Monthly Archives: July 2023

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Markethives Reason For Being and Magnanimity Entrepreneur One: A Divine Legacy

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Markethive’s Reason For Being and Magnanimity. Entrepreneur One: A Divine Legacy


 

Markethive’s epic entrepreneurial ecosystem has come a long way since its Divinely inspired inception. Markethive now runs on its own servers, with the security of blockchain and its Hivecoin (HVC) so close to being released on crypto exchanges and self-custody wallets. We have arrived as the first mega-decentralized marketing and broadcasting network encompassed by a social media interface with a vision and mission to deliver an autonomous sovereign meritocracy en masse that is not subject to oppressive technocracy.

When the founder and CEO Thomas Prendergast was given this vision from the Lord to build Markethive, the basics had to be free for everyone, such as the newsfeed, video, autoresponders, capture pages, the rotator link, broadcasts, etc. All Tom had to do was work out how to fund the project. 

How was Markethive’s growth made possible?

Through the Divine inspiration and tenacity of the founders, the concept of the Entrepreneur One Loyalty Program (E1) was created.  When the Entrepreneur One Upgrade was constructed, it was designed to reward the person for seeing the vision and trusting Markethive, particularly Tom, to build this vision. 

Ergo, how the E1 works and what it does is a Divine inspiration. Firstly, it funds Markethive to build the vision, and in turn, it will give a magnificent return from the Initial Loan Protocol (ILP) or, as it’s more recently called, the Incentivized Loan Program, which is included in the E1. As the name suggests, it is a loan from you to the company that pays you back at the end of the term and gives you magnificent returns when Markethive opens it to the masses.  

Markethive did have numerous affluent investors preparing to invest millions of dollars into Markethive; however, various tragic events fell on each of them before finalizing their commitment. In Tom’s words, “…it’s so weird! It got to a point it was laughable.” 

But, Markethive does have a core of people who are dedicated to the Markethive vision and have given Markethive its “daily bread” by being an Entrepreneur One for $100 per month so Markethive can continue the Divine quest inspired by our Lord. It can only be explained as biblical. Because of the goodwill and conviction of some, Markethive has accumulated the money needed to move forward with development as fast as possible, funds permitting.

The world’s disastrous events, especially over the past three years, have been called biblical also, and this is the reason why the entrepreneurs of Markethive and the company have this imperative to free and help every living soul achieve financial and self-sovereignty. To be enlightened and awakened to the perils and evil that’s been active and, for the most part, hiding in plain sight for decades, if not centuries, from all of us. 

Markethive’s Engineers. A Divine Intervention

Markethive’s engineers came to Markethive through the Holy Spirit. They were told to work with Markethive through their relationship with the Lord, where they received messages and answers through inspiration. Markethive was the company they were directed to, and through their dedication, sacrifice, and ingenuity, the platform, with its unique concepts, is being built. We are so blessed to have them on board with us at markethive. 

Entrepreneur One Receives Many Rewards

The E1 wasn’t set up to be any particular time period, but as Tom & Co continues to build Markethive, the E1 has evolved and given those with one or more E1 accounts a variety of rewards. As explained in a previous article, there are many different rewards and opportunities to generate income allocated to the E1 member.  

The Banner Impressions Exchange (BIX) is one that has been overlooked up to this point. Since its release, it hasn’t been a huge moneymaker, but it will be. Keep in mind that the banners are only shared by a maximum of 500 E1 accounts. To explain its potential, let’s take LinkedIn as an example. 

LinkedIn has 750 million active users, which equates to 40 billion hits per day. When Markethive has those massive hits from 75 million users, and you’re one of only 500 E1 members that can sell your impressions to a potential 750 million people who want to run ads, they will be willing to pay $4-$5 per impression. The amount of income that alone can produce is significant. The revenue of just that one component of the E1 will increase over time, and it’s forever as long as you are an E1 and active.

The banner placement space that belongs to the E1s is showcased on the premium real estate of the Markethive site, which is the upper header space below the taskbar. The Banner Impressions Exchange is available to all members should they wish to buy impressions from the E1 members to place a banner in Markethive.      

The E1 Upgrade gives other excellent benefits, like a 100% matching bonus on your new signups and those brought in by the company. In other words, the E1s get all of the traffic Markethive is responsible for bringing in via marketing campaigns, and the signups are rotated to only the E1s. 

Another benefit is the upcoming Promocode issued by Markethive to the E1s. Each E1 member will have their own Promocode, and Markethive’s administrative control panel decides what products the Promocode gives. These incentives consist of WOF, Boosts, Markethive Credits, Markethive tokens, Push, Broadcast, HVC, etc. And these will be assigned in multiples! 

So when prospects sign up on your Markethive promocode site, they will receive what’s allocated once they’ve completed KYC. Furthermore, it’s free to you as an E1: Markethive includes this in the E1 Upgrade subscription.  

As Markethive builds its system, the daily bread has been coming in consistently via the Entrepreneur One Program, which has enabled Tom and the Engineers to produce the Premium Upgrade. The Premium Upgrade is one of the additional things they’ve added since Tom was told to give the platform away for free. 

Markethive’s Retail Products

We now have numerous facets added on top of the basics that Markethive can sell that are very valuable. Markethive now can create retail sales packages like the Premium Upgrade. We also have the Wheel of Fortune, the Boost, and the E1 banners and impressions.

In the works, we have the Push, which is a group that, when you publish in the group, your posts are on the top of every single newsfeed in view for every new person who signs up. The very top banner on the Markethive platform will also be available for sale, which is the ultimate in prime real estate and primarily for the company’s use.  We are also preparing to deliver the broadcasting, press releases, and video advertising. All of the above are Markethive’s retail products. 

More About The ILP

As stated earlier, The ILP is one aspect of the Entrepreneur One Loyalty Program but is separate. There is still some confusion about the difference between the E1 and ILP. To clarify, The E1 (Entrepreneur One Upgrade) is a $100 monthly subscription, where you earn 0.1 ILP after one year of consecutive payments, which accumulates every year while active. 

The ILP (Incentived Loan Program) is a loan to the company that is paid back to you via a balloon payment after 20 years, or you can re-initialize it for another 20 years. So, you are lending Markethive the money that the ILP represents. It also provides monthly payments or returns to you, which is 20% of the net revenue of Markethive’s retail products. This is paid to all ILP token holders per their pro-rata share as long as the principal is outstanding. 

Also, note that the ILP is an assumable note that you can transfer to anybody. For example, If you hand your Markethive account over to someone else, the ILP is theirs, and they benefit from the returns. There will be an ILP Exchange, like the upcoming E1 Exchange, where you can sell your ILPs. 

The Markethive legacy will last forever. Markethive’s ethos, ethics, and transparency allow everyone to benefit, including the BOD and Alpha shareholders from the previous company before Markethive. These members are grandfathered in, automatically receiving 0.5 ILP for BODs and 0.2 ILP for Alpha members. 

Right now, anyone can buy an ILP or part thereof with Markethive tokens, Bitcoin, bank transfers, or credit cards. You can also earn ILPs through the Entrepreneur One Program or win an ILP through the contests Tom holds occasionally. 

Remember, the ILP is not an ICO, which is a security. You are not buying it from Markethive on speculation that it will be worth more in the future, like stocks. The ILP is a loan, which is not a security but a legally binding and conforming loan agreement. Because it is a debt instrument, it is not subject to tax and is compliant with the USA UCC code governing debt instruments.

What Markethive, the company, pays out to you, in fact, all transactions, will come through the wallet Markethive has just finished building. The spectacular, very sophisticated wallet also keeps track of the ILPs you own, and you will be paid your 20% share of Markethive’s revenue with the profit of the retail products through your Markethive wallet. 

It’s important to note that the ILPs earned through the E1 Upgrade are bona fide and are yours to keep forever. Your earned ILPs will continue to pay you returns even if you cancel your E1 subscription. The ILPs will continue accumulating in the E1 Upgrade until all 1000 shares/ILPs are accounted for. 

Another Divine Inspiration from Tom

Here’s something to look forward to. Once the bona fide ILPs are dispersed, there will be what is called a Virtual ILP. (V-ILP) It will be produced to take its place and take another 10% of Markethive’s revenue. You will acquire the Virtual ILP in the E1 account that you have, and as long as it’s active, the Virtual ILP that it’s earning will pay out 10%. If you cancel the E1 subscription or sell it on the E1 Exchange, the V-ILP associated with that account will cease and no longer be payable to you. Unlike the original E1 Upgrade, you do not keep your ILP.

The E1 Is A Legacy Program

The Entrepreneur One Loyalty Program is a legacy program, and it’s Divine because not only does it empower Markethive to move forward, grow the company, and, as we move forward, be massively successful, but in turn, it pays back to each person who supported the company to fulfill its mission victoriously. Eventually, it will get to a juncture where there will be a tipping point, and more revenue will come into that ILP than what the E1s are paying out for their monthly subscription. 

Current Entrepreneur One members are urged to continue with their subscription as it will fuel their future wealth. Remember, it’s a loan from you that is paid back to you at the end. Meanwhile, 20% of Markethive’s revenue is also paid to you. This is unique and a gift from the Lord; no other company does this!  

The Markethive wallet has been accomplished and is functional for all intents and purposes. The wallet is just waiting for the Hivecoin launch to step outside of Markethive’s door, unleashing it to the global community. We are now very close to assigning Hivecoin and launching it to various wallets and exchanges.

The countdown will be activated at that time, and the announcement that the Entrepreneur One Loyalty Program is closing to new members and will not be available from the company, only E1 members through the E1 Exchange. You will have 30 days from the notification to either become an Entrepreneur One member or, if you have suspended your E1 Status, re-instate your E1 account to receive all the benefits and potential wealth it has to offer. 

But why wait? Become an Entrepreneur One now by subscribing for $100/month or save $200 when you purchase an E1 for $1000 for 12 months. Start accumulating your bona fide ILPs now. You’ll be an integral part of Markethive’s development envisioned for all humanity and be rewarded with a legacy of wealth to enjoy and pass on to your family.  

May the Lord bless and uphold you for all eternity…

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

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Brand and Business Leverage Through Book Publishing

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Brand and Business Leverage Through Book Publishing

Brand and Business Building?

When you think of the word brand, what comes to mind, and where does it fit in your business-building strategy?

In layperson’s terms, a brand is about the widely held perception by which a business becomes known. It is usually seen in the slogan or tag accompanying a business name.

A typical example is Nike, who is known for the slogan – 'Just do it!' Nike is associated with decisiveness and action without excuse. Another is Coca-Cola, which is supposedly ‘The real thing.’

Now, whether you believe that or not is another thing, these slogans are used to frame the perception a company wishes you to hold when thinking about them. It is all too easy to come up with desirable, flashy concepts that appeal to the minds of onlookers and retail customers, and it's quite another thing to live by it.

Brand Building through Book Publishing

Similarly, in the book publishing world, it is relatively easy to rank as a bestseller once you understand the criteria and maths involved. It is possible to manipulate the statistics in your favour. 

For example, if an author buys 5000 of their own books from Amazon, well, that equates to 5000 sales and potential bestseller status. There are many who have done that for the status and to frame the perception of their onlookers. A best seller speaks to sales but not necessarily impact.


Image Source: Amazon

This type of practice can end up as a gimmick that will eventually come back to bite if your reason to do it is purely to sell rather than impact your audience.

With this all-important issue, book publishing can plug a much-needed gap, and when done properly, you can have the best of both worlds. After all, becoming a best seller means greater exposure, visibility, and publicity, which is valuable, especially when its roots are in the objective of impacting lives with applied knowledge that works.

With book publishing, you have the opportunity to help people view you as an expert in your field. So, let’s loop back and review why you may wish to publish a book as part of building your brand and, therefore, your business.

Why Publish a Book?

A book is a vehicle for organising, articulating, and publishing your message of expertise so that many can be helped where they struggle with the problems your expertise can solve. It imparts insight into the nature of those problems and provides clear steps by way of the solution that can be applied.

Some of the most influential books are those that share the author’s journey with the struggles they have now found solutions to. Why? Because experience is more powerful than theory alone. In terms of the customer journey, it helps with that part of the journey where they get to know, like, and trust you.

When you take that knowledge embedded within the personal journey of your struggles and discoveries and combine it with real-world case studies and examples of successful application, it helps to break the isolation of their journey reader further. It enables them to know that there is a possible solution.

Your book is the articulation of your solution, and it showcases your expertise and ability to solve problems your audience may be seeking. It amplifies your authority and credibility and allows your reader to test-drive your solution.

Many may seek your skilled input beyond a DIY application if your insights speak to the gaps in their application, and they are able to start to change the trajectory of their life and business.


Image Source: Scribe Media

Stepping out into Authorship

Unpacking your expertise
A great place to start is to unpack your knowledge and expertise onto paper in no particular order. This is often referred to as a brain dump. From that place, you can then start to organise your notes under categories or themes. If you try to do both at once, it may slow the process down. For a bit of fun, why not use an egg timer and do it against the clock to sharpen focus?

If you have got this far, you are doing well, but it is a wasted effort if you do not go on to complete this process. Research shows that approximately only 3% of people go on to complete the writing of their book.

There could be many reasons, including perfectionism, writer’s block, uncertainty about the process, and low confidence. Some people express themselves better in writing than verbally; for others, it is the other way around. Maybe, for some, the ‘imposter syndrome’ sets in because they perceive it to be too prestigious.

Things that could help are being interviewed by someone or recording your expressions in order to retain your voice and style of expression. Alternatively, you could consider getting someone to write your book once they have grasped the core points of your message. This is something that footballers and managers do. They hire ghostwriters to help them get their books out there. There are many ghostwriters, whether for fiction or non-fiction. 

You could go to a freelance site like fiverr. On the other hand, if you are a changemaker, you might prefer a more personalized approach compared to a traditional commercial approach to ghostwriting, so that would require more in-depth research to find someone who resonates with your criteria and will assist you throughout the process to break the overwhelm.

Authorship via Books
You can learn how to write a book by picking up the books of those who have inspired you and observing their literary style and organisation of expertise. Here is an example of one regarding leadership.

Authorship via Book Fayres
If you prefer the offline world where you can meet people face to face, you should visit a book fayre. They will cover everything from writing to publishing and promoting. Many agents and dealers will be advertising their publishing services.

Authorship via Teaching
The process of publishing a book can be daunting for many, so it may be unsurprising that only about 20%  go on to publish their book.  After all, beyond the writing and publishing of your book, there is the promotion to think about as well.

You might wish to enroll in an online masterclass in order to become an author, and there are many out there from those who want to be the next Malcolm Gladwell or otherwise.  

Authorship via Online Summits 
Suppose you want to garner the wisdom of people across the globe. In that case, online summits are a great idea because they focus on sharing the knowledge and experiences of many authors, which will bring many different facets to your authorship journey.

Some are paid in that either you pay to attend, or if you take part as one of the speakers, there is an expectation to cross-promote the event and the other speakers with a financial reward. In other words, the speaker becomes an affiliate of the summit.

There are others that are not so. These types of summits draw those who genuinely want to share and simply encourage you to share with no expectation of reward, which I prefer these days and have contributed to. 

Roger Bannister Effect

The great thing about exposing yourself to people who have been there and done it is that when you see so many authors who have gone before you who have just done it, it helps to raise the belief that it can be done and that you can do it. I often refer to this as the Roger Bannister Effect.


Image source: Wikimedia

Roger Bannister broke the 4-minute mile, and when he did so, many went on to break it because, in his accomplishment, his demonstration broke the limiting belief that it was impossible. Nelson Mandela is often quoted as saying, “It always seems impossible until it's done.”

Publishing

There are a few options depending on how much control you want over the editing, marketing, and royalties. You might decide to self-publish and get your book on Kindle and Amazon. 

You can also get help publishing your book on Amazon and Kindle through freelance sites, which is an obvious starting place for many who are starting out. If you decide to use Amazon as a start, consider how you will capture the contact details of prospective readers first so you can grow your audience, not just your book sales.

You might wish to hire a publisher who will offer in-house publishing and promotional services. You might even consider a major publisher if you have an already established audience, but be prepared for less control and royalties.

I recall writing my first book publishing project, and I will share this experience on my personal blog at some point, as there were many things that went well and things that did not, but it was a valuable experience, one that I can build on. 

The key thing is to get started. There is no substitute for experience; you can always iterate and improve as you go along. So now it's your turn.

Become an author of your expertise and turn the impossible into possible so that you can make a difference and impact the lives of those seeking what you have to offer.

 

 

About: Anita Narayan. (United Kingdom) My life's work is about helping individuals to greater freedom through joy and purpose without self-sabotage, so that inspirational legacy can serve generations to come. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.
 

 

 

 

 

 

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About The Markethive Wallet – What You Need To Know

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About The Markethive Wallet – What You Need To Know

Great news, Markethivers! The wallet is now installed on the Markethive platform. Markethive has kept its promise and delivered a complete working wallet. This mighty, robust, and secure wallet encompasses all aspects of facilitating your business and securing all your financials within Markethive, like earnings and payments, dividends paid from your ILPs, retail products, etc. 

This is a significant step in the right direction for monetizing Markethive’s ecosystem as it endeavors to ensure and restore sovereignty and financial freedom increasingly being stripped from us by a global authoritarian regime. This article will illustrate what you need to know and do to access the now-operational wallet. 

Understand that access and functions of the wallet are only for Entrepreneur One (E1) members at this stage. E1 members can now retrieve their Hivecoin (HVC) from their cold storage to their hot wallet. (You can do this in preparation for the forthcoming coin exchanges and your 3rd party self-custody wallet.) You can also transfer HVC to other members within Markethive via the wallet. 

Access The Markethive Wallet

To access your wallet, tap on the wallet icon on your Markethive dashboard (portrayed in the image above). A popup of the wallet will appear on your screen. If you haven’t completed your KYC, you will see a stop sign (pictured below) and a prompt for you to initiate the KYC protocol. You must complete the KYC process and 2FA for access to the Wallets section of the Markethive Wallet. (Note: The 2FA protocol will be installed into the Security section of the wallet in due course.) Meanwhile, you will have confirmed your 2FA when logging in to Markethive. 

The non-E1 KYC-approved members will see the banner announcement (pictured below) until its full release. The image in the wallet has a link should you wish to upgrade to Entrepreneur One to gain early access and take advantage of all the benefits offered, including becoming a shareholder by securing the ILP (Incentivized Loan Program), which will pay a monthly dividend on the net profit of Markethive’s revenue. The E1 membership will no longer be available from the company once the wallet has fully launched. 

About KYC And 2FA

In Markethive’s case, KYC is for the community’s benefit of knowing who they are engaging with and not for governmental regulations, unlike exchanges and others.  It assures Markethive members that you are a real person, dedicated to honest and transparent relationships in business and socially. The purpose is to have an active, dynamic, and secure “hive of people.” Note that once KYC is approved, the documents uploaded to attain approval are all deleted; Markethive does not keep these documents. 

The short selfie video required in the Markethive KYC protocol is kept on file so you can retrieve access to your account if you lose it. The admin can verify you with that video if you lose your device and the 2FA app needed to utilize your Markethive account and wallet. You just make a short video requesting access to your account and how you lost access. The video prerequisite is another layer of security to prevent your account from getting hacked. It also prevents members who have signed up but are not verified from hacking or spoofing.   

This article comprehensively explains the 2FA installation and protocol for various devices. Since Markethive introduced 2FA at login, most members have successfully activated it; however, some still need clarification or have issues with it. The most common problem people have with the Google Authenticator app is an incorrect code. If your code is incorrect, it usually means you entered it after it expired. The code changes every 30 seconds. 

If you input your code within the allotted time and it’s still incorrect, it means the time on your Android device is not synced with your local time zone. To remedy this, open the Google Authenticator app on your Android device. In the top right, select More ⋮ > Time correction for codes > Sync now. On the next screen, the app confirms the time is synced.

Markethive Wallet Security

More and more platforms are utilizing this protocol for security reasons. Markethive has taken it further with its unique, never-been-done-before system to provide the most extreme security that virtually makes it impenetrable. Unlike other platforms, we have a comprehensive financial accounting hub that can be likened to a bank. Your assets in your wallet are precious and, in most cases, can be considered a livelihood.  

You must set up the Markethive security protocol as it is needed to transfer HVC to any other 3rd party wallet once HVC has been officially named and can be listed on various self-custody wallets. More about Hivecoin in a forthcoming article. This security consists of the following: 

  1. Your Security word. 
  2. Your security image and word.
  3. Confirm your 2FA.
  4. Retrieve the code sent to your email on record with Markethive.

The security of such a system needs to be severe and is very necessary in today’s world of massive corruption.

How To Retrieve Your HVC From Cold Storage

The above Markethive security protocol is unnecessary for internal transfers. However, as Markethive is currently on the Solana blockchain, you must have a small amount of Solana coin (SOL) in your Markethive wallet to facilitate the transfers, whether within your Markethive wallet or externally. As shown in the image below, only a minuscule amount of SOL (0.002) is needed to retrieve your HVC from cold storage to your hot wallet balance.  

First, to deposit SOL into your Markethive wallet, go to your Markethive Wallets section > Go to Solana Wallet > In the drop-down menu, tap ‘Receive Solana’ > Copy your Solana address. Then, go to the wallet where you hold the Solana coin and complete the transaction. Your chosen amount of SOL will be in your Markethive wallet instantly. 

You can then retrieve your Hivecoin from cold storage into your hot wallet to access your HVC for transactions. Once in the hot wallet, you can transfer to anyone within Markethive, or any wallet you or anyone else has where the HVC is listed.  

HVC Retrieval Guidelines

Another great reason to have Entrepreneur One status is that E1s have no limit on retrieving Hivecoin from the cold storage to the hot wallet. This drastically reduces the risks of bottlenecks that can occur when restrictions are in place. These guidelines are as follows: 

  • E1s have limitless retrieval of Hivecoin from cold storage to the hot wallet.
  • Premium upgrades can retrieve 10 HVC per day. 
  • Free members can retrieve 0.01 HVC per day. 

Become an E1 Now. Time Is Running Out!

Markethive has built a system that works for the average entrepreneur and will continue to expand and reach new heights with its unique concepts and products. The wallet is now complete and functional for the Entrepreneur One members. You will want to become an E1 when you understand what Markethive is doing with the Entrepreneur One Upgrade. 

It’s Markethive’s vision and mission to spread the wealth with as many who are willing to be part of this. You bless Markethive by upgrading to Entrepreneur One now and be prepared to be blessed a thousandfold. This is your company, your online business, and your home. These memberships will be sought after, demanding huge prices on the upcoming E1 Exchange, and sold by E1 members who understand and believe in the vision with the foresight to acquire multiple E1 accounts. 

Entrepreneur One Upgrade. A Reciprocal Blessing. It Works Both Ways!

Secure your share of Markethive and experience exponential growth of your income and legacy. You are welcome to purchase multiple Entrepreneur One subscriptions, which multiplies your income accordingly. Time is running out as the E1’s availability from the company will soon come to a close when the Markethive Wallet is released to the community. This is your chance to secure an E1 membership from Markethive for free, help pioneer, and own part of the world’s first blockchain-driven social market broadcasting network of the future, where we stand for freedom and hold dear your sovereignty. 

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

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Wall Street’s Money Game Puts Crypto Revolution At Risk

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Wall Street's Money Game Puts Crypto Revolution At Risk

Many people who believe in the potential of cryptocurrencies hope that Wall Street, the famous financial hub, will eagerly invest in the growing crypto market and enjoy the same profitable returns that individual traders have experienced whenever the value of cryptocurrencies has surged. However, this belief overlooks two crucial facts: firstly, Wall Street is already heavily involved in the cryptocurrency market, and secondly, it has no intention of injecting its capital to boost this volatile market.

The world of institutional finance has had numerous opportunities to capitalize on the cryptocurrency space. However, as its influence expands, the cryptocurrency market is transforming, potentially into something entirely different. Whether this transformation is intentional or an unintended consequence of its shortcomings, Wall Street may gradually undermine the essence of cryptocurrency itself.

This article explores the intricate dynamics between Wall Street and the crypto world, shedding light on the potential implications of the Wall Street money game in the crypto industry. Let's unravel the mysteries and better understand this ever-evolving landscape.

Wall Street Is Not On Your Side

The recent exposure of Wall Street's Bitcoin conspiracy has shed light on some alarming developments in the market. It all began with the BlackRock Bitcoin ETF application. BlackRock, a powerful asset manager known for its extensive control over various industries, including media and pharmaceuticals, has been implicated in bribery and political manipulation over the years. It is essential to remember that Wall Street and these major players are not interested in your financial freedom. They are anti-revolutionary and do not have your best interests at heart.

The news of BlackRock's Bitcoin ETF application is significant due to its massive influence as a $9.1 Trillion asset manager. Even a tiny portion of their funds could potentially buy up all the Bitcoin available on exchanges. However, BlackRock is not the only organization venturing into the Bitcoin ETF business. Fidelity, a $4.24 Trillion asset manager, and other major players are also interested in entering the market. These ETFs are expected to be backed by real Bitcoin and traded on stock exchanges.

The paperization of Bitcoin raises concerns as it will move more Bitcoin into the hands of stockbrokers, reducing the amount of Bitcoin available on the blockchain and resulting in fewer fees for miners in the long run. Long-term investors currently hold a significant portion of Bitcoin. BlackRock, Fidelity, Wisdom Tree, and Invesco, have all filed for Bitcoin ETF applications. These developments cannot be ignored.

Furthermore, we have EdX, an institutional-grade cryptocurrency exchange backed by Fidelity, Charles Schwab, and Ken Griffin's Citadel Securities. The pieces start to come together when we see the bigger picture. A crackdown on the cryptocurrency industry led by Gary Gensler, the head of the SEC, raises eyebrows. Gensler's previous affiliation with Goldman Sachs, a major player on Wall Street, suggests a conflict of interest. It appears that Wall Street is orchestrating a deliberate attack on its major competitors, such as Coinbase and Binance, while simultaneously preparing to launch its own cryptocurrency exchange.

The entry of Wall Street into Bitcoin is not a coincidence. It is a meticulously planned move to manipulate the markets for their benefit. Institutions like JPMorgan and BlackRock are experts in market manipulation, and their involvement in Bitcoin will undoubtedly affect its price. 

However, we must understand that inviting Wall Street into the cryptocurrency space comes with risks. They have a history of dismissing Bitcoin as a scam, and suddenly they are interested in Bitcoin. The agenda is clear; they aim to gain control over it and take surveillance to the next level. We can expect them to push for code changes in Bitcoin to exercise control, which organizations like Greenpeace have already discussed.

While the influx of ETF applications may seem exciting for regular consumers wanting to invest in Bitcoin, it comes at the cost of relinquishing the uniqueness of Bitcoin itself. Owning Bitcoin through Wall Street-backed ETFs means giving up control over your assets. The hope that these institutions will hold and redeem your Bitcoin in the future is not the vision that attracted many people to Bitcoin in the first place. If you genuinely believe in the principles of Bitcoin, buying and holding your own Bitcoin is crucial, securely stored in your personal wallet. Wall Street cannot be trusted with your financial sovereignty.


Image source: Wall Street Mojo

How Wall Street Can Potentially Harm Cryptocurrency

To understand how Wall Street can negatively impact cryptocurrency, let's delve into a concept called hypothecation. In simpler terms, hypothecation occurs when a company or firm pledges its equity shares as collateral to a lender. Here's an example to illustrate this: Imagine Company A needs $5 million, and Broker B agrees to lend them the money. In return, Company A offers $5 million worth of their securities as collateral to Broker B. This type of arrangement is known as hypothecation.

Now, here's where the potential problem arises. Rehypothecation comes into play when Broker B, the lender, reuses the assets received from Company A as collateral for their business activities. This practice allows Broker B to utilize the assets as a security for their transactions. In the traditional financial world, rehypothecation is relatively straightforward due to a few reasons.

Firstly, shares in the traditional financial system are not physically settled; ownership certificates represent them. This characteristic makes transferring ownership as an 'IOU' simple without physically moving the shares. Secondly, accounting and tax regulations permit the same asset to be attributed to different parties as long as each party records a distinct amount of debt on their balance sheets. However, this flexibility granted to banks and brokers increases the risk associated with counterparties involved in such a system.

Cryptocurrency, like Bitcoin and Ethereum, operates on decentralized networks that rely on blockchain technology. These digital currencies are not governed by centralized authorities like banks or governments. The underlying technology ensures transparency and trust in transactions by recording them on a shared, immutable ledger.

However, when Wall Street, with its established practices and financial mechanisms, enters the realm of cryptocurrency, it introduces potential threats. The concept of hypothecation and rehypothecation, which are prevalent in traditional finance, can pose risks to the stability and integrity of cryptocurrency.

One significant concern is the possibility of multiple parties claiming ownership of the same digital asset. Unlike traditional shares represented by certificates, cryptocurrency ownership is recorded and verified through complex cryptographic algorithms. If a broker were to hypothecate or rehypothecate digital assets without proper mechanisms in place, it could result in conflicting claims and disputes over ownership.

Moreover, the transparency and decentralization that define cryptocurrency could be compromised. Rehypothecation often involves leveraging assets for additional borrowing, which can introduce systemic risk and potentially lead to market manipulation. This practice could undermine the principles of fairness and equal opportunity that many proponents of cryptocurrency value.

The risk of counterparty failure increases with rehypothecation. In the traditional financial system, where banks and brokers hypothecate, and rehypothecate assets, the complexity of transactions and the interdependency among market participants heighten the risk of a domino effect if one party defaults. Such failures can have far-reaching consequences, including financial instability and loss of investor confidence.

The Implication Of Rehypothecation For The Crypto Industry 

There's an important issue to consider when discussing cryptocurrencies like Bitcoin. Many of these digital currencies claim to have a system that ensures their security and reliability, such as a proof-of-work (PoW) or proof-of-stake (PoS) mechanism. However, these cryptocurrencies are often traded on centralized exchanges despite these claims.

Let's delve deeper into the problem. Imagine a scenario where a Bitcoin is rehypothecated multiple times as brokers and exchanges trade debt and collateral. In such a situation, who gets to claim ownership if there's a need for it? Who indeed possesses the cryptocurrency at the end of the day when multiple parties know the private key, or worse when no one does?

Cryptocurrency enthusiasts strongly believe in the idea that if you don't have control over your private key, you don't have control over your crypto assets. This means that if you don't directly manage and secure your private key, you can't truly claim ownership of your cryptocurrency.

Now, let's consider some potential problems that can arise. What if a broker goes bankrupt, and someone needs to be compensated? Or what if a hard fork happens, and someone needs to participate by voting with their stake in the cryptocurrency? In such cases, determining the rightful owner of the Bitcoin becomes exceptionally complicated due to the long chain of transactions involved. It becomes unclear who should be considered the valid owner, and this uncertainty creates a significant challenge.

Moreover, the current transient ownership model, where cryptocurrency ownership changes hands frequently, simply doesn't work well for assets recorded on a ledger. This flawed model can lead to multiple parties expecting compensation simultaneously, creating a chaotic situation. The risk of a complete breakdown in this scenario is alarming and could have devastating consequences.

One empirical example of the catastrophic consequence of rehypothecation in the crypto industry was the lucrative Grayscale Bitcoin Trust (GBTC) “premium arbitrage,” which led to the demise of 3AC, Genesis, and Grayscale. Rehypothecation generated credit from assets and allowed multiple transactions to be collateralized by the same asset. This unstable chain of transactions supported by the same collateral was poorly understood and resulted in the collapse.


Image source: Hackernoon

Addressing these concerns and finding solutions to ensure the proper ownership and control of cryptocurrencies is crucial. The complex and convoluted nature of ownership in the current system poses significant risks that could undermine the stability and reliability of cryptocurrencies as a whole. Therefore, exploring alternative models and frameworks that can provide a more robust and secure ownership structure for digital assets is essential. By doing so, we can build a stronger foundation for the future of cryptocurrencies and protect investors from potential disasters.

Why Investors Are Eager For A Bitcoin ETF

The idea of a Bitcoin ETF has captured the imagination of cryptocurrency enthusiasts for a couple of important reasons. First, ETFs are built on a solid foundation of tangible assets, and second, they are seamlessly integrated into the traditional financial market through brokers. If a Bitcoin ETF were to become a reality, it would make Bitcoin much more accessible to everyday investors who may not have the patience or technical know-how to buy Bitcoin on cryptocurrency exchanges or manage a blockchain wallet. In simple terms, a Bitcoin ETF could be the key to achieving widespread adoption of Bitcoin.

The hope for a Bitcoin ETF received a glimmer of optimism in October 2021 with the launch of the ProShares Bitcoin Strategy ETF (BITO) on the New York Stock Exchange (NYSE). However, it's important to note that this particular ETF is not directly tied to Bitcoin itself. Instead, it tracks the Bitcoin futures contracts offered by the Chicago Mercantile Exchange (CME), which are essentially bets on the future price of Bitcoin.

On the other hand, ETF proposals directly linked to Bitcoin from various companies have either been outrightly rejected, as was the case with early Bitcoin investors Cameron Winklevoss and Tyler Winklevoss or are still awaiting approval from the U.S. Securities and Exchange Commission (SEC).

Although there are opportunities for profit in the cryptocurrency market, and the industry has experienced a surge in popularity in recent years, there remain numerous uncertainties surrounding the future relationship between cryptocurrency and Wall Street and its broader acceptance among the investing public.

Many investors believe that the influx of Wall Street money might lead to more regulation, oversight, and accountability in the crypto space, which could ultimately benefit users and investors.

In the end, the impact of Wall Street money on cryptocurrencies will depend on how regulators, policymakers, investors, and users find the right balance between risk and reward, trust and verification, centralization and decentralization, and innovation and stability.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

 

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Smart Cities Equal Total Control Of Civilization Don’t Take The Bait

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Smart Cities Equal Total Control Of Civilization. Don’t Take The Bait. 

As mentioned in a previous article, power companies in Texas automatically raised the temperature of so-called smart thermostats in thousands of homes to help save energy during a heat wave in June 2021. Most people had no idea that their home temperature had been raised nor that the power company's ability to do this was outlined in the fine print of their contracts. 

If what the Texas citizens experienced sounds ominous, it’s just the tip of the iceberg of what the World Economic Forum (WEF) has planned with its smart cities. In this article, we’ll explore smart cities, including who invented them, where they're being rolled out, when they will be complete, and whether or not the WEF’s plans will succeed. 

What Is A Smart City?

The best definition comes from Wikipedia. It's lengthy but needs to be cited because it captures the full scope of smart cities.

 “A smart city is a technologically modern urban area that uses different types of electronic methods and sensors to collect specific data. The information gained from that data is used to manage assets, resources, and services efficiently; in return, that data is used to improve operations across the city. This includes data collected from citizens, devices, buildings, and assets that are processed and analyzed to monitor and manage traffic and transportation systems, power plants, utilities, water supply networks, waste, criminal investigations, information systems, schools, libraries, hospitals, and other community services. Smart cities are defined as smart both in the ways in which their governments harness technology as well as how they monitor, analyze, plan, and govern the city. In smart cities, the sharing of data is not limited to the city itself but also includes businesses, citizens, and other third parties.”

In short,  a smart city is where everything you do is tracked and managed by the government, including what you do at home. This is possible because almost every modern home appliance has internet connectivity, not just thermostats, but fridges, microwaves, TVs, cars, and even home entry systems are all connected these days. In other words, smart cities are the dictionary definition of a digital dystopia. 

Now it's important to note that smart cities and 15-minute cities are different. Although the two terms are used interchangeably, they're not the same, albeit related. Whereas smart cities involve tracking and managing everything you do, 15-minute cities explicitly limit where you can go. Moreover, the primary unelected and unaccountable entity pushing 15-minute cities is the C40 Cities Climate Leadership Group, whereas the primary unelected and unaccountable entity driving smart cities is the WEF. 

Who Brought Smart Cities To Light

The term smart cities had its roots in a marketing initiative called Smarter Cities by Tech Giant IBM in 2008. The enterprise has its roots in a 2008 speech by former IBM CEO Sam Palmisano titled “A Smarter Planet, The Next Leadership Agenda.” Sam's discourse on this topic can still be viewed on YouTube. 

Sam says a lot of the same stuff you hear today. There's turmoil in markets, supply chain issues, accelerating climate change, political tensions arising, an energy crisis, etc. Like today's elites, Sam saw these crises as a “unique opportunity to transform the world.” He talked about how digital and physical spaces are converging, how people demand change, and how this demand should be exploited to “change the game.” 

It sounds like the new normal and the great reset narratives we've heard from almost every government official worldwide since 2020. Today's difference is that the elites have the technology required to impose their will on the average person. The absence of such technology is why smart cities initially had difficulty getting off the ground. 

Amsterdam was the first to pursue a smart city initiative, and it quickly became a reference point for how smart cities should be set up worldwide. Interest in smart cities started to accelerate in the following years, with the European Union announcing a smart cities initiative in 2012 and Singapore following suit in 2014. 


Image source: Google Trends

The search trends for smart cities peaked when the United Kingdom and India announced their initiatives in 2015. 2015 was also the year when Google incorporated a company called Sidewalk Labs, whose purpose was to facilitate the development of smart cities worldwide. There was little coordination around the creation or governance of smart cities until that point.

It all changed on January 1st, 2016, when the United Nations announced its Sustainable Development Goals (SDGs). For context, the SDGs are 17 goals that are supposed to be met by all UN members, basically the whole world, by 2030. This is why you see the date 2030 everywhere. 


Image Source: un.org

The development of smart cities is part of the 11th SDG, which is to “make cities inclusive, safe, resilient and sustainable.” The Smart City Index was developed by the Singaporean University and a Swiss University in 2017 to measure how well smart cities meet these arbitrary goals. Not surprisingly, Singapore has replaced Amsterdam as the gold standard for smart cities.

Whereas Amsterdam's approach to smart cities was traffic management, Singapore's approach includes tracking whether people are littering or smoking in places they're not supposed to. Then in 2018, consulting firm McKinsey & Company published a lengthy report about smart cities. The firm found that “Cities can use Smart Technologies to improve some essential quality of life indicators by 10% – 30%. Numbers that translate into lives saved, fewer crime incidents, shorter commutes, a reduced health burden, and carbon emissions averted." 

The WEF’s G20 Global Smart Cities Alliance

Most institutions that were interested in smart cities after the SDGs were announced came from the public sector. This changed in 2019 when the World Economic Forum announced the G20 Global Smart Cities Alliance on Technology Governance. As per the WEF’s initiatives website, 

“The G20 Global Smart Cities Alliance unites municipal, regional, and national governments together with private-sector partners and urban residents to focus on a shared set of core guiding principles for the responsible use of smart city technologies.”

Moreover, 

“The Alliance partners with international organizations and city networks to source tried-and-tested policy approaches to these technologies. Our institutional partners represent more than 200,000 cities and local governments, companies, startups, research institutions, and civil society communities. The World Economic Forum serves as the Alliance's secretariat.”

In other words, the WEF will govern smart cities being developed. Did we vote for this? It’s important to note that this announcement came within two weeks after the WEF had announced a strategic partnership with the UN to ensure the SDGs were met. The WEF and its affiliates would provide the private sector coordination and funding as part of this partnership. 

The SDGs also include the development of digital IDs. Furthermore, the WEF and its affiliates used the pandemic to test digital IDs. Alongside this initiative, the WEF also began testing smart cities with the G20 Global Smart City Alliance. In November 2020, the alliance announced 36 so-called pioneer cities from 22 countries worldwide that would participate in a study to understand how the WEF can best govern smart cities. 

That same year, the WEF announced it would begin developing smart cities in Japan, Latin America, and India. If you're wondering why Japan is on the list, it’s because the G20 WEF Alliance was formed during Japan's G20 presidency. Japan's interest in smart cities comes from its own Society 5.0 initiative, which was announced in 2017. 

For many, the Society 5.0 initiative is a terrifying concept; as UNESCO describes it, “Japan’s new blueprint for a super-smart society, Society 5.0, is a more far-reaching concept than the Fourth Industrial Revolution, for it envisions completely transforming the Japanese way of life by blurring the frontier between cyberspace and the physical space.” Note that the Fourth Industrial Revolution is another initiative by the WEF.

The Pioneer City study concluded in July 2021, and the key findings were everything you'd expect. Almost no government accountability, almost no cybersecurity standards, and virtually no privacy. Very little accommodation for people who aren't plugged in and almost no transparency about data use. 

Despite these disastrous results, the WEF continues to work on the “governance” of over 80 smart cities being developed in Japan, Latin America, and India. In May 2022, the WEF announced, "The alliance is planning to launch more networks in Asia, the Middle East, and Africa.” 

One can even argue that the WEF used the pandemic to develop smart cities because the May update specifies that “The Global Smart Cities Alliance on Technology Governance is led by the Forum’s platform for Shaping the Future of Urban Transformation, established during the pandemic. 

Which Cities Will Convert?

Now, if you're wondering which cities will be converted into smart cities and controlled by the WEF, the short answer is all of them. This is simply because the UN's SDGs require all 193 member countries to introduce smart cities by 2030. As such, the only question is when cities will be under the WEF’s control. The goal is to turn every city into a smart city by 2030, but it looks like the WEF and its UN affiliates are rolling out smart cities, one region at a time. 

So right now, the WEF is working on Japan, Latin America, and India and will soon be working on Asia, the Middle East, and Africa. More to the point, except for Japan, the WEF is currently focused on building smart cities in developing countries. This is probably because populations in poorer countries are easier to control and because these populations are begging for some usable infrastructure. 

The most prominent smart cities initiative in a developing country appears to be the one from India mentioned earlier. The smart cities mission of 2015 sought to turn 100 cities across India into smart cities. An August 2021 update notes that Delhi and Nagaland have completed over 70% of their projects, making them the smartest cities to date. While another seven states – Rajasthan, Gujarat, Karnataka, Madhya Pradesh, Goa, Tripura, and Andhra Pradesh – have finished 50-60%. However, many other states/UTs are not performing well. Meghalaya has not completed even a single project.

It makes one wonder when the WEF will shift its smart cities focus to developed countries in places like North America and Europe. It will probably happen once the WEF has experimented enough on developing countries to know how to roll out smart cities without causing a full-scale revolution. That said, some countries in developed regions are not so subtly working with the WEF already. 

The largest smart cities initiative in a developed country comes from the European Union (EU). In September 2021, the EU announced its 100 climate-neutral and smart cities by 2013 mission. In April 2022, the complete list of participating cities was revealed. It’s worth mentioning that the EU’s list doesn't only include major cities; it also includes smaller towns and regions of only 100,000 people. It raises the argument that many may have only signed on because the EU will give €360 million to participants. 

According to the McKinsey report, the smartest cities in Europe in 2018 were Stockholm, Amsterdam, and Copenhagen. The same report notes that New York City, San Francisco, and Chicago were the smartest cities in the United States in 2018. 


Screenshot source: McKinsey report

According to the Smart Cities Index, the smartest cities in 2021 were Singapore, Oslo, and Zurich. The only issue they had was housing. However, this is not the only issue associated with smart cities, and the evidence so far suggests the WEF’s mission will fail. 

A WEF Victory Hangs In The Balance

Believe it or not, the most significant pushback to the WEF smart cities has come from individuals and institutions aligned with the WEF on most other issues. This is because of the use of smart city data for criminal investigations, which you'll recall was highlighted in the Wikipedia definition above. 

These critics have pointed out that smart city data tends to result in the over-policing of specific groups, which goes against the equitable principles of the smart cities concept. This is a bigger deal than you think because the primary benefit of smart cities is crime reduction, at least according to McKinsey. The 2018 smart cities report states, “Incidents of assault, robbery, burglary, and auto theft could be lowered by 30% to 40%.” 

On top of these metrics are the invaluable benefits of giving residents freedom of movement and peace of mind. This is the largest chunk of the overall benefit. Otherwise, pro-WEF critics are also concerned about sharing personally identifiable data. Remember Google's smart city subsidiary, Sidewalk Labs? Their first project was a smart city in Toronto, Canada. The project was shut down in early 2020 after the privacy commissioner resigned in protest. It happened around the time that the average Indian citizen started to become skeptical of the country's smart cities mission. 

By 2020 all the 100 cities selected were supposed to be smart cities. However, only a handful have met the necessary criteria, and there continued to be headlines about delays and corruption. In 2021, some public sector institutions started to oppose smart cities, with Yale University publishing an article titled “Why the Luster on Once Vaunted Smart Cities Is Fading.” The article explains how cities built from scratch to be smart have failed and have been a waste of time and money.  

At the same time, other public sector institutions started to study why smart cities were failing so miserably. Lo and behold, most of these studies focused on the fact that smart cities are at odds with the ambitious social justice goals many smart city types support even more. 

It's not just the public sector either; institutions in the private sector are starting to realize that the cost of rolling out the surveillance infrastructure required is not worth the estimated gains, especially if personally identifiable data can't be sold. Without the private sector on board, smart cities will fail. 


Source: Youtube

One of the best articles yet about the failure of smart cities is titled “Why smart cities aren't the future.” It was published in December 2022 by journalist David Sax, who wrote a book about why smart cities suck, citing, “As many smart city solutions fail to live up to the hype, here’s why the future could rest in analog innovations, not technological ones.”

David refers to Burcu Baykurt, who teaches urban futures and communications at the University of Massachusetts and is the author of the forthcoming book titled  “The City as Data Machine,” which is currently under embargo till April 2024. 

She looks at the legacy of a smart city project Google and Cisco attempted in Kansas City, starting back in 2016, stating that the plan was to attempt a test bed downtown, using sensors, advanced cameras, public Wi-Fi networks, and digital kiosks to connect all sorts of city services and improve them for the mostly poorer Black and Latino residents of the area. The data would reveal gaps in parking, transportation, and policing, which would lead to quicker and better solutions by city staff.

In other words, it was supposed to be the textbook smart city, but here's what actually happened; Burku Baykurt concluded,

”To be honest, it doesn't change much. The hype mobilizes a lot of people. There seems to be change going on. Breathless proclamations are made. Articles are written. Politicians take photos with executives. But in the end, the data is just that: lots of data. And in the Kansas City case, the solutions proposed from that data were so impractical and disconnected from reality (driverless cars and drones rather than buses and more police patrols) that the project quietly died after a few years.”

David ends his article with a fantastic quote, which just so happens to touch on the primary issues that continue to plague the smartest of smart cities, 

“The future of cities lies not in making cities obsolete by upending them through digital utopianism but in doubling down on the analog things that have always made cities great: housing opportunities, economic and cultural diversity, vibrant public spaces, a mishmash of humanity.”

Why Smart Cities Will Fail

In sum, the WEF’s smart cities will fail because they can't appease their ideological allies and cannot coordinate the creation of smart cities from the top down. Never mind that the average person doesn't want to live in a dystopian smart city that the WEF governs. However, this doesn't mean that the folk at the WEF aren't going to try. 

This article about how to resist the great reset explains that the WEF is trying to take control of cities, states, and governments using its network of 10,000 young global leaders and shapers who are being maneuvered into positions of power. 

So be on the lookout for these individuals, as well as any institutions they are associated with. They'll be easy to spot because they will be the ones pushing for digital ID, CBDCs, online censorship, carbon credit scores, smart cities, and all the other UN SDGs the WEF is trying to implement. Also, note that ESG criteria are synonymous with SDG criteria. 

All this information can be overwhelming, so here’s a short video to lighten the mood and have a bit of a laugh. 

As the old saying goes, “Don't be scared, be prepared.” What prepared means varies from person to person, but an excellent first step is being informed. A good second step is telling others who are willing to listen. After that, the rest is up to you. 

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

 

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Crazy Battle between Securities and Commodity Hangs Crypto in a Regulatory Limbo

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Crazy Battle between Securities and Commodity Hangs Crypto in a Regulatory Limbo 

Welcome to the fascinating world of cryptocurrencies, where digital assets have emerged as a disruptive force within the financial ecosystem. However, navigating the regulatory landscape surrounding these innovative forms of currency can be a bewildering experience. Despite their name, regulatory bodies like the Internal Revenue Service (IRS) do not recognize cryptocurrencies as currencies. Instead, they are often categorized as property, which has significant implications for taxation.

Simultaneously, the Securities and Exchange Commission (SEC) has raised concerns about initial coin offerings (ICOs) and their potential classification as securities. This has led to discussions around registration requirements and investor protections in the realm of cryptocurrencies. As a result, the emergence of cryptocurrencies has not only challenged traditional definitions and classifications of commodity and currency but has also blurred the lines between traditional financial instruments and these new digital assets.

Whether you are an investor looking to navigate the legal complexities of the crypto space or simply curious about the evolving nature of digital assets, this article aims to unravel the intricacies of the crypto landscape and shed light on how cryptocurrencies fit into existing regulatory frameworks. By exploring the classifications of cryptocurrencies as securities and commodities, we hope to provide you with a deeper understanding of their implications and the broader impact on the financial world.

Understanding Traditional Assets

To navigate the complex world of assets, it is essential to grasp the classifications established by regulatory agencies like the IRS, CFTC, and SEC for tax and regulatory purposes. While some definitions rely on legal precedents, such as the renowned Howey Test for securities, others may vary across regulatory bodies. Nonetheless, gaining a fundamental understanding of traditional assets is crucial before delving into the cryptocurrency spectrum.

There are three primary categories into which financial assets are typically grouped:

1. Real Estate:
Real estate, as a category of traditional assets, encompasses the land and any structures or improvements attached to it. This includes residential homes, commercial buildings, factories, warehouses, and even natural resources like minerals or water rights associated with the land. Real estate encompasses the tangible, physical properties and resources tied to a specific location.

When purchasing real property, certain fees and additional expenses contribute to the overall cost basis of the property. Specific rules and deductions apply to your taxes when dealing with real estate. By understanding the intricacies of real estate, including the costs involved in property transactions and the tax implications of property ownership, individuals can make informed decisions when buying, selling, or investing in real estate assets.

2. Securities:
Securities are financial instruments that represent ownership or a stake in a company or entity. They include familiar assets like stocks, bonds, and derivatives. The Securities and Exchange Commission (SEC) is the regulatory body overseeing securities in the United States. To shed some light on the legal aspect, in a significant court case called SEC v W. J. Howey Co. in 1946, U.S. securities law defined securities as "investment contracts."

In simple terms, when someone invests in a security, they expect to profit solely from the efforts of the issuer or a third party involved. These profits can come from selling the security at a higher price, receiving dividends, or earning interest. This landmark case established the "Howey test." It was utilized in various SEC enforcement cases, including disputes involving tokens like Ripple's XRP and the creators of NBA Top Shot, a digital marketplace for sports collectibles known as non-fungible tokens (NFTs).

3. Commodities:
Commodities refer to physical goods traded in large quantities on specialized exchanges. They can include agricultural products like corn and wheat and precious metals like gold and silver. Their current market price typically determines the value of commodities. The Commodity Futures Trading Commission (CFTC) oversees certain aspects of commodities trading in the United States.

However, it's important to note that the CFTC's regulatory authority primarily covers wrongdoing related to commodities futures trading rather than spot trading, which involves immediate transactions of physical goods. Spot trading of commodities doesn't fall under the CFTC's direct jurisdiction like securities do under the SEC.

As the popularity of crypto assets continues to soar, questions arise regarding how these conventional asset categories apply to the growing realm of digital assets.

Cryptocurrencies challenge the traditional notions of physical-focused assets, prompting regulators to adapt their frameworks and policies to encompass these innovative financial instruments. Consequently, exploring the distinct characteristics and implications of digital assets within the context of existing asset classifications becomes imperative.


Image source: Crypto.news

Why the Classification of Cryptocurrencies Matters

To truly grasp the different categories that crypto-assets fall into and how it impacts their regulation, it's essential to understand the meaning behind the Howey Test. The Howey Test has emerged as a widely respected method to classify these assets, and it does so by posing these fundamental questions:

1. Is money being invested?
2. Is there an expectation of earning a profit from the investment?
3. Does the investment involve a common enterprise?
4. Are profits generated through the efforts of others?

If a cryptocurrency meets all four criteria outlined in the Howey Test, it is considered a security. This means that promoters are actively marketing these tokens, while investors anticipate earning profits primarily through the efforts of others. SEC Chair Gary Gensler emphasized this point in a statement on September 8, emphasizing the prevalence of token sales where the public expects profits based on the actions of others. By understanding these criteria, individuals can gain insights into how crypto-assets are classified and regulated under the Howey Test.

If a cryptocurrency is classified as a security, it means that the issuers and exchanges of that cryptocurrency must obtain licenses from securities regulators. However, getting these licenses can be pretty challenging, which is why the crypto industry puts a lot of effort into ensuring that their cryptocurrency sales and projects comply with securities laws.

Issuers try to avoid violating securities regulations by focusing on decentralization. If a cryptocurrency is developed in a way that doesn't have a central group driving up its value, it becomes less likely to be seen as security by regulators. This is why decentralized finance (DeFi) projects work towards decentralizing their development efforts and splitting governance through decentralized autonomous organizations (DAOs). 

They also utilize mechanisms like proof-of-stake as a consensus mechanism. The argument behind this approach is that if people are both investors and actively participate in the project's growth, such as by staking the coin or voting in DAO decisions, they are no longer solely reliant on a third party to generate returns, as required by the Howey test.

The risk of classifying cryptocurrencies as securities is that exchanges may choose not to list them to avoid being fined by the Securities and Exchange Commission (SEC) for trading unregistered securities. Cryptocurrencies may face state-specific rules and regulations. For instance, the New York Attorney General filed a lawsuit against KuCoin, and multiple state regulators have teamed up to target a coin featuring Elon Musk's image called TruthGPT Coin. These cases highlight the potential legal complications that can arise.

The SEC has provided guidance on initial coin offerings (ICOs) and digital assets. In their framework for the investment contract analysis of digital assets, the SEC emphasized factors such as the speculative nature of many ICOs and their lack of utility as payment or store of value, which could lead to these coins being classified as securities. Kik, an ICO project, faced legal consequences when its CEO said buying its tokens would result in significant profits. The SEC sued Kik, and the company was fined $5 million, nearly pushing them to bankruptcy.

Conversely, the Commodity Futures Trading Commission (CFTC) argues that cryptocurrencies like Bitcoin and Ether are commodities and can be regulated under the Commodity Exchange Act (CEA). The CFTC's rationale is based on the fact that cryptocurrencies like Bitcoin are interchangeable on exchanges, just like sacks of corn of the same grade have the same value. This determination was reinforced in the CFTC's case against Bitfinex, a crypto exchange, and Tether, a stablecoin issuer, where the agency stated that digital assets like Bitcoin, Ether, Litecoin, and Tether are all commodities.

Determining whether cryptocurrencies fall under the classification of securities or commodities has significant implications for their regulation. It affects licensing requirements, listing on exchanges, compliance with securities laws, and potential legal consequences. These classifications shape the regulatory landscape and play a vital role in how cryptocurrencies are treated within the financial ecosystem.


Image credit: Markethive.com

Where Things Stand in The Ongoing Regulatory Debate

The regulatory landscape for cryptocurrencies is constantly evolving, and it's challenging to predict how it will look in the future. Various stakeholders and factors are involved, making it a complex situation. In the United States, Congress has made efforts to grant the Commodity Futures Trading Commission (CFTC) broader authority to regulate the spot trading of non-securities tokens. Among these tokens, Bitcoin is currently the only one that both agencies, the CFTC and the Securities and Exchange Commission (SEC), openly agree on its classification.

One possible outcome of this ongoing debate is that specific cryptocurrencies may be classified as securities while others are treated as commodities. This would create an even more intricate regulatory landscape where different cryptocurrencies are subject to different rules and regulations.

Alternatively, lawmakers could establish crypto as its distinct asset class, introducing tailored regulations specifically for cryptocurrencies. This approach is largely followed by the European Union, which has implemented the Markets in Crypto Assets (MiCA) regulation. MiCA outlines steps that crypto issuers, wallet providers, and exchanges must follow to protect consumers and ensure fair trading.

However, even with these regulations in place, there may still be some legal areas that need to be addressed on a case-by-case basis. For example, determining whether a particular series of non-fungible tokens (NFTs) must adhere to specific rules. As the discussions continue and regulatory bodies navigate the complexities of cryptocurrencies, it remains a dynamic and evolving landscape with ongoing developments that will shape the future of crypto regulation.

Controversial Guidelines on How Cryptocurrencies Are Classified

The classification of cryptocurrencies has been a contentious issue, with different U.S. regulatory agencies offering their own definitions. The Securities and Exchange Commission (SEC) labeled cryptocurrencies as securities, considering them investment assets that generate returns. This categorization was based on federal security laws and the belief that anything traded on an exchange qualifies as a security, including cryptocurrencies.

However, the Commodity Futures Trading Commission (CFTC) took a different approach. Following a court ruling.pdf, the CFTC gained the authority to regulate digital currencies as commodities, treating them similarly to products like coffee and oil.

Additionally, the Internal Revenue Service (IRS) defined cryptocurrencies as taxable property for federal tax purposes, adding another layer to the classification debate.

Two other agencies, the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), also provided their guidelines. OFAC considered digital currency on par with fiat currency, while FinCEN categorized cryptocurrencies as a form of money. These distinctions diverged from other agencies' commodities, property, or asset classifications.

These conflicting definitions within the same government highlight the challenge businesses face in legally classifying cryptocurrencies. However, efforts have been made to bring more clarity. For example, the SEC clarified that it does not consider Ethereum and Bitcoin securities but focuses on Initial Coin Offerings (ICOs). While there is an ongoing debate, this statement narrows the understanding of cryptocurrencies within the United States.

The different classifications can create confusion for businesses, which may struggle to understand which regulations apply to them. This confusion can lead to legal risks if companies fail to comply with the appropriate regulations. It can also discourage some businesses from entering the cryptocurrency market due to the uncertainty and complexity of regulations.

Moreover, the classification can impact innovation in the crypto industry. If a new cryptocurrency is classified as a security, it may deter innovation due to the stringent regulatory requirements. Conversely, if classified as a commodity, it may encourage development due to the relatively less strict regulations.

However, it's important to remember that the regulatory landscape for cryptocurrencies is still evolving, and changes may occur in the future that could affect crypto businesses. Therefore, it's crucial for companies to stay updated on the latest regulatory developments and seek legal advice to ensure compliance.

Classifying cryptocurrencies as securities or commodities is complex, with significant implications for investors and regulators. As the cryptocurrency market continues to evolve, it may be necessary to reevaluate and refine these classifications to reflect this asset class's unique nature accurately.

While the current classifications provide some clarity, they also highlight the need for a more nuanced regulatory framework to accommodate cryptocurrencies' distinctive characteristics. This is a challenge that regulators worldwide will need to address in the years to come.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.