Bubblicious used automobile costs rising sooner than bitcoin, Jim Bianco warns

Your car may be more valuable than what’s in your portfolio.

According to market researcher Jim Bianco, used car prices are rising faster than Bitcoin and other assets.

“If you want to know what’s the best investment you’ve likely had in 2021, it’s this car that’s in your driveway or garage,” the president of Bianco Research told CNBC.Trading nation“on Thursday.” It is appreciating faster than the stock market and lately faster than some cryptocurrencies. “

He bases his analysis on the Manheim used car price index, which is designed to track price developments in the market.

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“In the last four months the price has increased by more than 20%. Not only is this more than the S&P, but more than Bitcoin itself in the past four months, ”he said. “As of December 15th, the latest data we have is just accelerating. At least until now there has been no peak.”

Bitcoin is up about 5% over the past four months based on Thursday’s market close. the S&P 500 has increased by 26% so far this year.

Bianco cites two optimistic drivers in the used car market. The first are those that are falling out of new cars due to semiconductor shortages.

Read more about electric vehicles from CNBC Pro

Kelley Blue Book reports that car prices are at record highs. In November, the median price of a new car was $ 46,320 and a used car was $ 27,569, a 27% increase over the same time last year.

The second: speculators who want to turn vehicles over.

“What we see in used cars is a rush for people to buy them and a rush for people to speculate on them,” he noted. “Buy it now, it will only get more expensive.”

“Tell-Tale Signs of a Bubble”

It is clearly not your parents’ auto market.

“It has all the tell-tale signs of a bubble,” he said. “Used car prices are supposed to be a depreciation factor. They shouldn’t increase in price. But this year they have increased by 49%, let’s call it 50%.”

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Bianco suggests the shock with car price stickers reflects a bigger problem.

“That’s exactly what they have [Federal Reserve] I don’t want this to happen because that’s this self-reinforcing idea of ​​inflation, “he noted.

Last December on Trading Nation“Warned Bianco that 2021 could be the first inflationary comeback in a generation.

He believes inflation will fall in 2022, but its fall will be much slower than most people think. As for a peak in car prices, Bianco suggests it’s everyone’s guess.

“It could go on for another year. It could be two more weeks,” said Bianco. “The activity you’re seeing is likely bubbly.”

Disclaimer of liability

A New Bitcoin Rip-off Forces Victims to Document ‘Hostage-Fashion’ Movies

Be wary of social media videos promoting bitcoin investments that seem too good to be true, even if they were recorded by someone you know and trust.

According to a new report from the Vice motherboardIn a surprisingly widespread Bitcoin scam, hackers are forcing Instagram users to film “hostage-style videos”.

Victims usually fall into the trap by clicking on what looks like a harmless Instagram link, but is actually a means for the hackers to gain access to their accounts.

New Bitcoin Mining Scam Holds Users Hostage

Vice’s report describes the experience of Instagram user Emma Zoller, who was targeted by a hacker with the online name “Ashly”. Zoller clicked on a link that led to a page disguised as an Instagram login window. When filling out her details, she unwittingly gave out her ID and password.

The hacker’s first step was to tell Zoller that she could get her account back in exchange for a nude video. When Zoller refused, Ashly instead ordered her to promote her Bitcoin mining scam in a video clip.

In the video (see below) Zoller says, “Hey guys, I just got back from a long day at work, but Ashly just helped me invest $ 1,000 and got me back $ 8,500. What an amazing way, end the day and I feel so blessed and grateful for the process. It’s guaranteed. I suggest doing it. “

Unfortunately and somewhat predictably, after Zoller posted the video, the hacker refused to give back access to their account and they were able to hack into their Venmo account as well. Zoller’s video was then advertised via an Instagram story.

“People lose their pages, their money and their identity”

Another victim of a similar scam, Tim Nugent, told Vice that a hacker gained access to an Instagram account for his 13,000 follower Etsy business. He was also forced to create a scam video that got rich quick, and one of his clients was subsequently “bled to death” by the scammer.

Nugent said the experience was “ruining”. [his] Reputation and business. ”Additionally, Nugent said that“ Instagram / Facebook [have] was of no help and didn’t report me back while people lose their pages, money and identity. “

In another cryptocurrency scam this month, a new cryptocurrency SQUID, based on the hit Netflix series Squid Game, made a meteoric rise after its creation, only its creator turned the currency off days later and apparently disappeared.

Instagram strongly recommends users to use two-factor authentication to make it harder for hackers to access and keep an account. The company owned by Meta (formerly Facebook), also urges users not to use the same password on multiple different platforms and accounts as this makes it much easier for hackers to access.

Bitcoin Future Of Cash World Financial system

Saifedean ammus and Peter St. Onge, are the thought leaders in my opinion when it comes to the macroeconomic impact of adopting a Bitcoin standard. The Austrian business school is more reluctant to make concrete predictions and focuses more on theory and big results. Mainstream fiat economists who tend to make these predictions – which are consistently inaccurate – don’t understand Bitcoin or its value proposition, and so only produce terrifying views like this.

This leaves a shimmering void of confusion and uncertainty about what will happen when the world shifts from using fiat currency to adopting bitcoin.

This article will attempt to fill this void by providing the reader with a picture of what is possible and likely for our economic future on earth.

I am not of the opinion that a major depression is looming or that the global economy will “collapse” at some point, rather I imagine a long phase of transition or realignment. There is already a parallel economy of people who only live and trade in Bitcoin. This bitcoin economy will grow as the “fiat economy” gradually shrinks as time and people change.

Bitcoin adoption is not driven by the public choosing to pay in Bitcoin, but rather by producers and sellers preferring to be paid in Bitcoin, thus creating incentives for customers to use it. Expect discounts for paying with Bitcoin and for sellers who only accept Bitcoin.

That is not to say that there will be no turbulence. The Fiat system has injected (2008) and injected again (2020) the world economy with cheap money, whereby Bad investment. At some point there will be a major correction or corrections – a “market crash”. It is impossible to predict when this will happen. Corresponding Austrian business cycle theoryThe longer the correction takes, the more capital will be misinvested and the more drastic the correction will be.

This is not going to drag much of the economy into Bitcoin right away. The BTC price might even fall initially as everyone is panicking and selling everything. Central banks and governments will not just turn around and give in. There will be more money printing, stricter laws and higher tax rates, etc.

Hyperinflation will occur in some areas, but remember that Bitcoin is there to be used as a medium of exchange, a store of value, and a unit of account. Weimar and Zimbabwe didn’t have that luxury. They had to revert to a system of exchange, which decimated their economy when everything came to a standstill. Venezuela seems to be slowly getting into Bitcoin and things there seem to be went better than originally expected. They also didn’t have a functioning Bitcoin Lightning network that we already have today.

Some jurisdictions will choose to “ban”, prohibit, or heavily tax Bitcoin, making it more difficult, but not impossible, for people in such jurisdictions to trade in it. Productive people will slowly move from these areas to the areas that freely accept or accept Bitcoin, and these areas will thrive. Ultimately, the territories that chose not to adopt Bitcoin will either have to start accepting it, or they will be turned into an unproductive wasteland as the rest of the world will surpass it. Imagine if a region like the USSR eventually has to submit to some form of capitalism.

As in the past 10 years, anyone who adopts the Bitcoin standard earlier will be wealthier compared to later adopters. This will become more apparent over time. There will be individuals and institutions who refuse to adopt for decades and eventually live in non-bitcoin enclaves.

The wealth transfer will be significant, but likely not as spectacular as many Bitcoin maximalists imagine. Real wealth is held in assets such as property, machines, knowledge, goods, resources. The introduction of Bitcoin will not destroy this wealth; the prices are simply given in Bitcoin instead of in Fiat. This includes stocks.

Companies and industries that produce real value will thrive, such as: For example, mining, manufacturing, technology, distribution, retailing, etc. Your stock prices will take a hit when the correction (s) occur, but that has nothing to do with Bitcoin. At this stage the markets are overvalued compared to historical data and prices should adjust in the future.

Banking

One sector that is going through massive change is banking. It is worth taking a closer look at what could happen in this area under a Bbitcoin standard.

It would be fair to argue that banking will be reduced to what it was under the gold standard. Banking is simply a dignified form of lending money, with the banker having the advantage that the money he lends is not his own but someone else’s money. It was deposited with him for interest he pays on it. The banker’s business is to borrow this money again at higher interest rates than he paid for it and to take the difference as a reward.

Banks play an important and significant role in society. Through their intermediation, capital is transferred from those who cannot or do not want to use it in industry to those who can. In this way, a banker does not increase the total amount of capital available, but increases the total amount available for production. This is an important service that the bank must be paid for.

According to a Bitcoin standard, the banks’ income and value are largely reduced to what the market is willing to pay for the above service. Note that according to the gold standard of the bank, the public has paid a fee for “custody” of their funds. Since it is safer for a person to secure their bitcoins themselves than to entrust them to a third party, banks – or whoever is taking on the capital allocation function – need to encourage depositors to get their bitcoin deposits.

Who knows what new types of capital allocation methods the free market will produce if innovators are allowed to innovate in this area?

Whatever happens, in the long run, bank stocks will inevitably depreciate in real terms as the space in which they practice with their regulatory-laden oligarchies shrinks. Some banks can innovate and thrive – the free market could even allow some form of bitcoin banking with partial reserves if the risk appetite is up. But according to the Bitcoin standard, the few connected people are not given free money.

Value, interest rates, inflation and deflation

Disclosure: I adhere to the Misesian It follows that inflation is the increase in the total amount of money in the economy. Deflation would be the decline in the money supply. If the total amount of money in an economy is suddenly reduced from previous levels, I fully agree that it could, and probably always will, have devastating effects. This phenomenon should not be confused with an increase in the value of a monetary unit over economic goods, which is also known as “deflation”, but which will have many positive effects on the economy and society.

Let’s say for a second it’s the year 2035 and Bitcoin is the most widely used currency in the world. How high could inflation and interest rates be?

Total Value or Market Cap of Bitcoin: I have no doubt that BTC will hit $ 10 million per coin at some point. The problem is that a coffee could cost $ 5,000 at this point, as the value of the US dollar would be close to zero from today’s perspective. Hence, calculating the value of Bitcoin in relation to future US dollar prices is a pointless exercise. Yes, measured in US dollars, the potential value of Bitcoin is really ∞ / 21 million.

Predicting Bitcoin’s purchasing power over goods and services, and expressing that as a number in relation to today’s U.S. dollar value, is a far more complex and contentious topic that will rack your brain many times as you try to get it to solve . I’ll try to discuss this in a future article.

Once the price of Bitcoin stabilizes and is widely used as the world’s leading unit of account, a period of semi-permanent deflation (expressed in Bitcoin) will set in. That said, the value of your currency will increase in comparison to goods and services. This is not because the total amount of currencies is reduced, but because the total amount of goods for sale increases compared to the total amount of currencies in existence, and also because of technological advances that are making goods more affordable. It’s important to note that this is and was the natural state in the world before governments and banks started fucking with your money.

The interest rates are determined by the free market. What interest rate a lender and borrower agree on will be the rate paid.

Interest rates can be viewed as a cost of capital. Historically, this has been between 3% and 6% per year on the free market. But how does it all fit in with deflation? Let’s say an entrepreneur wants to borrow Bitcoin for a new project in the future. He will find a willing lender – likely through DeFi or some sort of bank – and borrow the bitcoin at an agreed rate. Let’s say it’s 4%. If the entrepreneur expects deflation to occur during the life of the loan, he simply adds the expected deflation to his cost of capital calculation.

Interest rate: 4%

Expected deflation: 2%

Total cost of capital per year: 6%

This will not distract the economy from growth and business owners from borrowing. We have seen interest rates below the Fiat standard go up to 15% or much higher in some places even after deducting the inflation rate.

What will be drastically reduced is the fee that the middleman charges for arranging the loan, as mentioned earlier. This is the difference between the repo and base rate that we know today. In a free market, whoever offers the lowest “fee” to mediate the transaction will outperform the others, and with modern technology that fee should be negligible.

Under a Bitcoin standard and with modern innovation, capital allocation would be much more efficient, as someone in Africa, for example, could borrow from someone in Europe or the US at the same rate as others. This will lead to global competition for capital, and those who are most efficient in allocating that capital will thrive.

This brings me to what I consider to be the most beneficial aspect that a Bitcoin standard will bring to the world. Enable free trade between those who choose to. The mere fact that two parties act voluntarily with one another means that both parties will benefit from the transaction. The more such trading takes place, the better it is for everyone involved. The ability to pay anyone around the world easily, instantly, and cheaply will enable more trading, especially on the ground floor for people who previously didn’t have a bank account.

I hope that by reading this article you have opened up the possibility of a successful and peaceful transition to the Bitcoin standard. In the long term, the natural laws of society and economy will play out. What works and what doesn’t for society is becoming increasingly clear.

May the best currency win.

This is a guest post by Handre van Heerden. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

Bitcoin: The First And Ultimate Rival Cash

Lingua Contra Imperium

The Language of Bitcoin: 3

TL;DR – Bitcoin is the first monetary technology of its kind. It is also the last. If you insist on summing up our good and sound money with a broken monetary measure such as the dollar, you will forever be confused about the state of the financial world. The dollar’s infinite expansion will lead you to believe you have more Bitcoin than really you do.

Rational

Hard money pervades absolutely. When I say hard money pervades absolutely I am not talking about the price of Bitcoin. I’m talking about its ever-growing user base, who refuse to have their property adulterated and their money debased. Hard money pervades by way of slow and steady adoption. It is the process of knowledge being shared among a community.

A rational population that recognizes Bitcoin as the strongest store of value, and the easiest property to amass and protect, would exit the housing and the stock markets and pour into Bitcoin. If they were rational, people who sought stores of value in things that are of potentially unlimited supply, such as stocks, gold and real estate, would forsake these cumbersome objects for Bitcoin, which as we know is limited, and more salable across time, space, and scale than anything that’s come before.

The market is not rational. Nonetheless, Bitcoin adoption grows. Whether you believe Bitcoin adoption to be occurring too slowly or too quickly, the fact remains that there is a growing population of people for whom Bitcoin is the final money.

That is, we have chosen to exit the dollar, for good, because as Bitcoiners we recognize that we hold the superior asset class. Once we understood that, we found no rational reason to expose ourselves to the centralized financial risk that comes with holding lesser asset classes such as dollars, which are a primitive and an objectively inferior form of nascent money.

It seems unlikely that the person who first grasped the concept of a wheel could have kept this idea private. In this way Bitcoin will not stay niche, but rather, it will become ubiquitous, global money. Societal memes are ideas that are too good to stay niche. One of the fundamental features of lasting ideas that spread throughout society is that their use case is undeniable and easy to perceive.

One doesn’t have to have a technical understanding of how Bitcoin works to use it in the same way the overwhelming majority of people who fly in airplanes don’t have an engineering background or a clear understanding of how exactly it is they are flying. Bitcoin, like the wheel and the airplane, is too good of an idea to stay niche. Bitcoin’s success as a network ought to be measured less by its dollar price action and more through the growing number of people familiar with its most basic use-cases as a hard store of value, an immutable money, and as the most secure form of property, all traits for which it has no peers. Bitcoin promotes its own production and inhibits its destruction at the expense of energy, time, and that of its rivals.

So although the market in aggregate is not rational, and we may individually often make irrational financial decisions, the absolute advantage of holding Bitcoin over fiat is becoming undeniable. Ignore it, and you will soon look over your shoulders to find your friends and neighbors enjoying freedoms that you cannot afford.

In our quest to bring monetary freedom to the world we will succeed because we will hodl Bitcoin longer than the market can remain irrational.

Irrational

The market is irrational. People are irrational. Their trades are predicated on their limbic system, their immediate wants. They want to get rich quickly. Their time preference, in aggregate, is very high. Most Americans behave in a way that befits the title of consumer over that of producer. Americans in aggregate are not capitalists. Capital production requires the reallocation of resources and capital, and not their absolute consumption. Americans rather, make choices every day to consumer rather than produce, with money that they do not really have, and as was discussed last week’s essay, delayed gratification is key to a successful life of capital accumulation. Unfortunately, Most people make impulsive, emotionally influenced, high-time-preference financial decisions.

Holding Bitcoin is not only exiting the U.S. dollar, it is recusing yourself from the need to constantly make difficult financial decisions and trades. Buying Bitcoin tends to become an organizing financial principle for hodlers. The strategy is simple:

1) Trade your time to create value for others daily.

2) Trade this value for capital.

3) Trade some capital for Bitcoin.

4) Deploy the remainder of capital to increase your means of production to create more value for more people.

5) Trade profits for Bitcoin.

6) Hodl indefinitely.

*The in-between step is do not consume your capital.

If you find yourself perpetually on steps 4 and 5 you might be a financially productive person. There is no limit to how productive a person can be. The common denominator of this process among bitcoiners is that we are constantly buying and holding Bitcoin. We’re effectively making one solid trade tirelessly, out of U.S. dollars and into the superior asset class. In doing so we’re taking activity bias, emotions, and high-time-presence impulses completely out of the financial equation. It’s quite liberating.

CAGR

No Bitcoiner who has held their stack for at least four years has lost money when denominated in fiat terms. And after just months of holding Bitcoin it dawns on most that perhaps the benefits of hodling increase as time goes on. Indeed, the longer you have held Bitcoin, historically, the greater your reward in fiat terms. You have gained buying power and you have also maintained and appreciated your wealth. This is cannot be done when holding dollars only.

Newcomers to Bitcoin largely come for this “number go up” technology, meaning they want to watch their wealth appreciate in U.S. dollars, which is admittedly exciting and fascinating to behold for the first time. As you hodl it becomes increasingly difficult to turn a blind eye to the U.S. dollar price of your Bitcoin stack. You may even begin to understand and experience the fiat based formula for compounding annual growth rate (CAGR).

People who think of Bitcoin as an investment might run the dollar value of their Bitcoin stack through this formula. Over the years it will yield increasingly impressive results in fiat terms, which is fun and good. But at what rate are you compounding your Bitcoin stack? Somewhere along the trajectory of perpetual learning that Bitcoin incites, many cross an event horizon, after which, there is no more trading back into dollars. There is only forsaking dollars for Bitcoin. For many bitcoiners it is after this point in understanding that Bitcoin ceases to become an investment, and begins to become a lifestyle.

The CAGR equation looks much different if for the beginning and ending values you input amounts of Bitcoin, rather than the same Bitcoin’s value in fiat terms. This perspective of the CAGR will likely give you more incentive to increase your productivity, rather than remain idle and content with your stack. Remember, Bitcoin’s value when compared to every fiat asset will always rise, because assets which can be issued by decree are unlimited in number. If you value your Bitcoin in fiat terms, the numbers are sure to impress you over time, but you probably won’t accumulate with the same urgency you would had you understood your Bitcoin on its own terms. When valuing your Bitcoin in fiat terms you risk complacency. Number go up is besides the point.

So the longer people hold Bitcoin, generally, the more inclined they are to think of equations like the CAGR in Bitcoin terms? Actually, I would postulate that by denominating your Bitcoin in fiat terms you are subliminally priming yourself to one day execute a trade out of the hardest money in the world. It follows that most long-term hodlers value their Bitcoin in Bitcoin terms.

The longer you think of your Bitcoin in fiat terms the less likely you are to become a long-term hodlr who denominates your Bitcoin in Bitcoin terms. So there’s a survivorship bias among long-term Bitcoin hodlers. We tend to overlook or under appreciate just how many denominated their bitcoin in fiat terms and never functionally recognized that 1btc=1btc, and as a result didn’t make it.

If you insist on summing up our good and sound money with a broken monetary measure such as the dollar, you will forever be confused about the state of the financial world. The dollar’s infinite expansion will lead you to believe you have more Bitcoin than really you do.

Remember that when people speak of the price fluctuation of Bitcoin denominated in U.S. dollars, this is an entirely misguided understanding of what Bitcoin is. Bitcoin itself is agnostic to U.S. dollars.  Naturally when comparing a scarce asset to an infinite asset, you will perceive extreme volatility.

The most maximalist among us might say that if you’re trying to use Bitcoin to make “bank”, you’ve lost the plot. Your Bitcoin is your net worth. The dollar price of your Bitcoin is meaningless.

There’s no reason to discourage people who are thinking in fiat terms, as surely no one alive was raised without learning to think in this way. The test is really whether and to what extent one can begin to denominate their life in Bitcoin terms. The change in character this brings about, the renunciation of an old and errant way of life, one littered with misunderstandings, is why bitcoin maximalists often have the luster of something like the newly sober, the honeymooning, or the very religious.

The current transition from a fiat worldview to a Bitcoin worldview predicates on one having been wrong about basically everything. Ergo, most adults don’t, and won’t understand Bitcoin. But the first few kids who were raised on a Bitcoin standard are soon to enter their teenage years.

It is when this nascent generation of bitcoiners begins to participate with consequence in the global markets, and they in turn raise more children on a Bitcoin standard, that the scales will really tilt in our favor.

Rival

Every monetary vehicle outside of Bitcoin is in competition with it, and will have its monetary energy drained from it, because Bitcoin is the only rivalrous money. Rivalrous means every Bitcoin I own is one you can’t own, unless I transact with you or give you access to my private keys. Think of MicroStrategy. Think of all the Bitcoin supply Michael Saylor has taken off the table. Does this not incentivize you to double down on your stacking efforts? It’s supposed to. When a good is scarce, it incentivizes competition. Bitcoin is the only rivalrous asset. Fiat and gold are both horns of plenty.

Gold is non-rival. I could in theory acquire gold until the end of my days and it wouldn’t effect how much gold is available to everyone else. It isn’t scarce. The total supply of gold is in direct proportion to the resources that are allocated toward mining it. Gold can be mined until there is no more of it left in the universe. Even in terms of the local gold supply, we haven’t even begun to scratch the surface of the Earth.

Bitcoin is very much a bounded game. Inversely, fiat is an unbounded game of cards, meaning it expands so on ad infinitum. That is, there is no limitation imposed by the tools of the fiat game. They are not playing with a definite supply of numerals but instead with a system for constructing numerals indefinitely.

The government may claim ignorance of the fact that it has created a system for printing money indefinitely. The most insidious and savvy of governments enjoy this exploitation of their citizens time and energy somewhat covertly. The population has been misguided for so many generations it just takes taxation and simultaneous currency debasement as an unavoidable fact of life.

But the money printing is overt now. They’ve abandoned the phase of pretending it’s only temporary, or that they are raising the debt ceiling just a little more to get through X or Y crisis. The crises are chronic. Always have been. If I had to make a future prediction I would forecast that virtual emergencies and cyber pandemics are next. People are desensitized to real world problems. It appears to me that the majority of us are already isolated, functionally comatose, living in an entertainment state of perpetual catatonia. This is a topic for another time. Do not surrender your ability to think and speak freely.

There was no “well intended” or ignorant government phase. If governments didn’t understand the power of exploiting the money printer we would still be using objects we chose to meet our coincidence of wants. We would store all of our wealth in things like goats or shiny rocks. But even in the age of gold, the government found ways to clip and debase the currency.

In Bitcoin, you can imagine what ties our digital ship to the wharf as rope. The rope consists of fibers. The rope does not get its strength from any one fiber running through it, but rather from the fact that there is a vast number of fibers overlapping. The metaphor is more apt if you imagine many ships secured with thousands of ropes. As nodes we are attesting to a single history, a single order of these ships, our anchors are myriad and decentralized.

Bitcoin is rivalrous and bounded. The process of Bitcoin accumulation offers you healthy competition and fraternity for life. It incentivizes cooperation to facilitate capital growth. Every Bitcoin you own is one I can’t, but perhaps if we collaborate to provide a service, we can both increase our stack. Meanwhile every Bitcoin that is lost is removed from the conversation entirely.

Time

Nietzsche said that what can happen must have happened before.

This is not so.

It must be stressed that before Bitcoin, it was impossible to associate events with points of time in decentralized systems.

Bitcoin emerged, in part, from an effort to work around trusting third parties to time stamp digital documents. Centralized time servers are inaccurate to degrees that may seem minute to humans, but in terms of ordering transactions on a ledger, it is imperative that there be no discrepancy. Remember that even the time dilation between a person on the ground and a person on a plane is enough to make the order of their transactions on a ledger inaccurate. This why Bitcoin doesn’t rely on any third-party time-keeping server.

Satoshi originally designed bitcoin as a digital time-stamping server, as found on the first page of the White Paper: “In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions.”

Or as found on the second page: “We need a system for participants to agree on a single history […]. The solution we propose begins with a timestamp server.”

Consequently Bitcoin has become the only decentralized narration of past events in the world. No history is comprehensive, nor is it intended to be. When we talk about history it is a mistake for us to try and account for causation. Humans cannot perceive causation, only a succession of events.

In the universe, most of what occurs is too fast or too slow. Too big, too small, too far, too close, or invisible. Thus, you can imagine Bitcoin as but one lens through which to view the history of the modern world. What’s unique about our framing is that this story is completely decentralized, and the longest chain has undergone the most proof of work to secure this history. Bitcoin is the story we’ve agreed upon.

There is no centralized time mechanisms for Bitcoin. It runs irrespective of our clocks. Every individual tick of the Bitcoin clock is unpredictable. Relative to our clocks, the Bitcoin clock appears to be imprecise and spontaneous. But this is irrelevant, as Gregor Trubetskoy points out: “It doesn’t matter that this clock is impre­cise. What matters is that it’s the same clock for everyone and the state of the chain can be tied unambiguously to the ticks of this clock.” So the Bitcoin clock is probabilistic, but it isn’t illusory.

When does the future become the present?

Bitcoin accounts for this. The mempool is a description of the future, a forecast we’ve committed to bring to carrying out.

Where does the present go when it becomes past?

Bitcoin accounts for this too. Nodes usher blocks present into the past, where they are recognized again and again, many times per day by every node, as past.

The longest chain serves as proof of the sequence of events witnessed, and also proof that it came from the largest pool of CPU power. In this way, Bitcoin is also proof of story.

Future

Bitcoin is the first monetary technology of its kind. It is also the last. Most people have yet to realize that Bitcoin is the culmination of civilizations’ failures at creating money.

The seeds of global Bitcoin adoption were planted at its birth and our only job now is to water and tend to them. Bitcoin is the first money the world has ever seen and the last money it will ever see for centuries to come.

29 August 2021

Read The Language of Bitcoin: 2: “Bitcoin Alleviates Future Uncertainty”

Read The Language of Bitcoin: 1: “BTC Is The Best Explanation For The Way Money Is”

Bitcoin nears $50,000 after months of weak point

An illustration showing physical bitcoins next to binary code displayed on a laptop.

Jakub Porzycki | NurPhoto via Getty Images

Bitcoin neared $ 50,000 as it continues to rebound after months of weakness

The world’s largest digital currency by market value rose to $ 49,821 on Saturday afternoon in New York. according to data from Coinbase. It traded at 10 a.m. ET on Sunday at a price of $ 48,876.

The rebound comes after Bitcoin has been trading at a price between around $ 30,000 and $ 40,000 in recent months. It had fallen from a record high of nearly $ 65,000 in mid-April.

Ether, the coin connected to the Ethereum blockchain network, also rose recently, hitting $ 3,295 early Saturday. according to Coinbase.

The worldwide acceptance of cryptocurrencies among private investors has increased significantly in the past year, so Chain analysis, a blockchain data company. Worldwide acceptance of crypto has increased by around 881% in the last year.

According to data from CoinGecko.com, the global cryptocurrency market cap was $ 2.16 trillion on Sunday and the cryptocurrency trading volume was $ 109 billion on the last day.

NFL star Saquon Barkley will settle for all future endorsement cash in bitcoin

Saquon Barkley relies on Bitcoin all
BTCUSD, + 0.48%.

The returning star of the New York Giants claimed on “The best business show“That he accepts all future marketing and advertising contracts he signs in Bitcoin.

“You see inflation and you see how high it is right now, and you learn that you cannot save your fortune,” Barkley said. “That’s why I’m going to take my marketing money in Bitcoin.”

See also: Bond King Jeff Gundlach says there’s a simple reason why government bond yields are so low despite rising inflation

Barkley, 24, says he will use the Strike crypto app for future bitcoin payments, adding that like well-known athletic investors, he wants to build “generational wealth” outside of the field Kevin Durant and Tom Brady.

Barkley has an impressive advertising portfolio with companies like Dunkin ‘Donuts, Nike. built up
OF, -1.11%,
Pepsi
PEP, + 0.24%,
Toyota
TM, -0.53%,
Visa
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and Hulu – and he admitted during his interview that his annual advertising income is over $ 10 million.

See also: “We All Stopped”: Burger King Sign Goes Viral As Employees Leave

Barkley currently has one 4-year contract for $ 31.2 million with the Giants, which ends after the 2022 season.

And the running back isn’t the only athlete interested in Bitcoin and other cryptocurrencies. In 2020, Carolina Panther’s offensive tackle Russell Okung announced that he would convert half of his $ 13 million salary into bitcoin NFL draft pick Trevor Lawrence signed a contract with the crypto portfolio app Blockfolio and was paid for in a mix of Bitcoin, Ethereum
ETHUSD, -0.82%,
and Solana. Even Super Bowl champion and MVP Patrick Mahomes seems to be interested in cryptocurrencies.

Free agent NFL tight-end Sean Culkin told MarketWatch earlier this year that he will convert his entire NFL salary into bitcoin in 2021 because he was worried about falling and going broke like some other professional athletes.

“Everyone was broke not long ago,” Culkin told MarketWatch on the way home from off-season training sessions. “I see this new world starting to grow with crypto. I see it as gold
GC00, -0.98%,
digital gold, but better. “

Bitcoin Seperate Cash State – Bitcoin Journal: Bitcoin Information, Articles, Charts, and Guides

Discussion around Bitcoin for years relegated it to being a bubble, tulipmania or some Ponzi scheme, but now even disbelievers likely acknowledge that Bitcoin is here to stay. What they may not realize is that beneath the veneer of charlatans, gamblers and grifters is a movement slowly making progress towards a grand vision of the future. A future where money is the medium of a flourishing society rather than an oppressive arm of the state.

Since the odds of Bitcoin collapsing in on itself grow slimmer each passing day, Bitcoin’s enemies have begun coming to terms with what its steady progress means for them. As they slowly realize the ensuing revolution, politicians and central bankers are starting to say the quiet part out loud by arguing that Bitcoin is a threat.

For once, Bitcoin’s opponents are actually correct in their analysis of the subject. A threat is exactly what Bitcoin is: a vicious threat to fiat currencies and government coercion everywhere. While the media has chosen to spread this idea as Fear, Uncertainty and Doubt (FUD), Bitcoiners embrace it as the reason for Bitcoin’s entire existence: a practical means to separate money from state.

There are two falsehoods society has strangely accepted as truth: a) it is natural for government to control money and b) inflation is necessary. People argue in favor of separating powerful institutions when it comes to church and state, yet they do not apply that same logic when discussing money and state. Money’s impact on society cannot be understated as it is the means by which people transact value and interact with the economy. Putting this powerful institution in the hands of government, another extremely powerful institution with a history of misusing said power, is the natural conclusion we draw?

When government is given full control over money, it has the capacity to debase the money as its ruling party sees fit. Everyone is aware of the perils of hyperinflation, yet people are unphased by the ability of a small few to arbitrarily expand the money supply. Not only are they unbothered, but many even view it as natural that central bankers should determine the value of the money they use to store their hard work and that this interference in money is required to prevent economic collapse. This reality comes as no surprise given the dominance of Keynesian economics in politics, central banking and academia (as a current Economics major at a university, I witness this firsthand).

Keynesians’ entire theory is focused around government intervention and boosting demand to spur economic growth, so naturally they abhor something that severely limits those goals. Sound money, like bitcoin and gold, incentivizes saving and planning for the future which Keynesians, by their own admission, view as detrimental. To them, inflating the money supply is the necessary motivation for people to deplete their nest egg in favor of needless high time preference production.

Often referred to as a hidden tax, inflation breeds financial serfdom as citizens are subjugated to the silent theft of their purchasing power. Bitcoin finally provides an opportunity for the masses to opt out of this one-sided arrangement. With an immutable monetary policy and decentralized consensus structure, there is no fear of an arbitrary change to the rules of the game and those in power can no longer mold the monetary supply to meet their ends.

One of the most important qualities of money is its portability over space and time. Fiat is good for transferring value around the world (though you do run into restrictions with KYC or when moving large amounts), but it is terrible at transferring value across time as it is guaranteed to lose some purchasing power each year through inflation. Conversely, gold is difficult to move in large quantities or across distance but has proven adept at holding value over thousands of years.

Before Bitcoin came around, gold was viewed by many as the solution for separating money from state. However, this is misleading since gold is heavily reliant upon centralized institutions. Custodians are required to safeguard any meaningful amounts of gold and entities must be trusted to issue coins or paper notes in an honest fashion. Bitcoin requires no such trust as each individual can take delivery of the asset and custody it safely.

Gold is a durable, scarce, shiny rock that we have collectively chosen to use as a money for thousands of years because of its soundness and superior qualities when compared to other forms of money. Likewise, bitcoin has value because it serves the same purpose that gold does as a monetary good chosen by the free market, but without the handicaps inherent to gold’s physical nature. Simply put, bitcoin is gold 2.0 in that it is easily divisible, has a verifiably capped supply, is practical for self-custody, is seizure-resistant and is fully permissionless. The only valid criticism of bitcoin in relation to gold is that gold has stood the test of time, but Bitcoiners are willing to look past bitcoin’s relative infancy and bet that its ever-growing network effects will allow it to do the same.

Bitcoin is incredibly powerful in that it is one of the few true bearer assets. Practically all other forms of property you own are yours only because some centralized authoritative power deems it so. Strong property rights are necessary to the flourishing of society. It can generally be trusted that those rights will be respected and upheld in stable democracies. However, the same cannot be said for much of the world’s population. In countries with authoritative regimes or where rule of law means nothing, private property is a luxury afforded to few and where the solution may lie in Bitcoin. A person’s bank accounts could be frozen, possessions stolen and house repossessed, but so long as they memorize their mnemonic seed phrase, their bitcoin will remain stored in cyberspace, ready to be claimed.

In the United States, this notion of true property can serve as an insurance policy or even be used as a political statement. Bitcoin exists completely separate from the current financial system which operates under the steady gaze of the state. Removing your wealth from a system under their control to one outside their purview severely limits the state’s ability to coerce. Through holding an asset that the state is powerless to seize or freeze, an individual gains a great deal of leverage over those wishing to impede their civil liberties.

The narrative of bitcoin being a store of value has successfully entered mainstream discourse. Many bitcoin advocates, notably Michael Saylor, focus their pitches on how bitcoin’s fixed supply schedule and seizure-resistant properties make it the preeminent store of value. This is a far less threatening narrative than others they could tell. Evangelizing bitcoin as the future currency of Earth immediately turns heads, so pitching the more palatable notion of bitcoin being “digital gold” is a perfect Trojan horse.

As this narrative continues, more capital and individuals will flock to bitcoin in search of a store of value amid inflationary fears which, unbeknownst to them, begins the process of hyperbitcoinization. Soon, as development and adoption of Lightning Network increases, bitcoin will make inroads toward becoming considered a scalable medium of exchange. After it has proven sufficient in that regard, bitcoin will steal fiat’s final redeemable quality: its status as a convenient unit of account. Keep in mind this process would take decades to play out as bootstrapping a currency with no leaders to global adoption is a hugely audacious task. Nevertheless, Bitcoiners have a rather low time preference and have no issues with being the patient stewards of this long-term project.

Despite some coming from benevolent intentions or misunderstanding, the FUD against Bitcoin has never been about saving the environment, preventing ransomware or stopping criminals. Co-opted by statists, it is now a vessel to restrict individual freedom and keep people entrenched in the coercive legacy systems that provide their power. If you ever want to see true bipartisanship in government, just start messing with the monetary system. When two diametrically opposed people like Elizabeth Warren and Donald Trump share the same stance on Bitcoin, monetary sovereignty is clearly not an issue of left versus right, but one solely of power. Even politicians with the noblest of intentions become slaves to the allure of using other people’s money to achieve their own goals. Bitcoin fixes this.

Now, do not expect governments to give up their prized possession without putting up a fight. If history and recent regulatory scrutiny are any indication, a bitcoin ban is inevitable once the mass exodus from fiat draws near. Unlike the criminalization of gold in the U.S. following the Great Depression, trying to successfully ban Bitcoin is a nearly hopeless task.

While there is nothing nations can do to restrict the network itself, apart from shutting down the entire global internet, what they can do is destroy the fiat on and off ramps. Doing so would certainly weaken bitcoin’s price, but would only be successful if every nation showed a united front. The thought of Russia, China, North Korea and the U.S. working together to ban bitcoin of all things is nothing more than laughable.

Without a fully uniform ban, Bitcoiners would simply take advantage of jurisdictional arbitrage by moving to nations (or U.S. states) that establish bitcoin safe havens. Nations will be incentivized to create those safe havens in order to attract the wealth and investment of Bitcoiners to their local economies. Ironically, breaking bitcoin’s connection to the legacy financial system would likely just force Bitcoiners to leave fiat forever.

A revanchist revolution to remove from the state control over its prized possession and restore sound money chosen by the market is long overdue. The answer is not in greasing the wheels of politics to reinstate a gold standard that, despite perhaps being in their best interest, voters either think is archaic or just simply don’t care about. Not to mention how politicians on both sides of the aisle would be reluctant to give up control of the money printer that so easily helps fund their agendas. Instead, as F.A. Hayek presciently forecasted 37 years ago in reference to denationalizing money, “all we can do is by some sly roundabout way introduce something they can’t stop.”

The movement to separate money from state must always remain fully voluntary. No one must be forced to take part in it, which is why aspects of El Salvador’s new bitcoin law are concerning. If the law were to end at treating bitcoin as currency and eliminating capital gains, then this could be considered a win for freedom. But it does not stop there. Instead, Article 7 requires merchants to accept Bitcoin. Now, merchants do have the option to immediately exchange bitcoin for dollars through a $150 million government fund, but that is a fund financed by Salvadoran taxpayers who should not be forced to bear the brunt of bitcoin’s volatility.

It remains to be seen whether Article 7 will be strictly enforced or not, however its mere inclusion spells worry. The moment we stoop to the level of the entities we are attempting to replace for the sake of increased adoption, we lose any possible moral superiority. Make no mistake, a country adopting bitcoin to help end their reliance on the U.S. dollar is a huge step forward. What this means, however, is that more eyes will be on Bitcoin and FUDsters will be waiting with bated breath if things go even slightly awry. Therefore, Bitcoiners must remain vigilant and stay just as critical of themselves as we are of those looking to attack Bitcoin if we wish to preserve the Bitcoin ethos.

Nothing is more powerful than an idea whose time has come. Bitcoin can provide property, hope and self-sovereignty to billions of people. Money is purely a social construct which means each and every one of us has a voice in what we deem valuable and choose to transact with. Do not be tricked into thinking that money must be a top-down phenomenon bestowed upon us by our overlords.

Bitcoiners are used to being the ones forced to defend their position, so the next time a nocoiner or precoiner friend asks you about Bitcoin, posit them a question instead. Ask: why, during this epochal monetary revolution, have you chosen the side of theft, coercion and censorship when the alternative is so clearly in front of us?

If this proposition of a fully digital money controlled by no one were immediately accepted by all, then this would cease to be a revolution. It is precisely because of how radical and ambitious Bitcoin is that we must undertake this project as a society. What does it say about us if we are unwilling to embark on what is certainly a Herculean effort, the success of which we may not see in our time? Our society is at its best when we build for the future. Now we have a tool to build a freer one together.

This is a guest post by Jack Kriesel. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Marvel Leisure to Launch NFTs — Followers Can Quickly Hunt for Uncommon NFT Comedian Books – Bitcoin Information

Marvel Entertainment has announced that it is entering the non-fungible token (NFT) space. The wholly owned subsidiary of Walt Disney Company and popular comic book creator, says Marvel fans can purchase “Official Marvel NFT Digital Collectibles, Digital Comics, and more.”

Marvel publishes NFT digital comics and collectibles through the Veve app

  • The comic and film giant Marvel entertainment is getting into NFTs, according to a press release published on Thursday. The announcement indicates that Marvel aims to bring digital collectibles, digital comics, and other NFT products to market.

Marvel Entertainment is launching NFTs - fans will soon be able to look for rare NFT comics“Since the beginning, collecting has always gone hand in hand with being a Marvel fan,” said Dan Buckley, president of Marvel Entertainment, in a statement. “Like us, Veve understands that collecting is as much about the experience as it is about the product, and we look forward to expanding that experience for our fans in the years to come,” added Buckley.

  • The comics started in 1939, but Marvel’s entertainment line started in 1998 and is based in New York City. The corporate unit with 1,786 employees makes an estimated $ 366 million per year in revenue.
  • For the NFT venture, Marvel has partnered with Orbis Blockchain Technologies Limited, a company that operates the Veve Digital Collectibles app. The application is available for iOS and Android. The app allows Marvel fans to buy and trade the company’s unique offers.
  • The announcement also states that users of the Veve app can also “search for rare (and even secret) NFT comics and collectibles and showcase their hard-earned collection in fully customizable virtual showrooms.”
  • Veve’s in-app currency called Gems is required to purchase official Marvel NFT products, and NFT owners can also resell them through Veve’s secondary marketplace.
  • About Veves Platform, vice president of business development and strategy for Marvel Entertainment, says Daniel Fink, the company hopes “to push the boundaries of what Marvel fandoms can be, starting with personal and interactive digital collectibles that fans really get through NFTs and can share ”. and enjoy in a way you couldn’t before. “
  • Marvel follows the comic book maker’s competitor, Dc comics, which revealed that NFTs would hit the market in March 2021. This followed a Letter to freelance artists by the legal representative of DC Comics, who urged freelance artists to stop making DC Comics-related NFTs.
  • “More details on Marvel’s exciting new digital collectibles coming to Veve will be announced in the next few weeks,” Marvel added on Thursday. “Comic book fans should also be excited for some exciting new revelations coming soon,” added the entertainment company.

What do you think of Marvel Entertainment getting into NFTs? Let us know what you think on this matter in the comments below.

Tags in this story

Blockchain, Comic fans, comics, Dan Buckley, Daniel Fink, Dc comics, Marvel Comics, Marvel entertainment, Marvel fans, Marvel NFT, Movies, nft, Not fungible token, Non-fungible token (NFT), Veve app

Photo Credit: Shutterstock, Pixabay, Wiki Commons, Marvel Comics,

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of any product, service, or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Bitcoin worth to set new report by year-end, institutional cash will flood in as soon as this occurs – Jason City

The multi-month decline in the price of Bitcoin, which began in April when the world’s largest cryptocurrency began its descent from record highs at the time, will only last the summer, according to Jason Urban, co-head of Galaxy Digital Trading at Galaxy Digital.

Speaking to Kitco News editor-in-chief Michelle Makori, Urban said institutional investors will re-emerge into the room through fall this year, pushing the price back up, breaking new all-time highs and at least US $ 70,000 by the end of the year -Dollars to achieve.

Galaxy Digital is a diversified financial services company focused on cryptocurrencies with four lines of business: asset management, trading, principal investing and investment banking. Founded by Michael Novogratz, the company recently partnered with Goldman Sachs to trade Bitcoin futures.

“I definitely think we can see a little over $ 70,000 by the end of the year,” said Urban. “I think we can expect all of the FUD (fear, uncertainty, doubt) we’ve seen over the past few weeks to cause a flat trend in the market this summer and I think that when we get into the Fall is coming, a lot of these institutional takeovers and these ambitious moves that we’ve seen are going to manifest, and we should see the market break those highs. ”

So what has been holding back the institutions so far? It’s no less, but it lacks clarity about the rules institutional investors need, noted Urban.

“I think there is obviously some regulatory clarity about what can and cannot be done,” he said. “The smart players [in the crypto space] want to work with regulators to find solutions that address their concerns while allowing the technology to thrive. ”

Urban comments come as Bitcoin has just faced a new onslaught of criticism, this time from the Bank for International Settlements (BIS), which wrote in a recent report that “Cryptocurrencies are speculative assets, rather than money, and are used in many instances to facilitate money laundering ”. , Ransomware attacks and other financial crime. ”

Earlier this week, the People’s Bank of China banned Bitcoin over-the-counter trading in China and banned several large miners, reducing the country’s crypto mining capacity by 90%.

Urban said regulations could be beneficial, but attempts to ban Bitcoin are simply pointless.

“You can’t forbid progress. You can regulate it, you just can’t ban it, ”he said.

For more details on where institutions are on the acceptance curve and what Urban sees as the only existential threat to Bitcoin, watch the video above. Follow Michelle Makori on Twitter @MichelleMakori (https://twitter.com/MichelleMakori).

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and / or damage that might arise from the use of this publication.

Bitcoin is theory, not cash, and facilitates monetary crime, peak central financial institution warns

Bitcoin is not money – it is a speculative asset that can be used by organized crime to launder money and launch ransomware attacks, says the world’s leading organization of central banks.

Important points:

  • According to BIS, cryptocurrencies are fragmenting currency systems in a negative way
  • It urges central banks to consider issuing digital currencies to their citizens
  • It is said that it is important to maintain public confidence in monetary institutions

It has urged central banks like the Reserve Bank of Australia (RBA) to develop their own digital currencies to meet the needs of citizens drawn to cryptocurrencies.

The Bank for International Settlements (BIS) has published a scathing review of cryptocurrencies, stating that their growing popularity is a problem for the global financial system.

Report in digital currencies

In a new report on digital currencies, the BIS encouraged the growth of ‘central bank digital currencies’ (CBDCs), saying that, in digital form, they deliver the benefits of central bank money – integrity, liquidity and settlement accuracy – while maintaining public confidence in the monetary system.

However, she cautioned that the landscape is changing rapidly, with interest in alternative forms of currency growing.

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“It is now clear that cryptocurrencies are more speculative assets than money and are used in many cases to facilitate money laundering, ransomware attacks and other financial crimes,” it said.

“Bitcoin in particular has few redeeming properties of public interest when one takes into account its wasteful energy footprint.”

Stablecoins and Big Tech

The BIS said other developments are contributing to the changing currency landscape.

Behind ‘DeFi’ and the technology behind Bitcoin

Large companies are exploring blockchain technology as investors prefer “decentralized finance” that lawyers and bankers can lose their jobs.

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“Stablecoins” and the entry of large technology companies (Big Techs) into payment and financial services were highlighted.

It warned stablecoins – which are supposedly pegged to a national currency like the U.S. dollar to reduce volatility – have their own problems.

“Stablecoins try to import credibility by being backed by real currencies. As such, these are only as good as the governance behind the promise of support, ”the report says.

“They also have the potential to fragment the liquidity of the monetary system and undermine the role of money as a coordination tool.

“As far as the alleged backing is conventional money, stablecoins are ultimately only an appendage of the conventional monetary system and not a game changer.”

Behind the bitcoin frenzy

Bitcoin and cryptocurrency prices have soared to dizzying heights since their inception amid the global financial crisis. We explain what drives this, along with the pros and cons.

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It warned that big tech’s entry into financial services could be a big problem.

It is said that the amount of data big tech companies have about their customers could be used to further strengthen their power in advancing into financial services by pulling data from their existing businesses into ecommerce, messaging, social Use media or search to give them a competitive edge.

“The availability of vast amounts of user data poses another major problem – that of data governance,” the report said.

“Apart from the economic consequences, securing privacy against unjustified interference by both commercial and state actors has the attributes of a fundamental right.

“For these reasons, the topic of data governance has become a central concern of public policy.

“When US consumers were asked in a representative survey who they trust to protect their personal data, the respondents said that they trust big tech the least,” it says.

RBA is already experimenting

In November, the RBA announced It partnered with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software (a blockchain technology company) to explore the potential use of a wholesale form of central bank digital currency (CBDC).

It wanted to test how a CBDC could be used by wholesale market participants (i.e. other banks) to fund, settle and repay loans between the RBA and among themselves.

It is expected to publish a report on its pilot project within weeks.

However, the BIS said that while wholesale CBDCs were worthwhile innovations, if central banks offered digital currencies to retail customers it would be a “wider innovation”.

The retail CBDCs would have modified the conventional two tier monetary system by making digital money from central banks available to the public, just as cash was available to the public as a direct claim to the central bank.

Central bank digital currencies chart for retail customers

“There are two flavors of retail CBDCs,” the BIS report said.

“One option is a cash-like design that enables so-called token-based access and anonymity for payments. This option would allow individual users to access the CBDC based on a password-like digital signature using private public key cryptography without the need for personal identification.

“The other approach is based on verifying the identity of the users (‘account-based access’) and would be rooted in a digital identity scheme.

“This second approach is more compatible with monitoring illegal activity in a payment system and would not preclude privacy: by properly designing the payment authentication process, personal transaction data could be protected from commercial parties and even government authorities.”

History of the BIS

The Bank for International Settlements was founded in 1930 by an intergovernmental agreement between the United States, Great Britain, Switzerland, France and Germany.

Its original purpose was to facilitate the World War I reparations imposed on Germany by the Treaty of Versailles, but it turned into a meeting of central banks around the world.

Today it is commonly known as the Central Bank of Central Banks as it provides banking services to central banks around the world.

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