Posted on 07/01/2019 9:28:19 AM PDT by SeekAndFind
Last week we saw bitcoin, the great hope of cryptocurrency, skyrocket to over $13,000. It was in the vicinity of $3,200 as recently as December.
Why? Maybe it was Facebook’s new venture into creating its own digital currency, Libra — although, if that were to be successful, how it would offer any type of validation of bitcoin is beyond me, and a whole lot of smart people on Wall Street.
In fact, it might spell the beginning of the end for bitcoin. There are almost no major Wall Street investors of substance with meaningful track records who have invested in bitcoin.
To me, its fool’s gold. There are no financial statements, no balance sheets, no revenues or assets. There’s not even a physical product! This is unbridled lunacy in which some astute techies take advantage of what will ultimately be some very unfortunate people.
Real investors do meaningful, mundane, monotonous research in order to determine the viability of a company’s stock or a country’s currency. To do research on bitcoin, what is it you should even look at? You can’t even melt it down and use it for jewelry!
And who’s there when things go wrong? The Treasury, the FDIC or the Fed? Nope. And things have gone wrong numerous times.
Plus, what’s the advantage of using it, unless you’re doing something illicit or illegal? Why not use PayPal, Apple Pay, Venmo or conventional debit or credit cards?
Facebook’s Libra at least has the backing of Visa, Mastercard, PayPal and a few others, and the way it’s been initially described, there are accounts with assets or credit scores behind each transaction.
But even so, Libra seems a solution for which there is no problem — although it will benefit Facebook’s bottom line.
(Excerpt) Read more at nypost.com ...
CDC warns pool-goers of diarrhea-causing ‘crypto’ parasite that can live in swimming pools
related ;-)
Nobody wants to be the last guy believing tulip bulbs are currency.
Untreated diarrhea can turn into triarrhea.
It’s generally unwise to solicit input from FR for intelligent insights about bitcoin, as a substantial majority cannot even give an adequate definition of “money” and how it is different from “currency” and are too lazy and/or biased to deep-dive into it, to understand how this internet protocol can revolutionize the world.
https://www.lopp.net/bitcoin-information.html
If Bitcoin is “money,” why is it valued in U. S. Dollars?
RE tulips, note the chart’s time scale in years and logarithmic vertical axis.
“If Bitcoin is “money,” why is it valued in U. S. Dollars?”
Where do you get bitcoin tied to US dollar?
That’s the synonym for cryptocurrency in general.
From the NY Post article in post #1.
As long as the bigger fool shows up to buy it for more than you spent on it, you’ll be fine... but eventually the bigger fools stop showing up. BC was trading for 3k just a few weeks back... now its way higher... but no one can offer you any solid reason why.....
Crypto is literally no different than plunking your money down at the roulette table.. Sooner or later, the house will win.
According to monetary historians, the sequence or stages of monetization of an item proceeds as follows:
1. Collectible item
2. Store of value
3. Medium of exchange
4. Unit of account.
Bitcoin is still developing, in Stage 2.
Everything in the world has a dollar price or an exchange rate, even other currencies.
You’re correct, it’s nowhere near a store of value, what with it’s volatility. And it still falls way short as a medium of exchange. Walmart won’t accept it, nor likely would any grocery store.
That is just an exchange rate. Not tied to the dollar.
The currencies of the world that are NOT tied to the dollar all have dollar exchange rates.
Most likely because institutions are ramping up. There has at least been articles in the crypto-verse suggesting this last BTC run was not driven by retail investors.
It’s still valued in US Dollars, as is just about everything else in the world that is bought and sold.
“It’s still valued in US Dollars, as is just about everything else in the world that is bought and sold.”
By your logic then the British pound is not money!
Yes, it’s money, as it meets all the classic definitions.
But the British Pound doesn’t have the universal acceptance that US Dollars do. No other medium of exchange does.
“Yes, it’s money, as it meets all the classic definitions.”
How can it be money if it is valued in US dollars? (using your original question as a basis)
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