U.K. Energy price freeze. A proposed solution

 In a nutshell, rather than using tax cuts or energy subsidies or windfall taxes on energy companies to compensate for the massive increase in energy prices here is my alternative suggestion:

Firstly, I understand that almost 50% of the U.K.’s energy needs are supplied by renewables including wind power and 15% supplied by UK-based nuclear reactors. These sources of energy are UK based and owned mainly by private shareholders some of whom (wind farms?) may have received government subsidies. Along with energy imports these sources are now charging market prices for energy which has not increased in production cost! They will be charging up to 5 times the price at the beginning of 2022 without any matching production costs. Making perhaps 10 x net profits! 

Secondly, I would mention that whilst I am not normally in favour of price controls, there is no reason that these two sources of energy should be allowed to charge the full global market price which will soon be five times that at the beginning of this year. 

I am therefore suggesting that a price cap is immediately imposed on these two sources of energy rather than a windfall tax or any other subsidy provided to consumers and businesses. The price control limit/benchmark would be based upon the prevailing UK energy wholesale prices at the beginning of 2022. 

Otherwise , we will see over the next 2 to 3 years a potential massive transfer of wealth of up to around £200bn from millions of taxpayers to a very small number of investors who will all become millionaires and some billionaires! 

— These rewards are more appropriate for venture capitalists —  not for risk averse investors in steady earning and relatively risk free blue chip companies, ie renewable and nuclear energy producers. 

The energy price rise crisis is so desperate, that desperate measures as above are required. 

Why burden the UK government with massive amounts of debt and the UK taxpayer with massive amounts of future tax paying requirements to pay off any tax cuts and subsidies as are being proposed?  

Tax cuts will still be needed to help with the general UK cost-of-living crisis of course, but we should not be using these financial strategies to largely subsidise hugely profitable UK energy companies. 

it seems that almost every business that uses energy will be unable to continue and survive and consumers will still be unable to pay unless something dramatic is put in place. 

We have the answer:

— Price control of All UK energy suppliers, with even nationalisation considered or proposed if necessary. 

Lastly… 

The Times today:

“ Liz Truss is expected to make an announcement imminently about a support package to deal with rising energy bills, which is expected to include a price freeze that may *well cost more than the Covid furlough scheme.”

*By performing the price freeze in the way I have described above will not cost the government or the taxpayers anything. 

Saving the government, future taxpayers and energy consumers from an unnecessary £££billions funded price freeze with a price control and cap instead.

PS. Also this Telegraph article this afternoon in support:

https://www.telegraph.co.uk/business/2022/09/05/war-shameful-profiteering-energy-market-justifies-radical-intervention/

 10 Years in Bitcoin : 2012 - 2022

On 3 April 2012 my life changed; it was just an ordinary spring sunny day in London (like today) and I came across an article in the London Times about bitcoin. 

tinyurl.com/bitcoinTheTimes

That was my Eureka! moment about the potential future of money - decentralized, under the control of no-one, with no trusted central authority. Bitcoin is on a decentralized ledger called a  Blockchain.

The link above to the Times article is also on the header of my twitter account which I changed to this handle - @BitcoinByte on the same day, when I jumped into action, securing a domain and creating my first blog post on the following day:

 http://bitcoinbytes.blogspot.com/2012/04/what-is-bitcoin.html?m=0

Prior to Bitcoin and the world of digital currencies I had devoted my career to finance and innovation (e.g. Dubai) and loved technology. Having a deep understanding of how the global banking system operates my ‘a-ha’ moment came suddenly with Bitcoin. I very quickly became something of a bitcoin ‘aficionado’ to anyone who would listen and built up quite a following; from there onwards it was a fascinating ride and a lot of fun. I made friends, traveled the world to present at conferences (Cards & Payments) both in South Africa (Johannesburg) and Singapore and continued to learn a great deal. 

In 2012, the London Bitcoin scene was not yet on the mainstream radar and was a melting pot of intellectuals, futurists and open-minded disruptors hoping to bring about positive change to the current legacy banking, money and financial system.

Meetups were a fun place to be, full of hope and excitement. I was welcomed by this community and seem to stand out somewhat as an older ex-establishment figure. People were often surprised that an ex-banker, someone with international experience in London, Dubai and Moscow should have embraced this amazing new scene.

But far from being held at arm's length, I was supported, pushed even towards speaking out more and helping spread the word as for example in this Forbes piece on Bitcoin by Jon Matonis in 2012.
https://www.forbes.com/sites/jonmatonis/2012/11/03/ecb-roots-of-bitcoin-can-be-found-in-the-austrian-school-of-economics/?sh=741cbac23b18

Before long I was being asked to make presentations about Bitcoin to a major UK clearing bank in July 2012 at their Canary Wharf HQ, then again late that year to their credit card HQ in Northampton. In 2013 I was called to present to senior UK civil servants at the Future of Money event held at the Department for Business Information and Skills in Victoria.

This was picked up and reported in the Financial Times:

https://www.ft.com/content/42ca6762-bbfc-11e2-82df-00144feab7de

I did other follow-up work including leading a Cabinet Office round table event, a successful and positive meeting with HMRC regarding VAT on Bitcoin - link https://www.coindesk.com/markets/2013/12/06/uk-tax-authority-hmrc-rethinks-stance-on-bitcoin/ and HM Treasury

A year after I started, I gave this interview with System D media highlighting the FT front page article on Bitcoin https://www.reddit.com/r/Bitcoin/comments/1cw251/system_d_media_interview_michael_parsons_about/?utm_source=amp&utm_medium=

Next came media interest. With Bitcoin surging to $1000+ in 2013 a British national broadcaster, ITV, did a news segment on Bitcoin. ITV presented this as something of a novelty piece, I can be seen buying, on TV, the first ever pint of Beer using bitcoin (for £3.00 / 0.0474 BTC – now about £1,650!).

Looking back now I am proud to have been able to bring this tech to life for skeptics. ITV have since taken down the clip, but you can still see it on the wayback machine. https://web.archive.org/web/20130629200720/https://www.itv.com/news/london/topic/bitcoin/ 

As time went on I made more friends in the space and met many of the bitcoin pioneers and thought leaders. International crypto innovators, disruptors and travelers stayed at my house. I visited many of the key active players of the time at squats and underground events.

Memorable ‘pre-fame’ interactions with Vitalik Buterin, Roger Ver, Andreas Antonopolous, Nic Carey, Erik Voorhees, Amir Taaki, Mike Hearn, (etc, etc). In those days, crypto in-fighting was minimal, Bitcoin was a unifying force and Satoshi was a wonderful mystery.

Like many others, particularly after Ethereum launched, I strayed away from Bitcoin, keeping an open mind to innovation and becoming frustrated with some of its shortfalls. 

Peer–to-Peer, censorship resistant, electronic cash was still my main interest but the tantalising disruptive prospect of smart contracts was a strong siren song. But even during those years I never lost sight of where it had all begun and the key role of Bitcoin at the centre of the crypto universe.

I continued (and will continue) to make appearances on the BBC, Sky and Al-Jazeera news channels promoting and discussing Bitcoin e.g. 

BBC News - Bitcoin / CSW https://youtu.be/m-S1rCHefLU

BBC News - Bitcoin / https://www.youtube.com/watch?v=BFfGbDtiEio

Al Jazeera  Arabic channel - Bitcoin
Al Jazeera - Arabic channel -Bitcoin
BBC R4 Report: Bitcoin - 

http://downloads.bbc.co.uk/podcasts/radio4/r4report/r4report_20130425-2230a.mp3?utm_source=dlvr.it&utm_medium=twitter

BBC Radio 5 Live - no link

Bit-Talk with BitcoinByte -  http://www.iamsatoshi.com/bit-talk-bitcoin-byte/

Some years ago some of my time was spent offering occasional consultancy (as a member of 3 expert networks) through my company: I have made telephone and personal presentations about bitcoin/blockchain/crypto to very well-known global companies, including merchant banks, tech stocks and global hedge funds. 

Although this article is about my own discovery of, and my 10 year bitcoin journey, – outside of bitcoin, I would mention that many of the early adopters whom I know in the blockchain/token/crypto space have gone on from bitcoin to achieve success and recognition with further innovations and development.

My predictions for the next ten years? With Bitcoin, Crypto and Blockchain now having entered the mainstream since late 2017, innovation is continuing to accelerate at an almost exponential rate, compared to the early days prior to 2015 when Ethereum (ETH) was the main additional crypto token launched.

Bitcoin and Ethereum continue to be the market leaders with innovations continuing with the development of many other useful Tokens, Stablecoins, De-Fi (Decentralized Finance) and of course NFT’s (Non Fungible Tokens).

Social Media

I have also built up significant and useful networks on both on both Twitter: 

(@BitcoinByte & @Bitc01n) 

After the first year:

https://twitter.com/BitcoinByte/status/319845760449527809

and LinkedIn: 

(http://linkedin.com/in/michaelparsons ), being connected and well-known to many of the important names in the bitcoin/crypto/blockchain space.

As at 28 March 2022: “Good job @BitcoinByte, you are 84 on #CryptoLeaders the toplist of Crypto & Bitcoin Influencers.” 

https://top.visitory.com/LeaderBoard/hashtag/CryptoLeaders/

https://twitter.com/VisitoryGlobal/status/1461316588624388096

It has been a very interesting and exciting 10 years and I wish everyone success in whatever they choose to do in the future in this fast moving, dynamic and engaging space.

Bitcoin Creator: Is Dr Craig Wright Satoshi Nakamoto?

Short clip on BBC 2pm News with Michael Parsons (@BitcoinByte) discussing bitcoin creator Satoshi Nakamoto and bitcoin - the digital currency:
Dr Craig Wright and Bitcoin CryptoCurrency | Is Dr Wright Satoshi Nakamo?
Michael Parsons interviewed by Ben Brown @BenBrownBBC live on 2 o'clock BBC News Monday 2 May 2016

Discussion about the bitcoin creator claims made by Australian businessman Dr Craig Wright and Bitcoin the invention, including spending bitcoin worldwide on the VISA financial network rail using a (Xapo) bitcoin debit card. Asked "Do you think Craig Wright... created Bitcoin?" (and is therefore Satoshi Nakamoto) And other questions about what is bitcoin and how can be used.
End comment: "All very fascinating and slightly confusing."

Twitter: - http://www.twitter.com/BitcoinByte
Twitter: - http://www.twitter.com/Bitc01n
Twitter: - http://www.twitter.com/BlockchainABC

Web: http://www.bitcoinbyte.com
Web: http://www.blockchainabc.xyz
Web: https://ice3x.co.za/craig-wright-sato...

What does the name Satoshi mean?
Shamir Al-Khalil Tutte Okamoto Shannon Hellman Ibn Adlan (SATOSHI)
(All famous historical cryptographers)

Original BBC story on 2 May 2016:
http://www.bbc.co.uk/news/technology-...
Is Dr Craig Wright Satoshi Nakamoto? (December 2015)
https://youtu.be/xIZWVu6XsO4

More discussion about who is Satoshi Nakamoto, the creator of Bitcoin:
- http://financialcryptography.com/mt/a...
- http://gavinandresen.ninja/satoshi
- http://www.bbc.co.uk/news/technology-...
- http://themonetaryfuture.blogspot.co....
- http://tinyurl.com/SatoshiFT
- https://seebitcoin.com/2016/05/everyt...
- http://www.metzdowd.com/pipermail/cry...
- https://m.reddit.com/r/Bitcoin/commen...
- http://uk.businessinsider.com/bitcoin...
Previous post:
The genesis of bitcoin?
http://bitcoinbytes.blogspot.co.uk/2014/11/unenumerated-tweeting.html


How Bitcoin works:
https://m.youtube.com/watch?v=GMKgB3zZ1so
More...

https://m.youtube.com/watch?v=Lx9zgZCMqXE

Greeks face bankruptcy as cash runs out for wages and pensions

The Times

Anthee Carassava and Bruno WaterfieldLast updated April 23 2015 1:01AM

1 of 2

Alexis Tsipras, here with Yannis Varoufakis, will today appeal to Angela Merkel for more eurozone aidAristidis Vafeiadakis/ZCorbis

Greece will go bust next week, potentially pushing the highly indebted country into default and out of the eurozone and plunging the European Union into an unprecedented crisis.

The head of the Greek treasury admitted yesterday that the government could not pay its bills, including the salaries and pensions of millions of public sector workers that are due at the end of the month.

To avoid default, Athens must pay the despised creditors of the International Monetary Fund and the eurozone before its own citizens. Such an outcome would be deeply humiliating for the leftist government, elected on the pledge to put Greeks first.

Dimitris Mardas, the deputy finance minister, said the treasury coffers were €400 million short of the €1.9 billion needed to honour payroll obligations to state employees. “We have been running on empty since February.” 

At a summit in Brussels today, Alexis Tsipras, the prime minister, will appeal to Angela Merkel for more eurozone aid and warn her that Greece is on the brink of bankruptcy and exit from the euro.

EU diplomats and officials are concerned that the left-wing Syriza government will choose to pay public sector workers rather than honour payments due to the IMF of €970 million over the next three weeks, a decision that would push Greece into default.

“There is a strong faction, including the finance minister, that will not stomach the humiliation of paying back foreign creditors while Greeks go hungry,” said a diplomatic source. “This might well be the moment it ends.”

Fears that Greece is about to go bankrupt triggered market turbulence, pushing up the cost of Greek borrowing yesterday to the same levels as at the height of the eurozone crisis in 2012. Greek banks, completely dependent on emergency support from the European Central Bank, are teetering on the brink of collapse after public bodies were forced to withdraw €2.5 billion in cash reserves to help to pay bills.

After a meltdown on the Athens stock exchange, Mr Mardas attempted to qualify his remarks, saying that the state was solvent and that the government was pursuing “alternative options” to avoid financial turmoil. He refused to elaborate. Shut out of bond markets, Athens will run out of cash unless it strikes a deal with foreign creditors to unlock bailout aid worth €7.2 billion.

On Monday an emergency presidential decree forced up to 1,500 local government bodies to transfer cash reserves to the Bank of Greece for “urgent use” by the state. The measure was demanded by the eurozone and IMF, effectively placing the funds beyond the reach of the government, and has run into fierce resistance from mayors, who see it as an attempt to put international creditors before Greeks.

Giorgos Kaminis, the mayor of Athens, said the confiscation law was “unconstitutional” and vowed to fight it. The Union of Municipalities and Communities said in a statement on Tuesday night: “We are determined to use all political and legal means we can to repudiate the content of the decree.” 

Greece could go bust as early as Friday next week, May 1, if it balks at putting a repayment of €200 million to the IMF before paying state employees. The day is a bank holiday and could be the moment Greece informs international creditors that it cannot pay back debts and moves to introduce capital controls, nationalise local banks and issue a new currency pegged to the euro as it continues to try to negotiate.

Just 11 days later, Greece must pay back another €770 million, again to the International Monetary Fund.

Yesterday the lights went out — literally — in Greece’s biggest tax office, north of Athens, after the finance ministry failed to pay long-overdue power bills.

The crisis comes as the Syriza government refuses to implement politically toxic austerity measures and as eurozone hawks, led by Germany, insist that no aid will be forthcoming until it does. The stalemate has lasted two months, and a meeting of eurozone finance ministers in Riga tomorrow is not expected to deliver a breakthrough. 

“The uncertainty is hurting Greece, badly,” said Notis Mitarakis, a conservative MP. “The country cannot continue to limp. It’s high time the government gets a grip of reality and negotiates a deal fast.”

Surveys suggest that public support for the government is waning, with four in ten Greeks disagreeing with its hard-nosed negotiating stance. The same survey shows Mr Tsipras’s popularity dropping to 45 per cent from a record 72 per cent support a month ago.

Chain Of A Lifetime: How Blockchain Technology Might Transform Personal Insurance

"Chain Of A Lifetime: How Blockchain Technology Might Transform Personal Insurance" is the outcome of a research project conducted by Zyen between August and December 2014 which explored how blockchain technology might transform personal insurance and in particular interactions among individuals and insurance companies over time.

Bit Gold - "The Genesis Moment of Bitcoin"

Bit Gold

Blog article written in December 2008:

"One day, people will look upon this post as the actual genesis moment of Bitcoin. This is a a piece of digital history, worthy of preservation. Thank you Nick."

(One of the comments, towards the end)

http://unenumerated.blogspot.co.uk/2005/12/bit-gold.html?m=1

See also:

Flying money: a brief overview

(Private bank note issue)

http://unenumerated.blogspot.co.uk/2005/11/flying-money-brief-overview.html?m=1

Nick Szabo - profile

"A premier thinker about history, law and economics, and the lessons they have for security." -- Adam Shostack

https://www.blogger.com/profile/16820399856274245684

Nick Szabo

Unenumerated: Tweeting

Blockchain Technology - A Threat to, or an Opportunity for, Legacy Banking, Clearing & other Financial Services?

Blockchain Technology and Financial Services

"The blockchain technology, with its first iteration in the form of the cryptocurrency bitcoin, is a unique technological breakthrough that is a revolutionary gateway to a new era of decentralised banking, money, clearing, stock markets, insurance and even social networks and national governments.

Whilst Bitcoin itself is gradually becoming better known and more widely used, it's the underlying ‘blockchain’ technology within the bitcoin protocol –that is now gathering increasing attention for its ability to support far more complex transactions and relationships than pure value transfers."

"So can the Blockchain protocol create more cost-effective and decentralised financial services? Ethereum, an open-source project, is looking to provide the platform and the answer. And not just for financial services."

Read the full article here

also

The coming digital anarchy

"Bitcoin is giving banks a run for their money. Now the same technology threatens to eradicate social networks, stock markets, even national governments. Are we heading towards an anarchic future where centralised power of any kind will dissolve?" - read the full story in The Telegraph June 2014

Alderney and Bitcoin

Alderney Concept to issue Bitcoin-Backed Commemorative Gold Coins

Michael Parsons FCA, Bitcoin Advisor, Entrepreneur & Presenter, is the co-source of the Weekend Financial Time's (FT) Alderney & Bitcoin story on 1st Dec 2013 – and the inventor of the physical specie Commemorative Gold Bitcoin-backed concept and government adviser.
("The most read online article in the history of the Weekend FT," according to the editors)

Read the two original FT articles in full here:

The original FT story
Main front page headline FT article:

"Alderney looks to cash in on virtual Bitcoins with Royal Mint reality"
http://tinyurl.com/Alderney-RoyalMint

Page 2 background FT article:
"Island territory seeks self-sufficiency with virtual currency"
http://tinyurl.com/AlderneyBTC

(named here and also in the link below)

Alderney Wants To Become A Financial Hub For Bitcoin
http://www.techweekeurope.co.uk/news/alderney-bitcoin-hub-133169

Which Bitcoin Wallet?

Coinbase vs Blockchain.Info Review – What Is The Difference?  

Compare Two Top Bitcoin Wallets

Why Bitcoin IS intrinsically valuable...

It has been said a lot. Bitcoin is risky because it not “backed” by any government, asset, or commodity and has no intrinsic value in and of itself. It is true that Bitcoin is risky, but not for any those reasons. Bitcoin is risky because it is an entirely new disruptive technology with revolutionary potential in an unknown regulatory environment. The risk lies in Bitcoin’s ability to persevere despite the uncertain regulatory climate and realize its unspoken potential. The jury is still out on that.

http://letstalkbitcoin.com/why-bitcoin-is-intrinsically-valuable/#.UmOBWlO9LCS

New Finance: Monthly Seminar - Bitcoin: Legal, Regulation, Exchanges

Bitcoin is a hot topic in Fintech right now so this Meetup explores some of the rapidly developing legal issues around using and setting up exchanges and using Bitcoin from both a merchant and consumer perspective. Is Bitcoin coming in from the cold? On the one hand Exchanges are getting regulated, even talking to the Fed, on the other hand some countries like Thailand have made it actually illegal to use Bitcoin. It's time for an update, especially for those thinking of adopting Bitcoin. 
This seminar will explore the latest themes and developments, the key Bitcoin players and their offerings. 
Find out more:

New Finance Meetup - Bitcoin (6pm 16 October 2013)

Bitcoin Virtual Currency Workshop

Europe's Customer Festival

Total Payments Spectogram Workshop

16 - 17 September 2013, Business Design Center, Islington, London

Michael Parsons discusses the gains and challenges of virtual currency with a focus on Bitcoin.

Join the debate by attending the following premium spectogram workshop.

Bitcoin – The Future of Money & Payments?

After dinner speech given on 18 June 2013 to members of the Real Time Club
at the National Liberal Club, Whitehall Place, London, SW1A 2HE

• What, exactly, is Bitcoin?
• Who invented it and who controls it?
• How is it created? 
• Will Bitcoin replace State-sponsored currencies?
• Is it a threat or an opportunity for governments?
• Can a state adopt its own cryptocurrency?

In an age of e-commerce and electronic trading, where transactions are performed with a credit card, computer or a mobile device, could currency as we know it disappear altogether?

Information and background to this event here.