Feb 012016
– Commodity Trade Mantra – http://www.commoditytrademantra.com – How the Blockchain and Gold Can Work Together Posted By Rajesh J. Shah On February 1, 2016 @ 7:49 pm In Bitcoin,Gold Trading | No Comments   How the Blockchain and Gold Can Work Together A look into monetary history shows that people, when given freedom of choice, opted for precious metals as money. This doesn’t come as a surprise. Precious metals have the physical properties a medium must have to serve as legal tender: They are scarce, homogenous, durable, divisible, mintable, and transportable. They are held in high esteem and represent considerable value per unit of weight. Gold fulfills these requirements par excellence, and this is why it has always been peoples’ first choice in terms of money. Gold has proven its merits as money for millennia; it is the ultimate means of payment. More recently, gold has been replaced by the state’s unredeemable fiat money — for reasons rather more political than economic. The state prefers money whose value can be altered at will — say, to influence overall demand, redistribute income, and to benefit some at the expense of the many. Gold money stands in the way of such machinations. Fiat money doesn’t. On the contrary, fiat money can simply be printed up; can be created out of thin air. Fiat money has serious economic and ethical drawbacks, though. It is chronically inflationary, widens the gap between poor and rich, triggers boom-and-bust cycles, and compounds the economy’s debt burden. Most important, a fiat money regime allows the state to expand actually without limit, over time potentially transforming even a minimum state into a maximum state at the expense of individual liberty and freedom. In the wake of the most recent financial and economic crisis of 2007–2008, many people have become concerned that their savings, mostly invested in fiat-denominated bank accounts and bonds, could be devaluated. This has prompted a search for “good” money. Somewhat new to the mix are the digital currencies, most famous of which is the virtual unit “bitcoin.” It is a digital currency generated by decentralized, internet-based computers rather than a central authority. Transactions through digital currencies such as bitcoin are confirmed, or validated, by a decentralized consensus system that uses a “blockchain.” The latter is essentially a public digital ledger, an account statement for transactions among computers. The blockchain is saved on many computers so that it is practically impossible to manipulate. In the case of (more…)
Mar 092015
This was originally posted on Internationalman.com http://www.internationalman.com/articles/capital-punishment by Jeff Thomas Those who trade liberty for security deserve neither and will lose both.John Adams In the end, more than freedom, they wanted security. They wanted a comfortable life, and they lost it all—security, comfort, and freedom. When the Athenians finally wanted not to give to society but for society to give to them, when the freedom they wished foremost was freedom from responsibility, then Athens ceased to be free and was never free again. Edward Gibbon, English historian and member of Parliament, commenting on Ancient Athens in The History of the Decline and Fall of the Roman Empire, published in six volumes between 1776 and 1788. Libertarians (myself included) now grind their teeth on a daily basis, as they watch the parade of irresponsible economic measures concocted by First World political and banking leaders. Each measure seems more outrageous than the last, both in its inability to correct the situation and its outright thievery from the purse of the populace. The EU recently announced that they will introduce a level of quantitative easing (QE) that promises to be the economic equivalent of an overdose to a heroin addict. In addition, the EU, the US, Canada, and other First World countries have created bail-in legislation that will allow their bankers to literally steal the funds of their depositors. Further, political leaders on both sides of the Atlantic have announced that pensioners’ funds are “in danger,” and their solution is to make it mandatory for the funds to contain a percentage of investment in government bonds—an investment that promises to go off the proverbial cliff in the coming years. So, what’s the plan? Are the leaders of the world’s most “advanced” nations planning collective economic and political suicide? Or are they simply so stupid/arrogant/out of touch with reality—pick your explanation—that they just don’t understand thateconomic collapse is now baked in the cake and it is now only a question of time? Or do they have an alternate plan? I must confess that I’m cynical enough to regard many of the leaders in question as being stupid, arrogant, and out of touch with reality. However, I do also believe that some of them are clever enough and devious enough to have a plan in place as to how they might continue to not only hold their power, but expand upon it. (That desire is, of course, a virtually universal truth, as regards (more…)
Nov 172014
This article presents more evidence of the impending collapse of the Global Fiat Currency. There is history in this article about the cycles of currency and how they transitions. one to another. Here is the question, “What’s in your wallet?” Money or Currency. Mike The Future of Money By Graig Satell In the early 1970’s, the financial industry was transformed by a strange confluence of events. In 1973, The Chicago Board of Trade opened the first options trading floor and, almost as if on cue, just a month later, the Nobel prizewinning Black Scholes options pricing model was published. Soon after, Hewlett Packard came out with the first pocket computer small enough for traders to use on the floor and that, combined with a glut of engineering talent made available by the closing of the Apollo space program, created a wave of revolutionary change that is still being felt even today. Almost overnight, finance was transformed from a clubby world of cozy relationships to a mathematical one of complex securities, abstract formulas and computing power. Now, a generation later, the financial industry is about to be remade once again, except this time, it is not obscure financial securities that are being transformed, but very nature of money itself. What is Money? The concept of money dates back to the beginning of civilization. The Israeli currency, the shekel, was originally a measure of weight (11 grams) and each shekel coin originally corresponded to that amount of silver. Coins were stamped to certify that they contained the required weight, infusing transactions, even among strangers, with an element of trust. It’s easy to see how money caught on. It was a much more efficient way to transact business than bartering one good for another. Money was also a useful store of wealth, certainly more convenient than livestock or grains. Those two core functions—a medium of exchange and a store of value—still define money today. The nature of money changed after the Bretton Woods Conference in 1944, when most countries tied the value of their currencies to the US dollar, rather than to gold or silver. When the US went off the gold standard in 1971, all currencies essential became fiat moneys, with their value derived from the governments that issue them rather than from commodities. Many people object to the concept of fiat money because of the control governments have over them. Central (more…)
Dec 132013
Chinese yuan dominates global bitcoin trade Tuesday, 03 December, 2013, 1:10pm Business›Banking & Finance CURRENCIES Patrick Boehler patrick.boehler@scmp.com With the digital currency’s value rising sharply, 58 per cent of day’s global volume done in yuan as non-professionals wade into new market The yuan accounts for most of the trade in bitcoins as trading of the unregulated digital currency soars in the world’s second-largest economy. By noon yesterday, about 58 per cent of the global trade during the preceding 24 hours occurred on exchanges trading the mainland currency, according to open-source research project BitcoinAverage [1]. A Bitcoin logo is seen at the window of a restaurant that accepts Bitcoin, a form of digital currency, as payment in San Francisco. Photo: Reuters[2] According to the aggregator of market data, China’s trading volume in the period reached 827 million yuan (HK$1 billion). Trades in US dollars account for roughly 37 per cent of global volume. Trades in euros account for slightly less than 2 per cent. No other currency accounts for more than one per cent of trade, according to BitcoinAverage. Fortunes have already been made in China via the virtual currency. The value of a bitcoin in China soared 861.02 per cent from 844.75 yuan on September 3, the earliest data available on BitcoinAverage, to its peak value last Friday of 7273.47 yuan. The virtual currency was trading at between 6,300 and 6,400 yuan on Tuesday morning on major Chinese exchanges. Unlike with previous virtual currencies, China’s deputy central bank governor Yi Gang said last month that bitcoins could be freely traded, although the government would not accept them as currency.  A provincial subsidiary of state-run China Telecom even said it would accept payment in the virtual currency. Jiangsu Telecom said last week it would accept the virtual currency for pre-orders of a new Samsung phone[3]. “China is driving the volume predominantly for two reasons: speculation and mining,” said Zennon Kapron, managing director fo the Shanghai-based financial advisory firm Kapronasia. “Returns on Bitcoin this year have surpassed real estate which previously was the best performing mainstream asset class in China, which has naturally attracted more attention and further driven the price up.” Kapron said it was natural for China, the world’s biggest manufacturer of bitcoin mining equipment, to play a large role in the trade. Li Lin, head of the Beijing-based Huobi trading platform, told the Beijing Morning Post last week that the majority of new bitcoin (more…)