126 Madeira Consorcio Meeting 23.4.2022

Apr 25, 2022 at 9:11 am | Posted in Posts | Leave a comment
Tags: blockchain, crypo, currencies, Portugal, taxation

we met in the Gallery again, and attacked the topic of crypto currencies and blockchain. We watched 2 videos:

What is Bitcoin? https://www.youtube.com/watch?v=Um63OQz3bjo o

and Nicolas Cary: https://www.youtube.com/watch?v=qdCCYVnxtW4

Crypto currencies are based on the open-source Blockchain software. Blockchain is a solid ledger, no information gets lost and the stored information cannot be eliminated or forged. It is “mined”, generated by writing into the blockchain, but only by people with very good computing power.

It is good for land registry and other information systems, it can have a good impact, especially in Third World countries. It could also be used to track the complete work of an artist. But it is mainly used for Crypto currencies.

There are several crypto currencies; Bitcoin is the oldest and the biggest. In theory, Bitcoin is limited to a finite number of Blocks but it can be extended.

The technology needs a lot of electricity. Newer crypto versions are trying to limit the number of checks of a transaction so that the energy consumption is lower. Also, they can try to use surplus energy at night.

Bitcoin does not reach in any way the number of transactions processed by the banks for payments systems. Crypto is very volatile. There is no protection for the trader. If the trader loses his encryption key, he can never recuperate the Bitcoins. Inheritance is impossible without the key There is not control of the system. If we pay banks fees part of it is also for the security the system offers.

In some cases, the FBI etc got the keys from criminals and managed to get the Bitcoin for the State.

Bitcoin etc can also be forbidden in a country (China).

Bitcoin is used by the Mafia etc, and in the Darknet, for drug buys and child pornography payments etc

Crypto is not taxed in Portugal, this is why traders move here to avoid taxation so far. Taxation could only take place if Bitcoin is exchanged into a “real” currency.

Bitcoin is a virtual value, it has no value in itself on the exchange, like metals, food and other products. Credit default Swaps (without a real counter-value) brought on the Financial Crisis of 2008 – 1014.

Government and banks cannot regulate Crypto it but in the future, they will certainly try to get a grip on it.

K. also found two other links to explain 2 issues.

How we could buy Bitcoin in Portugal: https://paxful.com/buy/bitcoin/portugal

What happens if the trader dies: https://www.analyticsinsight.net/what-happens-to-your-cryptocurrency-when-you-die/