Dominic Frisby’s book Bitcoin: The Future of Money? is now available.
The first chapter describes what Bitcoin is and how it works. The achievement of this chapter is that Dominic has described Bitcoin in plain English without missing any important details and without simplifying to the point of error. Too often when I read writing intended for the general audience about something I know about, I notice how wrong it is and how ill informed the general audience must be about all things. Not here.
Technical description out of the way, the rest of the book deals with the culture of Bitcoin’s early adopters, the various scandals we may have heard about and what they mean, what Bitcoin means for the state and for you, and what the future might hold for Bitcoin and cryptocurrencies in general.
The longest chapter is about the mysterious Satoshi Nakamoto, who wrote the original paper and developed the first versions of the software, and who has successfully remained anonymous. It is not particularly relevant to understanding Bitcoin, but it is very intriguing, and I think there is a good chance Dominic has reached the right conclusion about Satoshi’s identity.
There is discussion of the problems of inflationary fiat currency: the author has read his Detlev Schlichter. There is discussion of how the decentralised nature of Bitcoin sidelines governments and opens up new markets with people who are otherwise difficult to trade with. And there is discussion of the problems, too: the volatility, the technical challenges, and the dangers of being defrauded in a new marketplace where we are still learning what are the best business practices and how to decide who to trust. Finally, there is some advice about where to buy Bitcoins. It is not out of date yet!
The book is concise, complete, correct, entertaining, and a very good introduction to what Bitcoin is all about.
They are all coming out of the woodwork. First we have Bono talking sense about economics, now Brad Pitt talks sense about owning guns.
The Radio Times reports that Pitt doesn’t feel that he and his family are safe unless there is a gun in the house.
“The positive is that my father instilled in me a profound and deep respect for the weapon,” he said.
This exchange, on a sad and silly story about Lego ending its partnership with Shell in response to a Greenpeace campaign, made me smile. Someone complained about Greenpeace. Someone else replied: “Oh you mean like protecting our children’s future then eh? Bastards!” RoomSixteen pointed out:
“Greenpeace is one of the greatest threats to your children’s future. If not for Greenpeace, we’d have rolled out nuclear long ago, not to mention GMO like Golden Rice.
Greenpeace is against fusion, for heaven sake! How evil can you be?
“Greenpeace a bigger threat to my kids future than the corporate machine eh?”, came the reply.
Yes. The ‘corporate machine’ has afforded you a lifestyle that allows even your useless progeny a chance at a dignified life and not, as is Greenpeace’s most fervent ambition for them, a life of hard, manual labour 24/7 as subsistence farmers.
Later, and I am editing a bit:
Their campaign against Golden Rice has cost more lives than the invasion of Iraq.
Vitamin A deficiency kills half a million children each year. Times ten, that’s five million third world children, for starters – say a fifth of those would have survived if Golden Rice had been marketed in their countries, that’s a million children. Plus a million those who’ve gone blind.
But that’s only half of it. GMO R&D is proceeding at a snail’s pace, because investors know the great, noisy unwashed will camp outside their windows if they do. That’s one of the main reasons we don’t have drought/salt/flood resistant crops in the fields yet. And strawberries the size of baseballs, of course, but that’s a first world problem.
Much the same could be said about nuclear (although the causation is not quite as straightforward) because thanks to Greenpeace, we’re only doing now what should have been done 20 years ago, namely designing better and cheaper reactors to replace coal plants and provide cheap and plentiful energy. And energy is the lifeblood of welfare: the more you have, the better your life.
This guy is a real trooper; he is probably saving a good few naive young Guardian comments readers from believing in the toxic worldview there.. And it is good strategy, too. I have long noticed that the appeal of the left comes from their portrayal as the Nice Ones. Pointing out that they are Killing Poor Children is exactly what is needed to fight them.
He is also educating people about economics: “And yes, Monsanto makes money on bt corn, but so does the farmer, otherwise it wouldn’t sell.”
I rececntly ordered a water circulating heater for sous vide cooking. I do not like cooking all that much, but the controllability and repeatability of sous vide, along with the opportunity to play with a new gadget, appeal to my not-so-inner geek. To make the most of it, I ordered a copy of Modernist Cuisine at Home. It is a home version of the original Modernist Cuisine book that comprises six volumes and 2,400 pages and deconstructs the science of cooking. It is part of the molecular gastronomy movement in cooking, an attempt to make cooking more science-y. This appeals to me also because normal cookbooks are oppressive: “Do this!” they say, without ever explaining why. From their random examples I am unable to build a mental model of what is going on, so I can only follow the instructions blindly and wonder why I failed. And the jargon in cookbooks is incomprehensible; I am much more likely to be able to understand a science book.
Nathan Myhrvold is a principal author of Modernist Cuisine. He was the CTO of Microsoft and later went on to found Intellectual Ventures, which buys patents and licenses then to companies who are being patent trolled, though others have accused them of patent trolling themselves. An offshoot of this is Intellectual Ventures Lab, which does research and applies for patents and contains the kitchen where the cookbook was developed.
Myhrvold is a global warming believer, though he annoyed all the right people when he appeared in a chapter in Superfreakonomics suggesting that we might reverse the effects of man-made global warming with other man-made technology, instead of by reducing carbon dioxide emissions. And he is a proponent of nuclear power as a solution. Intellectual Ventures Labs began work on a travelling wave reactor, a type of nuclear reactor that runs on U-238, which reduces the need for enriching. TerraPower is now one of many subsidiaries, and is developing the reactor.
Between this, thorium, and a host of other reactor designs, I am hopeful about the technology of nuclear power, we just need the politics to catch up. A micro nuclear reactor was proposed in Alaska but, “the project never began the mandatory, lengthy and extremely costly process of gaining approval by the Nuclear Regulatory Commission…which takes tens of millions of dollars and several years”.
Bono is annoying. This was supposed to be a post in which I gloated about how, if I had an iPhone, I would be making use of the U2 removal tool, too, the story being that Apple gave away the latest U2 album for free and enough people complained that they had to offer a way to remove it.
And I would support my argument with stupid Bono quotes. But it turns out he is harder to pin down than that.
If globalisation means a better life for more people, we’re all in favour of it. If it means a better life for less people, we’re all against it.
Non-commital but hard to disagree with. And then there is this analysis:
While Bono has become synonymous with campaigns such as Drop the Debt that fit his right-on rock star image, he also has a well-developed sense of how capitalism works. U2 has acquired a business empire with an estimated worth of nearly (EU)700m. Much of that is due to their artistic talent, but a substantial portion has come from careful management of business opportunities.
Bono’s idea for helping the Third World involves the destruction of trade barriers and protectionism, and investment in the development of self-sustaining businesses. His economic instincts are pro-globalisation, but in a perfectly sensible business way. One of his big ideas to help the Third World, the launch of the ethical brand Product Red, with partners such as Motorola, Gap and Giorgio Armani, is based firmly on capitalist principles.
That is from an article criticising him for tax avoidance, of all things.
I am almost starting to like him. It is very annoying. Still, I do sympathise with @twitflup via The Daily Poke:
Just woken up to find U2 downstairs watching TV and eating my biscuits. Will their presumptions that I want them in my life ever end?
Recently I wrote about Simon Gibbs’ idea to find doctors willing to offer direct health care, providing better care at good value to customers and making a profit at it. Now his site Libertarian Home is gathering a list of people in the UK interested in such a service.
Register to express your interest in purchasing, for your own needs, a monthly subscription for GP services such as check-ups, disease management, minor treatments, obstetrics, and advice.
Simon explained to me that he wants to find a cluster of people who make a potentially viable business for someone, and put them in touch. You will be signing up to be notified of opportunities.
I hope he can help make this work. For the right price I would welcome such a service: it would be valuable to just have access to a doctor who I could chat with at leisure for general advice and not feel like I was being a nuisance.
Years after the collapse of the USSR, Cuba remains a bastion of communism, central planning… and shortages of basic goods.
I am not surprised that there are empty shelves in Cuba. I am surprised to be reading such things on the BBC.
despite Cuba’s proximity to the US, Washington’s 50-year-old trade embargo – which was designed to squeeze this island’s communist government from power – means there’s no American investment here. There’s no Starbucks, no Coca-Cola plant.
Some might see that as a good thing. But they might not find shopping for essentials quite so quaint. I once approached my big local supermarket full of optimism. I now know I’m likely to find a mixture of half-bare shelves and ones stacked with a single product: cheap ketchup, say, or adult incontinence pads.
Basic items disappear whenever Cuba struggles to meet its import bills. For weeks there was no toilet paper or cartons of milk. Now even the delicious local coffee is “lost,” as Cubans say – “esta perdido”.
Mind you there’s plenty of “partridge in brine,” should anyone fancy that. I’ve seen the same pile of cans on display for more than two years at $25 apiece. Perhaps a central planner ticked the wrong order box.
The story is even promoted from other stories under the banner “in today’s magazine”.
Last Friday Simon Gibbs spoke at Brian Micklethwait’s. He explained that libertarians are very good at talking, which is important and useful, but that he wanted to see them doing more, and that inspiring such action is what his Libertarian Home project is really about.
He had many ideas of things that libertarians could do. Some were simple and obvious, such as attending demonstrations so that the media is forced to explain who this strange new breed of demonstrator is, or handing out leaflets at events such as Occupy demonstrations where some of the attendees might not be fully sold on all of the ideas of their movement and might be amenable to persuasion. But what he really wants to see is demonstrations of things that would be everyday in a libertarian society actually working.
An example of this is direct health care. In the USA, Dr Josh Umbehr runs AtlasMD. You pay $50 per month for access to a general practitioner. You get better service, email and phone advice, and out of hours appointments. And someone who sees you as a customer rather than a nuisance, and spends time with you and helps you to find the right consultant or to try different medicines instead of rushing you out in time for the next appointment. Simon found one doctor in the UK who offers such a service for £125 per month for a couple.
I would like to see more of this. Simon explains:
It would not need to be the dominant form of healthcare, but merely to be available for about the price of a gym membership to 10% of the population. We can then start to use this kind of care as a counter example to the sainted NHS. To get there, we need to stimulate demand. We need to talk about this idea with friends and talk about the various ways in which this would be more pleasant and more convenient than the GP service we get from the NHS. We would then be able to talk about the NHS as something like a safety net for very serious medical catastrophes, not something we rely on every day for every kind of medical assistance.
Large-scale deployment of synthetic fertilisers enabled the expansion and intensification of agricultural production, resulting in hitherto unprecedented surpluses and a steep decline in food prices that have made agricultural producers in the global North dependent on government subsidies.
– Dr Heike Schroeder, senior lecturer in climate change and international development at the School of International Development, University of East Anglia, whose revealing drivel is currently being ridiculed over at Bishop Hill. (Warning, contains the word “governance”.)
The public sector strike the other day, which Perry welcomed and I did not notice, was nominally about austerity. I have heard various conflicting claims about UK government spending, so I decided to find out myself and make my own graphs using figures from ukpublicrevenue.co.uk and ukpublicspending.co.uk.
Spending did go down a bit in 2012 and 2013, so I suppose that is the austerity. But it is still higher than in 2009, and much higher than revenue, even though the latter has increased every year, contrary to the narrative that austerity is to benefit rich taxpayers.
The years 2014 to 2016 are estimates, which if to be believed indicate the plan is to resume the growth of the state.
These are absolute numbers. Other charts I have seen correct for inflation or GDP and population. I do not trust official inflation figures, and I think government spending makes the GDP statistic less useful. So I got average earnings figures from measuringworth.com and using the population figures from ukpublicrevenue.co.uk calculated spending per person as a percentage of average earnings. This makes sense to me because the fraction of my earnings that are appropriated by the state is what directly affects me.
The graph ends in 2013 because I have no estimates for average earnings. There has been a slight decrease in spending by this measure in 2012 and 2013, but no return to conditions before the step change in 2008.
In short, there is a lot of talk about not a lot of action. I have a suspicion that small cuts have been made to the wages of particularly vocal and popular public servants in order to make austerity seem like a bigger deal than it is while keeping powerful public servants in the manner to which they have become accustomed.
You can see bigger graphs and my working out in my spreadsheet.
Edit: I had mis-labelled the y axis on the first graph; it shows revenue and spending per person in Pounds. I have fixed the labels now.
I asked my stockbroker why part of my dividend payments were being witheld, despite the fact that I had filled in form W-8 declaring that I am not a US citizen. It turns out that there is a tax witholding on certain payments to foreign persons, including dividends. I am lucky that the UK has a treaty with the US meaning this is a mere 15% instead of 30%.
I imagine this highway robbery marginally reduces foreign investments. I wonder what interesting forms of taxation will surprise me next.
In a comment on my previous post, Mastiff wrote, “It is easier for me to buy stock in Microsoft than it is for me to buy equity in my friend’s clothing design business down the street, thanks to the state of securities law. So which will I tend to do?”
Which is a very good point indeed, and something I had not really considered that now seems obvious. It is just another way that large incumbents can use the state to stifle competition.
However, I have not read the Financial Conduct Authority’s policy statement on crowd funding, but there do seem to be some interesting ways of investing in small companies. Have a look at Abundance Generation, Seedrs, Bank To The Future and Crowdcube.
In the USA, there was the Jumpstart Our Business Startups Act, and Rock The Post offer startup investing.
Is this the start of something world-changing, or is it set to be stifled by too much regulation?