“The Hitchhiker’s Guide to the Galaxy itself has outsold the Encyclopedia Galactica because it is slightly cheaper, and because it has the words “DON’T PANIC” in large, friendly letters on the cover.”

Denying reality could be devastating! Let’s step back and look at the facts and assess what the current situation is, so we could make a rational decision on what to do next. It turned out that we were wrong, and unlike Gold, Silver, and Bitcoin, CASH is the big winner this week. Everyone is cashing out, and we are witnessing sell-off in, so-called safe-haven assets as Gold, Silver…

Alice and Bob on Economy, Monopoly (board game) and Bitcoin

Let me share the most bizarre conversation that I overheard — Two strangers were trying to describe the Economy as a Monopoly game, or maybe it was the other way around. It was like they were coming from two different worlds.

Alice: Everyone is loaned some starting capital (each player receives $1500 from the Bank). We know they are fiat and not worth the paper they are printed on, but we can invest them the way we want. Either way, in the end, everything goes back to the Bank; This is just a game. The game starts, we roll the…

The whole problem comes from the notion that hoarding currency will make you rich

By Ivan Kambourov on The Capital

We all know about the everlasting dispute if Bitcoin is digital gold. The short answer is No, Bitcoin is a fiat digital currency, but it doesn’t matter since it has a viable use case. Gold (and silver) being commodities have value or if you prefer intrinsic value. Because of their unique physical properties, they can serve as money and act as a store of value at the same time. If a currency is not backed by an asset, it is an abstract concept. Its “value” is perceived based on economic activity and exchange of goods and services. …

1. Economic fundamentals

A question that I often hear is “Where does the VALUE of bitcoin come from? The obvious answer “Whatever someone is willing to pay for it” refers to the quote on an exchange and relates to its price but how we can determine its value ** In Proof of Work algorithms you may suggest that the value of Bitcoin is determined by the energy consumed but than it would be worth asking:

Is it determined by the electricity needed to mine one block? Should we calculate the cost to mine 12.5 bitcoins and use this as mark…

Ivan Kambourov

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