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Bitcoin Investing: Is It a Good Investment and How Much Should I Invest?

Now, what is this action—which is very technical—what does it mean for you? Let me lay to rest the bugaboo of what is called devaluation. If you want to buy a foreign car or take a trip abroad, market conditions may cause your dollar to buy slightly less. But if you are among the overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today. The effect of this action, in other words, will be to stabilize the dollar. -President Richard M. Nixon, August 15th, 1971

Turns out, the devaluation was more than just a ‘bugaboo.’ The gold window was officially closed, though few Americans were tuned in that Sunday evening to see Nixon’s address. Even fewer understood the long-term significance of his historic announcement. He had already made a big network splash the month before by announcing his visit to China that would forever change the world, and while that was meant for fanfare, this announcement was made on purpose with few watching. President Richard M. Nixon withdrew the United States from the Gold Standard to the chagrin of classical economists. This would launch a brave new world with floating exchange rates and a fiat reserve currency and would ultimately lead to the demise of the ...

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