Codezeros

What does it mean to “ own a Bitcoin? ” It means there is a recorded transaction on the Bitcoin blockchain where someone sent one Bitcoin to your public key address and that you (and you alone) know the address’s private key. Even if that terse description explains things, it does not help with the logistic details of how you go about doing this. It is complicated. But it is also complicated to physically buy and hold a bar of gold or a barrel of oil. You could make it happen, but it is work. Bitcoin, like many commodities, has been “Financialzed.” There are now financial contracts you can buy and trade that might be just as good as (or better than) having an entry on the Bitcoin blockchain. What do financialization and the growing role played by centralized cryptocurrency exchanges mean for everyday investors? Investing in Bitcoin by directly owning a Bitcoin on the blockchain creates a long position that appreciates as the value of Bitcoin (in US dollars, say) increases. If you ...

The start of 2020 has been one for the history books. COVID-19, or the novel Coronavirus Disease, has rapidly infiltrated almost every country. In response, the global economy has seemingly come to a halt as many countries have shut down non-essential business operations to prevent the spread of the disease. The effects of COVID-19 expand far beyond health issues. While COVID’s impact on our immune system is no doubt frightening, the economic implications of the necessary shutdowns will likely continue long after the disease is under control. Governments are launching unprecedented levels of stimulus. To counteract the economic blow of business shutdowns, governments are providing previously unseen amounts of stimulus to both citizens and businesses alike. Trillions of dollars in the form of grants, loans, tax deferrals, and other types of relief are entering the worldwide economy to keep it afloat. Unfortunately, unemployment rates are skyrocketing, as well. While the tri...