Posted on 01/14/2019 1:23:42 PM PST by SeekAndFind
“has reportedly said”
wow! there’s a source you can take to the bank!
“What’s the official ratio between Bitcoin and Pokemon cards?”
for the OFFICIAL ratio, you’d have to look in the Wall Street Journal ...
“My US currency is also a made up currency, and not backed by anything tangible - no gold, no silver, no real estate, no interest contracts... What it has, even as the world’s biggest debtor, is confidence. And being the healthiest sick horse in a stable of sicker horses.”
correct. and it’s all just one big confidence game!
“Show up at Walmart with dollars and you can buy stuff. Show up with bitcoin credits or gold bars and they will politely decline to take them.”
bummer. i guess that means Walmart won’t accept my BaconBits or CatNipManCoin currencies either ...
+1
And it works as long as the confidence holds.
When confidence is gone, hyperinflation comes.
At that point, a new government will bring confidence and the currency is stabilized - or they will peg it to tangible wealth (real estate, in the case of Germany).
“Bitcoin jumped 5% in 2 minutes after this report broke”
now if it could just make up the rest of its 75% loss during the last 13 months ... btw, shows how ridiculously volatile this fake currency is that it would jump 5% on a report where some economist “reportedly said” something about some 3rd world government ...
“Regardless, it is a completely useless piece of linen, and only has value, because everyone involved make-believes that it does. It’s just as pretend as any other fiat currency.”
that’s pretty much true of all currencies that have no intrinsic value, even gold, which has limited industrial uses ...
In fact, broad acceptance is one of the half a dozen hallmarks necessary for a currency to be functional ...
“When confidence is gone, hyperinflation comes.”
Actually, i would reverse the cause and effect in that statement, namely, that confidence goes when hyperinflation comes ... and Venezuela is the perfect contemporary example of that ...
Respectfully, the more confidence eroded as the government destroyed the country, the greater the rate of inflation.
Compare a chart of the currency and the Gov’t.
And of course each feeds into the other...
I’m long BTC and alt-coin. My wife and I dropped some fiat currency on it last year and agreed “lets see what happens in 5 years”. The central banks are over-reaching along with the globalists. Ever wonder why these past couple decades countries without central banks and playing the globalist game are blowing up?
So what then in principle is your criticism of our system of fiat money? And what do you propose in its place?
I did not criticize it. We have not choice.
I was responding only to this comment...
"Let me know how banking with pretend currency works out for them."
My comments pointed out that our fiat currency is just made up too, with nothing backing it. The meaning of fiat.
And what do you propose in its place?
I have not desire to change it, nor do I have a plan.
That was not my point.
Nor will it be changed until the day it fails.
And it will someday fail.
They all do eventually.
The legal tender law makes the dollar negotiable and backs it. Bitcoin, for example, lacks that support.
There are debit cards that automatically debit your crypto currencies to use anywhere that takes debit cards.
The conversion to dollars or any other currency, happens at the point of purchas, worldwide.
I can imagine this continuing to improve.
Lacking government control is sometimes a big advantage.
When Bitcoin price spiked to its all time high the rumor was that Iran or the Norks were using it to evade sanctions.
“My US currency is also a made up currency, and not backed by anything tangible - no gold, no silver, no real estate, no interest contracts...”
That’s been the case throughout all of American monetary history, including all of the gold standard years. Only a tiny portion of American currency were Silver or Gold Certificates.
Indeed.
All such cards have significant limitations and restrictions - not the least of which is that the value of bitcoin fluctuates, sometimes wildly, and is subject to competition and crises due to thefts and hacking. And at any time decisive legal sanctions from the major economies of the developed world could end the whole thing.
All such cards have significant limitations and restrictions - not the least of which is that the value of bitcoin fluctuates, sometimes wildly, and is subject to competition and crises due to thefts and hacking. And at any time decisive legal sanctions from the major economies of the developed world could end the whole thing.
All true. Early in development still.
Bitcoin was first, but many have risen later.
Many projects are being created by companies on the blockchain now. The coins are only an incentive to validate the accuracy of the blockchain.
Switzerland got on board legally first. Others are taking small steps. Most of the third gen blockchain projects are headquartered in Zug.
All major banks are investors in blockchain projects. I suspect they are holding off bitcoin spreading by lobbying to give their own projects a foothold.
Eventually, all developed countries will have cryptocurrencies. They will not have any degree of anonymity.
This to track and tax all transactions. It will be clothed as thwarting drugs and terrorism.
And so it goes...
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