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Disclaimer: The following review is for entertainment purposes only and should not be used as financial advice. Please consult a finance professional before engaging in any investments.
About the Book
Mastering Bitcoin: A Beginner’s Guide To Bitcoin, Cryptocurrencies and Investing, was written by Benjamin Huey and published independently on November 27, 2017. The book sports a span of 210 pages.
The book starts with a discussion of what is a bitcoin, block chain and various other aspects and components of a cryptocurrency. According to Benjamin the currency has many important features that make it different from government-backed moneys in that its decentralized, easy to set up, anonymous, fast, and requires little fees. The benefits he sees in bitcoin are that coin transfers are faster then bank transfers, governments can’t take it away, it isn’t inflationary, privacy, and you do not need trust for each transaction.
He then spend the rest of the book on different places to purchase and sell bitcoins, how to store bitcoins as well as how to mine them.
Key takeaways and commentary
My key takeaways from this are pretty similar with that from my previous post on cryptocurrency, please follow the link:
So I won’t repeat them.
I will however comment how the fact that Benjamin states that although there are great many benefits to bitcoins, it has many downfalls that prevent it from becoming a replacement to a national currency. I happen to agree with this however I would like to see someone elaborate more on the why. I have am understanding which I would love to elaborate on in either a later blog post or even a book but I’ll require a lot more research. Here’s my understanding so far:
Bitcoin acts like a commodity currency such as gold, however the reasons that the gold standard was dropped was due to the inflexibility it put on the US government in time periods such as the Great depression and Vietnam War.
The supply of money always has to match the GDP. As GDP goes up, more money must be printed or the currency will become deflationary which will lead to recession. As GDP goes down, money must be destroyed in order to prevent hyper inflation. I remember reading that monetary economists agree that an inflation between 0-2% where most optimal for all sovereign states.
A fiat currency can be created and destroyed – a commodity currency such as gold and Bitcoin cannot. Hence Bitcoin should be looked at more like a commodity then a possible future currency but that’s what I think.
What do you guys thing? do you want me to write more about this? Please let me know in the comments.
Feel free to leave your thoughts in the comments and if you found this post useful or enjoyable, please share and leave a like. Thank you! Stay tuned for tomorrows books: Blockchain: Ultimate guide to understanding blockchain, bitcoin, cryptocurrencies, smart contracts and the future of money.
For more information on the 2018 challenge, visit the following link: Business Trek 2018 reading challenge.
You can also get the book via the following link: Mastering Bitcoin: A Beginner’s Guide To Bitcoin, Cryptocurrencies and Investing
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