Live Free or DAICO

If you want to lose your liberty in a hurry, there’s no better way to do it than a DAICO. What’s a “DAICO,” I hear you ask? Well, it’s a new kind of automatic, Ethereum-based investment scheme that allegedly combines “the best aspects of DAOs” – “distributed autonomous organizations,” a long-winded neologism for “software that runs on a blockchain” – and ICOs, or “initial coin offerings,” schemes where companies launch their own “coins” and sell them as investments to the public without filing a registration statement or publishing a prospectus. Oh, I should add that Vitalik came up with the…

The Cryptopocalypse

Recorded last week, out this morning. Hash Power continues w/ my conversation with @prestonjbyrne, the most consistent skeptic in crypto. We cover: -Nakamoto schemes-his overall bear case-stablecoins-regulation of crypto-assets-potential catalysts for a crashhttps://t.co/eFDMM3Mpqq pic.twitter.com/lobsThUswT — Patrick OShaughnessy (@patrick_oshag) January 16, 2018 “Cryptopocalypse.” Quite timely title for it, too: Listen to the whole thing.

Stablecoins are doomed to fail, Part II: MakerDAO’s “DAI” stablecoin is breaking, as predicted

Background This is a follow-up from an earlier post, “Stablecoins are doomed to fail,” from December 10th. I’ll keep this one short. Long have I been a critic of the “stablecoin” concept – the techno-magical idea that a cryptocurrency can tell the market what its price should be, rather than the market determining what a cryptocurrency’s price should be (the usual way these things work). My first encounter with stablecoins was with the Bitshares/BitUSD scheme in 2014. I pilloried it. Following which it fell on its face 100 hours after launch. In October, I moved on to point out how…

Venezuela’s “Petro” cryptocurrency proposal needs improvement

I was supposed to have a nice day today. I finished a final exam and was looking forward to meditating all evening about how nice it is living in America again, and how much I relish American-as-apple-pie customs like pick-up trucks, groundhogs, and bourbon. When suddenly, as I sat at my kitchen table enjoying aforementioned bourbon, this popped into my feed: Venezuela backs national cryptocurrency with 5,000,000,000 barrels of crude https://t.co/8dYWP1fqP7 — RT (@RT_com) December 28, 2017 Mother of God. This reminds me of Estonia’s Estcoin proposal – which I will charitably describe as “preliminary” – published last week. But the Petro…

How high transaction fees threaten cryptocurrency institutions’ solvency

I guess you really can have too much of a good thing, even in Bitcoin: Very interesting analysis by @LaurentMT. @coinbase / @GDAX has a big issue. Because of the fragmentation of their utxo set (tx inputs and outputs) they would have to pay miners more than the actual withdrawal amounts. https://t.co/B94S2MNCSo — WhalePanda (@WhalePanda) December 22, 2017 For example, this entity (https://t.co/wyTt53e0aX) is a wallet controlled by Coinbase. To date, it owns around 203 BTC split in 1,464,545 utxos !With BTC at $15.8k, it means $3.2M with an average utxo value of 2.2$. #DustInTheChain — LaurentMT (@LaurentMT) December 20,…