Posted on 05/12/2022 2:41:40 AM PDT by Mount Athos
El Salvador become the first sovereign government to approve Bitcoin as legal tender, alongside the US dollar.
Do you have an instructional resource for this, or could you enlighten me offline?
The ‘pin’ is about to burst a huge bubble.
Coinbase also said, in the next sentence, that they still had billions in cash and there was next to zero chance of bankruptcy.
Then it's likely you've never appreciated the worth of NFTs.
Me, either.
Not a good idea to invest in fake money that is redeemable for fiat currency which is based on the slogan “backed entirely by the full faith and trust of the government.”
Central bank digital currency is not crypto in any way It’s a completely different concept.
Sure. There are a number of free crypto wallets you can download online. You can send your coins to one of those once you download one.
To be even more secure you can buy a “cold storage” (ie offline) wallet like a Nano or Trezor. They’re about the size of a thumb drive and can hold a bunch of crypto on them. The way it works is you are given a series of random words. This is your code. You have to write these down and be sure to store them offline. You can then use free software you can download (in my case ledger live since I have a Ledger Nano). You use this to move your coins from an exchange to your cold storage wallet. What matters here is the code, not the actual physical device. As long as you have the code, if you lose your device or if its broken, stolen, etc you just need to go buy another and plug in your code, and you will have access to your coins. Without the code, you cannot get in. Ever. As in your coins are lost forever.
The advantage of a cold storage wallet is it cannot be hacked. No government like say, Canada’s could ever seize or freeze your coins like they did to the bank accounts of the truckers and people who donated to them. YOU control “the keys” to your coins. When you leave them on an exchange, the exchange controls “the keys” so they can get them....or the government can force them to hand over the keys to them.
Thus, “not your keys, not your coins”. To have ultimate absolute control, you need to store your coins offline in cold storage.
You’re right. I didn’t knot what NFTs are either
It’s digital and runs on the blockchain.
It’s about the same as a StableCoin.
The exchanges such as Coinbase, Kraken, etc also lend and pay interest if you “stake” your coins.
Additionally there are what amounts to crypto banks like Blockfi, Celsius, Voyager, etc that do the same....lend your coins and pay you interest.
Like with a bank, you agree to allow the bank to convert your holdings and make you an unsecured creditor in the case there’s a run on the bank and they need liquidity. You agree to this as part of their terms of service.
In the US, the FDIC was brought in during the 30s after there had been several bank collapses. You can’t even run a bank if its not part of the FDIC which means for depositors, your deposits are insured up to $200K I believe? That is true even if the bank collapses.
Me too. I’ve scooped up some real bargains and I’m going to go get some more. I’m prepared to HODL for a few years until the next upturn.
NFT’s are essentially worthless jpeg files.
Thanks for the info.
Neither will make it into my 401k
So in light of the Supreme Court leak, sell the crypto and buy shares of Trojan.
Is there a cost involved in cold storage?. (Cheapskate in me.)
International currency exchanges certainly do not operate like un-insured banks.
If they did, no one would do business with them.
If your token is an “ERC20” token....ie if it is stored on the ethereum blockchain, you have to pay what is called “gas” or “gas fees” in the form of a little bit of Ethereum to move the tokens. Its a bit....I believe I paid the equivalent of $20 to move some of mine but that was a worthwhile price to pay since I was moving an asset worth about $40k to where it was completely secure.
Ethereum has excellent utility.
Bitcoin, not so much.
Coinbase has FDIC insurance on USD deposits.
Crypto deposits there are insured 100% by Lloyd’s of London.
Cryptoassets are volatile and this insurance is against fraud or malfeasance, not the loss of value.
A stablecoin like USDC is 100% backed by US dollar deposits and equivalents such as US treasuries. There are regular audits and attestations by a major accounting firm of the holdings.
UST was collateralized only by the value of the LUNA token, and no other collateral behind it. Unlike, say, Ethereum, there wasn’t anything else to do on the Terra/LUNA network except a few Ponzi finance apps.
I am a crypto investor and enthusiast (I have other investments- I’m an old guy compared with the median age in crypto). I’m happy to see the LUNA bubble pop, even if it takes some of my investments down for a while.
What’s unfortunate is that many people, including a few friends, were hit hard by this. I did try to warn them and was very negative about LUNA in a constructive way. Markets are humbling for everyone.
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.