Archive for July 3, 2017

“Bitcoin”, “Ethereum” . . . “Blockchain Technology” Say What? (July 3, 2017)

Posted in Currency, Gold, Gold Standard, Money, Silver, Silver Standard on July 3, 2017 by e-commentary.org

. . .

K          “‘I shoulda’ is my middle name.  My first and last name, really.  ‘I Really Shoulda, Jr.’  Some years ago, someone at the monthly Tuesday night ‘Bitcoin Boosters’ meeting offered me some Bitcoin for $30.  I could have and should have exchanged paper fiat for electronic fiat.”

J          “A day late and a Bitcoin short, as they say.  I have the brains of the scarecrow and the courage of the lion.  I asked myself ‘Why not’ and could not discern any reason why not to take a small risk and then did not take a small risk.”

K          “Fiat for fiat; faith for faith; dust for dust; ashes for ashes.”

. . .

K          “Those who mine for and invest in gold and silver and other precious metals are undermined by those who can manipulate the price of physical gold and silver and other precious metals via paper and electronic trades.  Bitcoin, Ethereum and the like seem to be the refuge for some because they are purported by their proponents not to be as susceptible to manipulation.  But are they?”  

J          “Are they real?  I do not know why the stuff could not be hacked or extinguished if the site goes dark.”

K          “This thing called ‘Blockchain technology’ is another newfangled nebulous technological construct that surely intrudes on our privacy and invades our pocketbooks.”

J          “They say that you can store your Bitcoins in an ‘electronic wallet’ of some sort.  From my perspective, if it is not in your hand or if it is not land, it is not real.”

. . .

J          “A percolating battle is quietly raging between and among Bitcoin, Ethereum and the other crypto-currencies that is akin to the videotape format wars that raged years ago.”

K          “Betamax versus VHS.  Will the best one win?  Who do we want to win?”

. . .

K          “The government tracks all the transactions and shortly will tax all the transactions.”

J          “The government views the stuff as a commodity not as a currency.  The government taxes any exchange of a commodity by demanding payment in its own currency.”

K          “The government will attack any viable challenge that thwarts or could thwart the monopoly of the coin of the realm.”

. . .

K          “I do not mind losing $30.  But do I want to gamble $3000?”

J          “Dollars or Bitcoin?”

. . .

K          “Hard come, easy go.”

J          “Hard come, easy go.”

. . .

K          “As they say:  ‘You’ve got to know when to hold’em, know when to fold’em,  Know when to walk away, know when to run.’”

J          “If you had anted up your two bits and purchased a Bit, would you know when to walk away?” 

K          “I am confident that I would later lament that ‘I shoulda’ sold it before it dropped precipitously in price . . . and of course before I unloaded it.”

J          “Run.”

. . .

[Listen to the interview “‘One Nation Under Gold’ Explores America’s Obsession With One Precious Metal” with James Ledbetter on “Fresh Air” with Dave Davies substituting for the legendary and celebrated Terry Gross on June 26, 2017.  Contrast the author’s criticism of a gold standard with the defense of and justification for a gold standard in “Jim Grant Explains the Gold Standard” by James Grant on the “Mises Wire” on June 27, 2017.]

[See the e-commentary at “Money” and other related topics.]

Bumper stickers of the week:

I hack charities

“Fiat” is “faith” without the “h”; “life” is “lie” with an “f.”

Fiat for fiat; faith for faith; dust for dust; ashes for ashes.

A day late and a Bitcoin short.

“You’ve got to know when to hold’em, know when to fold’em,  Know when to walk away, know when to run.  You never count your money when you’re sittin’ at the table,  
There’ll be time enough for countin’ when the dealin’s done.”  “The Gambler” written by Don Schlitz and sung by Kenny Rogers.

Hard come, easy go.