Polar Opposites

>> May 12, 2020

>> Blog Post #70


Not a day goes by without you hearing about the dramatic effects the COVID-19 pandemic has on people’s lives and on the economy. The economy has tanked in all countries as a direct consequence of people closing shops during the confinement.

I’ve actually suspected that this economic turmoil is a bigger factor in why many countries are currently getting out of their confined states and back to more normal working arrangements (read normal as in the “norm”) than the sanitary situation itself.

You’d think that the markets would tank because of this but I have actually been extremely surprised by just how fast they have rebounded since the initial – and very strong – crash that occurred between end of February and end of March.

The only reason I can think of, and it’s probably the right one, is that the insane amount of money that has been injected by governments around the world in liquidity has artificially supported markets that are no longer correlated with the real economy. At this point, I believe it is fair to wonder if this can’t just go on forever as no one really seems to care. But please take a look at it and try to spend just two seconds figuring out if you are the one benefiting from the “free” money and / or the stock “performances”. Chances are, you might say no in both cases. Just think about it.

On the other side of the spectrum, Bitcoin has just lived another day yesterday. And nothing has changed. Well actually nothing has changed in the value proposition. The hardest money the world has ever known, sitting on top to a very decentralized protocol and network, with unprecedented censorship resistance characteristics. You have to marvel at what bitcoin has accomplished since its inception.

Yesterday was another milestone in Bitcoin’s very short, yet tremendously rich history. Bitcoin went through its 3rd halving.

See unlike FIAT currencies which might just be inflated into oblivion, Bitcoin’s total market supply is capped. No more than 21 million Bitcoins will ever be produced. The supply is finite, and its rate of production is hard coded in Bitcoin’s consensus rules so that it gradually decreases over time.  Bitcoin’s protocol states that every 210,000 blocks, the block subsidy is cut in half.

Now, I won’t get into too many details on how this works, as it can get confusing fast depending on how much you know regarding bitcoin, but you have to understand that the block subsidy, is part of the reward that is allotted to the miners in return for the work they provide in securing the bitcoin network. Here’s me trying to explain this as succinctly as possible:

Transactions are created every day by the participants who send and receive bitcoin. These transactions are pooled together and included in blocks by the miners, acting as some sort of housekeepers of the network. The miners are compensated for their housekeeping tasks by receiving a reward every time they mine a block. The block reward consists of the block subsidy – the part we are looking at today – and the transaction fees that are included in every single transaction contained in the block that is mined. When mining a new block, the miner will include in the block a transaction paying himself that subsidy, effectively creating new Bitcoins in the process. This is the only way Bitcoin is created, until the total number of Bitcoin every created reaches 21 million, at which point miners will only be collecting transaction fees.

As I said, yesterday was the third halving. Initially, the block subsidy for miners was 50 new bitcoin per block. After block 210,000 the rate of issuance of new money was cut to 25 new bitcoin per block, with blocks being produced approximately every 10 minutes. Since last evening, we are down to 12.5 bitcoin per block, which means every day, approximately 1,800 new bitcoins are issued.

This is going to be a very – VERY – scarce asset, not artificially inflated by governments. Its value proposition is extremely different from that of US dollars or Euros for example. No matter what you think of any of these three currencies, or your home country’s currency, you have to realize there might be some benefit to holding some funds in bitcoin, just in case.


5,646 thoughts on “Polar Opposites”

  1. Link exchange is nothing else but it is only placing the other person’s web site link on your page at suitable place and other person will also do same in support of you.|

  2. Hey there! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the same niche. Your blog provided us valuable information to work on. You have done a wonderful job!|

  3. You made some really good points there. I checked on the net for additional information about the issue and found most individuals will go along with your views on this site.|

  4. What’s up it’s me, I am also visiting this web site on a regular basis, this web page is in fact good and the viewers are really sharing fastidious thoughts.|

  5. Excellent beat ! I would like to apprentice at the same time as you amend your site, how could i subscribe for a blog web site? The account helped me a appropriate deal. I were tiny bit acquainted of this your broadcast provided vivid transparent idea

  6. Heya! I’m at work surfing around your blog from my new iphone 4! Just wanted to say I love reading through your blog and look forward to all your posts! Keep up the fantastic work!|

  7. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a little bit, but instead of that, this is wonderful blog. A great read. I’ll certainly be back.|

  8. Wonderful article! This is the kind of info that are meant to be shared across the internet. Shame on Google for no longer positioning this submit upper! Come on over and seek advice from my site . Thanks =)|

  9. Thanks for your marvelous posting! I quite enjoyed reading it, you can be a great author. I will be sure to bookmark your blog and may come back someday. I want to encourage continue your great posts, have a nice evening!|

  10. It’s really a cool and useful piece of info. I am happy that you simply shared this helpful info with us. Please stay us up to date like this. Thank you for sharing.|

  11. I’m not sure exactly why but this website is loading incredibly slow for me. Is anyone else having this issue or is it a problem on my end? I’ll check back later on and see if the problem still exists.|

  12. I’m more than happy to discover this great site. I wanted to thank you for your time due to this fantastic read!! I definitely loved every part of it and I have you book marked to see new things on your blog.|

  13. This is very interesting, You’re a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your wonderful post. Also, I have shared your website in my social networks!|

  14. Hi there, You’ve done an incredible job. I’ll certainly digg it and personally suggest to my friends. I am sure they’ll be benefited from this web site.|

  15. My brother suggested I might like this blog. He was once totally right. This put up truly made my day. You can not imagine simply how a lot time I had spent for this information! Thank you!|

  16. I do not know if it’s just me or if everybody else encountering issues with your site. It looks like some of the written text in your content are running off the screen. Can somebody else please provide feedback and let me know if this is happening to them as well? This may be a problem with my web browser because I’ve had this happen previously. Thanks|

  17. I was recommended this web site by way of my cousin. I’m now not positive whether or not this publish is written through him as no one else understand such specific approximately my trouble. You’re amazing! Thank you!|

  18. My brother recommended I might like this website. He was totally right. This post truly made my day. You can not consider just how so much time I had spent for this information! Thank you!|

  19. Great beat ! I wish to apprentice whilst you amend your site, how could i subscribe for a blog site? The account aided me a acceptable deal. I had been a little bit familiar of this your broadcast offered shiny clear idea|

  20. hi!,I like your writing very a lot! proportion we keep up a correspondence extra about your post on AOL? I require a specialist on this house to unravel my problem. May be that’s you! Having a look forward to peer you.

  21. Hi there, You have done an incredible job. I抣l certainly digg it and individually suggest to my friends. I am confident they’ll be benefited from this site.

  22. My programmer is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am nervous about switching to another platform. I have heard fantastic things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any kind of help would be greatly appreciated!

  23. Easy to practise, worked without difficulty completely with the cream I already had. I had devoted comments from my friends considerable me that I looked younger zpack us!

  24. What抯 Taking place i’m new to this, I stumbled upon this I have found It positively useful and it has aided me out loads. I am hoping to give a contribution & assist different customers like its helped me. Good job.

  25. Amazing blog! Do you have any recommendations for aspiring writers? I’m planning to start my own website soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally overwhelmed .. Any ideas? Thanks a lot!

  26. In equal minute situation the help at azithromycintok went above and beyond the dial of duty. In 2010 I was in Langley Memorial the sanatorium pharmaceutics could not furnish a item-by-item medication. When I called from my chamber from the sickbay to Cloverdale Pharmasave Christine the pill pusher said, “Oh no problem I happen to be coming up to the nursing home today, I purposefulness abound in the prescription and drop dippy the medication to the hospital.” Wow, what a assistance that was as I had no an individual to pick up the medication and contribute to it to the hospital.

  27. Hi , I do believe this is an excellent blog. I stumbled upon it on Yahoo , i will come back once again. Money and freedom is the best way to change, may you be rich and help other people.

  28. With every little thing which appears to be building within this specific area, a significant percentage of perspectives happen to be rather exciting. Even so, I am sorry, but I can not give credence to your entire plan, all be it refreshing none the less. It looks to everybody that your opinions are not completely validated and in actuality you are generally your self not wholly convinced of the argument. In any case I did appreciate examining it.

  29. A lot of of the things you mention happens to be supprisingly precise and it makes me ponder the reason why I hadn’t looked at this in this light before. This particular piece truly did switch the light on for me personally as far as this subject goes. Nonetheless there is actually 1 issue I am not really too comfortable with so whilst I make an effort to reconcile that with the actual core theme of your issue, permit me observe what all the rest of your visitors have to say.Nicely done.

  30. Since partnering with albuterol sulfate inhaler, we take doubled our beds served and nearly tripled our revenue. This has been a win-win relationship. We recall era to day decision-making focusing on the needs of our customers but get the persistence, stability and monetary money of a much larger organization.
    Seriously lots of good material.

  31. Hmm that was weird, my comment got eaten. Anyway I wished to say that it is really nice to know that another person else also described this as I had problems acquiring the similar data elsewhere. This was the first location that advised me the remedy. Many thanks.