By Jeff John Roberts - December 26, 2017 - (Video is on the page) Is it time for the Federal Reserve to join the cryptocurrency craze? The idea sounds far-fetched, but it’s gaining traction with some economists, especially as people come to understand the technology that underlies bitcoin and other digital currencies.
The latest to make the case for a so-called Fed Coin is Campbell Harvey, a Duke University finance professor, who argues that a digital currency created by the U.S. government could rival bitcoin—or even push it aside. To carry this out, the Federal Reserve would create a supply of dollars on a blockchain, each with a unique identity like the serial numbers you find on dollar bills.
Longtime bitcoin believers, who favor a decentralized money supply beyond government control, would hate everything about this idea. Nonetheless, here are five arguments in favor of Fed Coin based on Harvey’s article (these are his points not mine):
An ATM for the digital currency bitcoin.
By Campbell R. Harvey - December 18, 2017 - Campbell R. Harvey is a finance professor at Duke University’s Fuqua School of Business.
Over the past few weeks, investors have been flocking to bitcoin, the digital currency whose value has soared by about 2,000 percent in the past year alone. And while many economists are cautioning against excitement about bitcoin — which is caught up in what may be one of the biggest speculative bubbles in history — it’s important to note just how revolutionary the technology may be. Indeed, the technology underlying bitcoin could fundamentally change the way we think of money.
It is only a matter of time before paper money is phased out. Sweden, where about 2 percent of value of transactions are done in cash, may eliminate physical money within five years. Most central banks are working on technologies to power a future digital currency.
Bitcoin and other cryptocurrencies are based on a complicated technology known as blockchain, which acts like a digital ledger of all transactions completed with the currency. It’s somewhat similar to the serial number that you can find on every dollar bill, but it actually means something because it makes bitcoin nearly impossible to counterfeit.
The exploding value of bitcoin has many observers predicting the launch of a U.S.-backed digital cryptocurrency, colloquially known as fedcoin. And there are many reasons beyond fighting counterfeiting to switch to a digital dollar.
When was the last time you paid for anything with a $100 bill? Or even a $50? Many retailers won’t even take them. Most ATMs spit out twenties no matter how much you withdraw. And yet 79 percent of U.S. dollars in circulation are represented by $100 bills. Include the $50 notes, and it’s 85 percent.
So where are all these bills? In black markets. When police first captured infamous drug lord Joaquín “El Chapo” Guzmán, they also discovered a cash hoard including more than $200 million, mainly in $100 notes.
Cash has the distinct advantage of being anonymous. You can put cash under your mattress or in a vault, and no one knows about it except you.
A national cryptocurrency would make it far more difficult for criminals to hoard money because all transactions would be recorded in the government ledger. If a transaction was deemed illegal, the parties to the transaction could be identified. This is also true with bitcoin, whose ledger is viewable to anyone. Despite the negative press about bitcoin being used for illegal transactions, bitcoin is not anonymous, and criminals who use it often do not understand that their transactions are being recorded.
There is another reason for governments to like the idea of a national cryptocurrency: strengthening the power of monetary policy to help manage the economy.
Currently, the Federal Reserve lowers interest rates during tough economic times, but the Fed is practically limited at the zero bound because it is difficult to impose negative interest rates (regardless of whether that would be good policy). Suppose bonds were issued with a negative interest rate of 2 percent, making it expensive for investors to hold them. Who would buy them? Why not hold cash, which has a zero percent interest rate? With a national cryptocurrency, whose supply is controlled by the central bank, rates can be negative.
Worried about deflation in a recession? No longer. A national cryptocurrency such as fedcoin would be able to operationalize Milton Friedman’s famous “helicopter cash” as an alternative strategy to stimulate the economy. A single line of code could instantly put $1,000 into every person’s wallet.
We are seeing an important proof of concept in real time — the meteoric rise in the popularity of bitcoin. Today, the technology is a niche product akin to gold. It is controlled by no one (in contrast to a central bank cryptocurrency) and has limited ability to process large numbers of transactions.
Before we talk about Fedcoins, let's look at the old school non-digital, non-blockchain, coin. Gold. And silver.
Since January 4, the price has dropped about $244. And the price of silver has fallen about $4. Are these buying opportunities? Or the end of the brief gold bull market of 2020 (i.e. Covid)?
It helps to return to the idea that gold is the unit of measure of value. Not as a rhetorical device to sell gold, but because it gives a clearer picture.
If one thinks in dollars, one thinks that bitcoin is rising, stocks are rising (though not this week), oil is rising, other currencies are rising, etc. And gold went up, but is now coming down.
It's hard to make heads or tails of this. Why would one asset go down when everything else is going up (it's tempting to want to believe that this one asset is suppressed)? But what if that point of view is not even wrong? What if gold, not the dollar, should be used to measure things?
In this point of view, we're having another little boom. Everything - as measured in money - is going up. That's what things do, in booms. They go up. No reaching for a theory is needed.
And we can look for signs that the boomlet is reaching exhaustion. Our preferred sign is the gold basis. So here is a chart going back to the start of 2020, well before Covid-mania.
Today we are talking about Fedcoin, and how it will affect Bitcoin (BTC), and also how it will steal all freedoms from you. FED: These are the people who choose how much inflation you will see on the store shelves, and even how much your money is worth. Some of the point of BTC is ...
Goldman building crypto currency trading desk at Bloomberg Channel 12.22.2017 "The Bloomberg Channel is created on Blockchain," said Bloomberg.



[Satan pays well: Apple CEO Tim Cook Earned $102 Million in 2017
December 27, 2017 PST by Juli Clover - In fiscal 2017, Apple CEO Tim Cook received a salary of $3.06 million plus $9.33 million in bonuses and stock worth $89.2 million for a total compensation package of approximately $102 million, reports Bloomberg. The data was shared today by Apple in a proxy statement filed with the United States Securities and Exchange Commission ahead of the company's annual shareholders meeting, which will take place on February 13, 2018.


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