Gresham's Law
"Bad money drives out good." Gresham's Law, named after Sir Thomas Gresham who lived from 1519 to 1579, observes that when two forms of money with the same face value but different intrinsic values circulate together, the money with higher intrinsic value, or good money, will disappear from circulation as people hoard it, while the money with lower intrinsic value, or bad money, remains in circulation. This principle explains why throughout history, debased currencies tend to dominate transactions while more valuable currencies are saved.
Fiat
What is Fiat Currency?
Fiat money is a government-issued currency that's not backed by a physical commodity such as gold or silver. It's backed by the government that issues it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government rather than the worth of a commodity backing it.
Why Track Fiat Metrics?
Tracking fiat metrics like Treasury bill rates and national debt provides important context for understanding the broader financial system. T-bill rates reflect the cost of short-term government borrowing and serve as a benchmark for "risk-free" returns. The national debt represents the accumulated borrowing of the government and can impact long-term economic stability and monetary policy.
Resources
- U.S. Treasury Fiscal Data - Official source for U.S. government financial data
- TreasuryDirect - Information on Treasury securities and auctions
- Federal Reserve - The U.S. central bank that manages monetary policy
Bitcoin
Current Price
Price History
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What is Bitcoin?
Bitcoin is the first decentralized cryptocurrency, created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network without the need for intermediaries, allowing for borderless transactions with minimal fees.
Why Track Bitcoin?
Bitcoin has become a significant asset class and is often referred to as "digital gold." Its price movements can reflect broader market sentiment, economic conditions, and technological adoption. Many investors track Bitcoin as part of a diversified portfolio strategy.
Resources
- Bitcoin Whitepaper - The original document by Satoshi Nakamoto
- Bitcoin.org - Educational resources about Bitcoin
- Mempool.space - Real-time Bitcoin transaction visualization