Bitcoins have lost $174,458,406.27 since July 9th 2011.
September 27, 2011
A report has been published showing a massive loss to the bitcoin economy.
Total Value of Entire Bitcoin Economy $36,126,021.96
A total figure of USD $1,060,609.29 per month must enter the bitcoin economy to keep the current value of USD $4.910228203451 per BTC
$245.51 worth of BTC are printed every 10 minutes by mining or $1,060,609.29 per month or $12,727,311.50 per year.
Bitcoins traded at nearly $35 at their peak with ~6,000,000 coins in circulation on June 9, 2011 the total Bitcoin economy was valued at $210,000,000.
Bitcoins are now trading at $4.910228203451 with 7357300.000000001 coins in circulation the total Bitcoin economy is now valued at $36,126,021.96
This represents a net loss of $174,458,406.27 from peak to this exact moment (updated in real time) of the entire bitcoin economy.
If Bitcoins were stable at their peak of $35 on June 9, 2011 , the bitcoin economy would be worth $257,505,500.00 rather than $36,126,021.96
Related Posts:
Flexcoin the bitcoin bank announces Cold Storage
September 26, 2011
Flexcoin has announced Cold Storage for bitcoins. It’s a user definable cold storage option so individuals and companies that have bitcoins can send them to a physically turned off computer.
This increases security for the users by automatically forcing a human audit prior to withdrawing their bitcoin, as the machines have to be turned on, and resent back to the users.
This is a first for any Ewallet and allows for online way to keep their bitcoins offline without being tied to a desktop.
Another key reason that individuals find the service appealing is that all coins that sit in cold storage still generate a discount payment. Meaning individuals earn bitcoins on their stored value. Solving the time value of money problem that has plagued bitcoins since inception.
As usual, flexcoin to flexcoin transfers are 100% free.
For more information read flexcoin.com, the bitcoin bank‘s TOS located under the FAQ menu. For information on how Flexcoin Generates discount payments, please read the Fee Schedule also located under the FAQ menu.
Related Posts:
UARS TRACKING IN REAL TIME
September 23, 2011
You’ll want to note that though it does load, it takes time due to sever load. So be patient.. it might help to hit the shift key while refreshing as that forces a load non-cache.
Average Load time of UARS Tracking image is roughly 23 seconds.
The above, curiosity of Heavens Above, provides real time tracking of the Defunct, earth crashing UARS Satellite.
The above image is updated in real time, so please refresh to see the latest, you’ll see a noticeable change roughly every minute or so. At the time of this posting it’s off the eastern seaboard of Brazil.
There is a slight chance it will hit the United States, and slightly under a 1:4000 chance it will kill an individual human somewhere on the planet Earth.
Fairly scary for most, you’ll notice that most tracking services go down in flames after a few minutes of posting, however we feel this one will keep up.
Hopefully it hits the ocean.
Related Posts:
Open Letter to Ben Bernanke
September 22, 2011
Dear Ben,
The market is down 400+ points today on September 22, 2011 and it’s not even the end of lunch yet. The message is clear. The market is pricing assets as if we were entering the great depression.
1929
Market Crashes in October
New President Sworn in
Unemployment Relief formed
Simulus program launched
UK Ends gold standard, prints money
Federal Reserve Buys Troubled Assets
Revenue Act of 1932
2008
Market Crashes in October
New President Sworn In
Unemployment Relief Extended
Stimulus program launched
US announces QE, prints money
Federal Reserve Buys Troubled Assets
Revenue Jobs Act of 2011
Considering how closely we mirrored the 1929 start of the great depression, it’s not only accurate going backwards, but it appears to be accurate going forward as well.
The great depression had 2 major downturns, one in 1929 and another one in 1937 . It appears that this one will also have 2 major downturns, one in 2008 and another in 2011 with corresponding unemployment to reach a critical level on or about 2012.
Current Unemployment in the United States is 16.2% based on the U-6 measurement (this is the closest we have to the way they measured unemployment in the 1930′s)
The Unemployment rate in 1932 was 16.2% as well, from that point it took a turn to the worse and hit a mind boggling 25%
The US at the time had a fraction of the population it does now, this would translate to roughly 38.4 million Americans out of work from the current 24.5 million that are officially reported from the U-6 measurement should the unemployment levels reach that point
Levels of unemployment in that range are what is viewed as worst case, and increasing likely based on current economic output from Europe, the US and China.
In other words, the market doesn’t like the policies coming from the Federal Reserve and are pricing in a depression, not a recession.
If your helicopter is going to fly overhead, it needs to stop flying over banks. It needs to fly over Main Street and let the banks compete for deposits, the other valid option is to do nothing and let the American (and world) population take it’s medicine.
We want to stress however that prior the medicine prescribed in the 1930′s was called World War II.
Related Posts:
Simple Formula proves Obama cannot win 2012
September 15, 2011
Pesky facts tend to get in the way of elections. For example a little known site, searchelection.com locked down a formula that has proved over the past century that Obama cannot win. Period.
The simple site focuses 100% on the economy using just 3 factors.
The way it measures inflation not by the CPI but rather gas prices
It compares household wealth (with the assumption that many individuals have money in their 401k) by the closing DOW JONES price rather than home prices, and lastly measures optimism in the economy by the unemployment rate (unemployed people don’t shop much, which is 70% of the economy).
The issue is that the formula has never been wrong. So it’s perhaps the strongest election predictor ever, yet it’s not quite cited in the media…. some call it the “Ron Paul” of election formulas due to it’s lack of media attention.
Related Posts:
Gold passes Platinum
September 8, 2011
Gold has exceeded the value of Platinum for a period of time yesterday. Traditionally Platinum traded much higher than Gold, but do to recent economic events it appears that Gold exceeded the value of Platinum for a period of time. Over the past few months The story is breaking. However the oddity appears to become more of the norm. Gold and Platinum though very differing metals are both considered precious. One of the four elite metals that carry a currency code. The four are Gold, Silver, Platinum and Palladium. Their currency code is listed below:
Silver = XAG
Gold = XAU
Palladium = XPD
Platinum = XPT
US DOLLAR = USD
Euro Member Countries = EUR
Regarding Gold vs Platinum. Gold has very little industrial uses but is viewed as the ultimate safehaven of wealth storage, whereas Platinum is used in catalytic converters. When Platinum is booming it’s because they assume more cars will be built hence supporting the price. When Gold is outshining Platinum it means the market thinks that times will be worse.
Currently the market things times are going to be very bad.
Related Posts:
The Bitcoin Printing Press Problem
September 7, 2011
Bitcoin has been promoted as stable digital currency, and in fact it’s 100% transparent. The opensource nature of bitcoins as well as the technology behind it has a strong allure with several groups. The libertarians love it due to the fact that it’s money supply is well documented and not controlled by a core group of people or individuals. The technology savvy group loves it due to the innovative way it distributes though a peer to peer system. Others like it due to the nature of how bitcoins are decentralized.
Some history surrounding the bitcoin system:
The bitcoin system was initially designed by an individual (or group) that goes by the name of Satoshi Nakamoto (most likely the name is an alias). The self published whitepaper was published in 2009. In mid 2010 the currency was actively traded for pennies for each bitcoin. However in 2011 after some articles surrounding it in mainstream media it skyrocketed to 35 dollars a bitcoin. Showing an appreciation of 10′s of thousands of percentage points.
Then the bottom fell out in July after a series of high profile hacks, high profile thefts and a questionable PR individual that has a legacy of fraud. It was amazing that the currency still traded in the 10 dollar per bitcoin range.
Now bitcoins are trading in the mid 6 dollars per coin range. Still an impressive jump from the pennies it traded from last year, and the year before it didn’t exist.
It proves that it has staying power due to the distributed nature of them. It also proves without a doubt that the currency can survive huge amounts of problems, especially at it’s sub 900 day old age.
However it’s fault may not lie with the hacks, scandals and theft, it’s fault may lie with the initial design by Satoshi Nakamoto. It’s strongest strength may turn out to be strongest weakness as well.
Currently the bitcoin system awards 50 coins every 10 minutes to whoever solves a block. It’s typically called mining. The miner then when he receives his award he also generally passes along any transactions which include fees to him.
This means that the typical “reward” is 50 coins plus 2 or 3 additional as transaction fees (if it was a a decent transaction loaded block).
This extremely innovative way to continue transactions allowed for individuals to have timely transactions. It will continue to reward 50 coins every 10 minutes. However the amount is halved every 4 years.
The coin value of a block is 50 BTC for each of the first 210,000 blocks, 25 BTC for the next 210,000 blocks, then 12.5 BTC, 6.25 BTC and so on. In other words it continues to half in reward all the way until the year 2140. Then the total number of coins in circulation will remain static at 20,999,999.9769 BTC.
The problem is when Satoshi Nakamoto designed the bitcoin system in 2009 he didn’t allow for a mechanism to decrease or increase the creation rate. It’s not the total of 21 million bitcoins that are the problem, it’s how fast they are released that is.
The algorithm as designed expects demand to decrease in 1/2 strength amounts every 4 years over the next 129 years.
The problem is that since there is no way to adjust the reward ratio, the coins fall in value dramatically if demand doesn’t meet that high growth rate. Flexcoin, the bitcoin bank released a study showing exactly how much money needs to enter into the bitcoin community in terms of growth every month. It’s a staggering $1.5 million dollars at current growth rates just to maintain the $6 dollar per bitcoin price, because $1.5 million dollars (at current prices) worth of bitcoins are created every month. It’s a grand total of 216,000 new bitcoins printed per month.
216,000 multiplied by the spot price of each bitcoin printed every 4 weeks and you start to appreciate the magnitude of it’s inflation rate.
Now this number drops in 2013 to half that figure, that means in 2013 it will need only $750,000 entering the system (again assuming 6 dollars per bitcoin, which most likely will change dramatically from this point).
A central bank when faced with a huge inflation rate like what bitcoins are experiencing would virtually halt printing of coins until demand caught up. However since bitcoins lack that aspect it’s going to be a downhill road in the per bitcoin price until 2013 unless demand increases dramatically (possible, but unlikely). Then the banker would most likely allow for it to increase based on demand back to it’s natural level.
However since we’re at the mercy of a algorithm penned in 2009, we have to wait until 2013 when the algorithm automatically will attempt to stabilize the price by reducing by half the amount of bitcoins printed. It’s an endless swing cycle until the year 2140 (abit a reduction in swings as each instance is half as much as the one prior).
Perhaps the best way to phrase this is simple. If bitcoins can survive with an above 3 dollars per bitcoin price until 2013, it’s most likely going to be with us forever.
Related Posts:
NASA : We Admit the Moon Landing Mission Photos were edited
September 2, 2011
We hate to break it to you, but we reported this back in 2010 but now we have NASA has finally admitted earlier this year that they did in fact edit photos from the Apollo Missions. Perhaps not to the extent of Apollo 18. (the new movie in theaters).
This is the actual first Earth rise Photo from the Apollo Moon Landing Missions. The problem is that it’s black and white AND sideways, and it can’t be the first image of Earth Rise. The population won’t accept that as the first image. The below image has to be the first image. It’s color and right side up.
We know that’s most likely not the image you think of when you picture the first “Earth Rise” photo (though it’s not the first). It’s most likely this one:
The problem is the popular NASA released image wasn’t the first one, nor was it the true one. In fact the above image was edited from this one.
Clearly the problem with this image is that it’s sideways. Hence the earth isn’t “rising” the earth is “coming around the side” hence it can’t be the image for public consumption.
So NASA did what many of us suspected, they tossed out the first image, then edited the second one.
It’s unfair to future generations because it implies that the astronauts orbited the moon from the north to south pole, but in truth they orbited from west to east.
With one photo edit they completely changed history.
We understand we are nitpicking at things, but one photo did do exactly that, it edited history.
So what we have is future generations of people looking backing into “historic photos” and assuming that events occurred “that way” when in reality they didn’t. The astronauts didn’t orbit the moon from north to south, as the photo suggests.
This is a historical inaccuracy that is somewhat dishonest to future generations.
Related Posts:
Recognized by Advertising Age Magazine as top Power 150 news outlet for Advertising and Marketing.
Recognized and listed in Google News. Don't stress, we're Satire
Ad Agency Advertising
