Showing posts with label Coin. Show all posts
Showing posts with label Coin. Show all posts

Thursday, March 26, 2015

Gold Prices Moving Up

Gold Key, weighing one kilogram is used to acc...
Gold Key, weighing one kilogram is used to access a ten digit account number which is known only to the bearer of the Gold Key. (Photo credit: Wikipedia)


Gold Price History - Karatbars from Chuck Thompson

Gold prices are trending upward ever so slowly but yet in a steady pace.  Above is the most recent ask and buy back prices per gram for each of its one gram gold cards from Karatbars.  Karatbars is a German company looking to make their gold cards a form of legal tender throughout the world.  Many networks are already in place for accepting exchanges on these gold cards and anyone with a brick and mortar store front can accept them now in any country that wants to.  One just needs to setup a free account and fill in all the questions online for approval.

  What is interesting to note is that gold has not changed its value throughout history.  Its money that has devalued creating the illusion of gold increasing in value against dollars and other currencies and forms of exchange.  What truly makes gold an exchange of value?  Nothing beyond the fact that it does not break down like other metals.  Steel will corrode.  Iron corrodes.  Copper will eventually disintegrate.  Brass eventually disintegrates.  Silver, gold and platinum do not disintegrate.  This is why they were picked for mediums of exchange.

  Initially gold was used more as ornamentation and decorative purposes and had no other value beyond that.  Technically speaking lead is worth more per ounce than gold depending on what it is used for.  Lead being more readily available than gold, it makes for creating great bullets to form a defense.  Who is going to use gold bullets for defense?  Who in their right mind will throw gold at a thief as a form of defense?  The thief will want to know how much more gold you have.  Send one lead bullet his way and see how long he will stay around to see how much more lead you have.

  If the world goes to hell tomorrow I want lead bullets not gold.  Who has a gold bomb?  Again, gold's only value is in its ability to not corrode or disintegrate into nothing.  There is where the only true value of gold exists.  Why people want to own gold and silver.  They are well proven mediums of exchange because the monetary value does not disintegrate into dust over time.  If you are interested in more information on gold ownership you can go to our righthand sidebar and click the link for Karatbars.  You can sign up for a free account through our link and also sign up to accept karatbars in your business if you so wish.  You can own the actual cards and keep them with you or you can maintain free storage in their place of origin in Germany if you want.   Paper money continues to devalue while gold maintains its value.  You decide what makes more sense.  

Thursday, January 2, 2014

Let's Talk Bitcoin, Movers and Shakers, Podcast E-13

The bitcoin logo
The bitcoin logo (Photo credit: Wikipedia)



Movers and Shakers, Let's Talk Bitcoin podcast.  Now this is from back in the late spring of 2013, however, the objective is to catch people up on the news and information all surrounding the Bitcoin revolution.  Don't have time to listen to the show here on the site?  Download an Mp3 copy to play later when you do have the time.  The show is an hour and a half long.  We have found these shows to be very helpful and informational in understanding everything going on in the Bitcoin revolution.  As we go to print on this post, the present Bitcoin to dollar ratio is about $778.00 per single Bitcoin.  It's been pretty well all over the board of the 700's these past few days.

  From the point of speculation, Bitcoin is a very wild ride.  How do you hedge against it's constant price swings?  Stack your buys and or sells.  (What?)  Do not buy all your coins or sell all your coins on one single order at one time.  Spread out either the purchase or selling of Bitcoins over a period of several days, weeks months or what have you.  Do not seek to buy 10 bitcoins at one time.  You will suffer the market fluctuation swings more harshly if you do.  If you buy or sell over a period of time, you will have a more stable holding that is not being scrambled to death by these market shifts.  Within a 10 minute period we have seen swings of up to $10.00.

  The very good news is that you can buy or sell fractions of a single coin.  You are not locked into buying a full coin at anytime.  So if you want to put say one thousand dollars into Bitcoins?  Stack the buy to spread over several days.  Buy at $50.00 or $100.00 intervals.  Is there any time of day better than another?  No.  It's a world market and so as one nation sleeps, another is actively trading.  This isn't crude oil futures where the market closes at 5:00 PM, Monday through Friday.  This is a world market that is 24/7.

  Bitcoin as an investment vehicle in our own opinion is insane at this point and not really recommended.  Bitcoin as a speculation is also insane.  Bitcoin wallet setup is incredibly easy.  Buying or selling Bitcoin, at least in the US is still a nightmare however and has a long way to go.

  Any business can set up an account to accept Bitcoin payments.  Once you start taking Bitcoin payments, you can also refund Bitcoin payments as easily as you accept them.  But how do you know if you are making any money with the wild swings in the market that can wipe out 10% of your holdings in a matter of hours or even minuets?  It's going to be a long time before you can stabilize Bitcoin like other real world currencies.  Here is the issue.  Let's say you sell an item for the Bitcoin equivalent of $100.00 US.  Let's say that Bitcoin was trading at $1,000.00 per coin.  The next day you need cash for whatever reason and need to cash out your Bitcoin.  Some country decides that Bitcoin has violated some International law and now your Bitcoin holding that was trading at $1,000.00 US yesterday is now only $500.00 US today.  You just took a major 50% loss.

  Now Bitcoin is supposed to make life and accounting much easier for everyone.  If it is the only currency, we would agree.  If you have to translate every transaction with it's subsequent inventory and dollar conversion value, then you have just created one of the worst accounting nightmares anyone could ever imagine.  How can anyone possibly do that?  If you only sell one item a day, you spend half the day just doing the accounting for that one sale.  How could Wal Mart, with thousands of sales per minute, ever do that with all of these wild fluctuations in the Bitcoin to dollar value?

  This is why businesses are not jumping in on accepting Bitcoin as a form of payment, especially in the US.  At the moment there are to many issues that are not addressed that need to be looked at more closely.  Most US businesses simply can not afford all the hits from the accounting perspective, legal and government intervention perspectives and possible need for an influx of specialists that do not exist to handle all of these new issues.  More to come.
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