money

Does Free Money Exist?

"The social credit crackpottery of the 1930s has returned, wrapped in the robes of Neo-Nazi statism. Those boosting it wrap their rhetoric in anti-banker sentiments, but make no mistake: A meme of this magnitude is a Tavistock-like promotion. These people use the rhetoric of libertarianism to arrive at terrifyingly statist conclusions. The state wiped out some 150 million people in the 20th century, and we would actually think it's a lot more. The upshot of social credit is a fascist society in which only the biggest corporations survive, in league with the government itself. And these ideas are gaining traction." Continue reading →

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Krugman thinks low interest rates are behind the boom in paper currency. Not so fast!

"Yes, as Krugman says, interest rates are probably an important factor. But I’m not so sure they’re the most important factor — for a few reasons. For starters, a lot of the demand for U.S. currency is coming from abroad. If you’re in another country with high inflation or severe instability, one of your main concerns is going to be preserving your purchasing power. About 70 percent of U.S. currency today – in the form of $100 bills – is abroad, compared to about 50 percent two decades ago. And while the total level of $100 bills outstanding in the United States has a little more than doubled over 20 years, the growth in $100 bills abroad has increased by far more." Continue reading →

Continue ReadingKrugman thinks low interest rates are behind the boom in paper currency. Not so fast!

Buying Booze With Bitcoins: Yes, I Took One For the Team

"So, it turns out buying electronic cyberbeer is practically indistinguishable from everyday pint purchasing. The only difference was that instead of handing over a tenner or your VISA card, you have to stop sexting or Instagramming the crisps or whatever, and scan a QR code using the Bitcoin wallet app on your smartphone. Yup, not only has Stephen Early found a good use for Bitcoin, he has also managed to do the same for QR codes — formerly a technology with literally no practical applications whatsoever. I can’t be bothered googling who is in charge of the UK’s digital infrastructure but whoever it is, they need to snap this guy up and give him the keys." Continue reading →

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For Bitcoin VCs, There’s No Sexier Word Than “Compliance”

"'There are few things scarier than the threat of the government turning off your [portfolio] business and that possibility 100 percent exists with bitcoin,' said Matthew Witheiler, principal at Flybridge Capital Partners, and one of the four investor panelists at the pitch event. 'The bitcoin companies that win will be the ones that play by the rules.' Andrew Chang, a partner at Liberty City Ventures, a VC firm that has created a dedicated bitcoin startup fund, said he is looking for startups that approach their business 'not necessarily as tech startups would approach it, but as financial institutions would.'" Continue reading →

Continue ReadingFor Bitcoin VCs, There’s No Sexier Word Than “Compliance”

Bitcoin developer Jeff Garzik on altcoins, ASICs and bitcoin usability

"'It took the nations of the Eurozone ten years or so to deploy the Euro, and that was introducing an entirely new currency,' he says. 'We’re trying to do the same thing with bitcoin. We’re trying to roll out a currency from scratch. And as the experience with the Euro showed, it takes an incredible amount of time to change over POS systems and cash registers, to train end of line merchant workers with this new payment system.' Garzik believes that this is just the start. If his vision comes true, then maybe bitcoin could be as big as the Euro. Only, you know, without centralized banking and dysfunctional national economies gumming up the works." Continue reading →

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Federal Reserve studying effect of Paypal and Bitcoin on banking

"The U.S. is studying the potential risk from online payment mechanisms like PayPal and Bitcoin, a top US Federal Reserve official told an international conference on Monday. Some bankers have expressed worries that newer players in the online marketplace could have negative implications for the financial system. 'We have been talking… with banking organisations over the last year or two, trying more carefully to understand what the concerns are with these new payment mechanisms,' Federal Reserve Vice Chair Janet Yellen said. Some officials fear the virtual currency can be used by criminals or terrorists, or could be vulnerable to hackers." Continue reading →

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Fed Puzzle: The Massive Collapse in Money Velocity

"With the velocity of money plummeting, it's clear that something in the fractional reserve banking system is broken -- the money remains trapped in the financial system. Yet another indicator of this is the Fed's Money Multiplier, or an indicator of how the money injected in the banking system is multiplied by lending and economic activity. That's reached new lows recently too, indicating that the fractional reserve system is not living up to expectations. This means that traders with access to large amounts of cheap trading capital can continue to make big bets as the Fed supports their access to capital -- but small businesses can't get the same access to capital." Continue reading →

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100-year-old Wild West silver certificate lassos $2.6M at auction

"Would you spend $2.6 million for a certificate for $1,000? A rare, century–old silver certificate bearing the likeness of 19th century politician William L. Marcy was sold to an anonymous buyer for that lofty sum, which auctioneers at Stack's Bowers Galleries say is a record. 'Only two exist of this type, the other being a treasure in the National Numismatic Collection in the Smithsonian Institution,' Stack's Bowers said in announcing the sale. The certificate was issued in 1891, at a time when silver miners, Western mining companies and some Western banks were objecting to the government's decision to adopt a gold standard." Continue reading →

Continue Reading100-year-old Wild West silver certificate lassos $2.6M at auction

Bitcoin a Refuge For Argentines Tired of Government’s Currency Despotism

"Bitcoin's popularity in the U.S. is gradually rising as it branches out from tech-savvy and libertarian circles into the mainstream financial world. But who may benefit most from the technology are residents in countries like Argentina, where independent observers estimate inflation at 25 percent and the government imposes strict capital controls. The price of Bitcoins in Buenos Aires are about 30 to 40 percent higher than those in neighboring Uruguay, and last week, a Bitcoin Meetup brought 150 Argentines to the nation's capital to discuss the advance of the technology in the country." Continue reading →

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