The Dollar Vigilante: "My Official Withdrawal from the Bitcoin ATM Project"Submitted by barracuda_trader on Thu, 05/02/2013 - 06:28
Sometimes things don't always go to plan.
As background, a few months ago I was approached by two young entrepreneurs. They had purchased a semi-workable Bitcoin ATM off of another entrepreneur and were excited about the prospects and approached me to help with marketing to the public and prospective franchisees as well as garnering investment interest.
It was a verbal handshake I had done via Skype from the jungles of Guyana while looking at a gold mining enterprise. I then set off on a month-long media sojourn which had me in all the mainstream media promoting BitcoinATM and had been approached by numerous investors interested in the project.
I then went to San Diego last week to nail down the final specifics with the two young entrepreneurs and flew in my top financial advisor, a past CFO of numerous billion dollar companies who has done business for decades worldwide, and what we uncovered was that this was not going to be as simple as we had hoped.
Specifically, in the US and Europe, there are an incredible amount of banking, money and even telecommunications rules and regulations that would have to be adhered to if the company had any hope of survival. Not least of which was a $25 million "insurance bond" necessary as being deemed a "money transmitter" in the US.
Those who know me know that I despise all government regulation and taxation and see it as being economy destroying. However, to bring in investors, and having to adhere to even more agencies (securities law in the US) it was becoming to look insurmountable. The fascist system in the US has done its job. At threat of force (imprisonment) it had already laid out four agencies that were massive hurdles for putting a BitcoinATM in the US... and Europe, at the very least, almost impossible for a small organization.
I still hadn't given up hope and, as I always profess, I will fight oppression and control over the money, banking and financial system with everything I can.
BLESSING IN DISGUISE
And then the 23 year old entrepreneur, Evan Rose, who was half-owner of the BitcoinATM notified me a few days ago that my participation was no longer necessary.
That was interesting, I thought, as we had an agreement for my involvement and I had done everything I said I would do. It turned out that once I had put BitcoinATM on the world stage he decided to take all that I had done and dismiss me.
I do not wish to publish dirty laundry... and while the actions of the co-founders of BitcoinATM were incredibly dishonorable, I put it down it to them being much like me I was when I was 23... young, unwise and unaware of what they are even involved with.
But it is my belief that he has no idea what kind of business he is trying to get into and how hard it will be to do without a number of the right pieces in place.
OFFICIAL END OF MY INVOLVEMENT
As always, and very unlike Barack Obama, I am very transparent in everything I do so I do wish to announce publicly that I will no longer have any involvement with BitcoinATM.
After a day or two of pondering, however, I have realized that this may truly be a blessing in disguise. The biggest issue with BitcoinATM, and one that I have stated in the past many times, is that it is hardware. Any government, anywhere, can just come and take it away.
It was always the achilles heel of this product.
Can it succeed? Sure, under the right guidance and a massive amount of capital of lawyers to fight off every single country in which the machine is placed. And, even then, there is no guarantee. Just look at Canada which has already begun to shutter bank accounts of anyone even involved in a bitcoin exchange.
See -- http://business.financialpost.com/2013/04/27/bitcoin-canada-...
As I've also stated numerous times in the past few years, there is no real law. Those with the guns do what they want. And, those with the guns are backed by the major money controlling cartels (central banks and those who control them). They don't like a major distruption in their business.
Jeff Berwick BIO
Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.