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TagInflation

golden-bitcoin-coin-in-fire-flame-water-splashes-and-lightning-bitcoin-gold-blockchain-hard-fork-concept-cryptocurrency-symbol-in-storm-illustration-with-peer-to-peer-network-background-stockpack-adobe-stock.jpg
Golden bitcoin coin in fire flame, water splashes and lightning. Bitcoin Gold blockchain hard fork concept. Cryptocurrency symbol in storm illustration with peer to peer network background.

Bitcoin: What’s Good, What’s Bad and What’s the Future?

Bitcoins are currently bouncing in the range of $30,000 to $40,000 each

Bitcoin has been having quite the wild ride over the last several months, and especially the last several weeks. During 2020, the price of a single bitcoin dipped below $5,000, then soared past $20,000 in December. It is currently bouncing in the range of $30,000 to $40,000.So what is the attraction of the digital currency Bitcoin? Why is the value of a bitcoin so high and what are people doing with it? To begin with, keep in mind that a “single bitcoin” is a bit of a misnomer. While a single bitcoin is indeed expensive, coins can be split. The smallest unit in Bitcoin is known as a satoshi, which is 0.00000001 bitcoin. While the quoted price is always given…

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The economic crisis of 2020 with the red arrows indicating the economic recession in 2020.

Inflation Is the Least of Our Worries!

Yet some fear that the inflation dragon is about to roar

The Federal Reserve (the Fed) can throw the economy into a recession whenever it feels that it is in our best interests to be unemployed — typically because the Fed is convinced that an unruly inflation needs to be tamed by the discipline of unemployment. For example, in 1979, as the rate of inflation peaked above 13 percent, the Fed moved to make borrowing prohibitively expensive. When Fed Chair Paul Volcker was asked if the Fed’s policies would cause a recession, he replied, “Yes, and the sooner the better.” Interest rates reached 18 percent on home mortgages and were even higher for most other bank loans. Households and businesses cut back on their borrowing and spending and the unemployment rate…