Wednesday, December 18, 2013

2013 the Year of Bitcoin


Graph of Bitcoin Markets (mtgoxUSD)

2013 was the year that the electronic crypto currency known as "Bitcoin" came into it's own. Not long ago it was written off by Wall Street critics. Today is a different story. Up over a 1000% this year alone, now the critics are doing everything they can to undermine it. JPMorgan Chase Bank for example has unsuccessfully tried to patent their own version of Bitcoin, but has been rejected by the US Patent and Trademark Office over 170 times because their so-called invention already exists in Bitcoin.

Their patent application is laughable in that blatantly copies what everybody knows Bitcoin is. For example:
A computer-implemented method of providing an anonymous payment from a mobile device to a payee device to enable an electronic payment between a payer and a payee without provision of an account number or name from the payer, the method comprising: storing, in a computer memory at a host server, payer information and instructions; and accessing the computer memory using a computer processor to retrieve the payer information and instructions and executing the instructions to perform steps including: receiving at the host server, a bill payment message from the payee, the bill payment message including a transaction ID; transmitting the transaction ID to the payer, the transaction ID permitting the payer to initiate transmission of a payment amount; generating a payment authorization message from the payer, the payment authorization message including a payment amount to be tendered to the payee and the transaction ID, the transaction ID allowing identification of the payment, thereby enabling redemption of the payment amount after the payee receives the transaction ID; and transferring the payment amount from an account associated with the payer to an account associated with the payee. 
Uhmm, excuse me Jamie Diamond but you know damn well that is a description of Bitcoin to a tee. That is what is known as "Prior Art". Prior art in most systems of patent law, constitutes all information that has been made available to the public in any form before a given date that might be relevant to a patent's claims of originality. If an invention has been described in the prior art, a patent on that invention is not valid. So lets review, Bitcoin has been around for since 2007, has millions of users, and your patent is basically a copy and paste job from the Bitcoin website. Yes I would say that qualifies as prior art.

The success of Bitcoin will mean the demise of Central Banks, Wall St. and the Washington insiders who trade on inside information and market manipulation. I expect we will continue to see these insiders try to do to the Bitcoin exchanges (the price discovery mechanism) what they did to similar challenges to the oil price fixing, Hollywood propaganda, and political market making? Let's hope the US Patent and Trademark Office continues to reject obvious attempts by Banksters to make Bitcoin an intellectual property farce the way Monsanto claims to hold the patent rights on seeds or the way the drug industry claims to have the patent rights on various DNA.


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