Bitcoin is a cryptocurrency that can be used to buy and sell goods and services anonymously, without the involvement of a bank or government. Transactions are tracked by a network of independent computers using blockchain technology. Recently, bitcoin has received much press, not because of its use as a currency, but because its value appreciated over 20,000% in 2017. What is the underlying reason for the appreciation of bitcoin? More
Investors of bitcoin are not the faint of heart. Their wild ride took them from a low of $739.55 to a high of $19,870.62 in 2017. (Yahoo Finance) During the ride the value experienced swings greater than 5% in a single day on 240 occasions. (That is the equivalent of the Dow Jones Industrial Average moving approximately 1,000 points in a day.) What caused the huge changes in value? Supply and demand, of course! The demand for bitcoin has been a tug of war between speculators and investors who be More
President Trump nominated Jerome Powell as the next Chairman of the Federal Reserve on November 2nd. On Tuesday he testified before the Senate Banking Commission. It is very likely he will be confirmed by the Senate and replace Janet Yellen in February. Who is Mr. Powell? Why did President Trump choose him? Will his leadership change recent monetary policy? What challenges will he face? More
Review our past State of the Economy blogs and you will find a consistent message. Low unemployment should put upward pressure on the price level. It hasn’t. This morning I read this explanation in the Wall Street Journal. I think the blog explains the Federal Reserve’s dilemma and why the improvement in employment has not increased inflation yet. Note it More
