There’s a direct correlation between the price of Bitcoin (which I often describe as an “internet currency invented to buy drugs”) and the amount of media attention it receives, and given that it’s pushing historic highs, it’s being reported on everywhere.
The price has gotten so high that a mere $100 invested in (and by “invested in,” I mean “speculated on”) Bitcoin in 2010 would be worth $73 million today. The first purchase ever made with Bitcoin was for a pizza costing 10,000 coins – which equated to $25 in coins at the time….. but roughly $30 million today. Hopefully the pizza was worth it.
There’s no problem with individuals making their own bets and speculating on Bitcoin, but wherever there are fortunes to be made (and wasted), it’s only a matter of time before the government gets involved.
In a US first, Montana’s state government is providing public funds to a local bitcoin mining firm as part of a broader effort to fuel job creation.
Announced yesterday as part of a $1.1m local job aid package, a grant of $416,000 is being awarded to Missoula County to support a bitcoin mining firm called Project Spokane. Bitcoin mining is an energy intensive process by which new transactions are added to the blockchain, while also securing the history of transactions.
The grant is drawn from a public aid program called the Big Sky Economic Development Trust Fund Program, aimed at supporting long-term job growth. Notably, it represents the first time that a US bitcoin miner has received state funding to support its operations.
According to statements from the office of Montana Governor Steve Bullock, 65 jobs will be supported by the grant.
H/T Coin Desk
Who knows what the end goal is here. Job creation? What’s the point? The creation of Bitcoin doesn’t produce any actual tangible value – it only has value if there’s a buyer willing to purchase it.
Of course, I’ve been saying that Bitcoin is objectively worthless since I first found out about the digital currency… in 2011. Maybe I’m just kicking myself for not buying any.
Best of luck to Montana.
Do you think this is a good investment? Let us know your thoughts in the comments section below!
