Bitcoin-The New Face of Money?

Thanks mostly to the Internet, money is flowing in new ways and in new forms. From credit cards we have moved to PayPal for peer to peer and business to customer transactions. Now there are companies like Square that permit small businesses to easily accept credit card payments. And the newest form that money is taking is Bitcoin, digital or cryptocurrency that allows anonymous, peer-to-peer currency transactions globally that bypasses the traditional banking system. Users need to obtain a “wallet” (software) and then they can purchase coins with real cash from a Bitcoin exchange. After that they can exchange Bitcoins peer to peer. Needless to say, the Bitcoin has caused a stir worldwide with governments struggling to create policy to match the virtual currency. In many countries in the EU provisions are in place to regulate the currency under existing barter and tax laws. Russia has banned the virtual currency outright, citing its potential for use in illegal activities and use by terrorists. China has cracked down on Bitcoin use, driving the price of the currency down, and Alibaba, China’s leading online retailer has banned the currency. In Japan, Bitcoin exchange Mt.Gox has gone offline citing security issues, and here too the price has plummeted and coinholders can not withdraw their funds. So safety, volatility and price fluctuation are a big concern for this new currency. Once valued at around $1,000, Bitcoin is now exchanged at around $650 in some parts of the world. So, new money-have you hear of it? What do you think? Will all money be virtual in the future? Post your opinion below.

Man of Mystery–DPRK’s Kim Jong-un

by David Parmer

Kim Jong-un was born on January 8,1983. Or maybe he wasn’t. Kim is married to Ri Sol-ju and they have a daughter, or maybe they don’t. Kim went to school in Switzerland, or was that his brother? Kim likes basketball, is “friends” with former Michael Jordan teammate Dennis Rodman, and is the supreme leader of the Democratic People’s Republic of Korea and is Marshal of a huge military machine that has medium and long range missiles and a growing nuclear capability.

Kim had his uncle Jang Song-taek executed either by machine gun or by throwing him to a pack of hungry dogs, or maybe he didn’t. Jang’s widow and Kim’s aunt, Kim Kyong-hui first disappeared, then either died of an heart attack or killed herself. Or maybe she didn’t. At the same time Kim cleaned house by removing the close circles of advisers of his late father Kim Jong-il. Kim had a female pop star executed for producing “pornographic” videos. The pop group had earlier been formed by Kim himself. Kim attended Kim Il-sung University and studied physics and went on to Kim Il-sung Military University for officer training. Kim has spent huge sums on luxury goods. Kim’s “pet project” was a recently-completed ski resort. Since 2011 Kim has ruthlessly been consolidating his hold on power in the DPRK. Kim looks like he could use a little more exercise. Kim could one day find himself in the dock at the World Court in the Hague for human rights violations. Kim Jong-un is an enigma. Some of the above is true.

Photo: Rodong Shinmun

Kerry’s Valentines Message in Bejing

U.S. Secretary of State John Kerry was on the China leg of his latest Asia trip this week. On Friday he met with Chinese leaders to discuss a number of important regional issues, the chief one being North Korea. While both parties traded jabs on some issues, i.e. the Chinese asking for some cooperation in reigning-in Japan’s right wing factions, and the U.S. pointing the finger at China’s Tibet and Uighur problems, there was agreement on the need for cooperation on the North Korean nuclear issue. Media reports had Kerry as being optimistic, and had Kerry suggesting some give and take could come about if a solution could be reached. Looming in the background are the Six Party talks, and North Korean hints that maybe they are willing to talk again. So what really happened in Beijing? Was any real progress made, and will China pressure Pyongyang to sit down, talk and take action? Add your comments below.

Tencent-A Name To Learn

by David Parmer

If you haven’t heard of China’s Internet giant Tencent, and don’t recognize its winking penguin, then you probably don’t live in China or follow IT very closely. But for millions of Chinese (and now increasingly those in other countries) Tencent is their Internet company of choice for one service or another. Some sources list Tencent as the world’s fourth largest Internet player after Google, Amazon, and eBay. It is certainly in the top 10.

And the question seems to be not what Tencent does, but what it doesn’t do. The answer to that is: not much. Tencent is ubiquitous-if there is an Internet service that can be provided Tencent provides it, has provided it, or will shortly provide it.

These include:

Instant messaging
Online media
Wireless Interned value added services
e-commerce
Online advertising
Street views
Payment solutions
Smart TV
Virtual currency

The company was founded in 1998 by Huateng “Pony” Ma, a 1993 graduate of Shenzhen University. The story goes that Ma saw AOL messaging, and realized that there was no such service in China and created the first Chinese language messaging service, QQ. The service was hugely successful and lead the company into online gaming, a revenue spinner that still provides a large portion of the company’s income. The timeline below shows Tencent’s steady and profitable growth in a few short years.

Tencent has gone from success to success. In January 2011 Tencent, sensing the industry-wide move to mobile devices, launched “Weixin” a mobile voice and text application. It added international support and changed the name to We Chat in 2012.

The application can be used to send and receive text messages, send and receive voice messages, photos and group messages. GPS enables users to find other users, and QR codes can be used to find friends. In 2014, Tencent will offer Smart TV which will permit program selection and controls, offer payment solutions and let users control TV with their WeChat application.

So what does Tencent do? As you can see, when it comes to the Internet, almost everything. And along the way, it has made Pony Ma one of the richest men in China.

Tencent website English http://www.tencent.com/en-us/

iTunes Store WeChat (Free) https://itunes.apple.com/us/app/wechat/id414478124?mt=8

CNN: Tencent China’s Hottest Tech Company:http://money.cnn.com/2014/01/08/technology/tencent/

Photo: TechRice.com

Tea or Coffee?

What do you prefer? Asia’s traditional drink of choice- tea, served hot, iced or with lots of milk and sugar, or sipped solemnly in a ceremonial way. Or coffee in the form of Latte, Mocha, American or espresso? Do you drink tea or coffee exclusively, or does it depend on the time and place? Give us your thoughts below.

Asia Has Its Cup of Joe

(Starbucks Coffee, Shibuya Tokyo- Wikimedia)

If you asked people in other parts of the world what drink Asians favor most, the answer would probably be “tea.” And traditionally, that has been true. But coffee has been making inroads in Asia for more than 100 years. And these days coffee culture has spread across the region from Tokyo to Jakarta, to Seoul, and Sydney. The story these days is about Asians growing and consuming coffee in record amounts. In 2014 a unique situation exists, where supply approaches over-supply, yet demand continues to increase. By country, the Asian coffee scene looks like this.

Korea: Korea’s coffee industry has doubled over the last five years with an explosion in import and consumption, making it the largest coffee market in the world.

Vietnam: is ranked by Bloomberg as #2 world coffee producer by volume and #1 producer of the Robusta variety used for instant coffee beverages.

Indonesia: is the #4 world coffee producer after Vietnam. 10% of its crop is premium Arabica variety. Indonesian coffee has an excellent reputation.

India: is listed by Bloomberg as the #5 coffee producer. It now accounts for 25% of Asian coffee. 50% of its output is the Arabica variety.

Philippines: The Philippines produces mostly the Robusta variety and is now the third largest Asian producer and # 16 among world coffee providers.

China: While coffee drinking continues to increase in China among the young, coffee production in China remains limited to Yunan in southwest China and to areas along the Vietnam border.

Australia: Is said to import in excess of 50,000 tons of coffee, while it produces 600 tons, 50% of which is exported.

Japan: while Japan does not produce coffee, the coffee business is booming. Japan: has a mature coffee culture dating back to the end of WWII. Japanese are great consumers of instant coffee and single serving coffee.

(Sources: Costa Rica Gourmet Coffee, Bloomberg, Coffee Expo Seoul 2014)

2014 Year of the Horse

2014 is the year of the horse in the oriental zodiac. The horse is lively and energetic and serves people well keeping an independent spirit. The world is faced with many of the same problems from 2013: the civil war in Syria, the unrest in Egypt, the constant threat of terrorism and migration from south to north. It seems we are again faced with problems both known and unknown. Our question this week: what major changes can you forsee in 2014, and will the year end well or badly? Post your comments here.

Taiwan’s Opposition DPP Issues China Policy Report

DPP Chang.jpg
(DPP Chair Su Tseng-chang/VOA)

by David Parmer

Taiwan’s opposition Democratic Progressive Party (DPP) issued its 2014 China Policy Review on January 9. The DPP’s China Affairs Department released the document with a forward by DPP chair SuTseng-cheng. Those looking for hints of change in policy or emphasis will have to look elsewhere-the DPP remains staunch in its fundamental principles and is unequivocal in its assertions.

The DPP, which was founded in 1986, and is Taiwan’s first opposition party, is known for its strong human rights stance, its concern with social welfare, its belief in the importance of relations with the U.S., Japan and Europe, and its unwavering commitment to Taiwan independence.

The report covers four areas:

Political relations
Economic strategy
Freedom and human rights
National defense

The report echoes the party platform. A key point is that the people’s wishes are the main concern in cross strait relations. And the DPP report asserts:

“An examination of the positions and attitudes of the Taiwanese people towards China policy reveals that their national identity and preferences for independence versus unification have solidified.”

This point is repeated throughout the document and is paired with the idea that cross-strait exchanges must not undermine Taiwan’s sovereignty and security. A call was also made for more transparency in cross strait relations as well as more emphasis on democracy, freedom and human rights.

The report states that Taiwan faces three problems: globalization, regional economic integration and the economic rise of China. Mention is also made of the negative effects on the Taiwan economy caused by economic relations with China. And finally to ensure Taiwan’s continued security, the DPP report advocates increasing the defense budget.

DPP 2014 China Policy Review: http://www.scribd.com/doc/198143800/DPP-2014-China-Policy-Review-Summary-Report

Are the Sochi Winter Olympics Safe Enough?

In a couple week the 22nd winter Olympics will get underway in Sochi, Russia. Athletes from 85 countries and spectators from around the world will attend the games and the Paralympics to follow. Russia will deploy massive security to prevent acts of terrorism. But given the location in a known hot spot for dissent and terrorism, will Russia be able to offer 100% protection to participants and guests? Is it possible to prevent terrorism and have an open and enjoyable games? Post your comments below.

Asia Hopefuls Head To Sochi Winter Olympics 2014

The 22^nd Olympic winter games will be held in Sochi, Russia from February 7-23. There will be 98 events for 15 winter sports. 2500 athletes from 85 countries will participate and some 25000 volunteers will assist. This is Russian’s second time to hold the Olympics.

Organizers have published their objectives for the games:

“The games of Sochi are going to be highly innovative Olympic and Paralympic winter games that will express the spirit of modern Russia and bring with them sustainable, positive change for the whole country.” (Sochi 2014 website)

Asian countries have high hopes for the games. These include:

Japan

Japan will send 100 athletes and hopes to wind its first gold medal in eight years. In Vancouver 2010 Japan took home three silver and two bronze medals.

China

China will send 130 athletes to Sochi to participate in acrobatic events on ice, short track speed skating, freestyle skating and snowboarding. China’s chances at the short track speed skating gold are dim now that star Wang Meng will miss Sochi 2014 with an ankle injury. China won five gold, two silver and four bronze medals at the 2010 Vancouver games.

Republic of Korea

Korea will send 64 athletes and 49 officials to Sochi. This is the highest ever for Korea, which will be represented in every sport but ice hockey. Korea has finished in the top 10 medal winning countries in the past six winter games, and aims for four gold medals this time.

Chinese Taipei

Chinese Taipei (Taiwan) will be represented by two male athletes, one in short track speed skating and one in speed skating.

India

India will be represented three athletes, including Shiva Keshavan in luge. Indian athletes will be entered as independents because of a dispute between the IOA and IOC.

Tajikistan

Tajikistan will enter one athlete in alpine skii

Kazakhstan

Kazakhstan will be represented by athletes in 10 sports.