Posted on 02/20/2018 5:44:53 AM PST by C19fan
Cryptocurrencies are a nascent asset class and could fall violently at any time, the founder of blockchain network Ethereum warned on Saturday.
"Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time," Vitalik Buterin said on Twitter. "Don't put in more money than you can afford to lose."
(Excerpt) Read more at cnbc.com ...
We’re enjoying a vacay in Florida now thanks to a BTC investment, and believe me, the sun, sand and surf are very real.
FDIC insurance is a thimble in an ocean.
But I don’t tend to hoard my retirement fund as cash in my wallet.
When I see “Cryptocurrencies”, I hear “Tip Toe Through The Tulips”.
https://www.youtube.com/watch?v=zcSlcNfThUA
Meanwhile, elsewhere on the beach, somebody is crowing about what a great investment he made buying lottery tickets.
That is a cool graph - seems accurate, how well does it seem to reflect reality in your experience?
Indeed. How much actual value (purchasing power) has the US Dollar lost since Bretton Woods?
No kidding. Don’t invest in something you don’t understand, and I don’t understand them. But the day I take investment advice from CNBC is a cold day in hell.
call my a cynic, but should we have faith in the US government? I don’t.
Yes.
It is all based on what confidence people have in the system.
People have no confidence in the system in Venezuela so their currency is worthless.
The Norwegian krone or the Swiss franc are valued because people have confidence in the system.
Of course everything has a relative value that shifts as things change.
If you are on a boat lost at sea, food and water has the most value. If you are in a casino, chips have the most. And if you are on a plane listening to a child scream for eight hours straight a set of ear canceling headphones would be near the top. :)
These guys are just trolling people to get their name in the news. Cryptos are going to zero anytime soon.
What reason is there preventing them from dropping to zero?
99.9% of US dollars are in the form of a digital cryptocurrency.
And the only thing backing them up is the shared delusion that they’re worth something.
This was bound to happen.
Don’t feel sorry at all for those who sold everything they had for Bitcoin and anything else like it.
Wow that’s amazing thanks
“How is that different?”
****
The point being made is this...
Example:
A. You buy an iPhone online using U.S. Dollars. Uncle Sam recognizes this as a currency transaction (dollars are currency even if fiat).
B. You buy an iPhone online using Bitcoin. Uncle Sam does not recognize private cryptocurrency as currency. It triggers a taxable event on any capital gains you made on that Bitcoin.
There’s the difference.
If there’s going to be cryptocurrency recognized by the government as currency, it’s when paper dollars are taken out of circulation entirely and FedCoin (probably still called “dollar”) replaces it.
AH! Excellent explanation.
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