Hey folks! I’m back from the dead after 6 mos of haitus. Well lets just say Im having a crack at blogging again.
Ok so I was doing my usual tour of the interwebs and I came across Bitcoin. Holy shit it’s an alternative currency but a lot of people have doubts about it. As the undergroundeconomist eloquently writes:
Update:Since I posted this, I’ve been convinced that due to its unique properties as a purely digital, scarce, easily transferred artifact, Bitcoin’s exchange value is probably enough by itself to prevent a deflationary spiral to zero. See this answer I posted on Quora.
I wasn’t going to…
But what is “bitcoins”?
According to wikipedia:
Bitcoin is a decentralized electronic cash system that uses peer-to-peer networking, digital signatures and cryptographic proof so as to enable users to conduct irreversible transactions without relying on trust. Nodes broadcast transactions to the network, which records them in a public history, called the blockchain, after validating them with a proof-of-work system. Users make transactions with bitcoins, an alternative, digital currency that the network issues according to predetermined rules. Bitcoins do not have the backing of and do not represent any government-issued currency.
If that’s hard to understand then here are some videos:
1. What is bitcoin?
2. Intro to Bitcoin
3. Bitcoin and the end of state controlled money Will bitcoin replace our current currencies? Highly unlikely since as the underground economist wrote: the currencies “are backed by bullets”
What does the price of gold and silver have to do with numismatic coins?
Well old coins were mostly made with silver and gold thus their prices go up along with the price of gold and silver. Just this past week, the price of gold surged up close to $1900 per troy ounce but has since decreased these past days.
Now might be a good time to sell your coin collection if you’re looking to get the most money out of it. But then again, this might be a temporary decrease and we might be seeing a head and shoulders pattern that those analysts are seeing (I’m not a good stock players so I really don’t know what those investor types are talking about.)
But then again, holding on to your coins is not a bad idea either since if the current monetary system fails, then you’re going to be better off than the 99% of the population (no offense to the people gathering in wall street, I’m also one with you in spirit).
Why? Simply because Gold and silver has been used as a currency way, way back and a lot of people see them as valuable. Once the economy collapses and your paper money doesn’t have any use except for lighting a fire, gold and silver will likely be used as currency. and of course, the barter system will flourish once again, but I think having gold and silver will give you a leverage in trading for goods and services.
Hey all, Sonny here and this is a start of a new blog.
I am attracted to shiny things; well who isn’t but the difference between me and most people is I like old shiny things that look like new. That’s why I am naturally attracted to the numismatic and bullion world.
Anyhow, my objective in writing this blog is to gain more exposure to my hobby and I eventually want to turn this into a business.
For coin collectors, go ahead and give me a link to your blog, post, or pictures of your collections.