Deutsche Bank Celebrates ‘Dollar Day’ by Accidentally Shilling Bitcoin

When the fat-cats at Deutsche Bank instructed their social media interns to draft a tweet commemorating National Dollar Day, they probably didn’t …
deutsche bank shills bitcoindeutsche bank shills bitcoin

German financial giant Deutsche Bank has accidentally made the case for Bitcoin while commemorating National Dollar Day. | Source: Shutterstock

When the fat-cats at Deutsche Bank instructed their social media interns to draft a tweet commemorating National Dollar Day, they probably didn’t realize that they’d accidentally end up shilling Bitcoin to their more than 650,000 followers.

But while the Bitcoin isn’t directly mentioned, it’s difficult to imagine anyone writing a better advertisement for the leading cryptocurrency.

It’s #NationalDollarDay! #OTD in 1786, Congress established the US monetary system and introduced the US dollar. In today’s money, one dollar from 1791 would be equivalent to 27.60 USD. #ThrowbackThursdaypic.twitter.com/FwOBvD8kvh

— Deutsche Bank (@DeutscheBank) August 8, 2019

Is Deutsche Bank a closeted Bitcoin admirer?

In the tweet, Deutsche Bank observes that since the U.S. monetary system was established on this day in 1786, the dollar has lost tremendous purchasing power. The German multinational notes that the equivalent of a single dollar from 1791 now has the purchasing power of about $27.60 today.

You do not need years of exposure to Bitcoin to appreciate that Deutsche Bank has by implication turned a negative spotlight on the world’s favorite reserve currency – and by extension, the worldwide fiat currency regime. The bank inadvertently made a case for an anti-inflationary currency that is not printed at the whim of unelected government bureaucrats.

With the maximum number of Bitcoins that will ever be in circulation capped at 21 million, the cryptocurrency was designed to be free of the inflationary risks that all fiat currencies have proven to be susceptible to. This was stated unambiguously in the Bitcoin whitepaper:

“Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free.”

And yet the dollar is hardly the world’s worst fiat currency…

Deutsche Bank’s celebration of a fiat currency that has lost its purchasing power dramatically over the years is all the more significant for Bitcoin since the dollar is one of the world’s strongest currencies.

As of last year’s third quarter, the U.S. dollar constituted close to 62 percent of all the foreign exchange reserves held by central banks across the world.

Bitcoin vs USD on national dollar dayBitcoin vs USD on national dollar day
U.S. dollar dominance as a reserve currency | Source: Statista

This means that if your wealth is held in the dollar and you are a little apprehensive over its declining purchasing power, you should be outright panicking if you are holding other fiat currencies.

Bitcoin offers freedom from the tyranny of fiat

So how bad can it get? Well, unchecked printing of money by central banks has in the past led to the total collapse of fiat currencies with Europe, Latin America, and Africa offering standout cases.

Germany’s Papiermark in the 1920s is a perfect example from the 20th century when yearly inflation rose to over 300 million percent in the European country. Most recently, Zimbabwe provided another example of why a hard-capped cryptocurrency is the future when inflation rose to 500 quintillion percent.

Fortunately, there is no need to repeat these same mistakes in the 21st century with Satoshi Nakamoto already having gifted us the solution: Bitcoin.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

Some boring facts about Bitcoin, and why you should remember them

Yes, Satoshi Nakamoto is the name of the enigmatic creator of Bitcoin, the person who started the world that we live in today. The honour of being the …

It has been around ten years since the first time that Bitcoin came into existence. With this amount of time passing, we should do a quick review of some of the more boring facts about Bitcoin, which all determine, in one way or another, what Bitcoin is to us today. These facts need the occasional review, simply because they are important to the history of the currency. Although, the importance of these facts lies not just with the curiosity of their validity, but also to what they can tell us about our own attitude towards the currency today. They tell us where the currency came from and what it means to toe society in general. They are a way to contextualize Bitcoin and cryptocurrencies in general for us so that we can be self-aware of how we use them in our day to day lives and why we use them in those specific ways. In a way, they are a mirror to the cryptocurrency enthusiast of today, just one more opportunity to stop and consider where we stand after ten years with Bitcoin and now with other ryptos.

Value of Bitcoin at its launch

The first thing that I want to discuss is the value of the very first Bitcoin. The history of the currency starts very humbly, being worth so much less than it is today, that it is even funny to consider how it could have gotten from there to here. It is also not surprising that so many people hesitated, at the time, to in any way invest in cryptocurrencies or anything that was related to them. At the very beginning of its history, Bitcoin sat at the modest price of $0.003. Compared to today, that is nothing. The change that the value of Bitcoin has seen since is astronomical, with the decimal point moving 9 times to get to where it is now. It makes sense now why the first purchase ever made with Bitcoin was of Pizza, using about 5000 Bitcoins at the time. That is also when the real history of Bitcoin got started, May 22nd, the date that started the crazy journey that brought us to where we are now.

The growth of the value of Bitcoin has not been an accident, or the result of speculation. It is simply a sign of the times changing. The people are losing the trust they had in traditional payment systems, currencies and financial assets fast, and are demanding an alternative to the well established. Cryptocurrencies are offering users a chance to invest in an asset that can be an alternative in a world where everything is either controlled, tracked or even at the risk of failing. The modern global economy is not inspiring a lot of trust among the general population, and the demand for alternative ways of exchanging money is becoming high. Bitcoin is just one of the many, and the most popular, ways to keep yourself not bankrupt in a situation where the world is no longer able to guarantee your future to you.

The value of 1 Satoshi

If you know what Bitcoin is and have ever tried to pay for anything with it, you are aware of Satoshi. Yes, Satoshi Nakamoto is the name of the enigmatic creator of Bitcoin, the person who started the world that we live in today. The honour of being the person who created the currency has been further emphasized by the fact that one-millionth of a Bitcoin is now called a Satoshi. Satoshi has a relationship to Bitcoin similar to that of what cents have to the Dollar. Except, instead of being 1/100th of a Bitcoin, it is 1/1000000, making it a much smaller fraction. The initial reason for this is pretty simple – after reaching a certain value, it became hard to keep referring to fractions of Bitcoin as such, and the quantitative of Satoshi was introduced. But, anticipating that the value of a Bitcoin is going to keep growing, people decided to create a unit of Bitcoin that would hedge against that in the future.

So why is it important that one Satoshi is a millionth of a Bitcoin? Because it tells us of what the world and the cryptocurrency community is expecting the currency to achieve in the future. Many people are expecting that someday, Bitcoin will be valuable enough that one Satoshi will be a viable sum of money for everyday use. It tells us that the community is extremely optimistic about the value of Bitcoin and it also tells us that it has set itself a goal that is beyond the simple valuation and use of Bitcoin that we have today. The goal is to have the value be higher, yes, but it is also to keep the value steady so that it can be used for everyday applications without any kind of issue or fear.

Bitcoin Network computing power

When you take the top 500 supercomputers in the world, combine their computing powers and compare them to that of the computing power of the network that is currently mining Bitcoin, you will discover that the Bitcoin network is 7468 times more powerful, and getting more powerful every day. This information might be a little scary, after all, dedicating this much of our computing power to Bitcoin might not necessarily be the most responsible thing to do. But it is also information that can tell you a lot about what it means to be a Bitcoin society and a Bitcoin miner. Specifically, it is extremely hard to contribute to the community significantly. The amount of computational power that it takes to mine a single block, nowadays, is extremely high and extremely expensive to achieve. So, many miners working in the industry today, face issues such as not being able to make ends meet or have to quit, simply because they cannot afford to participate in the activity anymore.

But, on the other hand, it also shows how far the Bitcoin mining community has come. Once upon a time, the community was small, and the number of coins mined day today was pretty small as well. As the numbers of miners increased and the numbers of people participating in the industry increased, we have achieved a level of dedication that has not been seen before. Now, the Bitcoin community is one of the largest in the world, and that is something to be proud of and to be considerate of.

Limit on the number of Bitcoins

There are those who think the Bitcoin is an unlimited resource, but the fact of the matter is, they are not. The number of Bitcoins in circulation at one time is limited to 21 million at the same time. The reasons for this are many, some of them relating to the stress on the Blockchain Network in terms of the computational power needed in order to conduct transactions with more Bitcoins than that, and the others being related to the fact that the value of cryptocurrencies needs to be kept at a certain level of stability, and this is one of the many ways to do so. The fact that there are only 21 million Bitcoins allowed for circulation has many effects on the international cryptocurrency economy, some of them positive, others rather annoying. But one thing is for certain, there have been attempts to breach this limitation.

Specifically, in the starting days of cryptocurrency, a hack took place that allowed for a transaction of trillions worth of Bitcoins in a single transaction. While the Bug was quickly mitigated and fixed, so that it could never be exploited again, the system stress at the time was immense. The Blockchain network and the miners suffered quite a lot through that transaction, and the value of Bitcoin saw quite a bit of a drop because of that single occurrence. But, thankfully, the value of Bitcoin was already pretty low at the time, so the currency got a chance to rebound.

Ghost Bitcoins

This is something that is often forgotten, which is a little more than appropriate when speaking of Ghost Bitcoins. You see, a significant number of Bitcoins that have been mined and given to users are now inaccessible, either because the keys to the wallets they are store in have been lost, or the wallets themselves have been lost. When I say significant, I mean that 64% of all Bitcoins that have ever existed have been lost and become Ghost bitcoins, not being able to contribute to the crypto industry economy in any other way than just existing as a nonexistent resource. These are the coins that are keeping the value of Bitcoin pretty high, by making the resource as scarce as it is, it provides certain stability. The knowledge that a significant part of cryptos will always be inaccessible leaves Bitcoin being pretty stable in its value.

But it acts as an important lesson as well – many people forget to do the very basic thing when dealing with Bitcoin – keep track of it. Without the keys to wallets, you have no access to the Bitcoins, meaning that the Bitcoin is no longer yours. So, making sure that you don’t accidentally make ghost Bitcoins is important, more so than even buying them in the first place. Creating new Ghost Bitcoins is equivalent to creating additional issues for the industry. After all, Bitcoin is a finite resource, and getting rid of a significant part of it is only going to cause issues at some point in the future.

Related Posts:

  • No Related Posts

US crypto tax bill would give holders a little relief

In a rare show of support for the crypto industry, House Resolution 3963 … “allow exclusion of gain or loss on like-kind exchanges of virtual currency.”.

In the U.S., the Internal Revenue Service (IRS), the department responsible for collecting taxes, asserts that cryptocurrency assets are forms of property and, as such, are subject to tax law. The department has already started going after crypto holders in an effort to get them to pay up, but a bill submitted to the House of Representatives could limit how much the IRS could collect. In a rare show of support for the crypto industry, House Resolution 3963 (HR 3963) would “allow exclusion of gain or loss on like-kind exchanges of virtual currency.”

HR 3963, “Virtual Value Tax Fix Act of 2019,” was introduced by Representative Ted Budd of North Carolina and seeks to update the Internal Revenue Code of 1986 (IRC). It has already been referred to the Committee on Ways and Means and reads, in part, “No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.”

Budd, who actively seeks ways to improve the IRC on different levels, wants to prevent personal crypto exchanges from being taxed twice. Under the current tax law setup, this is possible. He has testified previously before the Ways and Means Committee that crypto tax laws should be crafted in a similar fashion to those of foreign currencies.

The lawmaker was behind House Resolution 3708, the Cryptocurrency Tax Fairness Act, that also sought to update the IRC. It would force the IRC to view personal cryptocurrency purchases as transactions in foreign currency, which are currently not taxed. Budd argues that, since the IRS says that crypto is property, it should have the same coverage as those foreign currency transactions.

The bill wouldn’t be retroactive, only covering new transactions. It would also only be in place until the end of 2024. That happens to coincide with the timeframe for a new payments platform identified by the Federal Reserve, but this could just be a coincidence.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

Related Posts:

  • No Related Posts

Bitcoin Association hires Lise Li as China manager to grow Bitcoin SV in the region

BSV is also the only project that adheres to the original design of Bitcoin creator Satoshi Nakamoto. In short, BSV is Bitcoin. Lise Li brings valuable …

Bitcoin Association has named Lise Li as its new China Manager. Lise is the former Chief Operating Officer of Rawpool, a Bitcoin mining pool in China. Based in Beijing, Lise will implement a comprehensive strategy for growth of Bitcoin Satoshi Vision (BSV) throughout China – a key market for the Bitcoin industry. This includes work to highlight the unique capabilities of the Bitcoin SV blockchain to developers, enterprises, miners, venture investors, and Bitcoin users.

Bitcoin Association is the global industry organization for the business of Bitcoin. It supports BSV as the only coin with a blockchain that significantly scales (now), has robust utility (now), and is committed to a set-in-stone protocol for developers to build on. BSV is also the only project that adheres to the original design of Bitcoin creator Satoshi Nakamoto. In short, BSV is Bitcoin.

Lise Li brings valuable China market experience and relationships to Bitcoin Association and BSV’s growth. At Rawpool, Lise’s responsibilities included a digital mining project, management of the mining pool operation, expanding customer accounts, and technical research and cryptocurrency industry analysis. Lise also worked for 8 years in the e-commerce industry. She holds a Bachelor’s Degree in Finance from the University of International Business and Economics in Beijing.

Reacting to her new role, Lise said: “I believe in Bitcoin SV because its scaling ability puts the BSV blockchain technologically far ahead of any other and enables more real use cases. That’s why I see more development teams and businesses across the world are building projects on BSV. I am tremendously honoured for the opportunity to join Bitcoin Association, and will contribute my experience with crypto mining and blockchain technology to help grow BSV’s ecosystem.”

Jimmy Nguyen, Founding President of Bitcoin Association, remarked: “It’s time for Bitcoin Association to expand globally, and Lise is a terrific choice to lead our China program. Lise is an enthusiastic supporter of BSV, has excellent technical knowledge of cryptocurrency mining, and brings wonderful connections throughout China’s Bitcoin and technology sectors. We are thrilled to welcome Lise to the Bitcoin Association family.”

UPCOMING: COINGEEK SEOUL CONFERENCE – October 1-2

Come to Seoul, South Korea to learn about “The Power of BSV Scaling” and Bitcoin SV’s massively-scaled blockchain enables businesses to build more powerful applications. Join the top names in Bitcoin at the CoinGeek Seoul conference October 1-2.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

Related Posts:

  • No Related Posts

Some of the most popular Cryptocurrencies around the world

Bitcoin. Bitcoin is the first cryptocurrency to be launched, it was launched in 2009 by Satoshi Nakamoto. It is the most popular virtual currency in the …

Bitcoin

Bitcoin is the first cryptocurrency to be launched, it waslaunched in 2009 by Satoshi Nakamoto. It is the most popular virtual currencyin the world because it has the highest market capitalization value, thehighest number of users across the globe and the highest amount of tradingvolume. Bitcoin price rose to an all-time high of $20,000 in December 2017.today’s price is over$10,000. Even though the price is not stable, the coin isstill remains the best performing cryptocurrency.

Advertisement – Continue reading below

Ethereum

Ethereum is just as popular as Bitcoin. It was created in2015 by Vitalik Buterin. Ethereum has a market capitalization of $25.13 billionand its current price is $236. Ethereum has atransaction speed of a few seconds against the 10 minutes or more of Bitcoin.

Bitcoin Cash

In 2016, the developer community of Bitcoin couldn’t come toan agreement regarding the changes required in Bitcoin’s code, so Bitcoin cashwas forked from Bitcoin and it currently ranks amongst the bestcryptocurrencies. Bitcoin Cash transactions are muchfaster than Bitcoin transactions because its block size was increased to 8MB ascompared to the 1MB of Bitcoin. Bitcoin cash price grew from about $500 in July2017 to about $4,000 in December 2017. This gave it a return of around 10,000%in less than 6 months.

Litecoin

Similar to Bitcoin, and launched in 2011, Litecoin is apeer-to-peer digital currency which has a large network across the world. it offers instant transactions,security, and its widespread adoption around the globe. Litecoin has a market cap of $4.9 billion, and itscurrent price is $99.38.

Ripple token

Ripple token was lunched by the co-founder of opencoin CEOChris Larsen and CTO Jed McCaleb. The cryptocurrency is becoming increasinglypopular because it offers a quick, seamless and borderless platform for fundtransfer. It was designed as a centralized transaction network to be used bybanks for money transfers.

Related

Related Posts:

  • No Related Posts