Wednesday, December 6, 2017

Latest: Bit Coin and Space X

There are complaints going around that from 30% to 35% of all Bit Coins are lost and could be gone forever. It seems that passwords get lost and owners lose out. In dollars, we are talking about $20 billion. Of course, there are internet services that will attempt to retrieve your coins, but at a price. In other news the largest commodity exchange, the CME will begin trading futures in Bit Coin on December 18th. The margin is expected to be 30% to 35%. You know this will cause a spike, but two obstacles are looming. The IRS says Bit Coin is property and that is taxable. In addition, the government wants info on all accounts of $20K and a record of transactions. Are taxes coming? You betcha!
The other enemy of the coin will be the banks. They will hammer it at some point because it is a threat to them. The price action on the coin set a new record on Monday at over $11,500. Trading will begin next Monday and that means there will be not only buyers, but sellers! Buyer beware!
Space X 
We now have an idea what it is valued. Recently, Musk raised another $100 million which puts the estimate to $21 billion. Musk plans to orbit 4,425 high speed internet satellites which will provide internet access anywhere in the world even on an ocean liner...for a price.
Space X has almost a monopoly on reusable rockets. Musk had the foresight and belief in the concept. He has developed his own engines which are based on Russian technology. They give 20% more thrust. This is valuable since it cost $10,000 a pound to fly. This is a huge saving and Musk believes he can lower the cost to $500 a pound. This gives Space X a big advantage over NASA.
In addition, Musk uses new metals which are stronger and lighter. Again, he borrows from Russian research in metallurgy.
We or our government never acknowledges the valuable contributions to space by the Russians. This is very sad and our post war history with them only has a few bright moments. The best is when JFK got together with them to reduce nuclear weapons. Our military complex hated him for that which shows where their heads are directed. It would be nice to show the Russians some love and respect and then, maybe we could Give Peace A Chance.