Currencies For Dummies

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Currency is typically defined as a system of money in general use in a particular country.  This is the case in most countries today.  Historically, periods of exceptional turmoil or circumstances, such as WW II, have given rise to reversions to barter and tangible substitutes for currency. In some instances, even today, individuals have sought … Continued

Bitcoin as a Currency?

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Recent speculation relating to the possible acceptance of Bitcoin by Amazon led to another flurry of volatility for cryptocurrencies.  Investors might want to take a deep breath, step back, and consider if this makes sense, is even feasible, much less practical. Amazon has stated that the company has no immediate plan to accept Bitcoin for … Continued

The Crypto Conundrum

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The conundrum facing current and potential investors in crypto currencies is, valuation.  Bitcoin does not derive its value from any assets or earnings.  Hence, the value depends entirely on what an investor is willing to pay for it.  Valuation metrics for more established investment vehicles have been fairly well established. Bond valuations are based on … Continued

Investing?

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If you are eager to “invest” in Bitcoin you can do it with your credit card.  According to wikiHow, the first step is to create a Bitcoin wallet, or software that stores Bitcoin and other digital currencies.  When you are ready to purchase, find an online exchange that accepts credit cards.  While purchasing Bitcoin with … Continued

Bitcoin is Imploding? What’s Next?

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With bitcoin down 80% from the peak, and similar declines for other cryptocurrencies, what’s likely to happen next? We have previously commented on the cryptocurrency phenomenon, see Coin of the Realm, posted 16 Feb 2018 and Tulips and Bitcoins posted 16 Aug 2017. We have been somewhat less than enthusiastic regarding the investment merit of … Continued

Coin of the Realm

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Meriam-Webster defines “coin of the realm” as:  1. The legal money of a country, or 2.  Something valued or used as if it were money in a particular sphere. Investors and cryptocurrency enthusiasts should also consider another possible definition.  A country’s coin of the realm (legal tender) is what the government (King) says it is.  … Continued

Tulips and Bitcoins

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Paul Vigna, in a recent Wall Street Journal article, pointed out that “digital currency fans are partying like its 1999.” Perhaps Mr. Vigna may want to look further back than 1999, to 1637.  That is when, according to Wikipedia, during a period in the Dutch Golden Age, the contract prices for a single tulip bulb … Continued

What Happened to Bitcoin?

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According to Wikipedia, bitcoin is both a cryptocurrency and an electronic payment system invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto.  Bitcoin was introduced in October 2008 to a cryptography mailing list, and released as open-sourced software in 2009.  The system is peer-to-peer, allowing users to transact with … Continued