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October 22 2018

moneymetals

Bitcoin or Gold: Which One's a Bubble and How Much Energy Do They Really Consume

is-gold-or-bitcoin-a-bubble.jpg

If you are investing in either Bitcoin or Gold, it’s important to understand which asset is behaving more like a bubble than the other. While it’s impossible to understand how the market will value these two very different assets in the future, we can provide some logical analysis that might remove some of the mystery associated with the market price of Bitcoin vs Gold.

I’ve read some analysis on Bitcoin profitability and energy consumption that seemed unreliable, so I thought I would put my two cents in on the subject.

For example, many sites are using the Digiconomist’s work on Bitcoin energy consumption. However, I believe this analysis has overstated Bitcoin’s energy consumption by a large degree. According to the Digiconomist, Bitcoin’s annual electric use is approximately 24 TerraWatts per year (TWh/yr):

Digiconomist bitcoin energy consumption

In a recent article that was forwarded to me by one of my readers, How Many Barrels Of Oil Are Needed To Mine One Bitcoin, the author used the information in the chart above to calculate the energy cost to produce each Bitcoin. He stated that the average energy cost for each Bitcoin equals 20 barrels of oil equivalent. Unfortunately, that data is grossly overstated.

Check out the article here: https://goo.gl/QEwGi4

July 26 2018

moneymetals

The Swamp vs. Alternative Currencies

In Federal Reserve chair Jerome Powell’s testimony before Congress last week, he reiterated his intent to continue the central bank’s gradual rate-hiking campaign.

Among those who are "not thrilled" about the prospect of higher interest rates: the President of the United States.

Trump Tweeted:

"....The United States should not be penalized because we are doing so well. Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates - Really?"

Trump seems surprised that the Fed careerist he promoted to be chairman isn’t embracing Trump’s economic priorities. But nobody drawn from the fiat money swamp should be expected to act contrary to what’s in the institutional interests of the central bank – and the banking elite more broadly.

Swamp creature Powell couldn’t even bring himself to express support for Trump’s pro-growth tax and regulatory reforms during last week’s testimony. He nervously evaded a simple question from a Republican Congressman about whether tax cuts and deregulation have boosted business confidence. Even when pressed, he wouldn’t answer it.

Powell apparently didn’t want to say something that might offend Democrats. The Fed is “independent,” after all, and non-partisan. It has to keep up appearances before Congress.

But when it came to the question of cryptocurrencies, the government’s top banker felt free to go on at length about why he doesn’t like them.


​Continue reading here.​
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