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| January 22, 2019

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IMF and CEOs say the global economy is slowing faster than expected

January 21, 2019 |

The International Monetary Fund and corporate executives warned Monday that the global economy was slowing faster than expected, establishing a downbeat tone for this week’s annual meeting of the World Economic Forum.

Hours after the IMF cut its forecasts for the world economy this year and next,…


L.A. Times – Business

His Insulin Cost More Than $1K Per Month. Is That What Killed Him?

January 19, 2019 |

Alec Raeshawn Smith was shocked to be diagnosed with type 1 diabetes at age 23. The incurable autoimmune disease, which often strikes in childhood, is far less common than type 2 diabetes, which does not always require patients to take insulin. Type 1 diabetics must take it; before the hormone…
Newser

Winter storm sweeping across US, with more than 100M Americans in its path

January 19, 2019 |

A massive winter storm swept across the Midwest on Friday, bound for New England, where it was projected to dump as much as 2 feet of snow over the weekend. The National Weather Service said more than 116 million people live within its path.
FOX News

David’s Bridal emerges from bankruptcy after less than two months

January 19, 2019 |

David’s Bridal Inc., America’s largest wedding gown retailer, emerged from bankruptcy on Friday, just weeks after it first sought protection from creditors.

David’s Bridal shrank its debt load by about $ 450 million and is now owned by lenders including Oaktree Capital Group. The company, which…


L.A. Times – Business

Snap loses its chief financial officer for second time in less than a year

January 15, 2019 |

Snap Inc. Chief Financial Officer Tim Stone is resigning eight months after joining the social media company, sending shares tumbling in extended trading.

Stone’s departure isn’t related to any disagreement on the company’s accounting, strategy, financial or other practices, said the company —…


L.A. Times – Business

Nazis Stole More Than Art. Now, Try Returning It

January 15, 2019 |

“People have looked away for so long, but I don’t think they can anymore.” So says a Nazi-looting expert about millions of works stolen during World War II—not paintings by master artists, but books once owned by Jewish families and institutions. Researchers in Europe and America are finding ways…
Newser

CNN

Zimbabwe fuel protests turn violent after prices more than double

January 14, 2019 |

Protests have broken out in Zimbabwe’s two main cities over a sharp hike in the price of fuel announced by the government.
CNN.com – RSS Channel – World

Government shutdown: FDA does less for food safety than you probably think

January 13, 2019 |

Three weeks into the federal government shutdown, a new worry has emerged: the U.S. Food and Drug Administration’s food-safety inspections.

On Wednesday, FDA Commissioner Scott Gottlieb tweeted that his agency would work to continue inspections, but subject to limitations. Shortly afterward, he…


L.A. Times – Business

Bitcoin History Part 8: When 1,500 BTC Cost Less Than $1

January 12, 2019 |

Bitcoin History Part 8: When 1,500 BTC Cost Less Than $  1

How much is one bitcoin worth? In fiat currency terms, that’s a constantly shifting answer, but ever since the beginning, the following has held true: one bitcoin is worth as much as the buyer is willing to pay. Today, that’s likely to be a few thousand dollars, but back in the day, the reverse was more likely to be true: for one dollar, you could buy several thousand bitcoins.

Also read: Bitcoin History Part 7: The First Major Hack

Calculating Bitcoin’s Exchange Rate

Bitcoin History Part 8: When 1,500 BTC Cost Less Than $  1Once an asset has a universally agreed exchange rate, tracking its rising and falling price thereafter is a simple matter. But when no one’s really sure what the market is willing to pay for an emerging asset, it can be hard to reach consensus on valuation – especially when there are no exchanges to facilitate price discovery. This was the dilemma that early Bitcoin adopters faced in early 2010.

‘We are in a sort of “chicken and egg” situation at the moment,” noted Bitcointalk forum member The Madhatter. “In order for an exchanger to sell bitcoins … to someone, they need customers who have dollars and want coins … I mean, why would an exchanger sit around and accept bitcoins that are generated on your computers? They are going to just blow out their float of dollars and fold.” A couple of months prior, the first rudimentary exchange rate for BTC had been calculated by influential forum user “NewLibertyStandard” (aka NLS). Their pricing system was based on the amount of energy required to mine BTC – or “BC” as it was still often referred to at the time.

A Simple Model to Get the Ball Rolling

“New Liberty Standard is doing fantastic and logical work to help ‘set the ball rolling’,” praised forum user “BitcoinFX” on Feb. 5, 2010, adding: “I’m currently compiling a Neural Network model that takes into account other factors such as the finite number of Bitcoins, daily Gold and Silver fixings, other currency pairs and daily exchange rates and the average number of Bitcoin users etc. I’m of course factoring in the New Liberty Standard. This will be a very adaptable model to help calculate and predict future exchange rates and I will share it with our growing community.”

Today, the pricing models used to predict future bitcoin prices have become infinitely more sophisticated, but even in 2010, it’s evident that some adopters were thinking beyond mere extraction costs, and trying to envisage a world in which Bitcoin broke away from its power pegged price and attained a value determined by an array of external forces.

Bitcoin History Part 8: When 1,500 BTC Cost Less Than $  1
Bitcoin prices, as quoted on the New Liberty Standard website in 2009

While NLS’s methodology has long since been retired, an archived web page reveals the BTC prices their system set back in 2009, explaining:

Our exchange rate is calculated by dividing $ 1.00 by the average amount of electricity required to run a computer with high CPU for a year, 1331.5 kWh, multiplied by the the average residential cost of electricity in the United States for the previous year, $ 0.1136, divided by 12 months divided by the number of bitcoins generated by my computer over the past 30 days.

In Dec. 28, 2009, according to NLS, $ 1 would have gotten you 1,578.77 BTC. Not bad.

Bitcoin History is a multipart series from news.Bitcoin.com charting pivotal moments in the evolution of the world’s first and finest cryptocurrency. Read part seven here.


Images courtesy of Shutterstock.


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The post Bitcoin History Part 8: When 1,500 BTC Cost Less Than $ 1 appeared first on Bitcoin News.

Bitcoin News

Tucker Carlson: Democrats feel illegal immigrants who ignore our laws are more American than you are

January 10, 2019 |

You could call Democrats’ response to President Trump’s border cris speech ‘manufactured.’
FOX News