Wed 12 Jul 2017 10:47AM

Should we prioritise policy development re cryptocurrencies & blockchains?

SD Suzie Dawson Public Seen by 143

There was some discussion around cryptocurrency in 2014 that should be updated for 2017. (Ref: https://www.loomio.org/d/CxFrT8X5/a-discussion-about-crypto-currencies) There has also been a number of expressions of interest in us developing policy around the blockchains.

There is a 'decision' here as to whether we should prioritise it - please vote on it: https://www.loomio.org/p/WC7YOfiq/should-we-prioritise-policy-development-re-cryptocurrencies-blockchains-?from=0&per=25

Please use the below thread for related discussion, research, links, questions, commentary, etc!


Bruce King Mon 17 Jul 2017 9:37AM

Commenting as someone who has looked into this at some level but certainly not an expert. My impression is it is an experiment that individuals may embrace as interesting or promising but is not ready to be introduced as the currency of a country.

That is, at this stage it needs to be explored more as a technology by the geeks and enthusiasts until they can present it as something that obviously works and they can lay out a scenario for a country to take it on.

“Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential.”
– Marc Kenigsberg

There are 2 obvious problems that stand out for me even on initial inspection that are already damaging at the very least, if not fatal.

1) Bitcoin, for example, fluctuates as a volatile stock based on investors' changing perception of its worth. Afaik imho that's no basis for a stable currency.

Illustrated well by tweet from 36 minutes ago:
"#Ethereum Price Plunges 20% on Sunday, Then Recoups "

2) The method for continually verifying the integrity of the blockchain - known as "mining" - relies on an enormous amount of computing using an enormous amount of energy. This is by design so no one entity can do more than half of the mining which, if it happened, would allow that entity to gain control of the blockchain.
Link: https://en.wikipedia.org/wiki/Bitcoin#Mining
(See also the discussion on this between Marc Whinery and Rangi Kemara taking place towards the end of the 2014 thread.)
So it is an enormous energy hog, by design. That is not environmentally friendly.

So in my view it is premature to make political policy on cryptocurrencies.


Colin England Mon 17 Jul 2017 10:14PM

1) Bitcoin, for example, fluctuates as a volatile stock based on investors' changing perception of its worth. Afaik imho that's no basis for a stable currency.

Our own currency does that due to the value being set by the speculators rather than the actual trade weighting.

So in my view it is premature to make political policy on cryptocurrencies.

Personally, I don't think it's even possible. We've used private currencies before and they've always crashed. I don't see anything in a block-chain that changes the fact allowing private currencies essentially allows an infinite number of them and that is simply unsupportable.


Daymond Goulder-Horobin Tue 18 Jul 2017 2:19AM

New Zealand should take the initiative to expand into cryptocurrency, though I don't think NZ needs to have its own crypto just yet until we plan it out first. I've always liked the idea of including Bitcoin as part of the superannuation fund in a diversified portfolio. As Bitcoin has a higher risk class than stock it would maybe make up at the very most 1% to 2% of the portfolio but it would raise the returns much higher. And even then we could diversify between BTC,LTC,ETH etc.

At least from a finance perspective I support investment in crypto as an Extremely High risk and Extremely high return classification. Will post some returns down here at some point.


Pirate Radio Podcasts Sun 23 Jul 2017 1:35PM

Rumour has it, we're working on launching an "ALTCOIN" with something of a PIRATE flair, sometime w/in the next YEAR. How much of a priority should projects like this be?


Colin England Tue 25 Jul 2017 1:29AM

As I said above. Once we allow private currencies we'll end up with an unlimited amount of them and none of them will work due to inconsistency thus bringing about the collapse of the economy.


Pirate Radio Podcasts Thu 27 Jul 2017 3:56AM

Meh - FIAT, "monopoly" INTEREST burdened currencies have long been a bane upon the world. Free-market rules, and the INVISIBLE hand of God. AS per Charles Darwin: Diversify or DIE.

BARTER is another viable option which has long vexed statist BLOOD suckers, & crooked Kraken minions https://www.minds.com/search;q=barter;type=groups


Colin England Thu 27 Jul 2017 10:33PM

All currencies are fiat and they need to be a monopoly. They don't and shouldn't have to have interest on them. A sovereign money system can address the interest and maintain a stable economy whereas the private systems will always collapse.

Barter is a little difficult to work with.


idiom axiom Wed 26 Jul 2017 12:25AM

The internet party needs to oppose capital gains taxes.

Every crypto currency transaction is like any foreign currency transaction or stock trade. The exchange rate when the coin is acquired and divested must be recorded for capital gains taxes in capital gains jurisdictions. Failing to do so opens one up to enormous tax fraud liabilities.


Blake Bedford-Palmer Sat 12 Aug 2017 6:18AM

I'm not sure what good having our own one would be, But countries like Australia and Japan it is now recognised and treated just like money in regards to tax.

Banks absolutely hate it though, People in NZ have had their bank accounts closed for trading Bitcoin, Bitcoin related startups like MyBitcoinSaver and exchanges have had the same struggle

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