This is my impressionistic explanation of how the Bitcoin Wallet works and how it fits within the larger Bitcoin ecosystem. There are 3 components to the Bitcoin core. The Bitcoin core is the software or programmatic implementation of the Bitcoin software system. 1. Bitcoin Mining 2. Bitcoin Node 3. Bitcoin Wallet Bitcoin miners compete for […]
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Aging Past You
I’m sitting at a restaurant and notice a gentleman having lunch with his children. He’s disheveled, middle aged and the kids appear to be about 8yrs old. If we were introduced, I wouldn’t hesitate to address him as “sir”, and use honorifics. Then it dawns on me: I could actually be older than him. It’s […]
You observe an aquarium filled with an assortment of small trees. The trees on the right seem larger, healthier, and more robust compared to those on the left. In fact, the further you look to the left, the less healthy the vegetation appears. You notice a water spigot located in one corner of the aquarium […]
Question: When it comes to the U.S. Treasury selling bonds, whether short-term or long-term, such as bills, do they have to coordinate at all with the Federal Reserve or are they acting completely independently and selling bonds only when and if the federal government needs money for their fiscal spending? Answer: The U.S. Treasury and […]
Question: Excessive money printing and fiscal spending are often cited as causes of financial instability. However, if a government issues bonds and the central bank buys them (essentially monetizing the debt), wouldn’t this just lead to inflation without necessarily creating other problems? Answer: Excessive money printing and fiscal spending can indeed lead to financial instability, […]