Bits and Pieces – 20170731, Monday

Commentary: I want to explain why Bitcoin can never be a viable currency. My understanding of Bitcoin is that there is an upper limit on the number of coins that can ever exist, somewhere around 21 million. The block-chain, as I understand it is simply a security paradigm for the system.

If bitcoin were only to be used to buy potatoes, the question of their relative values might be settled by adding the weights of all the potatoes in the world and saying that this is equivalent to the total number of bitcoins since bitcoins are assumed to be worth nothing for any other purchase. Let’s say that one ton of potatoes is equivalent (worth) 2.4 bitcoins (which hides the problem of fractional bitcoins – what are they and how do you manage them?).

Suppose next year there is a bumper crop of potatoes. There are twice as many potatoes but the same number of bitcoins. The value of a potato relative to a bitcoin has been cut in half.

Suppose farmers can agree that a bushel of wheat is equivalent to 10 pounds of potatoes. Further, they find that the amount of wheat grown is twice the amount of potatoes in value. Also, they decide to accept bitcoins for wheat. The total amount of merchantable produce in bitcoins is 3 times our initial example. That means a ton of potatoes is worth 0.8 bitcoins now.

Expand this to all products and services produced in the global economy and the value of a single potato becomes extremely small.

In a practical monetary system, the currency must be expansible to price the economy in practical terms and also be able to grow as the economy grows. Bitcoin can’t do either.

A useful model for understanding Bitcoin is the tulip mania in Holland in the 17th century – it’s a speculative bubble.

The War on Cash: An discussion that suggests a role for cryptocurencies in the battle against government control over the economy by removing cash:  Banks Are Scheming To Dominate A Future Cashless Society.

WWIII: There is a consistent push from actors in the US in this direction: Russian Sanctions – The Start of World War III?.

The American Empire (AE): This short article presents a concise understanding of Russian interests and the globalist/nationalist conflict: Russia’s Real Endgame. This is a highly recommended read.

The new Russian sanctions are explained by Mike Shedlock: Make America Safe: Put Congress on Permanent Recess (What the Sanction Bill is Really About). The real reason is to support American economic interests around energy and the control of energy supplies to Europe. And a bit of background on American hypocrisy over the issue: Browder – Russia – Trump – Safra.

Where to from here: The Historical Turning-Point Has Arrived?

In annual competitions held by the Santa Fe Institute on optimal game theory strategies, the game “tit for tat” one. In practice: “It’s Time To Retaliate”: Putin Expels 755 U.S. Diplomats. This has got to complicate US efforts of espionage, regime distabilization and interference in elections.

Climate: Apparently sea levels have fallen for the past 2 years. Watch for upcoming entertainment as climate alarmist figure out how global warming is causing this: NASA Confirms Falling Sea Levels For Two Years Amidst Media Blackout.

Bits and Pieces: Here is Senator John McCain’s war record in ome tidy little package for your reference (it might not be what you’re expecting): A Complete History Of John McCain Calling For War Around The World.

For my owon interest I’m including this shrt article ehich spans multiple conspiracry theories: Former Forbes Bureau Chief Blows Whistle On 9/11 & Fukushima.

And a little home town (Strathroy) excitement here last week: Procedure avoids panic: expert. I spoke with the deputy mayor. He said it was the last 13 cars of a 130 car freight that went off. The engineer was two miles down the track before he realized he was missing them. A hoot.

Any “moderate” brand of Islam – Hero Imams? – must be founded on the rejection of those aspects of the Quran and other religious books that advocate violence against and domination of non-Muslims. This of course requires such moderates to accept that the Prophet was wrong. Good luck.

Videos abound of the robots scurrying around Amazon “fulfillment” centers as I have previously published. The paradigm seems to be move products from an inventory of hundreds of thousands of items to workers that seem to have a limited role in packing the products. It may be that AI hasn’t advanced to the point of being able to solve the 3D problems of placing a variety of odd-shaped boxes most efficiently into one larger container.  But that problem may be solved soon: Amazon Hosts Robotics Competition To Figure Out How To Replace 230,000 Warehouse Workers.

Here’s an off-the-wall piece: The Not-So-Secret Ingredients of Military Coups. If you’re planning a coup, whether military or perhaps in business, one might benefit from this book.

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