Posted on 05/20/2021 3:53:55 PM PDT by DUMBGRUNT
Bitcoin is roughly where it was in February, its highly volatile right now because its price shot up dramatically since the November elections.
You cant create gold out of thin air. Dollars have a political body controlling the supply ( not doing a good job at but still ). Bit coin???
Governments at some point will simply outlaw their use if cryptocurrencies threaten the US dollar. If not outlaw them, they’ll adopt some form of regulated use. It’s already started.
> That’s true, but so is the value of a dollar, a Picasso, or a bar of gold. <
At least with a Picasso you can decorate your living room. And you can make some pretty nice jewelry with a bar of gold. The same goes with a bag of beans or a box of bullets. Those things have real-life value.
But yeah, a dollar bill and a bitcoin are pretty much hollow. They are only worth (as you said) what the next guy is willing to exchange for it.
And no disagreement about the old cui bono question.
Ah very true. The value of ourselves to ourselves is infinite. The value the rest of humanity places on us is considerably lower.
Governments fear cryptocurrencies because they can peg just how far off their fiat currencies are. They also oppose commoners using cryptocurrencies because the Globalists don't welcome cryptocurrency users to the game that these Globalists have been running for decades.
When you "invest" in a fiat currency, willingly or unwillingly, you're holding money with serial numbers. The money printers promise you that they're difficult to counterfeit so you don't have to worry about duplicate serial numbers. (Yet they're counterfeited all the time, mostly by hostile nations but also by the issuing nation when sending billions to foreign terrorists such as Iran).
The money printers do NOT ensure they won't print more money with new serial numbers that devalues your fiat money. In fact, they're printing more all the time. The value of your fiat money is what the printers say it is by adding or removing some from circulation.
Cryptocurrencies on the other hand promise you a distinct serial number that's difficult to counterfeit since each transaction tracks the serial number (unlike transactions with bills). Cryptocurrencies offer a fixed number of digital "coins" or at least a schedule of how long it takes to "mine" new ones and how many might be added. The market then determines the value of each "coin".
Yep, all value is extrinsic.
There is no central authority for Bitcoin. There is no “President” of Bitcoin. You are able to hook a “mining rig” up to the internet and compete for new “coins” against the rest of the world.
You can't create a Bitcoin out of thin air. It cost quite a bit in hardware investment and consumption of electricity to produce one.
For sure.
I really wish I had invested early in the game. I was too timid then, but don’t dare go anywhere near them now. Then again, maybe I’m making the same mistake all over again lol.
Bitcoin mining is based on a reward system for computing/puzzle solving algorithmic ledger information block-chains based on computer processing power. (I’m oversimplifying this down a lot)
Basically at this point it takes a long time for a single computer or multiple ones to generate a single Bitcoin that is encrypted because the rewards are becoming scarce now.
That’s sort of why its said to be digital gold because it is impossible to flood the market with new bit coins. There is also a finite amount of Bitcoins that can be rewarded. After they are all mined out the entire market wont have anymore room without some new kind of computer I think.
Point out to me which of the currencies of the big 20 are not based on wishful thinking. It is hard to imagine that food is traded for numbers on a computer screen.
“You can’t create a Bitcoin out of thin air. “
That’s true, but you can create an entire new crypto currency out of nothing, which is the main complication these days.
You know it’s bad when even the Chinese have abandoned Bitcoin.
The dollar doesn’t go up by 9x in one year then down by 40% in one week.
The dollar has had no gyrations that begin to compare to Bitcoin.
And you and every one of us uses it every day, every week, every month, every year.
Not to mention that govts worldwide are about to start putting all Cryptos under their control.
The two biggest forms of theft are Taxes and Inflation. Hence, Bitcoin
But bitcoin is constantly being manufactured. There are an infinite number of bitcoin serial numbers
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