Tag Archives: currency

Long-term profitability of Bitcoin protocol

Assumptions

  1. The Bitcoin ecosystem must remain stable and profitable for all agents engaged in its day-to-day operations with no extra incentive except transaction (Tx) fees.
  2. Long term means after year 2040, when block reward will be 0 BTC (currently at 50 BTC).
  3. Maximum Bitcoin Tx fee should not exceed 1% of transaction volume. Otherwise it will not be competitive with current fiat-money transaction systems.
  4. Miners’ expect positive average operating profit margin, so let us assume a minimum of 1%. Currently at 29% +/- 30% [i]
  5. Current exchange rates: BTC/EUR 8.39 and BTC/USD 10.74

Let us evaluate current long-term Bitcoin profitability in light of  those assumptions and some statistics.

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Swiss Gold Franc – back to the gold standard?

From political fringes to mainstream economic debate

In his article (in German)  (English Google translated version) Von Thomas Jacob, of the Property and Freedom Society (run by Mises Institute people) proposed a gold backed Swiss Franc. You can also listen to Coben Centre Radio interview (direct link to mp3 in the article) on the subject or you can listen to Jim Rickards interview on Kingworld News.

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Filed under Analysis, Economy, English