Which Money Is Crazier: The U.S. Dollar or Bitcoin?

We compare the U.S. dollar with Bitcoin on their key attributes to determine which is better for transactions and preserving wealth, which is most absurd and which has serious flaws.Topics covered include:How are new U.S. Dollars and Bitcoin createdHow much has the supply of each currency grownHow both the dollar and Bitcoin have had rule changesWhy Bitcoin transactions are faster than non-cash U.S. dollar transactionsWhy both the dollar and Bitcoin require add-on layers to facilitate transactionsHow tax treatment of a currency can encourage or discourage its use for paymentsWhy divisibility is a critical attribute of any currencyWhy Bitcoin has been as volatile as the Russian rubleWhy Bitcoin is energy inefficient while having built-in incentives to use renewable energyWhat will determine the long-term viability of Bitcoin and the U.S. dollarFor more information on this episode click here.SponsorsMasterworks - the premier platform for investing in blue chip artPolicygeniusShow NotesFederal Reserve Statistical Release: H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks, August 19, 2021Check Processing—Federal Reserve Bank of New YorkGold Reserve Act of 1934—Federal Reserve HistoryCreation of the Bretton Woods System—Federal Reserve HistoryFinancial Accounting Manual for Federal Reserve Banks, July 2021: Chapter 5. Federal Reserve Notes—Board of Governors of the Federal Reserve SystemFinancial Statements: Federal Reserve Bank of Kansas City; As of and for the Years Ended December 31, 2020 and 2019 and Independent Auditors’ ReportA Complete Guide to Understanding and Protecting Against Inflation—Money For the Rest of UsBitcoin: A Peer-to-Peer Electronic Cash System by Satoshi Nakamoto—BitcoinWhat is a fork?—CoinbaseMapping the Major Bitcoin Forks by Ashley Viens—Visual CapitalistTotal Circulating Bitcoin Chart—BlockchainThere’s Enough Bitcoin For Everyone by Paul Opoku—NasdaqLightning Network: Scalable, Instant Bitcoin/Blockchain TransactionsCrypto Crime Summarized: Scams and Darknet Markets Dominated 2020 by Revenue, But Ransomware Is the Bigger Story—ChainalysisAmericans' Spending on Illicit Drugs Nears $150 Billion Annually; Appears to Rival What Is Spent on Alcohol by Beau Kilmer—RAND Corporation39% of PoW mining is powered by renewables – Cambridge University Cryptoasset study by Gareth Jenkinson—The Daily ChainBitcoin Energy Consumption Index—DigiconomistThe Bitcoin vs Visa Electricity Consumption Fallacy by Carlos Domingo—Hacker NoonEl Salvador Readies Bitcoin Rollout With 200 ATMs for Conversion by Michael D McDonald—BloombergRelated Episodes316: Paper, Rocks, or Digits—What Makes the Best Money335: Are Non-Fungible Tokens (NFTs) Good Investments?339: How To Make Money with BlockFi, Dai and the Evolving DeFi EcosystemSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.