Category: #FIAT

Trilemma of International Finance

Trilemma of International Finance

The relative value of any two curren-
ciesโ€”the exchange rateโ€”is determined
through their sale and purchase on the global foreign exchange market. If government policy interferes with this market by changing the relative supply or demand of currencies, the exchange rate is managed.

The trilemma of international finance, is a restriction on government policy that follows immediately from the interaction of exchange rates, monetary policy and international capital flows.

Trilemma of International Finance

The trilemma states that any country can have only two of the following:

  • (1) Unrestricted international capital markets.
  • (2) A managed exchange rate.
  • (3) An independent monetary policy.

If the government wants a managed exchange rate but does not want to interfere
with international capital flows, it must use
monetary policy to accommodate changes
in the demand for its currency in order to
stabilize the exchange rate.

In the extreme, this would take the form of a currency board arrangement, where the domestic currency is fully backed by a foreign currency (as in the case of Hong Kong).

In such a situation, monetary policy can no longer be used for domestic purposes (it is no longer independent).

If a country wishes to maintain control over monetary policy to reduce domestic unemployment or inflation, for example, it must limit trades of its currency in the international capital market (it no longer has free international capital markets).

A country that chooses to have both unrestricted inter-national capital flows and an independent monetary policy can no longer influence its exchange rate and, therefore, cannot have a managed exchange rate.

Pieters and Vivanco (2016), government
attempts to regulate the globally accessible
bitcoin markets are generally unsuccessful,
and, as shown in Pieters (2016), bitcoin exchange rates tend to reflect the
market, not official exchange rates.

Should the flows allowed by bitcoin become big enough, all countries will have, by default, unrestricted international capital markets.

Thus, with bitcoin, (1) unrestricted
international capital markets is chosen by
default.

Therefore, the only remaining policy choice is between (2) managed exchange rates or (3) independent monetary policy.

If the country chooses (1) and (2), it must use reactive monetary policy to achieve the managed exchange rate.

If the country chooses (1) and (3), it must have a floating exchange rate because it has no remaining tools with which to maintain a managed exchange rate.

Ali et al. (2014), the European Central
Bank (2015) and the Bank for International
Settlements (2015) all concur that cryptocur-
rencies may eventually undermine monetary policy.

With ๐Ÿ’š

Convergence of blockchain with AI and IOT

IoT and AI are growing exponentially

Internet of Things – IoT

A future of transacting intelligent machines

โ€ข Individually, each of these technologies deserves all the attention they’re getting as enablers and disruptors

โ€ข But, taken together?

โ€ข Their transformative effect becomes multiplicative

โ€ข A future driven by machine connectivity, data exchange and commercial services:

  • IoT connects billions of machines and sensors generate unprecedented quantities of real-time data
  • AI enables the machines to act on data and trigger services
  • Blockchain functions are the transaction layer where data and service contracts are securely stored and payments for services are settled

How does blockchain support intelligent connected machines?

โ€ข Smart Contracts enable self-executing and self-enforcing contractual states

  • Custom financial instruments (tokens), records of ownership of an underlying physical asset (smart property), any
  • complex business logic that can be programmable
  • Can such applications be ideal for intelligent (AI) and connected (IoT) machines?
  • These machines are intelligent enough to negotiate contracts, but need a technology allowing them to securely sign and enforce them

โ€ข Digital currencies create new forms of money

  • Programmable and active
  • Will such money be ideal for intelligent (AI) and connected (IoT) machines?
  • These machines will need digital currency to pay for services assigned through the smart contracts

How will the three technologies work together?

IoT – Internet of Things

  • Sensors allow us to cost-effectively gather tremendous amounts of data.
  • Connectivity allows us to transmit/broadcast these data.
  • But, there is a missing element: intelligence to process these data.

AI – Artificial Intelligence

  • Intelligence at the very edges of the network (mini-brains).
  • Combine with IoT and you have the ability to recognize meaningful patterns buried in mountains of data in ways that would be impossible for most humans, or even non-AI algorithms, to do.
  • But, there is a missing element: a secure storage layer for data and a transaction layer for services

DLT (blockchain) – Distributed Ledger Technology

  • Decentralized governance, coupled with no single point of failure, disintermediation, unalterable and searchable records of events.
  • Digital currencies and tokenized custom financial instruments.
  • Combine with AI and IoT and you have a new world of autonomous systems interacting with each other, procuring services from each other and settling transactions.

The technology stack of the future

Technology Stack of the Future

Toward a world of machine commerce

A world of Machine Commerce

M2M will need SSI (self-sovereign identities) – for objects!

Human Identities types

Object identities can be SSI by default

  • Multi-source, multi-verifier
  • Digitally signed, verifiable credentials that can prove issuer, holder and status
  • Secure peer-to-peer connections (permanent or session-based)
  • Exchange full credentials, partial credentials or ZKPs derived from credentials

Next milestone: Decentralized Organizations (DOs)

DOs are good at:

  • Coordinating resources that do not know/trust each other (including hybrid
  • H/M)
  • Governing in a geography-agnostic, censorship-resistant manner
  • Enabling short-term or informal organizational structures  (networks/communities)
  • Tracking and rewarding contribution

Challenges

  • Jurisdictional issues
  • Legislating new types of work for humans and work rules for machines
  • Governance modalities, including external supervision

Challenges

New/upgraded system architectures

โ€ข From legacy to blockchain/AI/IoT-native systems
โ€ข Integration, interoperability, backward compatibility
โ€ข ROI obvious ex post, difficult ex ante โ€“ Bootstrapping

Advanced analytics capabilities

โ€ข As devices at the edge become smarter, the smart contracts enabled by blockchain platforms will require more advanced data analytics capabilities and gateways to the physical world.

New Business Models

  • Disruptive innovation will dominate โ€“ but not without boom-and-bust cycles and big failures along the way.
  • Winners will NOT be the ones focusing on efficiency gains, but on disruptive models.

Key takeaways

โ€ข IoT, AI and DLT (blockchain) are foundational and exponentially growing technologies

  • When combined, they will create a new internet of connected, intelligent and commercially transacting machines
  • An era machine-to-machine (M2M) and human-to-machine (H2M) commerce is likely to emerge, with profound consequences on social and economic dynamics
  • New forms of corporations or organizational formats (code-only, autonomous) will emerge

โ€ข There are numerous challenges that must be overcome

  • IoT has outpaced the human internet, but is still a largely passive, insecure and privacy-vulnerable network
  • AI has made huge leaps, but still requires immense computational resources and is largely incompatible with edge computing
  • DLT is a new technology, largely untested at scale; both smart contracts and digital assets lack the regulatory clarity required for mass adoption

This work is available under a Creative Commons Attribution-Non-Commercial-No Derivatives license
ยฉ University of Nicosia,
Institute for the Future, unic.ac.cy/blockchain

With ๐Ÿ’š

Au – ๐Ÿ’ฒ – โ‚ฟ

Gold is a chemical element with the symbol Au (from Latin: aurum) and atomic number 79, making it one of the higher atomic number elements that occur naturally.

It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile metal in a pure form.

Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements and is solid under standard conditions.

Gold often occurs in free elemental (native) form, as nuggets or grains, in rocks, veins, and alluvial deposits. It occurs in a solid solution series with the native element  silver (as electrum), naturally alloyed with other metals like copper and palladium, and mineral inclusions such as within pyrite.

Less commonly, it occurs in minerals as gold compounds, often with tellurium (gold tellurides).

A relatively rare element, gold is a precious metal that has been used for coinage,  jewelry, and other arts throughout recorded history.

In the past, a gold standard was often implemented as a monetary policy.

Still, gold coins ceased to be minted as a circulating currency in the 1930s, and the world gold standard was abandoned for a fiat currency system after 1971.

As of 2017, the world’s largest gold producer by far was China, with 440 tonnes per year.

A total of around 201,296 tonnes of gold exists above ground, as of 2020. This is equal to a cube with each side measuring roughly 21.7 meters (71 ft).

Gold’s high malleability, ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity have led to its continued use in corrosion-resistant electrical connectors in all types of computerized devices (its chief industrial use).

The world consumption of new gold produced is about 50% in jewelry, 40% in investments and 10% in industry.

Gold is also used in infrared shielding,  colored-glass production, gold leafing, and tooth restoration. Certain gold salts are still used as anti-inflammatories in medicine.

F I A T

Fiat money (from Latin: fiat, “let it be done”) is a type of money that is not backed by any commodity such as gold or silver, and typically declared by a decree from the government to be legal tender.

Throughout history, fiat money was sometimes issued by local banks and other institutions. In modern times, fiat money is generally established by government regulation.

Yuan dynasty banknotes are a
medieval form of fiat money

Fiat money does not have intrinsic value  and does not have use value. It has value only because the people who use it as a medium of exchange agree on its value. They trust that it will be accepted by merchants and other people.

Fiat money is an alternative to commodity money, which is a currency that has intrinsic value because it contains a precious metal such as gold or silver which is embedded in the coin.

Fiat also differs from representative money, which is money that has intrinsic value because it is backed by and can be converted into a precious metal or another commodity.

Fiat money can look similar to representative money (such as paper bills), but the former has no backing, while the latter represents a claim on a commodity (which can be redeemed to a greater or lesser extent).

Government-issued fiat money  banknotes  were used first during the 11th century in China.

Fiat money started to predominate during the 20th century.

Since President Richard Nixon‘s decision to default on the US dollar convertibility to gold in 1971, a system of national fiat currencies has been used globally.

Fiat money can be:

  • Any money that is not backed by a commodity.
  • Money declared by a person, institution or government to be legal tender, meaning that it must be accepted in payment of a debt in specific circumstances.
  • State-issued money which is neither convertible through a central bank to anything else nor fixed in value in terms of any objective standard.
  • Money used because of government decree.
  • An otherwise non-valuable object that serves as a medium of exchange (also known as fiduciary money.)

The term fiat derives from the Latin word  fiat, meaning “let it be done” used in the sense of an order, decree or resolution.

Bitcoin – Digital Gold

The most common, and best, ways to think about bitcoin is as “digital gold”.

Like gold, bitcoin doesn’t rely on a central issuer, can’t have its supply manipulated by any authority, and has fundamental properties long considered important for a monetary good and store of value.

Unlike gold, bitcoin is extremely easy and cheap to “transport”, and trivial to verify its authenticity.

Bitcoin is also “programmable”. This means custody of bitcoin can be extremely flexible. It can be split amongst a set of people (“key holders”), backed up and encrypted, or even frozen-in-place until a certain date in the future. This is all done without a central authority managing the process.

You can walk across a national border with bitcoin “stored” in your head by memorizing a key.

The similarities to gold, plus the unique features possible because bitcoin is purely digital, give it the “digital gold” moniker.

Sharing fundamental properties with gold means it shares use-cases with gold, such as hedging inflation and political uncertainty.

But being digital, bitcoin adds capabilities that are especially relevant in our modern electronic times.

The world does indeed need a digital version of gold.

People’s Money
With ๐Ÿ’š

Bitcoin surges after accidentally released Treasury statement

Bitcoin surges after accidentally released Treasury statement

Prices of Bitcoin and other cryptocurrencies have soared following the apparent accidental release of a U.S. Treasury statement on Bidenโ€™s expected executive order on digital assets.

The premature statement by Treasury Secretary Yellen, which was dated March 9, hasย since been removed.

โ€œPresident Bidenโ€™s historic executive order calls for a coordinated and comprehensive approach to digital asset policy.ย  This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.ย 

It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.โ€

Quote from the now deleted statement

At the time of writing, Bitcoin is up nearly 8% in the last 24 hours.

Bidenโ€™s executive order aims to regulate the crypto market while also reaping the benefits of digital currencies.

So far, like most countries in the world, the US has tended to react to developments and has limited itself to pointing to a political-economic approach that is yet to be developed.

Statement by Secretary of the Treasury Janet L. Yellen on President Biden’s Executive Order on Digital Assets

March 9, 2022

WASHINGTON –ย  U.S. Secretary of the Treasury Janet L. Yellen released the following statement on President Biden’s executive order on digital assets.ย 

“President Bidenโ€™s historic executive order calls for a coordinated and comprehensive approach to digital asset policy.ย  This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.ย  It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.

Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems. Weโ€™ll also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place. And, because the questions raised by digital assets often have important cross-border dimensions, weโ€™ll work with our international partners to promote robust standards and a level playing field.

This work will complement ongoing efforts by Treasury. Already, the Department has worked with the Presidentโ€™s Working Group on Financial Markets, the FDIC, and OCC to study one particular kind of digital asset โ€“ stablecoinsโ€“ and to make recommendations. Under the executive order, Treasury and interagency partners will build upon the recently published National Risk Assessments, which identify key illicit financing risks associated with digital assets.ย 

As we take on this important work, weโ€™ll be guided by consumer and investor protection groups, market participants, and other leading experts. ย Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”

Sources:

https://forbes.com/

https://disclose.tv/

https://bloomberg.com/

https://web.archive.org/web/20220309014601/https://home.treasury.gov/news/press-releases/jy0643

With ๐Ÿ’š

Welcome…

To the rabbit hole…

Why this crazyness with rabbits ?!? And their holes, you would ask ?!? Why is the rabbit hole so deep ?ยฟ

And what does the rabbit hole has to do with that BitCorn thingย  I keep hearing about all over the place ?ยฟ

I like to start from the begining, as I think so I am ๐Ÿ˜‹๐Ÿ˜‚

Rabbit Hole is a play written by David Lindsay-Abaire. It was the recipient of the 2007 Pulitzer Prize for Drama. The play premiered on Broadway in 2006, and it has also been produced by regional theatres in cities such as Los Angeles, Philadelphia and Pittsburgh. The play had its Spanish language premiere in San Juan, Puerto Rico in Autumn of 2010.

The play deals with the ways family members survive a major loss, and includes comedy as well as tragedy. Cynthia Nixon won the 2006 Tony Award for Best Performance by a Leading Actress in a Play for her performance as Becca in the New York production, and the play was nominated for several other Tony awards.

Rabbit Hole

A situation, journey, or process that is particularly strange, problematic, difficult, complex, or chaotic, especially one that becomes increasingly so as it develops or unfolds.

An allusion to “Alice’s Adventures in Wonderland” by Lewis Carroll, it is used especially in the phrase “(go) down the rabbit hole.”

Overhauling the current tax legislation is a rabbit hole I don’t think this administration should go down at this point.I’ve stayed away from drugs and alcohol since coming to college. I have an addictive personality, so I decided to just avoid that rabbit hole altogether.

What does rabbit hole mean?

Used especially in the phrase going down the rabbit hole or falling down the rabbit hole, a rabbit hole is a metaphor for something that transports someone into a wonderfully (or troublingly) surreal state or situation.

On the internet, a rabbit hole frequently refers to an extremely engrossing and time-consuming topic.

Where does rabbit hole come from?

Alice falling down a hole with a jar in hand
Alice’s Adventures in WonderLand

Literally, a rabbit hole is what the animal digs for its home. The earliest written record of the phrase dates back to the 17th century. But the figurative rabbit hole begins with Lewis Carrollโ€™s 1865 classic, Aliceโ€™s Adventures in Wonderland.

In its opening chapter, โ€œDown the Rabbit-Hole,โ€ Alice follows the White Rabbit into his burrow, which transports her to the strange, surreal, and nonsensical world of Wonderland.

Since then, Carrollโ€™s rabbit hole has proved a popular and useful reference. The Oxford English Dictionary finds the first allusive rabbit hole in a 1938 edition of The Yale Law Journal: โ€œIt is the Rabbit-Hole down which we fell into the Law, and to him who has gone down it, no queer performance is strange.โ€

Over much of the 20th century, rabbit hole has been used to characterize bizarre and irrational experiences. Itโ€™s especially used to reference magical, challenging, and even dangerous places or positions, similar to Carrollโ€™s topsy-turvy Wonderland.

Rabbit hole has many metaphorical applicationsโ€”from frustrating red tape to the mind-bending complexity of science to hallucinations during altered statesโ€”all united by a common sense of passing into some labyrinthine, logic-defying realm that, once entered, is hard to get out of.

One can fall down the rabbit hole of government bureaucracy, healthcare, obtaining a green card, tax law, the political economy of modern Japan, puberty, college admissions, or quantum mechanics.

If youโ€™re Neo in the hit film The Matrix, you can take the red pillโ€”a pill that shows you the truth, as opposed to the blue pill, which keeps you in ignoranceโ€”and โ€œsee how deep the rabbit hole goes.โ€

In a related note, some people literally take pills and go down the rabbit hole of a psychedelic drug trip.

But as Kathryn Schulz observed for The New Yorker in 2015, rabbit hole has further evolved in the information age: โ€œThese daysโ€ฆwhen we say that we fell down the rabbit hole, we seldom mean that we wound up somewhere psychedelically strange. We mean that we got interested in something to the point of distractionโ€”usually by accident, and usually to a degree that the subject in question might not seem to merit.โ€

Thanks to the abundance, variety, and instant access of content online, many fall down internet rabbit holes which are often spectacularly, and addictively, niche: scary stories, obscure conspiracy theories, or famous last meals, for instance.

Other rabbit holes tend to be opened up by specific services or social media, which serve users item after item, link after link: Wikipedia, Netflix, Amazon, Facebook, YouTube, and so forth.

These rabbit holes have become so common that people sometimes swap out rabbit for the name of the particular site, e.g. โ€œIโ€™ve fallen down an Instragram holeโ€ or โ€œIโ€™m falling down a wikihole.โ€

Who uses rabbit hole?

From formal documents to internet status updates, rabbit hole is a very popular and widespread expression. Unlike earlier iterations of the metaphor, internet rabbit holes convey less a sense of weirdness, disorientation, or difficulty than they do of an intensely captivating diversion.

Rabbit hole is also showing increasing use as a modifier, e.g. a rabbit-hole question or phenomenon.

Now… that we have a basic and broader understanding about this Hole and it’s rabbit that digged it ๐Ÿ˜‹๐Ÿ˜‚

Let me show you a journey that I took to get to know, understand, admire, be amazed and support the BitCorn everybody is so crazy about …

Bitcoin Glossary

Block

Blocks are found in the Bitcoin blockchain. Blocks connect all transactions together. Transactions are combined into single blocks and are verified every ten minutes through mining. Each subsequent block strengthens the verification of the previous blocks, making it impossible to double spend bitcoin transactions (see double spend below).

BIP

Bitcoin Improvement Proposal or BIP, is a technical design document providing information to the bitcoin community, or describing a new feature for bitcoin or its processes or environment which affect the Bitcoin protocol. New features, suggestions, and design changes to the protocol should be submitted as a BIP. The BIP author is responsible for building consensus within the community and documenting dissenting opinions.

Blockchain

The Bitcoin blockchain is a public record of all Bitcoin transactions. You might also hear the term used as a โ€œpublic ledger.โ€ The blockchain shows every single record of bitcoin transactions in order, dating back to the very first one. The entire blockchain can be downloaded and openly reviewed by anyone, or you can use a block explorer to review the blockchain online.

Block Height

The block height is just the number of blocks connected together in the block chain. Height 0 for example refers to the very first block, called the โ€œgenesis block.โ€

Block Reward

When a block is successfully mined on the bitcoin network, there is a block reward that helps incentivize miners to secure the network. The block reward is part of a โ€œcoinbaseโ€ transaction which may also include transaction fees. The block rewards halves roughly every four years; see also โ€œhalving.โ€

Change

Letโ€™s say you are spending $1.90 in your local supermarket, and you give the cashier $2.00. You will get back .10 cents in change. The same logic applies to bitcoin transactions. Bitcoin transactions are made up of inputs and outputs. When you send bitcoins, you can only send them in a whole โ€œoutput.โ€ The change is then sent back to the sender.

Cold Storage

The term cold storage is a general term for different ways of securing your bitcoins offline (disconnected from the internet). This would be the opposite of a hot wallet or hosted wallet, which is connected to the web for day-to-day transactions. The purpose of using cold storage is to minimize the chances of your bitcoins being stolen from a malicious hacker and is commonly used for larger sums of bitcoins.

Confirmation

A confirmation means that the bitcoin transaction has been verified by the network, through the process known as mining. Once a transaction is confirmed, it cannot be reversed or double spent. Transactions are included in blocks.

Cryptography

Cryptography is used in multiple places to provide security for the Bitcoin network. Cryptography, which is essentially mathematical and computer science algorithms used to encrypt and decrypt information, is used in bitcoin addresses, hash functions, and the blockchain.

Decentralized

Having a decentralized bitcoin network is a critical aspect. The network is โ€œdecentralized,โ€ meaning that itโ€™s void of a centralized company or entity that governs the network. Bitcoin is a peer-to-peer protocol, where all users within the network work and communicate directly with each other, instead of having their funds handled by a middleman, such as a bank or credit card company.

Difficulty

Difficulty is directly related to Bitcoin mining (see mining below), and how hard it is to verify blocks in the Bitcoin network. Bitcoin adjusts the mining difficulty of verifying blocks every 2016 blocks. Difficulty is automatically adjusted to keep block verification times at ten minutes.

Double Spend

If someone tries to send a bitcoin transaction to two different recipients at the same time, this is double spending. Once a bitcoin transaction is confirmed, it makes it nearly impossible to double spend it. The more confirmations that a transaction has, the harder it is to double spend the bitcoins.

Full Node

A full node is when you download the entire blockchain using a bitcoin client, and you relay, validate, and secure the data within the blockchain. The data is bitcoin transactions and blocks, which is validated across the entire network of users.

Halving

Bitcoins have a finite supply, which makes them scarce. The total amount that will ever be issued is 21 million. The number of bitcoins generated per block is decreased 50% every four years. This is called โ€œhalving.โ€ The final halving will take place in the year 2140.

Hash Rate

The hash rate is how the Bitcoin mining network processing power is measured. In order for miners to confirm transactions and secure the blockchain, the hardware they use must perform intensive computational operations which is output in hashes per second.

Hash (txid)

A transaction hash (sometimes referred to as a transaction ID or txid) is a unique identifier that can be used on any block explorer to look up all of the public details of a particular transaction. Every on-chain transaction has a unique hash made up of a long string of alphanumeric characters.

Mining

Bitcoin mining is the process of using computer hardware to do mathematical calculations for the Bitcoin network in order to confirm transactions. Miners collect transaction fees for the transactions they confirm and are awarded bitcoins for each block they verify.

Pool

As part of bitcoin mining, mining โ€œpoolsโ€ are a network of miners that work together to mine a block, then split the block reward among the pool miners. Mining pools are a good way for miners to combine their resources to increase the probability of mining a block, and also contribute to the overall health and decentralization of the bitcoin network.

Private Key

A private key is a string of data that shows you have access to bitcoins in a specific wallet. Think of a private key like a password; private keys must never be revealed to anyone but you, as they allow you to spend the bitcoins from your bitcoin wallet through a cryptographic signature.

Proof of Work

Proof of work refers to the hash of a block header (blocks of bitcoin transactions). A block is considered valid only if its hash is lower than the current target. Each block refers to a previous block adding to previous proofs of work, which forms a chain of blocks, known as a blockchain. Once a chain is formed, it confirms all previous Bitcoin transactions and secures the network.

Public Address

A public bitcoin address is cryptographic hash of a public key. A public address typically starts with the number โ€œ1.โ€ Think of a public address like an email address. It can be published anywhere and bitcoins can be sent to it, just like an email can be sent to an email address.

RBF

RBF stands for Replace By Fee, and refers to a method that allows a sender to replace a โ€œstuckโ€ or unconfirmed transaction with a new one that uses a higher fee. This is done to make sure a transaction confirms as quickly as possible. The โ€œreplacementโ€ transaction uses the same inputs as the original one. This is not considered a double spend, as the receiving address(es) typically remain the same.

Satoshi Nakamoto

Bitcoinโ€™s existence began with an academic paper written in 2008 by a developer under the name of Satoshi Nakamoto. Satoshi is the name used as the original inventor of Bitcoin.

Transaction

A transaction is when data is sent to and from one bitcoin address to another. Just like financial transactions where you send money from one person to another, in bitcoin you do the same thing by sending data (bitcoins) to each other. Bitcoins have value because itโ€™s based on the properties of mathematics, rather than relying on physical properties (like gold and silver) or trust in central authorities, like fiat currencies. 

Wallet

Just like with paper dollars you hold in your physical wallet, a bitcoin wallet is a digital wallet where you can store, send, and receive bitcoins securely. There are many varieties of wallets available, whether youโ€™re looking for a web or mobile solution. Ideally, a bitcoin wallet will give you access to your public and private keys. This means that only you have rightful access to spend these bitcoins, whenever you choose to.

Sources:

https://dictionary.com/

https://wikipedia.com/

https://blockchain.com/

Digital Art by Free Spirit

Made with ๐Ÿ’š by Free Spirit

โœŒ & ๐Ÿ’š

With ๐Ÿ’š

Veritas … In pictures…

Fear is Sickness
Gold is Money…
Uni-Verse
Success
Genes that erase memories
Researches can erase painful memories from the brain
Scientists deletes “Fearful” memories of Rats
Pokemon Go users give away all privacy rights
“Broken People” = Raw  Material
Robert Noyce
Compounding Interest
Simple & Compound Interest Formula
Simple Interest & Compound Interest
PBIS Rewards
ROI – Return On Investment
Play the role of a fool…
Occult – Anatomy
20 Fastest Growing + Declining Jobs
Causes and Effects of Inflation
The History of Logistics
SSG 16.9 – Legal Identity for all
Scientists call for Protection from Non-Ionizing Electromagnetic Field Exposure
Protest’s are Illegal and punished with Jail Time in a “Free” Society !!!?ยฟ!!!
Human Value Chain
Opposition to the use of Blockchain Identity – Part 1
Opposition to the use of Blockchain Identity – Part 2
Human Capital Performance Bond
Strategies for Investing in Undervalued Human Capital
U.S Army TRADOC G-2
Digitizing Government-to-Person (G2P) Payments

Will be Always Updated !!!

Made with ๐Ÿ’š by Free Spirit

โœŒ & ๐Ÿ’š

Free Spirit’s Wondering…

Some moments of my online wondering…

R&D, wisdom, knowledge, curiosities, answers and many more questions ๐Ÿ™‚๐Ÿคฃ๐Ÿ™ƒ

You have a Choice !!!
Power to the People !!!
Wake the F… Up !!!
No more excuses, you have a choice now !!!
WHO as in WORLD HEALTH ORGANISATION
P F I Z E Rย  Insider
Poem of the Legacy
Being Curious…
Of course it doesn’t comply…
The Problem with centralized Social-Media
10 Principles of Strategic Leadership
Global Reserve Currency
Psychology of a Market Cycle
Success
Success
Triangle of Success
Don’t plan for travelling when old…๐Ÿ˜‹๐Ÿ˜ณ๐Ÿ˜‹
Be like a Tree…
If anyone understands this please enlighten me too ๐Ÿ˜Š๐Ÿคญ๐Ÿค—
http://www.revelationtimelinedecoded.com
ESG
For those that think WE are the Center of the Universe ๐Ÿคฃ๐Ÿ˜…๐Ÿ˜‚
Confident vs. Insecure People
Day by day…
Managing Complex Change
The Cone of Learning
The Hero’s Journey
Electromagnetic Field of the Heart
I-Ching
Language creates Reality
Sex Organs of the Machine World
Philosopher’s Stone
Isaac Newton
Abracadabra
Singularity
Multi-Mind Thought Control Process
APPLE INC.
Retrocausality
CERN
EGO
SYSCOIN ECOSYSTEM
JagStein
SysCoin
Bitcoin might bury FIAT ๐Ÿ™‚ ๐Ÿคญ ๐Ÿ™ƒ
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F I A T

Fiat moneyย (fromย Latin:ย fiat,ย “let it be done”) is a type of money that is not backed by any commodity such as gold or silver, and typically declared by aย decreeย from the government to beย legal tender.

Throughout history, fiat money was sometimes issued by local banks and other institutions.

In modern times, fiat money is generally established by government regulation.

Yuan dynastyย banknotes are a medieval form of fiat money.

Fiat money does not haveย intrinsic valueย and does not haveย use value.

It has value only because the people who use it as aย medium of exchangeย agree on its value.

They trust that it will be accepted by merchants and other people.

Fiat money is an alternative toย commodity money, which is a currency that has intrinsic value because it contains a precious metal such as gold or silver which is embedded in the coin.

Fiat also differs fromย representative money, which is money that has intrinsic value because it is backed by and can be converted into a precious metal or another commodity.

Fiat money can look similar to representative money (such as paper bills), but the former has no backing, while the latter represents a claim on a commodity (which can be redeemed to a greater or lesser extent).

Government-issued fiat moneyย banknotesย  were used first during the 11th century inย China.

Fiat money started to predominate during the 20th century. Sinceย President Richard Nixon‘s decision toย default on the US dollar convertibility to goldย in 1971, a system of national fiat currencies has been used globally.

Fiat money can be:

  • Any money that is not backed by a commodity.
  • Money declared by a person, institution or government to beย legal tender,ย  meaning that it must be accepted in payment of a debt in specific circumstances.
  • State-issued money which is neither convertible through aย central bankย to anything else nor fixed in value in terms of any objective standard.
  • Money used because of government decree.
  • An otherwise non-valuable object that serves as a medium of exchangeย (also known asย fiduciaryย money.)

The termย fiatย derives from theย Latinย wordย fiat, meaning “let it be done”[10]ย used in the sense of an order, decree[2]ย or resolution.[11]

The word “F๊ŸพAT”, with aย long Iย and an Aโ€“T ligature.
“Gold Is Money” – J.P Morgan, 1912
Issue and Control a Nation’s Money… M.A. Rothschild
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The War for a Free Internet

The War for a Free Internet

David Vorick

Feb 14

” I came of age on the Internet. By the age of 13, I had more friends whose faces I would never see than I had peers in the classroom. Most of them wonโ€™t realize today who I am even if they are reading this now. Most of them didnโ€™t realize I was decades their junior.

When my father was growing up, his freedom was his bicycle. It gave him access to friends, to a job, freedom from his parents, and ultimately space to carve out a personality that he could call his own. He wanted nothing more than to pass these gifts along to me, and it was often to his dismay and frustration that I never found the same joy in my bike that he had found in his.

I was too young to realize it at the time, but I had received the same gifts as my father.

Where my fatherโ€™s freedom was his bicycle, my freedom was my keyboard.

A denizen of dozens of forums and hundreds of websites, countless hours each weekend contributed elements to my personality that raised me to be someone beyond anything I could have become in my hometown alone.

As middle school became high school, my online hours began to exceed my offline hours. By my sophomore year of college I was spending more than 80 hours per week on the Internet.

The Internet has become the keystone of modern society, a fact that has not been overlooked by our corporate giants.

As the 2010โ€™s progressed, the Internet became a massive land grab. A hundred thousand independently operated forums became one front page of the Internet.

Personal cards, handwritten letters, and cozy phonecalls turned into a single wall that wished you โ€œHappy Birthdayโ€ 1,000 times on what was often not even the right day.

What used to be an endless exploration of hand curated forums and webpages turned into a bottomless pit of AI generated filth carefully crafted by teams of PhDs with the sole intention of getting you to stare at your phone for just a little bit longer.

The modern Internet has been absolutely steamrolled by the likes of Google, Facebook, and Amazon.

As these platforms have festered, theyโ€™ve made it clear that weโ€™re here to play by their rules.

They decide which of our friends we get updates from.

They decide how large a nose ring can be before a content creator gets demonetized and loses their livelihood.

An uncomfortable percentage of our time is spent under the tyranny of whatever logic was implemented in the pursuit of higher profits next quarter.

Somewhere underneath it all, real people are living every day, taking what breaths they can between the inescapable deluge of content spawning from a clinical addiction to their devices.

The next wave of teenagers are coming of age in this environment and they are suffocating. Suicide rates are up almost 50% since 2007 for people under the age of 24.

The modern Internet is making us miserable.

Our overlords have captured our souls by bringing us gifts of amazing technology and bundling with those gifts chains and cages that capture our minds and manipulate us to maximize their bottom line.

The time has come to stand up for ourselves, for our health, and for the next generation.

The time has come to start the War for a Free Internet. “

WRITTEN BY

David Vorick

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  • International payment using the radio waves
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Mining Profitability Formula

Yes the profitability changes second to second with the price of bitcoin and  you cant use this information to forecast…

Reward = ((HashRate * Block_Reward) / Current_Difficulty) * (1 – Pool_Fee) * 3600

BTC total daily payout is 6.25 BTC * 6 times per hour * 24hours…on average = 900 BTC mined every day.ย 

That has to be spread out, on average, evenly across then ENTIRE network.ย  Granted, luck is involved, so it isn’t exactly even, but on average, it should be.

If network is running at 17,608,758 TH/s, and every TH gets an even share of the reward, then that would be 1800BTC / 17,608,758 TH/s = .00010222 BTC/(TH/s).


You then take that figure and multiply by number of TH for miner, and then you get daily BTC revenue ; )

No, Governments Canโ€™t do a Better Job Developing Crypto

No, Governments Canโ€™t do a Better Job Developing Crypto

Would a state-backed cryptocurrency be better than its decentralized counterpart?

International media has already rolled out their opinions on the matter. Itโ€™s a YES-IT-CAN.

The opinions find theirย inspirations in comments made byย Christine Lagarde last week. The head of the International Monetary Fund (IMF) said that a government-backed cryptocurrency would eliminate the issues of trust that have clogged the decentralized cryptocurrencies like Bitcoin.

New York Times reacted to the IMF chiefโ€™s remarks, calling it โ€œa hopeful sign for digital tokens,โ€ while predicting it could โ€œhave a chilling effect on existing, nongovernmental tokens.โ€

The Guardian offered its editorial space to a long-time Bitcoin critic and economist Nouriel Roubini to furtherย his plan. He outrightย called cryptocurrencies worthless when compared to central bank digital currencies (CBDC).โ€œIf a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or [actually] decentralized,โ€ Roubini claimed.

The comments mentioned above appear at a time when the cryptocurrency market cap has plunged by more than 70 percent since its all-time high.ย 

It has allowed critics to jump to the conclusion that decentralized digital currencies, mainly Bitcoin and Ethereum, have no intrinsic value, that they are highly speculative unlike central-bank issued fiat money.

Yet, critics have ignored the whys and whats that prompted the launch of decentralized assets at the first place.

They have been unable to respond to how Federal Reserve stimulus programmes, secret bailouts, and money production have destroyed the value of the US Dollar.

Their focus has turned more towards proving Bitcoin as a sugar-coated false promise of a financial revolution while ignoring the very bads of the existing financial system.

Economy believes that an assetย has value when it checks scarcity and utility.

The US Dollar lacks scarcity, for its supply is governed by a centralized body called Federal Reserve. There is no check on how many dollars would get printed, allowing insiders to manipulate a greenback-backed market on their whims.

Bitcoin, on the other hand, has a set cap of 21 million tokens. Its supply is governed by mathematical algorithms, meaning no corrupt human involvement would be able to topple it.

As far as the use-cases are concerned, Bitcoin has been constantly looked at for its potential of becoming a store-of-valueย asset like Gold, while being constantly considered for settling cross-border payments despite its price volatility.

The critics then say that bitcoin has no intrinsic value.

But even gold and paper money suffers from the same stigma.

According to the World Council, only 15 percent of the global Gold supply is used in industrial applications. The rest goes into making bars, bullions, and jewelry โ€“ mainly because people trust they have value.

Trust is the Only Factor

The launch of Bitcoin was a response to a global financial crisis in which โ€“ letโ€™s accept it โ€“ banks had f***ed up the economy.

The digital currency โ€“ more or less โ€“ follows the philosophy of the Austrian Monetary Theory.

According to it, money can be sound only when its supply is limited. It believes that money should not be controlled by the state.

These facts are missing from the reports and opinion pieces of anti-Bitcoin economists.

The Federal Reserve and central bankers believe that only they have the right to print money.

Bitcoin is only a beginning towards breaking the myth.

As long as the central banks do not innovate and protect people against currency inflation โ€“ as evident in the case of Zimbabwe and Venezuela โ€“ there is no chance they would be able to outrun crypto.

People need to trust their banks, but mainstream media and economists are avoiding a broader discussion.

The next financial crisis should bring more evidence to the theory. No rush.

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