Posted on 03/11/2024 3:25:04 PM PDT by NoLibZone
I appreciate the offer but no thanks.
There’s a prince guy in Nigeria that says I can make a million dollars if I send my bank account and ss#s to him for a short time loan.
So does gold. When energy prices go down unprofitable gold mines become profitable. At the margin, there are gold mines which only make a few dollars an ounce over the costs, mostly energy of extraction and refining. If expending $1000 of energy to mine $1005 worth of bitcoin is wrong, expending $1000 worth of energy to get $1005 worth of gold is too. But that’s how the nature of the asset keeps the value of gold more stable than fiat dollars.
Bitcoin is just a series of 01s and 00s on a computer.
The dollar used to be backed by the “full faith and credit of the United states.”
Well that appears to be worthless now.
Bit coins claims to be backed up by various things which I view just as worthless.
Full faith and credit is an unsecured method of backing debt based on trust and reputation.
UNSECURED METHOD OF BACKING DEBT! BASED ON TRUST AND REPUTATION.!
https://www.investopedia.com/terms/f/full-faith-credit.asp
KEY TAKEAWAYS
Full faith and credit is an unsecured method of backing debt based on trust and reputation.
Governments offer issue bonds backed only by their ability to collect taxes and other revenues in the future.
Because governments theoretically have the unlimited and lawful capacity to collect revenue, these bonds are often considered low-risk, and thus carry lower yields.
The Government National Mortgage Association (Ginnie Mae) is one example of a government agency that is backed by the full faith and credit of the U.S. government.
I’ve already spoke my views on our government’s fiat currency(”currency” is not the same as money which has value on it’s own) on post 26.
Bitcoin has no inherent value, just a means of transaction with the side benefit of increase/decrease of worth.
But, like a ponzie scheme that’s been revealed, the price of Bitcoin could collapse and be absolutely worthless.
Now government currency too can become worthless as well as see in the hyperinflation of the Weimar Republic and more recently Zimbabwe.
However the government has the distinct advantage of taxation which can be used to alleviate to some degree the value of it’s currency while Bitcoin cannot once investor’s lose faith in its future prospects.
As to the “00s and 01s, an determined hanker(s) could insert an virus into Bitcoins “mines” and those “00s and 01s” are then turned into XXXs. In time the damage might be recovered but not the time and value lost.
In est if you like but I’d prefer solid investments I can use my senses to determine value.
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