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Bitcoin experts Joshua Henslee, Jackson Laskey, Zack Weiner, and Rafa Jimenez discussed AI and its potential integration with blockchain technology in the latest CoinGeek RoundTable. As youll soon see, there are some extremely exciting possibilities ahead.

Introducing the Roundtable participants

Joshua Henslee probably needs no introduction to regular CoinGeek readers. Hes a BSV thought leader and developer with a fast-growing YouTube channel covering BSV. He has also created some BSV applications likeWindbell.

Jackson Laskey is the founder and CEO ofAsset Layera platform for creating NFTs as well as integrating and sharing them across platforms. He was one of the founding members of Unbounded Capital and has been in the BSV space for half a decade.

Zack Weiner is the founder of VXTech, the firm that built MagicDapp.io as well as many other applications. Weiner also recently launchedAskHapi.comto allow anyone to utilize AI via micropayments.

Rafa Jimenez is the CTO and co-founder ofHandCashone of the most popular wallets for BSV. He also has some background in AI, having worked in industries like autonomous driving and more.

How can AI integrate with blockchain technology?

Laskey tackles this question first, saying AI right now is all about taking old data and using it to create new data. He thinks blockchain can help get insight into the input data, helping us understand what that data is, where its from, and pay the rights holders. He points to the Haste Arcade Instant Leaderboard Payouts as an example of how people might be paid for their data.

Weiner agrees but takes a different approach to the question. Hes a big believer in the authenticity and integrity of data. He sees a world where AI models sign their outputs so that consumers can evaluate the outputs of specific models. This will grow increasingly important as AI models proliferate.

Jimenez says blockchain can help with the monetization of AI-powered services. Its an obvious use case fornano and micropaymentsas an alternative to subscription models. When users still arent sure how much value these services can provide, they may be reluctant to commit, and the type of small, casual payments Satoshi Nakamoto spoke about when he released Bitcoin can bridge the gap.

Whats the primary use case for AI that could integrate blockchain technology?

Laskey imagines a world where there are a handful of AI models that are general-purpose and truly dominant. However, were likely to see a wide proliferation of different models. This could pose a challenge for people who have to interact with many different models. The more models that proliferate, the more it will be necessary to have both data integrity, as mentioned previously by Weiner, and micropayment models, as mentioned by Jimenez.

Weiner says that, on AskHapi.com, there are two modalities: text and images. Focusing on imagery, five or six models are tailored to output a specific type of image, such as anime images, realistic ones, tiny photos, and so on. He sees a future where model creators utilize the blockchain to create business models to incentivize people to come and check out their models. Again, small, casual transactions come into play here. He points out that many people dont even havecredit cards, who wont be able to subscribe to things like ChatGPT, who will benefit from this.

Jimenez highlights that the marriage of these two technologies makes it much easier for developers to experiment, pulling together different elements both quickly and easily. This will lead to exponential adoption growth and many new opportunities. Jimenez doesnt think people fully grasp the impact all of this will have.

The participants agree that this technology will create new roles. For example, social media managers did not exist in the 1980s, but today, every company has one. Likewise, many new roles will be created by AI, such as sourcing data, cleaning it up, and figuring out where micropayments need to go to compensate the owners of said data. Being able to track the data to its origin is extremely valuable.

How are the roundtable guests integrating AI technology into their companies?

Laskey answers that Asset Layer, while a general-purpose NFT platform, has a specific love for games. He acknowledges that theres a lot more going into creating assets for games, and his firm has done so to generate items inDuro Dogs. Laskey says that, right now, the models need to be more precise to generate assets that plug directly into Duro Dogs; their internal artists still have to work on them. Overall, he says AI has accelerated their process.

Weiner doesnt think AI has a place in Magic Dapp just yet. For him, this is about people and companies being able to store data in a provable way forever. However, he thinks AI becomes relevant for applications like BitChat Nitro, which now has a personality inside it that can answer questions relevant to smart contracts built on Bitcoin SV. He sees a great business opportunity in this; training specific AI models closer to truthiness.

Jimenez says HandCash is not integratingAI broadly in its business. Theyre focused on helping people experiment and understand they have a monetization alternative. Answering a viewer question, he agrees that logging in with HandCash could be equivalent to logging into apps with their own AI API key.

Is it possible that in the future, every AI query, update, etc., will be mapped to a Bitcoin transaction?

Henslee tackles this question first. He says the answer to the viewers question is that it can be done trivially. You can take inputs, hash them, put them on-chain, and allow someone to prove they created specific prompts. While it can be done, there has to be a business use case for it.

Weiner says that the number of transactions required to do this will certainly need a big block blockchain. However, he says its probably a bit soon to consider doing this right now.

Should AI have mandatory pay channels so it doesnt go full SkyNet?

Jimenez answers that whether AI needs some regulations or control is a hot topic and is extremely complex. However, bad guys dont care about the rules, and they wont be able to stop them.

Laskey wonders what an AI that escapes its black box could do. Theres this concept that a superintelligence could take over the world, but hes skeptical.

Henslee does think there needs to be some control. He notes that there are good and bad in every tool. He worries it could become the all-seeing big brother.

Weiner notes there are two ways an AI can refuse to answer a question; it can be polite, and it can be rude and brash if you push it, too. He thinks the technology will progress faster than checks and balances can be put in place. Therefore, it will be up to the consumer to decide who to pay and fund via subscriptions and payments.

Check out the previous Roundtable videos on CoinGeeks YouTube channel.

New to Bitcoin? Check out CoinGeeksBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.

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Bitcoin experts discuss AI, ChatGPT and Blockchain on CoinGeek ... - CoinGeek

Signature Bank is again in the news a week after the New York State Department of Financial Services (NYDFS) shut down the bank in order to prevent a domino effect from Silicon Valley Bank's implosion last March 9.

The NYDFS initially shut down the bank as part of a preventive measure in order to protect depositors and ensure that customers get their deposits back. The next step was the United States Federal Deposit Insurance Corporation (FDIC) announcement yesterday March 19 that Signature Bank's deposits and loans will be taken over by Michigan-based Flagstar Bank. The agreement will see $38.4 billion worth of deposits and $12.9 billion in loans taken over by Flagstar.

This seems to be part of a bigger plan to combat the banking crisis that seems to be looming over the United States and prevent its further escalation. It might be recalled that a recent economic analysis on the Silicon Valley Bank (SVB) collapse said that as much as 186 banks in the US are at risk of insolvency. The Federal Reserve then announced a swap line network with the central banks of Japan, England, Canada, Switzerland, as well as the European Central Bank. How this all might unfold is still up for speculation. SVB's collapse caused a ripple effect in the crypto industry, while in the traditional financial sector, this effect was most notable in Switzerland, with the impact felt on Credit Suisse.

As for whether cryptocurrency deposits will be affected, the FDIC has clarified that the deal does not include Signature's digital asset deposits. Previously, the agency has also stated that the decision for Signature's closure was not in any way related to cryptocurrency. But it should be noted that Signature, as well as SVB and Silvergate were among the top banks providing services to the crypto sector. Whatever the FDIC's motives are for Signature's closure and whether it will eventually include crypto deposits or not, the whole debacle just might point to a more optimistic view of cryptocurrency as an alternative to the traditional banking system, helmed as it is by the United States.

The relationship between banking regulation and crypto firms has been a subject of contention for some time now. Fiduciary policies have often been at odds with the decentralization and freedom that cryptocurrencies promise. While many crypto firms have sought to distance themselves from traditional banks, others have increasingly embraced banking services, leading to accusations of a "sellout" within the crypto community.

Historically, there has been an antagonistic relationship between crypto and banks, dating back to the inception of Bitcoin. Satoshi Nakamoto, the pseudonymous creator of Bitcoin, inscribed a message on the genesis block, referencing the UK Chancellor's bailout for banks: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."

This message itself underscores the distrust of centralized financial institutions and the need for a decentralized alternative. As more crypto firms partner with banks or even become part of the banking system themselves, there is a growing concern that the original vision of cryptocurrencies is being compromised. By aligning with banks, these firms risk undermining the very principles that made cryptocurrencies attractive in the first place: decentralization, financial autonomy, and resistance to censorship.

On the other hand, proponents of these partnerships argue that the integration of crypto services into the traditional financial sector is necessary for mass adoption and mainstream acceptance. They maintain that a balance can be struck between the regulatory demands of banking authorities and the unique features of cryptocurrencies.

Disclaimer: 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. Opinions stated herein are solely of the author's, and hence do not represent or reflect CryptoDaily's position on the matter. The author has no stakes in any of the digital assets and securities mentioned, and does not have any significant hold of own any cryptocurrency or token discussed.

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Flagstar to Take Over Signature Bank's Deposits - Crypto Daily

The collapse of Silicon Valley Bank (SVB) last week raises serious issues far more significant than the obvious ones cited by the financial press and a broad range of Washington politicians.

Chief among these are bank loans against dubious assets. That's not getting much if any attention in the news or from Washington and is likely to soon be swept under the rug, allowing needlessly risky banking practices to continue.

Before its collapse last week, SVB made loans against Bitcoin and other cryptocurrencies.

The question: why is any bank anywhere allowed to accept crypto as collateral for loans?

Bitcoin and its imitators are not money. They are not currency. They're hardly used to buy and sell, an unsurprising fact given that by design the Bitcoin system canprocess only seven transactions per secondcompared to many thousands of transactions per second for credit cards.

Indeed, except for laundering proceeds from drug trafficking as well as hiding assets from creditors, estranged spouses, and the tax police, cryptocurrencies have no use.

High-tech Ponzi Scheme

Cryptocurrencies and their cousins, Non-Fungible Tokens or NFTsare just a high-tech Ponzi scheme. Instead ofCharlie PonziorBernie Madoffpersonally running the con, the crypto scam relies on decentralized computer blockchain and "mining" of mathematical solutions.

Bitcoin's supposed inventor, who went by the pseudonym Satoshi Nakamoto, hasnever been identified. He or she has since vanished, leaving holders with a digital string worth only as much as the next fool, or crook, will pay for this imaginary asset.

Early participants in Ponzi schemes profit mightily if they cash out while the gullible souls who get sucked in later wipe out. That is what happened to SVB, America's 16thlargest bank, which was big on crypto loans.

Many Bitcoin "investors" have already been wiped out as the "market cap" of Bitcoin plummeted from nearly $1.3 trillion in 2021 to about $389 billion on Friday,down almost 70%.

Why do banking regulators allow our federally insured and regulated banks to make loans using magic internet money as collateral? That's a crazy policy, no different than allowing banks to accept buckets of ice cubes in winter as collateral, even though they melt come spring and evaporate in summer

Silicon Valley Bank is just one of many federally insured financial institutions that accept crypto currency as collateral for loans. Some banks will loan you 90% of the seemingly value of your crypto, though 50% loan-to-value is more common and that appears to be the standard at SVB based on its web pages.

Zero Interest Crypto Loans

All sorts of financial news outlets offer advice on borrowing against crypto. These includeNerdWallet, and the increasingly nave and unreliableForbes.People with crypto can evenborrow at zero interest. Gadzooks!

For a sober look at the big risks of crypto loans readInvestopedia's essay.

In the wake of the second largest bank failure in history, you should be deeply concerned that for more than four decades we have failed miserably at regulating banks. That history contrasts with the period from 1935 until voters abandoned the moderating and successful New Deal banking rules in favor ofReaganomics.

We took a wrong turn when theprudent New Deal banking regulationsin effect from 1935 were killed by Reaganomics, which re-regulated banks to reduce regulations and increase the risk of financial institutions failing. (There is no such thing asderegulation, only new regulation, which in our time on terms typically means regulations favoring corporations, including banks, over customers, financial prudence, and public safety.)

Congress's Role

What we need now are Congressional hearings to examine the reasons that cryptocurrencies can be collateral for bank loans.

Contactthe White Housein writing via the hypertext link or call 202-456-1111 to demand a ban on crypto as loan collateral. Call 202-456-1111.

Even if you don't own Bitcoin or its growing list of alternatives this story matters to you for multiple reasons.

Your money is only insured up to $250,000. Any money above that isn't insured. That means if you're a trustee of a nonprofit, for example, and it's got $1 million in the bank you or the organization you help lead is at risk of being wiped out in a bank failure.

The federal government is covering all deposits for SVB and atSignature Bank in New York, which failed Sunday. But that doesn't mean it always will. During an earlier banking crisis nonprofits with more than the guarantee then in effect of $100,000 lost their deposits above that sum, which got very little news coverage at the time.

If people want to buy crypto, they should be free to do so. But they should not be allowed to put our bank deposits and investments at risk by using these digital tokens as collateral for loans. After all, it's your, and my bank deposits, along with those of businesses, nonprofits, and our governments that the banks use to make loans, so it's not like we don't have a deep interest in blocking crypto of any kind as collateral for loans.

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How Bitcoin and other magic internet money loans endanger your ... - Salon

Its the ugliest banking crisis since 2008

Over the last eight days, three U.S. banks have collapsed.

Last Wednesday, Silvergate Bank which had major ties to crypto said it was shutting its doors. This helped trigger fatal banks runs at Silicon Valley Bank (SVB) and Signature Bank.

And even though the Fed stepped in to guarantee deposits, panic has rippled through the regional banking sector.

The chart below shows the iShares Regional Bank ETF (IAT), which tracks the performance of 37 U.S. regional bank stocks.

Its plunged 43% since the start of the month.

Investors are worried the folks running these banks did the same dumb things their colleagues at SVB and Signature Bank did by taking risks with customer deposits.

And yesterday, shares in the worlds seventh-largest investment bank, Credit Suisse, plunged 24%.

This came after management at the Switzerland-based bank admitted it had found weakness in its financial reporting.

But while banks are buckling, bitcoin has been on a tear.

It soared 20% versus the dollar over the past week. And our crypto expert Teeka Tiwari says it will be a huge beneficiary of this turmoil.

As youll see below, he expects bitcoin to go much higher but hes far from bullish on the broader crypto market. Thats because of an unprecedented crypto panic he sees coming.

Ill get into that in a moment. First, its important to remember bitcoins origin story

January 3, 2009, to be precise.

Thats four months after Lehman Brothers collapsed and the eye of the storm of the global financial crisis.

As youll recall, Wall Street banks loaded up on mortgage debt that went sour. This blew massive holes through their balance sheets. And it led to bank collapses in the U.S. and around the world.

Thats when an anonymous developer called Satoshi Nakamoto released the Genesis Block.

Its the original block, or group of transactions, on the bitcoin blockchain. And Satoshi left a message in its code

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

Its from a headline in the Times of London about the British governments bank bailouts. (The Chancellor of the Exchequer is Britains version of the Treasury Secretary in the U.S.)

Why did Satoshi leave this message in the bitcoin blockchain?

He wanted us to remember the inherent instability of the banking system and present bitcoin as an alternative.

Unlike fiat currencies such as the U.S. dollar, the euro, and the yen, it doesnt rely on a central bank to issue new currency units or referee payments.

Bitcoin also gets rid of the need for commercial banks to look after deposits and facilitate payments.

You can self-custody your bitcoin in a cryptographically secured wallet app on your phone. You can send and receive payments through your wallet, too. Theres no costly and potentially corrupt middleman involved.

This is a radical departure from the way the modern banking system works.

As the folks who banked with SVB and Signature Bank found over the weekend, having money in the bank is not what it sounds like.

Deposits sit on the liability side of a banks balance sheet. If you have $1,000 on deposit in the bank, you have an IOU from the bank for $1,000.

Banks only need to back a fraction of these IOUs with cash. As we saw over the weekend, if too many depositors come for their cash at once, it can trigger a collapse.

While all hell was breaking lose at SVB and Signature Bank, the bitcoin blockchain settled about 600,000 transactions worth about $33 billion.

And in line with its pre-programmed annual inflation rate of 1.8%, it issued 2,037 new bitcoins.

Nobody lost access to their bitcoins Nobody tried to call customer service and couldnt get through And no regulators had to be called in to back anyones bitcoin.

The network chugged along, without a hitch, through the crisis.

First, bitcoin is a relatively new technology. People are used to keeping their money in the bank. Many still dont trust what bitcoins detractors call magic internet money.

Also, cryptocurrency is famous for its bone-crunching volatility.

You may be able to access and spend your bitcoin, but you dont know what it will be worth in dollar terms tomorrow.

Bitcoin reached an all-time high of $67,617 in November 2021. Then it plunged 76% to $15,814 before rising 58% to $24,954.

But as Teeka has been showing his readers, its better than finding your savings have gone up in smoke because your bank did something dumb with your deposits.

As Teeka put it in a video he sent out to his subscribers

Yes, bitcoin is volatile. Yes, you may wake up one morning with bitcoin down 50%, 60%, 70% versus the dollar. But one, you hold it. Nobody can take it from you. And two, you know that, over time, bitcoin always comes back. You dont have that risk of losing all your capital, as you do if you put it in an unstable bank.

This is why bitcoin is blasting higher. And it will go higher from here. Right now, its above $25,000. I see $30,000 as a chip shot from here.

But thats bitcoin, the worlds most trusted cryptocurrency. Teeka warns that this is not the right time to buy into the broad crypto market

And if Teeka is right, it will be a doozy.

He says it will be the biggest crypto panic in the seven years since he first recommended bitcoin to his paid-up subscribers.

Whats going on is so important that Teeka put together a special update to address it.

Its called The Crypto Panic of 2023 and its free to attend next Wednesday, March 22, at 8 p.m. ET.

In this update, Teeka is set to explain exactly what will cause this panic and how you could turn $1,000 into an entire nest egg

So make sure to automatically RSVP.

Regards,

Chris LoweEditor, The Daily Cut

P.S. Youll also get access to a special video update from Teeka about the banking crisis and what it means for crypto. Check it out here.

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Bitcoin vs. the Banks - Legacy Research Group

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Bitcoin has become the most well-known currency around the globe as the popularity of Bitcoin has inspired many other developers to develop cryptocurrencies just like Bitcoin. None of them got as high as Bitcoin has become the largest market capitalization cryptocurrency in the world. It is nothing more than a form of currency that does not have any control over the government. The transactions of Bitcoin are recorded on an independent and decentralized base known as the blockchain. All the monetary transactions of Bitcoin are recorded and stored on the blockchain network, and it also provides security to transactions through cryptographic nodes. The currency was introduced in 2009, and whoever created Bitcoin is still anonymous. A name added by other cryptocurrency developers is satoshi nakamoto. But later, he left the project in between, and some of the other developers developed Bitcoin and introduced it to the public interest. In addition, if you are looking for a reliable trading platform, you can visit BITCOINPRIME.SOFTWARE.

Bitcoin attracts many new investors and traders to join the virtual market due to its uncertain hype and regular volatile prices. You cannot predict Bitcoin prices because it is highly flammable and not regulated by any regulatory authority. The absence of government authority makes Bitcoin transactions reliable, cost-efficient, time efficient, transparent and secure as the cases of cyber hacks and frauds are regularly coming to news headlines through centralized means. But till the present time, we do not have any complaints about Bitcoin fraud or cyber hacks. Bitcoin provides security that any traditional financial institutional security system cannot challenge. Bitcoin offers several advantages if it is accepted as a medium of exchange by businesses and companies. It will take time for Bitcoin to become legal tender as the currency is still new to the market.

The top attraction of Bitcoin

Privacy

You can use Bitcoin to transfer funds anonymously from one source to another without involving intermediaries or government bodies in monetary affairs. All the Bitcoin honors are provided with multiple public keys, usually the address of the Bitcoin wallet and the information needed to execute transactions to transfer Bitcoin from one account to another. Unlike credit and debit cards, they do not require complete information about the wallet owners common name, billing and address, which means they do not need any personal information about the wallet holder to transfer funds. The only thing required to receive payments from Bitcoin is a wallet address.

Decentralization

Due to Bitcoins decentralized nature, it does not allow the government to interfere in its monetary affairs. Also, some of us prefer to avoid 3rd party interference in economic matters to transfer funds from one server to another. Also, this is an excellent choice for people who are against the system and looking forward to extra privacy. In traditional payment systems, there is always a chance of information hacks and fraud due to the presence of financial records with banks and exchanges. Also, fraudulent transactions can occur with the name of traditional trades and institutions. However, Bitcoin is a decentralized body and does not allow this kind of fraudulent transaction to take place with the help of blockchain technology.

Bitcoin value

As we all know, Bitcoin has gained hype in the last few years and is continuously gaining advertising with increasing prices. Bitcoin can be chosen over other currencies as the best or excellent store of value. There is no government rule that you cannot convert Bitcoin into something different than feet currencies. There is complete control of your Bitcoin holdings in your hand.

Low transaction fees

Whether you are investing or using Bitcoin to make and receive payments, the transaction fees of Bitcoin transfers are relatively lower than a traditional transfer. And one of the biggest problems with centralized transfers is that it takes too long to transfer funds. Using Bitcoin can help you to transfer funds in around 10 minutes which is a relatively low time. The use of Bitcoin by small-scale businesses is beneficial because they pay high fees for minimum transfers. And this leads to an increase in companies costs of up to 10%.

Security

You cannot question Bitcoin security as it uses peer-to-peer transactions, meaning no 3rd parties are involved in completing payment transfers. Only the parties involved in payments are the receiver and payment maker. Every transaction of Bitcoin is recorded on an open distributed Ledger system known as blockchain with the security of cryptographic Nodes Once the transaction is recorded on a blockchain network, the transaction cannot be altered or changed manually without private keys.

Conclusion

These are some of the top attractions of Bitcoin that lures people to invest money in Bitcoin. Also, Bitcoin has high price volatility, which gives you the opportunity to earn maximum profit out of volatility. It is possible to make maximum profit in intraday trading without holding Bitcoin overnight. On the other hand, you must be aware of Bitcoins other drawbacks, like the prices can show a bearish trend, and within a few minutes, it concerns a bullish market. Get the required knowledge before investing your money in Bitcoin and other cryptocurrencies, as it can save you from bearing losses and maximize your profit on your investments.

This post was published on March 15, 2023 7:25 pm

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What is the attraction about Bitcoin? - Star of Mysore