Bitcoin Proliferation is also great for American Macro Economics

There was a few months this year where, for the first time in recent history the bitcoin price in USD was leading the market. This has been rare, in the past the Chinese have seemed to be much faster to get exited about spikes in the bitcoin price,

IN February I was planning to write this post and had just finished a post about how good bitcoin is for Chinese macro. Time has flown by, but the story of how bitcoin can actually be good for the USA, as a government, has actually become more clear. Legislation and media are even getting behind it.

The idea behind why its good is pretty basic. Although this is Pluto like speculation, why not bullet point it;

• The USA has a lot of debt to foreign countries in USD.
• The strong USD doesn't really help the US industrial exports especially that lead to trade deficits.
• Other countries hold large reserves in USD which give them some leverage over the country (China's 3 Trillion odd USD in bonds, Switzerland's giant US stock stash) 
• The average American also has plenty of personal debt.
• Money printing and inflation can be used and abused in the transition period

So.... Why not just forget about that old money and just start a fresh?

Some people might logically think it could be the best thing you could do . The benefits could be;

• No more national debt
• Good exports with minimal disruption, leading to more jobs
• No leverage from foreign powers
• Reduce the average Americans debt
• The whole thing happened because some anonymous internet money that is totally decentralised and we obviously couldn't have seen coming, "sorry creditors, it's not our fault"
• the government can get itself out of a difficult fiscal and macro economic position, without the hard sacrifices that might normally be needed. 
• USA would be a first mover on what could become the new world reserve currency

I'm not saying that this is going to happen, but I am laying down the logic. It's not all bad.

The next blog on macro will be about when a smaller country might approach a tipping point. 

 

Toon of the Day - Hal's got the Last Laugh

The Crypto Binary Star

This drawing is inspired by Andrew DeSantis here's a drawing showing the Bitcoin network in a natural state of forking and merging. Bitcoin is like a binary star with many sidechains and networks orbiting it. With the user and the miner coded agendas in the centre and Ether as the mysterious unknown dark matter. Bitcoin will become like a world clock or a sun for time-based programming life.

Segwit2x UASF Paradise

Possibly my worst most juvenile cartoon ever, but I am so excited about ending the block debate and getting consensus I couldn't  care less, it's the natural consensus paradise. Transactions will be cheap again and the problem is solved in a sustainable way. Whatever happens in my opinion, it's looking like good good fun times.  Segwit2x isn't so bad, even if proved not to be ideal it's better politics than we see elsewhere. UASF actually worked and Mark Karlples might actually make us richer.

Altcoins are Making Kids Rich

There was a time not so long ago when if I had a young son, I may have paid them to do the yard work in Doge. 1 million Doge may not have been out of the question. Now that Doge is worth $3700 NZD. Time to join the cool kids crypto club is running out. It seems old money was a joke and Doge wins at being funny fun times! Altcoins are on a tear and 5 year old shibes around the world are getting ahead.

Even as dogerain closes down, mainly dues to the new cost of transactions, the generation of Dogeilionares are resistant and the memes keep flowing. In the new cryptoland even Doge may need segwit. Go the random resistance!

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The Price is UP Big Time but Where is the Volume?

The Price of bitcoin and a whole raft of crypto currencies are up a lot lately. It seems like everyone wants a slice of cryptographic pie, people are talking about it, but when we look at the charts it looks like less people are buying now than in 2013.

Bitstamp

OK Coin and Chinese volume seems to have completely dropped off months ago and haven't picked up. In part because of removal of bitcoin with drawals and leverage.

People say that a lot of new volume is on in Korea and . With their top exchanges bithumb and Bitflyer respectively. They stand rank currently at number 2 and three of exchanges world wide.

Overall we can see that the total USD volume has gone up some. 300million, that's a worldwide figure) but not nearly as much as you might expect. Coinhills is a good site to check exchange  volumes.

Polinex as number 1 ranked exchange, seems to be dominating the market. It offers a large variety of Altcoins. Given that fiat volumes are not that high, could this altcoin trading be helping to fuel the boom. Altcoin prices are going up faster than bitcoin in many places but are very volatile. So people need to get in and out of altcoins and when they do that the go through bitcoin because it's like the USD of the cryptocurrency world.

My prediction made here and here again are coming true, but a lot more that I didn't expect could be taking shape.

  

What to do this Weekend?

The price of bitcoin is going crazy. It feels like 2013 again. In the past weekends have been pretty pivotal. This one is going to count.

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