The bigger picture of BitcoinLudwig v. Mises tells us that sound money is an indispensable line of defense of people's liberties against the encroachment on the part of the state and that sound money is a kind of money that is not dictated by the state but is chosen by the people in the free marketplace. The world we find ourselves in is a rather different place. Our monies—be it the US dollar, the euro, the Chinese renminbi, the yen, or the Swiss franc—represent fiat currencies, monopolized by the state.
Fiat money is economically and socially destructive—with far-reaching and seriously harmful economic and societal consequences, effects that extend beyond what most people would imagine. Fiat money is inflationary; it benefits a few at the expense of many others; it causes boom-and-bust cycles; it leads to overindebtedness; it corrupts society’s morals; and it paves the way toward the almighty, all-powerful state, toward tyranny.
Central Banking Is Marxist
It is certainly no coincidence that “the state” has been expanding ever since the world adopted an unfettered fiat money regime back in the early 1970s, and that as a result individual liberties and freedoms have been under pressure ever since. The state feeds itself on fiat money. It simply issues new debt, which is then monetized by the its central bank, which is at the heart of the fiat money regime.
Perhaps you will find it surprising that I believe that the concept of central banking is truly a Marxist concept. (I am not saying that central banking is only favored by Marxists. Not at all! There are also many other ideologies which approve of central banking.)
In their Communist Manifesto of 1848, Karl Marx (1818–83) and Friedrich Engels (1820–95) compiled a list of measures necessary to establish communism. Measure number 5 reads as follows:
" Centralisation of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.
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Against this backdrop there should be no doubt that once the state has become the absolute ruler of fiat money, the door is open for it to grow bigger and bigger, eventually turning into the dreaded deep state. And the deep state, as we know well from history, has little regard for individual freedoms and liberties.
Making Money Great Again: Returning to Sound Money
What needs to be done? Well, the challenge at hand is “Making Money Great Again”! This requires, first and foremost, ending the state’s money production monopoly and opening up a free market in money. A free market in money means that people have the freedom to choose the kind of money they wish to use and that people have the freedom to provide their fellow men with alternative goods that may serve them well as money.
The first strategy is monetary enlightenment—informing the widest possible audience about the evils of fiat money and how it affects their personal lives, families, and communities. This also includes explaining to people that there is a superior and practicable alternative to a fiat money regime, namely a free market in money.
The second strategy is making progress in the field of alternative currencies and payment systems, especially in terms of technological disruptions and their economic profitability. This is the activity space for those among us who are propelled by entrepreneurial spirit.
The Key to Free Market Money Is Deconstructing the State
In fact, is it possible that a free market in money can ever emerge as long as there is the kind of state we know today? The state is, as most of you probably know, the territorial monopolist of ultimate decision-making with the right to tax its citizens. We can rightfully expect that this kind of state will do its best to crush any competitor to its fiat money and prevent a free market in money from emerging.
So if we want a free market in money, the sobering logical conclusion is this: we need to reform, to deconstruct, the state (as we know it today).
Now the uncomfortable truth is out, because the state is possibly the fiercest adversary you could choose. How can we hope to achieve victory?
Well, there is certainly no magic spell. One possible and straightforward strategy might be appealing to people's inner self, and that is their right to self-determination.
The right to self-determination is inalienable and it is an indisputable truth. Each and every individual is the owner of his or her body and the owner of goods acquired in nonaggressive ways (without violating the physical integrity of someone else's property). We cannot dispute these words without causing a logical contradiction.
The right to self-determination implies that the citizens of a state have the right (1) to make it known, by a freely conducted plebiscite, that they no longer wish to be members of the state and (2) to form an independent state or to attach themselves to some other state. In other words: the right to self-determination includes the right of secession, that is, people's right to break up the big state and to deconstruct it into smaller units.
Smaller political units are less powerful, more peaceful, and free market oriented. They keep taxation low, or may even go without it and become wealthier. Just think of, e.g., Shanghai, Hong Kong, Switzerland, Liechtenstein, or Monaco. This is because small political units must compete for capital and talents with other political units. They must behave themselves nicely. Otherwise, people and capital will leave their territory. Given a great number of small political units, there is a good chance that some of them will allow for, even encourage, a free market in money, setting an example that creates emulators.
Conclusion
It is hard to say which route would be the most effective in “Making Money Great Again.”
Perhaps the cryptocurrency community will somehow succeed in ending the state (as we know it today), leaving a truly free market in money in its place.
In the meantime, however, it certainly would not hurt if we (1) kept educating the wider audience about what good money is and what bad money is and also (2) kept unmasking the state (as we know it today), showing that it is incompatible with and a violation of the inalienable right to self-determination of each and every human being.
In any case, it is of the utmost importance to wrest the money monopoly out of the hands of the state. Otherwise, there is indeed little hope that the free society (or what little is left of it) can survive.
Austrianeconomics
Austrian Economy SHOCK (ATX) - Recession / depressionAustrian stock market crashed extremely hard in very short time.
All major indices crashed during last few weeks, but the ATX looks worse than then DAX, DJI and S&P500. It is a flash crash with extremely high bearish momentum, which broke through all major moving averages (50, 100 and even 200 monthly MA)! On the weekly time-frame a triple MA death cross is nearing and is only a few weeks away. We have weekly and monthly bearish engulfing candles. The first Coopock Curve sell signal triggered on Dec. 3th 2018 (COPP curve crossed below ZERO line) and since then the ATX generated lower highs.
Between 2018 - 2020 the 50 monthly MA hold support, but due to weakening economic growth, increasing toxic depth, more and more leverage and derivates the market got very fragile. Ever increasing government spending, more and more bureaucracy, increasing taxes and negative EU sanctions for big Austrian businesses forced investors to leave the market. This already fragile market only needed a black swan event to trigger the END GAME. There is not only one black swan, the Coronavirus which is causing worldwide supply chain disruptions (= supply shock)! There is another black swan, which will have severe impact on the world economy which is the oil conflict between Russia, Saudi and USA!
Currently the ATX is testing its long-term support trend-line (red) which will get broken soon due to a bearish crossover on the wave trend oscillator on the monthly TF. But maybe ECB can pump the markets up artificially!? If this support line breaks, it looks very bad for the ATX.
Now the ECB will print more and more fake money and may even consider a negative interest rate with the Coronavirus as official main reason.
In approximately 18 months most fiat currencies will weaken drastically because new printed fake money will trickle down into the real economy and dilute purchasing power even more, which is like a hidden tax for savers.
I recommend withdrawing your funds from your bank and convert it into real money like gold, silver and Bitcoin before this Ponzi system breaks down completely.
I´m not a financial adviser. For educational purpose only!
How Central Banks can destroy Bitcoin and make Bitcoin go to $0Central Banks of the world need to do one thing to render Bitcoin useless and make it go to zero:
Collectively, stop issuing any more new credit or fiat into the world forever.
That is, the Federal Reserve that controls USD, Bank of China for Yuan, the European Central Bank for Euros, the State Bank of India for Rupees, all collectively need to keep the aggregate amount of credit (loans) and fiat supply to be static from today and onwards forever....this 'price stability' feature that would then be added to USD, Yuan, Euros, Rupees would eventually render Bitcoin worthless and cause it to go to zero.
What do you think?
However, the probability of the central banks to coordinate and do this is zero.
The probability of even one central bank doing this is zero.
Heck the probability of one central bank of doing this for only three years is close to zero.
SINCE THIS COULD NEVER HAPPEN, THIS DECENTRALIZED, OPEN, IMMUTABLE, GLOBAL THING CALLED BITCOIN WILL ALWAYS GO UP LONG TERM.
The insane credit (monetary supply) growth is why Bitcoin, as the hardest money on the planet, will continuously barrel higher in price over long periods of time.
Annual LOW prices (floors);
2012: $4
2013: $65
2014: $200
2015: $185
2016: $365
2017: $780
2018: $3200
2019: ytd $3300
2020: 4,900 prediction
10K and beyond thenafter
$4,850 lowest possible crash price for Bitcoin in 2020What does the community think?
As already mentioned around the twittersphere, it may be more beneficial to observe the floor, absolute low prices by year to understand the sheer strength of Bitcoin's longterm price appreciation.
Annual LOW prices (floors);
2012: $4
2013: $65
2014: $200
2015: $185
2016: $365
2017: $780
2018: $3200
2019: ytd $3300
2020: 4,900 prediction
10K and beyond thenafter
What does this mean? Well, if you buy today at $4,030, and then you sell at the WORST day in 2020, this worst possible return would be a gain of +20%. Unlucky you?
Going beyond low prices, there is BIG opportunity to be buying now, and it doesn't matter much whether you get in at $5,000, or $4,000, or $3,000, because once we are around $35,000usd per bitcoin, you will have a multi-bagger within three years.
What does the community feel?
P.S. Does anyone have tips for a newcomer to get reputation? (I'm finding little documentation on specific steps/examples)
ETH S-H-S correctionETH follows a similar chart pattern as BTC. Their correlation is quite high - at the moment.
As I expect BTC to fall in the next days, ETH also will fall to deeper prices.
First support would be at fib retracement 61.8% (637$) - which would also finish the shoulder - head - shoulder pattern.
IF the support can´t halt the movement then I expect the course to fall until the long upwards trend (pointed line).
Caution: if this trend line is broken as well and not regained, ETH would change from the bullish to the bearish trend.
MACD + RSI + Volume (neutral)
Will the correction continue in 2018?
I see a lot of risks around the world, the central banks have pumped the markets with billions and trillions of dollars, yen, yuan an euros - with only little results to see in the real economy.
The dept has risen at new highs; china for example has now about 300% dept of GDP!
According to the austrian theory we have inflation when the quantity of money rises - and that is the case. Price-inflation is also visible in assets as equities, bonds, housings, loans and .... cryptocurrencies!
What will happen if all bubbles burst?
In the last analysis I read the writers do not expect this event to happen in 2018. Let´s hope this - but be aware at the same time!
Why Digital Assets Win: % Change, Compounding Returns, Low FEESThis is why digital assets are so lucrative and why they're so dangerous. Here is a long-term chart that shows traditional major US equities indices alongside the Gold market (the red and blue bars), as well as Bitcoin, Ethereum, and a few other promising digital assets. This chart shows precisely why Siacoin, DigiByte, and others are worth examining closely: the volatility is astounding. It's absurd. It's outrageous. And it's profitable. But you need to understand the technology, too. This chart is undeniable proof that alternative digital assets dwarf Bitcoin volatility, while having existed for only a fraction of the time. So, why WOULDN'T you invest in them??? The answer is so simple it' stupid.