Posted on 02/14/2018 7:44:46 AM PST by SeekAndFind
Purpose of Bitcoin is to launder drug and other illegal money, to avoid paying taxes, etc. underlying objective is to undermine US dollar, which is why promoters often most visible are Chinese.
The US dollar mostly exists as a cryptocurrency.
So the US cash dollar is never used to launder drug money, avoid paying taxes, etc?
Sure crypto-$ makes sense. It makes electrons a commodity with value.
Yes, I said ‘electrons’. Value is pegged to their scarcity in the market.
The US dollar mostly exists as a cryptocurrency.
What cracks me up about cryptocurrency converts is that they like to point out that the dollar is “fiat” money and not backed by anything. Well, That describes cryptocurrency nicely. It is backed solely by faith. Nothing else. Nothing.
The dollar is fiat money and like cryptocurrency, is backed by faith. But it is also backed by something else: The US government. The only way it collapses is if the government backing it also collapses. e.g. Weimer Germany, Zimbabwe and Venezuela.
If the dollar collapses and you live in the US, the collapse of the currency will be the least of your problems. Cryptocurrency can collapse without really having any direct effect on those that don’t have any.
China has pretty much banned transactions in Bitcoin.
The principle attraction of Bitcoin is as a store of value, although the price is pretty volatile right now. But the idea is it is the characteristic of scarcity that makes crypto currency better than fiat dollars that are potentially hyperinflated in the end.
Crypto currencies are payment for work done, calculations completed successfully on a computer, and rewarded in a “script” of sorts, all notated in a “block chain”, or a distributed, decentralized spreadsheet.
There are a finite number of “coins” in a given crypto currency, and so as more work is done, each new coin that is earned via calculations takes longer and is worth more in conversion to dollars.
There is much more to the whole scheme, wherein lies weaknesses and hackability, notably with “wallet accounts” where earned coins are accounted for. I don’t pretend to completely understand the entire concept, nor commit to defend its viability, and I am sure others can explain it all with more accuracy and comprehensiveness. My two cents.
So the US feral government should have no competition because?
They are not currencies, and the crypto part is there only to make it sound like they can be hidden. (crypto = hidden, in Greek.).
You are not going to be able to hide money from the government with bitcoin. It is a payment system. Some businesses accept it as money. There is no FDIC insurance on it.
It is an investment as long as most people think it is, and they keep buying it, jacking up the price.
It can all disappear in a flash, and you will have no recourse. Don’t expect the government to track down the source of the loss.
Then don’t buy them. Its pretty simple.
Regards,
I thought that was what $100 bills were for?
You mean like how the dollar shit the bed this morning?
People who have been dealing with these crytographic currencies understand all of that.
Except, the name. You clearly do not understand where the name comes from. Your assumption is humorous.
And if you rely on the FDIC to take care of your “investments” you are going to be really really disappointed if this next crash is worse than the last one.
Where do you think the FDIC is going to get the “money” to cover the losses? Does it appear out of thin air?
wherein lies weaknesses and hackability, notably with “wallet accounts”
Like precious metals, if you have an offline “wallet” your BTC are safe. If you “hold them” you own them.
You would have to “hack” my safe and understand my 26 phrase security code to get ahold of my couple of coin.
facilitating transactions;
a store of value;
lending of last resort.
Any form of money should be evaluated according to those criteria.
Here's one of many articles that can be found on the Internet that better explain money's required properties (by the way: "Lending of Last Resort" is not among them):
https://www.milesfranklin.com/the-seven-characteristics-of-money/
Regards,
You mean like how the dollar shit the bed this morning?
So the US feral government should have no competition because?
“It is only valuable because the government guarantees it is”
Uh, the government doesn’t. WE DO.
The power to tax people (using guns) is the “intrinsic value” behind fiat currencies. That’s the function of Treasury bonds: a credit is created to fund the currency issued.
In other words, the government uses the future labor of the citizens as collateral when it prints money (or changes a balance in a computer).
And ya know what that means, kiddies?
We’re their slaves. Literally.
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