Uncle Sam all set to collect back taxes from Coinbase customers

The lengthy legal battle between Coinbase and the U.S. Internal Revenue Service (IRS) has finally come to a close, and it was the tax agency that emerged victorious—mostly.

On Tuesday, U.S. Magistrate Judge Jacqueline Scott Corley ordered the San Francisco-based company to turn over its customer records for all cryptocurrency-based transactions—buy, sell, send or receive—amounting to more than $20,000 that took place between 2013 and 2015. The summons covers an estimated 14,000 Coinbase’s “highest transacting” customers, representing less than 1% of the company’s customer base.

“The summons as narrowed by the court serves the IRS’s legitimate purpose of investigating Coinbase account holders who may not have paid federal taxes on their virtual currency profits,” according to the court ruling.

The court, however, narrowed down the scope of the IRS summons. Under the ruling, the federal government is only allowed to the Coinbase customers’ taxpayer ID number, name, birth date, address, records of account activity including transaction logs or other records that identify the date, amount as well as type of transactions made, and periodic statements of account of invoices.

While it’s not the complete victory that Coinbase had hoped for, the company said the court ruling was “a substantial and unprecedented victory for the industry” and cryptocurrency holders.

“In narrowing the scope of the summons, we are pleased that the court acknowledged the privacy rights at stake in this matter,” David Farmer, director of communications at Coinbase, stated in a blog post.

“Thanks to Coinbase’s efforts, more than 480,000 customers’ records were preserved from disclosure. This is a 97% reduction in the number of customers impacted by this summons,” he added.

Tuesday’s order comes more than a year after the IRS started pursuing Coinbase to submit records of its customer transactions as part of the federal government’s probe into possible tax fraud activities. The U.S. government doesn’t suspect Coinbase of engaging in any wrongdoing, but the IRS argued in a court filing that “U.S. taxpayers, including Coinbase users, have made use of virtual currencies to avoid the reporting and payment of taxes,” hence the summons.

In response, Coinbase took the fight to block the “unjustified and invasive” summons back to the court. This eventually led to the IRS decision to narrow down the scope of the summons. Coinbase said it is currently reviewing Tuesday’s court order, promising to notify affected users of any disclosure “in the event that we ultimately produce the documents” under the court order.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Uncle Sam all set to collect back taxes from Coinbase customers

The lengthy legal battle between Coinbase and the U.S. Internal Revenue Service (IRS) has finally come to a close, and it was the tax agency that emerged victorious—mostly.

On Tuesday, U.S. Magistrate Judge Jacqueline Scott Corley ordered the San Francisco-based company to turn over its customer records for all cryptocurrency-based transactions—buy, sell, send or receive—amounting to more than $20,000 that took place between 2013 and 2015. The summons covers an estimated 14,000 Coinbase’s “highest transacting” customers, representing less than 1% of the company’s customer base.

“The summons as narrowed by the court serves the IRS’s legitimate purpose of investigating Coinbase account holders who may not have paid federal taxes on their virtual currency profits,” according to the court ruling.

The court, however, narrowed down the scope of the IRS summons. Under the ruling, the federal government is only allowed to the Coinbase customers’ taxpayer ID number, name, birth date, address, records of account activity including transaction logs or other records that identify the date, amount as well as type of transactions made, and periodic statements of account of invoices.

While it’s not the complete victory that Coinbase had hoped for, the company said the court ruling was “a substantial and unprecedented victory for the industry” and cryptocurrency holders.

“In narrowing the scope of the summons, we are pleased that the court acknowledged the privacy rights at stake in this matter,” David Farmer, director of communications at Coinbase, stated in a blog post.

“Thanks to Coinbase’s efforts, more than 480,000 customers’ records were preserved from disclosure. This is a 97% reduction in the number of customers impacted by this summons,” he added.

Tuesday’s order comes more than a year after the IRS started pursuing Coinbase to submit records of its customer transactions as part of the federal government’s probe into possible tax fraud activities. The U.S. government doesn’t suspect Coinbase of engaging in any wrongdoing, but the IRS argued in a court filing that “U.S. taxpayers, including Coinbase users, have made use of virtual currencies to avoid the reporting and payment of taxes,” hence the summons.

In response, Coinbase took the fight to block the “unjustified and invasive” summons back to the court. This eventually led to the IRS decision to narrow down the scope of the summons. Coinbase said it is currently reviewing Tuesday’s court order, promising to notify affected users of any disclosure “in the event that we ultimately produce the documents” under the court order.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Uncle Sam all set to collect back taxes from Coinbase customers

The lengthy legal battle between Coinbase and the U.S. Internal Revenue Service (IRS) has finally come to a close, and it was the tax agency that emerged victorious—mostly.

On Tuesday, U.S. Magistrate Judge Jacqueline Scott Corley ordered the San Francisco-based company to turn over its customer records for all cryptocurrency-based transactions—buy, sell, send or receive—amounting to more than $20,000 that took place between 2013 and 2015. The summons covers an estimated 14,000 Coinbase’s “highest transacting” customers, representing less than 1% of the company’s customer base.

“The summons as narrowed by the court serves the IRS’s legitimate purpose of investigating Coinbase account holders who may not have paid federal taxes on their virtual currency profits,” according to the court ruling.

The court, however, narrowed down the scope of the IRS summons. Under the ruling, the federal government is only allowed to the Coinbase customers’ taxpayer ID number, name, birth date, address, records of account activity including transaction logs or other records that identify the date, amount as well as type of transactions made, and periodic statements of account of invoices.

While it’s not the complete victory that Coinbase had hoped for, the company said the court ruling was “a substantial and unprecedented victory for the industry” and cryptocurrency holders.

“In narrowing the scope of the summons, we are pleased that the court acknowledged the privacy rights at stake in this matter,” David Farmer, director of communications at Coinbase, stated in a blog post.

“Thanks to Coinbase’s efforts, more than 480,000 customers’ records were preserved from disclosure. This is a 97% reduction in the number of customers impacted by this summons,” he added.

Tuesday’s order comes more than a year after the IRS started pursuing Coinbase to submit records of its customer transactions as part of the federal government’s probe into possible tax fraud activities. The U.S. government doesn’t suspect Coinbase of engaging in any wrongdoing, but the IRS argued in a court filing that “U.S. taxpayers, including Coinbase users, have made use of virtual currencies to avoid the reporting and payment of taxes,” hence the summons.

In response, Coinbase took the fight to block the “unjustified and invasive” summons back to the court. This eventually led to the IRS decision to narrow down the scope of the summons. Coinbase said it is currently reviewing Tuesday’s court order, promising to notify affected users of any disclosure “in the event that we ultimately produce the documents” under the court order.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

BTC hits $11,000—but it’s still expensive to spend

Cryptocurrency BTC has cleared the $11,000 barrier for the first time on Wednesday, even as financial heavyweights continue to rail against investing on the currency.

The cryptocurrency traded on a new all-time high of $11,517.40 at 16:49 UTC on Wednesday, with a market capitalization of $192.44 billion, according to data from CoinMarketCap. The latest figures represent an over 10% jump from its price 24 hours earlier, when BTC crossed the $10,000 threshold.

BTC’s price spree follows the warning made by investor and Vanguard group founder Jack Bogle to “avoid Bitcoin like the plague.” The 88-year-old investor, who started the first index fund in 1978, was quoted by Bloomberg telling an audience at an event in New York that “there is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

Nothing comes for free

The price hike also comes as good news to many investors who are still hodling their coins. There’s just one problem: BTC is still expensive to spend.

As of Nov. 28, the average transaction fee for BTC clocks in at $6.61, according to BitInfoCharts data. In comparison, the average Bitcoin Cash (BCH) transaction fee comes in at $0.175.

One of the main reasons for BTC’s high transaction fee is that its network’s transaction capacity continues to be “artificially” limited. This is causing miners to prioritize transactions and, in turn, forces users to compete and outbid each other.

In the past, cryptocurrency holders used to not pay too much attention to how much sending BTC will cost them—those were the days when one BTC cost tens or, at the highest, hundreds of dollars. Now it continues to grow in value, but the downside is that the cryptocurrency is barely usable for micro-transactions.

Cheap transactions have been one of the biggest selling points of BTC, but that is no longer the case today. BTC and its chain can still be used as an institutional value transfer system, although that system is inefficient compared to BCH, which Is considered the only Bitcoin variant that remains true to the original vision of Satoshi Nakamoto.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

BTC hits $11,000—but it’s still expensive to spend

Cryptocurrency BTC has cleared the $11,000 barrier for the first time on Wednesday, even as financial heavyweights continue to rail against investing on the currency.

The cryptocurrency traded on a new all-time high of $11,517.40 at 16:49 UTC on Wednesday, with a market capitalization of $192.44 billion, according to data from CoinMarketCap. The latest figures represent an over 10% jump from its price 24 hours earlier, when BTC crossed the $10,000 threshold.

BTC’s price spree follows the warning made by investor and Vanguard group founder Jack Bogle to “avoid Bitcoin like the plague.” The 88-year-old investor, who started the first index fund in 1978, was quoted by Bloomberg telling an audience at an event in New York that “there is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

Nothing comes for free

The price hike also comes as good news to many investors who are still hodling their coins. There’s just one problem: BTC is still expensive to spend.

As of Nov. 28, the average transaction fee for BTC clocks in at $6.61, according to BitInfoCharts data. In comparison, the average Bitcoin Cash (BCH) transaction fee comes in at $0.175.

One of the main reasons for BTC’s high transaction fee is that its network’s transaction capacity continues to be “artificially” limited. This is causing miners to prioritize transactions and, in turn, forces users to compete and outbid each other.

In the past, cryptocurrency holders used to not pay too much attention to how much sending BTC will cost them—those were the days when one BTC cost tens or, at the highest, hundreds of dollars. Now it continues to grow in value, but the downside is that the cryptocurrency is barely usable for micro-transactions.

Cheap transactions have been one of the biggest selling points of BTC, but that is no longer the case today. BTC and its chain can still be used as an institutional value transfer system, although that system is inefficient compared to BCH, which Is considered the only Bitcoin variant that remains true to the original vision of Satoshi Nakamoto.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

BTC hits $11,000—but it’s still expensive to spend

Cryptocurrency BTC has cleared the $11,000 barrier for the first time on Wednesday, even as financial heavyweights continue to rail against investing on the currency.

The cryptocurrency traded on a new all-time high of $11,517.40 at 16:49 UTC on Wednesday, with a market capitalization of $192.44 billion, according to data from CoinMarketCap. The latest figures represent an over 10% jump from its price 24 hours earlier, when BTC crossed the $10,000 threshold.

BTC’s price spree follows the warning made by investor and Vanguard group founder Jack Bogle to “avoid Bitcoin like the plague.” The 88-year-old investor, who started the first index fund in 1978, was quoted by Bloomberg telling an audience at an event in New York that “there is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

Nothing comes for free

The price hike also comes as good news to many investors who are still hodling their coins. There’s just one problem: BTC is still expensive to spend.

As of Nov. 28, the average transaction fee for BTC clocks in at $6.61, according to BitInfoCharts data. In comparison, the average Bitcoin Cash (BCH) transaction fee comes in at $0.175.

One of the main reasons for BTC’s high transaction fee is that its network’s transaction capacity continues to be “artificially” limited. This is causing miners to prioritize transactions and, in turn, forces users to compete and outbid each other.

In the past, cryptocurrency holders used to not pay too much attention to how much sending BTC will cost them—those were the days when one BTC cost tens or, at the highest, hundreds of dollars. Now it continues to grow in value, but the downside is that the cryptocurrency is barely usable for micro-transactions.

Cheap transactions have been one of the biggest selling points of BTC, but that is no longer the case today. BTC and its chain can still be used as an institutional value transfer system, although that system is inefficient compared to BCH, which Is considered the only Bitcoin variant that remains true to the original vision of Satoshi Nakamoto.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Japan’s Bitflyer secures regulatory nod to operate in New York

BitFlyer, Japan’s largest cryptocurrency exchange by trading volume, has cleared another hurdle in its bid to set foot on U.S. soil.

The Tokyo-based exchange announced on Tuesday that it has been approved by the New York State Department of Financial Services (NYDFS) to operate in the state as a virtual currency exchange. BitFlyer is the fourth exchange to be granted New York’s elusive “BitLicense,” along with Coinbase, Circle and Ripple.

In an interview with CoinGeek, BitFlyer U.S. COO Bartek Ringwelski said a BitLicense is “incredibly important” for cryptocurrency companies like them that are planning to enter the U.S. market.

“New York is a doorway through which institutional funds will enter the market. We are glad the NYDFS granted us the license,” said Ringwelski.

BitFlyer accounts for more than 80 percent of global BTC-JPY trading volume, according to CryptoCompare data. Founded in 2014,BitFlyer raised an estimated $27 million in a Series C funding round last year. The company said it has facilitated over $40 billion in bitcoin trades, $30 billion of which came in 2017 year-to-date alone.

Following its success in the Japanese market, BitFlyer announced several months ago that it has started preparing to enter United States. The announcement comes at a time when the country’s complicated regulatory framework has resulted in several exchanges to pull out their services in some states.

BitFlyer said it in August that has already been approved to operate in 34 states. That number has since expanded to 42 states after the company secured the “nod of approval from one of the most influential state financial services regulators in the nation,” said CEO Yuzo Kano.

The company plans to bring “deep expertise and proprietary technology to the U.S. market,” with particular interest on the “currently untapped” institutional investors in the United States.

For starters, BitFlyer rolled out a U.S.-based virtual currency exchange platform, which is designed for professional traders who trade US$100,000 or more in cryptocurrency monthly. The BitFlyer platform features “a powerful API for programmatic traders,” allowing investors to place market, limit and complex trade orders.

“Our expansion and upcoming cross-border trading addresses a huge unmet need in the U.S. by institutional traders looking to access large amounts of liquidity across multiple virtual currency markets,” Ringwelski said in a statement. “Through our web interface or API, approved professional traders can be up and running and making trades in a matter of minutes.”

BitFlyer is offering zero percent trading fees in the United States until the end of 2017. The U.S. exchange platform currently supports BTC, but the company said it will expand its offerings to include Bitcoin Cash (BCH), Ethereum, Ethereum Classic, and Litecoin, among others.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Japan’s Bitflyer secures regulatory nod to operate in New York

BitFlyer, Japan’s largest cryptocurrency exchange by trading volume, has cleared another hurdle in its bid to set foot on U.S. soil.

The Tokyo-based exchange announced on Tuesday that it has been approved by the New York State Department of Financial Services (NYDFS) to operate in the state as a virtual currency exchange. BitFlyer is the fourth exchange to be granted New York’s elusive “BitLicense,” along with Coinbase, Circle and Ripple.

In an interview with CoinGeek, BitFlyer U.S. COO Bartek Ringwelski said a BitLicense is “incredibly important” for cryptocurrency companies like them that are planning to enter the U.S. market.

“New York is a doorway through which institutional funds will enter the market. We are glad the NYDFS granted us the license,” said Ringwelski.

BitFlyer accounts for more than 80 percent of global BTC-JPY trading volume, according to CryptoCompare data. Founded in 2014,BitFlyer raised an estimated $27 million in a Series C funding round last year. The company said it has facilitated over $40 billion in bitcoin trades, $30 billion of which came in 2017 year-to-date alone.

Following its success in the Japanese market, BitFlyer announced several months ago that it has started preparing to enter United States. The announcement comes at a time when the country’s complicated regulatory framework has resulted in several exchanges to pull out their services in some states.

BitFlyer said it in August that has already been approved to operate in 34 states. That number has since expanded to 42 states after the company secured the “nod of approval from one of the most influential state financial services regulators in the nation,” said CEO Yuzo Kano.

The company plans to bring “deep expertise and proprietary technology to the U.S. market,” with particular interest on the “currently untapped” institutional investors in the United States.

For starters, BitFlyer rolled out a U.S.-based virtual currency exchange platform, which is designed for professional traders who trade US$100,000 or more in cryptocurrency monthly. The BitFlyer platform features “a powerful API for programmatic traders,” allowing investors to place market, limit and complex trade orders.

“Our expansion and upcoming cross-border trading addresses a huge unmet need in the U.S. by institutional traders looking to access large amounts of liquidity across multiple virtual currency markets,” Ringwelski said in a statement. “Through our web interface or API, approved professional traders can be up and running and making trades in a matter of minutes.”

BitFlyer is offering zero percent trading fees in the United States until the end of 2017. The U.S. exchange platform currently supports BTC, but the company said it will expand its offerings to include Bitcoin Cash (BCH), Ethereum, Ethereum Classic, and Litecoin, among others.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Japan’s Bitflyer secures regulatory nod to operate in New York

BitFlyer, Japan’s largest cryptocurrency exchange by trading volume, has cleared another hurdle in its bid to set foot on U.S. soil.

The Tokyo-based exchange announced on Tuesday that it has been approved by the New York State Department of Financial Services (NYDFS) to operate in the state as a virtual currency exchange. BitFlyer is the fourth exchange to be granted New York’s elusive “BitLicense,” along with Coinbase, Circle and Ripple.

In an interview with CoinGeek, BitFlyer U.S. COO Bartek Ringwelski said a BitLicense is “incredibly important” for cryptocurrency companies like them that are planning to enter the U.S. market.

“New York is a doorway through which institutional funds will enter the market. We are glad the NYDFS granted us the license,” said Ringwelski.

BitFlyer accounts for more than 80 percent of global BTC-JPY trading volume, according to CryptoCompare data. Founded in 2014,BitFlyer raised an estimated $27 million in a Series C funding round last year. The company said it has facilitated over $40 billion in bitcoin trades, $30 billion of which came in 2017 year-to-date alone.

Following its success in the Japanese market, BitFlyer announced several months ago that it has started preparing to enter United States. The announcement comes at a time when the country’s complicated regulatory framework has resulted in several exchanges to pull out their services in some states.

BitFlyer said it in August that has already been approved to operate in 34 states. That number has since expanded to 42 states after the company secured the “nod of approval from one of the most influential state financial services regulators in the nation,” said CEO Yuzo Kano.

The company plans to bring “deep expertise and proprietary technology to the U.S. market,” with particular interest on the “currently untapped” institutional investors in the United States.

For starters, BitFlyer rolled out a U.S.-based virtual currency exchange platform, which is designed for professional traders who trade US$100,000 or more in cryptocurrency monthly. The BitFlyer platform features “a powerful API for programmatic traders,” allowing investors to place market, limit and complex trade orders.

“Our expansion and upcoming cross-border trading addresses a huge unmet need in the U.S. by institutional traders looking to access large amounts of liquidity across multiple virtual currency markets,” Ringwelski said in a statement. “Through our web interface or API, approved professional traders can be up and running and making trades in a matter of minutes.”

BitFlyer is offering zero percent trading fees in the United States until the end of 2017. The U.S. exchange platform currently supports BTC, but the company said it will expand its offerings to include Bitcoin Cash (BCH), Ethereum, Ethereum Classic, and Litecoin, among others.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

If we are not being attacked, we are not doing things right.

I’ve written many times about the sustained attacks Bitcoin (particularly big blockers) have faced in the fight for Bitcoin, and in the fight for a global electronic cash system.

It should come as no surprise, BTC as a settlement layer, or “store of value” coin, does not compete with major payment processors. Nor does it compete with any of the banking world’s pre-existing line of products. In fact, it supports them. It provides many of these institutions, with a method of settling major payment transactions on a very secure blockchain, while at the same time, allowing them to continue their current business models, where they are able to charge for transactions.

BCH is far more disruptive as a technology than BTC could ever dream to be. BCH challenges the products of the majority of financial institutions, but in particular, reserve banks.

When I was at the scaling bitcoin conference last month, BTCC Boss, Bobby Lee, made a profound comment – “Bitcoin’s value comes from the inherent failures, limitations and inconveniences of the fiat money system”.

Why would we place the same limitations on BTC ?

BTC is a safety coin… It won’t ruin many of the existing financial business models because these institutions can leverage its security, while taking advantage of the high fees, to deliver their own added solutions, for lesser fee. This is Blockstream’s business model in a nutshell.

BCH is not a safety coin. It is, highly disruptive. It’s uncomfortable for many, because it challenges the paradigms, and business models of the entire financial system across the world.

If we didn’t expect to be spat at, ridiculed, trolled, attacked – even illegally, then we aren’t doing it right. This is what disruptive technology is all about, shaking up the established industry. And some brave souls, have chosen to put their lives and reputations on the line, because they believe in the shake-up this technology can cause, and they believe in its outcome.

This is by no means blind faith. Bitcoin up until this year, was flourishing with merchants… These merchants have disappeared – at least from the Bitcoin world. At first, these businesses were forced to change their business models to have their customers pay the fees (yep!), and when even that proved too much, they stopped transacting with Bitcoin altogether.

BCH picks up where BTC dropped things. There is one side in all of this that deals with relentless attacks, smear campaigns, denial of service, hacking, and the like – and that’s the BCH side. BTC as a safety-coin is no longer such a threat to payment processors. But the attacks have increased now to the n’th degree.

It wasn’t supposed to go this way. When Bitcoin Cash forked, it was supposed to end years of bitter in-fighting between the big block, and small blocker camps. Those that saw Bitcoin as a “store of value” versus those that saw Bitcoin as a “global frictionless, peer to peer currency”.

But if anything, the toxic elements have only intensified. – We are doing something right.

The “BCash” propaganda is at full swing… nothing new here, but Roger Ver knows all about it. This was a method to de-legitimize Bitcoin Cash. The name war was started by the Core camp, they drew first blood in this. As with Ethereum Classic, so Bitcoin Cash was aptly named, given it is a Bitcoin fork. So, when the intentional attempt to discredit BCH by slandering its name took hold, many prominent people within the BCH community stood up to voice their opinion in return, that they believe Bitcoin Cash is Bitcoin.

Ethereum’s Vitalik Buterin also echoed this sentiment stating “I consider BCH a legitimate contender for the bitcoin name”. Among prominent names we found Gavin Andresen, Roger Ver, Dr Craig Wright, Ryan X Charles and others stating the same.

But the name is a small part of it, but nonetheless noteworthy. Individuals are genuinely being bullied. What Roger Ver experienced in his debate this morning was a subtle attack, by means of projection. Roger was accused of astroturfing. Sure enough, last month when I did catch up with him, he explained that he never, ever engaged in such unethical practices. I followed up and tried to find something to be doubly sure, and I came up with nothing.

The social engineering antics of this group is second to none though. They’ve somehow, managed to make a large group of people actually believe that Roger is astroturfing via his birds.bitcoin.com project.

I’m honestly a little shocked that I even have to explain this one… but here it goes:

Astroturfing: “is the practice of masking the sponsors of a message or organization (e.g., political, advertising, religious or public relations) to make it appear as though it originates from and is supported by a grassroots participant(s).” – link

Bitcoin Birds is a simple Twitter client with Bitcoin integration. It is a service that allows you to get rewarded with bitcoins for retweeting and spreading other people’s messages, or reward others to retweet and spread yours!

No where at all, does Bitcoin Birds, “mask sponsors of a message” to make it “appear as though it originates from and is supported by grass roots participants”. With the Birds tool, we know very well, where the message originates from, after all, these are retweets! The originator is very much intact! There is no deception here whatsoever…

What Bitcoin Birds does, is allow a user to signal boost a message. The source of the message is clear. This is no different, than to paying Google for advertising via their Adwords campaign tool. Does paying Google to run your ads mean that Google is shilling for you? Absolutely not.

If on the other hand, Roger chose to pay a number of shills, without exposing himself as the originator of the content, to make it appear as though his message is a grass-roots movement, then they’d have a point. That would certainly be deception.

But on the other hand, the Core camps have very much so been caught several times red-handed in creating shilling accounts.

One of their prime strategies is to deflect the very same criticism they receive onto their opposition. Why else have r/bitcoin mods been caught red-handed with “hacking” and “vote manipulation” ?

More recently, we find ourselves now dealing with an avalanche of Bitcoin forks. Adam Back, CEO of Blockstream, who prior wouldn’t have dared discuss the possibility of a Bitcoin split, seems to be happily promoting these on his twitter feed. He has retweeted, “Bitcoin Gold” supporting tweets, and astonishingly, this ‘pro’ Bitcoin Gold tweet:

Not only is he comparing this Bitcoin fork to Bitcoin Cash, but also actively stating that is going to be tradeable, and where to find it.

For a reference point, have a look at the following slide, titled “Why Controversial hard-forks CANNOT happen”, to see how much this man has slipped.

The points Adam Back lists on this slide are:

  • If the chain splits, there will be funds loss and complete loss of confidence
  • The discussion of a split has already significantly affected confidence and price.
  • Bitcoin is not a democracy, change must have near universal agreement.
  • We already have political currencies

If Adam was so vehemently against hardforks that dilute the brand name, cause loss of confidence, affect the price etc etc… then why on earth would he be boasting about future forks?

The reasons are so glaringly transparent, you could almost be blinded by them. This is another attack on Bitcoin Cash. Create endless forks of Bitcoin, bewilderingly, calling them by their full names this time, and really dilute the name of Bitcoin Cash among the crowd.

I’m rather intrigued saddened that Adam Back isn’t concerned of how this impacts BTC in the long term…

Then we have the miners… once regarded as the friends of the system. Somehow, Core have managed to make you believe that these people are the evil of the system. In Blockstream’s sought after layer 2 solutions for fees, the war with the miners was always going to come to a head.

The problem now is that if Core ever wish to hard-fork their way out of the choking transactional pipeline, they are literally going to have to grovel. And even then, I don’t like their chances. Core have positioned themselves with the miners as strictly “Store of Value”. Big blocker miners, already have their big block solution in Bitcoin Cash. And they’ve already started making their investment position. The last thing miners will happily accept, is a change in policy on BTC. The line has been drawn in the sand…

BTC is for store of value, and Bitcoin Cash continues the electronic cash solution that Satoshi Nakamoto sought. There shouldn’t be any need for in-fighting… But this is wishful thinking I’m afraid.

BCH has chosen to scale today. Not on dreams of lightning network solutions… Lightning Network is real, and it has legitimate use cases. But how it will work holistically, is still up in the air… can it work in a global decentralized manner? – that’s also up in the air.

Meanwhile we have a solution, right here, right now, that is scalable.

BCH will provide financial sovereignty to those that need it most. First and foremost, the poor, and those in third world countries. These are the people who need Bitcoin more than anyone.

Being an elitist, and placing parameters on what you believe should be the fee-rate, not only makes you the authoritarian governor of the system, but it also implies that you are putting yourself in a position where you are able to censor those in 3rd world countries from the system.

The elitist attitudes with Bitcoin need to stop. This isn’t a coin for the wealthy, it is a coin for all people. BCH does not discriminate. Bitcoin Cash is already more scaled than Segwit. Right now, today, BCH handles more. Spin it anyway you want and dream up any future scenario.

In a competitive market you need solutions yesterday. Not promises for tomorrow. This what separates business life and death.

But on a closing note, every time you are mocked, and ridiculed or attacked. Be proud because it means you’ve done something right. We don’t get to be a disruptive technology on peaceful terms. No. In the famous words of Winston Churchill, “You have enemies? Good. That means you’ve stood up for something, sometime in your life.”

Eli Afram
@justicemate

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.