Why don’t I own any Bitcoin?

Bitcoin is bananas. The surge in Bitcoin pricing has been a subject of a lot of conversations. Essentially, if you bought a Bitcoin (BTC) on January 1st 2017 for $1,000; today that BTC would be worth approximately $15,000.  That’s good reason for all the hype.

If you’ve been trying to get in on the action, there is only one problem, Wyoming doesn’t have friendly cryptocurrency regulation.  Since 2015, no one in Wyoming has been able to acquire any form of cryptocurrency. That is when the Wyoming Division of Banking changed its interpretation of the Wyoming Money Transmitter Act (a 2003 Bill).  This means that the state does not classify cryptocurrency as a currency, but as “permissible investments.” Bitcoin are still allowed in Wyoming, but they require the licensee to have a reserve of dollars equivalent to the amount invested.  A company that wants to transact with bitcoin needs to have a cash reserve, 2 times the value of the investment.

Coinbase is the most popular platform for buying and selling cryptocurrency. The company is valued at $1.6 billion. They allow users to transact with Bitcoin, Litecoin, and Ethereum. However, Coinbase suspended all Wyoming business in 2015 after this decision.

The Wyoming Blockchain Coalition is trying to fix this. They are devoted to educating Wyoming citizens about the power of this technology.  The group is lobbying for blockchain cryptocurrency amendments to bring bitcoin back to Wyoming. The Coalition has some great ideas as to how blockchain can help Wyoming ranchers and coal producers.

It’s tough to understand.  Below are points on the basics:

  • What is Bitcoin?
    • It is a digital cryptocurrency.  It was the first decentralized cryptocurrency.  It was created in 2009, as a response to the financial collapse.
  • Who created Bitcoin?
    • Satoshi Nakamoto created Bitcoin.  No one has ever met him in person.  That name is a pseudonym (or is it?)
  • What does Decentralized mean?
    • Decentralized means that there is no central banking system, like the US treasury department (a central bank).  The US Treasury has the ability to issue more dollars into the economy through banks.  Bitcoin has a finite amount of it’s currency.  There are around 12 million Bitcoin now and there will only be 21 million in total existence in the year 2140.  Much of this is the reason why the value of Bitcoin has surged, because no government treasury can add more bitcoin to the world.
  • What does Blockchain mean?
    • It’s a lot like a global spreadsheet.  It is a database or ledger that maintains a continuously growing list of transactions or data records.  Here is a video that can explain a bit more.
  • More Information from the Wyoming Blockchain Coalition
    • Current Valuations (Sunday December 10, 2017 at 11 am):
      • Gold: $40,220 per kilo ($1,251 per ounce)
      • Bitcoin: $15,725

(Images: Wyoming Blockchain Coalition, Alt Coin Mania, Coin Telegraph)

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