Tag: Cryptocurrency

Econ Saturday: Buy Stuff Now

Unemployment and Crytpo

I’m disgusted that the federal government refuses to acknowledge that its federal unemployment benefit program is killing employers. It’s simply disingenuous to claim that people would rather work for $10 an hour when they can get $7.50 an hour for doing nothing.

In my corner of the world, COVID has been virtually non-existent for the past six months. It hit us pretty hard in the second half of 2020, and I knew a lot of people hospitalized with it (and had five clients die of it . . . or something like it), but since last December or so? It has been a non-factor, but fast food restaurants can’t keep regular hours because they can’t find staff.

How bad is it? My law firm can’t find a receptionist and the workload is humongous. We have been forced to adopt summer hours. Instead of being open to the public for 45 hours a week, we are now open only 31 hours a week.


Dogecoin mania continues. I bought a small chunk at less than 4/10ths of a penny. I cashed in this week and am spending the profits as fast I can: a nice dinner, donated money to restore our local auditorium, bought Marie a very nice bike, invested in agricultural stocks, bought a leaf mulcher, bought more Bitcoin and Ethereum, gave each child some extra spending money.

As millions of Americans have experienced, Dogecoin has been great fun.

But what does it say about our economy when billions of dollars are flowing into a joke cryptocurrency (“They’re all jokes, Scheske!”)?

It tells you that there’s so much money sloshing around the system, people don’t know what to do with it. That’s why I spent my Dogecoin earnings right away. I wanted to get tangible stuff in my … Read the rest

Cryptocurrency isn’t in a Bubble

It might be terribly overvalued, but it’s not in a bubble

The cryptocurrency market was a lot of fun this week. The Coinbase IPO drove interest and prices to all-time highs. The leader: Dogecoin, which went from six cents to 50 cents in a wild frenzy (it has since settled in the upper 20s).

Dogecoin isn’t sustainable. Its creators have minted over 100 billion coins, they mint millions more every year, and they aren’t committed to capping it. It’s like the Federal Reserve.

Bitcoin, however, is different. It’s capped. Supply will run out. Other than land, it’s the only asset that can claim such a thing.


I hear two vigorous objections to Bitcoin:

1. “Each coin is worth $60,000. How are you supposed to buy a pack of gum with a $60,000 coin?”
2. “Bitcoin is in a bubble.”

Both of these objections, I believe, are bunk. I think there are other valid objections, and I wouldn’t be surprised if Bitcoin is extraordinarily overvalued, but those two objections don’t cut it.

1. Look at the edge of your coins. You notice the serrated edges? That’s a holdover from the days when the king had the right to take chunks off coins (or “criminals” did it), in order to create sub-specie that could be used to buy small items (or melted down with others “bits” and recoined). I don’t know of any reason Bitcoin couldn’t be used like that. In fact, right now, I own Bitcoin: about 5% of one Bitcoin. My account breaks it down to the seventh decimal. Call me crazy, but I suspect these newfangled computers could break it down to the 100th decimal, then reconvert the whole thing into a new sub-species currency (“Sub BTC”), like our dollars are broken down into quarters, dimes, nickels, and … Read the rest