Recently Bitcoin has been receiving more and more media attention as of late. I am thrilled that people have been learning about this amazing tool for the achievement of economic freedom. Bitcoin is beautiful in that it is a voluntary medium of exchange not enforced by laws and government officials with guns. It is not a part of the fiat fractional reserve banking system and gives people control over their own money in a way that a bank never could. 

Bitcoin makes government theft through taxation difficult and makes capitol controls virtually impossible. It allows people to send their assets anywhere in the world within an hour without expensive fees and taxes. Cyprus is the prime example of why people might want to move their money out of a country and out of a banking system. 

Bitcoin is showing people that they don’t have to be controlled through money and taxes. It  shows people that there are much better and voluntary alternatives for at least some of the current functions that government attempts to provide in this day and age. Bitcoin is opening eyes and that makes me optimistic for the future as well as the price of my Bitcoin.


I believe that each Bitcoin could someday be worth about 440,000 dollars. This may seem like an outlandish claim, but it is very possible. Imagine that tomorrow the whole world adopted Bitcoin as the currency used for pretty much every transaction.

Here is the reasoning. The world’s GDP is about $55,000,000,000,000, 55 trillion for those of you whose eyes can’t handle that many zeros. In 2012 the annual velocity of the average dollar was about 6. The average dollar changed hands about six times. I will admit that for the sake of ease of my calculation I have assumed the same velocity for all other nation’s currencies as well as the whole world using dollars (the values of the other currencies are taken into account). I take the 55 trillion number and divide it by six to get the number of dollars in the world economy. I get 9.61 trillion. Divide that by 21,000,000 (the final number of Bitcoins) and you get $436,500 per Bitcoin.

Admittedly a lot of things have to go right for Bitcoin and wrong for other currencies before this price is realized, but  the potential is there. Even if you believe the chances of Bitcoin become a universal currency are low I would still contend that the potential for return way out ways the potential for loss. Besides as you buy Bitcoins now the price goes up and entrepreneurs look for ways to earn and exchange Bitcoin more readily. Feel free to suggest improvements for my reasoning in the comments section below.

Hey “……..” I like your “blank product” but I don”t like giving out my credit card info online. You might try want to try Bitcoin as an additional method of payment. The moment you start accepting it the Bitcoin community will give you a respectable amount of free publicity. Also no charge backs. Just check it out and let me know if you have questions.

Feel free to modify the message and please personalize it so its not spam.

Recently the paleolithic diet has become a popular option to minimize disease and maximize health. I personally believe that eating the foods, that our ancestors ate for millions of years, makes a lot of sense. The Paleolithic lifestyle doesn’t just include food it also includes getting much more sleep than the typical modern human, and doing a lot of low intensity exercise throughout the day.

I believe that paleolithic societal structure could provide another example of healthier living for modern humans. There have been multiple studies that indicate that the human brain is developed for a social structure containing from 150 to 300 people. The most widely cited number is 150. It came from the work of British anthropologist Robin Dunbar. Other anthropologists have done research indicating “that numbers larger than this generally require more restrictive rules, laws, and enforced norms to maintain a stable, cohesive group.”(’s_number).

Precedent for a lifestyle based on being part of a small societal grouping is way more recent and long lived than the other parts of living Paleolithic. The size of societal groupings has only started to be so large in the last century. Before the 1900s most people lived away from cities in small agricultural communities. It is interesting that the large role of government in our lives might be caused by urbanization of pretty much everyone. Localization might be a much better way for people to organize themselves and allow them to enjoy many fewer rules laws and much more accountable leaders.

Margit von Mises typed Human action on this typewriter.

Margit von Mises typed Human action on this typewriter.

If you enjoy the ideas of Austrian economics and are ever in the vicinity of Auburn Alabama then I would strongly recommend that you make a little time to go visit the physical location of the Ludwig Von Mises Institute. The receptionist was happy to give me a quick free tour. To say that “A tour at the Institute is really cool.” is a huge understatement.

I have watched a few economics lectures, from the Institute, on YouTube. On the tour I was shown the two conference rooms where many of those lectures were recorded. Elsewhere on the tour was the room where the Institute records podcasts and audiobooks. I would compare what I felt to the experience of an avid film fan who gets to see the production set for a highly regarded film series. At one memorable point in the tour we passed Lew Rockwell and I shook his hand and introduced myself. I  will admit that I was a bit starstruck. There were a few other cool things on the tour like the typewriter and the medals that if I remember correctly were awarded to Ludwig von Mises for his service in the first world war.

The Institute has two libraries that are stocked with about 35,000 economic, political, and other books. Many of those books were left to the Von Mises Institute by important Austrian economists. One of the books that I looked through was from the personal library of Friedrich Hayek. In the margins were notes I could read and know what his thoughts on the text were. You can’t check out the books; however you can read them at the Institute. They allow students to go and study in the quite of the libraries. I have only studied two times at the main library. When I was there I saw Mark Thornton and again Lew Rockwell. Both gave me a small greeting.

The Ludwig von Mises institute is a great place to visit and I am thankful that I get visit the organization that educates millions for free over the internet.

Until next time


goldbitSaving Bitcoins and just sitting on them is actually taking part in the Bitcoin economy; but there are definitely ways to be more active.  In my last post I talked about how I would either sell half of my Bitcoin or loan it out. Considering the recent upswing in price I decided not to cash out the dollar value of my Bitcoin and see if I could invest or loan my Bitcoin and end up with more.

While searching among the interwebs for ways to invest Bitcoin I found a couple of sites where one can buy stock in companies that are involved in the Bitconomy. Most of the value of those stocks seems to come from the fact that they pay Bitcoin dividends. Those sites are ,, and . What really got me interested in Bitcoin investments was the Bitcoin lending website I lent out half of my Bitcoin out at 4.5% interest a month for 2      months. That is a phenomenal rate of return.

The lending terms are fairly straight forward and the potential returns are tantalizing. An average return is any where  from 2 percent to 8 percent a month; but the caveat is that there is a high chance of default. The last default rate on btcjam that I saw was about 30 percent of the loans made. The borrower’s credit history on the website can be viewed by potential lenders. I lent half of my Bitcoin out to BTC Quick a company that enables people to easily buy Bitcoins with a credit card. This borrower had their website up as well as a phone number. I contacted them and talked a bit with someone from the company. I also looked at their borrowing history and it is perfect.

I think that a lender on Btcjam who applies a little rigor and good judgement on Btcjam can make a very nice return with out too much worry.

Cha Ching and until next week (hopefully),