BITCOIN FALLS

zimbabwe-100-trillion-dollar-note

Bitcoin and the swarm other digital coins are down after recent resurgence caused by Facebook. After congressional hearings the backers of Libre ran for the exits which caused the recent gains to be reversed.

The secure internet projects date back to 2002 when the so called Onion (Tor) protocols were developed. OpenVPN surfaced in 2001. Eventually the US government backed the development of security protocols. This places some culpability against America for this digital coin mess among other atrocities.

Unfortunately backers are still trying to maintain valuations. The number of high profile thefts should stand as a deterrent. The SEC is very concerned about market manipulation. Fake trades are being used to create a false liquidity far above the natural levels. Valuations are likely to resume their decline, China notwithstanding. Even in China the digital coin mess has started to become an issue. Chinese media has followed Bitcoin and its derivatives. Bitcoin is open source. The way it works, it’s easy to duplicate into a new system. The process of duplication is infinite. This leads to inflation.

The fiat dollar system works because it mature and nominally manageable. When the economy falters the central banks add more cash to the system and when the economy is well some cash is pulled back. Excessive inflation favors debts and hurts cash hoards. Hyperinflation is the most extreme in Germany when the Marks from 48 to 90 to the to the US in 1919 to 1921. In June 1921 the Mark fell to 330 Marks to the dollar. A loaf of bread that in Berlin cost around 160 Marks at the end of 1922 cost 200,000,000,000 Marks less than a year later. Brutal reparations is what drove the economy of Germany to ruin, worthless banknotes were burned for fuel being cheaper than coal.

Zimbabwe still the highest inflation so far. The one hundred trillion note is 1014 dollars which is hard to fit into a 32-bit CPU and one of the main reasons for 64-bit. The 64-bit CPU is pressured by the Zimbabwe inflation. There is no such thing as unlimited nominal spending power.

Some hardware offerings such as USB dongles and high-end bank cards have been used but they are only as secure as any possession.

Here at the studio we find large numbers of video cards for sale. Some are sold off one by one but others setup a store with inventory and run it like a conventional business. The RX 480 came from a lot of 50 cards.

This reason for the contempt is that prices for video cards is far above MSRP because coin miners buy new cards by the case load. The gaming community is forced out of the market.

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