ISO #LatinX #Bitcoiners

join us for delicious Spanish #Tapas with a #BTC twist.

#BitcoinerEvents
#W7th #FortWorth
#Texas

👇RSVP:
https://meetu.ps/e/NhR0Z/TS8gK/i

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34th #FortBitcoin #MeetUp

Get #Bullish on #Bitcoin in #Cowtown

join us for delicious Spanish #Tapas with a #BTC twist.

#BitcoinerEvents
#W7th #FortWorth
#Texas

👇RSVP:
https://meetu.ps/e/NhR0Z/TS8gK/i

https://m.primal.net/JGDL.jpg


Join us for our 34th #FortBitcoin #MeetUp
Dile Si a #Bitcoin  con Sitapas.com
Get #Bullish in #Cowtown
Si Tapas restaurant and bar aims to deliver delicious traditional Spanish #Tapas with a modern twist.
#BitcoinerEvents
#FortWorth #Texas
https://meetu.ps/e/NhR0Z/TS8gK/i


Ready to saddle up with some #Bitcoin plebs?
Check out our 33rd Meetup:
 https://meetu.ps/e/NdN7T/TS8gK/i
#bitcoinerevents
#FortWorth
#Texas


Join us on the 4th quarterly Bitcoin & Energy Lunch:

Powering Conservation with Bitcoin

at the Fort Worth Petroleum Club! Discover the transformative impact of Bitcoin adoption in the Oil and Gas industry and network with fellow professionals.

#PetroleumClub #LunchSeries #OilAndGasIndustry

Hosted by Fort Bitcoin and sponsored by BitPetro.

Hosted by @Fort_Bitcoin
Sponsored by @BitPetro

Keynote by: TBD

Moderated by
Jake Corley @JacobCorley
Panelists:
St. Claire Newbern III @LiveEnergyInc
Chris Alfano @360MiningInc
Dan Morrison @SludgeLLC
Jonathan Kohn @BitPetro
Dan Morrison @SludgeLLC
Happening at the @PetroleumClubFW in the @CityofFortWorth

Gain insight on Bitcoin and Lightning Network developments, and get a sneak peek into the future of Bitcoin in the Oil Patch and the path to adoption through innovation.

Agenda:
11:45 am Networking
12:00 pm Lunch
12:15 pm Panel Begins
1:30 pm Event Concludes

Panel Topics:
Powering Conservation with Bitcoin

Moderated by Jake Corley from Digital Wildcatters. The Panel will include current operators, bitcoin miners, and energy experts.

Want to pay for your registration using the Lightning Network? We've got you covered! Click the Link to Register and Pay with the Bitcoin Lightning Network: coming soon.

RSVP: https://www.meetup.com/fortbitcoin/events/300736319/

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Simply #Bitcoin May 15th - LIVE 12:15pm ET

BREAKING: Record Bitcoin ETF Inflows $133 million | EP 991

-Guest:
@BitPetro

📺👇 https://youtube.com/live/5CifZ_SXouw


Last month with the help of Brandon Chicotsky and the hospitality of the Texas Christian University - M.J. Neeley School of Business

We presented 3 panel discussions on the integration challenges and market dynamics of combining carbon credits with technologies like Bitcoin mining for methane emission reduction. The video of those 3 lecture is linked below.

#FortBitcoin and BitPetro and I would like to give a huge thank you to the speakers:
John Leitel, KONICA MINOLTA, INC.
Ondrej Sestak , ZeroSix
James C. Row, Capturiant
Dwayne Purvis, P.E.

#LeadOn #TCU
#carbonmarkets #Registries #OGI
#quantification #regulation #greenwashing
#bitcoinmining #carboncapitalism

https://youtu.be/23Zyi0mIoOs


Amen. See #FortBitcoin


Have to tease you for not coming then.
https://meetu.ps/e/N1ZX8/TS8gK/i


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Hashing or Plugging | Options for Orphanshttps://m.primal.net/HzJd.png This is a presentation I recently gave at an @AAPG Orphan, Abandoned, Idle, and Marginal Wells Conference.
I will be presenting these ideas along with other experts at Fort Bitcoin #32 New Energy Markets at TCU's Neeley School of Business.

The presentation is a vision where the remnants of our industry's past—the orphan and marginal wells—become the bedrock of its future.
This vision unites the fields of geology, environmental science, and the Bitcoin network, advocating for the repurposing of these wells for Bitcoin mining, a process increasingly recognized as a controllable load resource.
Across our landscapes, the orphan and marginal wells stand as silent witnesses to the boom-and-bust cycles of our industry. Abandoned and overlooked, these wells are not simply remnants of a bygone era but represent urgent environmental and economic challenges. Traditionally, the response has been to plug these wells—a necessary action that nonetheless incurs substantial financial, environmental, and societal costs.

Yet, within adversity lies profound opportunity. The Bitcoin network, with its finite supply of 21 million coins, emerges not only as a significant consumer of energy but as a beacon of revolutionary potential. This hard cap is a fundamental feature that offers an alternative model of money, starkly different from fiat currencies subject to inflation and state control.
We are faced with a compelling proposition: Can the untapped gas from these orphan and marginal wells fuel the future of finance, transforming a liability into a strategic asset of unparalleled value?

From Methane to Hashrate: A Oil field Perspective:
Methane, a byproduct of the ancient biomass now at the center of climate concerns, presents a unique opportunity. As geologists and engineers, your expertise positions you perfectly to capture and repurpose this potent greenhouse gas, thereby preventing its release into the atmosphere. Envision using this gas to power the computational demands of Bitcoin mining. This not only proposes a viable solution to mitigate a significant environmental hazard but also unlocks new economic avenues from wells once considered beyond salvage.
Our journey starts in the field, where your skills in assessing well integrity, gas composition, and potential volume become invaluable. These feasibility studies mark the point where tradition intersects with innovation—where the Industry's geological expertise meets cutting-edge technology to rejuvenate wells that were forgotten.

Shifting Narratives:
The discourse surrounding orphan and marginal wells has largely been dominated by their associated costs—monitoring, plugging, and their environmental footprint. The Bitcoin network introduces a paradigm shift: a narrative of revenue generation and economic rejuvenation. By converting wellhead gas into a power source for mining, we address the costs and emissions of these wells while introducing a scalable, flexible economic model. This adaptability is reminiscent of the cyclical investment dynamics characteristic of oil and gas operations.
However, the inherent volatility of the Bitcoin market cannot be overlooked. Our approach is underpinned by comprehensive economic analysis and risk management strategies, designed to navigate the unpredictable terrains of both energy and Bitcoin markets. This presentation aims to demystify the economic opportunity, presenting a clear vision of potential revenue in harmony with environmental stewardship.

Navigating Challenges:
The transition from theory to practice is lined with hurdles—technical, regulatory, and environmental. As energy experts and problem-solvers, we guide Bitcoin miners and energy companies through these challenges. We focus on establishing mining operations that not only serve as controllable load resources but also comply with environmental regulations, making positive contributions to our communities.
The regulatory environment demands our keen attention. Organizations like the @TexasBlockchainCouncil and the @OhioBlockchainCouncil, under the leadership of @LeeBratcher and @AndrewBurchwell champion policies that acknowledge Bitcoin mining as a sustainable solution for orphan and marginal wells. Legislation such as Texas House Bill 591 emerges as a beacon of hope, facilitating a compromise between industrial advancement and environmental responsibility by incentivizing responsible gas consumption through a Tax incentive in the form of a 7.5% Severance Tax exemption.

Incorporating Real-World Insights:
The journey of off-grid Bitcoin mining, leveraging stranded and flared gas, underscores the innovation at our fingertips. Pioneers like @UpstreamData, @GigaEnergy, and notable industry giants have demonstrated the viability of converting environmental liabilities into profitable ventures. These case studies exemplify the potential for a symbiotic relationship between the quickly evolving #Bitcoin industry and the Legacy Energy Industry.
Utilizing stranded and flared gas not only addresses environmental concerns but also unveils new economic opportunities. By converting this gas into electricity on-site for field operations, companies can mine Bitcoin, creating a revenue stream while simultaneously reducing greenhouse gas emissions. This innovative approach underscores the potential of Bitcoin mining as a controllable load resource, offering a sustainable solution to the challenges posed by orphan and marginal wells.

The Economics of Stranded Gas:
The economic implications of harnessing end-of-life well gas for Bitcoin mining are significant. With a substantial portion of natural gas reserves considered stranded, the potential for revenue generation is immense. In regions like the Bakken Shale formation, where high flaring rates prevail, Bitcoin mining has proven to be a viable alternative to wasting this precious resource. This initiative not only enhances economic returns but also contributes to global emissions reduction, fostering proactive energy production and consumption patterns.
Despite debates over energy consumption, Bitcoin's proof-of-work mechanism is evolving towards greater efficiency. While miners continue to seek out the lowest cost of power. Driving the industry to become the largest consumer of often stranded and intermittent renewable power. This shift towards prioritizing operational expenses signals a new economic model for mining, affirming the network's potential as a controllable load resource.

By incentivizing the use of otherwise abandoned or stranded gas and responsibly leveraging it as an abundant energy resource, Bitcoin mining not only seeks to improve its economic returns but also contributes to global emissions reduction by promoting proactive energy production and consumption patterns.
I invite you to join this journey, exploring the potential of the Bitcoin network as part of a broader strategy for managing orphan and marginal wells, driving innovation, and fostering sustainable industry growth. Together, we can redefine our legacy, ensuring a future where environmental care and economic prosperity are intricately linked.


Fort Bitcoin #32 New Energy Markets @ #TCU Neeley School of Business

https://meetu.ps/e/N1ZX8/TS8gK/i


My husband recently observed to me how important conditioning is for people to accept things as normal.

He said that when he first began reading my articles, he was like “Okay but I mean, fiat currency censorship isn’t really *that bad* as you describe”. But then in the years that followed, he was like “oh shit, it actually is. The fact that we have to ask permission to access significant amounts of our own money at banks and say what we will do with it is fucking insane. Why is this normal now?”

In Europe especially but also elsewhere, it’s increasingly common to make cash transactions illegal above a certain threshold value. Above that value, you have to go through centralized, surveilled, corporate/government systems, or you’re doing an illegal transaction.

That seems absolutely insane if introduced out of nowhere, but instead it has been introduced gradually through conditioning and so people are like, “well I don’t use cash anyway so that’s okay I guess, in fact I don’t even know that’s a law now”.

The same is generally true for social media. Filtering communications through centralized pipes is actually a radical position but it’s increasingly the new normal. In fact, the centralization of banking and communications in the hands of the state were two of their ten steps proposed in the Communist Manifesto. https://image.nostr.build/50bd5a957af0e91062c8a68c0848242fdf10e0c7207215b37d5845ff67843152.jpg


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#Oil #NatGas #Bitcoin #Gold #SP500 1 Month Chart


Howdy, flockstr!

We're gearing up for the grand finale of 2023, and you're invited to the 27th Fort Bitcoin meetup on December 5th at 6 pm.

Join us at The Archibald, where we'll dive deep into the world of #Bitcoin. Whether you're a seasoned Bitcoin enthusiast or just getting started, there's something for everyone.

And let's talk about the venue – The Archibald is the place to be! Great drinks, fantastic pizza, and a staff that's as friendly as can be. Plus, you can valet at the hotel right next door for your convenience.

The entire bar has been designed with a rooftop view in mind, so you'll find it cool and classy, just like our #FortBitcoin community.

Mark your calendars, folks! December 5th is the date, and we can't wait to celebrate the year's end with you. See you there for an evening of Bitcoin knowledge, delicious food, and good company.

Y'all know where to find us – The Archibald, December 5th, 6 pm. Let's make this last meetup of 2023 one to remember!

#YearEndMeetup #BitcoinEducation #FortWorth
#BitcoinerEvents

RSVP:  https://www.meetup.com/fortbitcoin/events/297694026/

The Archibald, 902 Houston St, Fort Worth, TX 76102, USA


Howdy, nostr!

We're gearing up for the grand finale of 2023, and you're invited to the 27th Fort Bitcoin meetup on December 5th at 6 pm.

Join us at The Archibald, where we'll dive deep into the world of #Bitcoin. Whether you're a seasoned Bitcoin enthusiast or just getting started, there's something for everyone.

And let's talk about the venue – The Archibald is the place to be! Great drinks, fantastic pizza, and a staff that's as friendly as can be. Plus, you can valet at the hotel right next door for your convenience.

The entire bar has been designed with a rooftop view in mind, so you'll find it cool and classy, just like our #FortBitcoin community.

Mark your calendars, folks! December 5th is the date, and we can't wait to celebrate the year's end with you. See you there for an evening of Bitcoin knowledge, delicious food, and good company.

Y'all know where to find us – The Archibald, December 5th, 6 pm. Let's make this last meetup of 2023 one to remember!

#YearEndMeetup #BitcoinEducation #FortWorth
#BitcoinerEvents

RSVP: https://www.meetup.com/fortbitcoin/events/297694026/


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#Oil #NatGas #Bitcoin #Gold #SP500 3 Month Market View


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#Oil #NatGas #Bitcoin #Gold #SP500 1 Month Chart


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Two more days until our Fort Worth Petroleum Club | 2nd Bitcoin and Energy Lunch
RSVP: https://www.meetup.com/fortbitcoin/events/295760641/


What Happened to #Venezuela? The Descent into Monetary Abyss of Hyperinflation

In Venezuela's economic history, the ascent of Hugo #Chávez in 1998 marked the beginning of a radical departure from market principles, setting the stage for a harrowing journey into hyperinflation and economic disarray. Chávez's rise, buoyed by the promise of sweeping social reforms and a redistribution of wealth, initially resonated with a population eager for change.

The country's descent was not precipitated by a singular event but was the culmination of years of economic missteps. The seeds of decline were sown during Chávez's administration and germinated through Nicolás Maduro's tenure. The deterioration of Venezuela’s production, particularly within its oil sector, was a slow-motion unraveling that accelerated under Chávez's policies and continued to gain pace under Nicolás #Maduro.

The 2002-2003 strike at Petróleos de Venezuela (#PDVSA) was the first spark in what would be a blaze of economic devastation, a stark manifestation of the tensions between the state and the market. The strike's suppression and the subsequent purge of expertise from the oil industry were early signs of the systemic rot and cronyism that would come to characterize the nation's economic framework.

As the narrative of the last decade unfolded, the dramatic plunge in global oil prices in 2014 exposed the vulnerabilities of an economy hinged on a single commodity. Venezuela's overreliance on oil revenue, akin to a gambler's single-minded bet, proved catastrophic as the fiscal foundations crumbled under the weight of declining prices. The ensuing chaos was compounded by a chronic neglect of investment and a pervasive mismanagement endemic to the oil sector. The infrastructure, once the backbone of the economy, fell into disrepair and neglect, and U.S. sanctions further isolated the nation, tightening the economic stranglehold.

By 2020, Venezuela's oil production had dwindled to its lowest levels in decades, a mere shadow of its former glory. The stark contrast from the golden days of the late 1990s, when production exceeded 3 million barrels per day, to the grim reality of less than 400,000 barrels, painted a grim portrait of a nation in freefall. Today the world’s largest reserves appear to be stranded behind a wall of #collapse.

The Chávez era's grand #nationalization scheme, financed by the oil bounty, was a testament to the perils of state interventionism. When the oil price fortress fell, the economy was left defenseless, teetering on the brink of collapse. The government's response, a frenzied printing of money, was the quintessential fiat solution, leading inevitably to #hyperinflation.

The post-Chávez landscape, stewarded by Maduro, has been one of exacerbated turmoil. The hyperinflationary spiral has led to dire shortages, the collapse of public services, and a #humanitariancrisis that has propelled a mass #exodus of Venezuelans seeking refuge from the economic maelstrom. About 1/3 of the population fled, more than 7 million people in a country of 30 million, making it the largest humanitarian tragedy in the Western Hemisphere

Venezuela's descent from prosperity to destitution is a stark illustration of the inherent instability of a fiat-based economy. It stands as a testament to the destructive potential of unchecked monetary expansion and the tragic human cost of a nation's deviation from sound economic principles. The Venezuelan saga is a cautionary tale, echoing the warnings of "The Fiat Standard" by nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak about the perils of straying from the discipline of a commodity-backed monetary system.


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#Oil #NatGas #Bitcoin #Gold #SP500 6 Moth Chart


We are running a Friday #LN Flash Sale for our #Bitcoin and #Energy Lunch in two weeks:
https://9dde27ea76.d.voltageapp.io/events/fGRDZEd8goGNu4q5ndrV5v

Fort Worth Petroleum Club | 2nd Bitcoin and Energy Lunch

Join us on November 17 for the

2nd #FortWorth #Petroleum Club | #Bitcoin and #Energy Lunch!

Discover the transformative impact of Bitcoin adoption in the Oil and Gas industry and network with fellow professionals. Hosted by #FortBitcoin.

⚡First 50 tickets go for 21,000 #sats
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What is Credit?

#Credit is a broad term with a range of meanings, from the financial #trustworthiness of an individual or entity to the arrangement for deferred payment in transactions. It's a foundational concept in modern economies, influencing everything from individual purchasing decisions to the global flow of money.

The Basics of Credit

At its core, credit is about #trust in #deferred #payment. When lenders extend credit, they trust that borrowers will repay the money within the agreed timeframe, typically with interest. This system allows for the smooth flow of money and resources in an economy, facilitating purchases, investments, and financial stability.

Credit can take many forms, including loans, mortgages, credit cards, and lines of credit. These credit forms come with varying terms, interest rates, and borrowing limits, catering to a wide range of financial needs and situations.

Creditworthiness and Credit Scores

An essential aspect of credit is #creditworthiness, or how trustworthy someone is in repaying borrowed money. Lenders determine this using #creditscores, a numerical representation of a person's borrowing history. Factors influencing credit scores include repayment history, total debt, credit history length, and the types of credit used.

A high credit score indicates good financial habits and results in better loan terms, while a low score can make borrowing more expensive or even unattainable. Thus, maintaining a good credit score is crucial for #financialhealth.

The Role of Credit in Economies

Credit is a critical #driver of #economicactivity. By allowing consumers to make purchases they couldn't otherwise afford, credit stimulates demand, driving business growth. On a larger scale, credit fuels business investment, job creation, and economic expansion.

However, credit also has a darker side. Excessive borrowing can lead to "credit bubbles" that eventually burst, causing economic crises. The 2008 #financialcrisis, largely triggered by a collapse in overextended mortgage credit, is a stark example of such dangers.

Credit from an Austrian Economics Perspective

#Austrianeconomics, known for its skepticism of central banking and advocacy for sound money, has a nuanced view of credit. While recognizing credit's role in facilitating economic activity, Austrian economists warn against excessive credit expansion, often fueled by artificially low interest rates set by central banks.

They argue that such expansion leads to #unsustainable economic #booms, followed by devastating #busts. Instead, they advocate for credit based on real savings and investment, believing that this approach leads to more sustainable economic growth and stability.

Credit in the Context of #Bitcoin

The typical Maxi(Bitcoin Maximalist) positions Bitcoin as an alternative to traditional credit-based monetary systems. Unlike fiat currencies, which can be inflated by central banks, Bitcoin has a fixed supply, making it immune to such manipulation.
This feature makes Bitcoin more akin to a #commodity than a currency, according to the book. It argues that Bitcoin could serve as a basis for a new #creditsystem, where credit is based on a sound, #deflationary money supply, rather than the inflationary fiat system. Such a system could potentially offer greater economic stability and fairness, reducing the boom-and-bust cycles characteristic of modern economies.

Conclusion

Credit is a #doubleedged #sword, capable of both stimulating economic growth and causing financial crises. Its complexities and contradictions make it a vital topic of study for anyone interested in finance, economics, or the #futureofmoney. As new forms of money like Bitcoin emerge, understanding the nuances of credit becomes even more critical.


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#Oil #NatGas #Bitcoin #Gold #SP500 5 Day Chart
#SoundMoney trades 24/7


What is Debt?

#Debt is a #concept as old as human civilization, deeply ingrained in economic systems, societal structures, and even moral frameworks. At its core, debt involves #borrowing, typically #money, from one #party to another, under the agreement that the borrowed amount will be repaid, usually with interest, at a #futuredate.

#History’s Perspectives on Debt

Debt has played various roles throughout history. In ancient times, debt often arose out of necessity, such as the need to secure food or resources during times of scarcity. It was also used in trade and commerce, facilitating transactions in the absence of money or complex financial systems.

However, debt wasn't purely an economic instrument. It had social and moral implications. In many cultures, being unable to repay debt could lead to severe consequences, including enslavement or imprisonment. This intertwining of debt with moral obligation has influenced societal attitudes towards debt, wealth, and poverty.

#ModernDebt: Instruments and Purposes

Today, debt comes in many forms, including mortgages, student loans, credit cards, bonds, and national debts. These instruments have specific purposes and structures, catering to various needs in modern economies:

1. #Personal Debt: Individuals take on debt for various reasons, such as buying a home, obtaining an education, or financing daily purchases. This debt is often necessary for individuals to advance in life, but if mismanaged, it can lead to financial strain or bankruptcy.

2. #Corporate Debt: Businesses use debt as a tool for growth. By borrowing money, companies can invest in new projects, expand operations, or navigate financial difficulties. Corporate debt is typically categorized into bonds, loans, and credit lines, each with its own risk and cost profile.

3. #Government Debt: Governments borrow to fund public projects, social programs, or military expenditures, and to manage economic cycles. Government debt is issued in the form of bonds. While such debt can stimulate economic growth, excessive government borrowing and spending can lead to inflation and economic instability.

The #DoubleEdged #DebtSword

Debt is a double-edged sword. It can be a powerful economic tool, driving growth, facilitating trade, and smoothing out economic inequalities. However, excessive debt can lead to financial crises, as seen in the 2008 global financial crisis when high levels of mortgage debt led to widespread defaults, bank failures, and economic recession. Likewise, many young people endure unnecessary hardships due to poor management of their own det in the form of credit cards. From macro to micro debt can do a lot of harm if not well understood.

Debt from the #AustrianEconomics Perspective

Austrian economics is critical of excessive debt and the role of central banking in facilitating debt growth. This school of thought argues that artificially low interest rates set by central banks encourage excessive borrowing and risk-taking, leading to economic bubbles. When these bubbles burst, the result is economic crises and recessions.

Austrians advocate for a more conservative approach to debt, emphasizing savings and investment funded by real economic production, rather than credit expansion. They also support sound money, like the gold standard or Bitcoin, as a foundation for a stable economic system.

Debt in the #Context of #Bitcoin

Bitcoin advocates view it as an alternative to the debt-laden fiat monetary system. Bitcoin's capped supply based on open source code contrasts with fiat currencies, which can be printed in unlimited quantities to fund government spending and debt. By providing a currency that doesn't rely on debt for its creation and value, Bitcoin offers a counter-model to the current global financial system, one more aligned with being a money by and for the internet, that is without borders and free from censorship.

Conclusion

Understanding debt is crucial for navigating the modern world. Today’s economic landscape is one where  debt can be a valuable tool for individuals, businesses, and nations, it also carries risks and consequences, especially when used irresponsibly. The discussions around debt, money, and alternative financial systems like Bitcoin are central to understanding the broader economic, social, and moral implications of debt in society.


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#Oil #NatGas #Bitcoin #Gold #SP500 3 Month Chart


How Money is Created
#Money creation is a complex process that involves several entities, including central banks, commercial banks, and the public. The modern banking system operates on the principle of fractional-reserve banking, where banks are required to keep only a fraction of their deposits on hand, lending out the remainder. This system is instrumental in money creation, influencing economies worldwide.

The Role of Central Banks
#Centralbanks, like the Federal Reserve in the U.S., play a crucial role in money creation. They control monetary policy and can influence the amount of money in circulation. One method they use is open market operations, where they buy or sell government securities. For example, when a central bank buys securities, it pays with bank reserves, effectively creating money that the sellers deposit in their bank accounts, increasing the overall money supply.

Central banks also set reserve requirements, dictating the proportion of deposits that commercial banks must hold in reserve, either in their vaults or with the central bank. Lower reserve requirements allow banks to loan out more money, increasing the money supply, and vice versa.

Another tool is the interest rate at which banks borrow money from the central bank. Lower interest rates encourage banks to borrow and lend more, which increases the money supply. Conversely, higher rates slow down borrowing and reduce the money supply.

Fractional-Reserve Banking
Commercial banks also contribute to money creation through fractional-reserve banking. When a bank receives a deposit, it's required to keep a fraction of it on hand, lending out the rest. The lent money eventually gets deposited back into the banking system, and a portion is lent out again, creating a multiplier effect.

For example, if the reserve requirement is 10%, a $100 deposit can theoretically create up to $1,000 in new money ($100 initial deposit + $90 new loan + $81 second-generation loan, and so on). This process is inherently inflationary, as it increases the money supply.

However, this system also poses risks, as banks may not have enough reserves to cover unexpected large withdrawals, potentially leading to bank runs.

#DigitalMoney and Credit Creation
In today's digital economy, most money exists not as cash, but as digital entries in bank accounts. When banks issue loans, they create money by adding the loan amount to the borrower's account. This money, created out of thin air, is backed not by physical reserves, but by the bank's belief in the borrower's ability to repay the loan with interest.

This system means that most of the money in circulation today was created through debt. This relationship between money and debt is fundamental to understanding modern banking and its implications on global economies and individual lives.

Austrian Economics View on Money Creation
#AustrianEconomics criticizes fractional-reserve banking and the central banking system, arguing that they lead to artificial #credit expansion, #unsustainable economic booms, and devastating busts. This school of thought advocates for a return to #soundmoney, like the gold standard, and banking practices that restrict credit creation to actual savings, thereby preventing the boom-bust cycle.

Bitcoin's Proposition
The Bitcoin Maxi's argue that Bitcoin, like gold, can act as sound money. Its supply isn't controlled by any central authority, and its issuance is predetermined and transparent, mimicking gold's natural mining constraints. Bitcoin, therefore, offers an alternative to the current credit-based system, potentially mitigating the economic cycles that characterize modern economies.

Conclusion
Understanding money creation is crucial in grasping the web that is the global economies, the nature of booms and busts, and the value proposition of alternatives like Bitcoin. The process is not just a financial mechanism but a societal tool with direct implications on wealth distribution, societal structure, and individual life.


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#Oil #NatGas #Bitcoin #Gold #SP500 1 Month Chart


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#CL #NatGas #Bitcoin #Gold #SP500 12Mo Chart


What is the Gold Standard?

The #goldstandard is a #monetarysystem where a country's currency or paper money has a value directly linked to gold. With the gold standard, individuals could exchange their paper money for a specified amount of gold. Countries that use the gold standard set a fixed price for gold, allowing for the free exchange of gold for money.

Historical Context

The #gold standard has deep historical roots. For centuries, gold's intrinsic qualities—such as its durability, rarity, and universal appeal—made it a reliable #mediumofexchange and a #storeofvalue. As early as the Byzantine Empire, gold was a standard for international transactions, with the solidus coin dominating trade.

In the 19th century, the gold standard became more formalized. The United Kingdom, one of the world's major economic powers, adopted the gold standard in 1821, with the United States following suit in 1873. This period, known as the classical gold standard, lasted until World War I and was marked by global economic stability, albeit punctuated by regular financial panics and crises.

How the Gold Standard Worked

Under the gold standard, countries agreed to convert paper money into a fixed amount of gold. A government had to hold significant gold reserves to meet conversion demands. This system aimed to stabilize currency values and international exchange rates, facilitate trade, and prevent governments from printing excessive money.

However, the gold standard had its limitations. It could create deflationary pressures: as economies grew, the money supply could not always grow correspondingly because of the finite amount of gold. This limitation often led to deflation, where prices dropped as money became more valuable.

The Gold Standard's Demise

The gold standard began to unravel during World War I, as countries printed more money to fund their war efforts, leading to inflation. Post-war, countries attempted to return to the gold standard, but the economic toll of the war and the Great Depression complicated these efforts.

The final vestiges of the gold standard system were abandoned in 1971 when President Nixon ended the U.S. dollar's convertibility into gold, marking the transition to fiat monetary systems.

The Gold Standard and Austrian #Economics

#Austrianeconomics, a school of economic thought that emphasizes the spontaneous organizing power of the price mechanism, is generally supportive of the gold standard. This perspective argues that the gold standard limits the government's ability to inflate the money supply, thereby preventing the distortionary effects of inflation on the price system.

Friedrich Hayek, a prominent Austrian economist, criticized central banking's discretionary policies and advocated for competition in currencies. He believed that such competition could potentially reintroduce a form of the gold standard, as markets might favor currencies backed by gold or other valuable assets.

The Gold Standard and Bitcoin

#TheBitcoinStandard posits Bitcoin as a digital counterpart to the gold standard. Like gold, Bitcoin has a finite supply, with only 21 million Bitcoins to ever be mined. This characteristic aims to make Bitcoin immune to the inflationary pressures that fiat currencies are subject to.

The book argues that just as the gold standard provided an economic basis for prosperity and stability before the world wars, Bitcoin could be the basis for a new era of economic stability and fairness in the digital age. It highlights how Bitcoin shares key characteristics with gold that make it suitable as a monetary standard—scarcity, divisibility, portability, verifiability, and recognizability.

Conclusion

The gold standard has had a profound impact on economic policies, theories, and the global financial system. Its principles continue to influence contemporary economic thought, particularly in discussions around #Bitcoin and stable coins. Understanding the gold standard is crucial for anyone delving into the complexities of monetary policy, the history of international finance, and the emerging digital economy.


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#CL #NatGas #Bitcoin #Gold #SP500 6Mo Chart


What happened in 1971?

In 1971, the world witnessed a seismic shift in global economic policy: U.S. President Richard Nixon announced the unilateral suspension of the dollar's convertibility into gold, effectively ending the Bretton Woods system. This event is commonly referred to as the "Nixon Shock."

The Bretton Woods System: A Prelude to 1971

To understand the significance of 1971, we must first explore the Bretton Woods system's genesis. In July 1944, as World War II neared its end, delegates from 44 countries convened in Bretton Woods, New Hampshire, to architect a new international monetary framework. The world sought stability after the economic chaos that contributed to the Great Depression and the war.

The Bretton Woods agreement established the U.S. dollar as the world's primary reserve currency, linked to gold at a fixed rate of $35 per ounce. Other currencies were pegged to the dollar at fixed rates, creating a stable environment for international trade and economic recovery. The system also birthed the International Monetary Fund (IMF) and the World Bank to support countries in maintaining their pegs and financing post-war reconstruction.

Cracks in the System

However, the system wasn't without flaws. As the U.S. printed more dollars to fund domestic and international endeavors, including the Vietnam War and the Great Society programs, the gold reserves backing these dollars dwindled. Countries like France, sensing the dollar's overvaluation, began demanding gold for their dollars. The system strained under these "gold runs."

The Nixon Shock: Unshackling the Dollar from Gold

Facing dwindling gold reserves, inflationary pressures, and a negative balance of payments, President Nixon took a drastic step on August 15, 1971: he severed the link between the U.S. dollar and gold. This decision had several immediate effects:

1. Floating Exchange Rates: With the dollar's convertibility into gold suspended, currencies transitioned from fixed exchange rates to a system of floating rates. The values of currencies began to fluctuate according to market demand and supply.

2. Inflation and its Discontents: Freed from the gold standard's constraints, governments now had greater leeway to print money, leading to periods of high inflation and the phenomenon known as "stagflation" in the 1970s, characterized by stagnant economic growth coupled with high inflation.

3. The Rise of Forex Markets: The floating exchange rate system gave birth to the modern foreign exchange market (Forex), where currencies are traded 24/7. This market's dynamics can affect everythingrom multinational corporations' earnings to the prices of goods in your local store.

4. Changes in Global Economic Power**: The shift altered global economic power structures. With the U.S. dollar no longer pegged to gold, the U.S. could run persistent trade deficits by exporting dollars, leading to the phenomenon of "petrodollars" and cementing the U.S. dollar's status as the world's reserve currency.

The Enduring Impact of 1971

The decision in 1971 redefined the landscape of global finance and trade. Governments now had more tools (and temptations) to manage economic cycles, often leading to policies that contributed to economic bubbles and subsequent recessions. The era of fiat money had begun in earnest, leading to debates about the virtues and dangers of money untethered from any physical constraint.

The 1971 Nixon Shock also set the stage for discussions about alternative monetary systems, including cryptocurrencies like Bitcoin. Critics of fiat money argue that it gives governments too much control over the economy, leading to cycles of boom and bust, wealth inequality, and decreased purchasing power due to inflation.

Reflections on the Gold Standard

The gold standard, for all its limitations, provided a check on governmental power to inflate the money supply. With money tied to a finite commodity, the scope for expansionary monetary policy was limited. The post-1971 era showcased an economic world where money supply management became a central tool (and dilemma) for governments worldwide.

The debates surrounding these events are central to Austrian economics, which emphasizes the role of government-induced distortion in the money supply in creating economic imbalances. This school of thought recommends a return to a more constrained monetary system, akin to the gold standard, to prevent the perceived ills of fiat money and inflation.

Conclusion

Understanding what happened in 1971 is crucial for grasping today's economic structures. It was a year that forever changed how money works, introducing complexities and debates that continue to shape the global economic discourse. The rise of Bitcoin signals a desire for a return to a system where the supply of money is predictable and immune to the whims of governments. Whether such a system can sustain the diverse needs of the modern world is a question that remains unanswered.


The Prequel to Why Bitcoin?

Prologue

In the dynamic confluence of technology, finance, and energy, understanding the nuances of money—its history, mechanisms, and potential for future transformation—is not just a scholarly pursuit but a strategic imperative. As we stand at an inflection point, with digital currencies like Bitcoin poised to disrupt our traditional financial paradigms, delving into the historical milestones, such as the pivotal year of 1971, the principles behind the gold standard, and the intricate mechanisms of money creation, debt, and credit, is critical. This exploration is not just about understanding these concepts in isolation but about envisioning how they could intersect with cutting-edge technology to redefine our world. This guide is an expedition into these complex territories, drawing insights from the past and present to navigate the uncharted future.

Summary

Our expedition into the financial realms underscores the intricate dance of economic forces and human ambition. The year 1971 was more than a historical marker; it was the genesis of a new monetary era that set the stage for today's economic theatrics. The gold standard, now a relic of the past, continues to hold lessons for the future, especially in discussions around financial stability and autonomy.

Money creation, a privilege of the banking elite, is a process shrouded in complexity and controversy, a magic trick with profound implications. Meanwhile, debt and credit are the lifeblood of our economy, sustaining growth yet also planting seeds for potential turmoil. These forces, seemingly mundane, hold the power to ignite economic booms or trigger devastating busts.

From the lens of Austrian economics, our current financial architecture is a precarious one, teetering on the brink, sustained by policies that inflate bubbles destined to burst. Herein lies the argument for a return to sound money principles, a sentiment echoing through the chambers of gold standard advocates and cryptocurrency enthusiasts alike.

Bitcoin emerges as a beacon in this discourse, a digital defiance against traditional monetary systems. Its immutable supply and decentralized nature present a stark contrast to fiat currencies, offering a glimpse into a future where money is not just a tool for transaction but an instrument of true economic empowerment.

As we venture further into this digital era, the lessons from our monetary past are not mere echoes but guiding voices as we forge our path. Whether we're transitioning into a world where cryptocurrencies reign supreme or one where they exist alongside fiat currencies in a complex financial tapestry, our understanding of these historical and economic nuances will be the compass that guides our journey.

 1. What happened in 1971?

In 1971, a critical event known as the "Nixon Shock" occurred. U.S. President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, effectively ending the Bretton Woods system. This system was a global agreement where most countries pegged their currencies to the U.S. dollar, which was convertible to gold.

Why did this happen? The U.S. was facing high inflation and economic challenges, partly due to the costs of the Vietnam War. By ending the gold standard, the government hoped to stabilize the economy. However, this decision had global repercussions. It led to the modern system of floating exchange rates, where the value of a currency is determined by the forex market.

The end of the gold standard meant that governments could print more money without needing a gold reserve to back it. While this increased financial flexibility, it also introduced risks like higher inflation and economic instability. This event is a pivotal point in understanding Bitcoin, which seeks to offer an alternative to traditional fiat currencies by limiting its supply, akin to gold.

2. What is the gold standard?

The gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold. With the gold standard, individuals could exchange their paper money for a specified amount of gold. Countries that use the gold standard set a fixed price for gold, allowing for the free exchange of gold for money.

The gold standard is significant because it provides a fixed asset to back a currency, ensuring governments don't print excessive amounts of money. However, it can also lead to economic problems. If a country doesn't have enough gold, it might not have enough money to support its economic needs. The gold standard can also tie the hands of policymakers, limiting their ability to respond to economic crises.

3. How is money created?

In modern economies, money is created through a process called fractional-reserve banking. Here's how it works: you deposit your money in a bank. The bank then loans out most of this money to others. When those loans are deposited into other banks, a portion is loaned out again. Through this process, the banking system creates more money than the original amount deposited.

Central banks also create money by buying assets like government bonds. This process is called quantitative easing (QE). They do this to influence economic activity, like encouraging spending and investment when the economy is slow.

4. What is debt?

Debt is money borrowed by one party from another. Many entities use debt as a method of making large purchases they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.

Debt can be used effectively to improve one's financial position or business operations. However, if not managed carefully, debt can lead to financial ruin and severe economic consequences on a larger scale.

5. What is credit?

Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest. Credit also refers to the creditworthiness or credit history of an individual or company..

For individuals and companies, credit is vital for significant purchases and investments. It's a fundamental component of a modern economy, allowing for transactions, investments, and risk-taking that drive economic growth.

6. What happened in Venezuela?

The story of the wealthiest country in a continent, destroyed by Fiat gone to the extreme end of a socio economic system.

This series will explore the topics above like a study guide accessible to those with a curious mind.


Been a while how are you #Nostr


Welcome to Nostriches: Quick Start Guide

Setup your profile: Add your username, display name, and bio information. (Duh!)

Images: You'll need your profile picture and banner. Some clients allow you to upload these directly in the client. Others require you to upload elsewhere and copy the link. You can upload images to https://void.cat, https://nostr.build, and other locations.

NIP-05: This is an identifier, like an email address, that gives you a human readable format for your public key. It also makes you to to be easily searchable and found across Nostr. You can register an ID at https://nostrplebs.com but many other providers do exist. You can also set one up yourself with your own domain.

Lightning: Enter your LNURL reusable invoice address or LN Address here. This also looks like an email address. i.e. devouthaircut88@walletofsatoshi.com You can also get one from https://stacker.news, https://strike.army, and many other providers. This allows you to send and receive Lightning tips or Zaps.

Relays: You should have a combination of paid and free relays to be able to interact with the most amount of people. Here are a few.
Paid: wss://eden.nostr.land, wss://relay.orangepill.dev
Free: wss://nos.lol, wss://relay.snort.social
Many other relays exist, you can discover more later.

Find people to follow:
https://snort.social/new - This Nostr client comes with a list of Nostr power users to keep your feed always busy and allows you to search for and easily follow all of your Twitter friends.
https://bitcoinnostr.com - This website consists of Nostr Users that are Bitcoiners. You’ll recognize them from Bitcoin Twitter.
https://nostr.directory - This website contains a vast directory of Twitter, Mastodon, and Telegram users that have connected their Nostr public keys.
https://nostrplebs.com/directory - On this website directory you’ll find familiar faces from Bitcoin Twitter and plenty new faces from Nostr.