Most of us don't care what money is: medium of exchange, store of value over space and time?Good money is sound, recognisable, it's scarce. Why is scarcity important? How big si the problem with inflation? And at some point you realise you're not in charge of your life.You end up with: personal sovereignty is important, so I should have the freedom to make my own decisions. So what should I do?

Why is bitcoin better money?

Blockchain allows coordinating of human action without the use of force, which is remarkable. In history this has been done through the use of violence, rulers. Blockchain allows us to make thing together as a group, as a community, without being under the constant threat of violence.Systems where you have a central authority (politicians, lawyers, accountants) can be disrupted. But that is complicated first step.

Blockchain

People fo into crypto and then they improve their life visibly. A combination of making more money and being more happy, perhaps.Like someone buying bitcoin and two years later they have a six pack, they're eating healthier and fixed their relationships.

Bitcoin makes us freer, thus happier

Have you seen this social contract Rousseau postulated a few hundred years ago? Have you signed anything?Constitutions are a proxy to this contract.Most constitutions are shit, US' is better, closest to a social contract.

Is the social contract impacted by blockchain?

Puts personal freedom as the ultimate ideal. We have more freedom, civil liberties, religious freedom.We still have central authorities and this leads to monopoly on money, education and health care. They are linked.Technology lets us do things together, without one of us being in charge. It was difficult before crypto to see how to make the transition to an autonomous, violence free model society.

Libertarianism

The freedom maximalists miss out on this important aspect of freedom: property and responsibility are part of the same equation. If you have freedom, you own yourself and that is the most important property: your body, your mind and you should own yourself.You should take care of yourself and maximise your wellbeing.

Freedom comes with responsability

It's a technology that allows us to gain personal sovereignty. The best thing you can do for yourself is buy some crypto, but with convinction.The value is in the journey you make to get to this decision. Find what makes bitcoin interesting to you. That will open for you the bitcoin rabbit hole.

Why is blockchain so important?

With a computer, if you know how to code and you have an idea, nothing can stop you. Make amazing things happen!

It cannot fix everything. We have to lose some of the religious efervescence.It mustn't become a dogma.Just because we have the technology, it doesn't mean we can use it for good. We have to balance the use and transparency of blockchain from a technical and philosophical point of view.

Caveat for blockchain and crypto?

Change your mental framework. Be your own bank and store value, thinking of your life in longer time frames.It becomes philosophical. You have to create your own meaning of life. You have to start living now.If you become a zen student, you have to also become a zen master, take care of your life and spread happiness.

Crypto and bitcoin start that inner dialogue with yourself.

If you want a better society, it's better focus on personal growth, personal responsibility, live the best life, be a good example for your kids.

What is the best feature if decentralisation? Is there a longterm impact on society?

Vladimir Oane and Sebastian Cochinescu discuss #blockchain for a better society.  Feels like a good intro into this topic: ideas flow from basic usage of this technology to philosophical issues. 

We'll talk about #blockchain for a better society.

crypto

Cryptocurrency

moneyandinvestments

Money & Investments

Sebastian Cochinescu

Blockchain talks with Sebastian Cochinescu (TailPath) & Vladimir Oane (Deepstash)

Recessions are part of the fabric of a dynamic economy. The average investor fears recessions because they mean lower home prices, lower stock prices, and less or no work.
Several things can cause, or worsen, a recession — soaring interest rates, or ill-conceived legislation. If you understand recessions, you will have many opportunities to look forward to when the recession ends.

Understanding recessions are vital

Since 1857, a recession occurred about every three-and-a-quarter years. The government used to think recessions should work themselves out.
Since WWII, the average between recessions is nearly five years. The last economic expansion, starting at the end of the Great Recession, lasted 128 months, which means we were overdue for an economic retraction.

Recurrence of recessions

The recession of 1873 was known as the Great Depression until the 1929 recession started.
The recession of 1873 started with the failure of Jay Cooke & Company, a major bank. It caused knock-on effects of bank failures across the country and the collapse of a bubble in railroad stocks. The recession ended in 1877.

The harshest recession

A standard measurement for a recession is two-quarters of consecutive GDP contraction. But the official arbiter of recessions and recoveries, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), prefers domestic production and employment indicators instead. Other signs of the recession include:
<ul>
<li>Declines in real (inflation adjusted) manufacturing, wholesale-retail trade sales, and industrial production.</li>
<li>Extended declines in production, employment, real income, and other indicators.</li>
</ul>

An official recession

Historically, the best time to buy stocks is when the NBER announces the start of a recession.
The NBER takes at least six months to determine if a recession has started. The average post-WWII recession lasts 11.1 months. By the time the bureau announces a recession, it is nearly over. Often investors are quicker to spot the beginning of recovery long before the NBER does.

The best time to buy stocks

The best thing to do with your money during a recession is to pay off your credit card debt.Paying off a credit card that charges 18% interest is equivalent to getting an 18% return on investment. You may not get that from most other investments during a recession.

Spending your money

An inverted yield curve is a more solid predictor of economic downturns than the stock market, consumer confidence, or leading economic indicators index.
An inverted yield curve is when short-term government securities, such as the three-month Treasury bill, yield more than a 10-year Treasury bond. It shows that bond traders expect weaker growth in the future.

Early warning signs of a recession

The Federal Reserve does not want to start a recession because part of its dual mandate is to keep the economy healthy. But, the Fed's dual mandate also includes keeping inflation low. A cure for rising inflation is higher interest rates, which slows the economy.
For example, in 1981, the Fed raised interest rates so high that three-month T-bills yielded more than 15%. It did end inflation at the price of a short and sharp recession.

The Federal Reserve

Losing your primary source of income is the worst effect since jobs are increasingly hard to find in a recession.
That is why it's essential to have a few months' salary in cash as an emergency fund.

The worst effect of a recession

The average length of recessions is 17.5 months. The long-term average covers the 1873 recession that lasted 65 months. It also includes the Great Depression, which lasted 43 months.
Since WWII, recessions have become less harsh, lasting an average of 11.1 months. In part, it is because bank failures do not mean that you lose your life savings.

Time-frame of a typical recession

Recessions are really "depressions," but the term "depression" seems too terrifying. After the Great Depression, economists began to use the word "recession" instead.
The 2007-09 recession involved a financial crisis, high unemployment, and falling prices, and was named the Great Recession. Our current recession is still without a name.

Naming a recession

America officially fell into recession territory in February 2020. Here's everything you need to know when it comes to these economic downturns.

Discover the world of business and economics.

economics

Economics

artsandculture

Society, Arts & Culture

Recessions: 10 Facts You Must Know

"Do nothing" is almost always the right move.

In the beginning, focus the vast majority of your effort on boosting your income & savings rate

The P/E ratio is only useful when a company is fully optimized for profits (stage 4)It's most deceiving in stages 3 & 5

If you rarely sell, your portfolio will concentrate itself

It's a FAR bigger mistake to sell a mega-winner early than it is to hold a mega-loser too long.

Compounding pays off the most in the out-yearsOptimize for longevity first, everything else second

Invest with CEOs that under-promise and over-deliverAvoid CEOs that do the inverse

Stock prices & business profits are not at all linked in the short-term, but they are 100% linked in the long-termWatch the business, not the stock

Stop-loss orders should really be called Stop-Compounding Orders

Analysis paralysis is realOnce you know enough, decide.

I've been investing for 18+ years I've made TONS of mistakes along the way here are 10 critical investing lessons I wish I could teach my younger self:

personaldevelopment

Personal Development

10 critical investing lessons I wish I could teach my younger self

Is a myth you can only invest if you have lots of money. Investing is not a goal, activity, or task, it’s a habit. It’s something you do regularly, just like you work out, meditate, read or anything else that takes time to yield results.ex: If you invest $500/mo in the S&P500 (an index of the largest US companies) you will get to $1M in 35 years. The S&P500 grows 8% a year on average and it compounds over time.

Investing is habit

So you start out with $2000 bucks in the index fund. You add $500 every month from now. You will become a millionaire in 35 years.

habits

Habits

Become a Millionaire…With 500 Bucks a Month - Darius Foroux

<ul><li>Being rich is having the ability to spend lots of money now; </li><li>Being wealthy is accumulating assets that allow to you preserve your money for use in the future.</li></ul>

Rich Vs Wealthy

What's the difference between rich vs. wealthy? Understanding the distinction between the two is one of the most important perspective changes I've had when it comes to how I manage my money. Growing up, I wanted to be rich. I wanted to own a big home, drive a luxury car, and buy expensive clothes.

Rich vs. Wealthy: What's the Difference?

A brief collection of ideas discussing finance on personal and general level🤩.
 More about money🤑 and wealth creation☑️

Blockchain talks with Sebastian Cochinescu (TailPath) & Vladimir Oane (Deepstash)

Recessions: 10 Facts You Must Know

10 critical investing lessons I wish I could teach my younger self

It's time to
Read like a Pro.

Become a Millionaire…With 500 Bucks a Month - Darius Foroux

CURATED BY

Blockchain talks with Sebastian Cochinescu (TailPath) & Vladimir Oane (Deepstash)

Recessions: 10 Facts You Must Know

10 critical investing lessons I wish I could teach my younger self

It's time to Read like a Pro.

Become a Millionaire…With 500 Bucks a Month - Darius Foroux

CURATED BY

It's time to
Read like a Pro.