11/9/2013 Portland, Oregon – Pop in your mints…
For those who have not yet taken notice, the USD/Bitcoin ratio now sits at $322, after touching a high of $395 today. For those who are unfamiliar with what a Bitcoin is, we strongly encourage you to read our brief primer on Bitcoins entitled “Bitcoins: What they are and how to use them.”
While the title itself is cryptic by design, the book is a straightforward analysis of not only what Bitcoins are, but also what their design and function as money means. Now that we have a bit more time on our hands (more on that below), we hope to return to edit and update this volume. While the Bitcoin itself is unlikely to change, there are now many more applications for it than there were when we penned it back in April of this year.
The combination of they monetary premium and technology has made the Bitcoin industry run on jet fuel, and it won’t slow down anytime soon. The simple reason is that Bitcoins are a bizarre yet perfect form of equity that, like Twitter, is more of a public service.
In the case of Twitter, the need to randomly comment or blow off steam at someone else’s running digital commentary may only be marginally, if at all, profitable, but the value of it as a tool that people will rarely pay to use is priceless.
In the case of Bitcoin, the need for a means of exchange which can both hold a large portion of the monetary premium and be completely portable and ethereal is self evident and, while the Bitcoin itself generates no revenues, its value as a tool that people will use but not necessarily pay for is priceless.
Contrary to most of financial theory, discounted cash flows cannot capture the concept of value, as much of what people value in this world cannot be neatly summed up in financial models. The Bitcoin falls squarely into this lofty realm where finance fails and dreamers soar.
{Editor’s Note: If you would like assistance investing in Bitcoins or Bitcoin related ventures, please write us an email with the word BITCOIN in the subject. There is much to be done and, consequently, much money to be made in this nascent industry that is moving like a wave across the earth}
Time on our hands
We have recently been notified that we are soon to be relieved of the burden of what is best described as our day job. Over the last year, we set out to work ourselves out of a job through a series of process improvements in the Treasury Department. Shockingly, it worked.
While on one hand the prospect of quickly ramping up our other activities (The Mint being one of many) is daunting, it is also exhilarating as we are of the peculiar breed that lie awake at night and early in the morn and watch a light show of ideas cross our mind. Some we are able to capture and quickly act on. Others we take note of and treasure them in our heart as we await the time that they come around again in and present themselves ever more brilliantly to our mind’s eye.
As we have one other time in our life, on September 10th, 2001, we are faced with the choice to either carry on in the 9 to 5 world or to pause and chase these ideas to their conclusion, watching where they lead and enjoying the ride as we chase them there.
These types of choices, frankly, are too much for us to bear, which is why we leave them in God’s hands. It is He who opens and shuts doors. Our job is to pursue the ones that are open until He shouts “enough!”
What we do have on the horizon, along with a number of projects that are providently moving towards fruition, are the preparation of a class on Deuteronomy, a 20 page biology article to edit, and any number of tasks that, while each one on its own would appear to be from different fields, when taken together make up the colorful tapestry of our life, as we blindly chase through the open doors with only one clear mandate:
Help people.
If you care to join us on this adventure, feel free to drop us a line. You never know what we might accomplish together!
Stay tuned and Trust Jesus.
Stay Fresh!
Email: davidminteconomics@gmail.com
Key Indicators for November 9, 2013
Copper Price per Lb: $3.25
Oil Price per Barrel: $94.60
Corn Price per Bushel: $4.27
10 Yr US Treasury Bond: 1.75%
Mt Gox Bitcoin price in US: $322.90
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce: $1,289
MINT Perceived Target Rate*: 0.25%
Unemployment Rate: 7.3%
Inflation Rate (CPI): -0.2%
Dow Jones Industrial Average: 15,761
M1 Monetary Base: $2,515,000,000,000
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