About Ellery

Who is Ellery? http://awildduck.com/?p=1 Bitcoin/Blockchain speaking: Links at top right

Conference speakers: Get paid–or pay up!

This week I received an offer to speak at a big, blockchain expo in Switzerland. That’s what I do in a mid-life career transition—or at least, it’s what I aspire to do. Last year, I presented at conferences, workshops, corporate retreats and trade shows on four continents. It’s not yet a full time career. Often, I cannot find paid opportunities to present—and so I teach, write, consult or refine my presentation to keep it relevant.

I hate marketing my presentation, but I’ve done a pretty good job of creating an industry reputation. And so, most of these presentation gigs begin with an offer from the host or producer. But like most presentation offers, this one came with strings attached. (More accurately, a ball, chain and an anchor ware attached!). Below, I have pasted the original invitation that I received—and the conversation that is still in process today.

Surprise! — “Offers” to speak at conferences and expos are not offers at all. Sure, the show needs talented presenters. But their outreach is just a sales pitch. Rather than paying for talent, the owner or producer wants their talent to pay them.

And so, responding to such offers is a carefully crafted form of triage; it’s a bit like trying to revive a gunshot victim who has entered the emergency room without a heartbeat. My ability to earn money as a speaker is on life support, even before receiving an “offer”. Why is this?! Let’s dig in…


Do Conferences Pay for Speakers?

There are two types of speakers: Headliners and techies. But, sometimes the headliner is one of the techies. I prefer to classify speakers as Celebrity or Expert.

Celebrity speakers are bought to create buzz. They deliver the keynote address and they get big fees. But many conferences have no big celebrity. They are typically found at prominent trade shows or events that cater to a television audience. Think of Billy Crystal or Whoopi Goldberg at the Academy Awards – or Mikhail Gorbachev at a corporate or non-profit.

Celebrity speakers get big bucks. Hillary Clinton was never president, yet she pulls in $400,000 to appear at an industry event.

But, what about speakers who bring critical content? These individuals are the meat-and-potatoes of any conference. Along with customer prospects, this is what visitors pay for. If you compare a trade conference to a restaurant, expert speakers are both the chefs and the food itself. They prepare, refine, package and deliver a consumable. But, do they get paid for their work?

To understand the expert speaker, let’s go back to the celebrity speaker for just a moment. These well-compensated speakers are typically an athlete, entertainer, comedian or former politician. Often, their presentation is unrelated to the conference or show venue. Their presence is primarily to create buzz, entertain or ensure eyeballs. The hosts see value because the celebrity fills seats or increases TV audience. This brings in advertising dollars. Of course, having a former president or movie star launch your agriculture expo creates lasting memories which raises awareness of future events. Their value is clear.

But you are not an athlete, comedian or former president. If you are an astronomer, you are probably not Carl Sagan (he’s dead) or Neil deGrasse Tyson. You’re just a darn good expert with wit, charm and an ability to excite a tough audience and help them leave with new ideas.

If you have tried to market your charm and your live presentation, then you have probably come up against the ‘reverse-value’ gambit. It’s like getting punched in the face 3 times:

  1. Most conferences and shows do not pay their speakers
  2. Often, they do not cover the cost of travel or a hotel. But, it gets worse…
  3. They want each speaker to pay big money to appear on stage. I am routinely asked to pay $5000 or $10,000 for the privilege of exposure!

But wait! Aren’t industry experts and pundits the main entrée? After all, we develop and deliver the information that attendees consume. Some–like me–make a living from live presentations. We travel abroad in the hope of making a career from our nuggets of wisdom. We are the raw material of conferences, clinics, expos and trade shows. Why no respect?!

Show producers want the prospective speaker to believe that the show offers visibility and a chance to hawk a related organization, product, service—or a special interest, such as a new standard, perspective or political agenda. At the very least, they want you to accept that it gooses up your career résumé.

Can expert speakers get paid for preparation, packaging and pizazz? Do credentials and communication skills bring credibility to an event? Are we not a critical component of the draw? It certainly isn’t easy. So let’s explore the reason for this difficulty—and the method that I use to overcome it.

Here’s a quick Q&A related to the difficulty in marketing an expert, live presentation as a fair consulting relationship:

Can a non-celebrity academic or industry expert get
paid for expertise, preparation and delivery?
Answer: It’s damn hard!
Do credentials & credibility help to draw an audience? Yes, absolutely!
Do producers recognize content value? Do any start negotiations by offering payment? Rarely. They argue that a stage or audience represents bigger value than your expertise
How can the speaker get a conference to value experience, preparation, travel and presentation? Substantiate & defend the expert value; Participate in promotion

Each time that you solicit a conference or respond to outreach, be prepared for the reverse value gambit. The host or producer positions their stage as a product. No compensation for you. They hope that each speaker will view himself as a client, rather as an asset that produces and delivers expert content.

Solution: Don’t be discouraged. It is not a job offer, just a starting point—just a slick sales pitch. Your goal is to move the value exchange from below the water line to top-of-hill. You can do this, because without you, they do not have a product to offer their real clients.

The value exchange must be flipped and justified. As an expert speaker, you must turn the equation around by marketing your exceptional value to the producer.

MIT Bitcoin Expo with Andreas Antonopoulos

The conference producer has not factored in all that you do. Point out that your value is a critical component to success. Enumerate the things you bring to the table:

  • Expert content
  • Engaging & entertaining delivery
  • Availability to participate in market media interviews and guerrilla marketing
  • Increased likelihood to capture additional sponsors
  • Availability to participate in VIP mixers

All of these things counter a reverse-value proposition. Prepare to argue all of these points eloquently, with the very first hint of reverse value. It won’t work every time, but eventually, you will find producers that value talent and know how to leverage your expert presentation, your reputation and the value of putting you in contact with journalists, TV anchors, sponsors and VIP attendees.

So what about the negotiation that started in the Linked-In messages shown below? Will I present in Switzerland in March? I don’t yet know. That dialog has just begun. Sometimes, I am successful at reversing the value proposition and sometimes I am not. Last year, I was fairly compensated for presentations in South Africa, India, Canada and Dubai, where I gave the keynote speech. But for a larger fraction of opportunities, either my fee proposal was rejected, or the eventual offer failed to meet my minimum requirement.

Not to worry. I am in a hot market sector. Interest in Bitcoin, altcoins and especially the blockchain is growing rapidly. Although I can only flip a fraction of show producers, there are four or five big shows in my field—somewhere in world—every week. I would be happy to land just a few.

And of course, you can organize and host your own show. That’s what my partner Manny and I did when we produced The Bitcoin Event in New York. We formed the Cryptocurrency Standards Association, partnered with a university network, recruited our own speakers, and promoted the affair with incentives and office space from the New York state.

It was fun, but I prefer to excite an audience from a podium or stage rather than organize, produce and host a big event. At this stage of my career, I want the certainty of a presentation gig that comes with an airline ticket and a hotel reservation.


Host: [Seeks to have me talk at his conference. But there’s a catch!]

Hello Ellery, Finance World Expo will take place in Zug, Switzerland on 6-7 of March 2019.

Our expo strives to bring you, C-level executives, Founders, and Advisers from the leading companies in the industry, as well as promising and innovative start-ups.

A wide range of speaking opportunities and round panels enable our Sponsor’s to predict and shape the future of Finance. Being a part of our Expo offers a great chance to present your ideas to the wide community and get worldwide brand exposure. Awards are given to the best projects in the categories will enable the Winners to flash in the Finance Sector.

Finally, our beautiful location with facilities and high-level services ensure a perfect atmosphere for networking.

Can I send you some more information?
Use this code for a -20% ticket discount: FWxxxxx

regards, Łukasz Paszkiewicz
Co-Founder of Finance World Expo

_____________________________________

Me: [This is where I hint that the value exchange must be reveresed]

Hi Łukasz,

I am available during March. I would be honored if you consider me a prospective speaker. I charge a fee for speaking at economics conferences, and am qualified to be a keynote. I can bring cryptocurrency and blockchain expertise to your conference in a way that your audience and other speakers will fully understand and many will embrace

~Ellery Davies, bitcoinreferee.com 《 qualifications

_____________________________________

Host: [A horse trade begins. I must convince him that expertise has value. it is an asset—rather than a sales opportunity]

Ellery, Normally we charge for speaking.  Here are our packages for presenters: https://financeworldexpo.com/sponsorship/ We can offer you 25% discount. Additionally if you can introduce us some partners we can offer you free seminar or place in a panel.

Best regards, Łukasz, financeworldexpo.com
Next Step: Review your 
Sponsorship Opportunity  ←  Subtle! It means he wants money

_____________________________________

Me: [Get host to request a quote] …

Yes, Łukasz. I certainly understand that you normally charge your speakers. This is because your speakers seek value in promoting their product, company, ICO or consulting service.

On the other hand, I am more accurately your show talent. I will visit with local news and media before the show to help fill walk-in seats. I will give the audience something that excites them and makes them believe that the show was productive for both their employers and their personal careers. I will give a positive and long-lasting impression of Finance World Expo. In turn, it gives you something that you can take to the bank.

With other speakers (especially at a trade show, clinic or non-academic conference), visitors sometimes feel that they have paid money to be pitched. They can get a pitch at Amazon or Walmart — but at your expo, value comes from being enlightened. Value comes from getting up on their toes and passionately participating with the presenter.

I can do this. I can partner and create value, excitement and a strong impression that your expo exceeded expectations. My role at the event differs from other speakers. For example:

  • I am not selling anything. I will appear at your expo for the sole purpose of exciting and enlightening guests. That’s what I do.
  • I am a versatile speaker on blockchain, Bitcoin adoption, scaling, regulation, economics, banking and government.  I motivate audiences.
  • Bitcoin/Blockchain credentials  ←  Do you stack up? Experts must invite comparison!
  • I have hosted and presented Bitcoin conferences, including The New York Bitcoin Event
  • In the past year, I was keynote or headliner at conferences on 4 continents.
  • I am moderator at the world’s largest Bitcoin community: 50,000 members at LinkedIN
  • As columnist & editor, I fill seats with press coverage: local TV interviews before your event

That’s my pitch. If you consider our exchange from this perspective, you may come to value your speaker as key content, a pull through tool, and a significant revenue opportunity. To add additional value, I will help you work with existing sponsors to cover my stipend. I can wear their shirt, hand out their bling, and talk to visitors about the value that they bring.

~Ellery

Trump-supporters: Address the ‘disconnect’

In the past, you have tried to talk sense, but failed. How, then, can you address the disconnect between you and your Trump supporting friends?


If you are like me, you believe that, overall, your colleagues and close friends are thoughtful and intelligent—at least on whatever level led you to be close. You also believe that your friends would not intentionally subvert national interests.

And yet, there is the fact that a few friends and associates are Trump supporters. They may not agree that our activities damage the environment or that a woman has the right to make decisions concerning her body, as you do—but you give them credit for wanting a strong economy, disrupting terrorism, paying down the debt, and factoring fairness and equality into any legislation.

For example, in addition to my nephew, two close friends are firmly in the Trump camp. I like them; I respect them—and yet we are worlds apart on a matter of dire importance to life on this planet. For some reason, we just don’t see 1 plus 1 the same way. They see a dress that is blue and black, while you and I are certain that it is gold and white —»

You also want to believe that your friends understand and respect the reasons that we have checks and balances and that a separation of church and state is the only way to govern a diverse nation.

Agreed. The people that you love or associate with are not anti-American. They earnestly believe that their support of Trump is compatible with core values that you share. And so, this brings me to a conclusion…

There is an incredible disconnect between Trump supporters and those who believe that he must either step down or be removed from office. Supporters don’t see a danger in his decisions and behavior. Many see a man who is keeping promises and building a vibrant economy. They don’t share our sense that he is a threat to the economy, the environment, our alliances, democracy, and—especially—to domestic tranquility.

Let’s say that you accept my conclusion: Trump supporters share our desire for strong and fair nation, but they simply fail to see criminal behavior—or at least, serious shortcomings. How do we illuminate what seems obvious to you and to me, without appearing to condescend and shut them down?

In the past, I have talked down to my friends. I have chided them for what, to me, seems obvious. Of course, taking this tact only insults. It is not at all effective.

A better way to relate

Search for either a smoking gun or a fresh way to view events. The Forbes video of a Rachel Maddow, below, may help. In the first 6 minutes, she ties together a series of disturbing facts that should make any thinking person ask “Why?” Why would Trump do these things? What was he thinking? How could anyone pursue this long string of events? What influences him? Is he working for someone other than the American people?

See if you can get Trump supporters in your circle to get past their preconceptions about MSNBC and Rachel Maddow. The issue here is not the messenger, but the message.

To those of us who recognize the serious shortcomings of the president, the possibility of foreign influence is only one of many serious threats to our national interests. But, this video sheds light on this one threat in a way that may lead a few of your Trump-supporting friends to question their position. It’s not a magic bullet—but hopefully, it will contribute to their analysis.

Click below, and then on the photo of Trump (2nd from top).

Are cats useful for controlling rodents?

Everyone knows that cats are natural born hunters. Their brains are wired to catch mice and other tiny varmints. It’s their raison d’être—their primary purpose of existence.

But asking if cats can catch mice is very different than asking if they are good at controlling a rodent population. Far from it! In fact, a well fed, well cared for cat does exactly the opposite. It will infest a suburban home faster than an open door smeared with peanut butter and cheese. Allow me to explain…

I live in the suburbs of Boston. That’s my house below.

My neighborhood has no rodent problem. Apart from early morning walks with my dog into the woods, I have never seen a mouse, vole, gopher or chipmunk with one very big exception. I’ll explain later. Typically, the only rodents I see are squirrels on lawns and a pet hamster or gerbil in a neighbor’s terrarium…

That was before I became a cat owner. But, I have lived in the same house for 35 years. During that time, my family has had 6 cats (not all at the same time—But, thankfully, our cats have all lived past 20 years).

Our cats have access to the outdoors. They have their own door and can come and go as they please. They occasionally get into a scrape with a raccoon or another cat, but they have managed to avoid cars. But here’s the thing…

Earlier, I said that I never saw a mouse, a vole or a chipmunk. You might think this is because our cats scare them away or catch them on sight. Far from it! In my experience, cats don’t control or eliminate mice—they party with them!

Let’s be clear: Apart from a pet or a laboratory, I never saw rodents until I owned cats. In the Fall and Summer, they bring mice, voles and chipmunks into the house every single day. And they rarely kill or seriously injure the little critters. Instead, they drop them in the kitchen (where I am cooking or working) or at the foot of the bed (where I am trying to sleep). Anyone who knows cat behavior understands that they gloat over their accomplishment and that they consider it a treasure for their human companion. They want high praise for delivering a fresh, intact toy.

So, in response to your question, a well-fed suburban cat is a rodent magnet! It may be different, if you live in the city or on a farm, and if your cat is perpetually hungry. But my cats hunt for friendship and for gifts. And this results in a rodent influx rather than rodent control.


Postscript: Rabbits are a different story altogether

Our cats also bring in an occasional bird, frog and snake. As with rodents, they take care to minimize hurting the creatures that they bring into the house. They are either playmates or gifts for their human companions. But, rabbits get special treatment…

For some reason that I cannot fathom, my cats exhibit a more traditional, predatory behavior when it comes to rabbits. At least once each month, they bring a wild rabbit into the house. They systematically torture and then slaughter it—typically, before I wake up. They decapitate the poor thing, disembowel the intestines and dismember the carcass. Then, if I am still asleep or out of the house, they devour every little bit except the tail and heart. Seriously! Upon close inspection of the murder scene, there is no evidence of a skull, fur or teeth. Even the spinal cord is gone. The only explanation is that the perp eats everything. With the exception of the aforementioned tail and heart, there is only a smear of blood on the floor.

In the photo below, we stopped our rabbit killer before it completely eliminated evidence of it’s gruesome act. At left, is an empty hide and a leg. On the right is the large intestine. Had we not intervened, even the guts and fur would be gone.

Shah of Iran: Fall foreshadowed by 1971 gala event

In 1941, the Allies invaded Iran, forcing the monarch to abdicate. (Reza Pahlavi was father to Shah Mohammad Pahlavi). While Dad fled to South Africa, a young crown prince became the new Shah.

In 1971, the Shah of Iran threw a party in Persepolis, the ancient capital of the Persian Empire. It was thirty years after taking the throne, but still 8 years before being toppled in the revolution that stormed a US Embassy.

A massive gala party was promoted as the 2500th year celebration of the Persian Empire. But the real motive was so that world leaders could witness the Shah coronating himself. Among a many titles that he carved into temples, coins and scriptures, he pronounced himself “King of Kings” and ruler for life.

Persepolis was far across a desert from Tehran and other modern cities. So, the army created a fortified highway caravan with rest-stops for bathroom breaks, refreshment and communication. This may seem like our highway rest stops, but there were no highways in this region. It was all created for the one party.

According to this BBC-Barbara Walters documentary, this big, splashy event led to the downfall of the Shah. It was a party to end all parties—attended by heads of state from 90 countries, including the US, Europe, Asia, India, Communist countries, including kings, queens, presidents, prime ministers and dictators. The United States was represented by vice president Spiro Agnew.

It’s 1¼ hours, but I suspect that you will find at least 10 minutes interesting. This documentary touches on events of the day, including what happened after the party.

BTC plunge: Why I don’t worry

Join me for a quick review of the spikes & dips in the Bitcoin exchange rate. This time, it’s all about one very simple chart. [continue below graphic]…

The chart below shows a history of BTC price spikes, dips and recovery. Click to enlarge, then start at the top—and move down.

      • Consider the percent-pullback after each spike (red label)
      • Think about the stellar rebound after each drop (green label)

This is why I do not get too worked up over the eaxhc plunge in the BTC exchange rate. There are no fundamental flaws in Bitcoin math or mechanisms. The market need for the benefits conveyed by Bitcoin is terrific, and the most popular arguments against Bitcoin are severely flawed. Skeptics and Critics typically say something like this:

“Even if blockchain currencies are beneficial and inevitable, Bitcoin can be displaced by another, better cryptocurrency.”

—Or—

“A viable crypto may emerge—but it will be one that is backed by a tangible asset or issued/sanctioned by government.”

These arguments are false. They are made by individuals who don’t yet fully appreciate the mechanism and its relationship with trust, money, government and free markets.

What Bitcoin currently lacks is education, familiarity, standards, simple commercial tools (built upon clear analogies), definitive best practices, a widespread understanding of multisig & security, and limited recourse for certain commercial & retail transactions. But Bitcoin is still an infant, just like the early TV or the early telephone. All of these are under development—without a hint of significant obstacles. Even the messy process of democracy among the various stakeholders is heading toward harmony (miners, developers, vendors, exchanges and consumers).

Of course, I am bullish on Bitcoin, and this may color my analysis. But, I try hard to keep an open mind. There have been moments in its history where I have questioned the market need or the potential for a setback in politics, legislation, or the mechanism itself. Those doubts are in the past. Bitcoin has demonstrated the elegance and value of the blockchain—and the ability to evolve beyond the blockchain with SegWit and Lightning Network. It has achieved a fluid, robust and growing two-sided market.

No one holding assets likes to see a big price pullback. It’s natural to look at the market as if we each got in at the peak—and then tally the “losses”. But I, for one, am not glancing toward the exit. I see the future and I sleep well at night. I am comfortable participating in the Bitcoin era.

Best Bitcoin wallet: Hardware or hosted?

The question asked in the title has been edited from what was asked today at Quora, the Q&A forum at which I participate as expert columnist. The original question was a bit more ambiguous: “Which is better? — a digital bitcoin wallet or a physical one?”

I have included the original question, to better distinguish products and terms.

All bitcoin wallets are all digital—even a paper wallet, whether a character string or a QR code. Conversely, an exchange may use “physical” wallets to host client assets, individual application wallets, or they may simply keep records of client assets that are stored, collectively, in their own master wallet.

To complicate matters, Bitcoin is never really “stored” by you or an exchange service. It is stored on a public blockchain, where assets and transaction history can be traced through time by anyone. Therefore, all forms of user access are “digital”. What the reader really wants to know is “Which form of access control is better?  — custodial or personal?”

Type 1: Custodial Wallets are Managed by a Trusted Party
They hold your assets. You view a statement balance—just like a bank account.

The reader uses the term “digital wallet” to mean a hosted wallet in which a trusted 3rd party holds the private keys, or aggregates the assets of many customers and tracks their individual ownership in their own accounting system, like a traditional bank or broker. In this case, the 3rd party is trusted to maintain security, privacy, and constant, robust user access.

It is possible that the reader may have used the term “digital wallet” to additionally refer to PC and smartphone applications, such as Bitcoin Core, Armory or Electrum. But, these are really personal and private wallets — because they are created and configured by the owner, and only the owner has the private keys. And so, we classify device wallet applications as “personal/private” along with hardware or paper wallets.

Type 2: Personal Wallets are Private
—but with privacy comes risk!

Wallets are personal if the private keys are generated and stored by the user, either on paper, in their PC or smart phone, on a thumbdrive, in a hardware wallet, or even uploaded to cloud storage. As long as the asset owner holds the keys and securely encrypted any uploaded file that contains the keys, the assets are accessible only with his consent.

So, which wallet class is better for securing cryptocurrency access credentials? Custodial or Personal? Which of these models best fits your needs?

  • A custodial wallet is like a bank a statement. Your assets are maintained by an exchange, rather than tucked into your mattress. The wallet and keys are not under your control, but the process that governs backup and security is rigorous & standardized. Availability to your heirs is governed by documents and laws.

—OR—

  • A personal wallet is completely controlled by you. The private keys must be stored where you will always find them (in your head, a lock box or an encrypted file that is distributed to family in a way that they will always be able to unlock it!). Ensuring future availability, swift transactions or passing wealth after death requires careful attention to tools, process and a secret.

A crypto purist or Libertarian might insist on taking full control of the assets. That is, storing them locally and with only the owner having the private keys. This is analogous to storing bars of gold in a safe and then burying the safe in a deep, covered hole in your yard—and in a spot that only you can find. Even if your children can find the safe after you die, it is equipped with explosives that will completely obliterate the gold, if it is unearthed without the correct password.

I am privacy zealot. And yet, to the dismay of some followers, I believe that—for most cryptocoin owners—a hosted, custodial wallet is better than taking possession of a hardware wallet, paper wallet or digital wallet (anything that the user personally stores in a PC, phone, on paper or in a personally encrypted cloud account).

To explain, I shall call out [1] a critical requirement, and [2] the deciding factor in determining this advice applies to you.

1. Critical Requirement

The host must have impeccable credentials, a solid and ongoing regimen of security reviews and unscheduled audits — and they must be sufficiently capitalized by large, respected organizations, such that widely recognized individuals and organizations are at substantial risk if anything were to go wrong.

Trust among strangers is easily scammed. So let me be clear. Regarding the investors, board, executives and security auditors of a custodial wallet service, both their reputations must be at risk as well as their worldwide assets across other business areas.

Coinbase in San Francisco is such an exchange and hosting service. Currently, there are only two others that meet this extreme level of vetting. If Fidelity Investments enters the market as a crypto-hosting service, they would likely meet this bar.

2. Deciding Factor

There are few individuals for whom direct and private ownership makes sense. In fact, until this month, it did not make sense for me. I am only now configuring my first hardware wallet. I still trust Coinbase to host and control most of my assets.

The reasons boil down to security, forgetfulness, errors, legacy ownership and instant access. The ONLY factor that is arguably better with personal custody & control is privacy.

Due to a lack of education, standards, and definitive best practices, this option makes sense for fewer than 5% of Bitcoin owners. Take me, for example… I have been involved with Bitcoin since the first years of its existence, and have been a Bitcoin educator since shortly after Satoshi’s original bombshell. Today, I am a keynote presenter at blockchain and cryptocurrency conferences. I teach blockchain seminars, design courseware for colleges, and am co-chair of the Cryptocurrency Standards Association and partner in Blockchain Research Council.

Yet, I am only now configuring my first hardware wallet. I still trust Coinbase to host and control most of my cryptocurrency.

How do I know if I am a candidate for full / private control?

Using an exchange hosted wallet service is best for most individuals. But, for some, it makes sense to maintain private, local control of blockchain assets. If all criteria in the bulleted list below applies to you, then local and private ownership might make sense. But if you fail even one criteria, then WAIT! Wait until multisig becomes uniform and ubiquitous — and wait until a larger fraction of society is comfortable with the concept and practice of managing private keys. These are gradually becoming new norms. But, it will take a few more years for the world to become comfortable with an unfamiliar concept: personal control of a decentralized asset.

You are a candidate for using a personal wallet if you plan to control and secure your own private keys, and if you meet all conditions listed below. The technical criteria will not be requisite in the future—but they are necessary today, because the market currently lacks simple, standardized, widespread tools and uniform practices for safely securing, accessing and passing on these credentials to your heirs.

Do all of these criteria apply to you?

  • You have a comprehensive understanding of cryptography, including the principals of RSA public-key crypto.
  • You have practiced multisig decryption for at least a year. For now, you will need to roll-your-own multisig, to ensure that your heirs or executor can access your wealth in the event of death, forgetfulness or incapacitation.
  • You have experience and a clear, documented and standardized plan for separately encrypting and distributing your private keys.
  • You understand how to implement a hard fork and have the time to do it after any hard fork split.
  • You have an exceptional need for privacy or anonymity, and you feel that a custodian is more likely to “sing” in the event of an audit or court order.
  • You have a rehearsal plan for testing your multisig recovery and a willing group of trusted friends (most of them younger than you) who can combine their keys to access your wealth.
  • After ensuring that encrypted wallet works, is completely secure and is accessible to your heirs, you have replicated it in a sufficient number of places, that you are certain that your heirs will find it after you die, even if it is 90 years in the future.

    It must not only survive your lifetime, but the knowledge of where to look and *IF* to look, must be certain, even if your home burns down, your cloud accounts have been deleted and/or Google, Amazon, Microsoft & Apple are no longer in business.

If all conditions apply to you (and only if they apply), then you may be among the 5% of enthusiasts for whom a personal hardware wallet makes sense. At some time in the next few years, it will make sense for a far greater fraction of cryptocurrency holders, rather than just the most disciplined and knowledgeable Geek-enthusiasts.

Venezuelan Migrants: Columbia opens homes & borders

With all of the Trump talk on television, American media networks have dropped the ball on newsworthy international events. Here is a humanitarian crisis that we haven’t heard much about lately.

In the 1980s and early 90s, many Colombians fled to Venezuela. At the time, the Venezuelan economy was booming. But now, the country is a poverty stricken dog, due to the colossal mismanagement of strong man, Nicolás Maduro.

Now, Venezuelans are fleeing. Inflation is hitting One Million Percent and the common laborer cannot feed his family. Artists make tote bags out of worthless currency. A hot dog from a street vendor cost the typical worker a month’s wages.

The US and Brazil have taken in 75,000 Venezuelans each. Peru has taken in far more than most countries with 414,000 immigrants. Yet, Columbia has taken in one million so far—and they are granting border crossers legal status. Many Columbian citizens are opening their homes, taking in whole families. Surprisingly, even the overcrowded border town (with massive migration at the port), enjoys booming economic activity.

Sure, there are some violent crimes blamed on new immigrants and one local police chief is trying to stir up Trump-style Xenophobia. But citizens and the national government are not buying it. 200 years ago, Columbia, Venezuela and Ecuador were one country (Gran Columbia, with Bogota as capital). Cross-border migration has been high throughout the past century due to drug wars, the conflict with FARC and various political & economic upheavals. These peoples have shared ancestry. Each country traces its roots to a similar mix of European, African & Native American ties.

Check out this short video. It is a sympathetic look at the current crises, a supportive callout to the people of Columbia and the source of my commentary, above.

Trump: It’s time to make a graceful exit

Let me be uncharacteristically contrite and deferential. No caricatures or unflattering photo. No reference to the latest news bomb. No jabs at character, demeanor, or conflicting statements. Let’s consider just two things. Saving face and appropritate timing, for those who have supported Mr. Trump or his policies…

Republican friends, I identify with you. We don’t agree on every issue of the day, but I have been a registered Republican—cut from the Reagan mold. I believe in conservative economics, draining swamps & limited government. We share these goals.

But to Trump supporters: Let’s face it. Please! It’s time to cave. It’s time for Trump to make a graceful exit.

And to Mr. Trump: Go in peace. I am sure that your heart is in the right place, but you just weren’t cut out for this job. No trial; no impeachment; no demeaning critique. Go quietly, and return to work on your real estate affairs. If you ever need a pardon, I will support your personal freedom. But do it now. Please.

Learn the basics of a steering differential

If you have ever owned a matchbook car, you know that each pair of wheels are connected by an axle. In small toys, the axle is often a steel wire about the diameter of a paper clip.

But in a road car, connecting the wheels with a straight, rigid axle yields a terrible driving experience. Here is a fascinating video on the design and evolution of a steering differential. That’s the gear system that connects a drive shaft from the transmission to a split axle—allowing powered wheels to rotate at different speeds. This is necessary to accommodate turns and uneven terrain.

Without a differential, your tires won’t last long on dry pavement and they will wobble and feather during sharp turns. After all, the outside wheel is cornering a larger radius and so, it wants to turn at a higher speed.

With the exception of 3-wheelers, like the Polaris Slingshot) or the Campagna T-Rex (photo), differentials have been used on internal combustion autos, even in the 19th century. The mechanism was known to the ancient Greeks, and patented for use in steam-powered cars in 1827—long before gasoline engines. Even the Ford Model T had a differential gearbox. But not every 4-wheeled vehicle has a differential…

One Wheel and Rear-Wheel Drive

So, how do go karts, motorized toys and some very cheap cars deal with the need for opposing wheels to spin at different speeds? Answer: The engine is shunted to just one rear wheel, often using a chain drive. This leaves the other wheel free to spin at whatever speed is necessary. It also leaves the front wheels free to navigate turns without the complicated task of sending power through a steering linkage. Because the front wheels were not powered, they simply rotate freely on independent roller bearings at the end of a straight axle.

But one-wheel power lacks traction and skid control. And it becomes dangerous whenever one wheel has less grip on the terrain. That’s where a differential comes into play. Furthermore, rear-wheel drive tends to shove a vehicle into each bump and hill rather than pulling it up and over obstacles. In the past 40 years, most cars have been redesigned to power the front wheels rather than the rear wheels. This not only improves handling, it helps in snow and on uneven terrain.

Differential Design: Simple, elegant & efficient

This video was filmed in the 1937, as evidenced by a vintage, pre-war Chevy sedan. Although this educational film it was made more than 100 years after the differential was invented, I wonder how many additional innovations have been added since?

This video explains a differential. Set time to far left to add
3 minute preface explaining the problem with straight axles.

I’m not in the business of teaching auto mechanics. But if you have caught the bug, check out these additional drive train principles —

Holy Cow! I just discovered Almond Milk

Is almond milk healthier or better tasting than cow’s milk? Here is what Consumer Report says, but you may find my own experience more illuminating…

My Experience

For better or worse, I consume a large quantity of milk; a gallon of skim or 1% every week since early youth. I grew up in an era when kids were urged to drink 4 glasses each day. Breakfast cereals and oatmeal demand milk and ice cream was everyone’s favorite treat. But now, I am more health & environmentally conscious. I have finally begun to explore alternatives.

I can’t speak with authority on which is healthier—milk or a milk alternative. But, in just the past 24 hours, I certainly have formed an opinion about fat, carbs, taste, texture, sustainability, animal cruelty, shelf life and just about anything else you might ask.

Why Bother?

Take your pick: Fat, carbs, sustainability, fear of growth hormones and antibiotics—and for some consumers: a sensitivity to naturally occurring lactose or casein.

Why Not Soy Milk?

Soy is the #1 milk Alternative. But you won’t find me singing its praises. So, let’s get this one little detail off the table from the get go: Soy is banned from this analysis based solely on taste. For me, taste disqualifies it as a milk substitute. I never thought that soy milk tasted right—either straight up, in coffee or on cereal. It just seems a bit off.

What About Almonds?

I have no idea why I waited a lifetime to try almond milk, especially considering that milk is my comfort food and I love snacking on almonds.

I just bought my very first: a 96 oz plastic container of Silk brand, unsweetened almond milk, and I am totally floored. Wow—It is fantastic! Smooth, seductively aromatic and quite sweet (even though it is unsweetened, with only 30 calories per cup). It goes perfectly with breakfast cereal, both hot or cold. (N.B. I have not tried it in coffee, because I drink it black).

Appearance / Taste:

To my palate, Silk unsweetened almond milk tastes surprisingly close to 1% or 2% dairy milk. Any almond milk has a slight nut taste and a warm color (light tan instead of bright white).

Why did I wait decades to try almond milk? I have no idea. I will try making it at home, but—for me—stabilizers, calcium, vitamins, and preservatives are not important issues. My hot buttons, are taste, texture, carbs, fat content, animal cruelty and sustainability.

Protein, Vitamins & Calcium

Dairy and Soy have protein, but almond milk does not. Getting enough protein is not an issue for me. I eat plenty of meat, fish and peanut butter. On the other hand, store brought milk is an important source of calcium and vitamins. This store bought almond milk is fortified with Vitamin A, D & E. It has 50% more calcium than cow’s milk.

Carbs

For me, this is the big kahuna. Until recently, I was boarderline diabetic. My doctor demanded that I lose weight, exercize and cut way back on carbs. I listened, and my health is much better for heeding his advice. If I hadn’t, I would be pricking my finger and shooting insulin. More importantly, I would prefer to keep my eyesight and toes.

A cup of 1% dairy milk has 12.2g of carbs; most of it from lactose, a form of sugar. Lactose-free milk has about the same carbs, because the dairy replaces lactose with another sugar. Silk unsweetened almond milk tastes great. I don’t find it lacking in flavor or sweetness. Yet, it has only 1g of carbs; 92% less than dairy milk. [continued]…

Cost, Shelf Life

I am slightly concerned about cost and shelf life. Compared with the house brand of dairy milk, Silk brand almost milk is about twice the cost. According to the label, it remains fresh for 7~10 days, while store bought dairy milk typically has an expiration of 10~12 days. Since almond milk comes in a slightly smaller container (96 -vs- 128 oz), hopefully, that this won’t be a problem.

Conclusion

I am hooked, even before comparing brands or testing recipes at home, I prefer almond from the very first taste. After consuming 2,600 gallons of cow’s milk (52 gal/yr * years since childhood), I am convinced that almonds beat cows hands down.

But, you may not share my priorities. You might react to lactose or casein or you might not like a slight nut flavor. You might want a natural source of protein or feel that almonds don’t do justice to morning coffee. Check out the comparison below and then try almond milk for yourself. Let me know what you think!

Taste
Cost
Primary Food
Shelf life
Calories/Fat
Total Carbs
Spectacular—better than milk
About 2x the cost of milk
Produced with no heat and little energy/resources
Once opened, it is 30% less than milk
30 calories and 2.5 grams (not saturated)
1g (no sugars!) -vs- 12.2g in cow’s milk

Several acquaintances have asked if I accepted cash or consideration for expressing this positive opinion about almond milk and Silk brand in particular. Not at all. My opinion and decision to publish is personal and extemporaneous. I have no commercial ties, referral fee, free samples or any consideration. I have no contacts with any vendor or food purveyor.

Sessions & Mueller: Will Trump get away with this?

Here is an opportunity to do something for our country. Do it for the environment, for women, for minorities, for truth, for the 1st amendment. Do it for the world.

This is not a matter of Republican –vs– Democrat or Conservative –vs– Liberal. It is scholar, leadership and ethics –vs– ignorance, intolerance and an utter morass.

Sign the change.org petition. Protect the special counsel investigation. Defend justice.

Does voting against someone violate a principle?

These “I Voted” stickers are lined up on our microwave oven—a tradition in our home that began 10 years ago. Each sticker represents an even-year election.

I look up to my older brother. He has always been a mensch in dealing with both personal and business relationships. More consistently than me, he stands for noble ideals. He is not quick to give into self-interest or raw emotion and he always weighs the affect of his actions and decisions on the greater community.

But sometimes, standing firm on principle can backfire. I think that this is such a time.

Two years ago, my brother felt that neither major-party candidate for US president was worthy of his vote. And so, he voted for a 3rd-party candidate. I recall his conviction: “I must have faith in the candidate that gets my vote. I will not vote against someone.”

I felt differently. I agreed that the 3rd party candidate was best for the job, but I was more practical about his very low polling number (under 5%). A vote for him would make my voice ineffective. I was more concerned with the possibility of a seriously racist and unqualified man seizing the oval office.

In principle, my brother and I supported the same candidate in 2016. But in practice, I felt that it was necessary to stop a train wreck in the making. I voted against a candidate instead of for a candidate. I voted against racism, bullying, misogyny, leadership without scholarship, a tyrant without integrity, an individual who builds walls instead of bridges—and one who lies about how the wall will be funded.

My brother voted for the candidate with no path to victory. In the interest of fairness and full disclosure, he felt that the other major-party candidate had significant flaws, but he agrees that she wasn’t a train wreck. I would have preferred that he helped to avert the dismantling of all that we value.

I still admire my brother. His word is his bond and his principles are unshakeable. But today, I did exactly what I did two years ago. This time, I hope it makes a difference.

Why vote against someone?

I am ashamed to admit that it has become necessary to vote against something or someone… Against an insipid cancer which is taking our country back to the days of slavery, eugenics, dirty politics and Manifest Destiny in the guise of exceptionalism.

We draw our strength from our diversity, friends—a frightening Truth for those who benefit from their perch. But, we Europeans aren’t the first to enjoy this land. We needn’t be pushed backwards toward ignorance, intolerance and racism. A rising ocean floats all boats. Blacks, Jews, Asians, Mexicans, Native Americans, “unnamed Middle Eastern men” and those who confirm their gender identity are not the problem. They are our strengths—our partner and a solution. Together, we represent a nation of rich diversity, culture and with better opportunity for a successful and vibrant economy.

Far from our differences being a threat, the real problem is intolerance and the assumption of a “zero-sum” game. It isn’t necessary and it isn’t true.

I recognize that there is a legitimate debate over border security, healthcare, gun control, abortion and social programs. Some even feel that there is still a debate over the environment. But, we needn’t be predators. We are not in a battle over territory or the carcass of a deer. Resist racism and intolerance. We can all rise to put this train back on its tracks.

Observations about trust and moral authority (in just this past weekend!)

Will we all be using a Blockchain currency some day?

At Quora.com, I respond to quetions on Bitcoin and Cryptocurrency. Today, a reader asked “Will we all be using a blockchain-based currency some day?”.

This is an easy question to answer, but not for usual Geeky reasons: A capped supply, redundant bookkeeping, privacy & liberty or blind passion. No, these are all tangential reasons. But first, let’s be clear about the answer:

Yes, Virginia. We are all destined  to move,
eventually, to a blockchain based currency.

I am confident of this because of one enormous benefit that trumps all other considerations. Also, because of flawed arguments behind perceived negatives.

Let’s start by considering the list of reasons why many analysists and individuals expect cryptocurrencies to fail widespread adoption—especially as a currency:

  • It lacks ‘intrinsic value’, government backing or a promise of redemption
  • It facilitates crime
  • Privacy options interfere with legitimate tax enforcement
  • It is susceptible to hacks, scams, forgery, etc
  • It is inherently deflationary, and thus retards economic growth
  • It subverts a government’s right to control its own monetary policy

All statements are untrue, except the last two. My thoughts on each point are explained and justified in other articles—but let’s look at the two points that are partially true:

  1. Indeed, a capped blockchain-based cryptocurrency is deflationary, but this will not necessarily inhibit economic growth. In fact, it will greatly spur commerce, jobs and international trade.
  2. Yes, widespread adoption of a permissionless, open source, p2p cryptocurrency (not just as a payment instrument, but as the money itself), will decouple a government from its money supply, interest rates, and more. This independence combined with immutable trust is a very good thing for everyone, especially for government.

How so?

Legislators, treasuries and reserve boards will lose their ability to manipulate the supply and demand of money. That’s because the biggest spender of all no longer gets to define “What is money?” Each dollar spent must be collected from taxpayers or borrowed from creditors who honestly believe in a nation’s ability to repay. Ultimately, Money out = Money in. This is what balancing the books requires in every organization.

This last point leads to certainty that we will all be using a blockchain based cryptocurrency—and not one that is issued by a government, nor one that is backed by gold, the dollar, a redemption promise—or some other thing of value.

Just like the dollar today, the value arises from trust and a robust two sided network. So, which of these things would you rather trust?

a) The honesty, fiscal restraint and transparency of transient politicians beholden to their political base?

b) The honesty, fiscal restraint and transparency of an asset which is capped, immutable, auditable? —One that has a robust two sided network and is not gated by any authority or sanctioned banking infrastructure

Today, with the exception of the United States Congress, everyone must ultimately balance their books: Individuals, households, corporations, NGOs, churches, charities, clubs, cities, states and even other national governments. Put another way: Only the United States can create money without a requirement to honor, repay or demonstrate equivalency. This remarkable exclusion was made possible by the post World War II evolution of the dollar as a “reserve currency” and the fractional reserve method by which US banks create money out of thin air and then lend it with the illusion of government insurance as backing. (A risky pyramid scheme that is gradually unravelling).

But, imagine a nation that agrees upon a form of cash that arises from a “perfect” and fair natural resource. Imagine a future where no one—not even governments—can game the system. Imagine a future where creditors know that a debtor cannot print paper currency to settle debts. Imagine what can be accomplished if citizens truly respect their government because the government lives by the same accounting rules as everyone else.

A fair cryptocurrency (based on Satoshi’s open-source code and free for anyone to use, mine, or trade) is gold for the modern age. But unlike gold, the total quantity is clearly understood. It is portable, electronically transmittable (instant settlement without a clearing house), immutable—and a precious substance needn’t be assayed in the field.

And the biggest benefit arises as a byproduct directly of these properties: Cryptocurrency (and Bitcoin in particular) is remarkably good for government. All it takes for eventual success is an understanding of the mechanism, incremental improvement to safety and security practices and widespread trust that others will continue to value/covet your coins in the future. These are all achievable waypoints along the way to universal adoption.


Ellery Davies co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He is Top Writer at Quora and sits on the New Money Systems board of Lifeboat Foundation. Book a presentation or consulting.

You don’t understand Bitcoin because you think money is real

Maria Bustillos is founder of the blockchain supported publication, Popula. I stole the title of this post from her essay at Medium.com (linked below).* I hope that Maria considers it a tribute rather than title-plagiarism. Her article is blocked by a pay wall, so allow me to explain a concept that confounds even a Nobel Prize winning economist. My take on the issue is somewhat different than Ms. Bustillos.

The difficulty understanding or appreciating Bitcoin boils down to a misconception that the dollar is backed by something more tangible, such as gold, guns or the promise of redemption. Not only is this an illusion, but Bitcoin is backed by something far more tangible, intrinsic and durable.

The illusion that “real” value emanates from government coupled with a robust consumer economy has been woven into our DNA for millennia. But, the value we attribute to a Dollar, Euro, or Yuan is a result of conditioning rather than any intrinsic value. That same conditioning has led us to believe that there is something sane and inherent in a nation that controls its money supply and its monetary policy.

Most public works projects—power generation, space ships, or the telephone network—were controlled by government in the past. If not, they were regulated as a licensed monopoly. This creates a choke point, a lack of competition, and a gaping opportunity for inefficiency, mismanagement or graft. It defies a free market economy and it concentrates power in the hands of politicians. But, at one time, it seemed necessary.

You might assume that government controlled these industries because they relate to areas of critical infrastructure and public welfare. That’s part of it, but it’s not the real reason. In each sector, a distributed or free market solution was prevented due to technology limitations or issues of scaling and geography.

Government issued money exists because in the past, we had no mechanism to arrive at a consensus on the value of something that is portable, fungible, secure, anti-forgeable and easily transmitted. Not even Gold fits the bill (pun intended). Prior to 2009, the only thing that met the criteria for money in a modern society was government issued fiat. At least someone, somewhere said that this is money and that this is what we must use to pay our taxes.

Today, there is no more reason for a government to control its money supply than there is for it to control communication networks, space travel or package delivery services. Today, a free and competitive marketplace benefits all of these industries and even government itself. And here’s the kicker: No harm will come to a government that uses a completely trusted, transparent and decentralized currency, rather than firing up a printing press whenever a group of transient politicians spends beyond their means.

The economic order facilitated by the blockchain is not as radical as it seems. Aristotle lamented the lack of an accounting tool that we can now address via the clever combination of encryption and a communications network that is both instant and ubiquitous.

I am not smarter than the average bear, nor am I clairvoyant. Once in a while, I recognize a truth before the masses—and before its time. It’s time to clearly and succinctly illuminate business, banks, consumers, creditors and government:

  1. The value we attribute to the dollar is an illusion
    ..
  2. Bitcoin is not just fair and cost effective. It is tangible and durable. It is good for consumers and good for governments.

Bitcoin ushers in an era of accountability and more fairness. It does not facilitate crime, nor interfere with a government’s ability to tax, spend or enforce tax collection.

Bitcoin is a cryptocurrency with a firmly capped supply. Will it lead to deflation? Could governments lose control over their own monetary policy? Yes to both questions…

But, these are each good things. Capping the money supply and decoupling a nation from monetary policy not only eliminates inflation—it increases access to capital, retires debt more quickly, reassures creditors, imposes transparency and honesty—And it accelerates economic growth, rather than retarding commerce.

Dispelling three millennia of conditioning can be confusing and unsettling. I hate understanding something before my peers. Let’s please get ahead of the curve on this one. I want to enjoy the benefits of using real money in my lifetime.


Related Reading:

* I wrote the first article more than 7 years ago. It is a simple explanation of a geeky, new economic mechanism. Bitcoin had not yet entered mainstream media nor gained attention of Wall Street investors. But consider the similarity to Maria’s tutorial in the 2nd article. Perhaps Maria and I think alike!

Getting into Bitcoin? 2 subtle points…

Andreas Antonopoulos releases a new talk on his YouTube feed several times each week. If you are still a Bitcoin doubter, watch his latest video with an open mind. It highlights two subtleties of utility and adoption that can overcome the gap between early adopters and doubters.

Early Adopter: I do not refer to an investor, but one who embraces Bitcoin as both a payment instrument and a currency. Someone who realizes that is very likely to become a stateless currency some day.

Doubters: These are individuals who see Bitcoin as either risky, unnecessary, susceptible to hacking & scams, or fueled by libertarian anarchists. In general, they do not perceive a fundamental or compelling benefit to a stateless currency—or they believe that Bitcoin is not backed by something real, tangible or enforceable. They question a currency without some form of central authority, clear backing or point of redemption.

In particular, Antonopoulos helps his audience reconcile the relationship of a decentralized currency with a community or government that does not fully embrace the benefits or fears the downside (crime, tax dodging, deflation, loss of control over the monetary supply).

Below, I have added notes related to two key points below. These are the very same points that I focus on in my conference presentations. Andreas is very articulate and we are certainly on the same page about these subtle but critical issues:

1. Resist the urge to regulate or control
Timestamp 10:34

— Governments or trusted, established banks (e.g. Merrill Lynch) may try to persuade you that blockchain-backed currencies have potential, but that certain ‘safeties’ must be added to the to make them compliant and commercially viable. They will say that this is needed to encourage compliance & reporting—or to thwart criminal activity.

For example, the treasury, IRS or other fiscal bureaucracy might ask the community to respect a list of assets that are tainted by criminals and to seamlessly substitute new coins for the tainted coins. This seems like a small change. In fact, it seeks only to overlay a law-and-order framework on top of Bitcoin. But, don’t be misled by good intentions.

This is exactly what you don’t want to do! Fiddling with the legitimacy of outstanding wealth undermines the entire purpose and benefit of migrating to a decentralized, stateless currency. The architecture must remain open, permissionless, resistant to censorship, and resistant to manipulation by any authority, whether good or bad. There is already a mechanism for distributed consensus—one that does not vest any central authority with the power to annul a user’s wealth by edict.

Ironically, even the US treasury recognizes the critical importance of unit fungibility. It guarantees the exchangability of every issued dollar for any other—no matter what its history.

2. Don’t just save—Use it in your business
Timestamp 12:12

— How do I get started with Bitcoin (or some other cryptocurrency). Help me get started with an exchange so that I can buy my first crypto coin…

No, no, NO! Don’t start with an exchange account. Learn how to set up a wallet in your home or online. One that you control. Rather than hoard Bitcoin, accept and spend it. This is critical if we hope to see eventual adoption of a transformative economic mechanism in our lifetimes.

— Buying cryptocurrency should not be your first step into the game. Don’t think of crypto as an investment asset. Think of it as a currency that you accept and spend.

Bitcoin will not be relevant in your lifetime, until the fraction of trades fueled by purchase & sale, salaries, fees and loan payments dwarfs the number of transactions fueled by speculators, investors, HODL and even sector funds or ETFs. All of these trades retard the day that Bitcoin will be stable, fluid, fungible and useful. Currently that first set of transactions represents 98% of all activity. To spur adoption, we must change push the fraction of investor transactions and currency exchange below 30%. It’s a tall order, but it is gradually beginning to happen.


Ellery Davies co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top Bitcoin writer at Quora. Book a presentation or consulting engagement.

Ric Edelman: Bitcoin will become asset class

Kudos to WallStreet analyst and advisor, Ric Edelman. He drank the Kool-Aid, he understands a profound sea change, and he sees the ducks starting to line up.

Check out the clearly articulated interview, below, with Bob Pisani at the New York Stock Exchange and legendary Wall Street advisor, Ric Edelman, (Not my term…That’s what CNBC anchor, Melissa Lee, calls him). Read between the lines, especially the last words in the video, below.

Ric Edleman has just joined Bitwise as both investor and advisor. This lends credibility and gravitas to the organization that created the world’s first cryptocurrency index fund. Bitwise benefits from Edelman’s affiliation, because the US has been slow (some would say “cautious”) in recognizing the facts on the ground: Cryptocurrency is already an asset class.

Edelman fully embraces a strong future for Bitcoin—not just as a currency or payment instrument, but as a legal and recognized asset class; one that is at the starting line of a wide open racetrack. He explains that the SEC sets a high bar for offering a Bitcoin ETF, but that this will be  achieved. It will pave the way for large institutions, pension funds, etc to allocate a portion of money under management for blockchain products.

At timestamp 3:39, Melissa asks Edelman “Why wait for an ETF?” and “If you believe this strongly, why not advise clients to invest a portion of assets into Bitcoin right now?

Edelman’s response is stunning. He explains that he is frustrated, because this is what he wants to advise. But, his firm is bound by the Investment Act of 1940—and so, they cannot tell a client “Go to Coinbase” or “Invest in a private fund such as Bitwise—that I am such a big fan of. We don’t have that ability in our practice.” [i.e. until the SEC recognizes Bitcoin as an asset].

In my opinion (and in the opinion of Edleman), SEC recognition of Bitcoin as an asset can’t be far off…

  • It’s already happening in other countries. Reputable exchanges and index funds exist today.
  • Unlike a traveler’s check or Amazon gift card, it is inherently a store of value, whether or not you believe that its value is intrinsic;
  • The IRS already considers it an asset for tax purposes (What an odd schism in definition & treatment!)
  • It is legal to pay staff in Bitcoin and use it to settle debts, for any recipient that accepts it. For employees and consultants, it is a wage or stipend, just like FIAT. They can convert into cash immediately—or retain crypto it to pay their own bills)

It’s not difficult to read between the lines. Edleman makes a clear recommendation, although he can not yet advise this—certainly not on the record. His personal forecast for long term adoption and appreciation, especially of Bitcoin, matches my own analysis. His new affiliation with Bitwise (a pretty bold move) demonstrates certain commitment.

This ends my analysis of Edelman’s strong endorsement. But it raises another important question:

If large financial institutions are likely to offer Bitcoin products and services—and if credible analysts & advisors are chomping at the bit to recommend this new asset class—shouldn’t we invest in Bitcoin now?!

Ironically, I do not recommend hording or investing in cryptocurrency, even as a collectable. Why?! Because of the big “Investment Catch-22”. I don’t discourage investing in Bitcoin because I fear that its value will lessen. It is for a completely different reason. And so, my advice against investing is half-hearted.

Currently, Bitcoin and altcoins are widely misunderstood. Many people have these false impressions…

  • It is not backed by anything
  • It interferes with tax collection
  • Cryptocurrency facilitates crime
  • Governments will never allow it
  • They do not convey compelling benefits over government-issued currency
  • They water down the overall money supply
  • Their deflationary nature threatens economic growth
  • They are easier to lose and subject to scams & hacking
  • They do not facilitate refunds, rescission, recourse and customer claims
  • They interfere with a government’s ability to control its monetary supply

All of this is untrue, except the last item—and that one is a tremendous benefit.

Additionally, blockchain currencies fluctuate widely in real market purchasing power, many altcoins and all ICOs are scams, and acceptance is far from being ubiquitous. Clearly, widespread adoption requires stability, infrastructure, trust and ubiquity.

This cannot happen until two things occur:

  1. The fraction of transactions in normal business and retail commerce (purchases, salaries, debt payment and settlement) must significantly dwarf the fraction that is driven by investors, hoarders and speculators.
  2. A significant number of established brands, services or retailers must begin publishing prices in Bitcoin and honoring those prices throughout a defined sale period (e.g. until the next catalog is published or until the next production run).

Things are beginning to change, but for such a positive and transormative mechanism, that change is frustratingly gradual.

A series of falling dominos is already in process. But, the end game is retarded by those of us who invest in Bitcoin, because we are removing a limited resource from circulation and contributing to volatility. We do this, because we realize that—in the long run—Bitcoin can only go up in value. Yet, our investment at such an early stage (before consumer adoption) makes the infant sick.


Ellery Davies co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top Bitcoin writer at Quora. Book a presentation or consulting engagement/.

Sarah Huckabee Sanders: America’s Tariq Aziz

Sarah Huckabee Sanders, please tell me—I earnestly wish to know…

Are you completely daft?!

• Have you no honor?      • No self respect?      • No backbone?      • No shame?
• No concern for your future career?      • No concern for sexual assault victims?

I mustn’t be unfair.
Let’s recall a bit of recent history…

Five days ago, in the wake of Judge Brett Kavanaugh’s testimony before the U.S. Senate, President Trump showed sympathy toward Dr. Christine Blasey Ford. Regarding her claim of attempted rape by Brett Kavanaugh—and her fear of being killed by pressure to her mouth— Trump acknowledged that she was “very credible” and that she is “a very fine woman”.

What a difference 5 days makes!

Shortly after Dr. Ford and Judge Brett Kavanaugh testified in an open Senate inquiry, Republican Arizona Senator Jeff Flake was cornered in an elevator by two woman survivors. This led him to announce that he would not confirm Kavanaugh unless the FBI was given orders to investigate claims of alcohol fueled violence toward women.

If you live in the United States, and have not been squirrelled away on a camping trip, Buddhist retreat, or secret skunkworks project, then you already know this. It’s yesterday’s news. But today, Trump railed into Blasey Ford, making her out to be a liar and a political operative. At a red state political rally, he attacked this “fine woman” by mocking her memory, claiming that she recalls having one beer, but forgets where, when and with whom she was with at the time of the alleged attack. Trump goes on to claim that she remembers only having a drink and nothing else.

In fact, Dr. Ford recalls the names of others present, what she was wearing and very specific details of the attack. But, beyond the flat-out lie, Trump pretended to be Dr. Ford, by shrieking and whining in the first person—just as he did while flailing his arms in mockery of a handicapped reporter during his election campaign.

Nothing can be said about these low points in American politics other than to note that we are surviving a period in which the Oval Office is occupied by a child, a bully, a liar and an ignorant human being.

But this post is not about Trump. It is about Sarah Sanders, articulate and passionate defender for a dunce.

Now, let’s go back further than 5 days
— Let’s turn back the clock 15 years

Who remembers Tariq Aziz? He was Iraq’s deputy prime minister and then foreign minister, under Sadam Hussein. His early military and political careers weren’t notable to anyone living outside of Iraq. But you couldn’t help to marvel at this guy during and after Operation Iraqi Freedom, the US led an invasion—first to find weapons of mass destruction—and later to find Sadam himself. Throughout the war, Aziz was thrust squarely into the spotlight as spokesman and poster boy for Sadam’s regime.

With the veracity of a broken cuckoo clock, Aziz insisted that the American dogs were being defeated in a string of bloody battles; that Allied soldiers were scurrying like mice, and that no Iraqi had been affected by the imperialist aggression. If it weren’t for news from hundreds of reporters (and photos through the bomb sites of coalition planes), you could almost believe him. But ultimately, the facts demonstrated the opposite of what he claimed. The schism between facts and fantasy revealed Aziz to be more than a lackey. He became a court jester and fodder for late night comedy.

As the Iraq army crumbled, troops deserted, Sadam’s sons were shot to death and Hussein ran into the forest to hide. Throughout it all, Aziz could have focused on the immorality or questionable legal basis for the American invasion. But he didn’t. Instead, he continued to make fun of Allied operations and insisted that American’s were losing. With conviction and character, he said that American’s were scared, retreating, deserting and on the run.

If the war weren’t so bloody, the Aziz diatribes would be comical. But, it was bloody—thousands of Americans and a half million Iraqi soldiers and civilians among the dead.

There probably weren’t any weapons of mass destruction—and history may ultimately condemn USA for initiating war when we should have focused ISIS terrorists and on finding Osama bin Laden. But, what made Tariq Aziz both memorable and laughable was his incredible loyalty to a dictator. He defended and distorted whacky behavior with passionate fervor.

Getting back to Sarah Sanders…

I won’t draw out the comparison, but for one minute, consider the similarity between Tariq Aziz and Sarah Sanders. They are in the same business: Putting lipstick on a pig. Defending the indefensible!

And today, Sarah defended the mockery of a sexual assault victim, the bullying by her boss, and the lies of a man who has no shard of credibility. Why? Can she find no other employment?

Sanders is saddled with the world’s worst job. It must be horrible to be in her shoes. She must defend and justify behavior of a child who commands a once great nation. She must explain misogyny, xenophobia, abject ignorance, mockery of the handicapped and of victims, and a continuous stream of lies. She must defend “sh*thouse nations” reneging on trade agreements and nuclear treaties, rude behavior toward a chancellor and crude behavior in the presence of a Queen. At some point, any reasonable person must ask “Why, Sarah?!!” Why defend the indefensible and distort the obvious. Is it out of a sense of loyalty? Out of patriotism? —Or out of sheer ignorance? Have you always stood firm with bullies and blamed victims?

When Sean Spicer was Whitehouse spokesperson, one could easily overlook his daily Daffy Duck pronouncements. Let’s face it: He was sort of a goofball from the very start. With no history, no pedigree, and no reputation to protect, it was easy to dismiss his absurd excuses. He was just a marionette in the oval office—a ‘Mini Me’ to Dr. Evil.

But when Sanders stepped up to the podium, I was  impressed. She was educated, articulate, impassionate and with an apparent capacity for critical thinking. She didn’t appear to be a pushover—not for the press and not even for the president. For a few weeks, she convinced me that she was part of the checks-and-balances offered by a critical staffer.

Alas, our hopes for a reasonable liason to the chaos in Trump’s head were dashed. And now, they are dashed more than ever.

Sarah: Have you no moral compass? Have you no shame? In what capacity will you work after a Trump presidency?

Disruption Experience Nails It

The Disruption Experience this Friday in Singapore is a blockchain event with a difference. With apologies to the Buick commercial, this is not your grandfather’s conference

I know a few things about blockchain conferences. I produced and hosted the first Bitcoin Event in New York. My organization develops cryptocurrency standards and practices. We help banks and governments create policy and services. And as public speaker for a standards organization, I have delivered keynote presentations at conferences and Expos in Dubai, Gujarat India, Montreal and Tampa, New York and Boston.

Many individuals don’t yet realize that both Bitcoin and the blockchain are as significant as the automobile, the transistor and the Internet. I was fortunate to grasp Bitcoin and the blockchain early in its history. It is never boring to help others understand the blockchain.

And so, I am an evangelist for both a radically improved monetary system and a transformative tool. During the past eight years, I have honed the skill of converting even the most profound skeptic. Give me 45 minutes in front of any audience—technical, skeptical or even without any prior knowledge—and I will win them over. It’s what I do.

An Atypical Conference Venue

As Bitcoin and altcoins begin the process of education, adoption and normalization, the big expos and conference events have begun to splinter and specialize. Today, most blockchain events market their venue to specific market sectors or interests:

For me, Smart Contracts are one of the most exciting and potentially explosive opportunities. As a groupie and cheerleader, I am not alone. Catering to the Smart Contract community is rapidly becoming a big business. Until this week, I thought it was the conference venue that yielded the biggest thrills. That is, until I learned about the Disruption Experience…

Few widely promoted, well-funded events address the 600 pound elephant in the room: What’s the real potential of blockchain trust, blockchain economy or blockchain AI? Take me beyond tokens and currency (please!). How can an international event help us to realize the potential of a radical new approach to accounting, trust and arbitration? Let’s stop arguing about Bitcoin, Ethereum or ICOs…

How can we unleash the gorilla—and grease—
a fundamental change that benefits mankind,
while providing leapfrog technologies for us?

—At least, that’s my spin on the potential of an unusually practical venue.

That question is slated to be answered on Friday at a big event in Singapore. And get this—It is modestly called a “Sneak Peak”. This is what I have been waiting for. The Disruption Experience premiers on September 28 at the V Hotel Lavender in Singapore. But don’t show up at the door. This event requires advance registration. (I do not offer a web link, because I hate being a conference huckster. If you plan to be in the area at the end of this week, then Google the event yourself).

What’s the big deal?

The Disruption Experience team is populated by blockchain developers, educators and trainers who take issue with existing events that focus on monetization. The purity of intention was overrun by greed. And so, they set out to form an event with a more altruistic purpose: Build technology, relationships, mechanisms and educational tools that better mankind. The focus at this event and the conferences that follow is to educate, expose and innovate. The focus is squarely on disruptive technology.

With their team of blockchain innovators focused on benefits and progress, I suspect that attendees will get what we have been searching for: Education, investment opportunities, an edge on new technologies and job opportunities.

Cusp of a Breakout Year

As an analogy, consider the race to understand Bitcoin and consider the engines & motors.

Bitcoin and the blockchain were introduced simultaneously in a 2009 whitepaper. It’s a bit like explaining the engine and the automobile together—for the very first time. One is a technology with a myriad of applications and the potential to drive innovation. The other is an app. Sure, it’s useful and important, but it’s just an app.

For 8 years, Bitcoin was a radical and contentious concept. Of course, there was the mystery of Satoshi and an effort to pinpoint his or her identity. And, a great debate raged about the legitimacy and value of decentralized, ethereal money. But, the interest was reflected primarily on the pages of Wired Magazine or at Geek-fests. Bitcoin was complex and costly to incorporate into everyday purchases and there were questions and gross misconceptions about hacking, regulation, taxes, criminal activity. The combined audience of adopters, academics, miners and geeks was limited.

That changed last year. With serious talk of exchange traded funds, a futures and derivatives market began to take shape. A critical operational bottleneck was addressed. Ultimately, 2017 was a breakout year for Bitcoin. You may not be using it today, but the smart money is betting that it will enhance your life tomorrow—at least behind the scenes.

Likewise, 2019 is likely to be the breakout year for blockchain applications, careers, products and—perhaps most importantly—public awareness, understanding and appreciation. Just as motors and engines are not limited to automobiles, the blockchain has far more potential than serving as an engine for decentralized cash. It is too important to be just a footnote to disruptive economics. It will disrupt everything. And we are the beneficiaries.

What is Interesting at The Disruption Experience?

The Friday event in Singapore covers many things. The presentations and tutorials that quicken my pulse relate to:

  • AI
  • Smart Contracts
  • Serious insight into blockchain mechanics, applications, adoption, scalability and politics
  • There’s even an exciting development in ICOs…

If you read my columns or follow my blog, then you know I am not keen on initial coin offerings (ICOs). That’s putting it mildly. They are almost all scams. But a rare exception is the Tempow ecosystem which encompasses three functional tokens. Stop by their exhibit and meet the officers of a sound economic mechanism that facilitates decentralized trading while overcoming the efficiency paradox.

What can I do at Disruption Experience?

The September 28 event is a preview for January’s Inaugural Event.

  • Listen and learn what Disruption is all about
  • Experience the first Virtual Reality Expo
  • Get to know the speakers and founders of Disruption
  • Hear about the Disruption Utility Token (DSRPT Token)
  • Meet the Disruption Team
  • See Disruption Expos

… and much, much more.

If you get to the big event, be sure to find the organizer and host, Coach Mark Davis. Tell him that I sent you. His passion and boundless enthusiasm for the blockchain and especially for transformative disruption is quite infectious.

Related reading:


Ellery Davies co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He sits on the New Money Systems board of Lifeboat Foundation and is a top Bitcoin writer at Quora. Book a presentation or consulting engagement. He is also an unpaid advisor to The Disruption Experience.

ISS hole: We will look back on Sept 2018

Someday, people across the world will look back on September 2018, much like we look back on the terror attacks of 9/11 or the safe return of Apollo 13 in 1970. They are touchstone moments in world history. For Americans, they are as indelible as Pearl Harbor, the assassination of John F. Kennedy or the first moon landing.

So, what happened just now? The month isn’t even half over, and the only events we hear about on the news atre related to Hurricane Florence and Paul Manafort. (In case you live under a rock or are reading this many years hence, the hurricane made landfall on the coast of the Carolinas, and the lobbyist / political consultant / lawyer / Trump campaign chairman pled guilty to charges and has agreed to cooperate in the continuing Mueller investigation).

No—I am not referring to either event on the USA east coast. I am referring to a saga unfolding 254 miles above the Earth—specifically a Whodunit mystery aboard the International Space Station (ISS). NASA hasn’t seen this level of tawdry intrigue since astronaut Lisa Marie Nowak attacked a rival for another astronaut’s affection—driving across the country in a diaper to confront her love interest.

So What is the Big Deal This Week?!

It didn’t begin as a big deal—and perhaps this is why mainstream news services are slow to pick up on the latest information. But now, in my opinion, it is a very big deal.

A small hole was discovered on a Russian Soyuz spacecraft (a lifeboat) attached to the International Space Station. That hole, about the size of a pea, resulted in the slow decompression of atmosphere. The air that our astronauts breathe was leaking out of ISS and into the void of space.

So far, the story is unremarkable. Ground scientists issued two comfort statements about the apparent accident. They addressed the possible cause and the potential risk:

  1. This small hole could have occurred on the ground (during construction). Alternatively, it could be the result of a micro-meteorite or even man-made space debris. Perhaps a fleck of varnish peeled off of a satellite and collided at high speed with the massive, orbiting space station. No problem. The ISS and each commuter spacecraft that dock with it are designed to sustain collisions with small particles—even ones that punch a pea-sized hole through the hull.
  2. Air pressure in the ISS and in each spacecraft is only 1 atmosphere. This type of small leak could effectively be stemmed by simply applying duct tape.

The initial news event was interesting to space buffs, but it didn’t seem to present a significant threat to our astronauts, nor require a massive technical response. You may recall that duct tape played a critical role in getting the Apollo 13 astronauts safely back to Earth almost 50 years ago. The crisis that they faced was far worse. The solution required extensive impromptu engineering both in Houston and up in the spacecraft. What an awesome historical echo and footnote to an event that captured the hearts and minds of so many people back in 1970.

But the story does not end with a piece of duct tape. In fact, it just got much more interesting…

After a few days, NASA revealed that the hole was intentionally drilled, and the deed probably occurred while the ship was docked at the space station. Since there is no log of activity with tools in this section of the laboratory, it strongly suggests an act of sabotage by one of the astronauts on board.

And now, we have some new information: Guided by ground engineers, astronauts fished an endoscope through the hole to inspect the outside of the spacecraft. Guess what?! That same drill bit damaged the meteorite shield which stands 15 mm beyond the pressurized hull of the spacecraft. This will add significant risk to anyone traveling back to earth in the damaged ship.

One theory is that a member of the crew wanted to create the conditions to more quickly return to Earth. Now, that return trip may present and elevated risk to occupants.
This story has not yet concluded, of course. It will likely conclude with tragedy or triumph. In the better scenario, no one will die—but successful return and reentry will be followed by a criminal conviction or court martial. I am having difficulty envisioning an alternate outcome.
Read about it here. The story is unfolding, but the details are utterly fascinating.

Still haven’t written for Medium? Be the content, instead!

Are you worried about Bitcoin dipping to within pennies of $6,000 today? That’s a magic buy alarm for me—and it looks like I may not be alone.

Perhaps it is no coincidence that a student intern (and budding author) from Portugal interviewed me today. He is quite knowledgeable about Bitcoin and the blockchain. I did not feed him the questions. It was a standard “Ask an expert” format, and I didn’t think much of the interview at first.

My interviewer, Diogo Fierreira, rolled out a phalynx of questions longer than my arm. They were sweeping and thorough; general and specific. Still, I wasn’t sure how much time I could afford to devote. In the end, I am glad that I stuck with the young columnist and remained cogent. I now realize that this fellah really knows how to market his interviews! By end of day, the entire interview was published at Medium.com.

I have never been published at Medium, but I certainly enjoy the quality and diversity of thought provoking content. Now my little pearls of wisdom are forever enshrined in stone, (Well—at least sandstone!)

Warning: Medium.com claims that this is a 12 minute read. At just over 3,000 words, it is a bit longer than most of my own articles.