Posted on 01/01/2021 7:51:20 AM PST by AggregateThreat
“I see the madness of crowds and smell the heady scent of tulips.”
not to mention the nasty scent of warehoused sardines of the “not-eating” variety ...
“It is backed by THE TAXPAYERS OF THE UNITED STATES”
There. Fixed it.
The dollar is backed by the interest on the bonds (you have to create a debt to issue a credit) and who pays the interest?
We do.
The United States are now the biggest slave camp on Earth...well, maybe not as much as Chiner, but you get the idea.
The federal income tax was created to collateralize the Federal Reserve. The Reserve Bank and its currency can’t exist without it.
You could have a federal income tax but no Reserve bank and still be on the Gold standard, but as the period from 1787 to 1913 showed, it’s not really necessary. Minor money panics (like 1857, 1873 and 1907) might still happen but could be more easily ridden out by less draconian policies.
The Reserve Bank and its sister institution - the federal income tax - exist to extract future work / wealth out of a captive populace. It was exactly what the American Revolution was supposed to eliminate - the King’s hand in the individual’s pocket. Washington said those exact words.
Bitcoin is an attempt to create a stable storehouse of value absent such a system. It’s no more stable then casino chips since it operates by consensus. But its real problem is that it dosen’t have the power of arms to compel people to give up their labor and wealth to benefit the owners of the system. That is , it has no long term collateral.
“As long as you believe you can trade a currency for stuff you want you will be willing to take that currency for stuff.”
more importantly, as long as OTHERS believe they can trade your currency for their stuff ...
So everybody cashes out and nobody pays in? That would be magic funding. Is the record-keeping done by Dominion?
My landlord is privatized housing through the US Army. My house isn’t even metered, lol!
Sure, come and hook one up!
Well that’s the circle right. You take it from others because others will take it from you. And others take it from you because you take it from them. Really the whole thing is a shared fiction, surviving basically on everybody agreeing to lie to themselves. And because it beats bringing chickens to the tobacconist only to find out he doesn’t want chickens.
“I have been mining with one machine for about 2.5 years.”
What useful work does it do to produce value ?
One thing comes to mind. The South Sea Bubble. And, every bubble that has followed it.
In the end, though, you are describing a speculative bubble. I really have no problem with Bitcoin. All money has arbitrary value. But rampant speculation generally ends in a crash. Now, if you can tell me when we reach the top....
As long as you can use it to pay your taxes, the US dollar will have value.
It runs portions of the blockchain algorithm for bitcoin. My mining pool is a series of machines across the globe connected. Each runs the algorithms “solving” the blockchain that results in a bitcoin and I get rewarded for the small percentage my machine contributed.
I really can’t explain it well, you could probably find a three to give minute video online that explains it easily.
Why do you think the concept of Legal Tender exists?
ML/NJ
“ What happens if the dollar is replaced? Whats a bitcoin worth then?
Bitcoin is priced/valued in every major currency today... as is gold
“ What useful work does it do to produce value ?
The calculations validate the blockchain.
The coins are simply tokens that motivate those who validate the whole blockchain.
Wow. That is amazing. Based on the price for power her it would not be worth the wiring. Good for you. Finally, a benefit for Government work!
The problem with gold is ya gots to have teeth to bend it, if you remember that far back!
All that means is it’s the money the government will take to pay taxes. Outside of that it doesn’t mean a thing. Really, read up:
https://coins.nd.edu/ColCoin/ColCoinIntros/CtfBrit.intro.html
When the legal tender money supply has problems circulating counterfeit will get the job done just fine.
The whole "accepting money for taxes" is really the only power they have to give money its value. The government says pay your taxes in dollars. You, then, conduct your business using dollars in order to comply. But, if the money dramatically loses it value, people will conduct their business with other forms of money, and will convert it to dollars at the last minute, to pay taxes.
Bitcoins will almost instantly devalue to zero when other digital currencies are designated/accepted as the one(s) to use. Bitcoins vaunted value because they are hard to mine will be worth zero. And that is going to happen. Governments, big banks, brokerages are all working on plans for alternative ones.
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