What Is Money
According to Wikipedia: “Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies. products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there are 2.9 to 5.8 million unique users using a crypto-currency wallet, most of them using bitcoin.
So, what has lead to its meteoric rise? Firstly, its speculative fervor, at its inception you could have bought a bitcoin for a few dollars and recently it has traded for over $20,000.00; the stories of instant millionaires has certainly fueled the flames of greed, but additionally, the fact that it is a global currency and not under the dominion of any nation, makes it perfect for illicit trade or deals that the principles want kept private, so that they cannot be taxed, penalized or scrutinized. The other big reason for its recent rise is that globally nations have been monetizing their debt by printing their currencies voluminously, decreasing the value and calling into question the validity of its integrity.
So, this brings into question, “What Is Money and how can I protect what I got and make more of it”?
The answer is both simple and complex, reach into your pocket or purse and pull out a bill, it can be of any denomination, hold it in your hand and tell me what you see? What I see is ink on paper, which in any other form would be called art. In and of itself currency, just like bitcoin, has no intrinsic value; its only value is what we perceive it to be in using it to exchange for goods and services we want to acquire.
Let’s put this into perspective, The current USA federal deficit currently stands at over twenty-trillion dollars, The Federal reserve is carrying almost another five-trillion and that doesn’t include debt that is off the books, like State debt, pensions, student loans and the like; it is estimated that if you included all of our nations’ debt it could easily reach eighty to one-hundred-trillion dollars
Now, I know that is hard to fathom, so let me put it in terms that you can envision; twenty-trillion-dollars means that IF (big IF) we were paying down the Federal deficit of twenty-trillion dollars ($20,000,000,000,000.00), instead of growing it as exemplified by the recent tax bill, by $1000.00 every second of every minute of every hour, everyday 24/7, that would amount to thirty-six billion, five-hundred-thirty-six million per year or in other words 547 ½ years to satisfy. You’ve probably noticed this when you go shopping, that prices are going up, it’s not because things are worth more, but because your dollars are worth less and it is probably, most likely going to get a lot worse before it gets better.
This brings us back to the postulation of currency being a form or art; you see most wealthy people collect art because they know that it is a storehouse of value and a durable universal currency, unlike bitcoin, in the sense that no matter where you may go in the world, good art will be appreciated, sought after and valued highly.
Think about this, when the German generals were fleeing after the second world war, were they taking deutsche marks? No, they were taking the art, because they knew that where ever they went in the World, they could exchange it for currency or other things of value. We came across an article from Barclays Bank that states: In the Last one-hundred years, art has appreciated more than stock or real estate; if you would like a copy of the article, give us your Email address and we will send you a copy.
Now, of course you should only buy art that you love, that way if it doesn’t appreciate in value, you won’t hate yourself, but on the other hand, it is comforting to know that you have something that you not only enjoy, but someday might even help put the grand kids through college. Get the picture!