Microeconomics And Fiat: The Bear Case For The U.S. Dollar
Economics demands that the dollar continue its long journey to a value of zero.Written September 15, 2021The goal of this article is to unite and create a coherent argument around the basic microeconomic idea of price equals marginal cost (P=MC), of fiat money as a product, and how bitcoin relates to these two. I must warn all readers that this is just a frame of thought, or, as Steve Jobs would have put it “connecting the dots.” It is by no means a finished concept, and the community will have to help evolve and polish this idea, the same way I have taken this idea from others and,....
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Update: This article has been changed to add three charts that were left out during the editing process. In 2015, Bitcoin performed exceptionally well both as a currency and as a commodity. Interestingly, the cryptocurrency Bitcoin, which is also classified as a commodity, has even defied the well-held microeconomics principle that preaches that:....
Bitcoin and blockchain technologies have big visions of changing the macroeconomics of the financial system. Less investigated, the microeconomics of Bitcoin could supply us with unique insights into how the Bitcoin digital financial complex might evolve. Microeconomics examines decision-making by economic actors, like firms and consumers, in their myriad organizational possibilities, from unions to entire industries to other defined organizations. Microeconomists are concerned first and foremost with decisions by people and organizations, and thus, in a bigger sense, the decision-making....
The value of bitcoin is currently being measured in dollar terms and this is understandable given that fiat is still the most dominant form of currency. While those in the crypto space believe this will not continue for much longer, it is still important to price the digital asset in fiat currency to show its value to investors. However, millionaire investor Anthony Pompliano has countered against this accepted form of valuing bitcoin. He addressed the way the digital asset is valued as well as the dreaded volatility on a recent episode of CNBC’s Squawk Box. Don’t Value Bitcoin In Dollars....
Bitcoin is trading at over $20,000, but the start of what might be the first real correction since the uptrend first began could be forming. However, looking more closely at the DXY Dollar Currency Index, the leading cryptocurrency by market cap could be in for another extended bear phase if a fractal on the dollar […]
Bitcoin has undergone a strong move higher over the past few weeks. Analysts think that current macroeconomic trends could result in a further surge in the price of the leading cryptocurrency. Bitcoin Could Surge Higher Amid U.S. Dollar Bear Market: Dan Tapiero Dan Tapiero, a co-founder of 10T Holdings and DTAP Capital, thinks that the cryptocurrency will continue higher as he expects a U.S. dollar bear market to play out. He cites “unprecedented liquidity injection,” […]