Category Archives: money

On Bitcoin rivals


While all the hype might make you think that Bitcoin is  the only cryptocurrency, there are a number of alternatives out there and this piece in Fortune outlines what they are: 5 Bitcoin Rivals That Are Rapidly on the Rise.

While this piece lists a handful, I expect that there will be a flood of such things in the future as financial markets look to capitalize on this mixture of money and technology.

The Fortune piece is also not bad in summarizing some key facts about Bitcoin if you still find it hard to get your head around it.

I expect Bitcoin to crash to a much lower level, but I don’t see cryptocurrencies going away. Knowing more about them, especially because they could have a major impact on global economies, is worthwhile.

Advertisements

Where to buy and sell Bitcoin in Toronto


I don’t recommend participating in the madness that is Bitcoin, but if you want to and you live in Toronto, then check this out: How to buy Bitcoin in Toronto.

Caveat emptor.

 Ko-fi: a new way to raise money online

a small cup of coffee
There are many ways to raise money on line, from Patreon to Indiegogo to Kickstarter. A more modest way to raise money online is this site: Ko-fi. I think it is perfect for anyone wanting to share things with others in exchange for a modest amount of money (i.e. the cost of a cup of coffee, approximately). If you were looking for something like this for your site, I recommend you check it out.

By the way, if you want to check it out (and buy ME a coffee), here is my link. Thank you!

A cautionary tale of what low taxes and libertarianism brings

Amish women on the beach
There can be many lessons that can be drawn from the story here: The Rise and Fall of the ‘Freest Little City in Texas’

The ones I drew were

  • You get the society you pay for. In this case, the people of this part of Texas were unwilling to pay for anything, and they got nothing in return. It’s hard to believe this even needs to be said in this age, but apparently it does.
  • Even basic services cost money. That money comes from taxes or service fees.
  • Those services are expensive to pay for individually: it makes much more sense for people to pool their money (in the form of taxes),  to make it cheaper overall for everyone.
  • Taxes are only part of what makes a society, but a society that is based on money and that does not have taxes is no society at all.
  • Only a society that does not depend on money can get away without taxes. Typically those a tightly knit,  cohesive, pre-money communities that depend heavily on sharing and barter. These communities are more socialist or communist in nature as opposed to libertarian. More like an Amish community or hippie commune or a religious community of some form.
  • The best way to have a libertarian society is to have one of great abundance. Scarcity requires people to share and work together if they want to survive.

It’s a good story. Read it for yourself and draw your own conclusions.

(Photo above is Amish women on the beach)

Why the stock market goes down and why it goes up (and what you should consider)

Stock market gains chart since 2009

Since the start of the great recession in 2009, two things have happened in the stock market:

  • In the short term, events have occurred that correlate with declines in the stock market
  • In the long term, the stock market has steadily improved significantly

This leads me to two conclusions

  • Always take a longer term view of the stock market
  • The things that drive the stock market in the long term are very different than the short term drivers

The second conclusion is something that this piece tries to tackle: Gradual Improvements Go Unnoticed. It is easy to see what drives the stock market down in the short term: it is difficult to ascertain what drives the stock market up in the long term. Gradual improvements could be a contributor. Other things, like the activity of the central bank, affects this. Even how other markets in the world in the world can affect the stock market.

Want to know why it is so expensive to get tickets to special events?

Then you want to read these two really good pieces on why it is brutally tough to get tickets to an event without paying a fortune:

What it comes down to is a very limited supply and a very high demand. But that’s obvious. Read the pieces to see just how it really plays out.

The rich stay richer and the poor stay poorer (now with data to back this up)

I was impressed by this study of economic mobility over many generations in Florence: What’s your (sur)name? Intergenerational mobility over six centuries | VOX, CEPR’s Policy Portal. They make a good case that the richer families stay richer and the poorer families stay poorer regardless of the many other changes that occur in an area.To add to this, VOX reviews it and also references a study done in Sweden that finds something similar (Today’s rich families in Florence, Italy, were rich 700 years ago – Vox).

It’s depressing, but not surprising to me. I suspect that while individuals may rise and fall in terms of economic mobility, specific families work to insure that the wealth acquired is maintained through marriage and inheritance. Worse, conditions for poorer families are such that they can never acquire enough wealth to move them from the lower percentile to a higher one.