Success Warrior: The Blog That Embraces ADHD

A *Little* BitCoin Info

 
So,

I did a little bit of research on bitcoin this morning before diving into homework.  I'm going to attempt to give a brief description here because I have much more homework to do tonight.  It's probably going to be difficult to keep it short so we'll see how it goes.

Chili described it as "dorky gamer currency" and there is a bit of truth to that but I'll need to backtrack a bit before getting to that.

Bitcoin is a cryptocurrency, a computer generated bit of bits that people have voluntarily decided to give value.  They have no intrinsic value to them like the US Dollar.  Except that in this case, the people using them have decided they have value and this sets them apart from the dollar, which has value because if you don't use it, the IRS or Secret Service will take all your positions, tase you, and throw your ass in jail.

There are other differences as well that are incredibly important.

There is no central bank for bitcoin.  Bernanke and Obama can't decide to put out $7 trillion to bail out their buddies at everyone else's expense.  In fact, there won't ever be more that 21 million BTC.  It's in the open source code.

The lack of a central bank plays another huge role in the grand scheme of things.  Somewhere around 2005 or so, e-gold was gaining in popularity.  For those that don't follow these things, e-gold allowed people to purchase shares of gold and then use gold-backed, digital money to buy things around the world with other e-gold users.  The US government was able to shut e-gold down in 2007 by indicting 3 e-gold execs and ordering them to knock it off.  The biggest threat to the US government is not terrorism, it's the creation of an alternate economy, what they lovingly call the "Black Market".  The black market is a loss of control by the government, something that cannot be tolerated in the least and must be squashed with a vengeance. 

Those of you that have been reading this blog for some time will remember what happened to a place called Liberty Dollar.  They made collector's coins out of silver and gold and people started using them as a barter system.  The government shut Liberty Dollar down and took all their gold and silver.  Again, everything was in a central location run by a few people.  An easy target for the power-hungry sociopaths scared someone might take their boot off the people's throat.

Bitcoin doesn't exist physically and doesn't have a central location.  It's software, downloaded on countless computers around the world.  It can't be raided.  It can't be shut down.  Napster is to e-gold what BitTorrent is to BitCoin.  You can take someone's computer away from them in attempt to stop them but they can just pull another computer out of the closet, download the software, and be off and running again. 

Supposedly, there are a couple of US Senators looking at existing laws to see if BitCoin is illegal.  Good luck with that.  Even if they find a law that makes it illegal for someone to give another person what is essentially gaming scores in exchange for a sandwich, it will be impossible for them to enforce it.  If the US government was to be as stupid as Mubarak and shut down the Internet, all that would happen would be instant rioting.  Not to mention that their corporate puppet masters depend on the Internet as much as anyone else.  Remember when Goldman Sachs was caught doing their massive insider trading deal that makes Martha Stewart look like a petty pick pocket in comparison.  They would get the morning's numbers a couple of seconds before the rest of the world and have their supercomputer make a gazillion trades before the market opened.  And, obviously, if you found a way to shut down the Internets for everyone but the people paying you millions in bribes, riots again.

That doesn't mean they aren't going to try and I'm going to be watching with interest.

There's much more but I'm going to lightly (very lightly) touch on the "dorky gamer currency" and then get back to my homework, which I was hoping to complete tonight but it's looking unlikely.  New bitcoins are created about every ten minutes (out of thin air just like the US dollar with one incredibly massive difference - later).  The software creates a puzzle, a proof of work, that must be solved before the bitcoins are created.  The person that owns the computer that solves the puzzle gets the new bitcoins (currently set at 50 BTC and after 210,000 BTC are created, the reward will be halved slowing the introduction of new BTC - again, the opposite of the US Dollar).  The processing power for solving this puzzle comes from your computer's video card.  This is referred to as "mining".  It's like panning for gold but it's based on the power of your video card and your ability to keep the video card from overheating and your willingness to pay the electric bill for running 3 ATI 6990's ($740.00 each just to purchase) and to run these bad boys overclocked with fans running on turbo 24/7 (and replace them every year or so when they burn out).  Guess who already already had max-GPU sitting in their towers when bitcoin started up?

It has expanded beyond gamers though into a global cryptocurrency that is accepted at brick and mortar retailers and restaurants. 

Well, there's more but I'll just finish with the last difference that I mentioned (promise) and do what I'm supposed to be doing.  The Fed has deliberately inflated the money (just like bitcoin but with a massive difference - I think I mentioned that) and the effect has been a steady decrease in the value of the dollar, which is seen as increased prices at the grocery store.  The US Dollar is worth 4% of its initial value in 1913.  The bitcoin, on the other hand, is being inflated and is increasing in value, which means that prices are going down if you buy stuff in BTC.  How much?  Well, if things keep going like they have been since last July, the bitcoin will have increased in value by about 600,000% by this July.

Okay, I suppose I have to mention one other thing because of that.  Bitcoins are virtual and currently can be broken down 8 decimal places.  A dollar can be broken down to a penny, a bitcoin can be broken down to a millionth of a BTC, with people already looking ahead to breaking it down further (you have to when prices are going to decrease by a half million percent a year).  This means that if you own Grandma's Scrumptious Pie Shop, you can sell memberships to your pie of the month club for 3.14195265 BTC (at least until the deflationary pricing forces you to change it).

So, there you go.  Probably much more information than you really wanted to know about the bitcoin but I was (and still am) intrigued and had to check it out.

Working Legs and the Plan For This Month

 
So,

I made it to my training room (aka my garage that never has cars in it) this morning for the first time in about 10 days.  It felt good in a way that,uh, most people wouldn't consider good.  And I know that I'm going to be feeling it in the next couple of days but that's alright with me.

I need repost a couple of thank you's right here for a couple of people that made the morning that much better.

As stated, my training room is my garage.  I have lined the walls and ceiling with cloth to help reduce the echos and the floor is covered with karate mats and a wrestling mat.  I have all my dumbbells out there and the room has worked very nicely.  There is one drawback to it though that made it's yearly appearance this weekend. 

It gets cold.  I open the door from the house to the garage for a while before I go out there to try to get the temperature above freezing.  This morning, it was probably in the 50's when I was out there.  That's perfectly fine considering that I'm out there working up a sweat.  What doesn't warm up, even a smidge of a smackerel, are my dumbbells.  It's like grabbing a couple of very heavy ice cubes that have the power to resist allow my body heat to affect them at all.

What has two thumbs and hates the cold? 

This guy.

This morning, however, I was wearing a pair of Bionic Full Finger Fitness Gloves that Lynette sent for my birthday and they were an absolute life safer for someone as phobic about having cold hands and feet as I am.  These are my new best friends for the winter workouts.

Speaking of feet, I wore my VFF Flows this morning and they worked very nicely at keeping my feet warm.

The other thank you goes to Rick who sent me a docking station for my iPod.  I had a loaner but it just wasn't cutting it.  It was made for listening to elevator music in a cubicle at a volume that won't be heard by the other prairie dogs.  Played at a volume that could be heard (just "heard" mind you - not blasted in any way), the sound was so distorted that it hurt my ears. 

Since it was six in the morning, I wasn't able to turn the volumn up much but I did play it loud enough to hear over the panting and it sounded great.  Tonight is martial arts training so I'll be turning it up more and we'll see how it sounds when played at a level that can be heard over the yelling.

Both of these are going to make the winter more do-able for me.  Thanks again.

My plan for this month and I only have time to touch on it briefly today.  I was going to go into more detail but time has flown and it's already time to start gearing up for martial arts.

ADHD Moment: My stock in gold has increased by 40% since I bought it.  Too bad, I didn't buy enough to make that super cool but still . . .

My plan for the next four weeks is to do three Tabata workouts (Mon, Wed, Fri) that hit the muscles of my entire body.  On Tue and Thu, I will do punching and kicking in a very cardio fashion.  My goal is to lean up a little bit.  I know that's vague and can't really be called a goal.  My other goal is to stay healthy all winter.  It seems like I get sick in Nov and Dec of every year (except, knock on wood, I haven't been sick yet this year). 

My food intake has an equally vague plan to it.  I'll be drinking my Shakeology shake everyday, of course, but beyond that, my only goal is to cut back on portions a bit.  Last Nov and Dec, I gained about 8 pounds (but I was sick and my diet went completely to hell).  I'm not going to allow that to happen this year and it would be nice to take another inch off my waist.

Maybe that's how I'll make the goal more goal-like.  I'll measure my waist and make it a goal to lose one inch.

The Tabata workouts are cardio in themselves while dealing a brutal attack on the muscles to force them to adapt and get stronger but not necessarily bigger. 

So, there you go.  That's my vague plan that is starting to sound more like a solid plan with a real goal.

I always think better when I write out my thoughts.

And since I didn't get around to saying it last Thursday, I want to thank all my readers for being here and being a sounding board.  I always hope that something I say might be helpful to others but there is no denying the benefit that I receive from this blog.

Many thanks to all of you.

***

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Success Warrior is an Independent BeachBody Coach for BeachBody.com, a company that offers fitness programs, supplements, and equipment that have absolutely changed my life. 

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More proof that I don't understand the stock market

I check the headlines just about every day and I really should be recording my thoughts each day about what I see.  Things seem busy for me now so I'm lucky when I can a blog post done.

I couldn't let this one pass though.

Stocks are up because people are spending more money.

Why are they spending more money?  Everything costs more.  Inflation is forcing people to pay more for things they have to buy.  Trivial things like food.

I read an article quite a while back that stated that the Fed is always trying to create *some* inflation.  They always want costs going up so that businesses think they are making more money.  Seems stupid to me but there it is.

Anyway, that theory has kicked into overdrive with the current inflation rates.  Companies are bound to see record sales in dollar amounts because the dollar is worth less.  The whole thing seems like a game to me and the people being hurt by it are the ones that can't afford to play.

Speaking of which, I was just paid 68 cents in dividends on my stocks.  Watch out Buffet, I'm on my way.

Stocks are on their way up. Woo hoo!

Sam Stovall, chief investment strategist and chairman of the investment policy committee at Standard & Poor's, has declared that the worst is over for stocks for the year.  It's upward and onward from here.

The Federal Reserve's rate cuts and King George's generous tax rebates have saved the day.

If you pulled your money out trying to play it safe, now is the time to throw it all back in so that you can come out a winner at the end of the year. 

Whadya wanna bet that another investment firm goes under in May when no one believes the crap that Sam is shoveling?

Yay! The Stock Market Rebounded

How high and how long can we prop up the illusionary system before the whole thing collapses in on itself?

The Shape of the Stock Market

I've mentioned this before but PTE Rick sent me this great cartoon so it's worth mentioning again because it's so true and so odd (at least to me).

I glance over the stock headlines just about every day.  I don't read too many of the articles because these people seem like they are crazy and I don't want to catch what they have by reading about it every day. 

The stock market goes up and down and the news says it's based off of what authorities say.  Not what they do, mind you, but what they say.  It's like everyone is trying to time the stock market.  You know, buy low, sell high and all that.  Can it really work from day to day?  I have no idea.  I bought some stocks in January last year and haven't sold them and don't even ever look to see how well they are doing.  Set it and forget it was my attitude.  I know, I'm not market savvy.

Well, I was savvy enough to invest in the Asian market instead of the US market.  Once the illusions propping up our stock market fade leaving the reality of huge debt and impending bankruptcy in the open for all to see, the game of the stock market will be over for a while.

Back to that game though.  Someone spreads a rumor that Bernanke will announce that the Federal Reserve is going to drop interest rates.  Stocks go up.  OPEC says they *might* lower output.  Stocks go down.  King George puts together a lame-ass stimulus package.  Stocks go up.  The bill gets stalled in the Senate.  Stocks go down.  The Senate approves the bill.  Stocks go up.  Someone important points out that the checks won't be in consumers hands until June.  Stocks go down. 

Day after day, you can watch this yo-yo action and what the media attributes the action to.  I read the headlines just to be amused.  A butterfly could flap it's wings in India and it would affect our stock market if Paulson mentioned it in a press conference.  Crazy stuff.

***

5 Sword Points for Ricky T for sending the cartoon.

Interesting Side Effect of the Plunge Protection Team

You can't fool Mother Nature and you can't fool Market Forces.  When the Plunge Protection Team tricks people into buying stocks, the investors are paying far more than market value for those shares.

As we have seen with every artificially created financial bubble, market forces will eventually prevail.  The bubble must burst and the true value must be revealed.  The deception can't be maintained indefinitely.

Please Don't Let Me Be This Crazy

I scan articles on what the stock market is doing and just end up shaking my head.  I don't get it.  The market changes just on rumors and hopes.

Retail is up, trading is up.

Employment goes down, trading is down.

The fed might drop the interest rate, trading is up.

Do these people know what they're doing?

My thinking is that if they keep touching their stocks, they're going to go blind.  My stock goes up and down, up and down, and that works nicely for me.  I don't feel the need to pull it out and then put it back in, pull it out and put it back in.  Up and down is perfectly fine with me. 

I don't keep touching my stock.  Sure, I watch my stock.  How can you not?  It's fun to watch your stock go up.  Exciting even.  Not so fun to watch it go down but you always know that your stock is going to go back up again.  Sometimes it may take a while to get your stock back up.  It might take some outside stimulation but if your stock is healthy, it'll get back up again.  I'm sure there is some old stocks that never come back up.  It's always sad when a stock dies.

Each time you trade, you have to pay a fee and that can be a real stock sucker.  Each time, you have less and less stock.  Quite frankly, you don't want to reduce the size of your stock.  Size matters.  There are plenty of people out there who will promise to make your stock bigger but most of them are scams.  The best way to get a bigger stock is to let it grow naturally over time.

Don't keep playing with your stock.  Let it be and it will get bigger.

Trying To Join The Exclusive Club

I think that interest is one of the main reasons that the rich get richer and the rest get poorer.  People who get paid interest have their money making money.  People who pay interest are wasting money and paying more for everyting.  There are other reasons but interest is an important factor.

At the start of the year, I started looking into stocks and mutual funds.  I want to get on the side where my money is making money for me.  I did buy a few stocks but have put any further investing on hold as we really concentrate on paying off our next two debts.  Not paying that interest and freeing up the money from those payments is a higher priority right now.

While I was looking around at different things that I could invest my money in, I came across something interesting.  I found a couple of things that sounded like they would be good investments so I looked into buying some shares.  I wasn't able to because I didn't have enough money.

Both of them required an initial purchase of at least $10,000. 

That's a good plan for keeping the riff-raff out?

I could have borrowed the money of course and hoped that I made more money than I spent in interest as I paid it off but I just refuse to go that route right now.  With only 3 debts left, I just couldn't see getting a new debt even if the potential payoff was going to be good.  I guess I'm not much of a gambler.

A couple more thoughts on emergency funds

I suppose that the 3 to 6 months of savings in case you lose your job is a good idea but here are a couple of things to consider. 

The reason you need 3 to 6 months of savings is not because you won't be able to find another job before then.  It's because it might take you that long to find one that pays the same amount as you were making before so you can afford to pay your bills again.

If you had fewer bills, you would have more options in the interim.  I'm not proposing that you downgrade your job on purpose.  I did that last time and I don't ever want to do that again.  I'm just saying that it becomes an option.

The original point that I wanted to make on emergency funds was for less drastic emergencies than job loss.  I still think the best way to prepare for having no pay is having no bills but let's talk about the "surprise" expenses.

Let me start off by saying there aren't too many surprise bills.  The timing might come as a bit of a surprise but it shouldn't be shocking.  Let me explain.

If you are alive, have a house, and have a car, you are going to get sick, the house is going to need to be repaired, and the car is going to have mechanical problems.  None of this is surprising.  Not in the least.  Everyone should agree that this is normal.  Normal is the opposite of surprise.

We just don't always know when there is going to be a problem and that's where an emergency fund comes into play.

I'm going to cover this more tomorrow but I just want to leave you today with this thought and let it sink in.  I see people get absolutely flustered when the car breaks down because they can't afford this "right now".  It reminds me of the old TV shows where a kid saves up *just* enough money to buy a car but then is caught off guard because you have to buy gas and insurance too.  That's part of car ownership.  So too is regular lube service, tires, and minor repairs.  In adultland, that's all part of car ownership.  And houses.  And human bodies.

To pretend that none of these will need maintenance is either delusional or naive.