Posted on 11/27/2017 3:02:12 PM PST by bananaman22
I may get interested if and when they start making them out of gold.... Otherwise it's just another promissory note...er coin.... I'm I right or am I wrong...?
See my post 16.
IMO cash is great for when the lights go out but only for a short period while people still accept it.
FYI, private companies do print physical bitcoin with the numbers on the paper or coin. Typically given as gifts. However you would need access to the blockchain to verify it wasn’t “spent”.
“Why are bitcoins valued in dollars? If the dollar goes away what will the value of the bitcoin be? How will it be converted goods or services? I understand bitcoin’s price but I can’t grasp it’s value.”
Bitcoin has no “official” value. It’s valued a certain amount based on the current market at various exchanges. During times of high volatility, different exchanges can have very different prices for 1 bitcoin. It is based on the bid-ask system like the stock market. The price increases when there are more buyers than sellers to achieve equilibrium. Likewise, the price decreases when there are more sellers than buyers.
Think of it like an ounce of gold. It always stays the same but dollar and euro value of it changes every minute based on sales at various gold exchanges worldwide.
“The Franklins are still only an IOU on paper though.”
—
Backed by “the full faith and credit of the United States government”. The guaranteer backing bitcoin is....who, now?
“Most Franklins only exist in the digital world.”
—
Yup, a bank can be robbed digitally or in real life. Again, your money is covered by FDIC, up to 250,000. When Bitcoin is hacked and your money taken, you are covered by...what, now?
“Once that expectation is gone, it’s just paper...”
—
I haven’t seen too many people who, spotting a dollar bill on the street, pick it up, grumble about litterbugs and then toss it into the nearest trashcan. And I’ll be more than happy to take a pile or two of that “paper” off your hands, if it’s taking up too much space.
All kidding aside, though - if the SHTF and world governments collapse, all the bitcoins in the world ain’t gonna help anybody - same as with government issued currency.
At least the tangible paper currency is still good for toilet paper, if nothing else.
“Otherwise it’s just another promissory note...er coin.... I’m I right or am I wrong...?”
—
Yup. At least you can hold onto a promissory note and it might be a pretty one at that. Some German “Inflation Notes” are pretty cool to collect. I guess the irony in that is they are worth way more now than when they were printed.
“I suggest you do some deeper research on how to buy and hold crypo’s with minimal risk.”
—
There have always been fad investments - if you get in and out in time, you can make a killing. Something along the line of a pyramid scheme placement, depends on timing.
If a person makes a bundle in a pet rock investment or whatever - they should convert it to real money while they can and bank it. A garage full of pet rocks won’t pay the light bill.
It’s anonymous unless someone identifies your address. When they have that, everything is open. Every transaction, in or out.
“All kidding aside, though - if the SHTF and world governments collapse, all the bitcoins in the world ain’t gonna help anybody - same as with government issued currency. At least the tangible paper currency is still good for toilet paper, if nothing else.”
Agreed. I was trying to point out that both are equally worthless in SHTF scenario except for wiping your a**.
Dollar is of course safer and more stable but bitcoin is a tool to avoid scrutiny from corrupt governments worldwide. It is merely a method of exchanging value that 2 people agree upon without involving any government currency.
Saw a video ad about AMLBIT, described as anti-money laundering bitcoin. Sounds like government appeasement at least, if not scrutiny, no?
“Saw a video ad about AMLBIT, described as anti-money laundering bitcoin. Sounds like government appeasement at least, if not scrutiny, no?”
Are you spelling it right?
There are some mainstream banks trying to institute their own blockchain system with verified users. Basically a bank with no central server to take down.
Of course unverified cryptocurrency will still work side by side.
And even if they ban it from the regulated internet, people will create their own internet via wireless mesh networks.
Do a search for AML Bitcoin...
anti money laundering.
That shows quite a few items...will have to read them later, on phone now.
Interesting. Thanks!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.