[kictanet] [Skunkworks] Bitcoin Meetup: Topic Buy/Trade/Store BTC at iHub Monday 1st December 5:30 PM

Mon Dec 1 11:51:18 EAT 2014

The major challenge with BitCoin is the complexity for the common man -
it's easy to lose your BitCoins, and this scares away most people.

On Mon Dec 01 2014 at 09:24:50 John Karanja via skunkworks <
skunkworks at lists.my.co.ke> wrote:

> Great analysis Phares,
>
> Just to add Bitcoin is Pseudo-anonymous you can track every transaction to
> the wallet and possibly every device meaning you can a track a sender and
> receiver if you are networking expert..
>
> Roy they are over 500 major digital currencies and there will be millions
> in the future many of which will fail, some which will add value to their
> users and others which will be scams.
>
> Bonga points is a virtual currency/token that offers discount value on
> purchases at Safaricom shops and not anywhere else and therefore has
> perceived value amongst Saf users...
>
> Bitcoin currently has a market value of $5 Billion because of the "work"
> that has been put into the network which creates perceived value just like
> Bonga points.
>
> Like Phares says just do some research on what actually backs USD you will
> be surprised.
>
> Meetup is  at 5:30PM today at iHub...
>
> John
>
>
>
>
> On Wed, Nov 26, 2014 at 4:22 PM, Paul via skunkworks <
> skunkworks at lists.my.co.ke> wrote:
>
>> What stops us from trusting bitpesa? Or procoins (if I came up with mine
>> too)....
>>
>> If you get my drift, anyone can come up with a digital currency. Which
>> one will you trust?
>>
>> All these are ponzi schemes designed to benefit a few...
>>
>> Though I like John's analogy to gambling 😊 yeah if you are into it, why
>> not try and get rich!
>>
>> Don't say I didn't warn you.
>>
>> pro
>> ------------------------------
>> From: Phares Kariuki <pkariuki at gmail.com>
>> Sent: ‎26/‎11/‎2014 15:47
>> To: Paul Roy <roykoikai at gmail.com>; KICTAnet ICT Policy Discussions
>> <kictanet at lists.kictanet.or.ke>
>> Cc: Skunkworks Mailing List <skunkworks at lists.my.co.ke>; Patrick Kariuki
>> <patrick.kariuki at gmail.com>
>> Subject: Re: [kictanet] [Skunkworks] Bitcoin Meetup: Topic
>> Buy/Trade/Store BTC at iHub Monday 1st December 5:30 PM
>>
>> 1) Currency no longer has a backing. The US stopped using the gold
>> standard in 1970 (Ironically, the US Dollar became the global trading
>> standard simply because they had a gold standard).
>> 2) Currency is based purely on trust, not inherent value e.g. during
>> hyperinflation in Germany in the 20's, the currency was worth less than
>> firewood, so people burnt money because money because it was cheaper to
>> burn money than firewood.
>> 3) The trust in the value of money is why you accept a 1,000 shilling
>> note as being worth something. It's trust. Yes, the state issues it, but
>> that is not the basis of trust in currency. It's the assumption that
>> society as a whole shares your view on the value of the money... e.g. in
>> Zimbabwe, the state issued the currency, but the people did not have faith
>> in the currency. So the notion of value of a currency being predicated on
>> state issuance is moot.
>> 4) Bitcoin actually solves interesting problems online, the biggest being
>> anonymity. e.g. If you spend 1,000 KES at Java, that money can't be traced
>> to you. The money is accepted by the merchant. Period. There's no tracing
>> it back to you. A 50 KES note spent in a matatu, buying drugs etc can't be
>> traced back to you (unless the state marks bills). Money is trusted. We've
>> been unable to replicate that online. So for now, we use cards. Paypal etc.
>> We have intermediaries who guarantee value. Who guarantee that the
>> transaction would be settled. This has one problem, margins. MasterCard,
>> Visa, Paypal etc all have their pound of flesh. Additionally, the lack of
>> anonymity means that all transactions can be traced back to both the
>> merchant and customer and the merchants can determine what type of goods
>> can be transacted. Whilst this might look like a good idea, the problem is
>> that the state can use this to get rid of unwanted actors in the economy.
>> What Bitcoin represents is free trade online. You can buy whatever you
>> want, sell whatever you want online e.g. you can create a secure email
>> service to insulate yourself from the state e.g. Snowden.
>> 5) Money transfer - the US Dollar means that you have to be in good
>> standing with the west in order to conduct international transactions. This
>> need not be the case with bitcoin. You no longer need to use NY clearing
>> houses to transfer international currency. You can use bitcoin (e.g. A
>> citizen of Sudan, who wants to launch an ecommerce website can start
>> accepting bitcoin, which is global and bypass the US clearing houses).
>> Freedom to trade. US foreign policy should not be the baseline for
>> international trade.
>>
>> The one caveat I have with bitcoin is the fact that it has deflationary
>> tendencies, not inflationary, because it has a limited supply. The
>> inflationary tendencies of legal currency mean that the incentive to the
>> holder is to spend/invest rather than hoard the currency, which increases
>> the velocity of the cash. It's used to buy more and more goods/services.
>> Bitcoin, due to its deflationary tendency, incentivises the holder to keep,
>> rather than spend the cash. e.g. At some point, in 2011, bitcoin was worth
>> roughly 50 USD, it's worth 300 USD today, so if you spent 1 bitcoin buying
>> say an iPod Shuffle, that same amount of money, had you waited, would have
>> bought you 6 iPods shuffles, so you would have a feeling of loss. That's
>> the biggest worry. However, the fact that more and more people are trading
>> with it might mean that folks actually spend, rather than hoard the money.
>>
>> On Wed, Nov 26, 2014 at 2:07 PM, Paul Roy via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>> Well, am against this notion of a few people making "something out of
>>> nothing" and majority "making nothing out of something". I have no issue
>>> with the technology side. True using crypto technology and blockchain you
>>> can trace the history etc, however this does  not explain some mysteries.
>>> First a few points to ponder
>>>
>>> 1. Who invented bitcoin? Why is s/he in hiding? If i were the inventor i
>>> would proudly be associated with BTC in this case the guy went to
>>> hiding...did he know something or is he/she remaining anonymous avoiding
>>> legal action from eminent collapse of bitcoin with a few billionaires and
>>> majority impoverished?
>>>
>>> 2. Ok BTC is popular and they claim over 6 million coins blah...blah...
>>> have been mined so far. How did this happen? Who are these billionaires who
>>> spent enormous computing resources to mine bitcoin while the rest of the
>>> world was asleep?
>>>
>>> 3. Paypal has a disclaimer on bitcoin trade...do they know something?
>>> Many governments do not recognize bitcoin and others have even burned it as
>>> a legal tender
>>>
>>> 4. What's backing this currency? Air?
>>>
>>> Anyway the truth is that some genius came up with some incredible
>>> algorithm based on cryptography, released the code, used pseudo-names to
>>> hide s/he identity, got his/her cronies and fictitious accounts with
>>> millions of these so called coins, sat back and enjoying billions coming
>>> his/her way.
>>>
>>> What a genius!
>>>
>>> pro
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> On Wed, Nov 26, 2014 at 10:57 AM, Anthony Lenya <tlensya at gmail.com>
>>> wrote:
>>>
>>>> Bernie Madoff anyone? ?
>>>> On 26 Nov 2014 10:54, "Patrick Kariuki via skunkworks" <
>>>> skunkworks at lists.my.co.ke> wrote:
>>>>
>>>>> Any basis for your advice?
>>>>>
>>>>> The US Marshal service is auctioning Bitcoins - If the Bitcoin was
>>>>> part of some ponzi scheme wouldn't they destroy them instead?
>>>>>
>>>>> http://www.usmarshals.gov/assets/2014/dpr-bitcoins/
>>>>>
>>>>>
>>>>>
>>>>> On Wed, Nov 26, 2014 at 10:05 AM, Paul Roy via skunkworks <
>>>>> skunkworks at lists.my.co.ke> wrote:
>>>>>
>>>>>> John,
>>>>>>
>>>>>> Good to see you trying to marshal support for digital currency. This
>>>>>> is simply pyramid scheme that will make so many people lose their hard
>>>>>> earned cash, moreso fraudsters and hackers are having a playing field
>>>>>> ripping off many innocent investors...
>>>>>>
>>>>>> My advice, keep off bitcoin!
>>>>>>
>>>>>> pro
>>>>>>
>>>>>> On Wed, Nov 26, 2014 at 9:33 AM, John Karanja via skunkworks <
>>>>>> skunkworks at lists.my.co.ke> wrote:
>>>>>>
>>>>>>> Hi Listers,
>>>>>>>
>>>>>>> Bitcoin Meetup sign up here:
>>>>>>> <https://mail.google.com/mail/u/0/goog_1446634865>
>>>>>>> http://www.meetup.com/Kenya-Bitcoin/events/218657905/
>>>>>>>
>>>>>>> Bitcoin which is like *global M-Pesa is* the World’s most
>>>>>>> celebrated digital and crypto-currency. The past 5 years has seen this new
>>>>>>> technology experience gradual and steady growth in use around the World.
>>>>>>> Bitcoin today has over 10 million users globally and is growing fast!
>>>>>>> Together with the African Digital Currency Association(ADCA)  we are
>>>>>>> hosting a Bitcoin Meetup on Monday 1st December 2014 5:30PM at the
>>>>>>> iHub, 4th Floor, Bishop Magua Centre, Ngong Road, Directly opposite Uchumi,
>>>>>>> Ngong Road. We look forward to demonstrating how you can Buy, Trade and
>>>>>>> Store your Bitcoin in this session.
>>>>>>>
>>>>>>> Come prepared with your Bitcoin Wallets which you can download from
>>>>>>> Google Play and Apple Store as Whive <http://Whive.org> will be
>>>>>>> sponsoring free BTC Giveways.
>>>>>>>
>>>>>>> If you have no idea how to set up the wallet buzz me off-list and I
>>>>>>> will help.
>>>>>>>
>>>>>>> Bitcoin Meetup sign up here:
>>>>>>> <https://mail.google.com/mail/u/0/goog_1446634865>
>>>>>>> http://www.meetup.com/Kenya-Bitcoin/events/218657905/
>>>>>>>
>>>>>>> As background info read about E.A legal status and regulation of
>>>>>>> Bitcoin on the iHub community blog here. Post by ADCA lead Michael Kimani.
>>>>>>>
>>>>>>>
>>>>>>> http://community.ihub.co.ke/blogs/21585/digital-currency-regulation-in-east-africa
>>>>>>>
>>>>>>> See you there,
>>>>>>>
>>>>>>> John Karanja
>>>>>>>
>>>>>>>
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>>>>>>
>>>>>>
>>>>>>
>>>>>> --
>>>>>> "Change is slow and gradual. It requires hardwork, a bit of
>>>>>> luck, a fair amount of self-sacrifice and a lot of patience."
>>>>>>
>>>>>> Roy.
>>>>>>
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>>>>>
>>>>>
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>>>>
>>>
>>>
>>> --
>>> "Change is slow and gradual. It requires hardwork, a bit of
>>> luck, a fair amount of self-sacrifice and a lot of patience."
>>>
>>> Roy.
>>>
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>>
>>
>>
>> --
>> Warm Regards,
>>
>> Phares Kariuki
>>
>> *E*: pkariuki at gmail.com | *Twitter*: kaboro | *B*: http://www.angani.co |
>> Angani Limited
>>
>>
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