Whoever believes in Bitcoin Code

On Wednesday, the Bitcoin about 11,000 US dollars cost, but fell in a flash crash by 20 percent. Convinced of the Bitcoin technology? Then strategically steer clear of banks and tactically steer clear of Bitcoin.

Bitcoin Code check

Whoever believes in the future of Bitcoin code finds Daniel Stelter should sell what is suffering from the advent of the block chain technology the most. The banks are likely to be.

Picture:  REUTERS

“What do you think of Bitcoin?” I was often asked. The frequency of question is clearly related to the share price. Was she rarely a year ago, they met me after a price increase of more than 700 percent this year alone almost daily. Without an expert to be for crypto currencies can I find the block chain technology at least very interesting. Allowed them but the complete and tamper-proof documentation of transactions. Entire business processes can be mapped in this way and you can imagine that in the future land registry and notary activities look different or even completely migrate to the digital world.

Even as payment crypto currencies like survive and make a long-cherished dream come true to have global privately organized currencies related to each other in competition and, therefore, to be different from our modern monetary economy free of government manipulation (ie constant devaluation). In theory, an attractive idea whose practical bitcoin code realization given the interests of governments and central banks, however, is very unlikely. States will always exist, for example in tax payments on performance in euros, dollars, pounds or yen.

Buy Bitcoin?

The question of whether to invest in Bitcoins provides. As attractive as the technology is so hard it is to determine the fair value. Although the cost of production because of rising electricity consumption in the “mining” of the coins increase with ever greater computing capacity. Even today, the producers of Bitcoins consume more power than Ireland and would consider at the current growth, already in 2020, the global electricity production would be used only for “mining” of crypto currencies. From avoid scams online the thus inevitably increasing costs derive correspondingly rising prices, however, is not permitted. Quite often you could experience in commodity markets that prices below production costs.

After a new recordBitcoin crashes by 18 percent from

Wars that now for the Bitcoin code The cryptocurrency loses about $ 2,000 in a short time, having previously set new records and large Bitcoin exchanges were overloaded.

Scarcity as an argument not convincing even in the face of exploding debt and money supply. For then would as gold trading significantly higher and rise with expansion of money supply and debt. How little the natural scarcity of gold in the relative prices reflected the following calculation shows: To reduce the public debt of the United States to wipe out in one fell swoop, it would take a revaluation of the gold holdings of US 70,000 dollars per ounce. Italy and France were enough US $ 25,000 to pay off all debts, while Germany all sovereign debt would be at 18,000 US dollars going.

This shows the importance of the gold reserves that have built up in the postwar years these countries. Greece could pay off all debts ounce until an appreciation of US $ 80,000, for Japan would have to increase the price of gold by around 410,000 US dollars to meet the national debt.

Although we know that countries and private have accumulated unsustainable debt burdens and continue to accumulate, we give ourselves with gold prices around 1300 US dollars an ounce satisfied. Although the crypto currencies may be relatively scarce than gold, in contrast to gold but do not have a more than 6,000-year tradition as a store of value and can not be transported (across borders) in your pocket.