Friday Crypto's virtue is that they have a degree of anonymity and can be used to shift funds to less unfriendly jurisdictions. A lot of 'money' was got out of China and into Australian real estate using cryptos. Apparently anonymity is no longer certain, though I don’t know that personally. My quibble with the Bitcoin aficionados is the claim that Bitcoin’s … [Read more...]
Gold and Bitcoin
Thursday I am asked regularly for my opinion on bitcoin etc. Even two of my sons have recently expressed interest. I understand the thrill of a speculation that is going through the roof, but I also understand the danger. It is a speculation, not an investment. A speculation requires a bigger fool and in a world of peak stupid that has been a good bet. But when the … [Read more...]
Bitcoin or Goats
Tuesday I listened to a speaker a few days ago explain that Gold was money because it was ‘the most marketable good’ (the preferred trading good in the marketplace). He then explained that silver was what was actually used as most people didn’t own Gold and it was too valuable for marketplace trades. If Menger’s theory that money is so by virtue of the fact that it is … [Read more...]
From Gold to Bitcoin?
Wednesday https://www.bloomberg.com/news/articles/2017-11-20/can-bitcoin-survive-an-apocalypse The naïve views expressed in this article are disturbing. Bitcoin better than Gold after a social breakdown? Yes, a non-government controlled currency is a good thing, but bitcoin is not money. It is just a medium of exchange – a very unstable and difficult to use … [Read more...]
The Value of Everything
Thursday I read a piece by Keith Weiner a few days ago mentioning bitcoin and Gold. “Whatever the merits of gold may be, going up faster than bitcoin is not among them.” Readers of this blog will know that I am a big fan of KW; he is that rarest of beasts, an original and clear thinker, and not just on the subject of Gold. His piece brought to mind something that … [Read more...]