On Wednesday, the United States Mint minted the last penny with a nominal value of $0.01. This marked the end of the 232-year history of coining and circulating new pennies.
US President Donald Trump ordered the US Treasury in February to cease production of pennies. The Treasury originally set 2026 as the target date for the final mint. According to reports, between June-September, the Treasury used up all of the coin templates. Axios.
Each penny actually costs $0.03 or more to produce.
The US penny will continue to be legal tender even though it’s no longer feasible economically to produce more. More than 250 billion pennies are still in circulation.
“Inflation made the penny useless. Meanwhile, it’s making the sat more relevant every year,” Alexander Leishman is the CEO of Bitcoin Financial Services Company River. saidThe subunit of a Bitcoin (BTC).
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Bitcoin: A solution for the value erosion of fiat currency
Bitcoin has been created to be an alternative money system. supply cap of 21 million coinsThe price of a coin should increase as the demand for BTC grows.
The technological development has a strong deflationary effect, which makes production more efficient over time and lowers prices of products and services. according Saifedean Ammous is an author, BTC enthusiast and economist.
Fiat currencies fail to reflect this deflation in prices because they are constantly being produced. This results in a reduced purchasing power, and over time is reflected by higher prices for goods, assets, and services.
According to Ammous, this means that the prices of goods and service are not rising, but the fiat currency is decreasing in relation to the goods, services, and hard assets.
According to the economist, if these same products, services and assets had been denominated using BTC or another hard money standard over time, their prices would have decreased.
Since the Federal Reserve Banking System was created in 1913, the US dollar’s value has dropped by over 92%. according Gold Bureau, a dealer in precious metals
Bitcoin’s all-time record was $126,000, while the US Dollar is on course to reach its peak. worst year since 1973According to analysts from The Kobeissi Letter, the market is a good place for investors.
“The USD has lost about 40% of its purchasing power since 2000,” The Kobeissi Letter said As of October, the market has lost more than 10% of its total value for the year.
Paul Krugman has always been critical about cryptocurrencies, including Bitcoin. said Dollars are more popular because they’re easier to hold, and use. BTC on the other hand is difficult to carry around.
“The whole point about the dollar is it’s really easy to use, and Bitcoin is not easy to use,” Krugman told podcast host Hasan Minhaj.
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Source: cointelegraph.com
