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Bitcoin’s Sustainability…Yes or No?

Bitcoin’s Sustainability…Yes or No? Is it possible? Does it make sense? Does it make sense to place so much time, capital, and resources into crypto currencies like Bitcoin (and others on Blockchain technology) that require extensive consumption of energy, that lack transactional performance and efficiency, are costly on both sides, and have security vulnerabilities? It appears to us, that these are some of the inherent risks with crypto currencies built with blockchain technology versus “hashgraph” technology. See these comparative charts of the top two blockchain crypto’s built on Blockchain technology versus Hedera’s Hashgraph technology and their crypto currency “HBAR” (CHART #1 and CHART #2).

Many proponents of Bitcoin and hundreds of other crypto currencies proclaim the benefits of these crypto’s, in that they provide a financial solution of decentralization and independence from the control of central banks and the current global financial system. Sounds like it would be a good thing, right? But is that even possible? Is it practical? And if it is, at what cost? Is it even possible to replace the current global financial system with hundreds of different crypto’s currently in the crypto world, each lacking the forementioned performance attributes and capacities (refer to the charts above) required to effectively and efficiently replace the global financial system?

Does it make sense to move from a centralized global financial system that is rapidly becoming evermore streamlined and centralized (as in the sanctions being used against Russia in the current Ukraine/Russia conflict), and move to a “decentralized” system built on what…a lagging technology such as blockchain that is slow, expensive, and incapable of handling hundreds of transactions let alone the billions of transactions on a daily basis? Perhaps we (GMS) are missing something??? How would this “new” system and all their connectivity systems be used on a practical daily basis…how would it be implemented, regulated, monitored, managed and secured? And by who? Consider this ARTICLE on Bloomberg News. Well…let’s explore a few of these points a little further:

PERSPECTIVES: Is Bitcoin Sustainable?

We believe digital money in place now is and will continue to be the progression of future financial transactions globally. But in what form? Is Bitcoin’s Sustainability and other Blockchain crypto’s for that matter, realistic in today’s digital payments system? We have all become accustomed to purchasing products and services in both physical and online stores by either entering a few keystrokes on the computer, tablet, or smartphone by either tapping or scanning our debit cards/credit cards/or smartphones without the need or use of cash or checks, right? We would also presume that nearly all current fiat currencies in the developed countries and in most under-developed countries are also available in digital form as well (no need to carry cash if that’s your choice). For many years the Central Banks digitally increase and decrease the money supply with book entries, and physically prints just enough cash to sustain our current global cash transactional needs. That said, there are several issues surrounding cryptos, and in particular Bitcoin or any other crypto currency based on blockchain technology that we need to address if we’re going to consider adopting them into our daily lives, and to put our trust and confidence in these platforms. We see five critical issues surrounding the viability of Bitcoin and other crypto’s utilizing Blockchain technology, if they can “reasonably” be expected to drive the future global transactions and financial system. Below are the key challenges that stand out to us:

– POINT #1: Transactional Processing Comparisons:

Simply compare the processing capabilities of Bitcoin and Ethereum (using blockchain technology) versus Hedera’s HBAR (using Hashgraph technology). Once again, please refer to these charts: CHART #1 and CHART #2. The evidence and conclusion is obvious! Bitcoin can effectively handle 3 transactions per second (with finality); Ethereum can process a whopping 12 transactions per second (with finality); and HBAR can handle 10,000 transactions per second with finality (and is fully scalable to handle much, much more). Are we missing something? Or is the world being deceived to place their money in ponzie scheme technology “assets” like Bitcoin and Ethereum? We just ask the simple question…”Why would anyone ever place their confidence in a flawed crypto, like Bitcoin or Ethereum which are both based on yesterday’s technology, blockchain technology?” So is Bitcoin’s Sustainability realistic? Let’s look further…

– POINT #2: Transactional – Fee Comparisons:

Simply compare the transactional costs of Bitcoin and Ethereum versus Hedera’s Hashgraph HBAR crypto. Once again, please refer to these charts: CHART #1 and CHART #2. As you can see, Bitcoin transactional cost come in at $22.57; Ethereum transactional cost comes in at $19.55; and HBAR transactional cost comes in at $.0001. The evidence and conclusion is obvious. Let’s move on to the next point…

– POINT #3: Transactional – Energy Cost Comparisons:

The costs of mining and maintaining Bitcoin and other cryptos using blockchain are substantial, and just don’t make sense to us, ESPECIALLY when producing a more costly yet less efficient, and less secure crypto. Please listen to this VIDEO on Bitcoin mining and energy sourcing. Does this make sense? The energy costs just to mine/produce Bitcoin alone are now becoming evident around the world. Mining companies around the world are actively seeking higher efficient / low carbon footprint energy sources to mine Bitcoin. That’s a respectful objective…to reduce the cost of product input and its carbon footprint on the environment. But how much can Bitcoin, Ethereum and other cryptos built on Blockchain technology realistically reduce their costs when compared to the energy costs of Hedera’s HBAR using Hashgraph technology?

Well, let’s look at the charts once again for a comparison (CHART #1 and CHART #2). Bitcoin energy consumption costs come in at 885 kwh; Ethereum energy consumption costs come in at 102 kwh; and HBAR energy consumption costs come in at .00017 kwh. Need we say more? Are you arriving at the same conclusions we have come to? But there’s more, much more if you’re willing to research for yourselves and not take the words of others at face value. The evidence and conclusion is obvious to us. So again, we ask is Bitcoin’s Sustainability realistic? Next point…

– POINT #4: The IMF/IBS/World Bank Factor:

If you believe there will be an independent financial system free of oversight from the world’s central banking system, then we believe this is a very, very flawed and naïve perspective. Do you really believe the central banking powers of this world will allow a replacement financial system that cuts them out of the equation? Who will regulate the cryptos and the exchanges they’re traded on? Who will oversee regulatory issues on an global level? Which crypto will become the “world crypto currency” to be used for daily transactions from over one thousand cryptos currently in the world today? Bitcoin…Ethereum? Really? Based on the evidence just presented? Do you honestly believe Bitcoin or Ethereum have the technological capabilities and capacities to handle this on a global basis? If so, then I urge you to please refer once again to the two charts listed above. In our opinion, the central banks have been working on their own crypto to be the replacement digital currency.

We also urge you to listen to this brief STATEMENT made by the General Manager from the BIS (the Bank of International Settlement). (Please note: this video was shared by Ms. Catherine Austin Fitts through her newsletter, who in our opinion is one of the most intelligent, thoughtful, strategic, and sincere person we have had the privilege of listening to over the past decade. You can subscribe to her newsletter at The Solari Report or search for her interviews on YouTube or other platforms). Ok…getting back on point…We also believe the central banking powers have utilized the private sector to create an atmosphere of crypto competition to design and engineer a best-in-class crypto technology. The most capable technology that emerges from this hi-tech competitive war, will legitimately have the capacity to replace existing fiat currencies globally. Once the global banking authorities have tested these technologies and their capabilities on all fronts and make their decision, then they will introduce this new global crypto currency. We are pretty confident it won’t be Bitcoin or Ethereum or any other crypto currency built on Blockchain technology. Rather we believe the future crypto currency (most likely the CBDC) will be built on the Hashgraph technology platform. We’ll see…we could be wrong, but Hashgraph technology appears to be the only technology available in the marketplace capable of handling the global financial transactional needs. So again, we ask is Bitcoin’s Sustainability realistic?

– POINT #5: A Possible Solution:

Hashgraph technology is engineered by a company called Hedera, and their crypto is called HBAR. Ever heard of it? Most likely not. We encourage you to take a deeper dive into the capabilities behind Hashgraph technology and their founders (Leemon Baird and Mance Harmon of Swirlds and Hedera…the creators and minds behind Hashgraph technology. Based on our research over the years, Hashgraph appears to be the only technology platform solution capable of meeting all the requisite standards to become “the” technology of choice used in the future global financial system. So, how does Hashgraph technology differ from other cryptocurrencies built on Blockchain technology? The following two links are with the co-founder of Hashgraph (Mance Harmon) who will better explain the differences between Blockchain and Hashgraph technologies than I can do within this post: Link #1 and Link #2.

Question…So why have most people not heard of Hashgraph technology and their crypto called HBAR? In our opinion, while others have hit social media platforms with a frenzy to promote their “crypto du jour” for get rich quick schemes via short-term trading, Hedera’s strategy on the other hand is built as a serious mathematical, engineering, and technology solution to a very complex challenge. In contrast to other crypto’s including Bitcoin and Ethereum, Hedera has engineered their technology platform from the bottom up. It is designed to be a viable technology solution to solve the future digital global financial transactional needs and challenges AND…incorporates a Global Governing Council to oversee its future utilization. Hashgraph is specifically designed on best in class, mathematics and software engineering that solves the deficiencies that current platforms cannot (like blockchain), and is capable of meeting the ever growing and complex needs of individuals, businesses, and governments globally. Once again, we urge you to visit their websites (Hedera and Swirlds), and you can also refer to our earlier posts on Bitcoin versus Hashgraph by clicking HERE.

CONCLUSION: Is Bitcoin Sustainable?

In conclusion, we believe the frantic Bitcoin price rise is largely based on a presumed “value” by a segment of the public. So the question is; is Bitcoin’s value one of the best Ponzi schemes of the 21st century or is it legitimately a store of “value”? We don’t know the final answer to that. All we can say, is when a crypto…a “technology asset” such as Bitcoin or Ethereum, are based on an inferior technology platform like Blockchain, that it is costly to produce, that it is costly for consumers to transact, and that it is “produced” from a highly inefficient environmental perspective, and that it has security vulnerabilities, why would anyone place any real “value” on it other than for pure speculative purposes? That’s the question we should all ask ourselves.

Sure, if we were speculative traders, I would have loved the opportunity to buy Bitcoin years ago, and sell at today’s price…who wouldn’t? But that’s not the point. The point we’re trying to understand and to share with our readers is…Is there real intrinsic value and sustainability in Bitcoin and these other crypto’s built on Blockchain technology or not? Is it really a store of value? If so, what is their value based on? Does it produce anything…anything of real benefit? Is there real value in Bitcoin or these other crypto’s because other financial experts or celebrities are getting on the bandwagon of something they really don’t understand? Have they been sold a bag of social media hype and promotion that is costly and inefficient? Or…Could they be right and they understand something we don’t? Could we perhaps be missing something and be wrong? Perhaps…but we don’t think so given the data available. We’re always willing to consider new, relevant, viable data that could change our perspectives. However, after nearly four years of research, we keep coming to the same conclusions over and over again because there is no other compelling evidence (not opinions) that we’ve been presented with to change our perspectives. We keep asking ourselves the same questions about Bitcoin and nearly all the other crypto’s…what is their intrinsic value?

In closing, let me ask you this, if Bitcoin or any other crypto (except for HBAR) were valued at$1 or $500 or $500,000 (instead of $40,000 at the time of this post), how would you understand or describe their intrinsic value? Would their utility value be any different? Based on what? We understand the total amount of Bitcoin is fixed and cannot be increased…so what? Does that mean if you have only 21 million rocks of a particular mineral makeup, that therefore those rocks have a store of value? Perhaps it does to those who may collect rocks…they may value those rocks. But what about those people who don’t place any value on those rocks because there is no utility value of the rocks themselves nor in the minerals that can be extracted from those rocks? That’s where our understanding of Bitcoin and nearly all the other crypto currencies we have researched, with the exception of Hedera’s HBAR (because it can solve the issues centered on digitizing financial transactions utilizing a crypto currency.

We believe Bitcoin and many other crypto’s are priced in the market today by supply and demand based on short-term trading hype, mainstream media and social media hype promoting Ponzi-like speculative assets that have little or no realistic or practical utility or intrinsic value. We understand…people have become rich, filthy rich trading these cryptos, no doubt (kudo’s to them)! There are some very rich people that have become tremendously wealthy trading these. Our concern or issue isn’t centered on those people, rather to better understand “why” would anyone place any value on a technology tool or product that has not intrinsic or utility value. Our concern also being expressed is for the everyday person who may get swayed into pouring their life savings or a significant portion of their retirement assets into these so-called digital “assets” (that in our understanding have no real value), and they lose everything they have or a significant portion of their nest egg.

We also want to say, we do believe there are some genuine crypto engineers and software developers who are honestly striving to engineer better financial solutions to our current fiat currency system. We applaud them for that! But at the end of the day, they must provide value…not just short-term hyped trading value. But in our opinion, the crypto currencies available in today’s market place that are built on Blockchain technology have three significant challenges facing them:

  1. Most Cryptos are Utilizing an Inferior Technology – that are incapable of handling the vast amount of financial transactions on a global basis efficiently, that is cost effective to produce and transact, and are highly secure.
  2. The Influence of the IMF/BIS World Bank/Central Banks – If you believe the global financial powers of the world (the IMF/BSI/World Bank and Central Banks) will relinquish control of the future financial system to a decentralized platform of crypto currencies controlled by individuals…then we respectfully disagree. Again, take a listen to what the General Manager of the BIS says about crypto currencies HERE.
  3. Most Importantly…The Word of GOD – In the Bible, God tells us in Revelation 13:11-18 that there will come a time in the near future (based on bible prophecy timelines), when those who do not have the mark of the beast cannot buy or sell… If you’re a believer and follow the Word of God, think this through for just a moment… This means that a future global financial system MUST be in place in order to enforce this, right? This financial system therefore would likely be built on a “centralized” platform so that buying or selling can be enforced…not on a “decentralized” platform, right? This centralized platform must also be capable of executing transactions or cutting off an individual’s access to their financial assets on a global basis in real time, right? The global financial system therefore, cannot be built on hundreds of decentralized cryptos or on a crypto that can only process a handful of transactions per second. The global financial system therefore, would likely need to be be built on a centralized system that must be capable of handling the billions of individual, business and government financial transactions globally on a daily basis. Would you agree?

We also believe the evidence demonstrates that Blockchain technology cannot be the technology utilized because the future currency/crypto currency that would likely be used, must therefore be capable of handling all the banking and financial transactions on a global basis. Why? Because it can’t handle the transactional volume, it isn’t cost-effective on both sides, it isn’t energy efficient, and it isn’t secure enough to meet the global financial system’s needs. So what other technology is currently available to meet the global needs on a daily basis? Based on our research, we believe the technology most likely to be utilized would be Hashgraph technology. So…we come back to the same question from the beginning; Is Bitcoin sustainable…Yes or No? Can it go higher in price? Sure it can as long as there are people who believe it has value! But ask yourselves…value based on what? Speculative demand or real intrinsic or utility value? Only time will tell, but in the meantime we just wanted to cautiously present data and perspectives that we have found to be compelling. After viewing the comparative data presented and the challenges for Bitcoin and Blockchain based crypto’s, we ask you this question…do you believe Bitcoin’s Sustainability is realistic?

The conclusions we have reached (as of today’s posting date), leads us to our forestated conclusions. That said, we are always open to new insights, perspectives and ideas based on sound, proven, verified data. Then, once presented with this evidence, we are certainly willing to update or modify our positions when presented with undisputable evidence…not by social media hype, financial pundit hype or Wall Street hype. Until next time, and as we always state in our posts, do your own homework, then make your own informed conclusions and decisions…

GMS BUSINESS CONSULTING, INC. – Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

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A Perspective on Covid-19 Statistics

A perspective on Covid-19 statistics can help us better understand the data and the avalanche of data that hits the daily news headlines. According to Bloomberg News, “Global coronavirus infections climbed above 85 million (as of January 4th), and the daily cases in the U.S. soared to a record of nearly 300,000 following the New Year holiday.” So on the surface, this sounds like a lot of people being infected by Covid-19. It is a big number no doubt, but let’s put this and a few more data points in perspective globally and nationally:

A GLOBAL PERSPECTIVE:

  • GLOBAL INFECTIONS – As of today (January 4, 2021) – According to Johns Hopkins University , globally we have reached 85,497,369 people infected by Covid-19. If you divide that number by the total global population of 7,836,800,670 people (according to the World Population Clock), and you arrive at a 1.09% global infection rate (actual # is .0109).
    • Global Infection-Death Rate – Once again, according to Johns Hopkins University, the global deaths are currently at 1,849,054. So divide this number by 85,497,369 people infected by Covid-19, and you arrive at a global-infection death rate of 2.16 % (actual # is .0216).
    • Global Death Rate – If you divide the number of Covid-19 deaths globally (1,849,054) by the global population (7,836,800,670), this puts the current global-death rate at 0.02% (actual # is .0002).

A NATIONAL PERSPECTIVE:

  • NATIONAL INFECTIONS – As of today (January 4, 2021) – According to Johns Hopkins University, the United States has reached 20,739,217 Covid-19 infections. If you divide that number by the total U.S. population of 332,007,863 people (according to the World Population Clock), you arrive at a national-infection rate of 6.25% (actual # is .0625).
    • National Infection-Death Rate – Once again, according to Johns Hopkins University, the U.S. deaths are currently at 352,620. So divide this number by 20,739,217 U.S. infections, and you arrive at a U.S. infection-death rate of 1.70% (actual # is .0170).
    • National Death Rate – If you divide U.S Covid-19 deaths (352,620) by the U.S. population (332,007,863 people), this puts the current U.S. death rate at 0.1% (actual # is .0011).

STATISTICAL PERSPECTIVE:

  • Let’s shift gears now, and look at the flip-side of the deluge of data we’re presented with daily, and referenced above to get an alternate perspective on Covid-19 statistics. Contrary to how the media presents the daily Covid data, there is light at the end of the tunnel as we look at the statistics from the opposite or a macro perspective:
    • Globally: (look at the inverse of the above statistics) If 1.09% of the worlds population has been infected by Covid-19, that means that 98.91% of the global population has not been infected (yet). Also, if the global infection-death rate is 2.16%, that means that 97.84% of the global population infected by Covid-19, survive.
    • Nationally: (look at the inverse of the above statistics) If 6.25% of the U.S. population has been infected by Covid-19, then that means that 93.75% of the U.S. population has not been infected (yet). In addition, if the U.S. national infection-death rate is 1.70%, then that means that 98.30% of the U.S. population infected by Covid-19, survive.

CONCLUSION:

So now that we’ve provided a perspective on Covid-19 statistics, what does this all mean? What are the implications and lessons learned?

  • We understand that Covid-19 appears to be more deadly than the annual flu. Most of us of us have known people who have either been infected or know of someone who has passed away from this virus that normally wouldn’t from the annual flu. However, we also personally know individuals who had completely different Covid illness experiences than others. This is not an ordinary flu virus…it manifests itself differently than the ordinary flu in many ways…sometimes with deadly outcomes. Regardless, all loss of life from this virus had been a tragedy.
  • We also have learned that our healthcare workers (and we MUST NOT forget the store workers too…who get paid a lot less!) are true heroes! They and others are putting their lives on the line daily, all to help us! We just need more of these selfless people to meet the demands in situations like this. Which brings me to the next point…
  • We’ve also learned that our current health care system is insufficient to adequately handle pandemics. Lack of designated building space, under-supplied medical devices and equipment, and under-staffed medical personnel has resulted in overcrowded ER and ICU facilities. (We personally have family and friends who are physicians/ nurses/ health service providers etc…and we’ve heard their direct testimonies.) Our healthcare system is over-burdened, over-run and short-staffed, which we believe is also a national tragedy. (We’ll address these particular issues more, along with possible solutions in another post later this month).
  • As we apply discernment of Covid-19 statistics (from the above sections), it begs the questions:
    • Do the above statistics merit the shut-downs and closures of our local and global economies. Does it merit the loss of millions of small businesses and the rising unemployment (while the large corporations keep getting fatter and bigger)?
    • What will be the real financial implications, in terms of loss of economic productivity? PLUS, what will be the the future impact on our economies as a result of the voracious appetite of digital money being poured into the world economies? World debt and our national debt have never been higher, and this will eventually have an impact. The question is…to what extent and for how long?
  • Given the “warp-speed” vaccine roll-outs (which normally take years to complete), how effective will the vaccines be in 3, 6 or 12 months from now?
    • What are/will be the medical side effects?
    • Have we sacrificed good science for the sake of a rushed solution that may prove ineffective? If so, at what cost?
    • Who is gain the most? Hopefully humanity at large will gain the most. (We hope the people are the beneficiaries, particularly the elderly and those with co-morbidities).
    • Who else is to gain?
    • When it comes to vaccines, we tend to be a little jaded by the industry that produces these. Here are three links to interviews that may better articulate our skeptical position on today’s vaccines:
  • So many questions will be answered in time…but at what cost?

We hope this post on A Perspective on Covid-19 Statistics has brought some alternate ways of evaluating the data presented to us, and to help raise more questions to discuss, evaluate and consider. We look forward to following up on a few of these points previously made above in future posts. Until then, as we always say, “Do your own research, then make a better informed decision.”

GMS BUSINESS CONSULTING, INC. – Provides lawyers/law firms, for-profit & non-profit organizations, and other business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

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BLOCKCHAIN or HASHGRAPH

Recent Article on Blockchain on Forbes

BACKGROUND:

Blockchain or Hashgraph technology. We believe our readers want to better understand what technology will drive global ecommerce in the future from banking & financial to consumer product transactions.

To better understand this issue, it’s important to understand the two primary technologies available in the marketplace today, and to assess the differences in terms of capability, viability, practicality of application, speed of processing, and transactional costs. Based on our understanding, the two main competing technologies existing today for future consideration is either going to be Blockchain or Hashgraph technology. We thought now would be a good time to re-post one of our previous posts from February 2018 that addresses the differences between Blockchain vs. Hashgraph technologies. Understanding the differences between these two technologies will help our readers to better understand their viabilities in the future.

Once you finish listening to and reading the linked interviews and charts, you too will be better positioned to determine which technology will prevail globally, and which technology will more likely to be used in the future for cryptocurrencies as well.

Hadera Hashgraph Article on Computerworld.com Image Blackjack3D/Getty Images

CRYPTOCURRENCIES & BITCOIN:

We also believe this re-post of evaluating the future viability of Blockchain or Hashgraph technology is timely as well. We also want to draw your attention to the challenges and opportunities with both technologies (Blockchain or Hashgraph), and how they affect cryptocurrencies like Bitcoin. In light of the recent attention and steep run-up of Bitcoin ($18,000+), we do want to state that we certainly believe cryptocurrencies ARE the future monetary mechanism of conducting financial transactions and settlement on a global basis. The question is, will future cryptocurrencies be based on Blockchain or Hashgraph technology?

Based on the evidence we have seen so far, Bitcoin and the Blockchain technology it is based on, can NOT be viewed as a sustainable global digital currency. Please listen to the following links below, as they address the opportunities and challenges of these technologies; from the simplest in concept, to more complex discussions:

Original post from Feb. 2018

KEY VIDEOS & INTERVIEWS:

  1. https://youtu.be/gah5IgRb7qw
  2. https://youtu.be/SF362xxcfdk
  3. https://youtu.be/CaZSxvO4T3M
  4. https://youtu.be/evWBgNdWNDk
  5. https://youtu.be/pOc23lJw7ls
  6. https://youtu.be/1NBfH7dMK4Y
  7. https://www.youtube.com/watch?v=RLkhwFQSPyY&list=TLPQMjEwMjIwMjF4Ag6m8srIkQ&index=3
  8. https://www.youtube.com/watch?v=BfmDDg8KuTI
  9. https://www.youtube.com/watch?v=hzxGIAvzNgM
  10. https://www.bloomberg.com/opinion/articles/2021-03-24/bitcoin-miners-are-on-a-path-to-self-destruction

COMPARATIVE DATA:

I encourage you to CAREFULLY listen to each interview link (above) from our original POST, and also look at the following two comparative charts on processing capabilities and costs:

COMPARATIVE CHART #1 – statistics backing these claims.

COMPARATIVE CHART #2 – Here’s another comparison of Bitcoin vs. Hashgraph cryptocurrency performance.

CONCLUSION:

Based on these interviews, and the data we have reviewed and shared, we believe the evidence is quite clear. Hashgraph technology will lead the future in global transactional infrastructure. Why isn’t this being discussed in the mainstream media? We’re not sure…

The reason for our re-post and further discussion of Blockchain or Hashgraph technology has been influenced by recent news commentaries, public discussions and opinions, and lastly by the comments of close friends and relatives. Of particular interest to us is the fact these same relatives and friends who have little or no experience in business, finance, financial markets, and cryptocurrency technology are now experts in these areas. The fact that these same family and friends most interested in cryptocurrencies are the ones who don’t own any other investment assets (other than Bitcoin). This is a red herring to us, as they are now suddenly the experts, touting the merits and future potential of Bitcoin and Blockchain technology. We’re not saying you have to be a financial expert to properly identify and evaluate investment opportunities. Quite the contrary! What’s more important to us, is to be open-minded to conduct further research, ask more questions, evaluate alternative data and information, and then compare what you’ve obtained with the information that is currently popular on mainstream news and in discussion groups.

Our concern is, like with speculative stock trading on Wall Street Bitcoin and many cryptocurrencies may be experiencing a “pump-and-dump” or as it is known in the crypto world as “the rug pull”. This process may be applied with speculators or traders or speculators of many cryptos, including Bitcoin. These speculators use clever marketing strategies (including word of mouth and social media postings )to lure new customers to their products. Surprisingly, even more reputable companies like PayPal and Visa are now offering cryptocurrencies (like Bitcoin), as means of transaction processing and offer reward incentives to do so. My question is, do the CEO’s and CTO’s not understand the technology this is based on given its unsustainability, limitations, and high transactional costs? If not, why not? We thought this ARTICLE on cryptocurrencies posted today on Bloomberg (7-08-21) would be of interest too. Seems like others may finally be waking up to the fact that there really does need to be some form of regulatory oversight on cryptos, as they are intended to be a means of conducting reliable financial transactions, not for pure speculation. At least that’s our position.

All that said, getting back to the issue of Blockchain vs Hashgraph technology, our question is: If a better technology platform solution exists (like Hashgraph), and a cryptocurrency utilizes this superior technology, then why would you put your money into a cryptocurrency (like Bitcoin and others) that utilize an inferior technology platform like Blockchain? It just makes no logical sense to us other than perhaps this is purely a speculative trade or crypto bubble (speaking of Bitcoin and others alike). Many people may make a lot of money trading these cryptocurrencies, but unfortunately many people will also get burned in the long-run as well. Yes, money can be made in trading crypto’s, perhaps lots of money can be made by speculative trading by those experienced in day trading, but what about the average Joe? That’s why we’re posting this subject again…to offer another cautionary perspective to the public and to our readers. Just keep in mind… isn’t a key characteristic of a “credible/reliable” currency based on history of stability and not extreme high volatility?

I hope we’re wrong on this one… True, Bitcoin can go higher…perhaps much higher, but based on what? Speculation or sustainability? Only time will tell. Until then, we hope you find this information helpful in your evaluation of future global technology and cryptocurrencies, whether it be based on Blockchain or Hashgraph. Remember, do your own homework, then make a better informed decision.

GMS BUSINESS CONSULTING, INC. – Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

GMS Business Consulting No Comments

Perceptions vs. Facts on Covid-19

https://coronavirus.jhu.edu/map.html As of 4-23-20

Today’s post is to address the perceptions vs. facts on Covid-19 and the degree as to how serious it is…or isn’t. Caveat: We are assuming that we can trust the sources and the integrity of the data presented by the CDC and Johns Hopkins and other respected organizations. At this time, we’re not going to address the economic impact of Covid-19, as we’ll save that for another post.

So let’s address the perceptions vs. facts on Covid-19 as it relates to the severity of its contagion and mortality rates. Then we’ll be in a better position to better ascertain whether or not government and health officials are over-dramatizing it’s health implications. Let’s begin…

There are many people questioning or doubting the severity of Covid-19 as presented by government and health officials. Are they over-blowing and dramatizing its contagious and destructive power? Most of the critiques we hear from the media, politicians and protesters regarding the lock-downs and social distancing policies, (people who maybe well-intentioned or not), usually fall short in applying comparative analysis of data and statistics available. That is, they are not comparing apples-with-apples when it comes to comparing Covid-19 data vs. the death rates of other diseases as they formulate their opinions. So, do we simply take their word for it and believe what they say? Certainly not! As we always encourage our client’s and reader’s of this blog…do your own research. Get properly informed! Then we can better understand the situation and make better decisions. So let’s get on with our discussion on the perceptions vs. facts on Covid-19.

I. Discerning Fact vs. Fiction:

At GMS Business Consulting, we have one simple rule to follow as a guiding principle in business; filter out all the “noise” by looking at the data, then compare apples-with-apples, and not apples-with-oranges. Here’s what we mean:

Many people are downplaying or misunderstanding the data and the significance of Covid-19, and believe we should just “get back to work.” “Just use a little hand sanitizer and sport a mask and all is well!” Let the “healthy” people go back to work!” We would agree for healthy people to be allowed to go back to work. We are all for it…if we can be assured that each state has the appropriate testing, medical equipment, medical staffing and policies in place. Currently, we don’t have those in place. Usually these same arguments for getting back to work before the fore-mentioned policies are in place, are followed-up by using comparative mortality rates of various illnesses to substantiate their views. What’s needed, is a clear foundational perspective on what to base a comparative analysis on when using data and statistical information.

II. Annual Deaths in the U.S.

III. Leading Causes of Death Annually in the U.S.

IV. Annual Flu/Influenza Infections & Deaths in the U.S.

https://www.cdc.gov/flu/about/burden/index.html

Here’s a link and an excerpt to the CDC’s data on annual influenza: https://www.cdc.gov/flu/about/burden/index.html

  • “A 2018 CDC study published in Clinical Infectious Diseasesexternal icon looked at the percentage of the U.S. population who were sickened by flu using two different methods and compared the findings. Both methods had similar findings, which suggested that on average, about 8% of the U.S. population gets sick from flu each season, with a range of between 3% and 11%, depending on the season.”
  • Did you catch that? In any given year, approximately 8% of the U.S. population (8% of approx. 330,000,000 million people in the U.S.) equates to approximately 26,400,000 people become infected with the flu annually. Again, it’s about Perceptions vs. Facts on Covid-19.
  • The CDC estimates that influenza has resulted in between 9 million – 45 million illnesses, between 140,000 – 810,000 hospitalizations and between 12,000 – 61,000 deaths annually since 2010. This equates to an estimated mortality rate of approximately .10%
  • Remember the above mortality rate and what it’s telling us in terms of the annual deaths from the flu in the U.S. versus Covid-19. Now lets take a look at Covid-19…

V. COVID-19 Cases and Mortality by Country AS OF 4-23-20.

CountryConfirmedDeathsCase-FatalityDeaths/100k pop.
US839,67546,5835.5%14.24
Italy187,32725,08513.4%41.51
Spain208,38921,71710.4%46.48
France157,12521,37313.6%31.91
United Kingdom134,63818,15113.5%27.30
Belgium41,8896,26214.9%54.82
Iran85,9965,3916.3%6.59
Germany150,6485,2793.5%6.37
China83,8684,6365.5%0.33
https://coronavirus.jhu.edu/data/mortality
https://coronavirus.jhu.edu/data/mortality

VI. Comparing Apples-to-Apples

Annual Flu – Contagiousness:

  • CDC Link: https://www.cdc.gov/flu/about/keyfacts.htm
  • You may be able to spread flu to someone else before you know you are sick, as well as while you are sick.
  • People with flu are most contagious in the first 3-4 days after their illness begins.
  • Some otherwise healthy adults may be able to infect others beginning 1 day before symptoms develop and up to 5 to 7 days after becoming sick.
  • Remember the “average” annual contagion rate for the annual flu here in the U.S. is 8%, and a mortality rate of .10%.

Covid-19 – Period of Contagiousness:

  • According to the CDC, the contagion infection of Covid-19 can be asymptomatic with no signs of infection or flu-like symptoms for as long as 2 weeks! This means the virus can spread exponentially faster than the regular flu because seemingly healthy people are able to spread the virus with anyone they come in contact with or touch any surface in their daily life for 2 WEEKS (and perhaps longer) without ever realizing they’re infected. Based on the data provided, the Covid-19 contagion and mortality rates are VASTLY different to the annual flu!
  • As you see from the above chart, the current mortality rate here in the U.S. for Covid-19 is 5.5% vs. .10% for the annual flu! The differences in the infection rate and mortality rate of the annual flu vs. Covid-19 is very compelling.
  • So let’s calculate a hypothetical “apples-to-apples- comparison of Covid-19 “assuming” an identical infection rate as the annual flu in the U.S. (Keeping in mind that Covid-19 is actually far more contagious than the annual flu, but for hypothetical purposes, we’ll apply the same infection rate):
    • Using an infection rate of 8% on the U.S. population of 330,000,000 people:
      • Annual Flu – Infections = 26,400,000. (avg. annual)
      • Annual Flu – Death Rate using .10% = 26,400 deaths.
      • Covid-19 – Infections = 26,400,000. (using same infection rate as the flu.)
      • Covid-19 – Death Rate using 5.5% = 1,452,000 deaths.
    • That’s an additional 1,425,000 potential deaths for the same amount of infections! And we know Covid-19 is far more infectious than the annual flu due to the asymptomatic incubation time that could be as much as two weeks or longer BEFORE any symptoms become present! In other words, this makes Covid-19 55 times more lethal than the annual flu, and we haven’t even touched on the point of demographics of those who have been hit hardest by this virus.
    • Can you see why it’s important to compare apples-to-apples and not apples-to-oranges? This foundational comparison can help us better distinguish the perceptions vs. facts on Covid-19.

VI. Conclusion:

Again, assuming we can trust the sources and integrity of the data compiled by the various European countries, New York, the CDC, Johns Hopkins University and the like, it appears that Covid-19 is not like the annual flu…it’s much, much worse. Like many of you, we have family and friends who are medical professionals working in the hospitals and health centers. They can tell you their stories and experiences with Covid-19, and where the short comings of our healthcare system are. Our current medical system cannot handle much more than what they have recently faced. Consider us blessed and very fortunate! (Consider the bar chart above in comparison to other countries.) So what have we learned so far?

  • Social distancing and stay-in lock-downs, face masks, and sanitizing may be an inconvenience, but it has worked so far! Compare the difference it has made versus what the European countries have endured! New York has similar results of Europe, as they only had a 1 week lag time over Italy.
  • The main differences between the U.S. infection and mortality rates vs. the Europeans and New York, is that we had 2-3 more weeks lead-time (except New York) to prepare and put social distancing and stay-in policies in place.
  • European countries and New York also utilize mass transit far more extensively than the rest of the U.S. Had the rest of the U.S. utilized mass transit and not had an extra few weeks lead time to prepare…our current results would more closely reflect European countries. (Look at the chart above)
  • So what’s the answer? Do we continue leaving the restrictive policies in place a little while longer? Or do we prematurely open the country for business and risking a contagion and death rate that gets out of control. At what cost? Economics or lives? Who or what is your moral compass for making decisions like this? We would sure like to know the President’s and Governor’s. Fortunately, we don’t have to make that decision.
  • Our point is, can we be a little more patient and let each state reopen for business if each state’s Governor can verifyably demonstrate the following:
    • That their state has an effective Covid-19 policy in place.
    • That their state has appropriate testing standards and equipment in place.
    • That their state has the appropriate medical staffing and resources in place.
    • If the Governor of each state can attest to their constituency, then they should be allowed to reopen for business.
  • The economic effects that Covid-19 has been devastating not only in terms of magnitude, but in terms of the historical rate of speed which this has happened. Unfortunately, we have NOT begun to see the full repercussions.
  • Nor have we seen the economic impact of all the digital stimulus money being printed, and what it will bring to bear in the future months and years to come.
  • But we hope we have been able to at least present informative information to address the perceptions vs. facts on Covid-19 and the seriousness of this virus based on the statistical data provided.
  • Unquestionably, we are living in unprecedented times, but if you’re a Christian, you should not be surprised by all this. The Bible warns us of times like these to come before the second coming of Jesus Christ. For those of you who are not Christians nor have ever read/studied the Bible, perhaps now is as good a time as any to do so.
  • So what can we do? Can anything good come out of this? We’ll talk about that next week in our next post. Until then, we can all do the following:
    • We can be patient with the social distancing policies.
    • Help others who are in more need than we are.
    • Do your own research,
    • Make sure when using data/statistics to compare apples-to-apples…
    • Pray and read your Bible. You will be enlightened with His promises and comforted with His peace.
  • Until next week, be patient, stay safe and healthy.

GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

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OUR FINANCIAL OPIOID ADDICTION – IS DEBT!

Our financial opioid addiction is debt! Record household debt is at an all-time high. Does it matter? Our national debt is at a record high. Does it matter? What does this mean to you and me, and for our country? Read further then you decide for yourself…

According to these articles on MarketWatch and Bloomberg, household debt exceeded $14 TRILLION dollars by the end of 2019. According to these articles, this past quarter was the 22nd STRAIGHT quarterly increase in consumer debt! Mainstream business news pundits claim the economy is strong, and that consumer purchasing is strong etc. It makes me ask, what business school did they attend? What business principles are they applying to come to these conclusions? These pundits appear to be bright, articulate, well-educated and sincere people…and I’m sure they are! But what do they see that I don’t see or understand that I don’t understand? Let’s look at the strength of the consumer and our overall economy from a macro perspective so that we can better understand the underlying principles of this s0-called economic “strength” that mainstream media pundits claim.

FIRST:

Let’s assume that we can first agree on one basic principle that debt is debt. Debt means that you owe money for an item you purchased… you do not own that particular item/asset until it is paid off. If you can’t afford to buy something outright, then debt it taken on because in most cases one doesn’t have the financial means to make an outright purchase of an item or asset, rather you have reserved the right to take possession of that item or asset until that item has been fully paid for…then you have actual ownership. You may have “reserved” title of ownership such as in your home or the car you drive…but you don’t actually own it until it is paid off. (Try missing 2-3 payments then you’ll quickly understand who the owner is and who the debtor of that asset really is.) Have we forgotten this basic principle? In some cases, debt may be assumed by individuals to charge an item in order to gain the mileage points or whatever incentive is being offered. (I too have done this myself in order to obtain additional discounts on the items I was purchasing…but then I paid off the balance completely when the first bill came due. I no longer carried that debt, and in those situations, short-term debt can make good financial sense.) But that’s not what we’re talking about here... The $14 TRILLION in consumer debt has obviously not been paid off, rather it has steadily increased each quarter for the past 22 quarters. What does that tell you? As consumers and as a nation, we are in the midst of a financial opioid addiction.

This record amount of consumer debt tells us, that rather than consumers paying off debt, the consumer’s debt continues to grow. Why? Well, for several reasons; credit is continuously being extended, wages aren’t keeping up with inflation, and we are living beyond our means. Thus, financial opioid addiction! This continuous growth in consumer debt keeps fueling this “ponzi scheme” of the American economic mind-set. This will eventually lead to the ultimate destruction of the consumer’s future financial well-being. Pundits say the consumer is confident and is therefore spending more. Should they be? If they are so confident, then why take on more debt…more servitude to debtors rather than paying down the debt already owed, and loosen the financial bonds that will further strangle them when the next financial crisis hits?

SECOND:

Consumer debt is simply a mirror image of the mind-set of the U.S. national debt, which is currently at $23.2 TRILLION (according to the U.S. Treasury). The highest in world history. Why is this? Because currently, the U.S. still maintains the “World Reserve Currency”…meaning we can print all the money all we want or need (digitally and physically), while the rest of the world cannot. We’re able to finance (issue debt/ create money out of thin air/ for anything we want militarily, financially, infrastructurally, you name it (at least we can for the time being). The U.S. Government and consumers alike are suffering from financial opioid addiction…period. As American consumers, we have become accustomed to buy whatever we want, whenever we want without forethought of what it means to our financial future. So the pundits state that our the economy the most powerful/prosperous in the world. Is it really? Or is it because we carry the highest amount of debt of any other nation or people in the history of the world? It sure sounds like borrowed materialism and prosperity without paying for it! We just keep kicking the financial opioid debt down the financial highway of destruction. Have you ever considered if all debt was called in immediately or if the taps to this opioid debt were suddenly cut-off? What would happen to this nation…to us individually? We would be bankrupt (we already are). The rest of the world just playing along… Take a look below at the U.S. Debt Clock as of 2-11-20, the U.S. national debt. Is this the proof of prosperity or indebted fake prosperity?

Our economy and our consumers alike have “seemingly” flourished because we have access to a never-ending source of debt. One problem: Someday this situation will come crashing to an end, and unfortunately we as a country and individually as consumers will have to live through those consequences. But until then, keep the economy going! Spend, spend, spend! Come on consumers, do the American thing… keep on spending and taking on more debt… it’s what comprises two-thirds of our economy! Is that really economic strength or is it economic weakness? Is that what we really represent to the world? As a Christian nation founded on Christian values and principles, is that what the Bible teaches us?

Have you ever thought of what would happen if/when the “World Reserve Currency” status is taken away from the U.S.? OR…when the rest of the world no longer recognizes the U.S. dollar as the world reserve currency? Have you ever thought of that? What it would be like for you/ your children/ or your grandchildren when that day comes, and we can no longer digitally or physically print as much money as we “want or need” to service our debt? Considered what it will mean financially to our country, to you and your families? I would encourage you to give some critical thought to that for moment…it’s pretty sobering.

THIRD:

What will happen to the U.S. consumer when the next economic downturn happens… when credit is once again tightened/ or reduced/or restricted and we can no longer charge or incur debt to pay for items we want or NEED? My point is… for many of us, our personal and national financial condition is built on DEBT. When this financial house of cards begins to fall, when this financial ponzi-scheme begins to implode, those with debt will suffer the most. Consider this article from Bloomberg this morning regarding Fed Chairman Powell’s comments on the next economic crisis… Will the Federal Reserve have enough ammo to fight the next recession? My question to each of us is, will we individually have enough financial ammo in our personal arsenal (savings and owned assets) for us to survive the next recession?

CONCLUSION:

It may be worth considering, that with the stock market at all-time highs, the bond market near all-time highs and the real estate market at all-time highs, wouldn’t it be prudent as a consumer to tighten our spending and reduce our debt rather than increasing our debt? Perhaps for those with some market investments to consider reducing their market investment exposure, and take some of the profits and use them to pay-down debt? Remember the wise old saying, “Buy low…Sell high” that generations before us better understood?

For those who don’t have investments to liquidate and apply the gains to pay down debt, perhaps they can begin to implement a debt pay-off plan vs. purchasing the newest smartphone (avoiding brand names) or other like-kind spending choices? As mentioned earlier, we have become consumers and a nation of the financial opioid called debt. We’re addicted and we don’t seem to care too much about that right now or at least we won’t until the opioid is someday taken away. Wouldn’t it be wonderful for us to change the mindsets of financial pundits from expressing that it’s good that consumers are “spending” (i.e. taking on more debt), to consumers are now saving and paying down debt, therefore reducing their servitude to debtors? Will our economy grow more slowly, yes. But as a nation and individually we will be financially stronger, enabling us to better weather the next financial storm that lies ahead, and begin to shed our financial opioid addiction to debt.

GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

GMS Business Consulting No Comments

Is Blockchain Dead?

Swirld.com

Is Blockchain Dead? That’s the question that this Article on Bloomberg addresses and this Lecture about the future of money (blockchain, crypto currencies, fiat currencies) by Jim Rickards attempts to answer. We believe that although Blockchain has many merits, we also believe it has many limitation too. The limitations are particularly obvious when it comes to using Blockchain as the foundation technology for crypto currencies like Bitcoin. Bottom line, Blockchain doesn’t have the horsepower nor technology capabilities to continue supporting crypto currencies in our vast global financial system. That said, there is a technology that can handle the demands of a global economy. That technology is called Hashgraph (look at our POST back on February 5, 2018).

The topics of Blockchain and Hashgraph technologies and Crypto Currencies should be of importance for individuals and more important to businesses. Understanding these technologies and how to better utilize these technology issues will impact the businesses we operate and will ultimately impact our lives in the future. That said, we don’t feel the need to rewrite our position on these topics (Blockchain, Bitcoin and Crypto Currencies) as we previously covered these topics in our POST back on February 5, 2018. The background of these technologies and their implications are thoroughly discussed in the interviews we included in the post.

As we mentioned back in February 2018 and we continue to believe today, HASHGRAPH is/will be the leading technology going forward…not Blockchain technology. We hope you will find this post/and previous post (February 2018) to be insightful and helpful. Remember, do your own research. Then make better informed decisions. We’ll look forward to posting again soon!

GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

GMS Business Consulting No Comments

Interest Rates Tell The Story…

US Interest Rates 6-13-19 Source: Bloomberg

Interest rates tell the story… Good morning readers! Do you want to know where the economy is heading, where the stock market is going, the overall health of the economy? Just follow the interest rates and their upward or downward direction.

How does this affect you as an individual and as a business owner? It affects your personal income and business income, as upward and downward movements in interest rates create both challenges and opportunities. This is pretty basic for most of you. However, we’re going to highlight some interest rate basics below, to help you understand a few charts we’re about to display in a few minutes. But first, here are the basics:

Interest Rate Impact:

  • Rising Interest Rates – As interest rates begin rising, it’s usually due to one or more reasons:
    1. The economy is heating up, and inflation becomes a concern, so the Federal Reserve increases interest rates to help keep inflation under control. Or…
    2. The local currency is weakening against other leading currencies. So, interest rate increases may be used by the Federal Reserve to prop-up the local currency (too deep for this posting). Or…
    3. Wall Street/or world financial markets indicate that they see an overheating economy, thus urging central banks to raise interest rates.
  • Lowering Interest Rates – As interest rates begin declining, it’s usually due to one or more reasons:
    1. The economy is slowing down and verging on recession or is in the midst of a recession, and inflation concerns begin to lessen, so the Federal Reserve may lower interest rates to help the economy avoid further decline and begin stimulating the economy towards positive growth. Or…
    2. The local currency is gaining too much strength against other leading currencies, thus impacting its ability to export goods and services. So, interest rate decreases may be used by the Federal Reserve to weaken the local currency to help encourage its exports to foreign countries (too complex for further discussion in this posting). Or…
    3. Wall Street/or world financial markets indicate that they see a declining economy, thus urging central banks to lower interest rates.

From a Personal and Business Perspective:

  • PERSONAL PERSPECTIVE:
    • Existing Loans – As interest rates increase or decrease, any adjustable loan payments you have may adjust either upward or downward in accordance with the direction of interest rates. Thus making your loan payments either higher or lower (pretty obvious).
    • New Loan Qualification & Payment – Your personal income may be affected positively or negatively by any future loans you may be considering or may qualify for (such as home, auto, or personal loans), making your monthly loan payment either more or less expensive in accordance with the direction of interest rates (pretty obvious too, right?).
  • BUSINESS PERSPECTIVE:
    • As interest rates increase or decrease, business loans etc. become more or less expensive, thus affecting the business cash-flow positively or negatively (obvious once again).
    • As interest rates increase, the other costs of business usually increase as well. This reflects an expanding economy where the costs of doing business increase due to an increasing demand for materials and services out-pacing existing supplies.
    • As interest rates decrease, the costs of conducting business tends to decrease as well. This reflects a slowing or contracting economy that may be either going into a recession or may already be in a recession. This is simply due to the supply of materials and services outpacing demand.

Once Again… Interest Rates Tell The Story:

Let’s now look at the charts below, beginning with interest rates here in the U.S. What story does this chart tell YOU, and how will they impact you personally and professionally?

US Interest Rates – 6-13-19 Source: Bloomberg

Let’s now take a look at Interest Rates in the UK…

UK Interest Rates 6-13-19 Source: Bloomberg

Lets now look at interest rates in Germany (Europe’s leading economy)…

Germany Interest Rates 6-13-19 Source Bloomberg

Finally, lets take a look at interest rates in Japan…

Japan Interest Rates 6-13-19 Source: Bloomberg

So, have you noticed a common theme among the “leading” economies of the world when it comes to interest rates? Interest rates are near all-time lows! What does this signify to you? Eleven years after the 2008 – 2009 financial crisis, interest rates here in the US are still near historic lows, and the next two leading economies (behind the US), are even lower. In fact, they are at negative interest rates. It is sometimes explained as an incentive for banks to loan money because depositors will hoard their cash…is that so?

We believe negative interest rates may also reflect something vastly different. Perhaps that the underlying condition of the economy is fragile…very fragile. The economy would have to be very fragile in order to bring interest rates near all-time lows, correct? Then…perhaps to encourage banks to loan money they could take rates lower in order to incentivize lending. But the lending couldn’t be the key reason why interest rates would drop so low. It has to be that the sate of the economy is in such a fragile state that rates needed to be lowered in effort to stimulate a failing economy. We believe that’s the real reason why central banks are lowering interest rates drop so low. They may be out of tricks to keep the world economy running on runaway debt that can never be paid back.

Look at what has happened to Japan over the past two decades? Is this signaling what could happen here in the US? In either case, our point is, that current interest rates on a global levels do not reflect healthy economies nor a healthy financial system. If that’s the case, then how do you prepare yourself personally and professionally? That will be the subject of our next post in several weeks. Until then, do your own research and give this issue some critical thought. It may affect your near-term and long-term planning both personally and professionally. Remember, Interest rates tell the story…what story are they telling you?

GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services.  We do NOT provide investment advice!  If you are interested in learning more about our consulting services, especially our M.A.P. solution (a Master Action Plan), designed to help business professionals to strategically manage and tactically grow their business, then Contact Us… We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

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A FACEBOOK FOLLOW-UP…

Zuckerberg Knew of ‘Problematic’ Privacy Practices, WSJ Says

A Facebook Follow-up
Mark Zuckerberg Photographer: Marlene Awaad/Bloomberg

A FACEBOOK FOLLOW-UP for our readers… We have posted several articles regarding Facebook and its lack of oversight and data privacy policies regarding customer data. We thought this article posted on Bloomberg as reported in the Wall Street Journal speaks to Mark Zuckerberg’s knowledge of data policies and might be of interest to you.

A Facebook Follow-up question for you: Have Americans compromised their ethics and moral values all for the sake of money? By supporting Facebook and it’s President Mark Zuckerberg it sure seems like we have. Does making excuses for Facebook and overlooking Mr. Zuckerberg’s lack of integrity, leadership and oversight reflect a change in our country’s moral compass? Are we personally compromising our integrity and moral values as a people, for the sake of the “almighty dollar”? It would certainly appear so…

Many Americans continue supporting Facebook, despite all the evidence of compromising policies and its customer data in lieu of profits. So, what does that say about us individually and as Americans? Do we value Facebook’s social conveniences and business generating capabilities at the expense of ethics, data policies, customer care, leadership and trust? Have you?

GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services.  We do NOT provide investment advice!  If you are interested in learning more about our consulting services, especially our M.A.P. solution (a Master Action Plan), designed to help business professionals to strategically manage and tactically grow their business, then Contact Us… We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

GMS Business Consulting No Comments

Bitcoin and Blockchain For Lawyers

Bitcoin & Blockchain For Lawyers should be considered thoughtfully before implementation. A recent blog post by the law firm software management firm, MyCase, presents a clear (yet basic) description of how Bitcoin and Blockchain technology may work together in terms of payment receipt by lawyers and law firms for services rendered. We have concerns that we would like to share with you…

FIRST – Our Concerns About Bitcoin:

  • Bitcoin has no official oversight body to ensure against fraud and cyber security threats (other than a fictitious name, Satoshi Nakamoto), there is no record of ownership/creator/overseeing entity…nothing! So who or what is really behind this crypto currency? This may be changing though according to an article on Bloomberg. Crypto currencies may be facing their biggest hurdle yet…
  • Bitcoin is backed by nothing…just people agreeing that it has “some” form of value…an intangible value based on what? This can also be said about our current fiat currency system in existence today. However, there is one key difference. At the end of the day, the U.S. currency and other world currencies are backed by the “full faith and credit” of their respective government. Yes, that too can be questionable as to the economic soundness of any particular country. However the government does take responsibility to oversee and manage the stability of their currency through their central banks. This oversight effects all persons not only of the issuing country, but transactions using that currency world-wide.
  • Bitcoin does not work like most recognized/accepted currencies around the word. One can’t transact with it all over the world or in ordinary day-to-day transactions as you would using your debit or credit cards because not everyone accepts Bitcoin as a legitimate exchangeable form of currency. The challenge that Bitcoin and most other crypto currencies face is, that almost nobody accepts nor uses these crypto currencies on a daily basis for business or personal financial transactions…see this article from Bloomberg.
  • Bitcoin in its current state is completely unsustainable as a crypto currency, in its current form to be used on a global scale in day-to-day transactions (using Blockchain technology) based on the IMMENSE amount of energy required to mine/produce one Bitcoin. It’s completely unsustainable in its current state. (See points below on Blockchain vs. Hashgraph technology below.)
  • In addition, most of you know that Bitcoin is EXTREMELY volatile! As of today’s posting (06-04-19), Bitcoin is up approximately 35% over the past month (from $5612 to approximately $7607). However, for the past week it is week it is down nearly 10% (from $8536 to approx. $7607). So as an attorney or business professional, when do you convert to US dollars? On any given day it can be up or down significantly. You could either make or lose a lot of money depending on the day of conversion to U.S. dollars. Is that how you want to operate your business cash-flow?
  • We would suggest to lawyers and business professionals to carefully consider the risks of accepting Bitcoin as payment currency for services provided until the crypto currency itself stabilizes (it may or may not). If you want to use Bitcoin in your personal life as a speculative investment, then that’s your choice. Question…do you believe you have the experience/expertise/tools/and the time needed to competently and successfully trade Bitcoin and make a profit? Perhaps you do, and if so, good for you. Proceed with caution…and keep in mind the chart below on Bitcoin’s pricing history:

SECOND – Issues with Blockchain Technology & Crypto Currencies:

It’s true that Blockchain has many, many capabilities. In fact, Fintech News posted an article that major central banks around the world are “exploring” crypto currencies using Blockchain technology. The “key word” is “exploring”…not implementing. See Article HERE or click the picture below:

Fintech News
  • Blockchain, is considered by many to be “the technology” of the future used for crypto currencies. Blockchain technology has many exciting uses for future business application. However to be used as “the technology” engine behind crypto currencies, there is one key challenge that makes Blockchain an unlikely solution:
    • From a capacity standpoint, Blockchain lacks the robust number-crunching capabilities needed to handle the vast amount of financial transactions processed in the financial world in reasonable time periods for businesses and consumers.
  • Based on our research, Hashgraph technology, (not Blockchain technology) will likely be the technology used to support mainstream crypto currencies going forward. The reasons why Hashgraph will likely be used, and how it compares to Blockchain is too lengthy a discussion for this post. So please see our next point below…which takes you directly to some expert sources comparing these technologies.
  • For an extensive look into Blockchain vs. Hashgraph technology, please refer to our February 2018 post on “Hashgraph vs. Blockchain.” Listen to what the experts have to say regarding these technologies and how they compare and deal with the needs and challenges of crypto currencies going forward. Then come to your own informed conclusions as we have.
Swirld.com

OUR CONCLUSION:

Blockchain has its place in the world today and is extremely valuable! Hashgraph technology also has its place in the world today and for the future in business and financial applications that will effect us personally as well. In our humble opinion, Hashgraph may completely replace Blockchain as the technology of choice used for driving the future of crypto currencies. That said, we won’t be so narrow-minded to say we won’t be swayed that other technologies being developed can’t be used in future crypto currencies either. That said, the arguments/facts presented by the experts in this field (from our February Post) are very compelling. As for us, we’ll keep accepting payment for our services directly in U.S. dollars, without the extra step and financial risks of currency conversion. We hope you find this post to be helpful and insightful in making your business decision as to accepting Bitcoin for the services your law practice provides.

GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development solution), designedto help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

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Cryptocurrencies Are Failing…

Hello Everyone, this morning we saw an article on Bloomberg, on how cryptocurrencies are failing. That’s what we have told our clients and readers for the past year. The reasons why the cryptocurrencies are failing are two-fold:

  1. First, Blockchain technology is NOT the a sustainable platform for cryptocurrencies to be built on! Blockchain is neither practical nor sustainable, and is expensive. The future for these cryptocurrencies rest on a new technology that solves the issues that Blockchain has. This technology is called Hashgraph. See our post from from February 2018 on Hashgraph vs Blockchain technology.
  2. Secondly, Central Banks will NOT allow cryptocurrencies to be independently established in the mainstream financial system unless they either produce them or control them…period. If you don’t believe this, simply do a study on the power of the Central Banks/ the IMF/ the BIS and how they run the banking and financial world.

Until the underlying technology platform for crypto’s changes to a sustainable one like hashgraph, and the Central Banks either issue the crypto’s themselves or control them, cryptocurrencies like Bitcoin will be in the hands of the few with limited usability, and sky-high volatility. Currently, cryptocurrencies are unregulated digital currencies. In essence, they’re digital fiat currencies with little or no oversight, and they have very limited usability at this time. Be careful and do your homework before investing or converting your local currency into any cryptocurrency.

GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow, manage and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135