Part 1: Two Bits Four Bits – No Dollar?

If you have read any of our blogs, ever visited Casa Tabanero, or talked with one of us, then you know how much we value our heritage. There is a way to make cigars that embraces the art of our ancestors and honors our heritage. We are all about that. We are also visionaries who are scanning the horizon for the best of what can be. We incorporate the new without sacrificing the old. Do not fear even as we are looking behind us and in front of us, we are very much present in this day. We are not lost in nostalgia, nor are we are lost in the idealism of the future.

Let’s express it this way: our heart beats to the rhythm of the past, our eyes are looking forward to the future and our hands molding this present moment. This is the way of Casa Tabanero.
This leads us to discussing a bold new undertaking at Tabanero: Bitcoin. Bitcoin?!? Yes, we are going to begin accepting Bitcoin.

What is Bitcoin?

We are not economists – so, please indulge our summary of Bitcoin. Likely you’re not an economist either and possibly together we can grasp this concept.
But first, Let’s talk about the idea of money. 1. Analog Money (like paper bills) The true value of money is an agreement. You make an agreement to do a job. Your employer agrees to pay you 100 dollars. You then are holding a 100 dollar bill. It’s value is $100 -right? True, but what does that mean? You can go to the store and buy stuff- right? Yes, but what stuff and how much? It depends upon the agreement you have made with the store. They say this particular shirt is worth $92.50 and if you agree then you give them that 100 dollar bill. Bye Benjamin, you never seem to stay long. The other $7.50 goes to Uncle Sam. (He and Benjamin like to hang out together – a lot!) The value of the money is all an agreement. The actual value, or intrinsic value, of that same 100$ bill is about a penny. This is approximately the value of the paper and ink.

Think of it this way. You have four one-hundred dollar bills. Your friend has two hundred one-dollar bills. Your monetary value is twice as much. However, the next day you wake up to the Zombie Apocalypse. The government is worthless now. The stores are all abandoned. As night falls upon this dark new world you want to make a fire. All you have is four 100 dollar bills. Your friend has two 1 dollar bills. Who is going to have a better fire?

Money is only worth what we agree it is. 2. Digital money The use of paper money is becoming increasingly obsolete. Our employment now pays us by making a direct deposit into our bank account. We buy stuff using a debit card. No physical money changes hands. It is all transferred from one account to another digitally.

3. Programmable Money The third wave of money is rising up: programmable money. Bitcoin is the most prominent form of this third wave.
To be continued…

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