DRINK OF ENTREPRENEURS EVERYWHERE
Coming to Canada in 2019! www.bitcoinenergy.ca @cryptoculturemagazine
Top 10 Cryptocurrencies end of december 2018
10 2019 PROJECTION
10 YEARS OF BITCOIN! FIRST BLOCK CAPITAL TIMELINE
BILL STORMONT INTERVIEW
*Disclaimer Crypto Culture Magazine is not intended to be used for financial, investment, tax or legal advice. You alone are solely responsible for determining if an investment, asset, strategy, product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. This includes information at www.cryptoculturemagazine.com Our magazine and website will always encourage you to continue educating yourself so that you can be empowered to make your own decisions regarding finances, risk levels and asses the outcomes of making profits or losses. Nothing in this magazine should be considered as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by or any third party. Please consult an attorney or tax professional regarding your specific legal or tax situation.
TAXES & CRYPTO
ABANDONING FIAT CURRENCY BEN PERRIN
34 CRYPTO CONSUMER PROTECTION LAW MATTHEW BURGOYNE
44 CRYPTOâ€™S #1 TOUR GUIDE
Letter From The Editor Welcome to the year 2019! It’s a great time to reflect on the past year with our lives to see what we have enjoyed in life, what we have learned and what we can aim to achieve in the next year. I myself recall as a boy learning much about the value of hard work and making money with my first job. At the age of 10 I was able to be hired on to deliver flyers in my neighborhood. In that year (1990) everything in retail revolved around flyers and catalogues. I loved reading the London Drugs computer department flyer and the Consumers Distributing catalogue. These print advertisements opened my eyes to new things in my realm of perception that I wouldn’t have seen in person. Maybe this is where my affinity for print magazines developed as a pre-teen. My flyer route in North-West suburban Calgary, Alberta, Canada required that I combine and deliver flyers every week. I was paid 1 cent per flyer per house. A few bundled together as directed meant that I made a few cents per house. At the end of the month I typically had a paycheque of about $80 which was an enormous amount of money at the time. The sense of opportunity was immense. I learned about work efficiency with my time and efforts. I learned about physical demands working in snow and rain. Most of all I learned about the care and assistance in all of this as my dad regularly helped me with my flyer route after he had already worked all day and still wanted to help me to get things done. Looking back, one penny per flyer per house seems like I could have made more money doing something else. At the time, knowing that there was going to be a pay off, it didn’t matter. Other kids my age didn’t have a flyer route or a job. And most other kids didn’t have encouragement to do this as I did from my dad. It’s a fond period in my life that holds more value to me now than it did back then. I often wonder if we can look back on this time period in 2018 / 2019 with technological developments in our world the same way I look back on 1990? For those of us working our first job in the blockchain industry, the past year has been a rollercoaster and we would all agree that it has been mostly downhill with the value of crypto. Like many of us, we are passionate about the industry. We enjoy the technology, the people who generously want to share their knowledge and opportunity with others. We feel empowered being in control of our investments and the sense of change is a breath of fresh air that has not been felt before in the world economy. It’s refreshing to see borderless technology being applied to benefit people, communities and countries. What can we do to learn from the past twelve months where we have continually had our eyes opened wide staring at
this grand sense of change even though financial benefits were limited? What we can do is take pride in the fact that the experience we have had this year may have tempered our minds and our hearts to endure what others would consider failures, but what we can consider learning experiences. If we know anyone who ran a blockchain startup in Q1 of 2018 or bought bitcoin above $10,000, then it was a tough year. The re-tracement of bitcoins value has caused budgets to tighten, investors to question their commitment to crypto and we may have a bitter taste in our mouths, but this is ok. There are blue skies ahead. This end to the year is just the tip of the iceberg for what we know is coming. The real professionals in our industry know that the outlook for the blockchain and crypto industry has never looked so good. The growth of adoption around the world shows repeating patterns. What is most interesting is that more and more people are learning about blockchain tech, and using it. Finally we are seeing ideas, speculation and testing turn into real products. In the blockchain industry we may not have had much financial gain this year. What that means is that there is still an opportunity to invest in many things with reasonable prices. Hopefully you have been disciplined enough to either save some cash for investments at the end of 2018 when prices are down or dedicate some of your income to this. Even if you have a limited income such as I did with my flyer route as a kid, making $80 a month, you can still do amazing things with small amounts of money. Look back to our experiences this year, find some positive points to remember and plan for 2019 with your investments for both your time and your money. I believe we will look back again in 12 months from now and see a pivotal time in our history in technological and financial developments. Ross Macdonald CEO - Crypto Culture Magazine
Industry News Employment Growth in Blockchain
Despite a long year seeing the reduction of crypto’s value in overall market cap, statistics around the world show that the amount of jobs being created in the blockchain industry have had a very heathly amount of growth. From consulting, programming, product development, infrastructure, and more, jobs are being created with other industries in business built around them as well for typical management roles. Statistics show salary ranges from $120K and up for product developers and full stack developers as one example. LinkedIn job searches on a worldwide platform showed 12,650 results which has more than doubled in the last 12 months. Many of these jobs can even be maintained remotely with many teams operating in small satellite offices or their own spaces from homes or co-working spaces. It’s a great time to enhance our skills with blockchain!
Ethereum 2.0 is Coming Soon
The value and many applications of Ethereum are priceless to the blockchain industry, especially in its value to smart contracts. In October 2018, Vitalik Buterin (Co-founder of Ethereum) announced Ethereum - Serenity! This next version of his brain child creation will have upgraded features such as proof of stake algorithm, scalability improvements referred to as sharding and other features. Development has been ongoing since 2014 and the timeline mentioned for release was simply.... “soon”. How will this effect current projects built on ERC20 and other tokens? Will these new features be as revolutionary as the invention of Ethereum back in 2012? We will wait for this to be launched when Vitalik is ready. The concept of ETH 2.0 is exciting, because it may open doorways to more efficiencies and uses. Any increased ease of use means adoption becomes easier for the public, which is what we need for our industry.
Blockchain’s Future is Happening Now
Blockchain technology has moved from just ideas to being used in our every day lives. It may not be noticable yet, and that is the point. Blockchain makes companies, logistics, finance, government functions and more operate with greater efficiency, so much that we may not know or notice the changes. Yet time and money can be saved with correct implementation of this technology. What does this mean? In short, we will have more acceptance from the world of our passion in this wonderful technology that we thrive off of. In turn, if we position ourselves well, we can all look forward to being a part of growing opportunities.
What is Blockchain? Blockchain in it’s simplest explanation, is a ledger that is kept in many locations and encrypted in its data. This is DLT or Distributed Ledger Technology. The data is kept in blocks and linked from one block to the next with its cryptography, which makes it secure. The data is incorruptible, immutable and to date, no blockchain has been hacked. Why use Blockchain Technology? The advantage to using this for a business or for record keeping is that the data is secure, it is transparent and can be integrated with many data sources. This can save time and money if implemented properly. Data is stored in sections referred to as “Blocks”. This is used to reference where data is located looking back at the past or referencing future “Blocks” of transactions.
The list of data stored in blocks is essentially just like a ledger you would keep on a piece of paper. Sequential, unchangeable, and transparent for the purpose of reaching consensus between all viewing the data.
The power of blockchain comes from it’s distribution to multiple storage locations. The data is copied or verified many times in many locations. This creates power in the value of the blockchains stability and creates no need for worry about losing the data.
IoT or Internet of Things sensors can be used in many applications from food production, oil & gas tracking for royalties, smart contracts, general record keeping, digital currencies such as bitcoin, digital identities, title records, debt and equity management, escrow, e-commerce, global payments and more. The specific applications are being tested and explored every day. Many successful blockchains have been launched around the world. Statistics and data of successes and failures are being gathered.
If the blockchain is a cryptocurrency, a transaction is recorded on the blockchain like a receipt, but it is copied to the many locations around the world so that consensus is reached. The transaction cannot be reversed and cannot be made more than once for cases of double spending.
Once a transaction is copied to multiple computers or nodes, then the number of confirmations are finalized and the transaction is complete. Bitcoin requires 6 confirmations. If one of the confirmations is forged or attempted to be faked, it will not be copied or accepted as it does not match the other confirmations.
This method is used as a distribution method of cryptocurrency on a blockchain. Requiring some work such as processing of data, creates a reason to release rewards such as bitcoin. Straight data storage on a blockchain may not require any proof of work as there is nothing to be earned.
When proof of work is made, such as running a computer to perform processing of data, a block of data is finalized with its confirmations and a reward is paid out to those helping with the data management. Bitcoin is a type of block reward for processing transactions and cryptographic numbers. The proof of work creates block rewards and a means of slowly releasing the currency.
One important thing to consider is that if Blockchain technology is to be implemented in a business, it should either improve function and profits in a company, or add to the efficiency of operations. Beyond these benefits, many other items about managing a business may be more of a priority than testing a new blockchain such as profit margins, human resources, accounting and more. Blockchain tech should rarely be priorities ahead of these aspects of a business. 9
Blockchain use and adoption grew more in 2018 than any other year in the past decade. This is now a time of opportunity like never before.
2018 was a thrilling year for
technological developments and a disaster for many investments in cryptocurrency. The bear market was a tough pill to swallow, but those of us working in the industry see the opportunity for advancements in business and applications of our efforts. We published an article in the middle of 2018 creating a projection for the end of the year where we averaged out predictions of the top professionals who made estimates to the price of bitcoin for it’s peak in 2018. The predictions combined average came to $48,000 USD. As we can see this average did not pan out. What is the outlook on these industries for 2019? Will bitcoin and cryptocurrencies make gains back into a bull market? Will blockchain technology move from the new technology talked about to being used on a more wide scale? Or will we see both sides of the market improve in adoption and use?
2019 Projection bitcoin blockchain crypto Let’s consider some information from the past year to indicate what we can expect for this year.
Market Charts A very heavily used comment for the end of 2018 in crypto market cap is “We have reached the bottom”, which may or may not be true. A few things can be considered. BTC has made a 90% re-tracement similar to many years prior with bitcoins history. Alt-coins have all had similar declines which is directly due to most being measured against bitcoin. When bitcoin falls, so do the alt-coins. Some alt-coins have other trends independent of bitcoin for various reasons, stable coins generally hold their value, but should constantly be investigated for stability. Details about peaks…….
Adoption & Culture Back in January of 2018, it seemed common for some to still talk about a “bubble” with
cryptocurrency. Tulip mania was mentioned, but these comments mainly came from those who have not done any research about bitcoin. By the end of Q1 in 2018, these comments ended and adoption took a quick increase among the public.
Wall Street & Banks This is the first time in the history of cryptocurrency this year, that wall street has created products to leverage and sell against cryptocurrencies. ETF (electronic traded funds) have been built around blue chip companies using blockchain or who are researching it. Futures began being traded in markets. What will likely come in the near future with companies now establishing themselves with traditional IPO’s in the blockchain industry is that the talk of dividends will come into place as their ROI is achieved. Many companies are currently upside down on their startupup costs which is a normal place
to be at espcially in the first year. As companies become established in 2019, we will have many more investment options become available. As these companies also become a part of traditional stocks as many have already, we will in turn see those who only invest in blockchain technology also take the opportunity to invest in traditional markets. The existence of many who understand cryptocurrencies and yet do not understand the previous 30 years of the fintech industry is surprisingly a large number. Hopefully this adjusts itself and we see a blend of both worlds co-existing. Some say bitcoin will become the world reserve currency or replace FIAT all together. Time will tell if that bold prediction will occur.
legitimate values behind them. We always have to be careful about what we invest in and made educated decisions, but the landscape has changed. We are able to watch projects operate inside boxes defined by security commissions which can create less fear of missing out (FOMO) on these new projects, and less scams or investments that are not legitimate. The question we must continually ask is “What utility value do we see in our investments?”. If we have an answer to this and the actual use can be made of a new project, then “Buy the rumour and sell the news”. If we are invested even more than that in a concept, then hold it for the long term in the prospects of increased value and potential dividends.
Jobs in the Industry
Every large international financial institution, legal firm or organization that consults with big business now has a blockchain division. Some are still finding their expertise, and many have been established in product development helping smaller companies launch their first blockchain for data management. Distributed Ledger Technology has taken a front row in business to cryptocurrencies. Some organizations have focused on blockchain and refuse to include the word cryptocurrency in their websites or documentation.
There is always the potential that our developing world around blockchain technology will take more time than we think to develop to the point we would like it to. What we see more now than ever though is real applications and uses of blockchain in so many industries compared to 2017. Keep that in mind and act accordingly. Don’t put your eggs all in one basket unless you are prepared to lose them all. At the same time, consider for a big payoff, risks have to be taken, dedication must be given, and more than likely we won’t achieve very much without pushing past a 40 hour work week.
2018 was the year of ICOs but in the Q4, many security commissions funnelled many projects from and ICO to a STO. This made large funding operations very difficult for so many projects. This caused many to disappear. What we learned from this and see for potential now is that, we will not see massive amounts of token or coins produced without
From a financial perspective if you are waiting to invest in bitcoin or waiting for it to hit the moon again, this may take some time. Two measureable facts are that bitcoin prices do well after halving rewards are reduced which will happen in mid 2020. The buildup to this event was designed by Satoshi Nakamoto to create a demand for bitcoin. It has consistantly
worked, and will again. Also, we know that a small percentage of the world owns crypto. Ask a room full of people if they own bitcoin. Most times, when I do this, I am the only one who owns crypto. As more people purchase and use crypto, the value will increase due to scarcity. The questions that are important now have us ask ourselves, can we use these technologies now and will the frequency of their use increase in the short / long term? The answer all across the board is, yes. How do you feel about this year ahead of us? Send us a comment or an email on our website. www.cryptoculturemagazine.com. We may publish your comment in our next issue and send you some swag as a gift for your contribution.
BLOCKCHAIN IS NO LONGER AN IDEA. ITS BEING USED IN MORE APPLICATIONS EVERYDAY.
STORIES OF CRYPTO
On May 22 2010, Laszlo Hanyecz who is a programmer, spent 10,000 bitcoin on 2 large pizzas in new york city. At the time the bitcoin was worth exactly what the 2 pizzas would cost, not much. Now those same 10,000 BTC would be worth a cool $650 Million. The BTC was paid to the pizza company owner Jeremy Sturdivant, who later cashed out his bitcoin and paid for a trip when it was worth about $200 It’s a bad story for Laszlo, but a great lesson on patience, foresight and value for the rest of us.
Wired Magazine purchased a “Butterfly” brand bitcoin miner in 2013. It plugged away at earning portions of bitcoin for some time, and earned a respectable 13.34623579 BTC. In an effort to be neutral an unbiased in coverage of bitcoin, WIRED decided to destroy the private keys which allowed access to the cryptocurrency. The story creates a noble picture for the management of WIRED Magazine, but we all know that they should have kept the BTC now worth over $85,000 USD. You can see the funds sitting quietly on the blockchain at 1BYsmmrrfTQ1qm7KcrSLxnX7SaKQREPYFP
The founder of a company called Blue Frontiers named Randy Hencken has been building an idea of running independent floating towns and cities on the ocean for the last decade. He was able to create the word “seasteading” and have it added to oxford dictionaries. In the young stages of the companies inception, a generous investor gifted to Blue Frontiers 50 bitcoin in 2012 worth about $650 USD. The same investor followed the company and worked along side it for years. In 2017, with great class and style, the donation was matched again by the same investor for the same amount of 50 bitcoin. This time, the value was approximately $4.5 Million USD.
Traversing Taxes & Cryptocurrencies By Joshua Allen, CPA, CA
There are a lot of misconceptions surrounding cryptocurrency and tax and one of the biggest questions is: At what point in time are transactions taxable? Another misconception is that the tax rules surrounding cryptocurrency are difficult to decipher. The purpose of this article is to outline some of the basic rules and provide an example to help clarify these rules for Canadian taxes. For the sake of brevity we are going to focus on some of the rules surrounding an investor who has traded cryptocurrency on speculation and the income is treated as capital gains (which are included in taxable income at 50% of total gain). The rules for businesses and high volume traders deserve their own articles. As a reminder this article is for information and does not substitute tax advice specific to your situation provided by a tax professional. Canada Revenue Agency (CRA) treats cryptocurrency as a commodity. There are many areas of the income tax act that may apply and this is where a lot of the confusion arises since there are no specific rules for cryptocurrency. I find that when I explain the concepts to my clients as if they were investing in gold or silver it becomes clearer without the tech jargon attached to it. One thing I should mention up-front is that it can be the case that people could purchase an asset like gold or silver for personal use. Similarly cryptocurrency could be used for personal use and be classified as personal use property. Personal use property basically is treated as if it had a minimum cost basis of $1,000, and losses are not allowed to be applied to other capital gains. So if it is the case that youâ€™ve used cryptocurrency for personal reasons and the proceeds are less than $1,000 there is nothing to worry about, but as always if you are unsure it may be good to have a professional review this before you file your taxes. When dispositions occur: 1. 2. 3. 4.
When you exchange it for goods or services. When you sell it for cash. It is damaged or stolen. At the time of death or emigration.
It is important to recognize that since cryptocurrency is treated by CRA as commodity whenever you exchange one cryptocurrency for another, or for goods or services it is treated as a barter transaction. There are some instances where coins or tokens can be stolen, or a private key is lost or destroyed. In this case the proceeds for disposal are zero. The timing for when you can claim this involuntary disposal is out of the scope of this article and if it applies to you please consult a tax professional. The value of the cryptocurrency will have been deemed to have been disposed of at fair market value and then immediately re-purchased at fair value.
Purchases & Cost Basis 1. 2. 3. 4.
The value of cost equals the proceeds you received if you traded it for another coin or asset as stated above. If cash was paid, the cash value in Canadian dollars will be added to the cost basis. You can add outlays, such as transaction fees to the cost base. The average cost method must be used.
The adjusted base you use for each coin or token sold = total costs paid/total coins purchased Note that if you are a business you have more options as it will be accounted for as inventory. Costs must be pooled by asset type not by where they are held. For example you could have many purchases of Bitcoin on several different exchanges, then you must combine the purchases and sales of bitcoin from each source. A Note About Capital Losses Capital losses can only be used against capital gains and cannot reduce your income from other sources. However you can apply capital losses to gains in different tax years, by either carrying-back or carrying-forward your unused net capital losses. You can carry back losses up to 3 years prior, and carry-forward the losses indefinitely. For example if you had large gains in 2017 and losses in 2018, you could apply to carry-back those losses and reduce your 2017 income and potentially receive a refund on taxes you paid in 2017. If you repurchase the same asset you sold for a loss within 30 days, it is a superficial loss. Superficial losses are not allowed, but the amount of the loss will be added your adjusted cost base. Some of these concepts may be new to you and hard to grasp. You can set your mind at ease with the opportunity to meet with an experienced accountant such as myself or another person who knows how to file taxes with cryptocurrencies. If your accountant does not have experience with crypto, you may want to find another accountant.
Example Alice is a speculative investor, who decided to speculate on the value of cryptocurrency in the year 2019 and 2020 and made the following transactions: 1. June 1, 2019. She purchased 100 ACoins for $2,000 USD ($2,500 CAD) from a friend and held them in her wallet. The total cost base for ACoin would be $2,500 and the average cost per ACoin would be $25 CAD at this point. 2. June 30, 2019. She transferred 50 ACoins from her wallet to an exchange. There is no taxable transaction at this point as it is simply a transfer and nothing moved from her ACoin pool. 3. July 1, 2019. She traded 50 ACoins for 100 BCoins. There were $100 of transaction fees and the market value for BCoins on this date were $20 CAD per BCoin for a total proceeds of $2,000 CAD. She would have disposed of 50 ACoins for $2,000 CAD, the adjusted cost base for this transaction would be 50 x $25 (from transaction 1) = $1,250 for a gain of $2,000- $1,250 = $750 ($375 of which is taxable). Note that the average cost of ACoin is still $25 per ACoin. The total cost for her 100 BCoins is $2,100, or an average of $21 per BCoin. 4. August 1, 2019. She purchased 100 BCoin at an ATM for $5,000 CAD or $50 per BCoin and paid $200 in transaction fees. These coins are stored in her wallet. Her new cost base will be $2,100 + $5,000 + $200 = $7,300. The average cost per BCoin is $7,300 / 200 = $36.50 per BCoin. Note how it doesn’t matter that she has 100 in the exchange and 100 in her wallet. 5. August 15, 2019. She used the rest of her 50 ACoins to purchase a graphics card for her computer. She bought the graphics card used, and the market price for used graphics cards varied wildly, however the market price for ACoins at the time was $20 per ACoin. She would have disposed of her 50 ACoins for $1,000. Her cost for the remaining Coins would be 50 x $25 = $1,250. Her loss on ACoins would be $1000 - $1,250 = -$250. This reduces her gain she previously had of $750 to $500 (now $250 taxable). 6. December 15, 2019. The price of BCoin went to $300 per BCoin, and she decided that she would sell 50 of them and pay $300 in transaction fees. The total proceeds would be 50 x $300 - $300 (fees) = $14,700. Her adjusted cost for this transaction would be 50 x $36.50 = $1,825 for a gain of $12,875. Her capital gains for the year is now $13,215 ($6562.40 taxable) 7. December 25, 2019 she bought 100 BCoin on the exchange for $200 per BCoin and paid $200 in fees. Her total cost for BCoin would now be her old balance of 150 x $36.50 = $5,475 plus her new purchase of BCoin of 100 x $200 + $200 = $20,200 for a total cost of $25,675 for 250 BCoin with a new average cost of $102.70 per BCoin 8. January 10, 2020. She withdrew $4,000 CAD from her exchange account. There were no transaction fees. Her proceeds would be $2,500, and her cost for this transaction would be 50 x $102.70 = $5,135 for a loss of $2,500 - $5,135 = -$2,635. There were no other transactions for 2020, and she decided to carry-back the loss to 2019. This reduced her gain in 2019 from $13,215 to $10,580 ($5,290 taxable).
Some of this information may be new to you, and you may find the application of this information overwhelming. That is ok. This is why we use accountants, so that information can be organized and submitteed to CRA in a way that makes sense. For the most part, the general public does not have any sort of romance with reconciling their spending or submitting it to the government. One thing to keep in mind though is that if you are set up with a qualified and experienced accountant, then the weight is off your shoulders. There have been cases where members of the public have tried to keep their profits from the government using crypto or specifically private coins / tokens. This really isn’t an intelligent thing to do. Stuffing cash under your mattress is one thing, questionable and old fashioned to say the least.. Not reporting income which is documented on immutable and transparent blockchain ledgers is just a whole other animal. If this information is ever needed to be referenced, it will be there until the dawn of time, or until every node from that cryptocurrency is destroyed. It has been commented by those who do not like bitcoin that it is used for criminal activity and is a menace to society. This is so far from the truth. Governments absolutely love criminals or members of the public who use crypto, because they know that an audit can connect the dots to answer all of their questions. If you are involved in using crypto for illegal activities, you’ve just etched your activity in the most permanent and public domain in the universe. Investing in cryptocurrencies is like bringing money or products through customs into your country. You may get away with it at some point if you don’t report what you have, but if you get red flagged or caught, you will be paying for those actions for years to come. It’s just not worth it. With that in mind, take these steps with your crypto:
Keep track of your investments Double check the security of your crypto Don’t invest more than you are willing to lose Hire a qualified and experienced accountant Report all profits and losses of your investments
About the author: Joshua is a Chartered Professional Accountant in Lethbridge Alberta who specializes in Cryptocurrency tax and accounting through his practice Allen Accounting, and is the founder of tallyme.io a cryptocurrency accounting solution.
crypto.allenaccounting.ca tallyme.io 17
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Abondoning The Fiat Standard
By Ben Perrin
Not long ago, one of my favourite mobile Bitcoin wallets, Samourai, abandoned all reference to any fiat currency in its app. At the time I had been clamouring for them to add CAD as a unit of account, having reached out via twitter a few times in the past. Upon the announcement I was a tad annoyed, disappointed, and concerned that I may have to migrate away from the wallet to a new solution. Surely this move was completely counterintuitive and would only serve to hinder adoption, right? Over time Iâ€™ve not only come to terms with their decision, but now firmly believe it was the right one to make. In fact I think the idea of removing fiat balances in wallets is such a wonderful idea that I wish it would be adopted across the board. Let me explain my reasoning, and why I think the team at Samourai are doing something so fundamentally imperative to building the general publicâ€™s perception of Bitcoin.
Establishing Value Independence
Ever since the market first deemed Bitcoin to have value, that value has been referred to in dollars, yen, yuan, etc. Of course this was a natural thing for people to do - relating a new asset to the value of something familiar to them. I also believe that referring to a fiat value of Bitcoin is obviously needed in a variety of cases (more on that later). However, at this point in time I believe it is imperative to the growth of this asset that we start to refer to it independent of conversion rates to local currencies. Here are a couple examples of what I mean:
Imagine you are a US citizen and you’re planning a trip to Europe. You want 100 EUR so you check the rate at your bank. We’ll use Google’s rate for this example. Ok great. It will cost you $113.84 to buy 100 Euros. Now if someone asked you how many Euros you have, what would you reply? About $113 dollars worth or 100 Euros? The Euro is clearly its own asset with its own independent value, so it seems a tad ridiculous to refer to the amount of dollars necessary to acquire the Euros in your pocket. But Ben, Bitcoin is a volatile asset many use for investment purposes. Regular forex conversions aren’t exactly a fair comparison. Fair point, random internet person! Let’s take a look at another example that falls into a different asset class: Gold. Let’s say you’re an individual that likes the idea of sound money, and because of this you’ve decided to invest in precious metals. You check the current prices and decide to pick up 10oz of gold to store in your safe. Once again, when someone asks you how much gold you’re holding, are you more likely to say âAbout $12,000 worth or 10oz? While an investor will likely have a knowledge of the fiat value of their gold holdings, it makes more sense to say 10oz for a couple of reasons: A) The person you’re speaking to may not know the spot price of gold, so quoting dollars doesn’t inform them as to the amount of gold you have. At the very least, you should offer them both metrics here. B) If your reason for holding gold is for sound money and wealth preservation, accumulation is likely the name of the game for you. OZ becomes the preferred unit of account, because THATS the number you’re trying to increase.
What the Hell Is The Price?
In the above examples I was using the Google price, but is that accurate? Will it be the same wherever I go? How are these prices calculated? When you go to a store to buy a product, it’s pretty clear cut how a price works. You see a chair for $10 dollars, and that is the price. That same chair MAY be more or less expensive at other stores. There is no official global chair price - the price of the chair is whatever you have agreed to pay, and that store may opt to change that price based on supply and demand. Markets for foreign currencies and gold can be looked at the same way. If I look up Euros on Google I get a USD rate, but my bank rate will vary from that. If I go to a currency converter in the mall or at the airport, the rate will also likely be higher. With gold, rates may vary depending on if you’re investing through a fund and holding a certificate, demanding physical delivery, or buying direct at a local precious metals seller. The same is especially true of Bitcoin - rates can widely vary based on the service used to obtain your coins. The main problem to be addressed here is that Bitcoin has attracted a lot of people who may have never invested in anything else before and are therefore unfamiliar with all of these intricacies. Are you getting your BTC from an individual on LocalBitcoins, an OTC dealer, an online exchange? Each one of them will have a price that they themselves set, and the market (you) will decide if you’re willing to pay it. Furthermore, some of these options may tack on additional fees for actions like funding an online account with dollars, or sending your Bitcoin to a personal wallet. Then, once you have your BTC in a personal wallet, the app may be citing a dollar conversion price quoted from an entirely different source than where you just bought - which is the main source of confusion for newcomers. This can become particularly pronounced in geographies where Bitcoin is more scarce, and thus carries a premium. Prices in Canada can often be quite a bit higher than the US due to liquidity problems. If you’re using a mobile wallet that references US prices and simply converts that value to CAD, the fiat value represented in your app can often be much lower than what you would be able to get on most local exchanges.
In removing the fiat conversion rate for wallets, it will put the focus and VALUE on bitcoin itself. It will shift the mentality of buyers from “I want $500 worth of Bitcoin” to “I want Bitcoin”, how much will $500 get me? Both statements result in the same transaction, but statement two shifts the importance from what you’re spending to what you’re getting.
The Drive Towards Sats
All this talk about valuing Bitcoin for what it is brings up another important point that has been circulating through the cryptosphere lately - using Satoshis as the dominant unit for BTC. Those unfamiliar with this: Bitcoin can be divided by 8 decimal places, the smallest of which is called a Satoshi, or Sat. One bitcoin will contain 100 million satoshis. Let’s face it, even if you’re a hardcore Bitcoin Maximalist, it can be difficult to look at a wallet with 0.00034500 BTC and see it as more than just a bit of pocket change. Decimals are funny like that. Lately however, many have been advocating that we use that final decimal place, satoshis, as our regular method of tracking holdings. With the example here, instead of having a difficult to decipher fraction of a bitcoin, you suddenly have 34,500 SATS. I don’t know about you, but this makes me appreciate the value sitting in my wallet much more. It also encourages a couple other things: 1. Responsible spending - That coffee is only 0.00079BTC! vs Do I really want to drop 79,000 SATS on a coffee?
2. Efficient use of the Bitcoin Network - Not bad, my transaction fee was only 0.00002BTC vs Hmmm 2000 sats for a transaction fee. I wonder if I can reduce that by using segwit or lightning?
The Monetization Roadmap
At this point some of you may be thinking that I’m advocating many things that sound counterintuitive to a new global currency. Won’t discouraging spending and encouraging hodling inhibit the money use case? There are many reasons why I don’t think so, and it can be difficult to encapsulate all of them. In general I believe that Bitcoin will be a global currency, but that we are not there yet - and we have many milestones to hit before we should treat it as such. I recently listened to some thoughts from a gentleman by the name of Murad Mahmudov. He was able to concisely sum up a roadmap of the journey from nerdy digital collectible to global hard money. There are basically transitional stages from collectible, to store of value, medium of exchange, unit of account, and finally full global currency. Each stage has a number of notable accomplishments along the way. This chart does a good job representing it. (See right page) A great compliment to this chart is a podcast in which Murad was interviewed by Anthony Pompliano. I highly recommend everyone check it out. The podcast itself is called “Off The Chain” and the episode title is ”The Ultimate Bitcoin Argument”. Furthermore, you can follow Murad on twitter @MustStopMurad
Where IS Fiat Price Useful?
Now that we’ve had a bit of a journey together, I want to outline where I find fiat price conversions to be useful and necessary (for now). TRADING: As a cryptocurrency day-trader you may want to use USD (or any other local currency) as
your base trading pair, particularly if this is your full time gig and your profits are used to pay your monthly bills/living expenses. It is this instance alone that I believe a native fiat conversion rate should be presented in the app/web interface itself. However, if your profits are strictly long term play money and you believe in Bitcoin’s value proposition, then you would likely be using SATS as your base trading pair, and your goal is to accumulate more BTC. I get the feeling that these individuals will be the least opposed to moving away from fiat in personal wallets. SPENDING: Some people REALLY want to spend their Bitcoin, and that is their prerogative. That said, in the cases of spending your BTC I still believe the best path would be for the merchant to display the price of the item in fiat/BTC but to also make abundantly clear where they get their rate from. This means that a fiat balance in the user’s wallet is still entirely unnecessary because the BTC rate is agreed upon at the time of sale as presented by the merchant. Down the line if Bitcoin achieves price stability and becomes a unit of account, these conversions will become unnecessary. P2P EXCHANGE: Peer to peer transactions when converting to local currency require some sort of a reference rate. This is where the problem with wallets representing fiat value really becomes evident. If you want to buy BTC from someone, you may both be running different mobile wallets, which are pulling prices from different places. Whose wallet is right? No matter what, someone will end up feeling cheated unless you’re both on the same app. By removing fiat values, you can both agree on an external price source (likely finding an average or median price) and both come away with exactly what you’ve agreed upon. An exact amount of BTC for an exact amount of Fiat. Once again, if Bitcoin succeeds eventually in becoming a global currency - these types of exchanges cease to be necessary, because one could simply spend their Bitcoin locally. I genuinely believe that the growth and adoption of Bitcoin as a global sound money is an economic reality that even the biggest critics will eventually be unable to escape. Anything I write here will have little or no bearing on it whatsoever. That said, in order to help others better understand, it may be best to tear off this band-aid sooner rather than later. There’s a lot of learning for the general population to do. If we truly want to accelerate a world built on the Bitcoin standard, I believe we must first abandon the fiat standard.
Helping You Understand
Canadaâ€™s largest and most trusted Bitcoin YouTuber Over two million views! Offering personalized 1-on-1 education sessions both online and in person Experienced public speaker/emcee at industry events Available for media appearances upon request Ben is a Certified Bitcoin Professional Working in the industry since 2014
10 years of BITCOIN!
Bitcoin was created in 2008 and was released to the world on January 3rd 2009. It has been 10 years and our precious bitcoin has survived, all by iteself with no marketing company, no corporation, no promotional hats or commecials on tv, and yet here it is, the same thing it was when it started. There is one difference now though, there is a lot more of it in our world, and a lot more people love it. In fact, most people who know anything about Bitcoin, tend to really like the concept and use of it. Hereâ€™s the history broken down into a visual timeline.
Point of Sale
Accepting Crypto Around the World NFC-Equipped POS terminals will reach 112 million by 2022, a forcast predicts
Red bull released their first vending machine accepting bitcoin at a hackers conference in prague this year.
PundiX has created their own cryptocurrency and these POS machines. They are popular in Indonesia being used with 600 merchants, over 100,000 users and 20,000 daily active users.
Cool wallet features storage for the top cryptocurrencies and many ERC20 coins. NFC enabled for spending on the go.
General Bytes has created their “CortexPay” machine which allows for easy scanning of QR codes with their hardware. They are also one of the top producers of Bitcoin ATM’s around the globe.
Bitstraat from the Netherlands offers this solid POS machine accepting bitcoin and other types of crypto.
Walledo is based in Slovakia and is growing well integrating with coinatmradar. They also have many BATM’s to pair with this service.
An x-ray shows an implant of a medical grade NFC / RFID chip. NFC chips are common in regular debit cards and becoming more popular with companies supporting cryptocurrencies.
CoinGate offers simple apps and online integration to accept crypto. No hardware to purchase. You can download their app and use their service today with confidence and ease.
A close up of a medical grade NFC glass implant. This may become a common device for the future. No need to carry a wallet with this device.
Revel has many types of POS machines. From debit terminals to ipads with software to support crypto acceptance.
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FIRST BLOCK CAPITAL
Canada’s first registered cryptocurrency investment firm 2018 has officially been the year of the world turning it’s head and giving attention to bitcoin and blockchain. If you can’t agree on that, go get your electric typewriter and mail a letter to the past to complain. The biggest hurdle for companies using blockchain technology is to understand it. The biggest hurdle for the public to invest in blockchain is also, to understand it. First Block Capital is a canadian company based out of Vancouver, BC. They have deep roots with pioneers in the blockchain industry including founders Sean Clark (Hut8 & First Coin Capital) & Mark Van Der Chijs (Cross Pacific Capital). Along with these founders of First Block Capital, we had a chance to speak with Bill Stormont their COO. In recent news, First Block Capital released in August 2018 a Canadian ETF (Exchange Traded Fund) which is built on blue chip companies starting to implement blockchain technology. Simply put, this gives the public something to invest in our industry without being overwhelmed by new concepts,
Canadians should be proud to have a company in our midst that is breaking down borders with crypto investments.
tech and more importantly, responsibility. The one new aspect of investing in cryptocurrency or blockchain technology is that users really need to educate themselves to understand everything from how it all works, to personal security, to laws and regulations. With this new ETF, this is one example of where the public can invest their money and not have to dedicate hours of their week to understanding what they are getting into. First Block Capital has built this ETF on household names such as Wal-mart, IBM, Maersk, Amazon, Sony and more. The majority of the fund is based on these large corporations and a small portion of the fund is based on smaller, higher risk companies. Currently, there tends to be two types of investors in our economy. Traditional investors and cryptocurrency investors. Many times, traditional investors will not work with high risk crypto projects. They want lower risk stocks, bonds and companies to work with. Then on the other side of the coin,
there are many who invest in cryptocurrencies and they have never bought a stock in their life in a traditional market. For a balanced portfolio, it is optimal to lower risk whenever possible. Yet taking advantage of new opportunities or industries is a must for at least a small portion of a portfolio. First Block Capital has opened the door for this type of investing. A blend of traditional Investing, fintech and emerging blockchain investments is now available. If you have been interested in bitcoin and blockchain, but you don’t know enough about it, then you may find comfort in working with a company such as First Block Capital. The fact that they are showing investors products where the risk is lowered, the companies are diverse and yet taking advantage of the growing blockchain industry is a winning combination.
FBC’S INVESTMENT TEAM (Left to Right) Michael Sorbo, Sean Clark, Marc Van Der Chijs, Bill Stormont & Jeff Nguyen.
If you research the background of the team members from FBC, it’s exciting to see where they have come from and what they are de-
veloping. On top of that, being a registered crypto investment firm is the first of its kind in Canada. Some of the emerging laws about crypto, blockchain and investments are still being written. Many young junior companies across Canada have run into speed bumps about their licensing and regulation from the various provincial securities commissions along with the Canadian Securities Commission. The developing theme is that these commissions have to outline the boxes that investment firms can operate in. It takes a lot of hard work and resources to accomplish the licensing that is needed. This is all designed to protect consumers and investors. Without these standards and laws, chaos could cover our economies, but thanks to companies such as FBC, they are breaking through the ice into new oceans of opportunity. To facilitiate some of these investments, FIrst Block Capital joined NEO Exchange with their ETF which is specificaly designed for trading securities. NEO launched in March 2015 as is the perfect place to share these new investment opportunities with the public. We had the opportunity to interview Bill Stormont who is their COO and has a seasoned background in all kinds of investments.
FBC Bitcoin Trust DLT Adopters ETF Crypto Index Fund (Coming Soon) Three milestones in Canada which are reason to turn our heads and watch First Block Capital
Bill Stormont CEO & COO - First Block Capital Tell us about the new investment products you have recently released to the public. We have just launched an equity based blockchain focused fund which is a very different product in the sense that it appeals to investors with no crypto exposure. It works well for a person who might not have a great deal of experience in the crypto market as it can be quite daunting with technology such as wallets and private keys. How should the public view these new types of investments? There’s great value to companies in this portfolio. Household names are right there with companies like Sony, Wal-Mart, products like cameras with names that people would recognise. It’s a pretty diversified index, primarily a large cap portfolio. It’s not based on companies that just started talking about DLT or blockchain in this hyped area so their stocks went up 50 percent in a day. We’re looking at how companies adopt the technology and how using this tech in their business contributes to a competitive advantage. Compared to directly purchasing cryptocurrencies, how does the risk measure up for consumers? Our investments are the sort of thing where you pick a very measured approach to adopt and implement companies. There’s a real need for an actively managed product. Our products are competitively priced and they are medium risk which compared to direct crypto investing is mostly high risk. Are you finding that investors contact you and want to learn more before they invest or do they understand the industry? Our experiences are that there is an education process required. For instance, not speaking about crypto directly but on the distributed ledger technology we have participated with and spoken to many investors about these technologies. We mention how it benefits the companies potentially and how it’s been incorporated or assessed. There is a willingness to learn but the knowledge right now in the mainstream investor land is low. Has FBC noticed a separation of new profits with companies using DLT or blockchain yet? Calculating an actual separation in the market due to efficiencies and for example food companies having less callbacks and recalls of their products will come in time. Then we will actually see a financial benefit to those companies and to their investors. I think we’re going to start to see that in the next couple of years. Remember the Tylenol contamination situation that caused the product removal? This kind of thing can be bad for companies from a lack of production tracking and ultimately earnings perspective. So you you could say it that’s an enormous benefit that you know quality control and knowing where things are in your supply chain right now via blockchain technology. Maybe that’s not reflected directly in earnings but avoiding financial losses for these companies can be measured with less occurances. Will FBC focus on education for any part of the public or is there a direction there for information? Right now having just launched the ETF our focus is not news technology yet. My focus is going to be on talking to people about advisors and others currently in the market. Where can investors take part in these products that you have made available? We’ve partnered with NEO exchange where our Bitcoin Trust is listed and we’re working with them to differentiate ourselves from other securities. the NEO platform allows for enhanced liquidity for the fund with those dealers who are connected to New York or just use that platform so we’re looking at new ways to provide more efficient web access in our products.
CRYPTO CONSUMER PROTECTION LAW by Matthew Burgoyne Mcleod Law Office
Disclaimer: This article does not constitute legal advice Matthew Burgoyne is a partner and head of the fintech practice group at McLeod Law in Calgary, Alberta. Often when we hear news about law and cryptocurrency, it invariably involves the application of securities law to the issuance of cryptocurrency tokens and coins. One area of Canadian law which doesnâ€™t get the publicity that securities law generates, but which certainly touches both consumers of cryptocurrency and the businesses who deal in it, is consumer protection law. Generally speaking, consumer protection laws exist to protect consumers from unfair business practices and provide various legal remedies and resources to consumers who have been victims of abusive or non-compliant business practices. Consumers cannot waive their rights under consumer protection law and if a contract is vague, its terms are interpreted in favour of the consumer. Businesses who deal in cryptocurrency must be mindful of these laws as consumer protection legislation does contain procedures for legal enforcement of consumer remedies, including rights of civil action in court and, in some instances, the right to demand a charge-back from credit card issuers.
In Canada, every province and territory has some form of consumer protection legislation. Why is it so important for businesses dealing in cryptocurrency to be mindful of this area of law? One important reason is that most provincial consumer protection legislation contains specific laws targeting goods and services sold via the internet. This is relevant to businesses such as cryptocurrency exchanges, online wallet services and proprietors selling things like crypto mining equipment who almost exclusively conduct business via the internet and are therefore subject to this legislation. It is good practice for those in the cryptocurrency space to be aware of the Consumer Protection Act of Alberta (the “Act”), and the Internet Sales Contract Regulation, when setting up any business, as there are some fairly harsh penalties for non-compliance. In Alberta, for example, sellers of goods or services who are convicted of an offence under the Consumer Protection Act or the Internet Sales Contract Regulation are subject to a fine of the greater of $300,000 or three times the cost amount of the goods or services provided or to imprisonment for not more than two years (or both). It may seem self-evident, however in Alberta a provider of services or goods cannot exert undue pressure or influence on a consumer to enter into an agreement for sale, and one cannot charge a price for goods or services that grossly exceeds the price at which similar goods or services are readily available without informing the consumer of the difference in price and the reason for the difference. It’s also illegal for a supplier of goods or services to take advantage of a consumer as a result of the consumer’s inability to understand the character, nature, language or effect of the transaction. Arguably this is particularly important in the instance of someone dealing in a cryptocurrency related service or product, as the details can become technical in certain circumstances. Additionally, it is an unfair practice for a supplier to: a)Enter into a consumer transaction if the supplier knows or ought to know that the consumer is unable to receive any reasonable benefit from the goods or services; b)Enter into a consumer transaction if the supplier knows or ought to know that there is no reasonable probability that the consumer is able to pay the full price for the goods or services; c)Include in a consumer transaction terms or conditions that are harsh, oppressive or excessively one sided; or d)Make a representation that a consumer transaction involves or does not involve rights, remedies or obligations that is different from the fact.
The Internet Sales Contract Regulation
In Alberta, an “internet sales contract” means a consumer transaction where (a) the consideration for the goods or services exceeds $50.00 and the contract is formed by “text-based internet communications” (i.e. any contract formed via the internet). “Consideration” in this context is sufficiently broad to include bitcoin and other cryptocurrencies. Therefore, where there is a payment obligation in bitcoin, some other cryptocurrency or fiat in an amount greater than CAD $50.00, the consumer could rely on the Alberta Consumer Protection Act and the Internet Sales Contract Regulation for protection. Before a consumer enters into an internet sales contract, the supplier of the goods or services must disclose the following to the consumer: a)The name and address of the supplier and, if different, the name and address under which the supplier carries on business;
b)The supplier’s telephone number and, if available, the supplier’s e‑mail address; c)A fair and accurate description of the goods or services being sold to the consumer, including any relevant technical or system specifications; d)An itemized list of the price of the goods or services being sold to the consumer and any associated costs payable by the consumer, including taxes and shipping charges; e)A description of any additional charges that may apply to the contract, such as customs duties and brokerage fees, whose amounts cannot reasonably be determined by the supplier; f)The total consideration payable by the consumer to the supplier under the contract or, where the goods or services are being purchased over time, the amount of the periodic payments under the contract; g)The currency in which amounts owing under the contract are payable; h)The terms, conditions and method of payment; i)The date when the goods are to be delivered or the services are to begin, or both; j)The supplier’s delivery arrangements, including the identity of the shipper, the mode of transportation and the place of delivery; k)The supplier’s cancellation, return, exchange and refund policies, if any; l)Any other restrictions, limitations or conditions of purchase that may apply; A supplier of services must provide the consumer with an express opportunity to accept or decline the agreement and to correct errors immediately before the consumer enters into it. The disclosure listed above required of the supplier must be prominently displayed in a clear and comprehensible manner and made available in a manner that ensures the consumer has accessed the information and that the consumer is able to retain and print the information. The supplier must provide a copy of the internet agreement in writing or electronic format to the consumer within 15 days after the contract is entered into. The copy of the internet agreement must include all of the information contained above and must include the consumer’s name and the date the contract was entered into. A consumer may cancel an internet agreement within 7 days of receiving a copy of the contract if the supplier does not disclose the above information or provide the consumer with an express opportunity to accept or decline the agreement or to correct errors immediately before entering into it. A consumer may also cancel an internet agreement within 30 days from the date the contract is entered into, if the supplier fails to provide the consumer with a copy of the contract. If an internet agreement is cancelled by a consumer, the business/supplier must provide a full refund to the consumer of all amounts paid by the consumer under the contract, within the timeframes set out in the Internet Sales Contract Regulation. Keep these items in mind and if unsure of regulations, check with a local legal representative to ensure you are in good shape as a customer or a business. Pro tip: Don’t forget about the consumers as they are afforded a wide variety of legal protections!
WHERE IS CRYPTO
BEING SPENT? Those new to using cryptocurrency, or those who haven’t purchased any yet, will ask the big question, “Where can I spend it?”. The world has officially adopted bitcoin and other crypto as governments recognise these products as commodities, currencies and more. Coinmap.org shows the hot spots around the world where we can all indeed spend our crypto. It’s extremely convenient and fast compared to other payment methods. It’s cheaper than other sources of payments such as credit cards or e-transfers and the transactions are transparent so we can see when they have completed or confirmed on nodes around the world. As of Nov 2018, Coinmap.org shows exactly 13,919 stores in the world that accept crypto. Visit the site to zoom in to your area and learn more.
Korea / Japan
BLOCKCHAIN & CRYPTO BUSINESS CONVENTION CALGARY 2018 Visit www.cryptoconventions.ca to learn about our quarterly event.
This was Calgaryâ€™s first quarterly event which was supported extremely well from our local community and with visiting guests from Montreal, Seattle, Vancouver, and Toronto. (Photos listed left to right, top to bottom) Jan Cerato opening the event with his history on the decentralized web and cryptocurrencies. Jon Hartney from ADMCO featuring highly technical mining operations. Angie C. performing her beautiful music at the end of day 1. Ben Perrin our talented and informed emcee. Eric Weaver from Transparent Path featuring blockchain tech in food and drug logistics. Pam Draper from Bitco speaking about safety with crypto and exchanges. Alfa Romeo displayed their new car lineup for Canada! Elias Ahonen presented and displayed his fabulous physical bitcoin collection. Mike Brown from ATB in a casual chat with Ben Perrin & Kenn Bosak. Greater Property Group sharing their new program accepting BTC for properties!
News Sources Blockchain and Crypto
One of the most established sites for bitcoin news. This site is owned by Roger Ver, a dedicated Bitconi Cash loyalist. The site has great resources and videos for studying and learning more about crypto. BCH developer tools and a source to buy BTC make this a trusted site for newbies and seasoned crypto pros.
The blockchain 101 series on coindesk.com is excellent. The news resources here are quite extensive as the staff of this site have a far reaching world presence to pickup news quickly and create compelling articles. Editorials are more prevelant here which can be helpful to stimulate ideas and inspire you.
Another reputable site with very detailed lists on ICOâ€™s, Top 100 Blockchain influencers & top 100 Cryptocurrencies. The team is smaller on this site, but it gives them a close and consistant read between articles. The video section has original content with unique perspectives all in one place.
Get your news. Get it quick. Make it come to you. Stay on top of your game. Be the best version you can be as a savvy investor. Beyond that you can even contribute to your local community with information. Where can you go for the information that you need on a daily and hourly basis? Follow these main web sources and news sites, they have large amounts of staff researching topics, companies, trends and cryptocurrencies. Take advantage of this and tie into these funnels of information! Many of the top minds in our industry love twitter, instagram and telegram. These websites are backed by research and reputation rather than spitting out a 160 character idea on a whim.
What is your favorite reputable news source?
This is a very layered website with copious amounts of articles. There are many exclusive features and videos that tie into their Youtube page. Donâ€™t miss the guides for Bitcoin, Ethereum, Blockchain, ICOâ€?s, Crypto & Altcoins. Reviews of exchanges are available and being added to.
A very unique feel to this site comes from their original art. The articles are always fresh and tie into editorials. Market tools allow for some comparisons of rates, indexes and there is an ICO calender. Multiple guides also round out this site for one of the top resources of news in our opinion.
CCN makes it very easy to scroll and find new articles to read. The site flows well creating efficient use of time if you want to have a quick read during the day. The CCN network allows exclusive access to receiving and contributing content or ideas. Quite different from other sites that mostly put out info from their staff.
CRYPTO’S NUMBER ONE WORLD TOUR
GUIDE KENN BOSAK In the last decade, the blockchain industry has taken the world by storm. Technology, opportunity, profits and losses have shaped the financial world in a way like never before. There is an impressive tour of blockchain conventions that has happened during 2018, which will likely not be duplicated or surpassed any time soon. A man had the idea that he would live off of crypto, see everything that can be seen, jump off of a cliff and build an aeroplane on the way down. That man is Kenn Bosak. If you haven’t heard about this friend of ours, you really should have. If you are a studied or travelled fan of blockchain, cryptocurrencies or the anarchist mentality, you may have heard of Kenn Bosak. Kenn is undoubtedly the most travelled man in the industry in the year 2018. Kenn attended 48 conventions in 2018 which is a staggering effort and accomplishment. On top of his year of jet setting, hand shaking and think tanks in one of the best years for growing blockchain adoption, Kenn has documented his travels meticulously. In his travels he has become an advisor on multiple tokens and spoken on many panels at conventions. The wide reach of his perspective paired with his knowledge of the function of crypto is well rounded. An interesting thing to note is that he is based out of New Jersey, USA. New york has had it’s speed bumps with blockchain and crypto, but it’s still an epicentre for activity in the industry. I asked Kenn about his favorite events out of the 48 he attended in 2018. He commented that the top 3 were as follows: 1. Consensus 2. DOGEcon 3. Blockchain Futurest. Send Kenn an email, tweet or comment on Youtube and ask him more about these events. You may want to attend and meet him in 2019 at the same events. On top of his travels, I also asked him what his favorite crypto gadgets are. The top 3 were as follows:1.Rivitz 2.SteemMonsters 3.CoolWallet S. Follow Kenn on YouTube for more insightful reviews, interviews and more news to come in 2019!
STICKING IT TO THE MAN TATTOOS
From conventions to crypto cruises to meetups, Kenn has seen more celebrities in the year than most. Roger Ver, John McAffee, Andreas Antonopoulus, Charlie Lee One of the first things you may notice when you meet and more. Kenn is that he has tatoos. The great part about Kenn Not just any run of the mill is that he is eager to meet tatoos. Not any mistaken anyone but will not lend barbed wire biceps. The his attention or respect to man has skin in the game, someone unless they de- literally. You can take a phoserve it. He knows what is to of Kenn’s forearm to pay up with people who genu- him or donate to his efforts inely support the industry with his QR code. I’m not and those who are just in it sure who else on the planet has this, but it shows comto make some money. mitment to his craft. If you look back at Kenn’s twitter, you can see a long Others in the industry aren’t road of events and interac- so commited as Kenn. This tions. The most interesting sort of mentality shows that interviews are really with in his mind, crypto is here to the other YouTubers and stay. It’s a solid answer to industry professionals who those who question the inare also aspiring to grind dustry or who think that this the network like Kenn does. is some sort of get rich quick These natural conversa- scheme. Crypto is many tions bring up interesting things and Kenn supports perspectives in the conver- the industry in many ways. sations which can help us His tatoos are just one more all to open our minds and testament to this. Bitcoin, look at the big picture in the Litecoin, Dash. These are out in the open. industry. Watch for more interviews, sponsorships bringing original content to his Youtube videos. You will be entertained and informed.
When I first met Kenn we were at an event in Calgary called Bitcoin Rodeo. The second time I met him, we went back to his hotel and he had some of the most interesting things in his pockets from the industry. Crypto gadgets, cold wallets that I had never heard of and corrupted cash stamped with “Bitcoin is Better”. After he spoke at our convention, he nabbed a bitcoin stamp and continually tags his cash with the brand of bitcoin as you can see in the photo above. This is Kenn’s way of showing the world what will come in the future and how he will be a part of it. He is an excellent ambassador to bitcoin and other crypto.
A recent post of his online featured a venue that was no longer accepting cash, but would take credit cards and crypto. Simply and elegantly he features this information to the world to emphasise how he sees things as they are changYou may have to ask him if ing from month to month. If there are any other crypto you follow Ken more online, tatoos out of sight he can you will pickup these gems tell you about. along the way. 45
Kenn Bosak Interview 1. When did you decide to hit the road for 2018 and attend conventions so frequently? When Bitcoin started to run from $1k USD to $20K USD I was in a position where it was financially possible and thats all that ever held me back from roaming the planet. So, I quit my day job. Rather than walk about with no path I choose to follow what lead me to this position, Bitcoin. One of the biggest reasons I never stopped the crypto conference tour, was all the CT friends I got to meet IRL and hanging out with the whales at the after parties is always worth the travel hassle. 2. What makes 2018 one of the milestones for blockchain technology & cryptocurrencies? All the progress Bitcoin has made in 2018, from mainstream adoption with retail investors to now the institutional money. Not to mention Segwit, Lightning and Liquid Assets, Bitcoin has grown so much in 2018 the market had to relearn and reunderstand Blockchain, causing this correction, which I believe will lead to another bull run and ATH. With Bitcoin ETF on the tips of every investors tongue, its only a matter of time till the rocket takes off, again. 3. How have you seen the blockchain industry make its mark on our world and economies? Not so much in first world environments like the U.S and Europe but in South Africa, Venezuela and even Brazil , they are embracing Crypto to escape the financial downfalls of their government and legacy banking systems. States in the U.S have recently started accepting Crypto to pay taxes with. The irony is thick… But, as the world bank fails from the bottom up, Bitcoin has been and will continue to be a currency safety net. 4. How do you feel about the outlook and future for bitcoin? I’ve never been more bullish on Bitcoin. In 2018 the dominos were put into action, in 2019 they will fall into place, building institutional onramps into Bitcoin. I see 2019 as the year of regulations and institutional onramps like the inevitable ETF for Bitcoin, as well as the STO market growing bigger, quicker and better than the ICO market has in the past. Plus 2020, is the next halving. Accumulation is key. Bitcoin doesn’t need more money, it just needs more time. 5. Those who know you, appreciate your connection with DASH. How does DASH fit in with your journey? I was a bIg Bitcoin maximalist, that is until I ran into a BIG Bitcoin problem, privacy. Bitcoin isn’t private like I was lead to believe coming into the space. I posted a BTC receiving address for donations on my YT channel. Everything was fine, until someone used the public address to check the Blockexplore and posted my entire Bitcoin holdings, making me a target. And, I was hacked. Learning about this, I fell down the DASH rabbit hole and fell in love with their private-insta send options. Now, I use DASH when I am in finanically vulnerable situations. 6. You have developed your Youtube presence significantly. As you have grown into a industry influencer, what are you most passionate to speak about? My passion comes from being an End User for Bitcoin. I enjoy showing people how to actually USE crypto as money for everyday things. Recently I’ve become obsessed with Blockchain Games like SteemMonsters,com. Games that tokenize in game content like skins and accessories are the future of E-sports. But, what got me to start my channel was answering all the friends questions, at once, in once video, rather than repeating myself over, and again. What kept me motivated was the feedback, but mostly it was the opportunity to speak with industry leaders like Andreas and Charlie Lee. So I kept pushing myself and my podcast to higher and higher levels speaking to bigger industry leaders like John McAfee. I don’t consider myself an influencer though. I’m a content creator. I’m not an expert, more like an enthusiast at best. 7. Outside of cryptocurrencies, what industry do you feel will have the biggest application of blockchain technology? The vice industry’s have the most to gain when adopting crypto. They have been casted out of the legacy banking system and left to their own devices. From adult entertainment, cannabis to even gambling will be the first mainstream use cases for the tech because they have the most to gain in the risk / reward scenario. One of the largest legacy systems that would benefit the most, would be voting, making it easier and trustless for people to participate in elections or even business or person matters. But, is that what they want? We will see.
8. Who did you meet in 2018 that you were most excited about and what did you discuss? I got to meet hundreds of amazing people in 2018 that contributed to the evolution of blockchain. But, the one special to my heart was meeting Lyn Ulbricht, esp in my home town of Philadelphia at the Coinvention hackathon. The role in which Ross Ulbricht played in Bitcoin was historical as well as political. Empowering a truly free and open market to exchange goods and services all over the world, p2p with out centralized payment processing censoring transactions. This enabled a safe alternative for people to do business in means otherwise would be much more dangerous. We discussed the progress of the #FreeRoss campaign and her new petition to get Ross clemency. She told me the site FreeRoss.org has received enormous amounts of support and currently with over 115,000 signatures towards her goal of 500,000 to get presidential attention, she is bullish on the community. 9. What is the best advice you have received for your financial investments this year? Jack Tatar told me very early on in my investment career to dollar cost average into Bitcoin, and diversify. Following his guidance I decided to not drop everything I had saved into one asset at once. This helped me keep my emotions out of my trades and spread the risk to average more reward. I watched as others did not heed his advice, and walked off the preverbal Dodo cliff. After reading his book Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond I felt more comfortable as an investor. I always appreciated his patience and ability to speak to me in a way I could interrupt it and apply myself. He’s my favorite “old guy” in the room. 10. 2018 was your year to travel, attend events and experience our industry. What are your goals for 2019? I still want to travel but being more structured and organized, less winging it like life is a vacation. Capitalizing on all the elbows I’ve rubbed to create a higher quality podcast with higher quality guests, and more informative tutorials, to educate the masses and farther mainstream adoption. The goals I’ve decided to set for myself in 2019 include daily podcasting, weekly tutorials and up to 3 conferences a month, either as a speaker or simply attending to Blog my experience for those who couldn’t attend the events. I guess my goal is to become more professional as an end user and set the example of someone who has been living all in on crypto since 2017.
Kenn Bosak 10,000 subscribers
www.facebook.com/kennbosak www.steemit.com/@kennethbosak 47
Far Out Questions
Answers from the PROS
What is an ETF & how does it apply to crypto?
An ETF stands for Exchange-Traded Fund. ETF’s are traded on stock exchanges. They hold assets such as stocks, bonds and commodities. ETF’s have just recently included cryptocurrencies and blockchain related companies. Buying an ETF is a way to purchase a diverse investment with one item. In theory this is one way to reduce risk in an investment.
What does DLT mean?
DLT stands for Distributed Ledger Technology. This is the foundation of blockchain technology, bitcoin and cryptocurrencies. The information stored in a blockchain is kept on multiple servers, and checked against the copies of its data to achieve consensus or agreement that the data is correct and thus becomes immutable.
What are futures contracts & how does it apply to bitcoin?
A “future” is a financial product that allows two parties to exchange an asset at an agreed upon price and date in the future. It’s similar to buying a stock option, except there is no option, it is simply agreed and then the agreement is traded upon.
Who should I listen to for news & predictions about investments?
The best method of gathering news about your investments, specifically cryptocurrencies would be with charts, articles online and from your local industry or community. By setting a wide variety of sources, you will be able to complete your own picture of how you want to view your investments. Tradingview.com for charts, Cointelegraph.com for news, Twitter for news updates on the fly are just some reputable sources to consider.
My profits are down from 2018. Should I sell and get out of crypto?
The age old view of investments is that we should all “Buy low, sell high”. If you can wait to do that with values or profits being down, then you should wait. If you need cash flow or you want to stop the bleeding on an investment, sometimes selling is not a bad thing. If selling a bad investment creates cash flow so that you can re-invest, then you may have good reason to sell. Consider doing some research though about HODLing and long term proifits. There are no get rick quick investments outside of a casino.
What new projects should I invest in based on blockchain?
If you are looking for new things to invest in, consider this. Be very patient with those who give you free advice, and be very careful with who you pay for their advice. If somebody calls themselves an expert with blockchain investments, they are likely far from it being in a developing industry. Form your own research for investments. Gather as much information as you can before putting your money into a business. Once you have enough information where you have faith in an investment, the door is yours to walk through. You must always consider though that you must take risks to receive the benefits of investments.
Crypto Culture Magazine Contributors Ross Macdonald Jan Cerato Kyran Macdonald Chris Gamboa
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Photo credit Ken Bosak
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Watch for Issue #3 April 2019.
Our second issue of our quarterly magazine, published in January 2019. This magazine is also being distributed in print edition which can be...
Published on Jan 11, 2019
Our second issue of our quarterly magazine, published in January 2019. This magazine is also being distributed in print edition which can be...