This Bitcoin fan makes a big mistake and loses € 40,000 in one click

The fatal click also takes bitcoiners – It’s not just on the Ethereum (ETH) network that you can get big mistakes on transaction fees . This time, it was a Bitcoin (BTC) lover who had the bitter experience.

A satoshis error that costs (very) dear

This November 18, a bitcoiner probably did not pay enough attention to their transaction on the Bitcoin Circuit review network .

Indeed, at block 657535, an unknown person paid more than 2.66 BTC in mining fees, for a transaction of less than 0.0109 BTC . In other words, this unfortunate man paid the equivalent of almost $ 47,000 in fees to transfer less than $ 195 .

Transaction fees that have calmed down on Bitcoin

The error will be all the more bitter for him as the average fees for carrying out a transaction on the Bitcoin blockchain have declined rather well since the end of October.

As can be seen from the Bitinfocharts chart below, average fees peaked at just over $ 13 on October 30 and 31.

Fortunately, they have fallen back to a slightly more reasonable average, around $ 4 , in recent days.

The expense error records remain however those established (2 days in a row) last June. An individual had then sent transactions on Ethereum by paying the incredible sum of 2.6 million dollars in ethers … and this on two occasions.

Teddy Sagi entlädt 12% der Playtech-Aktien

Brickington Trading Ltd., der größte Anteilseigner des Glücksspielsoftwareanbieters Playtech, hat beschlossen, einen Anteil von 12% an dem oben genannten Unternehmen zu veräußern.

Es wurde heute bekannt gegeben, dass Brickington insgesamt 38,7 Millionen Playtech-Aktien zu 850 Pence pro Aktie abgeladen hat

Der größte Anteilseigner von Playtech gehört dem israelischen Geschäftsmann Teddy Sagi, der 1999 den Glücksspielanbieter mitbegründete. Das Unternehmen gab am Dienstag bekannt, dass es 32,2 Millionen Stammaktien von Playtech verkaufen werde. Wie der Anbieter selbst heute sagte, hat Brickington aufgrund des starken Investoreninteresses beschlossen, den Verkauf auf 38,7 Millionen Aktien zu erhöhen .

Wie oben erwähnt, machen die verkauften Aktien 12% des gesamten Aktienkapitals von Playtech aus. Die aktuelle Marktkapitalisierung des Unternehmens liegt bei rund 2,8 Mrd. GBP .

Die Platzierung soll am Freitag abgeschlossen sein, wobei die Investmentbanker UBS Limited, Canaccord Geuity Limited und Credit Suisse Securities Limited als Bookrunner fungieren. Der Verkauf würde Brickingtons Anteil an Playtech von 33,6% vor Bekanntgabe des Verkaufs auf 21,6% reduzieren . Es wurde auch angekündigt, dass die Sagi-eigene Firma rund 330 Millionen Pfund von der Platzierung sammeln würde. Der Preis von 850 Pence entsprach einem Rabatt von 7% gegenüber dem Marktschluss am Dienstag von 919 Pence pro Stammaktie.

Nach dem Verkauf besitzt Brickington nun insgesamt 69.582.169 Aktien des Glücksspielentwicklers und -lieferanten.

Das Unternehmen kündigte an, weitere Aktien für einen Zeitraum von mindestens 180 Tagen nicht auszulagern

Es wird angenommen, dass der Verkauf stattgefunden hat, da Teddy Sagi versucht, sein Portfolio weiter zu diversifizieren . Zuletzt kaufte der israelische Geschäftsmann das Holborn Links Estate in London für ungefähr 300 Millionen Pfund. Das Anwesen befindet sich im zentralen Teil der englischen Hauptstadt und besteht aus 34 Immobilien, die sich über 4 Hektar erstrecken. Zu Mr. Sagis Portfolio gehört auch Londons legendärer Camden Market, den er letztes Jahr erworben hat.

Auch nach dem Verkauf eines 12% -Anteils an Playtech ist der Business Tycoon immer noch der größte Anteilseigner des von ihm mitbegründeten Unternehmens. Generell ist Playtech auf die Entwicklung von Multi-Channel-Lösungen für die globale Glücksspielbranche spezialisiert . Seit dem letzten Jahr betreibt es auch einen wachsenden Finanzbereich.

Vor kurzem gab das Unternehmen bekannt, dass es mit der Übernahme des B2B-Technologieunternehmens Consolidated Financial Holdings (CFH) für einen Gesamtbetrag von 120 Mio. USD noch weiter in die Finanzwelt vordringen wird.

Bitcoin at $15,000 is bigger than PayPal, Coca-Cola, Netflix and Disney

In a few months Bitcoin’s capitalization has increased from 190 to 280 billion dollars, exceeding the valuation of many large companies.

At the beginning of September this year, the capitalization of Bitcoin (BTC) fluctuated around 190 billion dollars. At the time the price of BTC was about $10,000.

But in the last two months Bitcoin Trend App has exceeded $15,000, and market capitalization has soaring from $190 billion to $280 billion. In other words, at this moment the total value of Bitcoin is higher than that of most U.S. companies.
Bitcoin price chart

Bitcoin equivalent to the 18th largest U.S. company

By comparing Bitcoin’s valuation to that of US listed companies, the cryptocurrency would win the 18th position.

The 17th largest company in the United States is Home Depot, with a capitalization of 306 billion dollars. It follows Verizon with a valuation of 242 billion dollars: Bitcoin would therefore position itself in the wide gap between these two companies.

In other words, in recent months Bitcoin’s capitalization has exceeded that of giants such as Netflix, PayPal, BofA, Coca-Cola, Salesforce and Disney.
Ranking of the largest U.S. companies

Bitcoin remains behind the three largest financial institutions in the United States, namely Visa, Mastercard and JPMorgan. For cryptocurrency to outperform these three companies, it would have to reach a price of $23,000 and a capitalization of $426 billion.

To reach Apple, the company with the highest valuation in the world, the price of a single Bitcoin should be about $ 120,000!
Bitcoin will continue to grow in the coming months?

However, analysts predict that the price of Bitcoin will continue to rise between the end of 2020 and the beginning of 2021, and that the cryptocurrency could even reach new historical highs.

In 2017, Bitcoin recorded a new price high about 15 months after the 2016 halving. We saw a new BTC halving in May 2020, so based on historical data we can expect a price above $20,000 in mid 2021.

Moreover, in the long term the perception of Bitcoin as a reliable value reserve could further increase its valuation.

Tyler Reynolds, a former employee of Google and Morgan Stanley, said that the fixed offer makes Bitcoin an attractive choice to protect its assets from inflation:

„Currently a bull run is emerging based on the same concepts that Bitcoin’s OGs have been repeating since 2011: BTC’s limited offer makes the cryptovalue a resilient reservoir of value, while governments devalue their fiat coins to support unbridled public spending“.

Even very important investors, such as billionaire Paul Tudor Jones, have called Bitcoin an excellent value reserve to counter inflation.

Bitcoin is particularly interesting for institutions, as it could serve as a hedge within a broadly diversified investment portfolio, while at the same time offering exposure to the enormous growth potential of cryptocurrency.

Bitcoin’s relatively low market capitalization compared to companies such as Visa and proven safe haven assets such as gold indicates that the price of cryptocurrency could increase exponentially over the next ten years.

BITCOIN PARA CELEBRAR O ANIVERSÁRIO DE 12 ANOS DO WHITEPAPER COM FECHAMENTO MENSAL ACIMA DE $12K

Amanhã faz 12 anos que a Satoshi Nakamoto distribuiu um link para um whitepaper intitulado Bitcoin: A Peer-to-Peer Electronic Cash System via uma lista de correio criptográfica cypherpunk, e o mundo nunca mais foi o mesmo desde então.

Como a primeira moeda criptográfica de sempre está prestes a celebrar o décimo segundo aniversário do lançamento histórico do whitepaper, amanhã também poderá ser o primeiro fechamento mensal acima de $12.000 desde dezembro de 2017 – a única outra vez que o fez, antes de chegar a um pico e iniciar o mercado de ursos.

AMANHÃ É O 12º ANIVERSÁRIO DO „BITCOIN: UM SISTEMA DE CAIXA ELETRÔNICO PEER-TO-PEER“.

Quando Satoshi Nakamoto lançou Bitcoin na natureza, ele deu início a uma revolução tecnológica e financeira. Desde então, desenvolveu-se toda uma indústria de blocos, juntamente com milhares de altcoins criados em sua homenagem.

Mas ainda existe apenas um Bitcoin, com um suprimento de apenas 21 milhões e possivelmente apenas 17 milhões em circulação. A principal moeda criptográfica por limite de mercado ainda domina o resto do espaço e é a primeira do grupo a captar os olhos dos investidores institucionais.

O único vestígio de Bitcoin anterior à distribuição do whitepaper foi o nome de domínio bitcoin.org sendo registrado em agosto de 2008. Mas foi somente em 31 de outubro daquele ano que a Nakamoto revelou seu plano de romper o sistema de moeda fiat com a primeira moeda digital que foi capaz de resolver o problema do duplo gasto que atormentava as tentativas anteriores.

O whitepaper foi cuidadosamente enviado através de uma lista de discussão de criptografia focada em cypherpunk – para aqueles que achassem o projeto interessante e considerassem se envolver. A lista incluía pessoas como o falecido Hal Finney, que recebeu a primeira transação de BTC diretamente da Satoshi. Alguns até acreditam que Finny talvez fosse a Satoshi, mas a verdadeira identidade do criador de Bitcoin ainda hoje permanece envolta em mistério cerca de 12 anos depois.

Em janeiro de 2009, a Satoshi lançou o código de código aberto e minerou o „bloco de gênesis“, e a Bitcoin tem estado em funcionamento desde então.

A PRIMEIRA MOEDA CRIPTOGRÁFICA DE SEMPRE ENFRENTA UM FECHAMENTO MENSAL CRUCIAL ACIMA DE $12.000

Enquanto $10.000 era reconhecidamente um nível importante para o Bitcoin, $12.000 foi o gatilho que enviou a moeda criptográfica para os níveis atuais e um nível que o Bitcoin só fechou uma vela mensal acima de sempre – em dezembro de 2017.

Naquele mês, a moeda criptográfica disparou para $20.000 e capturou a imaginação do mundo que primeiro descobriu o seu potencial. O FOMO tardio prejudicou a reputação do ativo e caiu em um mercado de ursos.

O mercado de ursos começou com um fechamento abaixo de $12.000, e o ativo criptográfico nunca mais foi capaz de fechar uma vela mensal acima de $12.000.

Agora, no décimo segundo aniversário do whitepaper, a Bitcoin está apropriadamente perto de fechar acima de $12.000 em prazos mensais pela primeira vez. Com o fechamento diário a apenas um dia de distância, há uma chance da Bitcoin poder fechar o mensal acima de $13.000 ou $14.000, mas são os $12.000 que realmente importam.

Como ilustrado acima, o número 12 foi importante para a Bitcoin no passado e pode ser devido a uma relação bizarra com um antigo sistema matemático sexagesimal babilônico.

É também muito mais adequado de um acabamento ao que tem sido 12 anos de crescimento, a uma taxa de aproximadamente US$ 1.000 por ano até agora. E com o mercado de touros apenas começando com um fechamento mensal acima de $12.000, essa taxa de crescimento está prestes a acelerar significativamente, agora que a jovem moeda criptográfica começa a entrar em sua tumultuada adolescência.

‚Alle‘ russischen Beamten werden aufgefordert, Krypto-Bestände zu deklarieren

Russische Staatsbeamte werden verpflichtet sein, zu erklären, wie viel Krypto sie besitzen, sagte die Generalstaatsanwaltschaft des Landes.

Per offizieller Veröffentlichung hat der Generalstaatsanwalt die Änderungen im Einklang mit dem ersten Kryptogesetz des Landes eingeführt, das Anfang dieses Jahres verabschiedet wurde und am 1. Januar 2021 verkündet wird.

Obwohl einige der Meinung sind, dass das Gesetz nur ein „Glossar von Begriffen“ und ein Vorläufer eines umfassenderen Gesetzes ist, das noch sehr weit fortgeschritten ist, wird das neue Gesetz Zahlungen in Kryptoanlagen verbieten und der Kryptoindustrie eine rechtliche Grundlage geben.

So erklärte Generalstaatsanwalt Igor Krasnov gestern, dass Crypto Superstar bald die gleiche Art von „Eigentumsrechten“ haben werden wie andere Vermögensklassen, wie Immobilien, Fahrzeuge und Wertpapiere – und als solche deklariert werden müssen.

Krasnov fügte hinzu, dass alle Beamten ab 2021 verpflichtet sein werden, ihre Kryptoasset-Bestände zu melden, wobei Krypto „gleichberechtigt mit anderen Vermögenswerten“ zu betrachten ist.

Nach russischem Recht können Beamte, die unvollständige oder irreführende Informationen über ihr Einkommen und Vermögen verheimlichen oder zur Verfügung stellen, von der Justiz nach den Antikorruptionsvorschriften strafrechtlich verfolgt werden.

In den letzten drei Jahren hat die Generalstaatsanwaltschaft nach eigenen Angaben nicht offengelegte Vermögenswerte im Wert von 441 Mio. USD von Beamten, die versucht haben, ihre Einkünfte zu verbergen, beschlagnahmt oder eingezogen.

Das Büro gab nicht bekannt, wie es potentielle Täter identifizieren würde, aber Lösungen wie eine vom Federal Financial Monitoring Service (lokal als Rosfinmonitoring bekannt) entwickelte Krypto-Deanonymisierungsplattform, deren Einzelheiten Anfang dieses Jahres bekannt wurden, könnten durchaus eine Rolle spielen.

Le Royaume-Uni interdit la vente de dérivés cryptographiques aux investisseurs de détail et déclare vouloir économiser 69 millions de dollars en pertes

La Financial Conduct Authority (FCA) du Royaume-Uni a interdit la vente de produits dérivés de crypto-monnaie aux investisseurs de détail dans une mesure qui, selon elle, permettra aux clients ciblés d’économiser 53 millions de livres sterling (68,9 millions de dollars) de pertes chaque année.

L’interdiction entre en vigueur le 6 janvier 2021

Dans une déclaration du 6 octobre, le régulateur a déclaré que la vente, la commercialisation et la distribution de tout produit dérivé, y compris les contrats de différence, les options, les contrats à terme et les billets négociés en bourse (ETN) par toute société locale ou étrangère opérant au Royaume-Uni, est interdite. .

L’Autorité a déclaré que les dérivés basés sur des actifs numériques tels que Bitcoin ( BTC ) ou Ethereum ( ETH ) sont «mal adaptés aux consommateurs de détail en raison du préjudice qu’ils posent». La FCA a décrit une série de risques qu’elle considère comme résultant de ces produits. Ils incluent un manque de «base fiable pour l’évaluation» de l’actif sous-jacent, des manipulations de marché et une volatilité «extrême» des prix.

Il a déclaré que les clients de détail n’avaient pas de «besoin d’investissement légitime pour investir dans ces produits» et qu’ils ne comprenaient pas non plus pleinement le négoce de produits dérivés. L’interdiction, proposée pour la première fois en juillet 2019, n’affecte pas le trading de monnaies virtuelles telles que le bitcoin, qui ne sont pas réglementées par la FCA.

Les investisseurs de détail détenant actuellement de tels dérivés cryptographiques seront autorisés à les conserver aussi longtemps qu’ils le souhaitent, a rapporté Bloomberg.

Sheldon Mills, directeur exécutif par intérim de la stratégie et de la concurrence à la FCA, a commenté:

La volatilité significative des prix, combinée aux difficultés inhérentes à l’évaluation fiable des crypto-actifs, expose les consommateurs de détail à un risque élevé de subir des pertes en échangeant des crypto-dérivés. Nous avons des preuves que cela se produit à une échelle significative. L’interdiction offre un niveau de protection approprié.

Ecco perché i titoli tecnologici vorranno emulare il Bitcoin tra qualche anno

È noto che nel 2020 la Bitcoin ha fatto piazza pulita di tutti gli altri beni tradizionali. Nonostante le forti turbolenze, il Bitcoin era ancora in crescita del 48% al momento della stampa, una cifra superiore a quella dell’Oro, dell’S&P 500 e del WTI. È interessante notare che una particolare classe di asset è stata a contatto con l’asset digitale per rispecchiare i significativi guadagni di quest’anno: le azioni Tech.

Tuttavia, c’è una leggera differenza. Mentre la Bitcoin continua a ricevere molte critiche dall’industria per la sua volatilità e i massicci prelievi, le azioni tech non sono state criticate così tanto. Mentre molti attesterebbero che la Bitcoin ha „rispecchiato“ queste popolari stock option tecnologiche nel 2020, la loro somiglianza storica chiarirà alcune cose importanti.

Bitcoin contro Tech Stock – Simili o no?

Fonte: Ecoinometria

Come evidenziato dall’ultimo rapporto Ecoinometrics, la maggior parte dei titoli tecnologici più popolari dell’anno, tra cui Amazon, Netflix e Tesla, hanno subito in passato significativi prelievi.

Considerate questo – Dalla fine del 2012, Bitcoin è cresciuta di un fattore di 1.000x e ha affrontato un prelievo dell’85% dal suo triidrato di alluminio. Questo è noto. Ciò che non si sa, tuttavia, è che lo stesso si può dire anche per Amazon. In effetti, il rapporto ha sottolineato,

„Amazon è cresciuta in modo esponenziale più di 1.000 volte dalla sua IPO. Ha un assorbimento massimo del 94%“.

Allo stesso modo, Netflix è sulla buona strada per registrare una crescita di 1000x, nonostante in passato abbia dovuto affrontare un prelievo dell’82%.

Ora, ecco dove diventa più interessante.

Un rapporto di Coinshares della fine del 2009 aveva indicato che ci sono voluti 7 anni ad Amazon per riprendersi dal suo massiccio declino, mentre Microsoft ha lottato per 17 anni prima di recuperare per salire al suo massimo storico.

Se si considera che il minimo del 2017 di Bitcoin Era è il suo minimo ora, in meno di tre anni ha già colmato il divario a più della metà del suo massimo storico. Come si può osservare dal grafico allegato, il Bitcoin è aumentato del 246% dal suo minimo del 10 dicembre 2018. Quindi, la domanda che porta alla vera discussione è: i titoli Bitcoin e tech sono effettivamente simili o sono una facciata?

Bitcoin e Tech Stock condividono dinamiche diverse

Il punto alla base del confronto iniziale degli utilizzi è stato quello di sottolineare che anche gli attuali attivi di successo hanno attraversato un periodo di difficoltà. Tuttavia, al di sopra di questo, i titoli Bitcoin e tech condividono dinamiche di valore completamente diverse.

Ecoinometria lo ha sottolineato, affermando che mentre solo una borsa principale controlla il trading di un particolare titolo tecnologico, il Bitcoin è venduto su molte piattaforme diverse, a seconda del paese, delle restrizioni e della disponibilità.

Un altro argomento chiave qui è che il valore del Bitcoin deriva dall’essere un tipo di valuta, e la „valuta“ è un enorme mercato indirizzabile. Il Bitcoin ne ha catturato solo una parte infinitesimale, e la curva di adozione è ancora nella sua fase iniziale.

La linea di fondo è quindi che i titoli tecnologici non hanno lo stesso potenziale del Bitcoin e c’è una somiglianza tra di loro solo a causa della fase attuale. In pochi anni, il Bitcoin potrebbe essere molto più avanti in termini di capitalizzazione di mercato, assorbendo la rara pressione di vendita di questi titoli tecnologici come riserva di valore.

WBTC nu tillgängligt på DeFi Swap

Wrapped Bitcoin har gjorts tillgängligt på DeFi Swap.

Crypto.com meddelade nyligen att Wrapped Crypto Bank (WBTC) nu är tillgängligt på DeFi Swap.
Utvecklingen avslöjades också via ett Twitter-tillkännagivande från Crypto.com.

Det är viktigt att notera att Crypto.com ansvarar för att tillhandahålla den teknik som bidrar till utvecklingen av DeFi Swap.

Crypto.com-användare kan nu byta WBTC. De kan också bli likviditetsleverantörer för WBTC för att tjäna avgifter och öka sina avkastningar med nästan 20 gånger när de satsar CRO, den ursprungliga symbolen för Crypto.com.

Vad är WBTC?

WBTC (dvs. Wrapped Bitcoin) är en ERC-20-token som backas 1: 1 av Bitcoin. Med stöd av Bitcoin presenterar WBTC Ethereums ekosystem med Bitcoins likviditet. Sådana Ethereum-ekosystem inkluderar finansiella applikationer och decentraliserade utbyten (DEX).

WBTC skapar smarta kontrakt för Bitcoin genom att uppgradera Bitcoin till ERC20-format. WBTC är nu tillgängligt på DeFi Swap för att göra det möjligt för användare att odla, byta och spela med den digitala valutan.

Användare kan nu köpa WBTC till verklig kostnad på Crypto.com, och plattformen erbjuder stöd för både banköverföringar och kreditkort. Det finns inga användaravgifter. Tyvärr är WBTC inte tillgängligt för invånare i USA.

Om DeFi Swap

Den 11 september lanserades DeFi Swap på Ethereum Mainnet. Drivet av CRO är DeFi Swap en bra plattform för att odla och byta DeFi-mynt. I DeFi Swap kan leverantörer av likviditet få generösa incitament när de bidrar till likviditetspooler med tredubbelt avkastning.

Trippelavkastningen inkluderar swapavgiftsdelning, CRO DeFi-avkastning och bonuslikviditetsavkastningsavkastningen för utvalda pooler. Genom att dela 0,3% av handelsvolymen kommer likviditetsleverantörerna också att belönas enligt respektive likviditetspooler.

När likviditetsleverantörer spelar CRO kan deras dagliga avkastning skördas på 30 dagar. Dessutom är likviditetsleverantörer i utvalda pooler berättigade att ta emot polletter som kan lösas in när de deltar i DeFi-projekt.

WBTC läggs till växande tokenlista

Det är viktigt att notera att WBTC har gått med i ett växande antal tokens som listas på DeFi Swap. Dessa tokens inkluderar Yearn Finance (YFI), (Wrapped) Ether (WETH), Tether (USDT), USD Coin (USDC), Dai (DAI), Chainlink (LINK), Compound (COMP) och Crypto.com Coin (CRO) . Byte kan ske här.

Nyligen meddelade Crypto.com en ökning av återbetalningsbeloppen på köp som gjorts med Crypto.com-kort. De nya återbetalningsgraden har uppdaterats för två av fem Crypto.com-kort. Dessa nya räntor träder också i kraft den 1 oktober 2020.

Chainlink for more security with Bitcoin on Ethereum – BitGo shows transparency

Bitcoin is becoming increasingly popular in Decentralized Finance (DeFi) . This is mainly due to the status of BTC and its relevance for the entire cryptospace.

But since DeFi mainly runs on the Ethereum blockchain, Bitcoin can only be used there in the form of „promissory notes“ (derivatives or synthesized assets)

In order to use the bitcoins in the form of derivatives on the Ethereum blockchain, tokens that are stored with real BTC must be issued. We are talking about the most popular BTC image on Ethereum – WBTC from BitGo.

But until now there has been a lack of transparency. There were concerns that more derivatives were being issued than Bitcoin could ever cover.

This should be over now. The crypto custody service BitGo and Chainlink have now joined forces to verify the actual amount of real Bitcoin stored.

Bitcoin Reserve verified by WBTC through Chainlink

Chainlink’s decentralized Oracle should help BitGo to gain even more trust. Because currently you have to give the Bitcoin to someone else in order to get a BTC derivative on the Ethereum blockchain. A decentralized verification would be more than helpful at this point.

Since Bitcoin is also about „don’t trust, verify“, this mechanism does not really fit into the basic construct of BTC.

Nevertheless, the community should be convinced with additional transparency to transfer their BTC to the ETH blockchain in order to participate in the flourishing DeFi market.

We are confident that Chainlink will provide WBTC users with a reliable, on-demand source of collateral information as well as an additional level of transparency for tracking WBTC reserves.

Why is a strong dollar not good for Bitcoin?

Everyone wants to see the strength of the dollar, but is it really positive?

The usefulness of a fiat currency lies primarily in its stability. The ideal is a fair compromise.  In this case, the shortage of supply is not the most important thing. What is important is that the monetary supply reflects the amount of goods and services available at any given time. In other words, production and currency must be synchronized in order to have price stability. In the case of speculative assets, the opposite is true. A scarce asset increases in value with increasing demand. But even the most scarce asset can fall in price, if demand falls due to a lack of liquidity. Why do so many Bitcoiners promote a strong dollar? 

Here is a great irony. The Bitcoin community celebrates the shortage of Bitcoin and welcomes the arrival of new buyers. But it is generally critical of cash injections. We must remember that this is a community obsessed with the price of Bitcoin. It’s our bread and butter to read a new price forecast. It’s said that Bitcoin will reach $40K very soon. But then it will easily reach $250k. And after that, it’ll keep going up like crazy.

Now, you could say that Bitcoin is priceless. We say informally that it has a price, but in reality the term is not the most appropriate. Bitcoin has no intrinsic value. It’s a crypt currency and what it really has is an exchange rate. And, at the moment, its most important pair is the US dollar. A currency always exists in relation to other assets. Does a medium of exchange without exchange make sense? That would be absurd.

Exchange is the life of a currency. The dollar, for example, is closely related to the domestic production of the United States and the rate of other currencies. If there is too much money, inflation will be triggered. If there is too little money, deflation sets in. If the dollar rises in value relative to other currencies, exports suffer. If the dollar falls in value in relation to other currencies, the price of imports rises.

The stability of the dollar is important for the US economy and world trade. And that means moving away from extremes. Deflation and inflation. Strength and weakness. The adjective „strong“ is generally regarded as positive. And one could assume that all countries wish to have a strong currency. But here we must make an important distinction. We could say that a currency is strong if it is stable and has a high level of adoption. Such a currency makes a sound financial market possible.

On the other hand, the adjective „strong“ can be used in a slightly different sense.  „Strong“ in this context does not mean stability. What it means is lack of liquidity. This leads to a fall in demand, reduced spending and depreciation of assets. It also hurts exports and makes imports more expensive. This scenario decreases revenues. Consequently, unemployment increases and the economy decreases.

This contradicts many of the public’s assumptions about the economy and money. Of course, this does not mean that it is false. What it really means is that the average person understands very little about economics. 

Counter-cultural movements have traditionally promoted savings and discouraged spending.  That is, materialism and excess. This discussion is perfectly valid. And everyone has the right to choose their own lifestyle.  However, in this article I will limit myself to describing the economic fact. I will do so as one who describes the processes of a machine.

Spending has a twin brother. That is, one cannot live without the other. I mean the brothers, expenditure and income. Because one man’s expenditure is another man’s income. In other words, the economy requires transactions. And economic growth needs money to circulate.  This does not mean that we should all become consumerists. What it really means is that, from a financial point of view, the smartest thing to do is to become an investor.

The investor is different from the saver.The saver accumulates dollars. The investor invests in assets. The saver discourages spending and wants a strong currency. But without spending there is no income. And without income, there is no employment. Therefore, the economy does not grow. On the other hand, the investor wants economic growth, because his investments depend on the success of the economy. Liquidity injections raise the price of assets. Then we have jobs, growth and investments. But with a stable currency. 

Of course, there is still a discontented minority of investors who want to return to the past. Historically, in the promotion of the saver we have right-wing groups and left-wing groups. But in the case of the crypto community, this current comes to us from the American right. The libertarians, in particular. This is a position that derives from classical liberalism and goes back to the time of Thomas Jefferson. Their hero is the self-sufficient individual, inspired by the Yeoman farmers and the pioneers. It is an ultra-conversational vision that promotes the separation of the state and the economy. As well as the return to the gold standard. The current still lives in a very small wing of the Republican Party (remember Ron Paul?) and in the Libertarian Party. And in economic matters they rely heavily on the Austrian school and the Chicago school. 

Of course, I am afraid that this is more of a political than an economic movement. I mean, these ideas are more popular among libertarians than among contemporary economists. In the investment world, these ideas are still alive in many gold beetles and many bitcoiners. Wall Street, for example, has fully subscribed to the path of the investor. But not just Wall Street. The way of the investor is the way of governments, the Republican Party, the Democratic Party, the banks, the multilateral organisations, the big corporations and, above all, the Federal Reserve.

However, a medium of exchange cannot claim to be totally autonomous. That would be pointless. It is like having a dollar note and saying that its exchange value is irrelevant. That is like buying a watch and not caring whether it gives the time or not. Or, it’s like creating a language that only its creator understands. 

I must confess that I personally do care about the price of Bitcoin. I’m not satisfied with the idea that a Bitcoin is a Bitcoin. Would it be worth a ton of gold or $100 million on a desert island? An apple can be an apple, because I can eat the apple. Because with money I can meet my needs, such as housing, food and so on. A strong dollar does not increase the price of Bitcoin.Employment, economic growth, production and liquidity do increase the price of Bitcoin. That’s why I choose the path of the investor.