Showing posts with label Wendy McElroy. Show all posts
Showing posts with label Wendy McElroy. Show all posts

Tuesday, March 17, 2020

How Many Women Users Before Crypto Is Not Sexist?

How Many Women Users Before Crypto Is Not Sexist?

A recent headline on Micky — an iconoclastic media outlet that focuses on cryptocurrency — read “Crypto Twitterstorm: ‘Creepy sexist trolling’ or just a funny meme?” The article explained, “A post making fun of Blockstream’s Samson Mow has sparked a Twitterstorm over accusations of misogyny. Was it funny or just ‘sexist garbage’?”

Also read: Rumors of Bitcoin’s Death Are Greatly Exaggerated

Is Crypto Sexist?

The meme juxtaposed a photo of Mow embracing a Transformers toy box with an image of his romantic partner posing in gym clothes with an over-muscled male. The post was in bad taste, I believe, but it was far more anti-Mow and anti-male than sexist. The people involved in the Twitterstorm, including Mow, may or may not be sexists themselves. I don’t know. Discrimination against women is a common accusation hurled at males in crypto, however.

Here is what I do know. Everyone is equal on the blockchain; women, men, children, gays, transgendered people—all are equal. No gatekeeper slams a door shut because of a user’s race or any other secondary characteristic. Bitcoin is a protocol without prejudice or bias, with the only barriers to entry being the acquisition of knowledge and the access to a computer. In the flesh, the crypto community can be prone to the social insensitivity that comes from interacting more with technology than with people, but this is not discrimination; it is awkwardness. What seems to matter most to crypto zealots are characteristics such as competence and a willingness to learn. Contrast this with traditional payment systems for which politicians, bankers, and bureaucrats make all the rules, with entry being on their terms.

Nevertheless, when crypto users interact off the blockchain, they are often greeted by accusations of sexism—that is, they are accused if they are male. The main reason given is that there are fewer women than men within the community. This is especially obvious at conferences where women are conspicuously in the minority both as attendees and speakers. Since attendance is open to all, however, it is not clear why men are blamed for this imbalance rather than non-attending women. Or whether blame is appropriate at all.

This is the moment at which I am supposed to pause and acknowledge the severity of the issue. I won’t. It is true: If the crypto community wants to thrive, then it should try to attract as many diverse people of goodwill as possible. But no one in crypto has a personal responsibility to mentor or encourage anyone else, and being awkward or indifferent does not make someone a sexist.

A Closer Look at the Crypto Community Imbalance

The first question to ask about the woman “problem” in crypto is “how real is it?” No one really knows, partly because so much anonymity still surrounds crypto. The literature suggests that the ratio between men and women is probably 5-1, with nearly 13 million women holding crypto in the United States alone. This ratio may reflect a lesser interest in technology on the part of women. According to Statista, “female employees make up between 28 percent (Microsoft) and 42 percent (Amazon) of the total workforce at America’s largest tech companies … Looking at actual tech jobs, that percentage drops much lower, as women take up fewer than 1 in 4 technical roles at each of the companies reporting such a figure”. Whether or not these figures are accurate, the number of women in crypto has clearly increased, and substantially so, which means this “problem” could self-solve.

But what if men always outnumber women, and significantly so? Would this matter? One of the main reasons the alleged discrimination has become a hot button issue is because there is a power struggle in our society that is far broader than the crypto community. These are the glory days of social justice — a political ideology that calls for the forcible distribution of wealth, opportunities, and privileges within a society, especially favoring women and minorities. Today, the worst insult to throw at a person or an organization is “sexist” or “racist”. The main power of social justice warriors lies in such words and in the self-righteousness with which they are spoken. The word “sexist” gives a speaker power over an accused who often falls over himself to prove his innocence. Or he is silenced. In short, the accusations are often a power play that creates a problem.

Of course, many people are sincere in their accusations because they believe there is only one explanation for the asymmetry in gender numbers: discrimination against women. They are so passionately committed to this specific conclusion that merely arguing against it is viewed as discriminatory. They rush to boost the profile of females through dynamics like “all women” panels at conferences. In a sad irony, such panels often increase the focus on gender dissent and differences rather than diffuse it through integration and goodwill. Connie Gallippi of BitGive suggested a better method of promoting women. Frustrated by how few of them spoke at conferences and on panels, she compiled a list of highly qualified women and provided it to organizers. Both sides benefited. Both sides made progress without setting off fireworks.

Another positive suggestion to women: stop disparaging an entire community with hateful name calling. If the true goal is to encourage respect between the sexes, then this tactic moves in the opposite direction. Start dealing with prejudiced individuals on a one-on-one basis by standing up for yourselves, firmly and without rage. This is the approach that adults take.

Moving Forward in Equality

Questions remain. If there is no systemic sexism within the crypto community, what explains the lack of women? And is it a problem that needs to be solved?

The article “Crypto-Patriarchy: The problem of Bitcoin’s male domination” by Brett Scott offered a standard social justice explanation. “This is due to our society having a lingering, systematic male bias built upon hundreds of years in which men have had the most access to job opportunities, educational opportunities, political rights, and (perhaps most importantly) cultural encouragement to actually seek those positions.” In short, Bitcoin is said to continue a narrative of oppression against women.

But Scott’s explanation does not apply to the 21st century, which is the century of crypto. In the last 50 years, the status of women has improved tremendously while that of men has declined. Western societies today are culturally biased in favor of women. Just one example: Female students far outnumber males at American universities. The Atlantic observed, “Where men once went to college in proportions far higher than women — 58 percent to 42 percent as recently as the 1970s — the ratio has now almost exactly reversed.” The “solution” is not a quota system or preferential treatment for either gender; in fact, quota systems are a large part of the problem. The solution is to let individuals choose and not to artificially block their choices.

Crypto allows individuals — both men and women — to choose their own path, regardless of differences.

As a purely practical matter, however, it is intriguing to wonder about the gender disparity in crypto. Many things other than discrimination could explain it. Women may be less interested than men in crypto just as they seem less interested — as a rough generalization — in technology or science. If so, this does not reflect on women’s intelligence any more than a lack of interest in becoming a librarian reflects badly on men’s. Biological differences or cultural ones could play a part but, again, this doesn’t equate to discrimination. Or, men may dominate the upper crust of crypto for no other reason than they were there first. They created and developed crypto, which means they assumed the costs of doing so in terms of time and reputation. They shouldered the risks. Who else should benefit most and longest? But, again, this may be self-correcting as more women enter the community.

Women who deride the community because they are not sufficiently or correctly “welcomed” into it may also be reflecting their own sexist bias. Academia and much of society preaches that there is an omnipresent and overwhelming patriarchy — that is, a system by which white males oppress everyone else. This political conclusion has immense personal implications. It makes women afraid of men and angry toward them. Aggrieved males feel anger in return, and they will tend to avoid any association with their accusers. This is the wrong way to build community; it is the stuff of schisms and power plays.

Women want respect and acknowledgement, and any person who treats others well deserves it. You get what you give, however. If Gallippi had offered fury rather than a useful solution for promoting women speakers, she might have ended up on an all-woman panel dissing the very community at whose door they were all knocking for entry.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock.


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The post How Many Women Users Before Crypto Is Not Sexist? appeared first on Bitcoin News.



via Wendy McElroy

Sunday, March 8, 2020

Rumors of Bitcoin’s Death Are Greatly Exaggerated

Rumors of Bitcoin’s Death Are Greatly Exaggerated

According to the Bitcoin Obituary Page, Bitcoin died 379 times between 2010-2019 of an astonishing array of causes. The number is undoubtedly understated since it is based on a limited sample of obituaries. Despite the glee with which the corpses of Bitcoin are contemplated, however, cryptocurrency thrives because it continues to fill the human need for privacy and financial control.

Also read: A Sea Change to Crypto Hits America, Again

The Antifragile Bitcoin

The structure of crypto is robust. The economist Nassim Taleb developed the concept of “antifragility” in his book “Antifragile: Things That Gain from Disorder.” Taleb distinguished the concept from resiliency. Antifragile things “benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty … Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better.”

Crypto on a blockchain is viewed as antifragile. In a 2018 blog post on Medium, Taleb explained why. Central banks that are “a perfect monoculture” that all operate under the same centralized model, whereas Bitcoin works in a “distributed” or decentralized manner. Taleb cited Friedrich Hayek’s defense of decentralization, which rested on the superiority of distributed knowledge. Taleb commented, “Well, it looks like we do not even need that thing called knowledge for things to work well. Nor do we need individual rationality. All we need is structure.”

The blockchain structure has no owner, no centralized authority, no need to deal with a trusted third party. The freedom from third parties gives Bitcoin a marked advantage over other private currencies, like gold. “Banks control the custodian game and governments control banks … So Bitcoin has a huge advantage over gold in transactions: clearance does not require a specific custodian. No government can control what code you have in your head.”

The distributed control of “the crowd” not only sidesteps centralized authority, it also offers the diverse innovation by which Bitcoin improves by being tested. Decentralization is its antifragility. Overconfidence would be a mistake, however. Powerful and highly motivated enemies want to destroy free-market crypto, and they should not be underestimated.

How to Kill Crypto

The state and a tech attack by bad actors are the two greatest threats to free-market crypto. The latter is the least worrisome, however. The Bitcoin blockchain is close to unhackable, and innovative development can address other technical problems that arise. By contrast, the state knows where you live, and there is sometimes no escape.

An April 24, 2018 paper by Morgen Peck in the MIT Technology Review is entitled “Let’s Destroy Bitcoin.” Option one in doing so is labeled “Government takeover” and refers to creating a national digital currency. Peck envisions a dystopian future in which taxes are paid through “an algorithm” that “automatically makes a withdrawal from your electronic wallet, in a currency called Fedcoin.” Fedcoin is a digital currency that is issued by central banks with the blockchain administered by the state or institutions under its authority.

Peck sketches the Fedcoin system. “Each bank is responsible for a chunk of addresses on the blockchain. When new transactions come through, the bank validates them in a new block and sends it to the Fed. The Fed then acts as the final arbiter, checking the entries and unifying the blocks into a master version of the blockchain that it makes public.”

To access the system, a person needs to prove their identity and establish a wallet with the Federal Reserve or an approved financial institution. At first, Fedcoins could be purchased for cash; when people become comfortable with the new currency, however, the coins can replace cash entirely. The cashless society would allow the state to tax and impose monetary policy more efficiently. New coins could be minted at will, for example. Blacklists could exclude objectionable people and organizations from participating in the only authorized financial system.

Fedcoin would kill Satoshi Nakamoto’s vision of a private, decentralized currency through which individuals become self-bankers. Or would it?

Can the State Destroy Bitcoin?

Probably not.

For one thing, an effective ban on free-market crypto would require a worldwide effort that would be very difficult to coordinate. National responses to crypto vary widely. Several nations ban crypto, while others rush to embrace it as a money-making proposition. Users tend to shift their money over to the friendly venues. Global attempts to control crypto would resemble a whack-a-mole game.

For another thing, although the state can hunt down miners or users, it cannot destroy an idea. And this is what lies at Bitcoin’s core — an idea, a protocol — a well-known idea and an easily duplicated protocol. Even if Satoshi’s whitepaper had been censored in 2008, the technology could not have been suppressed. At most, it could have been delayed. When crypto inevitably did emerge, it would have an immediate advantage because coding is faster and more adaptive than legislation.

Perversely, a common consequence of censorship or bans has been to strengthen the target, not to eliminate it. There are several reasons. Outlawing things and activities often lends them a cachet or a thrill. Meanwhile, illegality usually hikes the price of an item — drugs, for example — but the item continues to be readily available. Some contraband — drugs, for example — can become more available because they are so profitable that merchants flood into the market.

Saifedean Ammous, author of “The Bitcoin Standard: The Decentralized Alternative to Central Banking,” is among those who believe attempts at suppression encourage free-market crypto. “People think that if a government were to pass a law that bans Bitcoin,” Ammous explained, “then Bitcoin goes away and they get to laugh at us and that’s the end of the story. I think it’s actually the other way around.” A ban would increase public awareness of two realities: if users are willing to risk imprisonment, then crypto must be valuable and useful; and the state is at war with financial freedom. Both insights favor crypto.

Even the severe and showcased punishment of crypto users does not necessarily discourage whatever illegal activity the state presents as justification. Ross Ulbricht —creator of the darknet marketplace, the Silk Road — is a case in point. Arrested in 2013, Ulbricht was eventually sentenced to a double life term in prison with no possibility of parole. And yet, darknets persist. The attempt at suppression of targeted offenders can backlash by making the freedom of crypto more attractive and accelerating the conversion of wealth from physical assets into digital ones.

A state’s best chance to monopolize digital currencies is a three-pronged attack.

1) Issue its own digital currency that competes vigorously by offering legal advantages to users while retaining some practical advantages of the free-market ones, such as speed of transfer.

2) Constantly demonize private cryptos as high-risk vehicles of crime and immorality. Instead of blatant censorship, the state runs a propaganda campaign.

3) Then ban or strictly regulate private crypto. Free-market crypto would become black market and so justify an ever-tightening grip by the state.

“The way for them to kill Bitcoin is for them … to offer a technology that is better than Bitcoin — that can obviate the need for Bitcoin,” according to Ammous. “Or, at least, they need to try.” Actually, the state only needs to convince people that free-market crypto is dangerous and state-issue is a safe replacement, whether or not it is true. In short, a money monopoly = safety and morality; freedom=risk and turpitude.

The state needs to convince people fast because the economy is running out of time. The “everything-bubble” — a large and simultaneous bubble in a variety of asset categories — is stretched to breaking, and the center cannot hold. A new currency and payment system could give the banks an air of efficiency and progress, while buying time for the state.

Ammous is correct. The state needs “to try” to recreate crypto as a vehicle of state power. The attempt may succeed temporarily and to some degree, but state-issued crypto will ultimately fail because it no longer benefits the users. If it did, state crypto would not require the force of law. As merely one example: the Bitcoin blockchain is designed to distribute power across a peer-to-peer system that does not allow an authority to rewrite the rules arbitrarily. This is an essential check on the system’s integrity. If a centralized authority controls the blockchain, however, it becomes a database that serves the interests of the state. The blockchain loses its free-market “use value,” which is the private and convenient transfer of money over distance. Instead, the blockchain and its coins acquire a “use disvalue,” which is their cost in terms of surveillance and taxes, including inflation.

Rumors of Bitcoin’s death are exaggerated, but they should not be ignored. Knowing how to sidestep a danger means knowing what and where it is.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock, fair use.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post Rumors of Bitcoin’s Death Are Greatly Exaggerated appeared first on Bitcoin News.



via Wendy McElroy

Saturday, February 29, 2020

A Sea Change to Crypto Hits America, Again

A Sea Change to Crypto Hits America, Again

A sea change is coming to cryptocurrency in America. It is likely to hit in two separate waves: a central bank digital currency (CBDC) and draconian regulation that shuts down free-market activities, including development.

Also Read: No Backdoor on Human Rights: Why Encryption Cannot Be Compromised

The Wave of a Central Bank Digital Currency

Robert Wenzel of the Economic Policy Journal has a warning. A [U.S.] Federal Reserve created digital coin could be one of the most dangerous steps ever taken by a government agency. It would put in the hands of the government the potential to create a digital currency with the ability to track all transactions in an economy—and prohibit transactions for any reason. In terms of future individual freedom, this would be a nightmare.” If recent statements by American lawmakers and bureaucrats are an indication, however, state-issued crypto seems to be on its way.

A shift in attitude on CBDC is in the air. Consider Federal Reserve Governor Lael Brainard. In May 2018, she stated, “There is no compelling demonstrated need for a Fed-issued digital currency.” While acknowledging the efficiency and low cost of blockchain transfers, Brainard presented a familiar check list of objections to digital currencies. They were too volatile to be utilized as money; their anonymity protected crimes like money laundering and sex trafficking; they eluded regulation. Then Brainard added what may have been the fundamental reason for dismissing a CBDC. At the beginning of 2018, digital currencies were so small a part of the financial system that they posed no stability risk. They did not threaten the monetary status quo. Or, at least, Brainard did not perceive the threat.

In February 2020, her tune differed. “The Fed is conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC.” The main public argument for a CBDC is a perceived need to stabilize crypto by pegging it to traditional fiat, which is assumed to be less volatile. The “nightmare” of which Wenzel warned already has a name: Fedcoin.

What changed between May 2018 and February 2020?

Crypto surged in popularity and price while central banks and their fiats continued a slow implosion. Several nations — including America’s financial nemesis China — announced an intention to issue e-currencies. “We are collaborating with other central banks as we advance our understanding of central bank digital currencies,” Brainard explained, all the while “making sure” we are at the “frontier of both research and policy development.” Translation: the U.S. does not want to be left behind. Neither will it eat Facebook’s dust; Brainard claimed that Facebook’s digital currency Libra, which emerged last year, “imparted urgency” to the conversation. Digital currency was becoming a large enough part of the financial system for agencies like the Internal Revenue Service (IRS), the Federal Reserve, and the Treasury Department to notice.

The Wave of Draconian Regulation

The regulation attack is surging, and it will extend far beyond the current licensing of exchanges to make them function in conformity with state law.

The IRS has stepped up crypto prosecutions and has created new rules. In his article “IRS Explains What Crypto Owners Must Know to File Taxes This Year,” Kevin Helms observed, “Among the changes to the 2019 Form 1040, the main U.S. tax form, is the addition of ‘an inquiry regarding the acquisition or disposition of any virtual currency’, the agency explained. The new crypto question appears on Form 1040’s Schedule 1, entitled ‘Additional Income and Adjustments to Income’.” This is prelude.

Treasury Secretary Steven Mnuchin recently revealed that the Department’s Financial Crimes Enforcement Network (FinCEN) was preparing “significant new requirements” in order to provide transparency to crypto in a quest to prevent “crimes” such as tax avoidance. Here, transparency is a synonym for state surveillance. “We want to make sure that technology moves forward,” Mnuchin continued, “but … we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.” He added that FinCEN and the Treasury Department are “spending a lot of time on this.”

The Department of Justice was even more blunt, declaring bitcoin mixing to be “a crime” in and of itself. Yahoo Finance’s article “US DOJ Calls Bitcoin Mixing ‘a Crime’ in Arrest of Software Developer,” indicated how seriously the DOJ takes this alleged crime. “Larry Harmon was arrested earlier this week for allegedly participating in a money-laundering conspiracy worth more than $300 million in cryptocurrency involving darknet marketplace AlphaBay. However, the family of the Coin Ninja CEO claims he was never involved with AlphaBay. Harmon’s case raises pressing questions about developer liability in the crypto industry.” The mere development of tools has been criminalized.

The Two Waves Flood Together

As yet, Mnuchin has not supported a CBDC. He merely echoes President Trump’s loud concern that crypto is being used by bad actors, and the “abuses” must be reined in by careful state monitoring. The easiest way for this to be done is to create some form of CBDC on a blockchain protocol that the state controls, however.

The state’s pattern in monetary matters can be judged by how it handled private competition to the money it has issued in the past. Whatever the politicians say now, the same pattern is likely to hold with crypto as soon as it becomes pragmatically possible.

First, state money is issued through a central bank and free-market competitors are controlled by regulation. “To start with, I suspect it’s going to be a parallel currency,” the investment guru Doug Casey explained. “Perhaps usable just within the U.S. which, in effect, would be a form of foreign exchange controls even more effective than the inability of Americans to open up foreign bank and brokerage accounts today … I think it’s a near certainty that they’re going to do something like this and soon.” Second, the state will attempt to establish a monopoly by criminalizing the ownership of free-market crypto and, perhaps, mandating the ownership of state-issue. One manner in which a fiat has been historically mandated is by making taxes or other state fees payable only in that form of money.

Establishing a CBDC may be irresistible to Trump, not only as a way to stay competitive with rival monetary powers but also because of the extreme political power it offers. A CBDC would serve the state in at least two ways:

  • By controlling the design of the Fedcoin’s blockchain and its terms of use, the state can strip away encryption and anonymity so that every transaction is identifiable. Every user can be taxed. Every coin can be confiscated; the threat of confiscation or of being shut out of the financial system is a means to impose social control.
  • The CBDC eases people into a cashless society. States dislike cash because it offers an anonymity that blocks their ability to tax and control. If only the CBDC were permitted, however, extra “taxes” could be levied and social control asserted. If the state wanted to prevent someone from traveling, for example, it could block the person’s ability to buy a plane ticket … or ammunition for a gun.

As usual, the freedom and prosperity of individuals will be stolen in the name of a noble cause: fighting sex traffic or child pornography. In reality, it will be done to empower the state. The title of an Electronic Frontier Foundation (EFF) article stated “In Foreshadowing Cryptocurrency Regulations, U.S. Treasury Secretary Prioritizes Law Enforcement Concerns.”

The wording of the coming regulations and probable Fedcoin are not yet known. Their purpose is clear, however; the state wants to convert cryptocurrency into a form of state fiat and a technology of financial surveillance. The latter can reveal far more than economic transactions. As EFF observed, they can point “to everything from your friend network to your sexual interests to your political affiliations.”

State-controlled e-currency means state-controlled individuals.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post A Sea Change to Crypto Hits America, Again appeared first on Bitcoin News.



via Wendy McElroy

Sunday, February 23, 2020

No Backdoor on Human Rights: Why Encryption Cannot Be Compromised

No Backdoor on Human Rights: Why Encryption Cannot Be Compromised

In April 2019, the UK issued an Online Harms White Paper to announce its campaign to rein in “harmful speech” on social media sites such as Facebook and TikTok. The public consultation period has ended and a full consultation response is expected in Spring 2020. (Initial Consultation Response here.) Legislation to criminalize freedom of speech will follow quickly.

Also read: Cryptocurrency Is Agorism in Action

The Death of Free Speech

“The United Kingdom has become the first Western nation to move ahead with large-scale censorship of the internet … Boris Johnson has unveiled rules that will punish internet companies with fines, and even imprisonment, if they fail to protect users from “harmful and illegal content.” Couched in language that suggests this is being done to protect children from pedophiles and vulnerable people from cyberbullying, the proposals will place a massive burden on small companies. Further, they will ultimately make it impossible for those not of the pervasive politically correct ideology to produce and share content.” —Mark Angelides, “Britain allows the internet to be censored, a warning for the U.S.”

The bill’s exact language is not known, but its thrust is clear. Internet companies with user-generated content will need to enforce anti-harm rules in order to avoid fines, imprisonment, or their sites being blocked. Home Secretary Priti Patel explained, “It is incumbent on tech firms to balance issues of privacy and technological advances with child protection.”

The main target of attack is end-to-end encrypted (E2EE) messages that can be read only by a sender and a recipient by using unique cryptographic keys as decoders. Third parties cannot access the content. E2EE is the most effective privacy tool that is both easy to use and available to everyone, often for free. To comply with UK law, however, companies will need to eschew encryption or to install “backdoors”—portals that allow someone to enter a system in an undetected manner.

No Backdoor on Human Rights: Why Encryption Cannot Be Compromised

Angelides’s warning to the U.S. is timely because Congress is considering a similar measure: the EARN It Act. Again, the Act’s justification is to protect children and to thwart evil-doers. After all, who else needs encryption? According to the United Nations, everyone.

Encryption Is a Human Right

In 2015, the UN issued a report on encryption and anonymity in the context of human rights. The report found encryption to be key to the right of privacy. In turn, privacy enabled freedom of speech through which people could explore “basic aspects of their identity,” including religion and sexuality. The report’s author David Kaye cautioned against using backdoors because of the “unprecedented capacity” of authorities, companies, criminals, and the malicious to attack people’s ability to share information safely. Kaye acknowledged the alleged need of law enforcement to read encrypted messages but on a “case-by-case” basis rather than blanket approach.

This a long-held position for the UN. In 2016, Zeid Ra’ad Al Hussein, UN High Commissioner for Human Rights, published a warning entitled “Apple-FBI case could have serious global ramifications for human rights.” Zeid cautioned:

Encryption tools are widely used around the world, including by human rights defenders, civil society, journalists, whistle-blowers and political dissidents facing persecution and harassment… Encryption and anonymity are needed as enablers of both freedom of expression and opinion, and the right to privacy. It is neither fanciful nor an exaggeration to say that, without encryption tools, lives may be endangered. In the worst cases, a Government’s ability to break into its citizens’ phones may lead to the persecution of individuals who are simply exercising their fundamental human rights.

Amnesty International agrees. A 2016 article, “Encryption: A Matter of Human Rights,” argued, “Forcing companies to provide ‘backdoors’ to the encryption deployed … constitutes a significant interference with users’ rights to privacy and freedom of expression. Given that such measures indiscriminately affect all users’ online privacy by undermining the security of their electronic communications and private data, Amnesty International believes they are inherently disproportionate, and thus impermissible under international human rights law.”

Why, then, are states rushing to crack open encryption? Because information is power. It is a prerequisite to demanding money and imposing social control. For decades, surveillance functioned from the shadows but now it openly demands access to people’s thoughts and lives. Who else but evil-doers would say “no?”

No Backdoor on Human Rights: Why Encryption Cannot Be Compromised

The EARN It Act

U.S. Attorney General William Barr has been loud in his demand that law enforcement be able to access encrypted communications—usually through a backdoor. Barr wants this access even when there is no cybersecurity risk or alleged crime. He may soon get what he wants so badly.

The EARN It ActEliminating Abusive and Rampant Negligent of Interactive Technologies Act—would establish “a National Commission on Online Child Exploitation Prevention” to be headed by Barr, who has the authority to overrule it to become a one-man power. As well as “child exploitation prevention,” the Act asserts a vague mandate —“and for other purposes.” This is a blank check, with only the elimination of election misinformation being specifically mentioned. Republican Lindsey Graham and Democratic Richard Blumenthal are pushing the measure in the Senate on a bipartisan basis.

The draft bill does not mention encryption, but it requires tech companies to assist law enforcement in identifying, reporting, and removing or preserving evidence about child exploitation … and “for other purposes.” E2EE would make it impossible for those companies to provide such assistance.

The EARN It Act would de facto prohibit the E2EE offered by services such as WhatsApp; it would short circuit Facebook’s plans to encrypt its messaging apps; companies like Apple would be in legal jeopardy if they refused to insert backdoors in their software and devices.

Setting a Dangerous Legal Precedent

Legal jeopardy is the Act’s enforcement mechanism. A non-compliant tech company would lose Section 230 immunity in both civil and criminal courts for child exploitation and for as-yet-unspecified offenses that occur on its site or over its platform. The free-speech champion Electronic Frontier Foundation (EFF) explained the significance of Section 230 of the Communications Decency Act; it is “the most important law protecting free speech online.” The protection is based on distinguishing between a platform and a publisher. Section 230 states, “No provider or user of an interactive computer service [platform] shall be treated as the publisher or speaker of any information provided by another information content provider.”

A platform provides services, tools, and products with which users create their own content; it bears no more legal responsibility for this content than a phone company does for the conversations that flow over it. By contrast, a publisher edits or otherwise controls content, which makes it legally liable.

EFF continued, “Section 230 enforces the common-sense principle that if you say something illegal online, you should be the one held responsible, not the website or platform where you said it (with some important exceptions) … Without it, social media as we know it today wouldn’t exist … And it doesn’t just protect tech platforms either: if you’ve ever forwarded an email, thank Section 230 that you could do that without inviting legal risk on yourself.”

EARN It not only strips immunity from non-compliant companies, it also weakens the standard by which they can be sued. It is now necessary for a plaintiff to prove that a company knew an offense was occurring in order to sue; EARN It would require a plaintiff only to show that the company acted “recklessly.” In a keynote address at the 2019 International Conference on Cyber Security, A.G. Barr defined E2EE as inherently irresponsible. “The costs of irresponsible encryption that blocks legitimate law enforcement access is ultimately measured in a mounting number of victims — men, women, and children who are the victims of crimes — crimes that could have been prevented if law enforcement had been given lawful access to encrypted evidence.” To Barr, the mere presence of backdoor-free E2EE constitutes recklessness.

The targets of EARN It seem to be the internet giants that have aroused bipartisan rage. At a recent Senate Judiciary Committee hearing entitled “Encryption and Lawful Access: Evaluating Benefits and Risks to Public Safety and Privacy,” Apple and Facebook were attacked for using warrant-proof encryption that prevented authorities from investigating “terrorism, organized crime and child sexual exploitation.” Internet giants might not be the main victims of EARN It, however.

EFF explained, “Undermining Section 230 does far more to hurt new startups than to hurt Facebook and Google. 2018’s poorly-named Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA)—the only major change to Section 230 since it passed in 1996—was endorsed by nearly every major Internet company. One consequence of FOSTA was the closure of a number of online dating services, a niche that Facebook set about filling just weeks after the law passed.” The legal need to screen or filter content placed smaller companies at a competitive disadvantage with the likes of Google.

Google Executive From India Joins Coinbase as Chief Product Officer

Conclusion

Unfortunately, an ongoing backlash against Big Tech may propel EARN It through Congress. Moreover, Congress undoubtedly wants to have better control over social media before the 2020 elections. The EARN It Act will arrive with a cry of “Save our children!” But its impact will be to stifle freedom of speech across the spectrum, to hobble small businesses, and to make all users more vulnerable to criminals, including agents of the state.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post No Backdoor on Human Rights: Why Encryption Cannot Be Compromised appeared first on Bitcoin News.



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Monday, February 17, 2020

Cryptocurrency Is Agorism in Action

Crypto Is Agorism in Action

The book “New Libertarian Manifesto” (NLM) by libertarian-anarchist Samuel E. Konkin III (SEK3) launched a movement that has grown amazingly over the last few decades: Agorism. This is the movement of peaceful revolution through counter-economics. Counter-economics is “the study or practice of all peaceful human action which is forbidden by the State.” Agorists, SEK3 wrote, are “counter-economists with libertarian consciousness.” As such, they refuse to participate in the state or to use violence except in self-defense.

Also read: Bitcoin and Doomsday Preppers — Would Crypto Have Any Survival Value If SHTF?

Agorism According to Samuel E. Konkin III

“We witness to the efficacy of freedom and exult in the intricate beauty of complex voluntary exchange. We demand the right of every ego to maximize its value without limit save that of another ego. We proclaim the age of the Market unbound, the natural and proper condition for humanity, wealth in abundance, goals without end or limit, and self-determined meaning for all: Agora.”

So wrote Samuel E. Konkin III in the “New Libertarian Manifesto” (The quotes in this article all come from NLM.) SEK3 died in 2004 and missed the opportunity to embrace cryptocurrency. As an associate and friend of his, however, I guarantee he would have reveled in it. As it is, NLM foreshadowed one of the most important effects crypto will exert on individuals and the world. Crypto will mitigate the coming collapse of the dollar and of the global economy, which will probably take down several nation states with it. Like crypto, Agorism will do so by offering a non-statist method to create and use wealth while increasing individual freedom. Both of them function outside the box.

Cryptocurrency Is Agorism in Action

Agorism in Action

The key to how Agorism operates outside the box lies in its approach to four types of markets: red, black, grey, and white.

Red markets consist of “exchanges” that involve coercive acts by private individuals, such as a mugging or a threat of harm. Although some coercive acts are popularly associated with the black market, this is a miscategorization. “The Mafia, for example,” SEK3 noted, “is not black market but acts as government over some of the black market which collects protection money (taxes) from its victims and enforces its control with executions and beatings (law enforcement), and even conducts wars when its monopoly is threatened.”

Black markets consist of “anything non-violent prohibited by the State and carried on anyways.” The goods and services exchanged include drugs, censored material, prostitution, fake documents, illegal housing, bootlegging, gambling, and knock-off products. The black market consists of victimless crimes. The importance and extent of the black market in any given society depends on the size of the white market that co-exists beside it. In the former Soviet Union, for example, the black market was vast because the white market—the “official” Soviet economy—was micro-controlled by the state and could not deliver the needs of the people.

Cryptocurrency Is Agorism in Action

Grey and White

A grey market refers to the trade in goods and services that are not in-and-of themselves illegal but which are obtained or distributed in ways that are. Unlicensed and under-the-table labor, such as “freelance” plumbing or construction work, are examples. Plumbing is not illegal but the state demands above-board plumbing so as to take its cut in the form of licenses and taxation.

The line drawn between an act or exchange being red, black, and grey depends on the level of aggression that is present. Consider the act of killing someone. “Murder is red market,” SEK3 explained, “defending oneself against a criminal (when the State forbids self-defense) … is black in New York City and grey in Orange County.” The difference, at least when NLM was published in 1980? Orange County recognized the right to self-defense but limited the circumstances in which it could be exercised.

A white market consists of legally accepted transactions that are regulated by the state and taxed. These exchanges are what most people conduct on a day-to-day basis. In a statist system, the economy will naturally tend toward black and grey zones because that is where financial freedom and profit exist. The restraining factor is fear of the state and punishment. As a practical reality, however, “even large businesses today could go partially counter-economic, leaving a portion in the ‘white market’ to satisfy government agents and pay some modicum of taxes and report a token number of workers. The rest of the business would (and already often does) expand off the books with independent contractors who supply, service, and distribute the finished product. Nobody, no business, no worker, and no entrepreneur need be white market.” Going grey is a choice, albeit one with risks.

Cryptocurrency Is Agorism in Action

The Four Categories of Crypto

Crypto can be viewed through the lens of all four categories. Red market crypto occurs when someone hacks into another person’s wallet or uses ransomware to extort; this is aggression. Black market crypto is when an e-currency is prohibited by the state but people use it anyway because it offers freedom and a superior store of wealth; Venezuela is an illustration. Grey market crypto happens when a legal crypto is exchanged in an illegal manner, such as peer-to-peer trading that avoids a state’s tax requirements. White market cryptos are epitomized by state- or central-bank issued ones but also include crypto exchanges that comply with the state requirements on issuance and reporting; this latter form of crypto functions as an extension of the state, which is the antithesis of the free market and freedom.

In writing of Agorism, SEK3 highlighted an impact that cryptos share as well. Namely, they not only soften the effect of statism on the individual who employs Agorism and crypto, they also provide a softer landing for society when the economy collapses. “Counter-economics provides immediate gratification for those who abandon statist restraint … But only New Libertarianism offers reformation of society into a moral, working way of life without changing the nature of Man. Utopias may be discarded; at last we have a glimpse of how to remold society to fit Man rather than Man to fit some society.”

This means the way to individual freedom and prosperity is the same as the path to societal health. Indeed, it would be remarkable if the paths diverged since society is nothing more than a gathering of individuals who share the same basic nature. The fundamental nature of man is to exchange for economic and personal gain, and the human need to exchange is what creates societies in the first place. The wellbeing of the individual is the wellbeing of society.

Cryptocurrency Is Agorism in Action

Free Exchange Without Coercion

For a genuine exchange to occur, however, the individuals must act voluntarily. To the extent aggression is present, the “exchange” becomes coerced. The more coercion, the less beneficial the “exchange” is to anyone but the aggressor. Otherwise stated: the black and grey markets allow individuals and societies to flourish. The red and white markets drain them of energy, prosperity, and freedom.

Unfortunately, crypto may be at a disadvantage vis-a-vis Agorism when it comes to functioning in the white market. It is not only possible but also commonplace for people to use black and grey markets to avoid the state. For one thing, the state often turns a blind eye either because the stakes are so small or because it realizes that society’s survival depends on under-the-table trades; the Soviet Union was an example of the latter. But the stakes are far from small with competing currencies, and the state’s survival depends on maintaining its money monopoly. As cryptocurrency gains in popularity, it increasingly threatens state power. There will be no blind eyes when it comes to crypto.

Those who value the prosperity and freedom of crypto would be wise to always prefer black or grey market means even when convenient white market ones are available. The former strengthens the individual and society; the latter strengthens the state.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post Cryptocurrency Is Agorism in Action appeared first on Bitcoin News.



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Sunday, February 9, 2020

Wendy McElroy: Crypto is Banking for Anarchists and Average People

Wendy McElroy: Crypto is Banking for Anarchists and Average People

“What I love about Bitcoin is that instead of some rich old guy on Wall Street, young poor people are the ones getting rich”

—Eric Finman

No Longer Is Economic Sovereignty Just for Politicians and Bankers

“Cryptocurrency is for the rich”; this pernicious myth causes people to resent crypto and be suspicious of it. An impressive number of users have made a fortune through early adoption or shrewd investments, it is true, but the greatest beneficiary of crypto has been average people. Crypto levels the financial playing field between the rich and the working class.

It is comparatively easy for the rich to preserve privacy, avoid the highest taxation, and be treated decently by financial institutions. They have lawyers, accountants, and other informed experts who zealously guard their interests. They have foreign bank accounts, diversified holdings, and tax write-offs. It is also easy for the rich to become accredited investors — a legal status that opens access to the most profitable investments, such as stock in start-ups.

Wendy McElroy: Crypto is Banking for Anarchists and Average People

By contrast, the working person handles his own money or has it managed in an employment fund, such as a Registered Retirement Savings Plan. He cannot afford to consult experts, let alone to hire them full time. He has no foreign bank account, no widespread investments, nor any significant tax breaks. It is extremely difficult for him to become an accredited investor, which shuts him out of the most profitable opportunities. The system is rigged against the financial interests of average people.

Crypto is a game changer. It only requires a basic understanding of the dynamic, and this is available for free at a multitude of sites that provide instruction manuals, video tutorials, online experts, user forums, and a flood of articles on how to start, on how to protect yourself. With a modest investment of time and money, the average person can become his own banker, control his own wealth, access global markets, and escape the tyranny of the statist financial system.

A way to better appreciate the advantages crypto offers to average people is to look through a window onto the past and see how difficult financial freedom once was.

Anthony L. Hargis, Banker to Anarchists and Average People

For about twenty-eight years, until his brief imprisonment in 2004, Anthony L. Hargis operated a warehouse bank in Fountain Valley, California that was frequented by libertarians; the shareholding trust was called Anthony Hargis & Company (ALH&Co). A warehouse bank is one that conceals individual transactions and customer identities by commingling funds that are deposited to and paid out through another financial institution. Warehouse banks are often used to avoid tax liability. Thus, the concealment of depositors’ identities is the key aspect of both the bank’s value and its alleged criminality.

In the United States, the Internal Revenue Service (IRS) aggressively pursues and prosecutes warehouse banks.

A March 16, 2004 Department of Justice release, “Alleged Tax-Scam Promoter Sent to Jail,” stated,

“The Justice Department sued Hargis last week, alleging in court papers that Hargis’s warehouse bank accepts funds from some 253 customers and then places the commingled funds in nine commercial bank accounts, held in his name or the names of his associates. Hargis then allegedly uses the commercial bank accounts to write checks to pay customers’ bills. The commercial bank accounts are allegedly held in Hargis’s and his associates’ names, making it difficult for the authorities to trace the income, assets, expenditures, and identities of customers. The complaint alleges that Hargis’s customers, located throughout the United States, but primarily in California, owe an estimated $24 million in federal taxes.”

Wendy McElroy: Crypto is Banking for Anarchists and Average People

Hargis offered other services as well. Clients could invest in shares of ALH&Co, for example; they could maintain gold-denominated accounts or dollar ones on which “transfer orders” (cheques) could be written; ALH&Co would act as a depository and issue FDIC bank cheques to pay regular bills for clients who requested this service.

Phil Osborn, a close associate of Hargis, explained his friend’s motivation. “Anthony’s focus then and up to the present was on the dishonesty and fraud, as he viewed it, perpetrated by the Federal Reserve System, which he viewed as a giant scam and Ponzi scheme supported by the armed might of the U.S. and its international cabal.”

Although he was never charged with a crime, Hargis spent about six months in jail; or, rather, his crime was a refusal to turn over client and company records to various federal agencies, most conspicuously the IRS. While Hargis was imprisoned, the agencies confiscated his property—including all customer deposits—and stole his records. They assumed ALH&Co’s office as well as all of its postal or e-mail addresses, and its telephone number. Hargis alerted his customer base. “This means that everyone who tries to communicate with me at my old address will reach the IRS instead—and those at the office will represent themselves as working for [ALH&Co].” Assets were ultimately awarded to the IRS by the court, including accounts held in outside banks.

ALH&Co’s customers and shareholders were contacted by government agents, with a Receiver’s Petition being issued. (Note: the Notice of Receiver’s Petition alleges a customer base of 1190, which presumably reflects the fact that many customers used different services than the 253 who went through outside commercial banks.)

In a March 16, 2006 update, Osborn informed readers, “Last I heard, Anthony is now penniless and has a claim against him by the IRS of some $30 million or so. His total assets, at the time that the Feds seized everything, were possibly worth an estimated $7 million. The seizures resulted in the loss of a good portion of those assets, apparently, as various businesses shut down, etc., leaving perhaps $2 million, it appears, from the final liquidation by the Receiver.”

Crypto’s Financial Freedom for All

ALH&Co offered many of the same benefits as crypto: privacy, protection from traditional banks and the state, and an enhanced ability to control wealth. Because it was brick and mortar, however, using ALH&Co came with risks: harassment by the state, confiscation of wealth, fines and possible arrest. After his release from jail, Hargis warned his former customers:

Please understand, your life, literally, is at stake here. The government is really ticked off that we have operated/exercised rights for twenty-eight years; and is determined to make a real bloody example of all of us.

Everyone associated with ALH&Co knew the risks.

Who were the Hargis customers? They included the rich but most of them were average working people or small businessmen who were neither rich nor poor. Osborn described one. “Bruce, who was a personal friend, although not really close, ran a small printing business, specializing in high quality prints, that had apparently taken out a loan from ALH&Co. and then paid it back. On that basis, as far as I can tell, Bruce was alleged to be some kind of co-conspirator with Anthony’s evil criminal empire, and, I was just told this past weekend, hit in 2004 with a $ million in penalties, somehow. The entire assets of the business, which was just barely scraping along like so many small traditional print shops in the digital age.” Bruce died of heart failure in his late 40’s.

The customers were largely average people who recognized the glaring injustice of traditional banks; they were working people who decided to keep what they earned.

Wendy McElroy: Crypto is Banking for Anarchists and Average People

Conclusion

Crypto is financial freedom without the risk that ALH&Co’s clients assumed. They were endangered because Hargis was a trusted third party—a rare one that actually was trustworthy. A trusted third party is the point at which transactions are most vulnerable because they are most visible to criminals, including the state. The genius of Bitcoin removed the trusted third party “problem” from transactions and this removed most of the vulnerability.

Again, it is the average person who does not have a lawyer or an accountant to set up financial protections who most needs to control his own wealth. He can do so through a privately-held wallet on his own hard drive, through encryption and education. A protected and private wallet cannot be raided in the same manner as ALH&Co was in 1993. The feds burst through an unlocked office door with machine guns and flak jackets in order to stop the money laundering and drug dealing that they just knew was going on inside. Instead, they found the conservatively-dressed, soft-spoken Hargis conducting business with average people. This resulted in a court case he won.

By contrast, peer-to-peer crypto allows users to sit at their own computers, in privacy and comfort, investing as much or as little as they can afford. No machine guns, no flak jackets. And, yet, crypto users enjoy the same freedom as ALH&Co’s customers did in the company’s golden days; they do so with next to none of the risk and with a great deal more efficiency. Crypto affords average people the same protection as it does the billionaires who share the blockchain on an equal footing. It is the great financial leveler.

Do you think Bitcoin is a financial leveler? Let us know in the comments section below.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post Wendy McElroy: Crypto is Banking for Anarchists and Average People appeared first on Bitcoin News.



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