they both have a look on screen and fumble around a bit

"We are busy, the computer only goes to certain. . ."

He can see I’m frustrated now as we both just saw the seven people having a good old watercooler party.

"Can you at least tell us what we will need so that we can avoid coming in without the correct documents"

"Do you have jobs?"

"Yes"

"How long have you been in the country?"

"We just arrived"

"We can't give a bank account to you unless you've been in the country for two years"

at this stage I have both hands down on the counter 

"I have quite a few pounds in my pocket that I don't want to carry around with me, surely we can do something?"

"You'll have to try somewhere else"

He replies in a pressing tone.

I was given completely different reasons as to why they would or wouldn't give us accounts. It's crazy to think of trusting an organisation like that. In a world with 199 trillion dollars of global dept you'd think a little bit of cash might be appreciated.

Any street hack could simply stand outside with an iPad and set customers up with fully functional Bitcoin "bank accounts" on the spot. Arranged a pay conversion service like Bitpay and an exchange with that provides debit cards, say ANX and really that's all you need day to day. You can spend your bits anywhere mastercard is accepted, works internationally with no fees if you deposit 1 Bitcoin on your debit card. Sounds a lot better that being talked down to by stuck up bankers. I can't wait to see homeless guys setting people up with Bitcoin wallets at the front door of Loyds. It would be such poetic justice.

Unfortunately we need a normal bank account to pay our landlord at this stage. So next we went to HSBC, who are getting heat in the media for eliciting tax evasion. They kindly set us up almost straight away, lots of questions, funny colloquial business and not much proof of anything. We had two passports and a letter from an employer stating employment but not specifying pay and guess what. . they gave us 7000 pounds worth of credit.which we didn't ask for.

The word "bank" implies that they hold something for you, but they don’t. They don’t want to hold your cash. Its so ingrained in us that even I'm shocked when they behave in accordance with this. All they do is dispense dept. We should call them loan sharks.

Unfortunately loan hungry banks are much more threatening than Minecraft sharks. The banks are not like our youthful impressions, not like the Minecraft bank, they are much less charming. The truth is the banks are not banks at all, they are only imitating. 

Time is on our Side

Sitting on a plane is a great chance to think. I try to enjoy the time to sit back and slow down, rather than freak out and get claustrophobic. I try to fall into a relaxed state on the long flights in the big aluminium tube in the sky, and I just think about stuff. So, as so often happens to me these days Crypto Currency comes to mind. 

Every day that goes by that the Bitcoin system isn't hacked or corrupted is a win. Seven years without a transaction error is an awesome thing that other systems can't provide. Credit cards have a 20% failure rate due to fraud. And that's just a small part of Bitcoin. The whole digital cryptography system is growing and getting stronger with age. Its open and it's moving in a good direction. It's amazing and time is really on our side.

Still I'm impatient. People seem to get hung up in geekdom, or cultural stigma towards financial subjects. And I feel it to. I mean WTF was that I was just writing about?

"How do we spread the word about this cool thing to all our friends?" 

And to good people in general! this was the reason for MidwayCrypto in the first place. These blogs (and not just mine) always get caught up in detail and obscure subject mater. Its an easy thing to do, the details are so good, but for first time newbies it can all be a bit much. Like having a conversation about the meaning of life, or religion, or investment strategy at a party. Eye role drunk late night stuff you regret in the morning. Its much cooler to just talk about music and festivals and travelling.  

In the video like below Morgan Spurlock does manage to nail the first time perspective. I really recommend it. Good Spurlg Morg! found here: http://247cryptonews.com/morgan-spurlock-the-living-on-bitcoin-full-documentary/#utm_source=rss&utm_medium=rss&utm_campaign=morgan-spurlock-the-living-on-bitcoin-full-documentary

Right now is a great time to get into Bitcoin. It's proven to be legitimate and here to stay, so no pressure. But everyday that goes past that your not involved may well be one that you regret. Take some time to watch Morgans video. Sit back, relax and think about the possibilities. 

.giff curticy of "the better things" blog

Investing in Cyber Security is Investing in Crypto-Currency

All the hype on Bloomberg this morning is about investing in Cyber Security. "What to invest in this year?" They say. With all the latest news stories and the stock market running high "in a world of growing volatility"and what a statement that is. "We have a more global market, but its increasingly fragmented". I've been hearing that for over 5 years! Could we also say " consistent volatility" ? Is that still volatility at all? Or should they just say "Shit is getting random we know less and less about what is going on an when its going to happen.". Or how about we look at it in a positive way. Could we say the world is getting more sensitive?

The finance news desk say "So whats your pick for investment this year then?"  "Cyber security" reply's the Janette Yellen type, the internet of things lady. Well here's the thing. Bitcoin and cyber currency are basically the physical incarnation of cyber security. The pointy end of the stick. The forefront of cyber security hardware; bitcoin mining machines. The ultimate and most important utility of cyber security; the transfer of value. And a key enabler of internet thingies.

So therefore a dollar spent in the cyber security industry is making a big contribution to the digital currency economy. This happens in so many ways and from so many angles i don't even want to list them. Just ask, name a random thing bitcoin and cyber security investment are best buddies. BFFL's!

If you like, you can look at the global economy like a child growing up and becoming more independent, but also more out of control, like a teenager. Smart parents stay friends with their teenagers friends.

The Anti-Bank

This week has been crazy in the world economy. With the Swiss Reserve Bank unpegging their currency (the fourth largest in the world) and lowering their interest rate to NEGATIVE 0.75! The Swiss frank dropped to the floor and then jumped through the roof like a drunken teenage crypto-currency. Japan has already been at negative 0.25 for ages to no avail. The Euro is at zero. The US Reserve bank is offering 0.15 percent on their bonds and because of this tiny fraction of interest the US dollar has hit record ..what. .Highs? Considering that they've announce that they are going to stop printing trillions and think about only billions.This all compares to a New Zealand economy that is just scrapping by really, but still manages to run a rate of 3%.

“Lets face it, the US economy is not exactly a rockstar. The internet of things not really that rockin just yet.”

This week the word is “black swan” and.. I feel like I better post this quick before this all becomes to retrospective. What did we really do to fix the world economy after the GFC?

Let’s get this whole complicated macro economic thing in perspective for a second. In Macro economics (basically economics for countries) Zero is supposed to be the bottom limit for reserve bank rates. Simplified this makes sense because how would you convince someone to give you a million dollars for your government bond without offering a financial incentive in return. So, with a negative rate no-ones going to want to give that government any money. That is unless they where loosing more than 0.75 percent where they had their money originally, then they might opt to take the smaller loss i guess.

“Smith, Marx and Keynes would be pulling eachothers few remaining white hairs out in a triangle of dribbling geriatric rage.” 

The other side of it is that banks are required to hold a certain percentage of their deposits in government bonds. In NZ its 5% so that means 5% of the money you have in the bank gets held at treasury (the other 95 odd percent actually just gets lent out again FYI). So the bank is forced to put money in the government, and with a negative interest rate it also has to pay that at the end of the term. Sounds ok to us, but actually it means that the bank doesn’t want to hold deposits and is encouraged (even further) to get rid off depositors and get all its customers into dept. Further more when the bank needs to get some extra cash from the reserve bank to make some new loans, the reserve bank will pay them to do it. No Deposits, heaps of liabilities. Sustainable? .Not really! In macro economics eventually the value of the nations dollar has to come down.

“How can we let this happen, lets face it these bank exec’s screwed us all over.”

Sorry about the economics rant, but if you think this is confusing, it's because it is! It's all way too complicated and now its being twisted into an even bigger mess. Makes Bitcoin math and a few encrypted codes seem like childs play in a sand box.

What does this mean for bitcoin? the price has been thrashed in the last few weeks, never mind the last six months. Well, it doesn’t actually change much. Bitcoin has always been a kind of solution to the sort of problems posed here and by the GFC etc. In a way this is just a deepening of what’s been happening over the last 20 years in finance. In that way all this mess should be helping the cause, still can’t see it in the price though?! It's the status quo for bitcoiners, but it may get some currency traders back in on the game.

But here’s the thing. Bitcoin has nothing to do with all this crap! Over the last couple of years bitcoiners and Bitcoin companies have been trying to gain legitimacy by trying to assure their place in the financial system. We’ve debated over whether it is considered legal money in parliaments. We’ve made Bitcoin branding that looks just like what you see at the bank. Websites which are flasher. Security protocols on trading sites that are more indepth than UK emigration. New feed’s that never end, bottemless archives of information explaining the entire workings of the system. A comedic culture and international profile.

And Its good, It has worked. Bitcoin is totally legit. We now have Bitcoin traded on the stock exchange in CFD’s and we have multiple brands of Bitcoin money machine, we have other crypto-currencies that are strong in their own right, you can buy anything easily with Bitcoin and the governments didn’t ban it. The truth is though this is not what its about.

Bitcoin is not a bank! We aren’t all professional techie stock market people and governments couldn’t ban it even if they wanted to. The average bitcoiner is just an everyday person, who’s got a smart phone and likes to travel. And more importantly, distrusts banks.

Bitcoin doesn’t just do what banks do for free. It does more. It can change the world by turning money into something else, something unmoney.

It allows amazing tracing of abstract value to enhance equality.

It allows micro payments to be made seamlessly and without investment.

It adds accountability to the wealthy

It allows transparency for corporations

It facilitates global co-operation

It is a great tool for the local community with easy and safe value transfer for free

It’s not left or right wing, no one can take it over and it doesn’t trap people in dept

It can look however we want it to!

And this is my new pitch. The Anti-bank. The price only matters if your rich. Lets make it rad.