BITCOIN: CAUTIOUS OPTIMISM The basics and a quick update about recent events.

This is a chapter from Cassandra’s Memo, latest download available free HERE. And HERE is more good news from Florida.The Bitcoin advocates say it can defeat the central bankers. It is an electronic currency invented in 2008 that is currently classified as a commodity like gold. This means that capital gains tax is due when it is sold.We know its structure is robust because it has been tested repeatedly by sophisticated hackers throughout its existence. If they were able to penetrate Bitcoin, their reward would be billions of dollars. Many serious people have worked a decade on Bitcoin’s structures including the “wallets,” the “mining,” and the exchanges.The total number of Bitcoins has an absolute limit of 21 million, and about 19 million exist now. This is locked into the source code. Because the supply is limited, it cannot inflate. Bitcoin is outside of banks or other central control. It exists in thousands of computers worldwide—the most massive computer network ever built.Game theory says people hold more secure currencies and spend less secure ones. This means that the good ones cannibalize the inflating ones. This has so far proven true for Bitcoin, and its usage and price have increased for over a decade. It is the best-growing asset class—ever—and has appreciated faster than any stock in history.Hyperinflation destroys both the money and the economy. For example, the value of Venezuelan currency has wasted away. Shops there cannot get essentials and are left empty. The following chart shows what has happened to the dollar over the years as its value was purposely destroyed.For more, see: https://robertyoho.substack.com/p/bitcoin-optimism#detailsSupport the show